Herbalife Nutrition Reports Record-Breaking Quarterly Net Sales Results

·22-min read

Herbalife Nutrition Ltd. (NYSE: HLF) today reported financial results for the second quarter ended June 30, 2020.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20200806005935/en/

Herbalife Nutrition Second Quarter 2020 Earnings Infographic (Graphic: Business Wire)

"Our record results reflect the effort of our distributors. They worked hard to respond to increasing demand for quality nutrition products and to meet the needs of individuals seeking economic opportunity," said John Agwunobi, Chairman and CEO of Herbalife Nutrition.

HIGHLIGHTS

  • Second quarter 2020 reported net sales of $1.3 billion increased 8.6% compared to the second quarter of 2019.

  • Excluding the impact of foreign exchange rates, net sales increased 14.1% during the second quarter compared to 2019, excluding the impact from Venezuela.

  • The second quarter 2020 represents the largest quarterly reported net sales result in Company history.

  • Second quarter 2020 volume points of 1.7 billion, also a quarterly record for the Company, increased 12.4% compared to the second quarter 2019.

  • Second quarter 2020 reported diluted EPS of $0.82 and adjusted1 earnings of $0.95 per diluted share, compared to $0.54 per diluted share and $0.70 per adjusted2 diluted share, respectively, for the second quarter 2019, which were negatively impacted in 2020 by expenses of approximately $2.3 million, or $0.01 per diluted share, and in second quarter 2019 of $4.0 million, or $0.02 per diluted share, related to the China Growth and Impact Investment Program.

  • Given the continuing impact of COVID-19 on our business and the rapidly evolving landscape in response to these pandemic conditions, we are not providing guidance at this time.

_________________________________________

1 Adjusted diluted EPS is a non-GAAP measure and excludes the impact of: non-cash interest expense and amortization associated with the Company’s convertible notes, expenses related to regulatory inquiries and legal accruals, China grant income, contingent value rights revaluation, income related to finalization of insurance recoveries, debt issuance costs related to the senior secured credit facility amendment, and net expenses related to the COVID-19 pandemic. See Schedule A – "Reconciliation of Non-GAAP Financial Measures" for a detailed reconciliation of adjusted net income to net income calculated in accordance with GAAP and a reconciliation of adjusted diluted EPS to diluted EPS calculated in accordance with GAAP and a discussion of why we believe these non-GAAP measures are useful.

2 See Schedule A - "Reconciliation of Non-GAAP Financial Measures" for a reconciliation of adjusted diluted share count to reported diluted share count and a discussion of why the share count has been adjusted for purposes of calculating adjusted diluted EPS for the second quarter of 2019.

Second Quarter 2020 Key Metrics3

Regional Volume Points

Volume Points

Region

2Q '20 (mil)

Yr/Yr % Chg

North America

492.4

38.5

%

EMEA

406.7

20.9

%

Asia Pacific

352.7

(5.0

%)

Mexico

213.5

(3.7

%)

China

144.7

17.7

%

South and Central America

109.1

(10.8

%)

Worldwide Total

1,719.1

12.4

%

Regional Net Sales and Foreign Exchange ("FX") Impact

Region

Reported Net Sales

2Q’20 (mil)

Growth/Decline

including FX

vs. 2Q‘19

Growth/Decline

excluding FX

vs. 2Q ‘19

North America

$

386.0

38.7

%

38.8

%

EMEA

$

300.3

14.2

%

20.9

%

Asia Pacific

$

284.3

(5.1

%)

(2.1

%)

Mexico

$

96.4

(20.5

%)

(3.3

%)

China

$

209.5

12.0

%

16.4

%

South & Central America (a)

$

70.4

(22.7

%)

*

Worldwide Total

$

1,346.9

8.6

%

*

South & Central America excl. Venezuela (a)

$

70.1

(22.8

%)

(9.8

%)

Worldwide Total excl Venezuela (a)

$

1,346.6

8.6

%

14.1

%

(a) Venezuela has been generally impacted by significant price increases and erosion in foreign currency exchange rates. Venezuela represents less than 1% of the Company’s consolidated net sales. See Schedule A – "Reconciliation of Non-GAAP Financial Measures" for a discussion of why we believe adjusting for Venezuela is useful.

