® THE CELLULAR NUTRITION COMPANY and and and a state 177 al i 20 t 7 4,28 23 Key | --- | --- | --- | |-------------------------------------------------------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Management will make forward-looking statements | | | | during this presentation. Actual results could differ | | | | from those projected in such forward-looking | | | | --- | --- | --- | |----------------------------------------------------------------------------------------- ...

USANA Health Sciences Inc. (NYSE:USNA) Q1 2020 Earnings Conference Call April 22, 2020 11:00 AM ET Company Participants Patrique Richards - Investor Relations Jim Brown - President Doug Hekking - Chief Financial Officer Conference Call Participants Steph Wissink - Jefferies Doug Lane - Lane Research Ivan Feinseth - Tigress Financial Partners Operator Good day and welcome to the USANA Health SciencesÂ' First Quarter Conference Call. TodayÂ's conference is being recorded. And at this time, I would like to tur ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _______________________________ FORM 10-K (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) Utah 87-0500306 3838 West Parkway Blvd., Salt Lake City, Utah 84120 (Address of principal executive offices, Zip Code) (Mark One) x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscalyear ended December 28, 2019 or ¨ TRANSITION REPO ...

USANA Health Sciences, Inc. (NYSE:USNA) Q4 2019 Earnings Conference Call February 5, 2020 11:00 AM ET Company Participants Patrique Richards - Executive Director of Investor Relations & Business Development Kevin Guest - Chief Executive Officer Doug Hekking - Chief Financial Officer Conference Call Participants Doug Lane - Lane Research Operator Good day and welcome to the USANA Health Sciences Fourth Quarter Conference Call. Today's conference is being recorded. At this time, I would like to turn the confe ...

USANA Health Sciences, Inc. (NYSE:USNA) Q3 2019 Earnings Conference Call October 23, 2019 11:00 AM ET Company Participants Patrique Richards - Executive Director, IR and Business Development Kevin Guest - CEO Doug Hekking - CFO Joshua Foukas - Chief Legal Officer and Corporate Secretary Conference Call Participants Douglas Lane - Lane Research Stephanie Wissink - Jefferies Frank Camma - Sidoti & Company, LLC Ivan Feinseth - Tigress Financial Partners Operator Good day and welcome to the USANA Health Science ...

Financial Data and Key Metrics Changes - The company reported a challenging market environment in China during Q2 2019, with lower-than-expected contributions from promotions and incentives [7][8] - The U.S. market was roughly flat from Q1 to Q2, indicating a lack of significant growth [19] Business Line Data and Key Metrics Changes - Promotions in China, which historically generated meaningful sales growth, had a significantly lower impact this quarter due to ongoing consumer sentiment issues [8][10] - The company plans to introduce new products and promotions in the second half of 2019 to stimulate growth across various markets [12][13] Market Data and Key Metrics Changes - The Americas and Europe experienced broad-based weakness, with local currency revenues down double digits this year [35] - Korea showed strong performance with a 30% increase in sales during the quarter, indicating a successful market strategy that may be replicated in other regions [42] Company Strategy and Development Direction - The company remains committed to long-term growth in China despite current challenges, with plans to enhance promotional activities and introduce new products [10][15] - Adjustments to the compensation plan have been made to better align with market conditions and consumer behavior [39] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the ongoing hesitancy in the consumer base in China due to negative media coverage affecting the health products and direct selling industry [29][30] - The company is optimistic about future growth potential, particularly in Korea, where a younger demographic is showing strong engagement [43] Other Important Information - The company is preparing for its Annual International Convention, where new incentives and products will be introduced [14] - Management emphasized the importance of maintaining a conservative approach to product claims and focusing on scientific evidence to counter negative press [56][62] Q&A Session Summary Question: Broader weakness in markets - Management noted that the weakness was more broad-based than anticipated, with specific challenges in Southeast Asia, the Americas, and Europe [18] Question: Share repurchase guidance - Management confirmed that no share repurchase activity had occurred yet, but the inclusion in the S&P 600 small cap index has increased trading volumes [21][23] Question: Promotions in China - Promotions that worked in the past did not yield the same results this time due to consumer hesitancy linked to media scrutiny [28][30] Question: Non-China market performance - Management indicated that the direct selling industry is facing headwinds, and changes in consumer interaction with companies are impacting sales [36][38] Question: CapEx expectations - The company plans for a significant increase in CapEx this year, primarily driven by food processing initiatives [41] Question: Product portfolio requests - Management acknowledged receiving various requests for new products but emphasized the need to be cautious and not pursue every trend [64][66]

