Herbalife (HLF) Looks at Alternative Methods to Finance Buybacks
Herbalife (NYSE: HLF) shares are up about 3.0 percent Tuesday following strong Q1 results and boosted outlook issued Monday night. CEO Michael Johnson and president Des Walsh spoke on the company's conference call this morning.
Johnson sees release of more information related to its customer and expects a change in distributor nomenclature within 30 days.
Walsh said that there will also be a ban on club openings within 90 days of a distributor joining.
Walsh noted that a planned debt offering was delayed due to the KPMG scandal and subsequent resignation. In terms of cash, Herbalife is looking for alternative options to finance buybacks, though the company has grown increasingly conservative on buybacks and its auditor search.
Finally, there is expected to be no material impact from "Build it Better" changes.
Johnson sees release of more information related to its customer and expects a change in distributor nomenclature within 30 days.
Walsh said that there will also be a ban on club openings within 90 days of a distributor joining.
Walsh noted that a planned debt offering was delayed due to the KPMG scandal and subsequent resignation. In terms of cash, Herbalife is looking for alternative options to finance buybacks, though the company has grown increasingly conservative on buybacks and its auditor search.
Finally, there is expected to be no material impact from "Build it Better" changes.