USANA Health Sciences, Inc. (NYSE:USNA) Q2 2022 Earnings Conference Call July 27, 2022 11:00 AM ET Company Participants Andrew Masuda - Director, IR Kevin Guest - CEO & Chairman Jim Brown - President Doug Hekking - CFO Brent Neidig - Chief Officer & MD, China Walter Noot - COO Conference Call Participants Chris Neamonitis - Jefferies Doug Lane - Lane Research Linda Bolton Weiser - D.A. Davidson Operator Good day and welcome to USANA Health Sciences' Second Quarter Conference Call. Today's conference is bein ...

USANA Health Sciences, Inc. (NYSE:USNA) Q1 2022 Results Conference Call April 27, 2022 11:00 AM ET Company Participants Andrew Masuda - Director of Investor Relations Kevin Guest - Chairman and Chief Executive Officer Doug Hekking - Chief Financial Officer Brent Neidig - Chief Officer and Managing Director of China Jim Brown - President Conference Call Participants Chris Neamonitis - Jefferies Doug Lane - Lane Research Linda Bolton Weiser - D.A. Davidson Operator Good day and welcome to USANA Health Science ...

USANA Health Sciences, Inc. (NYSE:USNA) Q4 2021 Earnings Conference Call February 9, 2022 11:00 AM ET Company Participants Patrique Richards - Executive Director, Investor Relations and Business Development Kevin Guest - Chairman and Chief Executive Officer Doug Hekking - Chief Financial Officer Brent Neidig - Chief Officer and Managing Director of China Conference Call Participants Steph Wissink - Jefferies Doug Lane - Lane Research Disclaimer*: This transcript is designed to be used alongside the freely a ...

Financial Data and Key Metrics Changes - The final third quarter results were modestly better than preliminary projections, with expectations for 2021 to be a record revenue year for the company [6][7] - The operating environment remains unpredictable, making it difficult to project when sales activity will fully rebound [7] Business Line Data and Key Metrics Changes - The company continues to focus on generating sustainable customer growth and engagement, with an emphasis on improving technology and launching new products [9][10] - A significant drop in customer accounts was noted, attributed to the absence of a short-term sales program during the quarter [14][15] Market Data and Key Metrics Changes - The disruptions and lockdowns due to the COVID-19 pandemic affected performance in several key markets [6] - The company is optimistic about the nutritional supplement market in China, despite disruptions affecting consumer confidence [36] Company Strategy and Development Direction - The growth strategy includes enhancing customer experience, pursuing international expansion, and capitalizing on business development opportunities [10] - The company plans to continue investing strategically in the business to drive future growth [8] Management Comments on Operating Environment and Future Outlook - Management acknowledges the challenges faced in the second half of the year but remains confident in long-term growth potential [8][11] - The company is optimistic about its prospects for continued growth in 2022 and beyond [8] Other Important Information - Certain new product launches were delayed due to COVID-19 disruptions, with plans to roll them out in 2022 [23][24] - Live events are being cautiously planned, with some scheduled for December in China, while others may remain virtual [28][29] Q&A Session Summary Question: Concerns about fourth quarter sales guidance - Management indicated that customer accounts fell due to the absence of a short-term sales program, and they expect similar customer account levels in the fourth quarter [14][17] Question: Customer attrition and re-engagement strategies - Management noted that customer attrition may be linked to the absence of promotional programs and emphasized ongoing efforts to re-engage lost customers [18][21] Question: Delays in new product launches - Management confirmed that product launches were pushed to 2022 due to COVID-19 disruptions, particularly affecting Active Nutrition products [23][24] Question: Outlook for live events - Management provided updates on live events, with a national meeting in China scheduled for December and plans for a major event in August 2022 [28][29] Question: Market conditions in China - Management expressed optimism about the nutritional supplement market in China, despite previous disruptions affecting consumer confidence [36]