* Figure not meaningful due to significant foreign currency fluctuations in Venezuela and the price increases implemented as a result thereof that, when considered in isolation, have a disproportionately large impact on the Company’s South and Central American region and consolidated results. Amounts were 1.0% and 14.9% for South & Central America and Worldwide Total, respectively.

_________________________________________

3 Supplemental tables that include Average Active Sales Leader and additional business metrics can be found at http://ir.Herbalife.com.

Outlook

  • The extent and duration of business disruption and related financial impact from the COVID-19 pandemic cannot be reasonably estimated at this time but could materially impact our business, financial condition and consolidated results for the third quarter and full year 2020. The Company will periodically reassess its ability to provide guidance as and when we believe the impact of the pandemic can be reasonably estimated.

Earnings Conference Call

Herbalife Nutrition senior management will host an investor conference call to discuss its recent financial results and provide an update on current business trends on Thursday, August 6th, 2020, at 2:30 p.m. PT (5:30 p.m. ET).

The dial-in number for this conference call for domestic callers is (833) 962-1459, and (956) 394-3596 for international callers (conference ID: 8122178). Live audio of the conference call will be simultaneously webcast in the investor relations section of the Company's website at http://ir.Herbalife.com.

An audio replay will be available following the completion of the conference call in MP3 format or by dialing (855) 859-2056 for domestic callers or (404) 537-3406 for international callers (conference ID: 8122178). The webcast of the teleconference will be archived and available on Herbalife Nutrition's website.

About Herbalife Nutrition Ltd.

Herbalife Nutrition is a global company that has been changing people's lives with great nutrition products and a proven business opportunity for its independent distributors since 1980. The Company offers high-quality, science-backed products, sold in over 90 countries by entrepreneurial distributors who provide one-on-one coaching and a supportive community that inspires their customers to embrace a healthier, more active lifestyle. Through the Company’s global campaign to eradicate hunger, Herbalife Nutrition is also committed to bringing nutrition and education to communities around the world.

For more information, please visit IAmHerbalifeNutrition.com.

Herbalife Nutrition also encourages investors to visit its investor relations website at ir.herbalife.com as financial and other information is updated and new information is posted.

Forward-Looking Statements

This release contains "forward-looking statements" within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Although we believe that the expectations reflected in any of our forward-looking statements are reasonable, actual results could differ materially from those projected or assumed in any of our forward-looking statements. Our future financial condition and results of operations, as well as any forward-looking statements, are subject to change and to inherent risks and uncertainties, such as those disclosed or incorporated by reference in our filings with the Securities and Exchange Commission. Additionally, many of these risks and uncertainties are, and may continue to be, amplified by the COVID-19 pandemic. Important factors that could cause our actual results, performance and achievements, or industry results to differ materially from estimates or projections contained in our forward-looking statements include, among others, the following:

  • the potential impacts of the COVID-19 pandemic on us, our Members, and the world economy (including our customers and our supply chain);

  • our relationship with, and our ability to influence the actions of, our Members;

  • improper action by our employees or Members in violation of applicable law;

  • adverse publicity associated with our products or network marketing organization, including our ability to comfort the marketplace and regulators regarding our compliance with applicable laws;

  • changing consumer preferences and demands;

  • the competitive nature of our business;

  • regulatory matters governing our products, including potential governmental or regulatory actions concerning the safety or efficacy of our products and network marketing program, including the direct selling markets in which we operate;

  • legal challenges to our network marketing program;

  • the Consent Order entered into with the FTC, the effects thereof and any failure to comply therewith;

  • risks associated with operating internationally and the effect of economic factors, including foreign exchange, inflation, disruptions or conflicts with our third-party importers, pricing and currency devaluation risks, especially in countries such as Venezuela;

  • uncertainties relating to interpretation and enforcement of legislation in China governing direct selling and anti-pyramiding;

  • our inability to obtain or maintain the necessary licenses for our direct selling business in China and elsewhere;

  • adverse changes in the Chinese economy;

  • our dependence on increased penetration of existing markets;

