Herbalife Nutrition Ltd. (NYSE: HLF) today reported financial
results for the first quarter ended March 31, 2021:
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the full release here:
https://www.businesswire.com/news/home/20210504006232/en/
Herbalife Nutrition Raises Full Year 2021
Guidance; Reports Record First Quarter Net Sales with Growth of
18.9% Versus Prior Year (Graphic: Business Wire)
HIGHLIGHTS
- First quarter 2021 net sales of $1.5 billion, an 18.9% increase
compared to the first quarter 2020. Five of six geographic regions
reported year-over-year net sales growth in the quarter.
- March worldwide net sales set a single-month, net sales
record.
- First quarter 2021 reported diluted EPS of $1.33 and adjusted1
diluted EPS of $1.422, compared to $0.32 and $0.882, respectively,
for the first quarter 2020. First quarter 2021 adjusted earnings
per share increased 61.4% compared to the first quarter 2020.
- Raising FY 2021 net sales guidance ranges to 9.0% to 15.0%
growth, as well as raising FY 2021 reported and adjusted1 diluted
EPS guidance ranges to $4.41 – $4.81 and $4.65 – $5.05,
respectively.
MANAGEMENT COMMENTARY
The Company’s double-digit net sales growth of 18.9% in the
first quarter is a reflection of the long-established strategy and
growth trajectory that started in 2018. The demand for Herbalife
Nutrition products, combined with the determination and
entrepreneurial spirit of the Company’s independent distributors,
resulted in first quarter net sales of $1.5 billion, which is a
record for the Company.
“This quarter we delivered record first quarter results with net
sales growth of 18.9%, as our distributors delivered valuable
nutrition solutions to consumers around the world,” said John
Agwunobi, Chairman and CEO of Herbalife Nutrition.
The Company is seeing continued consumer interest in health and
wellness products which is driving demand for its range of
nutritional product offerings. The Company’s global products and
direct sales channel allow its independent distributors to support
consumers as they reach their nutrition goals.
The fundamentals of the business are strong, evidenced by
year-over-year growth and the record first quarter. Five of the
Company’s six regions experienced net sales growth with three of
the six regions: North America, Asia Pacific and EMEA, growing by
more than 20%. In particular, India set a new quarterly net sales
record for the third quarter in a row, with year-over-year growth
of 37%. Additionally, the Company is seeing the first net sales
benefit from currency since the fourth quarter 2017, as currency
was a net sales tailwind of approximately 180 bps, excluding
Venezuela.
Agwunobi added, “Due to the ongoing performance of our
materially enlarged sales force and the increased awareness and
consumer demand for our rapidly expanding product portfolio, we
have meaningfully raised and narrowed our full year 2021 guidance.
We believe in the long-term growth opportunity of our
business.”
Based on the continued increased growth in net sales, the
Company’s new guidance calls for net sales growth to be in a range
of 9% to 15%, up from its prior range of 6% to 14%. Additionally,
the midpoint of our reported and adjusted1 diluted EPS guidance
range increased by approximately 7%.
The demand for the Company’s full line of nutrition products and
adaption of technology tools provided by the Company to its
independent distributors contributed to double-digit growth in over
50 of the Company’s markets. The Company’s sports nutrition line
continues to drive growth, with worldwide net sales in energy,
sports, and fitness category increasing approximately 34% during
the first quarter. Furthermore, the Company’s targeted nutrition
category, which includes health and wellness products, grew by 21%
while the core weight management product category grew by 16% in
the quarter. Moreover, consumer facing technology used by the
Company’s independent distributors to interact with their
customers, particularly in cases where face-to-face interactions
are unable to take place, was also a key factor in helping drive
growth.
We are deeply grateful to our employees and distributors around
the world who continue to deliver on our promise to customers every
day, despite the ongoing pandemic.
To drive shareholder value, during the first quarter the Company
executed an approximately $621 million in share repurchases. The
Company has just under $1.5 billion remaining on our three-year
$1.5 billion share repurchase authorization.