Financial Data and Key Metrics Changes - The company reported record net sales, earnings, and active customers with double-digit year-over-year sales growth in each region [7][10] - The sales program contributed significantly to the results, but management expects a deceleration in growth in the second half of the year [14][15] Business Line Data and Key Metrics Changes - The active nutrition line is showing strong initial performance, with plans for further rollout and product enhancements [39][42] - The company is focusing on expanding its product offerings beyond traditional nutritional vitamins to include lifestyle products [45][47] Market Data and Key Metrics Changes - The company is experiencing varied impacts from COVID-19 across different markets, with supply chain challenges noted [19][20] - Inventory levels have increased to approximately $90 million as the company prepares for potential supply chain disruptions [21] Company Strategy and Development Direction - The long-term growth strategy centers on customer growth and engagement, improving technology, and pursuing international expansion [10][11] - The company is investing in digital tools and enhancing customer experience, particularly in the Chinese market [33][38] Management Comments on Operating Environment and Future Outlook - Management acknowledges the challenges posed by COVID-19 and inflationary pressures on material costs, which may impact gross margins [23][24] - The company remains confident in its ability to manage these challenges and deliver another record year [11][24] Other Important Information - Capital expenditures for the year are expected to be in the range of $10 million to $15 million, with some delays due to supply chain issues [27] - The company is enhancing its logistics to ensure product availability in key markets [25][26] Q&A Session Summary Question: Concerns about deceleration in sales growth - Management explained that the strong sales growth was primarily driven by a short-term sales program, and a similar pattern is expected as seen in previous years [14][15][16] Question: Impact of COVID-19 on business - Management noted that the impact varies by market, with some experiencing lockdowns and others not, but overall supply chain management has been effective [19][20] Question: Update on the China shopping app - The app has been well-received, but its growth is part of a long-term strategy rather than a short-term boost [32][33] Question: Active Nutrition line performance - Initial results exceeded expectations, with plans for further product introductions and enhancements [50][54] Question: Feedback from associates on product preferences - Associates are requesting more options, particularly in bars, and the company is responding by expanding its product line [53][54]

USANA Health Sciences, Inc. (NYSE:USNA) Q1 2021 Earnings Conference Call April 28, 2021 11:00 AM ET Corporate Participants Patrique Richards - Executive Director of Investor Relations & Business Development Kevin Guest - Chairman & Chief Executive Officer Jim Brown - President Doug Hekking - Chief Financial Officer Brent Neidig - Chief Officer and Managing Director of China Conference Call Participants Doug Lane - Lane Research Sebastian Barbero - Jefferies Operator Good day, and welcome to the USANA Health ...

Financial Performance - In 2020, USANA Health Sciences generated $1.135 billion in net sales and had approximately 599,000 active Customers worldwide[17]. - In 2020, USANA's net sales outside the United States represented approximately 90.5% of consolidated net sales[33]. - The Auto Order subscription program accounted for 60% of product sales volume for the year ended January 2, 2021, offering a 10% discount to customers[77]. - Product returns have been minimal, totaling approximately 0.7% of net sales over the past three years, indicating high customer satisfaction[77]. - The COVID-19 pandemic has negatively impacted sales and operations, with ongoing uncertainty affecting financial results[144]. Market Presence - Mainland China accounted for approximately 41% of net sales and 38% of active Customers, making it the largest market for USANA[17]. - The Greater China region, including China, Hong Kong, and Taiwan, has been the largest market, but sales and active customer counts declined in 2019 due to a challenging operating environment[157]. - The company aims to expand into a new international market in 2022, laying groundwork in 2021[25]. - The Americas and Europe region saw year-over-year constant currency sales growth in every market in 2020[30]. Product Development and Innovation - The USANA® Nutritionals product line represented 66% of total product sales in 2020, an increase from 64% in 2019[24]. - The company plans to introduce a new Active Nutrition line focusing on weight loss and healthy meal replacement products starting in Q2 2021[20]. - USANA's product innovation efforts include the development of proprietary ingredients and formulations, supported by U.S. Patent 10,632,101 for the InCelligence complex formula[36]. - Approximately 65% of the company's products are manufactured in-house at the Salt Lake City facility, which started producing saleable food products in Q4 2020[40]. Supply Chain and Manufacturing - The company contracts third-party suppliers for about 35% of its product sales, including gelatin-capsulated supplements and certain personal care products[46]. - The Salt Lake City facility is registered with multiple regulatory agencies, including the FDA and Health Canada, and is compliant with Good Manufacturing Practices (GMPs)[43]. - The company has in-house microbiology and analytical chemistry labs for quality control, testing for biological and chemical contamination[47]. - The company has not experienced significant disruptions in its supply chain, although potential risks remain due to the ongoing COVID-19 pandemic[48]. Regulatory Compliance - Regulatory compliance is critical, with the company adhering to extensive governmental regulations regarding product formulation, manufacturing, and marketing[87]. - The company has been found in compliance with Good Manufacturing Practices (GMPs) for dietary supplements during annual FDA audits[89]. - BabyCare's direct selling business model is specifically tailored to comply with Chinese regulations, which include prohibitions on pyramid selling and multi-level compensation[100]. - The company must obtain various licenses and approvals to expand its direct selling business in China, which has been hindered since the government suspended the review process in 2019[164]. Employee and Corporate Social Responsibility - As of February 26, 2021, the company employed approximately 1,943 employees across 22 countries, with 46% in the United States and 27% in China[117]. - Approximately 58% of the global employee population is female, with initiatives in place to promote women into management roles[117]. - In 2020, the USANA Foundation provided over 3.5 million meals to underprivileged children and families worldwide[119]. - The company donated over $1.3 million in aid and grants to partner charities globally in 2020[127]. Challenges and Risks - BabyCare's operations in China involve significant risks and uncertainties, which the company attempts to mitigate through compliance and training efforts[62]. - The company has faced legal challenges regarding the classification of Associates as independent contractors, which could impose additional obligations and costs[154]. - Regulatory changes in China could materially harm the business, as the government exercises significant control over the economy and direct selling regulations[160]. - The company faces challenges in attracting and retaining active customers, with a high turnover rate among Associates and Preferred Customers affecting sales growth[198]. Competition and Market Dynamics - The company experiences intense competition from larger, established competitors in the nutritional supplement market, which may affect its market position[206]. - Adverse publicity and negative public perception regarding the direct selling industry could harm the company's ability to attract and retain customers[203]. - Trade policies and tensions between the U.S. and China could adversely affect BabyCare's business operations and financial results[170]. Corporate Governance - The founder, Dr. Myron Wentz, holds approximately 40.34% of the company's common stock, giving him significant control over business affairs and potential influence on shareholder interests[210]. - A large number of shares held by principal shareholders could lead to market price declines if sold in substantial amounts[211]. - The company's stock price may fluctuate significantly due to various factors, including operating results and market conditions, which could adversely affect shareholder value[212].

