Herbalife Ltd. Announces Record Second Quarter, Raises Guidance and Increases Quarterly Dividend to $0.25

Herbalife Ltd. HLF today reported second quarter net sales increased 20.5 percent to $688.8 million. The record revenue reflects volume point growth of 19.9 percent and an increase in Average Active Sales Leaders of 11.9 percent, both compared to the second quarter of 2009. For the quarter ended June 30, 2010, the company reported net income of $81.9 million, or $1.32 per diluted share compared to $48.3 million or $0.77 per diluted share in the second quarter of 2009, primarily reflecting the contribution margin from higher volume combined with a lower effective tax rate, partially offset by the impact of foreign currency fluctuations. For the quarter ended June 30, 2010, the company generated cash flow from operations of $83.0 million, paid dividends of $12.0 million, invested $12.3 million in capital expenditures and repurchased $51.2 million in common stock. The company's net debt balanceat the end of the second quarter was $73.1 million, reflecting an improvement of $26.4 million from December 31, 2009. Board of Directors authorized increase in quarterly cash dividend from $0.20 to $0.25.