“We repurchased $621 million in shares in the first quarter. We
will continue to keep a sharp focus on enhancing shareholder value
and capital allocation as we look to deploy excess cash to the
almost $1.5 billion remaining on our share repurchase program,”
said Alex Amezquita, Chief Financial Officer, Herbalife
Nutrition.
The company will host a virtual Investor Day in August 2021.
____________________
1 Adjusted diluted EPS is a non-GAAP measure and excludes the
impact of: non-cash interest expense and amortization associated
with the Company’s convertible notes, expenses related to
regulatory inquiries and legal accruals, debt issuance costs
related to the senior secured credit facility amendment, and net
expenses related to the COVID-19 pandemic. See Schedule A –
“Reconciliation of Non-GAAP Financial Measures” for a detailed
reconciliation of adjusted net income to net income calculated in
accordance with GAAP and a reconciliation of adjusted diluted EPS
to diluted EPS calculated in accordance with GAAP and a discussion
of why we believe these non-GAAP measures are useful. See the
“Outlook” discussion below and the related footnotes for additional
information regarding adjusted diluted EPS guidance.
2 First quarter 2021 results were impacted by China grant income
of approximately $15.9 million, or $0.11 per diluted share and
expenses related to the China Growth and Impact Investment Program
of approximately $3.5 million or $0.03 per diluted share. First
quarter 2020 results were impacted by China grant income of
approximately $9.1 million, or $0.05 per diluted share and expenses
related to the China Growth and Impact Investment Program of
approximately $2.2 million or $0.01 per diluted share. First
quarter 2020 adjusted results have been updated in Schedule A to no
longer exclude China grant income.
First Quarter 2021 Key
Metrics
Regional Net Sales and Foreign Exchange (“FX”) Impact
Region
Reported Net
Sales
1Q’21 (mil)
Growth/Decline
including FX
vs. 1Q’20
Growth/Decline
excluding FX
vs. 1Q’20 (a)
Asia Pacific
$
403.4
22.4%
19.9%
North America
$
360.5
29.8%
29.6%
EMEA
$
354.2
36.9%
32.1%
China
$
169.3
(10.8%)
(17.1%)
Mexico
$
118.2
2.9%
5.4%
South & Central America (b)
$
96.0
4.9%
*
Worldwide Total
$
1,501.6
18.9%
*
South & Central America excl.
Venezuela (b)
$
95.6
4.9%
12.7%
Worldwide Total excl Venezuela
(b)
$
1,501.2
19.0%
17.1%
(a) Growth/decline in net sales excluding the effects of foreign
exchange is based on “net sales in local currency,” a non-GAAP
financial measure. See the Company’s Form 10-Q for the three months
ended March 31, 2021 for a discussion of why we believe adjusting
for the effects of foreign exchange is useful.
(b) Venezuela has been generally impacted by significant price
increases and erosion in foreign currency exchange rates. Venezuela
represents less than 1% of the Company’s consolidated net sales.
See Schedule A – “Reconciliation of Non-GAAP Financial Measures”
for a discussion of why we believe adjusting for Venezuela is
useful.
* Figure not meaningful due to significant foreign currency
fluctuations in Venezuela and the price increases implemented as a
result thereof that, when considered in isolation, have a
disproportionately large impact on the Company’s South and Central
American region and consolidated results. Amounts were 23.0% and
17.8% for South & Central America and Worldwide Total,
respectively.