  • any material disruption to our business caused by natural disasters, other catastrophic events, acts of war or terrorism, viral outbreaks and other similar epidemics or cybersecurity incidents;

  • noncompliance by us or our Members with any privacy laws or any security breach by us or a third party involving the misappropriation, loss, or other unauthorized use or disclosure of confidential information;

  • contractual limitations on our ability to expand our business;

  • our reliance on our information technology infrastructure and outside manufacturers;

  • the sufficiency of our trademarks and other intellectual property rights;

  • product concentration;

  • our reliance upon, or the loss or departure of any member of, our senior management team which could negatively impact our Member relations and operating results;

  • U.S. and foreign laws and regulations applicable to our operations;

  • uncertainties relating to the United Kingdom’s exit from the European Union;

  • restrictions imposed by covenants in our existing indebtedness;

  • risks related to the convertible notes;

  • uncertainties relating to the application of transfer pricing, duties, value added taxes, and other tax regulations, and changes thereto;

  • changes in tax laws, treaties or regulations, or their interpretation;

  • taxation relating to our Members;

  • product liability claims;

  • our incorporation under the laws of the Cayman Islands;

  • whether we will purchase any of our shares in the open markets or otherwise; and if so, the prices paid in connection with such acquisitions; and

  • 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.

Results of Operations

Herbalife Nutrition Ltd. and Subsidiaries

Condensed Consolidated Statements of Income

(In millions, except per share amounts)

Three Months Ended

Six Months Ended

6/30/2020

6/30/2019

6/30/2020

6/30/2019

(unaudited)

North America

$

386.0

$

278.3

$

663.7

$

534.8

EMEA

300.3

262.9

559.0

514.6

Asia Pacific

284.3

299.6

614.0

594.1

Mexico

96.4

121.2

211.3

240.5

China

209.5

187.0

399.4

337.4

South and Central America

70.4

91.1

161.9

190.9

Worldwide Net Sales

1,346.9

1,240.1

2,609.3

2,412.3

Cost of Sales

272.8

243.2

518.5

484.8

Gross Profit

1,074.1

996.9

2,090.8

1,927.5

Royalty Overrides

406.9

366.8

788.1

726.3

Selling, General, and Administrative Expenses

480.8

477.0

1,029.8

912.4

Other Operating Income (1)

(3.3

)

-

(12.4

)

(27.3

)

Operating Income

189.7

153.1

285.3

316.1

Interest Expense, net

28.8

36.3

53.8

72.4

Other Income, net (2)

-

(5.9

)

-

(14.4

)

Income Before Income Taxes

160.9

122.7

231.5

258.1

Income Taxes (3)

45.8

46.2

70.8

85.3

Net Income

$

115.1

$

76.5

$

160.7

$

172.8

Weighted-Average Shares Outstanding:

Basic

137.9

137.4

137.9

137.2

Diluted

140.1

142.4

140.1

144.2

Earnings Per Share:

Basic

$

0.84

$

0.56

$

1.17

$

1.26

Diluted

$

0.82

$

0.54

$

1.15

$

1.20

(1) Other Operating Income for the three and six months ended June 30, 2020 relates to certain China government grant income. Other Operating Income for the six months ended March 31, 2019 relates to certain China government grant income and income related to the finalization of insurance recoveries in connection with the flooding at one of the Company's warehouses in Mexico during September 2017.

(2) Other Income, net for the three and six months ended June 30, 2019 relates to the gain on revaluation of the Contingent Value Rights (CVR) issued in connection with the October 2017 modified Dutch auction tender offer.

(3) Includes the impact of (tax deficiencies) excess tax benefit recognized under ASU 2016-09 from share-based compensation arrangements of ($1.6) million and $0.4 million for the three months ended June 30, 2020 and 2019, respectively; and ($2.4) million and $2.8 million for the six months ended June 30, 2020 and 2019, respectively.