Financial Data and Key Metrics Changes - The final first quarter results were in line with preliminary results, indicating a stable financial performance despite challenges [6][4] - The company experienced a significant impact on sales performance due to a lack of promotional activity during the quarter, which was a miscalculation [6][7] Business Line Data and Key Metrics Changes - The introduction of new products, including a fluoride-free whitening toothpaste and an oral probiotic tablet, is expected to enhance sales momentum [9][10] - The company plans to ramp up promotional activities in the second quarter to drive sales growth [6][11] Market Data and Key Metrics Changes - The Chinese market faced challenges due to government reviews affecting health nutritional supplements, which represent a significant portion of sales [16][30] - The Americas and Europe markets continue to show negative trends, but there are signs of improvement in Europe [20][19] Company Strategy and Development Direction - The company is focusing on expanding its product categories beyond nutritional supplements to attract new customers [26] - There is a commitment to enhancing digital presence and social selling strategies, particularly in the Chinese market [18][28] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about regaining momentum in the Chinese market following the conclusion of the 100-day review [30][31] - The company remains confident in its growth initiatives for 2019, expecting year-over-year growth in customers, net sales, and earnings [12] Other Important Information - The company held a successful Asia Pacific Convention in Singapore, showcasing new products that were well received [8][9] - Management is taking a cautious approach to promotional activities in China, aligning with government regulations [11][30] Q&A Session Summary Question: What occurred in China regarding sales performance? - Management acknowledged that government issues significantly impacted sales, particularly in health nutritional supplements, and recognized the need for increased promotional activities [16][6] Question: Will there be an increase in online presence in the second quarter? - Management confirmed that they are enhancing their digital offerings, particularly on platforms like WeChat, while proceeding cautiously [18] Question: What is the outlook for the Americas and Europe markets? - Management noted that Europe is showing positive signs, while the Americas continue to face challenges, but new initiatives are expected to help [20][19] Question: What are the areas of focus for new product activity this year? - Management indicated a strategic direction to expand product categories beyond nutritional supplements to attract a wider customer base [26] Question: How has press coverage changed since the 100-day review? - Management reported a significant decrease in negative press coverage, which is expected to boost confidence among the sales force [31] Question: What were the government's findings during the 100-day review? - The government focused on healthcare products, including nutritional supplements, and emphasized the importance of market stability and consumer protection [35]

Use these links to rapidly review the document TABLE OF CONTENTS Item 9B. Other Information Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ý ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 29, 2018 or o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 001-35024 USANA HEALTH SCIENCES, INC. (Exact name of registr ...

Financial Data and Key Metrics Changes - For the full year of 2018, net sales grew by 13.6%, marking the 16th consecutive year of record sales [10] - The operating margin for the fourth quarter was above 16%, exceeding the target range of 14.5% to 15% [9] - The active customer base increased by 9% year-over-year [10] Business Line Data and Key Metrics Changes - Nearly all markets worldwide experienced local currency sales growth, with four markets growing by more than 20% and five additional markets growing by more than 10% [8] - The company launched a new Celavive skincare line and opened four new European markets during the year [11] Market Data and Key Metrics Changes - The company noted that the strengthening of the U.S. dollar impacted results, yet local currency sales growth was strong across most markets [8] - In China, the perception of USANA as an American brand is seen as a strength, despite local manufacturing [43] Company Strategy and Development Direction - In 2019, the company plans to enhance customer experience globally and introduce a new healthy living product category [12][13] - The strategy includes targeting different customer demographics within existing markets and offering trial initiatives and incentives [15][16] - The company is focusing on vertical integration by bringing some food products in-house to improve supply chain control [35] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2019, expecting another record year in revenue, earnings, and active customers [16] - There is an acknowledgment of changes in the direct sales environment and the need for a longer-term view on the impact of new initiatives [22][23] - The company is actively listening to customer feedback and conducting external research to guide product expansion [54] Other Important Information - The company plans to invest significantly in technology enhancements to improve customer shopping and sharing experiences [14] - Capital expenditures for 2019 are projected to be around $32 million, a significant increase from $11.5 million in 2018 [33] Q&A Session Summary Question: Follow-up on EBIT guidance and expected sales growth - Management indicated that investments in initiatives would be made throughout the year, with returns expected over time rather than immediately [20][22] Question: Timing of new healthy living product launches - A couple of products will be launched at the Asia Pacific convention in April, with a full launch planned for the third quarter [31] Question: Consumer perception of USANA in China - USANA is viewed as a strong American brand in China, which is beneficial despite local manufacturing [43] Question: Reorder rates for personal care products - Reorder rates are similar to other products, but the usage cycle is more sporadic than anticipated [45] Question: Strategy change regarding product offerings - The company is broadening its product strategy to include healthier alternatives, responding to customer demand for a wider range of products [51][54] Question: Focus on prebiotics and probiotics in new product lines - The company confirmed that the micro biome strategy, including prebiotics and probiotics, will be a major focus in product development [65] Question: Marketing and technology investments - Investments will focus on enhancing technology for customer engagement and supporting both agents and direct-to-consumer marketing efforts [71]