Herbalife Ltd. (HLF, Financial) filed Quarterly Report for the period ended 2010-09-30.
Herbalife Ltd. has a market cap of $3.79 billion; its shares were traded at around $63.86 with a P/E ratio of 15.6 and P/S ratio of 1.6. The dividend yield of Herbalife Ltd. stocks is 1.6%. Herbalife Ltd. had an annual average earning growth of 18.4% over the past 5 years.HLF is in the portfolios of Bruce Kovner of Caxton Associates, George Soros of Soros Fund Management LLC, Jeremy Grantham of GMO LLC.
Net income for the three and nine months ended September 30, 2010 was $75.7 million, or $1.22 per diluted share, and $209.5 million, or $3.37 per diluted share, respectively. Net income increased $17.8 million, or 30.8%, and $61.9 million, or 41.9%, for the three and nine months ended September 30, 2010, respectively, as compared to the same periods in 2009. The increase for the three months ended September 30, 2010 was primarily driven by higher operating margin and lower effective tax rate, partially offset by higher salaries, bonuses and benefits, unfavorable impact of foreign exchange and higher distributor promotion and event costs. The increase for the nine months ended September 30, 2010 was primarily driven by higher operating margin, lower effective tax rate and lower professional fees, and was partially offset by higher salaries, bonuses and benefits, higher China sales employee and licensed business provider costs, higher distributor promotion and event costs and higher depreciation expense.
Net income for the three and nine months ended September 30, 2010 included a $3.2 million tax benefit from an international income tax audit settlement. Net income for the nine months ended September 30, 2010 also included a $15.1 million unfavorable impact related to remeasurement of monetary assets and liabilities resulting from Venezuela being designated as a highly inflationary economy beginning January 1, 2010; a $12.7 million unfavorable impact related to incremental U.S. dollar costs of 2009 imports into Venezuela which were recorded at the unfavorable parallel market exchange rate and were not devalued based on 2010 exchange rates but rather recorded to cost of sales at their historical dollar costs as products were sold in the first quarter of 2010; a $3.7 million favorable impact resulting from receipt of U.S. dollars approved by the Venezuelan governments foreign exchange commission, CADIVI, at the official exchange rate relating to 2009 product importations which were previously registered with CADIVI, a $14.5 million one-time favorable impact to income taxes related to Venezuela becoming a highly inflationary economy and a $4.0 million pre-tax ($2.6 million post-tax) foreign exchange gain in Herbalife Venezuela as a result of remeasuring its Bolivar denominated monetary assets and liabilities as of June 30, 2010 at the SITME rate of 5.3 Bolivars per U.S. dollar as opposed to the last parallel market rate of 8.3 Bolivars per U.S. dollar.
Net income for the three and nine months ended September 30, 2009 included a $4.3 million and $3.2 million net favorable impact, respectively, from expiration of certain statute of limitations offset by a charge for an international income tax audit settlement. Net income for the three and nine months ended September 30, 2009 also included a $0.5 million and $0.9 million unfavorable after tax impact, respectively, in connection with our restructuring activities.
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Herbalife Ltd. has a market cap of $3.79 billion; its shares were traded at around $63.86 with a P/E ratio of 15.6 and P/S ratio of 1.6. The dividend yield of Herbalife Ltd. stocks is 1.6%. Herbalife Ltd. had an annual average earning growth of 18.4% over the past 5 years.HLF is in the portfolios of Bruce Kovner of Caxton Associates, George Soros of Soros Fund Management LLC, Jeremy Grantham of GMO LLC.
Highlight of Business Operations:
Net sales for the three and nine months ended September 30, 2010 were $688.4 million and $1,995.9 million, respectively. Net sales increased $88.2 million, or 14.7%, and $302.2 million, or 17.8%, for the three and nine months ended September 30, 2010, respectively, as compared to the same periods in 2009. In local currency, net sales for the three and nine months ended September 30, 2010 increased 16.7% and 16.8%, respectively, as compared to the same periods in 2009. The increase in net sales was primarily due to the continued successful adoption and operation of daily consumption business models, an increase in average active sales leaders, branding activities and increased distributor recruiting.Net income for the three and nine months ended September 30, 2010 was $75.7 million, or $1.22 per diluted share, and $209.5 million, or $3.37 per diluted share, respectively. Net income increased $17.8 million, or 30.8%, and $61.9 million, or 41.9%, for the three and nine months ended September 30, 2010, respectively, as compared to the same periods in 2009. The increase for the three months ended September 30, 2010 was primarily driven by higher operating margin and lower effective tax rate, partially offset by higher salaries, bonuses and benefits, unfavorable impact of foreign exchange and higher distributor promotion and event costs. The increase for the nine months ended September 30, 2010 was primarily driven by higher operating margin, lower effective tax rate and lower professional fees, and was partially offset by higher salaries, bonuses and benefits, higher China sales employee and licensed business provider costs, higher distributor promotion and event costs and higher depreciation expense.
Net income for the three and nine months ended September 30, 2010 included a $3.2 million tax benefit from an international income tax audit settlement. Net income for the nine months ended September 30, 2010 also included a $15.1 million unfavorable impact related to remeasurement of monetary assets and liabilities resulting from Venezuela being designated as a highly inflationary economy beginning January 1, 2010; a $12.7 million unfavorable impact related to incremental U.S. dollar costs of 2009 imports into Venezuela which were recorded at the unfavorable parallel market exchange rate and were not devalued based on 2010 exchange rates but rather recorded to cost of sales at their historical dollar costs as products were sold in the first quarter of 2010; a $3.7 million favorable impact resulting from receipt of U.S. dollars approved by the Venezuelan governments foreign exchange commission, CADIVI, at the official exchange rate relating to 2009 product importations which were previously registered with CADIVI, a $14.5 million one-time favorable impact to income taxes related to Venezuela becoming a highly inflationary economy and a $4.0 million pre-tax ($2.6 million post-tax) foreign exchange gain in Herbalife Venezuela as a result of remeasuring its Bolivar denominated monetary assets and liabilities as of June 30, 2010 at the SITME rate of 5.3 Bolivars per U.S. dollar as opposed to the last parallel market rate of 8.3 Bolivars per U.S. dollar.
Net income for the three and nine months ended September 30, 2009 included a $4.3 million and $3.2 million net favorable impact, respectively, from expiration of certain statute of limitations offset by a charge for an international income tax audit settlement. Net income for the three and nine months ended September 30, 2009 also included a $0.5 million and $0.9 million unfavorable after tax impact, respectively, in connection with our restructuring activities.
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