Regional Volume Point Metrics
Volume Points
Region
1Q’21 (mil)
Yr/Yr % Chg
Asia Pacific
490.1
19.6%
North America
465.8
30.8%
EMEA
424.5
26.1%
China
100.8
(19.1%)
Mexico
217.8
3.8%
South and Central America
128.8
1.7%
Worldwide Total
1,827.8
16.9%
Outlook
Following is the Company’s second quarter and updated full year
2021 guidance based on current business trends:
Three Months Ending
Twelve Months Ending
June 30, 2021
December 31, 2021
Low
High
Low
High
Volume Point Growth vs 2020
6.5%
12.5%
4.5%
10.5%
Net Sales Growth vs 2020 (a)
13.5%
19.5%
9.0%
15.0%
Diluted EPS (a) (b)
$1.17
$1.32
$4.41
$4.81
Adjusted Diluted EPS (a) (b) (c)
$1.22
$1.37
$4.65
$5.05
Cap Ex ($ millions)
$40.0
$55.0
$175.0
$225.0
Effective Tax Rate (a) (b)
20.3%
26.3%
19.4%
25.4%
Adjusted Effective Tax Rate (a) (b)
(c)
19.5%
25.5%
18.7%
24.7%
Net Sales Growth vs. 2020 (Currency
Adjusted) (a) (d)
9.0%
15.0%
7.0%
13.0%
Adjusted Diluted EPS (Currency Adjusted)
(a) (b) (c) (d)
$1.03
$1.18
$4.53
$4.93
(a) Excludes any future potential Venezuela
currency devaluations and associated pricing and inflationary
consequences.
(b) Excludes the following items that cannot
be accurately predicted: any future potential ongoing tax effects
from the exercise or vesting of equity awards that could impact the
Company's tax rate due to the stock compensation accounting
standard, benefits from future potential China grant income, any
future potential dilution from the Company’s convertible notes due
in 2024, as well as any future impact of the China Growth and
Impact Investment Program.
(c) Adjusted diluted EPS and adjusted
effective tax rate excludes the impact of non-cash interest expense
and amortization associated with the Company’s convertible notes,
as detailed in Schedule A. See Schedule A – “Reconciliation of
Non-GAAP Financial Measures” for a detailed reconciliation of
adjusted diluted EPS to diluted EPS calculated in accordance with
GAAP and a discussion of why the Company believes these non-GAAP
measures are useful.
(d) Currency adjusted net sales and adjusted
diluted EPS represent projections translated into US dollars at
currency rates equal to the average rates used to translate 2020
second quarter and full year net sales and diluted EPS and adjusted
for items such as hedging gains/losses and Venezuela to be directly
comparable to 2020 values. See our Company’s Form 10-Q for the
three months ended March 31, 2021 and Schedule A – “Reconciliation
of Non-GAAP Financial Measures” for a discussion of why we believe
adjusting for the effects of foreign exchange is useful.
- With respect to guidance, the Company cannot accurately predict
the impact to its share base from any future share repurchases.
Accordingly, any impact thereof is excluded from the guidance table
above.
- Guidance is based on the average daily exchange rates for the
first two weeks of April 2021.
- Adjusted(a)(b)(c) diluted EPS guidance for the second quarter
2021 includes a projected currency tailwind of approximately $0.19
per diluted share versus the second quarter 2020.
- Full year 2021 adjusted(a)(b)(c) diluted EPS guidance includes
a projected currency tailwind of approximately $0.12 per diluted
share versus the full year 2020. This $0.12 tailwind is $0.23
unfavorable as compared to the expected $0.35 tailwind included in
the full year 2021 guidance provided on February 17, 2021.
Earnings Conference Call
Herbalife Nutrition senior management will host an investor
conference call to discuss its recent financial results and provide
an update on current business trends on Tuesday, May 4th, 2021, at
2:30 p.m. PT (5:30 p.m. ET).
The dial-in number for this conference call for domestic callers
is (833) 962-1459, and (956) 394-3596 for international callers
(conference ID: 3526984). Live audio of the conference call will be
simultaneously webcast in the investor relations section of the
Company's website at http://ir.Herbalife.com.
An audio replay will be available following the completion of
the conference call in MP3 format or by dialing (855) 859-2056 for
domestic callers or (404) 537-3406 for international callers
(conference ID: 3526984). The webcast of the teleconference will be
archived and available on Herbalife Nutrition's website.
About Herbalife Nutrition
Ltd.
Herbalife Nutrition is a global company that has been changing
people's lives with great nutrition products and a proven business
opportunity for its independent distributors since 1980. The
Company offers high-quality, science-backed products, sold in over
90 markets by entrepreneurial distributors who provide one-on-one
coaching and a supportive community that inspires their customers
to embrace a healthier, more active lifestyle. Through the
Company’s global campaign to eradicate hunger, Herbalife Nutrition
is also committed to bringing nutrition and education to
communities around the world.
For more information, please visit
IAmHerbalifeNutrition.com.
Herbalife Nutrition also encourages investors to visit its
investor relations website at ir.herbalife.com as financial and
other information is updated and new information is posted.
Forward-Looking
Statements
This release contains “forward-looking statements” within the
meaning of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Although we believe that the
expectations reflected in any of our forward-looking statements are
reasonable, actual results could differ materially from those
projected or assumed in any of our forward-looking statements. Our
future financial condition and results of operations, as well as
any forward-looking statements, are subject to change and to
inherent risks and uncertainties, many of which are beyond our
control. Additionally, many of these risks and uncertainties are,
and may continue to be, amplified by the COVID-19 pandemic.
Important factors that could cause our actual results, performance
and achievements, or industry results to differ materially from
estimates or projections contained in or implied by our
forward-looking statements include the following:
- the potential impacts of the COVID-19 pandemic on us; our
Members, customers, and supply chain; and the world economy;
- our ability to attract and retain Members;
- our relationship with, and our ability to influence the actions
of, our Members;
- our noncompliance with, or improper action by our employees or
Members in violation of, applicable U.S. and foreign laws, rules,
and regulations;
- adverse publicity associated with our Company or the
direct-selling industry, including our ability to comfort the
marketplace and regulators regarding our compliance with applicable
laws;
- changing consumer preferences and demands;
- the competitive nature of our business and industry;
- legal and regulatory matters, including regulatory actions
concerning, or legal challenges to, our products or network
marketing program and product liability claims;
- the Consent Order entered into with the FTC, the effects
thereof and any failure to comply therewith;
- risks associated with operating internationally and in
China;
- our dependence on increased penetration of existing
markets;
- any material disruption to our business caused by natural
disasters, other catastrophic events, acts of war or terrorism,
cybersecurity incidents, pandemics and/or other acts by third
parties;
- noncompliance by us or our Members with any privacy laws,
rules, or regulations or any security breach involving the
misappropriation, loss, or other unauthorized use or disclosure of
confidential information;
- contractual limitations on our ability to expand or change our
direct-selling business model;
- our reliance on our information technology infrastructure and
manufacturing facilities and those of our outside
manufacturers;
- the sufficiency of our trademarks and other intellectual
property;
- product concentration;
- our reliance upon, or the loss or departure of any member of,
our senior management team;
- restrictions imposed by covenants in the agreements governing
our indebtedness;
- risks related to our convertible notes;
- changes in, and uncertainties relating to, the application of
transfer pricing, customs duties, value added taxes, and other tax
laws, treaties, and regulations, or their interpretation;
- our incorporation under the laws of the Cayman Islands;
and
- share price volatility related to, among other things,
speculative trading and certain traders shorting our common
shares.
We do not undertake any obligation to update or release any
revisions to any forward-looking statement or to report any events
or circumstances after the date hereof or to reflect the occurrence
of unanticipated events, except as required by law.
