Good morning and thank you for joining the first quarter 2013 Earnings Conference Call for Herbalife Limited. On the call today is Michael Johnson, the Company’s Chairman and CEO; the Company’s President, Des Walsh; John DeSimone, the Company’s CFO; and Brett Chapman, the Company’s General Counsel. I would now like to turn the call over to Brett Chapman to read the Company’s Safe Harbor language.

Before we begin, as a reminder during this conference call, comments may be made that include some forward-looking statements. These statements involve risk and uncertainty, and as you know, actual results may differ materially from those discussed or anticipated. We encourage you to refer to yesterday’s earnings release, and our SEC filings for a complete discussion of risks associated with these forward-looking statements and our business. In addition, during this call certain financial performance measures may be discussed that differ from comparable measures contained in our financial statements prepared in accordance with U.S. Generally Accepted Accounting Principles, referred to by the Securities and Exchange Commission as non-GAAP financial measures. We believe these non-GAAP financial measures assist management and investors in evaluating and comparing period-to-period results of operations in a more meaningful and consistent manner. Please refer to the Investor Relations section of our website herbalife.com to find our press release for this quarter, which contains a reconciliation of these measures. Additionally, when management makes reference to volume during this conference call, they are referring to volume points. I'll now turn the call over to Michael.

Thanks, Brett, and good morning, everyone and welcome to our first quarter 2013 earnings call. As reported in our press release and our 10-Q last night we once again achieved record performance, our year-over-year net sales increased 17% to $1.1 billion, our adjusted EBITDA increased 24% of $215 million which is based on our adjusted operating margin expanding 120 basis points to 17.2%. Our adjusted EPS increased 44% to a $1.27. We generated a $112 million in free cash flow. We continue to return capital to our shareholders. We’ve repurchased approximately 4 million shares and our Board recently approved a $0.30 per share quarterly dividend. The strong performance we achieved in 2012 created momentum that carried into 2013 and resulted in a broad-based strength across to all our regions for our first quarter performance. The key driver of our business, volume points, grew 13% year-over-year. In fact, we experienced volume point growth in each of our six regions. South and Central America grew 33%, Asia Pacific grew 17%, China 15%, EMEA grew 11%, Mexico is up 8%, and North America was also up 4%. I want to thank all the members of the Herbalife family, our more than 6,000 employees, who strive to build it better each and every day, our hundreds of thousands of active sales leaders, whose entrepreneurial spirit and commitment drive our performance and our millions of customers around the world, who every day use our products to improve their nutrition and health and who are ultimately responsible for our exceptional global growth. Our guidance for the balance of the year which John will discuss in a few minutes, reflects our confidence that we will continue to experience strong business trends, and that 2013 will be another year of record financial performance. Driving the volume point growth…

Thank you, Michael. As you just heard, we had another record quarter, our 12th consecutive quarter of double-digit volume point growth, our seventh consecutive quarter of more than $1 billion volume points and 13% higher than last year’s first quarter results. We continue to be very pleased with the momentum we’re seeing in the underlying trends in our business as four, six regions posted strong double-digit volume point growth. Our distributors around the world continue to drive growth in their businesses through the consistent execution on daily consumption business methods. There is an abundance of customers in the 88 countries around the world where Herbalife distributors operate. Everyday engaged distributors introduce the Herbalife product portfolio to new customers as higher obesity rates continue to effect communities. In the U.S. as in many markets, obesity rates continue to rise and by a way of example, more than three out of four Hispanics, aged 20 and over are obese. Obesity is a key public healthy issue for many markets and our distributors are dedicated to combating the growing obesity epidemic by supporting their customers with Herbalife products and encouragement to pursue a healthier active lifestyle. Now, let me provide regional highlights and color on some key regions. Consistent with our worldwide record performance, the North American region, our oldest and most established region had another record quarter and posted 5% net sales and local currency net sales growth and almost 4% growth in volume points, each compared to the prior year period. Although new distributors decreased 3.5% in the quarter, average sales leaders with volume points increased 9% in the North American region, compared to last year’s first quarter results. Within the North American region, the U.S. also had another record quarter with net sales growth of 6% and volume point growth…

