Herbalife Nutrition Reports Full Year and Fourth Quarter 2022 Results
Herbalife Nutrition Ltd. (NYSE: HLF) reported a 10.3% decline in full-year 2022 net sales at $5.2 billion compared to 2021, with a diluted EPS of $3.23. For Q4 2022, net sales were $1.2 billion, down 10.4% year-over-year, and diluted EPS was $0.55. The company has introduced a Transformation Program aimed at achieving annual savings of at least $70 million. Despite these challenges, management is focused on engaging distributors, having hosted 170 in-person events in 2023. The company is not providing FY 2023 guidance due to market volatility, but plans to use free cash flow to reduce debt.
- Transformation Program expected to deliver annual savings of at least $70 million.
- Reduced nominal debt by approximately $60 million.
- 10.3% decline in full-year 2022 net sales.
- Diluted EPS decreased from $4.13 in 2021 to $3.23 in 2022.
- 10.4% decline in Q4 2022 net sales compared to Q4 2021.
Highlights
-
Full year 2022 net sales of
$5.2 billion 10.3% decrease compared to the full year 2021. On a constant currency basis1, net sales declined5.4% compared to the prior year.
-
Full year 2022 reported diluted EPS of
$3.23 $3.40 $4.13 $4.79
-
Full year 2022 reported net income of
$321.3 million $694.5 million
-
Fourth quarter 2022 net sales of
$1.2 billion 10.4% decrease compared to the fourth quarter 2021. On a constant currency basis1, net sales declined4.2% compared to the prior year period.
-
Fourth quarter 2022 reported diluted EPS of
$0.55 $0.53 $0.37 $0.57
-
Fourth quarter 2022 reported net income of
$54.4 million $130.7 million
-
During the fourth quarter, the Company reduced its nominal debt level by approximately
$60 million
- Given the rapidly shifting macroeconomic sentiment and backdrop, as well as increased volatility in the market, the Company is not providing FY 2023 guidance.
-
The Company’s previously announced Transformation Program is expected to deliver annual savings of at least
$70 million
Management Commentary
During the quarter, management continued to execute on profit protection initiatives which helped generate Q4 2022 adjusted2 EBITDA that was approximately flat compared to the prior year period.
Keenly focused on opportunities to grow sales, leadership has been increasing in-person engagement with distributors. Year-to-date in 2023, the Company has already hosted 170 in-person Distributor events around the world, reaching approximately 175,000 Distributors.
“We anticipate the energy and engagement being generated at our in-person events will translate to improving metrics in 2023,” said Chairman and CEO,
From a global perspective, some of the Company’s underlying business trends and KPIs remained largely stabilized during the fourth quarter. Worldwide active sales leaders decreased approximately
While focused on growth, expense management initiatives remain a priority. The Company’s previously announced Transformation Program is expected to deliver annual savings of at least
“While we are optimistic about revitalizing the topline, we are actively controlling expenses to manage margins, maximize profitability and secure our balance sheet,” said CFO,
During the fourth quarter, the Company strategically reduced its nominal debt by approximately
1 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 Schedule A – “Reconciliation of Non-GAAP Financial Measures” for a discussion of why we believe adjusting for the effects of foreign exchange is useful.
2 Adjusted diluted EPS and adjusted EBITDA are non-GAAP measures. See Schedule A – “Reconciliation of Non-GAAP Financial Measures” for a detailed reconciliation of these measures to the most directly comparable GAAP measure, and a discussion of why we believe these non-GAAP measures are useful.
3 Adjusted EBITDA is a non-GAAP measure and excludes potential charges or gains that may be recorded during the applicable period, as discussed in greater detail in Schedule
Fourth Quarter and Full Year 2022 Key Metrics
Regional
Region |
Reported Net
|
Growth/Decline
|
Growth/Decline
|
|
|
$ |
396.8 |
( |
|
|
$ |
275.0 |
( |
( |
EMEA |
$ |
246.8 |
( |
( |
|
$ |
191.1 |
( |
( |
|
$ |
71.1 |
( |
( |
Worldwide Total |
$ |
1,180.8 |
( |
( |
Region |
Reported Net
|
Growth/Decline
|
Growth/Decline
|
|
|
$ |
1,686.9 |
|
|
|
$ |
1,262.2 |
( |
( |
EMEA |
$ |
1,078.5 |
( |
( |
|
$ |
785.8 |
( |
( |
|
$ |
391.0 |
( |
( |
Worldwide Total |
$ |
5,204.4 |
( |
( |
(a) During the third quarter of 2022, the Company combined its |
||||
Regional Volume Point Metrics
|
Volume Points |
Volume Points |
||
Region |
4Q'22 (mil) |
Yr/Yr % Chg |
FY'22 (mil) |
Yr/Yr % Chg |
|
496.6 |
|
2,156.5 |
|
|
294.6 |
( |
1,430.2 |
( |
EMEA |
299.3 |
( |
1,353.4 |
( |
|
273.3 |
( |
1,177.1 |
( |
|
46.9 |
( |
261.4 |
( |
Worldwide Total |
1,410.7 |
( |
6,378.6 |
( |
Outlook
Given the rapidly shifting macroeconomic sentiment and backdrop, as well as increased volatility in the market, the Company is not providing FY 2023 guidance. The Company will periodically reassess its ability to provide guidance when we believe future performance can be reasonably estimated.
Earnings Conference Call
Participants will need to register to receive dial-in information to the call, and may do so by visiting the investor relations section of the Company’s website at http://ir.herbalife.com. Additionally, live audio of the conference call will be simultaneously webcast at https://edge.media-server.com/mmc/p/n7dvdu8i.Senior management also plans to reference slides during the call, which will also be available on the investor relation’s section of the Company’s website.
An audio replay will be available following the completion of the conference call, and the webcast of the teleconference will be archived and available on the Company’s investor relations site.
About
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 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. 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 and 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.
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
| Condensed Consolidated Statements of Income | |||||||||||||||
| (In millions, except per share amounts) | |||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||
| (unaudited) | |||||||||||||||
$ |
275.0 |
|
$ |
302.3 |
$ |
1,262.2 |
|
$ |
1,428.9 |
|
|||||
| EMEA |
|
246.8 |
|
|
291.6 |
|
1,078.5 |
|
|
1,335.4 |
|
||||
|
396.8 |
|
|
397.3 |
|
1,686.9 |
|
|
1,586.1 |
|
|||||
|
191.1 |
|
|
196.4 |
|
785.8 |
|
|
822.9 |
|
|||||
|
71.1 |
|
|
130.4 |
|
391.0 |
|
|
629.5 |
|
|||||
| Worldwide |
|
1,180.8 |
|
|
1,318.0 |
|
5,204.4 |
|
|
5,802.8 |
|
||||
| Cost of Sales |
|
265.6 |
|
|
296.6 |
|
1,173.6 |
|
|
1,239.3 |
|
||||
| Gross Profit |
|
915.2 |
|
|
1,021.4 |
|
4,030.8 |
|
|
4,563.5 |
|
||||
| Royalty Overrides |
|
389.0 |
|
|
423.9 |
|
1,690.1 |
|
|
1,833.7 |
|
||||
| Selling, General, and Administrative Expenses |
|
437.3 |
|
|
513.2 |
|
1,810.4 |
|
|
2,012.1 |
|
||||
| Other Operating Income (1) |
|
- |
|
|
- |
|
(14.9 |
) |
|
(16.4 |
) |
||||
| Operating Income |
|
88.9 |
|
|
84.3 |
|
545.2 |
|
|
734.1 |
|
||||
| Interest Expense, net |
|
37.3 |
|
|
36.7 |
|
133.2 |
|
|
148.7 |
|
||||
| Other (Income) Expense, net (2) |
|
(12.8 |
) |
|
- |
|
(12.8 |
) |
|
24.6 |
|
||||
| Income Before Income Taxes |
|
64.4 |
|
|
47.6 |
|
424.8 |
|
|
560.8 |
|
||||
| Income Taxes |
|
10.0 |
|
|
9.4 |
|
103.5 |
|
|
113.6 |
|
||||
| Net Income | $ |
54.4 |
|
$ |
38.2 |
$ |
321.3 |
|
$ |
447.2 |
|
||||
| Weighted-Average Shares Outstanding: | |||||||||||||||
| Basic |
|
98.1 |
|
|
101.6 |
|
98.5 |
|
|
105.9 |
|
||||
| Diluted |
|
99.0 |
|
|
103.6 |
|
99.5 |
|
|
108.3 |
|
||||
| Earnings Per Share: | |||||||||||||||
| Basic | $ |
0.55 |
|
$ |
0.38 |
$ |
3.26 |
|
$ |
4.22 |
|
||||
| Diluted | $ |
0.55 |
|
$ |
0.37 |
$ |
3.23 |
|
$ |
4.13 |
|
||||
| (1) Other Operating Income for the twelve months ended |
|||||||||||||||
| (2) Other (Income) Expense, net for the three and twelve months ended |
|||||||||||||||
| Condensed Consolidated Balance Sheets | ||||||||
| (In millions) | ||||||||
|
|
|
||||||
|
2022 |
|
|
|
2021 |
|
||
| ASSETS | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ |
508.0 |
|
$ |
601.5 |
|
||
| Receivables, net |
|
70.6 |
|
|
66.9 |
|
||
| Inventories |
|
580.7 |
|
|
575.7 |
|
||
| Prepaid expenses and other current assets |
|
196.8 |
|
|
187.7 |
|
||
| Total Current Assets |
|
1,356.1 |
|
|
1,431.8 |
|
||
| Property, plant and equipment, net |
|
486.3 |
|
|
442.1 |
|
||
| Operating lease right-of-use assets |
|
207.1 |
|
|
220.0 |
|
||
| Marketing-related intangibles and other intangible assets, net |
|
315.7 |
|
|
317.3 |
|
||
|
93.2 |
|
|
95.4 |
|
|||
| Other assets |
|
273.6 |
|
|
313.2 |
|
||
| Total Assets | $ |
2,732.0 |
|
$ |
2,819.8 |
|
||
| LIABILITIES AND SHAREHOLDERS' DEFICIT | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable | $ |
89.8 |
|
$ |
92.0 |
|
||
| Royalty overrides |
|
343.3 |
|
|
363.2 |
|
||
| Current portion of long-term debt |
|
29.5 |
|
|
29.4 |
|
||
| Other current liabilities |
|
514.0 |
|
|
595.8 |
|
||
| Total Current Liabilities |
|
976.6 |
|
|
1,080.4 |
|
||
| Non-current liabilities: | ||||||||
| Long-term debt, net of current portion |
|
2,662.5 |
|
|
2,733.2 |
|
||
| Non-current operating lease liabilities |
|
192.4 |
|
|
201.2 |
|
||
| Other non-current liabilities |
|
166.4 |
|
|
196.5 |
|
||
| Total Liabilities |
|
3,997.9 |
|
|
4,211.3 |
|
||
| Commitments and Contingencies | ||||||||
| Shareholders' deficit: | ||||||||
| Common shares |
|
0.1 |
|
|
0.1 |
|
||
| Paid-in capital in excess of par value |
|
188.7 |
|
|
318.1 |
|
||
| Accumulated other comprehensive loss |
|
(250.2 |
) |
|
(211.8 |
) |
||
| Accumulated deficit |
|
(1,204.5 |
) |
|
(1,169.0 |
) |
||
|
- |
|
|
(328.9 |
) |
|||
| Total Shareholders' Deficit |
|
(1,265.9 |
) |
|
(1,391.5 |
) |
||
| Total Liabilities and Shareholders' Deficit | $ |
2,732.0 |
|
$ |
2,819.8 |
|
||
| Condensed Consolidated Statements of Cash Flows | ||||||||
| (In millions) | ||||||||
| Twelve Months Ended | ||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net income | $ |
321.3 |
|
$ |
447.2 |
|
||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation and amortization |
|
115.4 |
|
|
107.6 |
|
||
| Share-based compensation expenses |
|
44.4 |
|
|
54.1 |
|
||
| Non-cash interest expense |
|
6.7 |
|
|
30.1 |
|
||
| Deferred income taxes |
|
(29.9 |
) |
|
(33.3 |
) |
||
| Inventory write-downs |
|
38.4 |
|
|
28.8 |
|
||
| Foreign exchange transaction loss |
|
9.1 |
|
|
14.3 |
|
||
| (Gain) Loss on extinguishment of debt |
|
(12.8 |
) |
|
24.6 |
|
||
| Other |
|
(17.0 |
) |
|
5.2 |
|
||
| Changes in operating assets and liabilities: | ||||||||
| Receivables |
|
(9.1 |
) |
|
9.6 |
|
||
| Inventories |
|
(68.4 |
) |
|
(129.1 |
) |
||
| Prepaid expenses and other current assets |
|
(12.4 |
) |
|
(49.3 |
) |
||
| Accounts payable |
|
(1.1 |
) |
|
6.9 |
|
||
| Royalty overrides |
|
(9.6 |
) |
|
17.8 |
|
||
| Other current liabilities |
|
(53.6 |
) |
|
(68.8 |
) |
||
| Other |
|
31.1 |
|
|
(5.4 |
) |
||
| NET CASH PROVIDED BY OPERATING ACTIVITIES |
|
352.5 |
|
|
460.3 |
|
||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Purchases of property, plant and equipment |
|
(156.4 |
) |
|
(151.4 |
) |
||
| Other |
|
0.2 |
|
|
(5.0 |
) |
||
|
(156.2 |
) |
|
(156.4 |
) |
|||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Borrowings from senior secured credit facility and other debt, net of discount |
|
564.2 |
|
|
671.1 |
|
||
| Principal payments on senior secured credit facility and other debt |
|
(683.5 |
) |
|
(563.5 |
) |
||
| Proceeds from convertible senior notes |
|
277.5 |
|
|
- |
|
||
| Repayment of convertible senior notes |
|
(273.2 |
) |
|
- |
|
||
| Proceeds from senior notes |
|
- |
|
|
600.0 |
|
||
| Repayment of senior notes |
|
- |
|
|
(420.7 |
) |
||
| Debt issuance costs |
|
(7.2 |
) |
|
(8.4 |
) |
||
| Share repurchases |
|
(146.7 |
) |
|
(1,011.3 |
) |
||
| Other |
|
4.2 |
|
|
4.2 |
|
||
|
(264.7 |
) |
|
(728.6 |
) |
|||
| EFFECT OF EXCHANGE RATE CHANGES ON CASH, CASH EQUIVALENTS, AND RESTRICTED CASH |
|
(25.7 |
) |
|
(18.9 |
) |
||
| NET CHANGE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH |
|
(94.1 |
) |
|
(443.6 |
) |
||
| CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF PERIOD |
|
610.4 |
|
|
1,054.0 |
|
||
| CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD | $ |
516.3 |
|
$ |
610.4 |
|
||
| Cash paid during the year: | ||||||||
| Interest paid | $ |
133.5 |
|
$ |
143.5 |
|
||
| Income taxes paid | $ |
144.9 |
|
$ |
156.3 |
|
||
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, Adjusted Diluted EPS and Adjusted EBITDA
In addition to its reported results calculated in accordance with GAAP, the Company has included in this release adjusted net income, adjusted diluted EPS and adjusted EBITDA, performance measures that the
Management believes that such non-GAAP financial measures, when read in conjunction with the Company’s reported results, 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 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 and calculation as set forth in the tables below of adjusted net income, adjusted diluted EPS and adjusted EBITDA 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. The Company does not provide reconciliations of forward-looking non-GAAP adjusted EBITDA financial targets to net income, the comparable GAAP measure, because the impact and timing of the potential charges and gains cannot be determined without unreasonable efforts due to the inherent historical variability, complexity, and unpredictability. These items, which are necessary for a presentation of a reconciliation to GAAP, could have a potentially significant impact on the Company’s GAAP results.
Currency Fluctuation
Our international operations have provided and will continue to provide a significant portion of our total net sales. As a result, total net sales will continue to be affected by fluctuations in the
| The following is a reconciliation of net income, presented and reported in accordance with |
||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| (in millions) | ||||||||||||||||
| Net income, as reported | $ |
54.4 |
|
$ |
38.2 |
|
$ |
321.3 |
|
$ |
447.2 |
|
||||
| Non-cash interest expense and amortization of non-cash issuance costs (1) (2) (3) |
|
- |
|
|
6.1 |
|
|
- |
|
|
23.7 |
|
||||
| Debt issuance costs related to the senior secured credit facility amendment (1) (2) (4) |
|
- |
|
|
- |
|
|
- |
|
|
1.7 |
|
||||
| Net expenses related to COVID-19 pandemic (1) (2) |
|
0.6 |
|
|
2.0 |
|
|
4.4 |
|
|
13.8 |
|
||||
| Expenses related to transformation program (1) (2) |
|
4.4 |
|
|
5.3 |
|
|
12.1 |
|
|
12.9 |
|
||||
|
- |
|
|
- |
|
|
5.5 |
|
|
- |
|
|||||
| (Gain) Loss on extinguishment of debt (1) (2) (5) |
|
(12.8 |
) |
|
- |
|
|
(12.8 |
) |
|
24.6 |
|
||||
| Non-income tax items, net (1) (2) (6) |
|
- |
|
|
- |
|
|
- |
|
|
(7.4 |
) |
||||
| Digital technology program costs (1) (2) |
|
8.6 |
|
|
- |
|
|
11.9 |
|
|
- |
|
||||
| Expenses related to regulatory inquiries and legal accruals (1) (2) (7) |
|
- |
|
|
12.5 |
|
|
- |
|
|
12.5 |
|
||||
| Income tax adjustments for above items (1) (2) |
|
(2.7 |
) |
|
(4.8 |
) |
|
(4.1 |
) |
|
(10.9 |
) |
||||
| Net income, as adjusted (8) | $ |
52.4 |
|
$ |
59.3 |
|
$ |
338.3 |
|
$ |
518.0 |
|
||||
| The following is a reconciliation of diluted earnings per share, presented and reported in accordance with |
||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| (per share) | ||||||||||||||||
| Diluted earnings per share, as reported | $ |
0.55 |
|
$ |
0.37 |
|
$ |
3.23 |
|
$ |
4.13 |
|
||||
| Non-cash interest expense and amortization of non-cash issuance costs (1) (2) (3) |
|
- |
|
|
0.06 |
|
|
- |
|
|
0.22 |
|
||||
| Debt issuance costs related to the senior secured credit facility amendment (1) (2) (4) |
|
- |
|
|
- |
|
|
- |
|
|
0.02 |
|
||||
| Net expenses related to COVID-19 pandemic (1) (2) |
|
0.01 |
|
|
0.02 |
|
|
0.04 |
|
|
0.13 |
|
||||
| Expenses related to transformation program (1) (2) |
|
0.04 |
|
|
0.05 |
|
|
0.12 |
|
|
0.12 |
|
||||
|
- |
|
|
- |
|
|
0.06 |
|
|
- |
|
|||||
| (Gain) Loss on extinguishment of debt (1) (2) (5) |
|
(0.13 |
) |
|
- |
|
|
(0.13 |
) |
|
0.23 |
|
||||
| Non-income tax items, net (1) (2) (6) |
|
- |
|
|
- |
|
|
- |
|
|
(0.07 |
) |
||||
| Digital technology program costs (1) (2) |
|
0.09 |
|
|
- |
|
|
0.12 |
|
|
- |
|
||||
| Expenses related to regulatory inquiries and legal accruals (1) (2) (7) |
|
- |
|
|
0.12 |
|
|
- |
|
|
0.12 |
|
||||
| Income tax adjustments for above items (1) (2) |
|
(0.03 |
) |
|
(0.05 |
) |
|
(0.04 |
) |
|
(0.10 |
) |
||||
| Adjusted diluted earnings per share (8) | $ |
0.53 |
|
$ |
0.57 |
|
$ |
3.40 |
|
$ |
4.79 |
|
||||
| The following is a reconciliation of net income, presented and reported in accordance with |
|||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||
| (in millions) | |||||||||||||||
| Net income, as reported | $ |
54.4 |
|
$ |
38.2 |
$ |
321.3 |
|
$ |
447.2 |
|
||||
| Interest Expense, net |
|
37.3 |
|
|
36.7 |
|
133.2 |
|
|
148.7 |
|
||||
| Income Taxes |
|
10.0 |
|
|
9.4 |
|
103.5 |
|
|
113.6 |
|
||||
| Depreciation and amortization |
|
28.2 |
|
|
27.5 |
|
115.4 |
|
|
107.6 |
|
||||
| EBITDA | $ |
129.9 |
|
$ |
111.8 |
$ |
673.4 |
|
$ |
817.1 |
|
||||
| Net expenses related to COVID-19 pandemic (1) (2) |
|
0.6 |
|
|
2.0 |
|
4.4 |
|
|
13.8 |
|
||||
| Expenses related to transformation program (1) (2) |
|
4.4 |
|
|
5.3 |
|
12.1 |
|
|
12.9 |
|
||||
|
- |
|
|
- |
|
5.5 |
|
|
- |
|
|||||
| (Gain) Loss on extinguishment of debt (1) (2) (5) |
|
(12.8 |
) |
|
- |
|
(12.8 |
) |
|
24.6 |
|
||||
| Non-income tax items, net (1) (2) (6) |
|
- |
|
|
- |
|
- |
|
|
(7.4 |
) |
||||
| Digital technology program costs (1) (2) |