Results of Operations
Herbalife Nutrition Ltd. and Subsidiaries Condensed Consolidated
Statements of Income (In millions, except per share amounts)
Three Months Ended
3/31/2021
3/31/2020 (unaudited) North America
$
360.5
$
277.7
EMEA
354.2
258.7
Asia Pacific
403.4
329.7
Mexico
118.2
114.9
China
169.3
189.9
South and Central America
96.0
91.5
Worldwide Net Sales
1,501.6
1,262.4
Cost of Sales
314.3
245.7
Gross Profit
1,187.3
1,016.7
Royalty Overrides
474.0
381.2
Selling, General, and Administrative Expenses
506.7
549.0
Other Operating Income (1)
(15.9
)
(9.1
)
Operating Income
222.5
95.6
Interest Expense, net
37.5
25.0
Income Before Income Taxes
185.0
70.6
Income Taxes
37.6
25.0
Net Income
$
147.4
$
45.6
Weighted-Average Shares Outstanding: Basic
108.4
137.8
Diluted
111.1
140.2
Earnings Per Share: Basic
$
1.36
$
0.33
Diluted
$
1.33
$
0.32
(1) Other Operating Income for the three months ended March
31, 2021 and March 31, 2020 relates to certain China government
grant income. Herbalife Nutrition Ltd. and Subsidiaries Condensed
Consolidated Balance Sheets (In millions) (Unaudited)
Mar 31,
Dec 31,
2021
2020
ASSETS Current Assets: Cash and cash equivalents
$
611.7
$
1,045.4
Receivables, net
101.3
83.3
Inventories
509.4
501.4
Prepaid expenses and other current assets
164.5
145.7
Total Current Assets
1,386.9
1,775.8
Property, plant and equipment, net
389.8
390.2
Operating lease right-of-use assets
224.9
222.8
Marketing-related intangibles and other intangible assets, net
313.2
313.3
Goodwill
97.2
100.5
Other assets
254.8
273.5
Total Assets
$
2,666.8
$
3,076.1
LIABILITIES AND SHAREHOLDERS' DEFICIT
Current Liabilities:
Accounts payable
$
111.2
$
88.7
Royalty overrides
342.7
358.2
Current portion of long-term debt
24.7
22.9
Other current liabilities
588.6
657.5
Total Current Liabilities
1,067.2
1,127.3
Non-current liabilities:
Long-term debt, net of current portion
2,556.3
2,405.5
Non-current operating lease liabilities
207.5
206.7
Other non-current liabilities
198.1
192.7
Total Liabilities
4,029.1
3,932.2
Commitments and Contingencies
Shareholders' deficit:
Common shares
0.1
0.1
Paid-in capital in excess of par value
298.7
342.3
Accumulated other comprehensive loss
(205.0
)
(182.2
)
Accumulated deficit
(1,127.2
)
(687.4
)
Treasury stock
(328.9
)
(328.9
)
Total Shareholders' Deficit
(1,362.3
)
(856.1
)
Total Liabilities and Shareholders' Deficit
$
2,666.8
$
3,076.1
Herbalife Nutrition Ltd. and Subsidiaries Condensed
Consolidated Statements of Cash Flows (In millions) (Unaudited)
Three Months Ended
3/31/2021
3/31/2020 CASH FLOWS FROM OPERATING
ACTIVITIES: Net income
$
147.4
$
45.6
Adjustments to reconcile net income to net cash provided by
operating activities: Depreciation and amortization
26.4
24.2
Share-based compensation expenses
13.3
10.3
Non-cash interest expense
7.1
6.3
Deferred income taxes
8.3
7.4
Inventory write-downs
9.5
3.6
Foreign exchange transaction loss
0.3
8.5
Other
(1.1
)
(5.0
)
Changes in operating assets and liabilities: Receivables
(21.9
)
(7.8
)
Inventories
(31.5
)
(7.4
)
Prepaid expenses and other current assets
(15.7
)
(18.1
)
Accounts payable
23.4
2.9
Royalty overrides
(8.4
)
(22.9
)
Other current liabilities
(52.0
)
92.9
Other
5.0
1.2
NET CASH PROVIDED BY OPERATING ACTIVITIES
110.1
141.7
CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property,
plant and equipment
(33.4
)
(24.4
)
Other
-
0.1
NET CASH USED IN INVESTING ACTIVITIES
(33.4
)
(24.3
)
CASH FLOWS FROM FINANCING ACTIVITIES: Borrowings from senior
secured credit facility, net of discount
270.0
30.2
Principal payments on senior secured credit facility and other debt
(125.2
)
(5.3
)
Share repurchases
(645.0
)
(4.7
)
Other
1.0
0.8
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES
(499.2
)
21.0
EFFECT OF EXCHANGE RATE CHANGES ON CASH, CASH EQUIVALENTS,
AND RESTRICTED CASH
(11.2
)
(33.8
)
NET CHANGE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH
(433.7
)
104.6
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF PERIOD
1,054.0
847.5
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD
$
620.3
$
952.1
Supplemental Information
SCHEDULE A: RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Unaudited and unreviewed), (All tables provide Dollars in
millions, except per Share Data)
