Search the web
Welcome, Guest
[Sign Out, My Account]
EDGAR_Online

Quotes & Info
Enter Symbol(s):
e.g. YHOO, ^DJI
Symbol Lookup | Financial Search
HLF > SEC Filings for HLF > Form 8-K on 3-Mar-2016All Recent SEC Filings

Show all filings for HERBALIFE LTD.

Form 8-K for HERBALIFE LTD.


3-Mar-2016

Regulation FD Disclosure


Item 7.01. Regulation FD Disclosure.

On March 1, 2016, Herbalife Ltd. (the "Company") identified errant information regarding the Company's new "Active New Member" metric that was provided on certain of the Company's 2015 earnings calls, as outlined in greater detail in the tables below. The Company began tracking this non-financial metric in 2015 in connection with certain marketing plan changes and discussed it for the first time on its second quarter 2015 earnings call. However, database scripting errors led to both (i) the errant inclusion of additional categories of data in calculating the metric for parts of 2015 which were not included in the 2014 and prior period calculations and (ii) quarterly aggregation issues which created variances from period-to-period depending on when the greatest level of activity occurred during the relevant period. The Company did not discover these errors earlier because it had limited visibility into the likely rate of change in this metric upon its first use. The Company has taken corrective action regarding these issues. No information regarding this non-financial metric has been included in any of the Company's periodic reports filed with the Securities and Exchange Commission and the errors do not impact the Company's historical consolidated financial statements.

The tables below, organized by the relevant earnings call, provide more detailed information regarding the errant information provided with respect to the Active New Member metric and the information as corrected. Contemporaneous with the furnishing of this Current Report on Form 8-K, the Company is also posting to its Investor Relations webpage updated copies of the transcripts for the earnings calls referenced below with annotations identifying and correcting the errant information.

Earnings Call for the Fourth Quarter and Full Year 2015 held on February 25, 2016

                Information                         As originally quoted        Correct value
"Worldwide, active new members' excluding
China was up 16.7 percent in the quarter" -
comparing the 4th quarter of 2015 vs. the
4th quarter of 2014                                        16.7%                    3.2%

"[Worldwide active new members, excluding
China] up 8.3 percent for the full year." -
and comparing full year 2015 vs. full year
2014                                                        8.3%                    3.4%

"[U.S.] active new members up 71 percent
compared to the same quarter 2014"-comparing
the 4th quarter of 2015 vs. the 4th quarter
of 2014                                                    71.0%                    30.7%

"With respect to the trend of active new
sales members in Mexico, it improved
sequentially in Q4 and throughout the year
and was up 32 percent in the Fourth Quarter
compared to the Fourth Quarter of 2014."                   32.0%                    34.1%

"[EMEA] active new members were up 44
percent" - comparing the 4th quarter of 2015
vs. the 4th quarter of 2014                                44.0%                    17.7%

"Excluding Korea, active new members in
Asia-Pacific were up 35 percent" - comparing
the 4th quarter of 2015 vs. the 4th quarter
of 2014                                                    35.0%                    30.4%

Earnings Call for the Third Quarter of 2015 held on November 3, 2015



                Information                     As originally quoted     Correct value
"We're also seeing growth in the number of     All regions saw growth   All regions
new members placing orders in all six                                   excluding APAC
regions." - comparing the 3rd quarter of                                saw growth in
2015 vs. the 3rd quarter of 2014                                        the 3rd quarter
                                                                        2015 vs. the 3rd
                                                                        quarter 2014


--------------------------------------------------------------------------------
                Information                    As originally quoted    Correct value

"For example this quarter the number of               33.0%                 1.8%
active new members and our North American
region was up 33 percent" - comparing the
3rd quarter of 2015 vs. the 3rd quarter of
2014

"[North America active new members] a                 -16.0%               -15.4%
decline of 16 percent in the second
quarter." - comparing the 2nd quarter of
2015 vs. the 2nd quarter of 2014

"This is good news as it represents the        First positive YOY     First positive
first time in North America since quarter      increase since the     YOY increase
one 2014 that new members with volume have     first quarter of       since the second
grown versus the prior year period." -         2014                   quarter of 2014
comparing the third quarter of 2015 against
the prior quarter that had most recently
experienced positive YOY growth in Active
new members for North America

"On a worldwide basis excluding China the             21.0%                 8.7%
total number of new active members was up 21
percent compared to the prior-year period."
- comparing the 3rd quarter of 2015 vs. the
3rd quarter of 2014