Thank you, Des. I’ll begin by reviewing our financial results and comparing them to both the first quarter of last year and to the guidance for this quarter that was given in February. I’ll then comment on the initial guidance we provided yesterday for the second quarter as well as the updated guidance we provided for full year 2013. I will then discuss the process the audit committee is conducting to select new orders and provide some comments regarding the filing of yesterday’s 10-Q. I will then conclude with an update on our share repurchase program, including our repurchase outlook given KPMG’s obligation to withdraw its previous opinions on our financial statements. With regard to our financial results, yesterday, we reported first quarter net sales of $1.1 billion, an increase of 16.5% as compared to the first quarter of 2012. Local currency net sales for the period actually increased by 18.1%, but this was partially offset by an unfavorable FX impact of 1.6%. As Des has already reviewed in detail, our volume and net sales results by region and key country, I’ll now discuss our margins. Our gross profit margin for the first quarter improved by approximately 20 basis points, as compared to the first quarter 2012. Savings on our seed to feed strategy and price increases benefitted gross margin in the quarter, partially offset by the unfavorable impact of currency rates and higher inventory write-downs. Before moving to operating margin, please note that our reported first quarter results included approximately $24.6 million of unusual expenses that we consider to be outside the range of normal operations. We have therefore excluded these expenses from our adjusted first quarter results. These expenses include $15.1 million or $0.10 per share from the impact of the Venezuelan currency devaluation, and $9.5 million or…

(Operator Instructions). Your first question is from Tim Ramey of D.A. Davidson. Tim Ramey – D.A. Davidson: Good morning and thanks a lot.

Good morning. Tim Ramey – D.A. Davidson: John, obviously your very last comment there was extremely interesting, the idea of a large leveraged repurchase. I understand you probably can’t say a lot more than you just did, but it is – if there were other sources of financing available to you than your current bank group, might that idea revive? Do you think that you won’t have that sorted out, until you have the complete audit filed for the three years in question? Can you give us a little more color on that?

Sure. As you know management and the Board of Directors, our Board have historically been committed to returning money to its shareholders through the buyback. We still believe that’s a very effective way to return value to our shareholders. We were going down a path, that path is now been blocked because of the KPMG issues, but I do think there are other financing options, we will explore those, there is no commitment at this time we would be in the early stages of even reviewing the options available, but as always we will look for ways to drive shareholder value and if appropriate we may do something. Tim Ramey – D.A. Davidson: That’s terrific. Thanks so much.

The next question is from Michael Swartz of Suntrust.

Good morning Michael. Michael Swartz – SunTrust Robinson Humphrey: You guys had touched upon this early in the call, but could you maybe give us some more color on the lower price to IBPs in Central and South America and maybe some more granularity of what you are seeing there and your plans to roll that out in other markets?

Yeah, hi, Michael. So, Michael what we did in South America was we actually tried to test the concept of a IBP pricing which was related to income levels in the country, because what we realized is that the cost of a 50 of these seller IBP is very modest, but a comparable cost in certain markets in South America might be large or relative to income levels. And so, we tried to take an objective standard which resulted in the IBP pricing certain markets reducing by as much as 30% or 40%. What was really interesting to us was we anticipate that this result in a significant number of incremental people electing to take a look at Herbalife, what we are very pleased to see though was that because of the tremendous distributor infrastructure for training and mentoring new distributors that the activity rates of those new distributors was very high. And so, that gave us encouragement that this test was something that we should continue, because effectively the, although we had an expanded group of distributors coming into the business we have similar productivity. So, we expanded the test we’re continuing it for further 12 months and at end of that period then we’ll make a decisions where this is something that we should evaluate for rollout in other markets. Michael Swartz – SunTrust Robinson Humphrey: Okay, but no kind of timeline or no near-term plan to roll that out in other markets.

Not at this time Michael because again what we want to identify is the success factors because it’s not just about a lower priced IBP, it’s about bringing more people into the business and having that infrastructure in place to support success. Michael Swartz – SunTrust Robinson Humphrey: Okay, great. Thanks Des. And then John just on the guidance, some of the commentary around share buybacks, is your guidance still kind of incorporate the $50 million in quarterly buy backs?

Not in the second quarter, but it does in the third and fourth quarter. Michael Swartz – SunTrust Robinson Humphrey: Okay. Okay, great thanks.

Your next question is from [Sandy Chin] [ph] of Visium Asset Management.

I have question for John and question a Des. John can you just clarify, did you say that you guys have done a meaningful tender of the stock as on the KPMG incident that hadn’t happened and halted these plans. So can we assume that if you do announce some new order that you can resume the plans to tender or do some sort of buyback?

To be clear what I said is we’re in the process of putting together a meaningful new debt arrangement that if completed would have been used to buy back stock the word tender was not used in the format for which we would have repurchased the stock was not yet defined. But again management believes in the financial statements as they were issued, we believe in the future of the company and we think a buyback is a good opportunity of returning value to shareholders in the long term.

Okay. Can you clarify that $0.07 FX, is that for the quarter or what’s your FX assumption for 2013?