|
8.6 |
|
|
- |
|
11.9 |
|
|
- |
|
||||
| Expenses related to regulatory inquiries and legal accruals (1) (2) (7) |
|
- |
|
|
12.5 |
|
- |
|
|
12.5 |
|
||||
| Adjusted EBITDA | $ |
130.7 |
|
$ |
131.6 |
$ |
694.5 |
|
$ |
873.5 |
|
||||
| (1) Based on interim income tax reporting rules, these expenses are not considered discrete items. The tax effect of the adjustments between our 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: | |||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||
| (in millions) | |||||||||||||||
| Non-cash interest expense and amortization of non-cash issuance costs | $ |
- |
|
$ |
(0.7 |
) |
$ |
- |
|
|
- |
|
|||
| Debt issuance costs related to the senior secured credit facility amendment |
|
- |
|
|
(0.1 |
) |
|
- |
|
|
(0.4 |
) |
|||
| Net expenses related to COVID-19 pandemic |
|
(0.1 |
) |
|
(0.5 |
) |
|
(0.8 |
) |
|
(2.6 |
) |
|||
| Expenses related to transformation program |
|
(1.2 |
) |
|
(0.7 |
) |
|
(1.6 |
) |
|
(1.4 |
) |
|||
|
0.1 |
|
|
- |
|
|
(1.1 |
) |
|
- |
|
||||
| (Gain) Loss on extinguishment of debt |
|
- |
|
|
- |
|
|
- |
|
|
(5.5 |
) |
|||
| Non-income tax items, net |
|
- |
|
|
- |
|
|
- |
|
|
1.8 |
|
|||
| Digital technology program costs |
|
(1.5 |
) |
|
- |
|
|
(0.6 |
) |
|
- |
|
|||
| Expenses related to regulatory inquiries and legal accruals |
|
- |
|
|
(2.9 |
) |
|
- |
|
|
(2.9 |
) |
|||
| Total income tax adjustments (8) | $ |
(2.7 |
) |
$ |
(4.8 |
) |
$ |
(4.1 |
) |
$ |
(10.9 |
) |
|||
| Three Months Ended | Twelve Months Ended | ||||||||||||||
| (per share) | |||||||||||||||
| Non-cash interest expense and amortization of non-cash issuance costs |
|
- |
|
$ |
(0.01 |
) |
|
- |
|
|
- |
|
|||
| Debt issuance costs related to the senior secured credit facility amendment |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|||
| Net expenses related to COVID-19 pandemic |
|
- |
|
|
- |
|
|
(0.01 |
) |
|
(0.02 |
) |
|||
| Expenses related to transformation program |
|
(0.01 |
) |
|
(0.01 |
) |
|
(0.02 |
) |
|
(0.01 |
) |
|||
|
- |
|
|
- |
|
|
(0.01 |
) |
|
- |
|
||||
| (Gain) Loss on extinguishment of debt |
|
- |
|
|
- |
|
|
- |
|
|
(0.05 |
) |
|||
| Non-income tax items, net |
|
- |
|
|
- |
|
|
- |
|
|
0.02 |
|
|||
| Digital technology program costs |
|
(0.02 |
) |
|
- |
|
|
(0.01 |
) |
|
- |
|
|||
| Expenses related to regulatory inquiries and legal accruals |
|
- |
|
|
(0.03 |
) |
|
- |
|
|
(0.03 |
) |
|||
| Total income tax adjustments (8) | $ |
(0.03 |
) |
$ |
(0.05 |
) |
$ |
(0.05 |
) |
$ |
(0.10 |
) |
|||
| (3) Relates to non-cash expense on the Company's |
|||||||||||||||
| (4) Relates to costs incurred in the amendment of the senior secured credit facility as described in the Company's Form 10-K for the year ended |
|||||||||||||||
| (5) Amounts for the three and twelve months ended |
|||||||||||||||
| (6) Relates to certain non-income tax assessments, recoveries and credits | |||||||||||||||
| (7) Amounts for the three and twelve months ended |
|||||||||||||||
| (8) Amounts may not total due to rounding. | |||||||||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20230213005682/en/
Media Contact:
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213.745.0456
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Source:
FAQ
What were Herbalife's 2022 financial results?
What was Herbalife's diluted EPS for Q4 2022?
How much debt did Herbalife reduce in Q4 2022?
What is the Transformation Program by Herbalife?
Is Herbalife providing 2023 guidance?
