USANA Health Sciences, Inc. (NYSE:USNA) Q3 2022 Earnings Conference Call October 26, 2022 11:00 AM ET

Company Participants

Andrew Masuda – Investor Relations

Kevin Guest – Chief Executive Officer and Chairman of the Board

Doug Hekking – Chief Financial Officer

Conference Call Participants

Linda Bolton-Weiser – D.A. Davidson

Operator

Hello, and welcome to USANA Health Sciences Third Quarter Earnings Call. My name is Sarah, and I will be your coordinator for today's event. Please note, this conference is being recorded and for the duration of the call your lines will on listen-only. However, you will have the opportunity to ask questions. [Operator Instructions]

I will now hand you over to your host, Andrew Masuda, to begin today's conference. Thank you.

Andrew Masuda

Thank you and good morning, everyone. We appreciate you joining us to review our third quarter results. Today's conference call is being broadcast live via webcast and can be accessed directly from our website at ir.usana.com. Shortly following the call, a replay will be available on our website.

As a reminder, during the course of this conference call, management will make forward-looking statements regarding future events or the future financial performance of our company. Those statements involve risks and uncertainties that could cause actual results to differ perhaps materially from the results projected in such forward-looking statements. Examples of these statements include those regarding our strategies and outlook for fiscal year 2022 as well as uncertainty related to the magnitude, scope and duration of the impact of the COVID-19 pandemic to our business, operations and financial results.

We caution you that these statements should be considered in conjunction with disclosures, including specific risk factors and financial data contained in our most recent filings with the SEC. I'm joined by our CEO and Chairman of the Board, Kevin Guest; our President, Jim Brown; our Chief Financial Officer, Doug Hekking; as well as other executives. Yesterday, after market closed, we announced our third quarter results and posted our management commentary document on the company's website.

We'll now hear brief remarks from Kevin before opening the call for questions.

Kevin Guest

Thank you, Andrew, and good morning, everyone. We appreciate you joining us. We reported yesterday that our third quarter operating results were – challenging than anticipated operating environment. COVID-related disruptions and increasing inflationary pressure on consumers were the primary factors that negatively affected our sales momentum and active customer counts in many of our markets. As we look ahead, we anticipate continued COVID-related inflationary and economic challenges in many of our markets, which is reflected in our adjusted fiscal 2022 outlook. Despite the challenging environment, USANA remains a very healthy business. We generated US$29 million of operating cash flow in the third quarter. We held a successful 30th anniversary convention in Salt Lake City and made meaningful progress to enhance our customer online shopping experience. We have the means, ability and determination to put USANA back on growth trajectory towards the full monty.