Herbalife Nutrition Ltd. and Subsidiaries

Condensed Consolidated Balance Sheets

(In millions)

June 30,

Dec 31,

2020

2019

ASSETS

Current Assets:

Cash and cash equivalents

$

1,740.0

$

839.4

Receivables, net

105.9

79.7

Inventories

421.8

436.2

Prepaid expenses and other current assets

140.2

132.9

Total Current Assets

2,407.9

1,488.2

Property, plant and equipment, net

366.0

371.5

Operating lease right-of-use assets

183.4

189.5

Marketing-related intangibles and other intangible assets, net

310.1

310.1

Goodwill

86.8

91.5

Other assets

213.2

227.8

Total Assets

$

3,567.4

$

2,678.6

LIABILITIES AND SHAREHOLDERS' DEFICIT

Current Liabilities:

Accounts payable

$

87.2

$

81.6

Royalty overrides

309.7

294.1

Current portion of long-term debt

23.0

24.1

Other current liabilities

683.1

564.6

Total Current Liabilities

1,103.0

964.4

Non-current liabilities:

Long-term debt, net of current portion

2,404.1

1,778.9

Non-current operating lease liabilities

168.1

169.9

Other non-current liabilities

157.0

155.4

Total Liabilities

3,832.2

3,068.6

Commitments and Contingencies

Shareholders' deficit:

Common shares

0.1

0.1

Paid-in capital in excess of par value

380.7

366.6

Accumulated other comprehensive loss

(246.1

)

(212.5

)

Accumulated deficit

(70.6

)

(215.3

)

Treasury stock

(328.9

)

(328.9

)

Total Shareholders' Deficit

(264.8

)

(390.0

)

Total Liabilities and Shareholders' Deficit

$

3,567.4

$

2,678.6

Herbalife Nutrition Ltd. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(In millions)

Six Months Ended

6/30/2020

6/30/2019

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income

$

160.7

$

172.8

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

49.9

49.0

Share-based compensation expenses

22.5

20.5

Non-cash interest expense

12.8

27.6

Deferred income taxes

9.7

3.9

Inventory write-downs

8.1

11.7

Foreign exchange transaction loss

7.1

5.0

Other

1.2

(11.8

)

Changes in operating assets and liabilities:

Receivables

(33.7

)

(29.0

)

Inventories

(19.4

)

(50.8

)

Prepaid expenses and other current assets

(18.4

)

14.6

Accounts payable

9.5

(0.3

)

Royalty overrides

29.5

(16.6

)

Other current liabilities

140.3

(81.3

)

Other

5.2

(0.5

)

NET CASH PROVIDED BY OPERATING ACTIVITIES

385.0

114.8

CASH FLOWS FROM INVESTING ACTIVITIES:

Purchases of property, plant and equipment

(49.6

)

(51.7

)

Other

0.2

-

NET CASH USED IN INVESTING ACTIVITIES

(49.4

)

(51.7

)

CASH FLOWS FROM FINANCING ACTIVITIES:

Borrowings from senior secured credit facility, net of discount

30.2

-

Principal payments on senior secured credit facility and other debt

(10.6

)

(10.2

)

Proceeds from senior notes

600.0

-

Debt issuance costs

(6.8

)

-

Share repurchases

(26.0

)

(9.0

)

Other

1.6

1.5

NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES

588.4

(17.7

)

EFFECT OF EXCHANGE RATE CHANGES ON CASH, CASH EQUIVALENTS, AND RESTRICTED CASH

(23.4

)

1.9

NET CHANGE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH

900.6

47.3

CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF PERIOD

847.5

1,215.0

CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD

$

1,748.1

$

1,262.3

Supplemental Information

SCHEDULE A: RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(Unaudited and unreviewed), (All tables provide Dollars in millions, except per Share Data)

In addition to its reported results and guidance calculated in accordance with GAAP, the Company has included in this release adjusted net income and adjusted diluted EPS, performance measures that the Securities and Exchange Commission defines as "non-GAAP financial measures." Management believes that such non-GAAP financial measures, when read in conjunction with the Company’s reported or forecasted results, in each case calculated in accordance with GAAP, can provide useful supplemental information for investors because they facilitate a period to period comparative assessment of the Company’s operating performance relative to its performance based on reported or forecasted results under GAAP, while isolating the effects of some items that vary from period to period without any correlation to core operating performance and eliminate certain charges that management believes do not reflect the Company’s operations and underlying operational performance. The Company’s definition of adjusted net income and adjusted diluted earnings per share may not be comparable to similarly titled measures used by other companies because other companies may not calculate them in the same manner as the Company does and should not be viewed in isolation from nor as alternatives to net income or diluted EPS calculated in accordance with GAAP.

