
Financial Data and Key Metrics Changes - Net revenues for Q4 2020 were approximately $20.2 million, down $3.4 million or 14.7% from approximately $23 million in Q4 2019 [3] - Full fiscal 2020 net revenues were approximately $113 million, down $5.8 million or 4.9% from approximately $118.8 million in fiscal 2019 [4] - Net earnings in fiscal 2020 were $5.6 million, down $1.1 million or 15.5% from $6.7 million in fiscal 2019 [5] - Earnings per share on a fully diluted basis decreased from $0.81 in fiscal 2019 to $0.68 in fiscal 2020 [5] Business Line Data and Key Metrics Changes - The retail division experienced a significant decline, with sales down about 60% to 70% due to store closings [9] - The UBAM division saw a revenue increase of about 60% in April compared to the previous year, despite the absence of school and library business [11] Market Data and Key Metrics Changes - March revenue was down 25%, attributed to disruptions in retail and school sales [8] - The company applied for a PPP loan of $1.44 million in response to the downturn, which was paid back shortly after due to improved business conditions [10] Company Strategy and Development Direction - The company is focusing on building a strong foundation for future growth, with new recruitment and IT programs in place [8] - Management expressed optimism about the potential for continued growth, drawing parallels to rapid growth experienced in 2016 [15][19] - The company is preparing for increased demand by ordering significant inventory and expanding operational capacity [37] Management's Comments on Operating Environment and Future Outlook - Management noted that there has not been a negative trend since April, with consistent weekly improvements in business performance [17] - The company is experiencing a surge in new sales recruits, indicating a positive trend in direct selling [12][20] - There is a strong demand for educational materials, particularly in the homeschooling sector, which is expected to continue [19] Other Important Information - The company transitioned to a virtual convention, attracting over 6,200 registrants, which is expected to be profitable [24] - Management emphasized the importance of early success for new consultants in maintaining momentum in sales [21] Q&A Session Summary Question: Concerns about the sustainability of improvements post-COVID - Management believes the current growth trend may continue, similar to the rapid growth seen in 2016, and that many individuals are looking for side gigs due to job losses [15][16] Question: Impact of unemployment on business opportunities - Management acknowledged the high unemployment rate but sees it as an opportunity for individuals to explore direct selling as a viable income source [18] Question: Handling increased demand and operational capacity - Management confirmed that they have ramped up operations to handle increased order volumes, with the ability to expand shifts as needed [32][33]