herbalife ltd (HLF) Key Developments
Herbalife Ltd. Announces Expansion Plans
Jul 2 15
Herbalife Ltd. announced that it plans to create 300 new jobs by the end of 2018 at its Innovation and Manufacturing facility in Winston-Salem, North Carolina. The jobs will be a mix of manufacturing and IT roles and are part of an expansion plan that will also include additional investment of $3.5 million into infrastructure and development by the end of 2016. These new jobs will be in addition to the 500 jobs that Herbalife will have created by the end of 2015. Herbalife currently employs 404 people in Forsyth County who produce a wide range of Herbalife's nutrition and weight-management products.
Herbalife Ltd. Appoints Eric D. Rosen as Vice President of Government Relations and Director of Washington, D.C. Office
Jun 29 15
Herbalife Ltd. announced that Eric D. Rosen will join Herbalife’s growing global corporate affairs team as vice president of government relations and director of its Washington, D.C. office. Rosen will oversee Herbalife’s D.C. operations and will report to Ric Hobby, who was recently appointed as head of Herbalife’s global government relations reporting to Alan Hoffman, executive vice president of the
global corporate affairs team. Rosen, who will be based out of Herbalife’s D.C. office, is a Capitol Hill veteran with experience in the Senate, House, and Executive Branch. For more than five years, he served as Judiciary Committee counsel to then Senator Joseph R. Biden, Jr. Rosen also served in the United States Attorney’s office in the Northern District of California where he prosecuted cases on behalf of the United States.
Herbalife Announces Executive Appointments
May 26 15
Herbalife announced an expansion of the company's global corporate affairs team based in Los Angeles. Ric Hobby, who will serve as the company's senior vice president for global government relations; Megan Jordan, who will serve as the company's senior vice president for global corporate communications; and Randall Popelka, who will serve as vice president, government and industry affairs. Ric Hobby will lead the global government relations team after 27 years with the company, most recently serving as the vice president, worldwide regulatory, government and industry affairs, based in Australia. Megan Jordan joins Herbalife and will lead the global corporate communications office after managing communications, Southern California Edison. Julian Cacchioli will continue in his role as vice president of global corporate communications but will also take on the added responsibility of coordinating the company's global public policy strategy and will oversee the company's important and growing corporate social responsibility program. Randall Popelka joins Herbalife's Washington, D.C. office after working for over two decades on Capitol Hill, in the administration of President George W. Bush and in the private sector. Elaine Pacheco brings extensive knowledge of the company, employees and members having previously worked as the manager of employee communications for Herbalife. In her new role as strategic project manager in the office of the executive vice president for global corporate affairs, Elaine will be responsible for coordinating special projects and managing cross-functional teams within the global corporate affairs team.
Judge Approves $15 Million Herbalife Settlement
May 15 15
A Los Angeles federal judge signed off on a $15 million settlement of a class-action lawsuit brought by a former Herbalife Ltd. salesman who alleged the Los Angeles-based nutrition company was operating a pyramid scheme that victimized hundreds of thousands of people a year. The lawsuit, filed two years ago, alleged that Herbalife is a pyramid scheme in which the company's independent distributors earn more money recruiting new sales people than they do selling its products, an allegation Herbalife has repeatedly and vigorously denied. Under the settlement terms, Herbalife will set aside $15 million to compensate distributors who claimed losses in the business. The accord also requires the company to provide up to $2.5 million to distributors who return unused products. Herbalife has additionally agreed to abide by a number of corporate reforms for three years. The judge also approved an award of $5 million in attorneys' fees to plaintiffs' counsel -- representing nearly 30% of the gross settlement fund.
Herbalife Ltd. Announces Unaudited Consolidated Earnings Results for First Quarter Ended March 31, 2015; Provides Earnings Guidance for the Second Quarter 2015 and Full Year 2015
May 5 15
Herbalife Ltd. announced unaudited consolidated earnings results for first quarter ended March 31, 2015. For the quarter, the company reported operating income of $135.6 million, income before income taxes of $111.8 million, net income of $78.2 million, diluted shares of $84.6 million, net cash provided by operating activities of $161.1 million, purchases of property, plant and equipment of $22.8 million compared to the operating income of $127.5 million, income before income taxes of $109.4 million, net income of $74.6 million, diluted shares of $100.8 million, net cash provided by operating activities of $190.6 million, purchases of property, plant and equipment of $58.5 million for the same quarter a year ago. Currency net sales grew by 4%, reported net sales declined 12% primarily due to the unfavorable impact of currency exchange rates.
The company announced earnings guidance for the second quarter 2015 and full year 2015. For the quarter the company reported Adjusted Diluted EPS to be between $1.05 to $1.15. CapEx to be between $20.0 million to $30.0 million. Effective Tax Rate to be between 28.0% to 30.0%.
For the full year 2015, the company reported Adjusted Diluted EPS to be between $4.30 to $4.60. CapEx to be between $120.0 million to $140.0 million. Effective Tax Rate to be between 28.0% to 30.0%.