Lifevantage Corporation

Good day, ladies and gentlemen. Thank you for standing by. Welcome to today's conference call to discuss LifeVantage's first quarter fiscal 2022 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 first quarter of fiscal 2022. On the call today from LifeVantage with prepared remarks are Steve Fife, Chief Executive Officer, Justin Rose, Chief Sales and Marketing Officer, and Carl Auri, Chief Financial 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, November 4th, 2021. LifeVantage assumes no obligation to update any forward-looking projections that may be made in today's release or call. Now I will turn the call over to Steve Fyfe, Chief Executive Officer of LifeVantage.

Thanks, Reed, and good afternoon, everyone. Thank you for joining us today. With me is Justin Rose, our Chief Sales and Marketing Officer, and Carl Oury, our newly appointed Chief Financial Officer, who will join me with prepared remarks before we turn the call over for Q&A. First quarter results were in line with our expectations and we made further progress on key initiatives around core products, engagement, and activation. Revenues of $53.2 million were down 2.9% year-over-year and on a sequential basis. We maintained high levels of profitability with adjusted EBITDA of $5.8 million or 10.9% of revenue. Moreover, adjusted earnings per share were 23 cents, putting us firmly on track with the annual guidance we introduced coming out of the fourth quarter. We continue to believe that the steps we have been taking to re-accelerate growth through focusing on our core ProTandem NRF2 synergizer, stronger alignment between corporate and our distributors, leveraging digital tools, and new product innovation will start to drive increases in the number of total active accounts over the next several quarters. While the level of in-person activities is nowhere near what it was pre-COVID, which has continued to impact our results, trends are definitely moving in the right direction, which should bode well for our results as we move into calendar 2022. Our recent global convention was a huge success with in-person attendance exceeding 1,500 participants, plus we estimate another 10,000 participated virtually from approximately 15 different countries. This was our first major event in over 18 months with large in-person attendance, something we believe is critical to our focus on re-accelerating growth over the next year. Moreover, Leading up to the convention, there were multiple smaller meetings where distributors, customers, and prospects, typically in groups of 50 to 150, gathered to learn more about LifeVantage products as well as how to effectively develop and grow their businesses. Consistent with our comments over the past few calls, our entire organization is highly energized and firmly aligned around our renewed focus on Protandim NRF2 Synergizer as our core foundational product and key point of differentiation. Leveraging digital tools and technologies to drive growth by helping distributors be more efficient in targeting and servicing customers remains a key area of focus. Usage rates for our distributor app continue trending favorably And we are seeing solid progress with our most productive cohorts who are using the tool to manage and grow their businesses, engage with prospect and team members, and easily access important information around corporate announcements and promotions. We've also continued to expand our senior leadership team with the addition of Carl Alry, who joined us as chief financial officer last week. Carl is a highly experienced, proven leader with a strategic mindset, factors that will be instrumental as we start to re-accelerate growth over the next year. Carl has deep financial expertise along with extensive experience in direct selling and international operations, providing the background and fit to lead all aspects of finance, accounting, tax, and treasury at LifeVantage. Over the past couple of quarters, you've heard us talk about a renewed focus around our core products, which are backed by over 30 independent research studies and are proven effective at mitigating the impact of oxidative stress on the body. We've also been expanding our efforts to partner with other established leaders in health and wellness and recently announced a five-year donation commitment to the Linus Pauling Institute at Oregon State University to support the Institute's mission of promoting optimal health through cutting-edge nutrition research and trusted public outreach. This partnership offers the potential to collaborate with their micronutrient information center and leverage the power of third-party research as well as engaging with researchers at the Institute, allowing us to be uniquely positioned around the latest innovations in the area of nutrients, phytochemicals, and human health. In conjunction with that donation, Dr. Brian Dixon, our Senior Vice President of Research and Development, will join the Director's Circle at LPI, an advisory board that provides strategic advice to the director of the institute and its director of development. Now let me turn the call over to Justin Rose, our Chief Sales and Marketing Officer, to discuss our recent activities.