Herbalife Reports Q1 Revenues of $795.1M vs. $736.5M Est. (HLF)

Herbalife HLF today reported that first quarter net sales increased 28.5 percent and local currency net sales increased 24.7 percent compared to the same time period in 2010. Adjusted1 net income for the quarter of $88.3 million, or $1.43 per diluted share compares to 2010 first quarter adjusted net income and EPS of $61.5 million and $0.98, respectively. On a reported basis, first quarter 2011 EPS of $1.41 increased 70 percent compared to the $0.83 reported in the comparable quarter last year. “Our ongoing efforts to globalize daily consumption-based distributor methods of operation (DMOs) continued to provide strong growth to both the top and bottom line growth in the first quarter,” said Michael O. Johnson, the company's chairman and CEO. “The company's strategic focus to provide solutions for two large mega trends, the global obesity epidemic and the desire for people to earn more income, continues to provide a large platform for us to succeed. The company will continue to invest to support our growth with such initiatives as the Seed to Feed verticalization strategy.” For the quarter ended March 31, 2011, the company generated cash flow from operations of $107.5 million, an increase of 23.0 percent compared to the first quarter 2010, paid dividends of $14.8 million and invested $28.3 million in capital expenditures.