The impact of foreign currency fluctuations in Venezuela and the price increases the Company implements as a result of the highly inflationary economy in that market can each, when considered in isolation, have a disproportionately large impact to the Company’s consolidated results despite the offsetting nature of these drivers and that net sales in Venezuela, which represent less than 1% of the Company’s consolidated net sales, are not material to our consolidated results. Therefore, in certain instances, the Company believes it is helpful to provide additional information with respect to these factors as reported and excluding the impact of Venezuela to illustrate the disproportionate nature of Venezuela’s individual pricing and foreign exchange impact to the Company’s consolidated results. However, excluding the impact of Venezuela from these measures is not in accordance with U.S. GAAP and should not be considered in isolation or as an alternative to the presentation and discussion thereof calculated in accordance with U.S. GAAP.

The following is a reconciliation of net income, presented and reported in accordance with U.S. generally accepted accounting principles, to net income adjusted for certain items:

Three Months Ended

Six Months Ended

6/30/2020

6/30/2019

6/30/2020

6/30/2019

(in millions)

Net income, as reported

$

115.1

$

76.5

$

160.7

$

172.8

Expenses related to regulatory inquiries and legal accruals (1) (2) (3)

0.8

17.7

85.3

32.2

Non-cash interest expense and amortization of non-cash issuance costs (1) (2) (4)

5.5

12.0

10.7

24.3

China grant income (1) (2)

(3.3

)

-

(12.4

)

(21.3

)

Contingent Value Rights revaluation (1) (2)

-

(5.9

)

-

(14.4

)

Income related to finalization of insurance recoveries (1) (2) (5)

-

-

-

(6.0

)

Debt issuance costs related to the senior secured credit facility amendment (1) (2) (6)

-

-

0.5

-

Net expenses related to COVID-19 pandemic (1) (2)

6.1

-

11.9

-

Income tax adjustments for above items (1) (2)

9.2

(2.1

)

(6.9

)

4.0

Net income, as adjusted (7)

$

133.5

$

98.2

$

249.8

$

191.6

The following table is a reconciliation of diluted shares outstanding, as presented and reported in accordance with GAAP, to adjusted diluted shares outstanding, adjusted to include the impact of outstanding capped call transactions in 2019. The Company's outstanding capped call transactions were anti-dilutive and not included in GAAP earnings per share for 2019 because they were intended to mitigate the dilutive effect of the Company's convertible notes due 2019, if the trading price of the Company's stock exceeded the conversion price, up to a certain level. Therefore, the Company has adjusted the diluted shares outstanding to include the impact of the capped calls, based on the average share price for the period that the capped calls were anti-dilutive.

Three Months Ended

Six Months Ended

6/30/2020

6/30/2019

6/30/2020

6/30/2019

(in millions)

Diluted shares outstanding, as reported

140.1

142.4

140.1

144.2

Impact of capped call transactions

-

(1.4

)

-

(2.8

)

Diluted shares outstanding, as adjusted

140.1

141.0

140.1

141.4

The following is a reconciliation of diluted earnings per share, presented and reported in accordance with U.S. generally accepted accounting principles, to diluted earnings per share adjusted for certain items.

Three Months Ended

Six Months Ended

6/30/2020

6/30/2019

6/30/2020

6/30/2019

(per share)

Diluted earnings per share, as reported

$

0.82

$

0.54

$

1.15

$

1.20

Impact of adjusted shares outstanding

-

-

-

0.02

Diluted earnings per share using adjusted diluted shares outstanding

$

0.82

$

0.54

$

1.15

$

1.22

Expenses related to regulatory inquiries and legal accruals (1) (2) (3)

0.01

0.13

0.61

0.23

Non-cash interest expense and amortization of non-cash issuance costs (1) (2) (4)

0.04

0.09

0.08

0.17

China grant income (1) (2)

(0.02

)

-

(0.09

)

(0.15

)

Contingent Value Rights revaluation (1) (2)

-

(0.04

)