So the $0.07 was the negative currency impact for the balance of the year compared to the prior guidance we gave in February. On a year-over-year basis 2013 versus 2012 this actually a $0.19 headwind so the $4.80 would have been $0.19 higher had the currency assumptions been the same. Venezuela is the biggest piece of that.

So if that changes then you could go back to maybe $5, or 4.99?

Venezuela won’t change.

That won’t change, okay. Helpful and then Des I have a quick question, there has been a lot of concern that Herbalife’s U.S. business is deteriorating essentially because - do you think that there is any credence from this impact of the U.S. business from adverse media and a lot of press; do you seen anything with your distributors what they are saying or seeing, I know North American volumes were up 4% in the quarter, is that an appropriate run rate for the second quarter or even looking out to 2013, I know you said that April is better than the first quarter but can you just give us any update on how April is looking in the back double-digits or what you are seeing?

Yeah, certainly Sandy we’re happy to do so.

Thank you.

So firstly Sandy we believe that the noise out there is not having any material effects in our business. Our distributors are totally focused on the business and what really matters Sandy is let’s not just look solely at volume points, let’s look at the underlying trends in the business. What we saw in the first quarter is approximately 70,000 new distributors joined Herbalife in the United States the fourth largest increase in Herablife U.S. history the percentage of supervisor activity rate was up 9% the adoption of the 5K program now you know hitting 39% in the U.S. which clearly a long-term indicator of committed stability and then 18 of our top 25 metro US market posted growth. So those are the important underlying trends all of them very strong – all of them all growing very well for the future. And then just reverting to volume points, obviously what we had with successive growth during the quarter March was the highest volume point month ever in the U.S. April even stronger. So we are frankly very confident about the strength of our U.S. business and the success that lies ahead, and hope we believe is it in successive quarters we’re going to see a higher volume points in the U.S. and then in the first quarter.

Thank you, helpful.

Sure.

Your next question is from John San Marco of Janney Capital. John San Marco – Janney Capital: Thank you, guys. Did the liberalization of the return policy – did that have any impact on sales in the U.S. or, you know, the same question for Mexico?

No material impact or of any kind, John. John San Marco – Janney Capital: Okay. In both countries?

Both countries. John San Marco – Janney Capital: I guess then just thinking more broadly about all the policy changes you’ve made over the past year, are there any that you expect to have material impact or you’re pretty comfortable that all of them will just sort of, you’ll smooth right over them with business strength?

We believe that, John, for this reason, if you look at the changes that are happening today, the reason we called it Building it Better, is because they are intended to build it better. This is a program that we actually began 12 or 18 months ago, and you look at the various – as the nomenclature project we believe, will have significant impact, in terms of making it [clear] [ph], the categorization within, what today we call distributors in relation to even the first order limitation. Far from slowing down the business we’ve actually helped - this has helped build a stronger base. So all of these changes individually, clearly represent change and obviously we have to work with our distributor leadership to manage that change, so that it doesn’t become a distraction, but certainly we believe that all of these changes will actually contribute to the strong foundation and future growth. John San Marco – Janney Capital: Great, thanks. And then just one more on the specific change around the lead generation rules, is that – I guess per clarity, is that a global rule or U.S.-only?

That will be a global rule, but from a practical perspective, Internet leads are not a significant factor in many of our other regions. It’s then predominantly a U.S. issue. And even with then, within the U.S., John, the important thing and there has been, again some misperceptions around there. So, the volume of business that is done in, traditionally in the lead area has been immaterial in the context of our overall business. Secondly, for many years now, our (inaudible) have been transitioning away from the intellect lead business to business that is more focused on daily consumption. They have been very successful in doing so and that’s how we believe that the remaining very small group of distributors that are using leads will be very successful in transition just as other had before them. John San Marco – Janney Capital: Great, thank you.

Sure.

Your next question from (inaudible).

Good morning and thank you for taking my question. You mentioned that 77% of your distributors have not sponsored another distributor this year. I was hoping you could clarify where this statistic is coming from and then how it reconciles with some of your comments back in January that 90% of the distributors were buying just for self consumption. I know you’ve clarified this several times, but I’m just hoping there is an easy explanation for the [disconnect].

Yeah. I think some of those statistics are getting confused. The 90% statistic presented in January was that 90% of the consumers in the U.S. that we surveyed were not distributors. So that is on the survey side, so that’s from bottoms up. Top down within those that do sign off that are in the network, 73% join primarily for the discount on personal consumption and close to 80% never sponsor anybody which is a pretty consistent metric with a fact that 73% join primarily for the discount on self consumption.

