Herbalife Ltd.

Good afternoon, and thank you for joining the fourth quarter and full year 2020 earnings conference call for Herbalife Nutrition Limited. On the call today is Dr. John Aguinovi, the company's chairman and CEO, John DeSimone, the company's president, Alex Amaskita, the company's chief financial officer, and Eric Monroe, the company's senior 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. Our forward-looking statements are based upon information currently available to us. We do not undertake any obligation to update or release any revisions to any forward-looking statement or to report any future events or circumstances or to reflect the occurrence of unanticipated events In addition, during this call, certain financial performance measures may be discussed that differ from comparable measures contained in our financial statements prepared in accordance with U.S. generally accepted accounting principles referred to by the Securities and Exchange Commission as non-GAAP financial measures. 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. Thank you for joining us on the call today. 2020 was a record year for Herbalife Nutrition. The demand for our nutrition products, combined with the tenacity and entrepreneurial spirit of our distributors, resulted in net sales of $5.5 billion, which is a record for the company and an increase of 14% compared to the prior year. Three of our regions, Asia Pacific, EMEA, and North America, set annual net sales records. Fourth quarter net sales of $1.4 billion increased 16% and represented the largest fourth quarter in company history. In fact, each quarter in 2020 set a net sales record for the respective quarter. It was not just on the top line that we delivered notable results. 2020 net income of $372.6 million increased 20% versus the prior year. Reported earnings of $2.77 per diluted share and adjusted earnings per share of $3.71 each grew by approximately 25% year over year. Our business continues to generate significant cash flow, with 2020 cash flow from operations of $629 million, an increase of approximately 37% versus the prior year. Today, we also announced sales leader retention results for the last 12-month requalification period ending in January of 2021. The requalification rate was 67.9%, which increased from the prior year rate of 66.5%. There were approximately 330,000 sales leaders retained, the highest in our history. We believe this result reflects the ongoing sustainability of our business and the opportunity we offer to our distributors. Simply put, 2020 was an amazing year, the best year ever for Herbalife Nutrition, and a testament to the strength of the company and the resilience of our distribution channel. Although 2020 was a record-setting performance year, I believe the best is still to come. In 2021, we are projecting to build off the double-digit net sales growth of 2020 and have raised our net sales guidance to be in the range of 6% to 14%. And the board of directors approved a new three-year $1.5 billion share repurchase authorization. Yet I also know that for too many, 2020 was a year filled with loss. and unimaginable challenges, and my thoughts are with everyone impacted by the pandemic. We all must do our part to ensure that everyone remains safe. Nothing is more important. As our distributors navigated the challenges of 2020, many were able to give back to their communities, donating products and other supplies to those who needed it the most. For this, I am grateful. Let's dig a little deeper into our regional results for the fourth quarter, starting with the U.S., where net sales grew 32% compared to the fourth quarter of 2019. During the quarter, we continue to see strength in the underlying metrics, with new distributors increasing 17% and new preferred members increasing 44%. At the end of the year, we had over 9,000 nutrition clubs in the U.S., compared to approximately 7,700 clubs at the end of the prior year. The growth in nutrition clubs came from more rural parts of the country, such as Alabama, Tennessee, and Louisiana, where nutrition clubs have become embedded in small town communities. In China, net sales declined 8% compared to the fourth quarter of 2019. along with a decline in the number of new independent service providers. In addition to some macroeconomic challenges in China, we believe one factor contributing to these declines is a recent enhancement made to the requirements for our sales representatives to be eligible to apply to become independent service providers. While we believe this change was a contributing factor to the decline in the fourth quarter, we believe this enhancement will ultimately strengthen our business by improving the quality of our independent service providers. The EMEA region continues its strong trajectory with net sales growth of 31%. 36 countries in EMEA experienced double-digit net sales growth in the quarter, highlighted by markets such as Italy, which grew 34%, Spain, which was up 54%, France, which increased 57%, and the UK, which grew 129%. The accelerated growth in new members that we had in the second and third quarters is having a positive impact on our sales leader metrics. as average sales leaders with volume points increased 18% in the fourth quarter versus the prior year. Additionally, we have launched our segmentation initiative in nine markets in EMEA. We are encouraged by the initial adoption of the program and the distributor engagement it is driving. We are continuing to implement segmentation around the world with 21 markets scheduled throughout 2021. Moving to India, where we saw continued success with net sales surpassing $100 million in the quarter for the first time in the history of the country, representing an increase of 21% compared to the prior year. Strong underlying metrics support the growth with more than 120,000 new preferred customers joining the business during the fourth quarter. The growth in India contributed to a record net sales quarter for the Asia-Pacific region, which increased 14% versus the prior year. We believe we have the right strategy in place to continue delivering results. On Friday, we will provide an update on our growth strategies at our annual presentation at the virtual Cagney Conference. The presentation will be available on our IR websites. I am proud of our distributors and our employees for all they have accomplished in 2020. Their contributions to expanding access to nutrition and economic opportunities are significant, and I expect they will only continue to grow in 2021. Congratulations to the entire Herbalife nutrition team. I will now turn the call over to Alex to review the financials.