-

(0.10

)

Income related to finalization of insurance recoveries (1) (2) (5)

-

-

-

(0.04

)

Debt issuance costs related to the senior secured credit facility amendment (1) (2) (6)

-

-

-

-

Net expenses related to COVID-19 pandemic (1) (2)

0.04

-

0.08

-

Income tax adjustments for above items (1) (2)

0.07

(0.01

)

(0.05

)

0.03

Adjusted diluted earnings per adjusted share (7)

$

0.95

$

0.70

$

1.78

$

1.36

(1) Based on interim income tax reporting rules, these expenses are not considered discrete items. As a result, the Company's full year effective tax rate is impacted by these items. When applying the full year effective tax rate to year-to-date income, the Company's year-to-date tax provision recorded with respect to these non-GAAP adjustments is different from the forecasted full-year tax provision impact of these items. As a consequence, adjustments to the year-to-date and quarterly tax impacts will be recorded as the adjusted full year effective tax rate is applied to income in subsequent periods. Additionally, adjustments to items unrelated to these non-GAAP adjustments may have an effect on the income tax impact of these non-GAAP adjustments in subsequent periods. The Company plans to update the income tax impact of these items in subsequent interim reporting periods.

(2) Excludes tax (benefit)/expense as follows:

Three Months Ended

Six Months Ended

6/30/2020

6/30/2019

6/30/2020

6/30/2019

(in millions)

Expenses related to regulatory inquiries and legal accruals

8.1

$

(1.2

)

(9.0

)

(4.5

)

Non-cash interest expense and amortization of non-cash issuance costs

0.5

0.2

0.6

(0.6

)

China grant income

1.0

(0.2

)

3.3

6.4

Contingent Value Rights revaluation

-

(0.3

)

-

1.8

Income related to finalization of insurance recoveries

-

(0.6

)

-

0.9

Debt issuance costs related to the senior secured credit facility amendment

-

-

(0.1

)

-

Net expenses related to COVID-19 pandemic

(0.4

)

-

(1.7

)

-

Total income tax adjustments

$

9.2

$

(2.1

)

$

(6.9

)

$

4.0

Three Months Ended

Six Months Ended

6/30/2020

6/30/2019

6/30/2020

6/30/2019

(per share)

Expenses related to regulatory inquiries and legal accruals

0.06

(0.01

)

(0.06

)

(0.03

)

Non-cash interest expense and amortization of non-cash issuance costs

-

-

-

-

China grant income

0.01

-

0.02

0.05

Contingent Value Rights revaluation

-

-

-

0.01

Income related to finalization of insurance recoveries

-

-

-

0.01

Debt issuance costs related to the senior secured credit facility amendment

-

-

-

-

Net expenses related to COVID-19 pandemic

-

-

(0.01

)

-

Total income tax adjustments (7)

$

0.07

$

(0.01

)

$

(0.05

)

$

0.03

(3) Includes legal accrual recorded during the six months ended June 30, 2020 of $83.0 million relating to the SEC and DOJ investigations on the FCPA matter in China, and legal accrual recorded during the six months ended June 30, 2019 of $19.0 million relating to the SEC investigation on our disclosures regarding our marketing plan in China, as described in the Company's Form 10-Q for the quarter ended June 30, 2020.

(4) Relates to non-cash expense on the Company's 2.00% convertible senior notes due 2019 and the related prepaid forward share repurchase contracts and the 2.625% convertible senior notes due 2024.

(5) Relates to the finalization of insurance recoveries in connection with the flooding at one of the Company's warehouses in Mexico during September 2017, which damaged certain of the Company's inventory stored within the warehouse.

(6) Relates to costs incurred in the amendment of the senior secured credit facility which, among other things, extended the maturity, increased borrowings and reduced interest rate of both Term Loan A and 2018 Revolving Credit Facility. There is no per share amount due to rounding.

(7) Amounts may not total due to rounding.

View source version on businesswire.com: https://www.businesswire.com/news/home/20200806005935/en/

Contacts

Media Contact:
Jennifer Butler
VP, Media Relations
213.745.0420

Investor Contact:
Eric Monroe
Director, Investor Relations
213.745.0449