Okay. And then just one quick other question, there have been some issues with your Chairman’s Club website recently, it’s down again this morning, but yesterday at no longer showed two Chairman’s Club distributors, I was wondering, if you could clarify whether these two distributors are still with Herbalife and if not what percentage of revenues they represented?

So, John, let me see if I can just kill out one stone dead, because this is so typical of how these rumors begin right, so on a regular basis, we’re actually updating videos, we’re constantly involved in maintenance of various kind, and so what you’re seeing is such a reflection of that, in relation to the issue of speculation about distributors leaving, let me just say that the nature of our business is that if the distributors were to leave by definition they want to communicate with their entire downline organization, because their goal would be perhaps transition throughout the company and bring that through with them, so nobody needs to sort of speculate on base of looking at websites and looking at us through other companies leaving, because believe me whether, if somebody does leave the first thing they want to do is send out a mass communication to all other people to say, hey, I’m going you want to come with me. So let me also say that we have no changes in our Chairman’s Club members, our Chairman’s Club members are committed to the business, committed to working with their organizations into stronger Herbalife.

That’s great, I appreciate it, guys.

Thank you.

And your final question from Scott Van Winkle with Canaccord Genuity. Scott Van Winkle – Canaccord Genuity: John, there is over $700 million in cash carried in the balance sheet at quarter end, why would that cash to run down or I should say the debts were all down to put that cash in the balance at quarter end?

Yeah, I think there’s only a component of that was the drawn down piece, there was about $365 million that was in the U.S., and normally we paid down a revolver with that but given the circumstances of the opportunities that we have to buyback stock at various points in time there were event driven opportunities that are not with company event driven but more from our attractors that we want to be in a position to react quickly so we drew down $0.5 million in January and we have used $162 million of that repurchase stock and the rest is sitting on the balance sheet with flexibility to execute a buyback as we see fit. Scott Van Winkle – Canaccord Genuity: Great, thanks. And then, there are follow-up in the Sandy’s question about the U.S. in April, was there anything specific that kind of cause the business to accelerate the last couple months or maybe just a little bit traction in January and February?

I’m not so sure that it’s a distraction is simply a transition, so what you’ve got obviously is you’ve got first of all, you’ve got a very high comps, so first quarter of 2012 we had a 23% increase so that comp obviously a very difficult comp, the comp get easier as we go into the second and in third quarter and then I think it’s also the natural momentum of the business, we had our summit in Paris which was attended by our top leadership obviously a very motivating inspiring event where we shared our stories of success and so, typically, we see distributor come back and went like this and just get reengaged, reenergized and so on. So, but again I think the important thing is just focus on the underlying trends of the business which was strong and healthy and that’s what gives us confidence regarding the future coupled with that accelerating momentum in March and April. Scott Van Winkle – Canaccord Genuity: Great, and then one last one. On the North Carolina facility what should we expect when that open, does it bring any different capability, does it kind of accelerate may be some margin pickup, is it any, is it radically different from the facility in Southern California?

From a manufacturing prospect standpoint, it’s very similar capabilities to what we have in Southern California, it got a slowly different design from a capacity standpoint, it got a lot of ability to large runs and small runs where in Southern California its mostly large runs, but similar to Southern California will be powders and liquids When we get that up in running which would be the middle of next year, we expect a ramp up to be a little quicker than it was in Southern California. The transition of products from co-packers to that facility has been negotiated with the co-packers, so they onboard with it contractually, so we’ll have the support. And then as we get closer to the execution of the first running that facility will be an update on the profile of the financials. Thank you.

Okay, I just want to, this is Michael, I want to thank you everyone for being with us today and especially congratulations everybody on team Herbalife. We had another great quarter. And the realization of this is the underlying catalyst for a successful track record. Frankly then the emergence of the public health issues, which are sad, but they are associated with obesity. And here in the US and around the world, we’re seeing the obesity epidemic just getting out of control. What that means for us is more customers and better product brings more results for people and our record finance performance, its broad, it’s across all six of our regions. We expect to report additional performance record as we progressed through the year. You heard John and Des and myself talk about that today. Our nutrition product results drive confidence in our brand and confidence in our product, gives our product an incredibly permanent place amongst other nutrition products. We are truly a nutrition company of great level. We are a company that will always take the high road. We will operate with integrity everyday. We’ll provide transparency to our business. We’ll make changes that are necessary to help to improve our business, our brand and our image. We are confident and we are extremely confident that our products drive results that our business model creates opportunity. Our brand is growing and our image is improving. We will continue to work to build Herbalife better every single day to raise the awareness of all the things that are great about our company. So again thanks to all our supporters for your confidence and seeing what we see, and we look forward to speaking with you all next quarter.

Thank you. This concludes today’s conference. You may now disconnect.