USANA Health Sciences, Inc. (NYSE:USNA) Q4 2020 Earnings Conference Call February 10, 2021 11:00 AM ET Company Participants Patrique Richards - Executive Director of Investor Relations & Business Development Kevin Guest - Chairman & Chief Executive Officer Jim Brown - President Doug Hekking - Chief Financial Officer Conference Call Participants David Bain - ROTH Capital Sebastian Barbero - Jefferies Doug Lane - Lane Research Ivan Feinseth - Tigress Financial Partners Operator Good day, and welcome to the US ...

® THE CELLULAR NUTRITION COMPANY Management will make forward-looking statements during this presentation. Actual results could differ from those projected in such forward-looking statements, which involve a number of risks and uncertainties and should be considered in conjunction with the cautionary statements contained in our most recent filings with the SEC. Management will make forward-looking statements during this presentation. Actual results could differ from those projected in such forward-looking s ...

Financial Data and Key Metrics Changes - The company reported record earnings per share and sales approaching $300 million for Q3 2020, driven by strong demand for nutritional products and successful incentive programs [7][9]. - The full-year guidance was raised to reflect the strong Q3 results and expectations for Q4 [9]. Business Line Data and Key Metrics Changes - A record number of active customers was achieved during the quarter, indicating strong engagement and demand for the company's products [7]. - The company successfully executed virtual conventions, which allowed for a larger audience reach compared to in-person events [8]. Market Data and Key Metrics Changes - The company noted that while China is recovering from the impacts of COVID-19, the growth has not yet reached the levels seen in 2017 and 2018, but the outlook remains positive [13][16]. - Approximately 5% of sales in the Greater China region come from Hong Kong [26]. Company Strategy and Development Direction - The company is focusing on organic growth and exploring deal flow opportunities to accelerate growth in new geographic regions and product lines [31]. - The company plans to continue leveraging virtual platforms for events, which have proven effective in reaching a broader audience [46][48]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the underlying business strength despite the challenges posed by the COVID-19 pandemic [9]. - There is optimism about future growth, particularly in the context of product rollouts and market recovery [40][49]. Other Important Information - The company is seeing a lift in demand for products designed to support immune function, which has been a trend throughout the year [38]. - The company is considering investing in a platform for virtual meetings but is currently utilizing existing platforms like Zoom and Webex [44][48]. Q&A Session Summary Question: Insights on China and Sales Recovery - Management acknowledged the slower recovery in China but remains confident in the market's potential and is actively engaging in promotions to revitalize sales [12][18]. Question: Impact of COVID-19 on Margins - Management noted that while there were higher incentives and costs, lower SG&A expenses due to the absence of global conventions helped maintain margins [20][22]. Question: Capital Allocation and Share Buybacks - The company prioritizes organic growth and is looking for the right opportunities for share repurchase, with a focus on maintaining flexibility [31][32]. Question: Product Trends and Distributor Feedback - There is a continued interest in immune-supporting products, and distributors are eager to return to in-person meetings [38][41]. Question: Virtual Meeting Platforms - The company is currently using popular platforms like Zoom and Webex for virtual meetings, which have been effective in reaching a wider audience [44][48]. Question: Active Nutrition Line Rollout - The rollout of the Active Nutrition line is planned for early next year, with a focus on regulatory compliance and market-specific launches [49].