"This is more good news as it compares to              1.0%                 3.7%
just a 1 percent increase in between Q2 2014
and the second quarter of this year." -
comparing the 2nd quarter of 2015 vs. the
2nd quarter of 2014

"Worldwide new members with activity,                 21.0%                 8.7%
excluding China, grew 21 percent in the
third quarter" - comparing the 3rd quarter
of 2015 vs. the 3rd quarter of 2014

"[Worldwide active new members, excluding              1.0%                 3.7%
China] compared to the prior-year period and
improve sequentially against an increase of
only 1 percent in the second quarter of
2015." - comparing the 2nd quarter of 2015
vs. the 2nd quarter of 2014, and sequential
comparison between the 2nd quarter of 2015
vs. the 3rd quarter of 2015

"for the first time since the first quarter    First positive YOY     First positive
of 2014 active new members in the U.S. group   increase since the     YOY increase
versus the prior-year period." - comparing     first quarter of       since the second
the most recent quarter which resulted in      2014                   quarter of 2014
positive YOY growth in Active new members
for the U.S.

"[U.S.] Active new members were up 33                 33.0%                 0.8%
percent compared to the same quarter last
year." - comparing the 3rd quarter of 2015
vs. the 3rd quarter of 2014

"[U.S.] And this compares to . . . a decline          -28.0%               -27.1%
of 28 percent in Q1." - comparing the 1st
quarter of 2015 vs. the 1st quarter of 2014

"[Brazil] new members with activity were 65           65.0%                71.9%
percent compared to last year." - comparing
the 3rd quarter of 2015 vs. the 3rd quarter
of 2014

"[Mexico] compared to the prior year up from          14.0%                21.7%
14 percent growth in Q2." - comparing the
2nd quarter of 2015 vs. the 2nd quarter of
2014

"[EMEA] new members with activity increase            34.0%                10.2%
34 percent compared to the prior year" -
comparing the 3rd quarter of 2015 vs. the
3rd quarter of 2014


--------------------------------------------------------------------------------
                Information                    As originally quoted    Correct value

"[Worldwide excluding China is] active new            -4.0%                -1.7%
members in Q1 of this year was down 4
percent;" - comparing the 1st quarter of
2015 vs. the 1st quarter of 2014

"[Worldwide excluding China] in Q2 it was up           1.0%                 3.7%
1 percent;" - comparing the 2nd quarter of
2015 vs. the 2ndquarter of 2014

"[Worldwide excluding China] in Q3 of was up          21.0%                 8.7%
21 percent. So dramatic increase." -
comparing the 3rd quarter of 2015 vs. the
3rd quarter of 2014

"In the U.S. in Q1 it was down 28 percent" -          -28.0%               -27.1%
comparing the 1st quarter of 2015 vs. the
1st quarter of 2014

"[U.S.] in Q2 is down 17 percent" -                   -17.0%               -16.0%
comparing the 2nd quarter of 2015 vs. the
2nd quarter of 2014

"[U.S.] in Q3 up 33 percent." - comparing             33.0%                 0.8%
the 3rd quarter of 2015 vs. the 3rd quarter
of 2014

"New members with activity are up in every     All regions saw YOY    New members with
region both compared to prior year and         growth and             activity were up
sequentially." - comparing the 3rd quarter     sequential             in every region
of 2015 vs. the 3rd quarter of 2014 and a      improvement.           with the
sequential comparison between the 2nd                                 exception of
quarter of 2015 vs. the 3rd quarter of 2015                           APAC, and new
                                                                      members with
                                                                      activity was
                                                                      sequentially up
                                                                      from the 2nd
                                                                      quarter of 2015
                                                                      to the 3rd
                                                                      quarter of 2015
                                                                      only in the
                                                                      SAMCAM region.

Earnings Call for the Second Quarter of 2015 held on August 5, 2015



                Information                    As originally quoted    Correct value
"New members [in Mexico] with activity                14.0%                21.7%
increased by 14 percent during the second
quarter" - comparing the 2nd quarter of 2015
vs. the 2nd quarter of 2014


  Add HLF to Portfolio     Set Alert         Email to a Friend  
Get SEC Filings for Another Symbol: Symbol Lookup
Quotes & Info for HLF - All Recent SEC Filings
Copyright © 2017 Yahoo! Inc. All rights reserved. Privacy Policy - Terms of Service
SEC Filing data and information provided by EDGAR Online, Inc. (1-800-416-6651). All information provided "as is" for informational purposes only, not intended for trading purposes or advice. Neither Yahoo! nor any of independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. By accessing the Yahoo! site, you agree not to redistribute the information found therein.