Lifevantage Corporation

Gentlemen, thank you for standing by. Welcome to today's conference call to discuss LifeVantage's third fiscal quarter of 2021 financial results. At this time, all participants are in a listen-only mode. Following the formal remarks, we will conduct a question and answer session. Instructions will be provided at that time for you to queue up. Hosting today's conference will be Reed Anderson with ICR. As a reminder, today's conference is being recorded. And now, I would like to turn the conference over to Mr. Anderson. Please go ahead, sir.

Thank you. Good afternoon and welcome to LifeVantage Corporation's conference call to discuss results for the third fiscal quarter of 2021. On the call today from LifeVantage with prepared remarks are Steve Fife, Chief Executive Officer and Chief Financial Officer, and Justin Rose, Chief Sales and Marketing Officer. By now, everyone should have access to the earnings release, which went out this afternoon at approximately 4.05 p.m. Eastern Time. If you have not received the release, it is available on the investor relations portion of LifeVantage's website at www.lifevantage.com. This call is being webcast and a replay will be available on the company's website as well. Before we begin, we would like to remind everyone that our prepared remarks contain forward-looking statements, and management may make additional forward-looking statements in response to your questions. These statements do not guarantee future performance, and therefore, undue reliance should not be placed upon them. These statements are based on current expectations of the company's management and involve inherent risks and uncertainties, including those identified in the risk factor section of LifeVantage's most recently filed forms 10-K and 10-Q. Please note that during today's call we will discuss non-GAAP financial measures, including results on an adjusted basis. Management believes these financial measures can facilitate a more complete analysis and greater transparency into LifeVantage's ongoing results of operations, particularly when comparing underlying operating results from period to period. We've included a reconciliation of these non-GAAP measures with today's release. This call also contains time-sensitive information that is accurate only as of the date of this live broadcast April 29th, 2021. LifeVantage assumes no obligation to update any forward-looking projection that may be made in today's release or call. Now I will turn the call over to Steve Fife, the Chief Executive Officer and Chief Financial Officer of LifeVantage.

Thanks, Reid, and good afternoon, everyone. Thank you for joining us today. With me today is Justin Rose, our Chief Sales and Marketing Officer, who will join me with prepared remarks before we turn the call over for Q&A. We generated third quarter adjusted earnings per share of 20 cents, which is up 54% compared to the prior year period, but down sequentially 20% despite a challenging environment that resulted in an 8% decline in revenue year over year. The delayed timing of new product launches and country launches, both due to COVID-19, had an adverse impact on revenue in the quarter. However, from a trend perspective, March was the strongest month in the quarter, and we feel good about our positioning and ability to return to top-line growth over the near term. In addition, the lack of in-person interaction due to COVID-19 has been a major factor adversely affecting our performance over the past year. While it's still very early and we don't anticipate a return to old practices anytime soon, We are seeing a positive impact to our business as people are becoming more comfortable with in-person meetings, even under controlled conditions. The uptick in growth from February to March has continued into April, and as mentioned, we feel good about our positioning and ability to return to top-line growth. This growth is being driven by engagement, excitement, and alignment between corporate and our top distributor leaders. The excitement within the distributor base is a result of a renewed and intentional focus on a simplified message centered on our flagship product, Protandim NRF2 Synergizer. Protandim NRF2 is the result of a discovery made over 50 years ago at Duke University. It is a combination of five natural ingredients that stimulate the body's natural production of two key antioxidant enzymes and restores those enzymes to levels of a 15-year-old, resulting in a reduction in oxidative stress by an average of 40% in 30 days. Procandum NRF2 has been featured in the media, was the subject of an ABC primetime investigative report, and its benefits have been validated by over 25 independent studies from prestigious universities and institutions from around the world. These studies can easily be found and reviewed on PubMed.gov. This story is a message that is enthusiastically embraced by our entire distributor base. While the corporate staff is excited to move into our new headquarters, our distributor leaders are equally excited to use the office and our training facilities as part of their enrollment process. Although we have yet to have an official grand opening, distributors from as far as Mexico and throughout the United States have traveled to visit the new office despite the inconveniences of pandemic travel. With dedicated space for training, education, and recruitment, distributors have already begun booking the facility for weekend trainings with 50-plus guests to use as a backdrop during their recruitment process. We recognize that the change to the C-suite in September and the lack of a permanent CEO created a sense of confusion and instability with the top distributor leaders. As the new CEO, over the past several months, I have taken the opportunity to meet with and listen to each of these distributor leaders. The level of engagement by our top producers intensified as the quarter progressed, including a re-energized focus around the strength of our core offerings, as well as newly launched products. We believe we've been able to increase our alignment significantly and are clearly in a better position than we were a few quarters ago across the entire organization, with everyone rowing in the same direction. The tools we've rolled out over the past several months are gaining traction as the field gets more comfortable with these solutions and has higher rates of success. Justin will provide some additional details around this. With this renewed alignment between corporate and distributor leadership, going forward we will have two primary areas of focus. First, increasing our distributor enrollments, and second, increasing the month two purchases of both distributors and customers. I will share updates on the successes of these initiatives in future quarters. Before I turn to a discussion on third quarter results, let me turn the call over to Justin Rose, our Chief Sales and Marketing Officer, to discuss our recent activities.