Adjusted Net Income and Adjusted Diluted EPS
In addition to its reported results and guidance calculated in
accordance with GAAP, the Company has included in this release
adjusted net income and adjusted diluted EPS, performance measures
that the Securities and Exchange Commission defines as “non-GAAP
financial measures.” Management believes that such non-GAAP
financial measures, when read in conjunction with the Company’s
reported or forecasted results, in each case calculated in
accordance with GAAP, can provide useful supplemental information
for investors because they facilitate a period to period
comparative assessment of the Company’s operating performance
relative to its performance based on reported or forecasted results
under GAAP, while isolating the effects of some items that vary
from period to period without any correlation to core operating
performance and eliminate certain charges that management believes
do not reflect the Company’s operations and underlying operational
performance. The Company’s definition of adjusted net income and
adjusted diluted earnings per share may not be comparable to
similarly titled measures used by other companies because other
companies may not calculate them in the same manner as the Company
does and should not be viewed in isolation from nor as alternatives
to net income or diluted EPS calculated in accordance with
GAAP.
Venezuela Adjustments
The impact of foreign currency fluctuations in Venezuela and the
price increases the Company implements as a result of the highly
inflationary economy in that market can each, when considered in
isolation, have a disproportionately large impact to the Company’s
consolidated results despite the offsetting nature of these drivers
and that net sales in Venezuela, which represent less than 1% of
the Company’s consolidated net sales, are not material to our
consolidated results. Therefore, in certain instances, the Company
believes it is helpful to provide additional information with
respect to these factors as reported and excluding the impact of
Venezuela to illustrate the disproportionate nature of Venezuela’s
individual pricing and foreign exchange impact to the Company’s
consolidated results. However, excluding the impact of Venezuela
from these measures is not in accordance with U.S. GAAP and should
not be considered in isolation or as an alternative to the
presentation and discussion thereof calculated in accordance with
U.S. GAAP.
China grant income is no longer excluded from the Company’s
adjusted results and prior period information has been updated to
reflect the current period presentation.
The following is a reconciliation of net income, presented and
reported in accordance with U.S. generally accepted accounting
principles, to net income adjusted for certain items: Three
Months Ended 3/31/2021 3/31/2020 (in millions) Net income,
as reported
$
147.4
$
45.6
Expenses related to regulatory inquiries and legal accruals (1) (2)
(3)
-
84.5
Non-cash interest expense and amortization of non-cash issuance
costs (1) (2) (4)
5.7
5.2
Debt issuance costs related to the senior secured credit facility
amendment (1) (2) (5)
1.1
0.5
Net expenses related to COVID-19 pandemic (1) (2)
4.8
5.8
Income tax adjustments for above items (1) (2)
(1.2
)
(18.4
)
Net income, as adjusted
$
157.8
$
123.2
The following is a reconciliation of diluted earnings per
share, presented and reported in accordance with U.S. generally
accepted accounting principles, to diluted earnings per share
adjusted for certain items. Three Months Ended
3/31/2021 3/31/2020 (per share) Diluted earnings per share,
as reported
$
1.33
$
0.32
Expenses related to regulatory inquiries and legal accruals (1) (2)
(3)
-
0.60
Non-cash interest expense and amortization of non-cash issuance
costs (1) (2) (4)
0.05
0.04
Debt issuance costs related to the senior secured credit facility
amendment (1) (2) (5)
0.01
-
Net expenses related to COVID-19 pandemic (1) (2)
0.04
0.04
Income tax adjustments for above items (1) (2)
(0.01
)
(0.13
)
Adjusted diluted earnings per adjusted share (6)
$
1.42
$
0.88
(1) Based on interim income tax reporting rules,
these expenses are not considered discrete items. As a result, the
Company's full year effective tax rate is impacted by these items.
When applying the full year effective tax rate to year-to-date
income, the Company's year-to-date tax provision recorded with
respect to these non-GAAP adjustments is different from the
forecasted full-year tax provision impact of these items. As a
consequence, adjustments to the year-to-date and quarterly tax
impacts will be recorded as the adjusted full year effective tax
rate is applied to income in subsequent periods. Additionally,
adjustments to items unrelated to these non-GAAP adjustments may
have an effect on the income tax impact of these non-GAAP
adjustments in subsequent periods. The Company plans to update the
income tax impact of these items in subsequent interim reporting
periods. (2) Excludes tax (benefit)/expense as follows: Three
Months Ended 3/31/2021 3/31/2020 (in millions) Expenses
related to regulatory inquiries and legal accruals
-
$
(17.1
)
Non-cash interest expense and amortization of non-cash issuance
costs
0.1
0.1
Debt issuance costs related to the senior secured credit facility
amendment
(0.2
)
(0.1
)
Net expenses related to COVID-19 pandemic
(1.1
)
(1.3
)
Total income tax adjustments
$
(1.2
)
$
(18.4
)
Three Months Ended 3/31/2021 3/31/2020 (per share)
Expenses related to regulatory inquiries and legal accruals
-
(0.12
)
Non-cash interest expense and amortization of non-cash issuance
costs
-
-
Debt issuance costs related to the senior secured credit facility
amendment
-
-
Net expenses related to COVID-19 pandemic
(0.01
)
(0.01
)
Total income tax adjustments
$
(0.01
)
$
(0.13
)
(3) Includes legal accrual recorded during the three months
ended March 31, 2020 of $83.0 million relating to the SEC and DOJ
investigations on the FCPA matter in China as described in the
Company's Form 10-Q for the three months ended March 31, 2021. (4)
Relates to non-cash expense on the Company's 2.625% convertible
senior notes due 2024. (5) The 2021 amount relates to costs
incurred in the amendment of the senior secured credit facility,
which, among other things, reduced the interest rate for borrowings
under the Term Loan B. The 2020 amount relates to costs incurred in
the amendment of the senior secured credit facility which, among
other things, extended the maturity, increased borrowings and
reduced interest rate of both Term Loan A and 2018 Revolving Credit
Facility. There is no per share amount for 2020 due to rounding.
(6) Amounts may not total due to rounding
The following is a reconciliation of diluted earnings per share
guidance, presented in accordance with U.S. generally accepted
accounting principles, to adjusted diluted earnings per share
guidance for certain items.
Three Months Ending Twelve Months Ending June 30, 2021
December 31, 2021 Diluted EPS Guidance
$1.17 - $1.32
$4.41 - $4.81
Non-cash interest expense and amortization of non-cash issuance
costs (1)
0.05
0.20
Net expenses related to COVID-19 pandemic (2)
0.00
0.04
Debt issuance costs related to the senior secured credit facility
amendment (3)
0.00
0.01
Income tax adjustments for above items (4)
(0.00)
(0.01)
Adjusted diluted EPS guidance
$1.22 - $1.37
$4.65 - $5.05
(1) Relates to non-cash expense on our convertible notes.
(2) Excludes tax impact of $1.1 million for the twelve months
ending December 31, 2021. (3) Relates to costs incurred in the
amendment of the Term Loan B. Excludes tax impact of $0.2 million
for the twelve months ending December 31, 2021. (4) Aggregates the
individual tax impacts of each item as described in greater detail
in footnotes 2 and 3 above.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210504006232/en/
Media Contact: Jennifer Butler VP, Media Relations
213.745.0420
Investor Contact: Eric Monroe Senior Director, Investor
Relations 213.745.0449
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