Herbalife Ltd.

Good afternoon and thank you for joining the second quarter 2020 earnings conference call for Herbalife Nutrition Ltd. On the call today is Dr. John Aguinovi, the company's chairman and CEO, John DeSimone, the company's president, Alex Enresquita, the company's Senior Vice President of Finance Strategy and the Investor Relations, and Eric Monroe, the company's Director, Investor Relations. I would now like to turn the call over to Eric Monroe to read the company's Safe Harbor language.

Before we begin, as a reminder, during this conference call, we may make forward-looking statements within the meaning of the federal securities laws. These statements involve assumptions and are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those discussed or anticipated. For a complete discussion of risks associated with these forward looking statements in our business, we encourage you to refer to today's earnings release and our SEC filings, including our most recent annual report on Form 10-K and quarterly report on Form 10-Q. Our forward looking statements are based upon information currently available to us. Thank you for joining us. We believe that these non-GAAP financial measures assist management and investors in evaluating our performance and preparing period-to-period results of operations in a more meaningful and consistent manner as discussed in greater detail in the supplemental schedules to our earnings release. A reconciliation of these non-GAAP measures to the most comparable GAAP financial measures is included in our earnings press release submitted to the SEC. These reconciliations together with additional supplemental information are available at the investor relations section of our website, Herbalife.com. Additionally, when management makes reference to volumes during this conference call, they are referring to volume points. I will now turn the call over to our Chairman and CEO, John Aguinobi. Good afternoon, everyone.

I hope that you and your family are staying safe and healthy. With today's release, we announced record-breaking quarterly net sales results for the company. We reported net sales of $1.3 billion, which grew 8.6%. Reported earnings per share grew 52%, and adjusted earnings per share grew 36%, compared to the second quarter of 2019. As part of our pre-release a month ago, we announced that the second quarter of 2020 was also the largest quarter in our 40-year history in terms of volume points with record results in both our North America and our EMEA regions. Q2 also saw a record number of new members and preferred members joining the business. As a sign of the confidence that we have in our business and our long-term growth prospects, we announced last month that we made an offer to purchase $750 million of our common shares. Alex will provide more details on this transaction later in the call. As the numbers and facts demonstrate, Everlife Nutrition is performing at an exceptional level and we believe our distributors' entrepreneurial spirit combined with our quality line of nutrition products will lead to continued growth. From a demand perspective, our business is backed by favorable consumer trends in an environment that has never been more responsive to what we bring to the table. According to a recent study from William and Hood, health is the new top global consumer priority. We believe that individuals around the world have a heightened focus on consuming healthy, nutrient-dense foods and supplements. Additionally, individuals who are seeking an economic opportunity are finding our business model to be attractive. Our distributors are embracing technology to service their customers, which is helping them meet the increase in demand. We are assisting our distributors as they rapidly adopt digital tools, and the positive effects of this are evident in our results. The investments we've made in technology have allowed our distributors and their customers to stay connected when face-to-face interactions are unable to take place. Our ongoing technology strategy is focused on improving distributor scalability, increasing distributor-to-customer connectivity, and enhancing the customer experience. We are encouraged to see increased usage of our digital tools such as HN Connect, HN MyClub, and Engage. Let's dig a little deeper into our top four countries, starting with the U.S., where year-over-year volume points were at an all-time high and grew 38% for the quarter. This growth is a testament to our entrepreneurial distributors discovering innovative ways to run their businesses during the pandemic. The percentage of our US business growing through distributors who operate a nutrition club model, which represents the majority of our volume in the country, remains relatively consistent with pre-pandemic levels. Although we've seen nutrition club operators continue to grow sales by individual prepared consumptions, we have seen them modify their businesses and shift a higher proportion of their sales to home delivery when face-to-face interactions at clubs have been unable to take place. Additionally, US distributors have seen more unique customers. The monthly average number of unique customers in the US increased year-over-year by more than 25% in the second quarter. Moving on to China, where volume points grew 18% compared to the second quarter of 2019. During the quarter, we made further upgrades to our recently developed Personal Stores platform on WeChat, including new features such as live streaming and optimization of our landing page. Volume coming from our China service providers and sales representatives' personal stores accounted for approximately 23% of total sales in the country. Online meetings and trainings continue to be a focus in the region as the government continues to maintain strict controls over large in-person social gatherings. In the first half of the year, we've had over 2 million attend virtual trainings or seminars in China. China's first virtual extravaganza took place in the second quarter with approximately 81,000 attendees. India volume decreased by 15% during the quarter, but materially improved as the quarter progressed, coming off the lows of a 30% year-over-year decline in April to slight growth in the month of June. Restrictions imposed in the market due to the lockdown resulted in the closures of many access points and disrupted national transportation impacting product delivery. Toward the end of the quarter, the restrictions began to ease in non-containment zones, and by the end of June, the majority of our product access locations in the market were actually open. In Mexico, volume points were down 4% in the quarter, and we're encouraged to see a return to growth in new members for Mexico this quarter, with the month of June representing the largest number of new members in a single month since August of 2017. I would also like to call out the EMEA region, which set a volume point record and grew 21% in the quarter. The growth came from countries such as Spain, which was up 20%, Turkey, which was up 27%, France, which grew 55%, South Africa, which increased 88%, and the UK, which grew an astonishing 90%. Members in the region were able to adapt quickly to the new circumstances and transfer their businesses into a virtual environment. Given the continuing impact of COVID-19 on our business and the rapidly evolving landscape in response to these pandemic conditions, we are not providing guidance at this time. However, our year-over-year volume point growth rate improved each month during the second quarter and we are encouraged that this trend continued in July. We remain confident in the long-term prospects of our business based both on the increasing demand for products we provide and on our focused growth strategy. This confidence is further supported by our strong financial foundation and the substantial investments we've made in our business. We have a proven track record of working through difficult situations and I fully believe in our ability to overcome current and future challenges. In closing, I want to thank everyone at Herbalife Nutrition for their hard work and diligence during these extraordinary times. I'll now turn the call over to Alex to review the financials. Thank you John.