Herbalife Ltd. (NYSE: HLF), a premier health and wellness
company, community and platform, today announced the appointment of
John DeSimone as Chief Financial Officer, succeeding Alex Amezquita
who will remain with the Company. Mr. DeSimone has been an
executive at Herbalife for the past 17 years, including more than 8
years as CFO from 2010 – 2018 and 4 years as President and
Co-President from 2018 – 2022. Most recently, he served as a
Special Advisor to the CEO.
“John is a talented and proven finance leader, who has immense
experience with Herbalife and a successful track record,” said
Michael Johnson, Chairman and Chief Executive Officer. “We believe
with Stephan Gratziani as President driving top-line growth and
John focusing on our commitment to expand margins, reduce debt and
improve overall financial performance, we are well-positioned to
return to growth and maximize shareholder value in both the near
and long term.”
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
Net Sales
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 $40
million of savings from a new organizational redesign project the
Company began reviewing in January 2024. This project, which is
separate from Herbalife’s Transformation Program, will bring
leadership closer to the markets, streamline the organization and
accelerate productivity. The Company expects to deliver at least
$80 million of run rate savings from this project beginning in
2025. The Company also expects to recognize at least $60 million of
pre-tax expenses in 2024 related to this restructuring, which will
be excluded from the adjusted results.
“I’m honored to return to my role as CFO,” said John DeSimone,
Chief Financial Officer. “I’m excited to leverage my experience and
knowledge of Herbalife to improve our financial and operating
performance, reduce our gross leverage ratio to 3.0x by the end of
2025, as well as deliver long-term value to our shareholders.”
The Board of Directors and management team extends its
appreciation to Mr. Amezquita for his contributions to
Herbalife.
_____________________________
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 U.S.
GAAP measure, as applicable, and a discussion of why the Company
believes this non-GAAP measure is useful.
About Herbalife Ltd.
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 December 31, 2023, filed with the
Securities and Exchange Commission on February 14, 2024, including
under the headings “Risk Factors” and “Management’s Discussion and
Analysis of Financial Condition and Results of Operations” and in
our Consolidated Financial Statements and the related Notes
included therein. In addition, historical, current, and
forward-looking sustainability-related statements may be based on
standards for measuring progress that are still developing,
internal controls and processes that continue to evolve, and
assumptions that are subject to change in the future.
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 U.S. GAAP, the Company has included in this release adjusted
EBITDA, a performance measure that the Securities and Exchange
Commission defines as a “non-GAAP financial measure.” Adjusted
EBITDA excludes the impact of certain unusual or non-recurring
items such as expenses related to the Transformation Program,
expenses related to the digital technology program, gain from
extinguishment of debt and Korea tax settlement, as further
detailed in the reconciliation below. Adjusted EBITDA margin
represents adjusted EBITDA divided by net sales.
Management believes that such non-GAAP performance measure, when
read in conjunction with the Company’s reported results, calculated
in accordance with U.S. GAAP, can provide useful supplemental
information for investors because it facilitates a period to period
comparative assessment of the Company’s operating performance
relative to its performance based on reported results under U.S.
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 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 U.S. GAAP.
The Company does not provide a reconciliation of forward-looking
adjusted EBITDA guidance to net income, the comparable U.S. GAAP
measure, because, due to the unpredictable or unknown nature of
certain significant items, such as income tax expenses or benefits,
loss contingencies, and any gains or losses in connection with the
potential refinancing transaction, we cannot reconcile this
non-GAAP projection without unreasonable efforts. We expect the
variability of these items, which are necessary for a presentation
of the reconciliation, could have a significant impact on our
reported U.S. GAAP financial results.
The following is a reconciliation of net income to EBITDA
and adjusted EBITDA: (in millions) Three Months
EndedMarch 31, 2023 Year EndedDecember 31, 2023 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
)
Korea tax settlement1, 2
-
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 U.S. GAAP and
non-GAAP results takes into account the tax treatment and related
tax rate(s) that apply to each adjustment in the applicable tax
jurisdiction(s).
(2)
Excludes tax (benefit)/expense as
follows:
(in millions) Three Months EndedMarch 31, 2023 Year EndedDecember
31, 2023 Expenses related to Transformation Program
$
(6.0
)
$
(10.6
)
Digital technology program costs
(0.2
)
(2.6
)
Gain on extinguishment of debt
-
-
Korea tax settlement
-
(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: Thien Ho Vice President, Global Corporate
Communications thienh@herbalife.com
Investor Contact: Erin Banyas Vice President, Head of
Investor Relations erinba@herbalife.com
Herbalife (NYSE:HLF)
過去 株価チャート
から 3 2024 まで 4 2024
Herbalife (NYSE:HLF)
過去 株価チャート
から 4 2023 まで 4 2024