Herbalife Announces CFO Transition; Initiates Guidance for First Quarter and Full-Year 2024
“John is a talented and proven finance leader, who has immense experience with Herbalife and a successful track record,” said
In addition, management is beginning to observe more stability in the business. Based on this and other positive trends observed, Herbalife is initiating guidance for the first quarter and full-year 2024.
First Quarter and Full-Year 2024 Guidance
$ million |
Q1 ‘24 Guidance |
Q1 ‘23 Results |
FY ‘24 Guidance |
FY ‘23 Results |
|
1% – 3% y-o-y |
1,252.1 |
0% – 5% y-o-y |
5,062.4 |
Adjusted EBITDA1 |
115 – 130 |
128.9 |
540 – 580 |
570.6 |
Capital Expenditures |
30 – 40 |
30.3 |
125 – 175 |
135.0 |
Included in the full-year 2024 guidance is approximately
“I’m honored to return to my role as CFO,” said
The Board of Directors and management team extends its appreciation to
_____________________________ | |
1 |
Non-GAAP measure – refer to Schedule A – “Reconciliation of Non-GAAP Financial Measure” for a detailed reconciliation of this measure to the most directly comparable |
About
Herbalife (NYSE: HLF) is a premier health and wellness company, community and platform that has been changing people's lives with great nutrition products and a business opportunity for its independent distributors since 1980. The Company offers science-backed products to consumers in more than 90 markets through entrepreneurial distributors who provide one-on-one coaching and a supportive community that inspires their customers to embrace a healthier, more active lifestyle to live their best life.
For more information, visit https://ir.herbalife.com.
Forward-Looking Statements
This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws, including any projections of earnings, revenue or other financial items; any statements of the plans, strategies and objectives of management, including for future operations, capital expenditures, or share repurchases; any statements concerning proposed new products, services, or developments; any statements regarding future economic conditions or performance; any statements of belief or expectation; and any statements of assumptions underlying any of the foregoing or other future events. Forward-looking statements may include, among others, the words “may,” “will,” “estimate,” “intend,” “continue,” “believe,” “expect,” “anticipate” or any other similar words.
Although we believe that the expectations reflected in any of our forward-looking statements are reasonable, actual results or outcomes 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. 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 current global economic conditions, including inflation, 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 and evolving industry standards, including with respect to climate change, sustainability, and other environmental, social, and governance, or ESG, matters;
- 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 ability to execute our growth and other strategic initiatives, including implementation of our Transformation Program and increased penetration of our existing markets;
-
any material disruption to our business caused by natural disasters, other catastrophic events, acts of war or terrorism, including the war in
Ukraine , cybersecurity incidents, pandemics, and/or other acts by third parties; - our ability to adequately source ingredients, packaging materials, and other raw materials and manufacture and distribute our products;
- our reliance on our information technology infrastructure;
- 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;
- 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, income tax, 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.
Additional factors and uncertainties that could cause actual results or outcomes to differ materially from our forward-looking statements are set forth in the Company's Annual Report on Form 10-K for the fiscal year ended
Forward-looking statements made in this release speak only as of the date hereof. 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.
Supplemental Information
SCHEDULE A: RECONCILIATION OF NON-GAAP FINANCIAL MEASURE (unaudited)
Adjusted EBITDA
In addition to its reported results calculated in accordance with
Management believes that such non-GAAP performance measure, when read in conjunction with the Company’s reported results, calculated in accordance with
The Company’s definition and calculation as set forth in the table below of adjusted EBITDA may not be comparable to similarly titled measures used by other companies because other companies may not calculate it in the same manner as the Company does and should not be viewed in isolation from, nor as alternatives to, net income calculated in accordance with
The Company does not provide a reconciliation of forward-looking adjusted EBITDA guidance to net income, the comparable
The following is a reconciliation of net income to EBITDA and adjusted EBITDA: | |||||||||
(in millions) | Three Months Ended |
Year Ended |
|||||||
Net income |
$ |
29.3 |
$ |
142.2 |
|
||||
Interest expense, net |
|
39.4 |
|
154.4 |
|
||||
Income taxes |
|
1.8 |
|
60.8 |
|
||||
Depreciation and amortization |
|
27.6 |
|
113.3 |
|
||||
EBITDA |
|
98.1 |
|
470.7 |
|
||||
Amortization of SaaS implementation costs |
|
- |
|
6.0 |
|
||||
Expenses related to Transformation Program1, 2 |
|
27.3 |
|
54.2 |
|
||||
Digital technology program costs1, 2 |
|
3.5 |
|
32.1 |
|
||||
Gain on extinguishment of debt1, 2 |
|
- |
|
(1.0 |
) |
||||
|
|
- |
|
8.6 |
|
||||
Adjusted EBITDA |
$ |
128.9 |
$ |
570.6 |
|
||||
(1) |
Based on interim income tax reporting rules, these expenses are not considered discrete items. The tax effect of the adjustments between our |
(2) |
Excludes tax (benefit)/expense as follows: |
(in millions) | Three Months Ended |
Year Ended |
|||||
Expenses related to Transformation Program |
$ |
(6.0 |
) |
$ |
(10.6 |
) |
|
Digital technology program costs |
|
(0.2 |
) |
|
(2.6 |
) |
|
Gain on extinguishment of debt |
|
- |
|
|
- |
|
|
|
|
- |
|
|
(1.1 |
) |
|
Total income tax adjustments |
$ |
(6.2 |
) |
$ |
(14.3 |
) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240319404096/en/
Media Contact:
Vice President,
thienh@herbalife.com
Investor Contact:
Vice President, Head of Investor Relations
erinba@herbalife.com
Source: