Herbalife Ltd. Announces Record Third Quarter earnings

Herbalife Ltd. Announces Record Third Quarter 2012 and Introduces 2013 Earnings Guidance

By Business Wirevia The Motley Fool

Posted 4:51PM 10/29/12 

Herbalife Ltd. Announces Record Third Quarter 2012 and Introduces 2013 Earnings Guidance

• Third quarter volume points of 1.2 billion increased 17 percent with double digit increases in each of its six regions compared to the prior year period.
• Third quarter EPS of $1.04 increased 20 percent compared to the prior year period EPS.
• Introducing FY'13 EPS guidance in a range of $4.40 to $4.55.
• Board of directors approved a $0.30 per share quarterly dividend.

LOS ANGELES--(BUSINESS WIRE)-- Herbalife Ltd. (NYS: HLF) today reported third quarter record net sales of $1.0 billion, a 14 percent increase, driven by a 17 percent increase in volume points compared to the prior year period. The company reported net income of $117.8 million, or $1.04 per diluted share, compared to the third quarter 2011 net income of $108.0 million, or $0.87 per diluted share, reflecting an increase of 9 percent and 20 percent, respectively.
"Our business momentum has continued through the third quarter with double digit volume growth from all six of our geographical regions," said Michael O. Johnson, the company's chairman and CEO. "Our 2013 guidance for double-digit volume and EPS growth illustrates our belief in continued growth driven by the ongoing global expansion of daily consumption and our city by city approach to deepen our penetration in existing markets."

For the quarter ended September 30, 2012, the company generated cash flow from operations of $142.4 million, paid dividends of $32.4 million, and invested $20.0 million in capital expenditures. Also in the third quarter, the company repurchased $181.9 million in common shares outstanding, completing the $427.9 million repurchase agreement announced on May 3, 2012.