Herbalife Ltd. Announces Record Fourth Quarter 2012 And Record Full Year Results, And Raises 2013 Earnings Guidance

• 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 Ltd.
Condensed Consolidated Statements of Income
(In thousands, except per share amounts)
(Unaudited)
	Three Months Ended							Twelve Months Ended
		12/31/2012			12/31/2011				12/31/2012			12/31/2011
North America	$	197,052		$	165,737			$	841,243		$	698,631
Mexico		132,070			106,192				496,101			436,930
South and Central America		203,252			155,373				688,799			554,439
EMEA		164,684			151,556				627,801			615,180
Asia Pacific		295,166			247,015				1,139,867			938,590
China		67,096			58,696				278,519			210,767
Worldwide net sales		1,059,320			884,569				4,072,330			3,454,537
Cost of Sales		211,105			170,960				812,583			680,084
Gross Profit		848,215			713,609				3,259,747			2,774,453
Royalty Overrides		355,658			293,109				1,338,633			1,137,560
SGA		332,764			286,151				1,259,667			1,074,623
Operating Income		159,793			134,349				661,447			562,270
Interest Expense - net		2,453			(1,357	)			10,541			2,491
Income before income taxes		157,340			135,706				650,906			559,779
Income Taxes		39,459			30,349				173,716			147,201
Net Income		117,881			105,357				477,190			412,578
Basic Shares		107,444			115,989				112,359			117,540
Diluted Shares		112,230			122,640				117,856			124,846
Basic EPS	$	1.10		$	0.91			$	4.25		$	3.51
Diluted EPS	$	1.05		$	0.86			$	4.05		$	3.30
Dividends declared per share	$	0.30		$	0.20			$	1.20		$	0.73

Herbalife Ltd.
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
	Dec 31,				Dec 31,
		2012				2011
ASSETS
Current Assets:
Cash & cash equivalents	$	333,534			$	258,775
Receivables, net		116,139				89,660
Inventories		339,411				247,696
Prepaid expenses and other current assets		125,425				117,073
Deferred income taxes		49,339				55,615
Total Current Assets		963,848				768,819
Property, plant and equipment, net		242,886				193,703
Deferred compensation plan assets		24,267				20,511
Other assets		48,805				41,125
Deferred financing cost, net		7,462				4,797
Marketing related intangibles and other intangible assets, net		311,186				311,764
Goodwill		105,490				105,490
Total Assets	$	1,703,944			$	1,446,209
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable	$	75,209			$	57,095
Royalty overrides		243,351				197,756
Accrued compensation		95,220				76,435
Accrued expenses		181,523				152,744
Current portion of long term debt		56,302				1,542
Advance sales deposits		49,432				31,702
Income taxes payable		15,854				31,415
Total Current Liabilities		716,891				548,689
Non-current liabilities
Long-term debt, net of current portion		431,305				202,079
Deferred compensation plan liability		29,454				23,702
Deferred income taxes		62,982				72,348
Other non-current liabilities		42,557				39,203
Total Liabilities		1,283,189				886,021
Commitments and Contingencies
Shareholders' equity:
Common shares		107				116
Paid-in capital in excess of par value		303,975				291,950
Accumulated other comprehensive loss		(31,695	)			(37,809	)
Retained earnings		148,368				305,931
Total Shareholders' Equity		420,755				560,188
Total Liabilities and Shareholders' Equity	$	1,703,944			$	1,446,209

Herbalife Ltd.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
		Twelve Months Ended
		12/31/2012				12/31/2011
CASH FLOWS FROM OPERATING ACTIVITIES
Net income		$	477,190			$	412,578
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation and amortization			74,384				71,853
Excess tax benefits from share-based payment arrangements			(29,684	)			(27,450	)
Share based compensation expenses			27,906				24,133
Amortization of discount and deferred financing costs			1,797				1,007
Deferred income taxes			(9,050	)			(12,984	)
Unrealized foreign exchange transaction loss (gain)			2,121				9,403
Write-off of deferred financing costs			-				914
Other			532				2,206
Changes in operating assets and liabilities:
Receivables			(28,186	)			(9,687	)
Inventories			(82,177	)			(84,880	)
Prepaid expenses and other current assets			249				3,229
Other assets			(5,288	)			(13,864	)
Accounts payable			17,034				15,427
Royalty overrides			41,868				44,041
Accrued expenses and accrued compensation			39,440				28,749
Advance sales deposits			17,790				(1,538	)
Income taxes			16,106				42,659
Deferred compensation plan liability			5,752				3,535
NET CASH PROVIDED BY OPERATING ACTIVITIES			567,784				509,331
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property, plant and equipment			(121,524	)			(90,408	)
Proceeds from sale of property, plant and equipment			280				297
Deferred compensation plan assets			(3,756	)			(1,975	)
NET CASH USED IN INVESTING ACTIVITIES			(125,000	)			(92,086	)
CASH FLOWS FROM FINANCING ACTIVITIES
Dividends paid			(135,091	)			(85,489	)
Borrowings from long-term debt			1,430,560				914,200
Principal payments on long-term debt			(1,146,580	)			(888,865	)
Deferred financing costs			(4,460	)			(5,718	)
Share repurchases			(556,727	)			(321,639	)
Excess tax benefits from share-based payment arrangements			29,684				27,450
Proceeds from exercise of stock options and sale of stock under
employee stock purchase plan			11,373				22,262
NET CASH USED IN FINANCING ACTIVITIES			(371,241	)			(337,799	)
EFFECT OF EXCHANGE RATE CHANGES ON CASH			3,216				(11,221	)
NET CHANGE IN CASH AND CASH EQUIVALENTS			74,759				68,225
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR			258,775				190,550
CASH AND CASH EQUIVALENTS, END OF YEAR			333,534				258,775
CASH PAID DURING THE YEAR
Interest paid		$	14,268			$	8,800
Income taxes paid		$	169,725			$	118,906

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