Nu Skin Enterprises, Inc.

Ladies and gentlemen, thank you for standing by and welcome to the New Skin Enterprises Third Quarter 2020 Earnings Conference Call. At this time, all participant lines are in list only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 on your telephone. Please be advised that today's conference is being recorded. If you require any further assistance, please press star 0. I would now like to hand the conference over to your speaker today, Scott Pond, Head of Investor Relations. Thank you. Please go ahead, sir.

Thanks, Shannon, and good afternoon, everyone. Today on the call with me are Rich Wood, Chief Executive Officer, Ryan Napierski, President, and Mark Lawrence, Chief Financial Officer. On today's call, comments will be made that include forward-looking statements. These statements involve risks and uncertainties, and actual results may differ materially from those discussed or anticipated. Please refer to today's earnings release and our SEC filings for a complete discussion of these risks. Also during the call, certain financial numbers may be discussed that differ from comparable numbers obtained in our financial statements. We believe these non-GAAP financial numbers assist in comparing period-to-period results. Please refer to our investor page at ir.newskin.com for any required reconciliation of non-GAAP numbers. And I'll now turn the time over to Rich.

Thank you, Scott. Good afternoon, everyone. Thank you very much for joining us today. Amid the global uncertainty of this pandemic, we are so pleased with the stability and the strength of our business driven by our global sales force and customer base. Our thoughts and appreciation continue to turn to first responders and all those who are giving their all to help us through these challenging times. And we recognize our own first responders, those in our supply chain, our manufacturing and support groups who are working around the clock to ensure our customers have product and our sales leaders have the support they need. The third quarter was truly a remarkable quarter for our business. Generally, we see a seasonal decline due to vacation during summer months in many of our markets. Rather, this year we improved sequentially, resulting in 19% year-over-year revenue growth and 37% EPS growth in the quarter. These results were driven by customer growth of 28% and sales leader improvement of 12%. Both enhanced by our socially enabled business model and the investments we have made in becoming a digital-focused company. A particular note is the sequential improvement in sales leaders as we prepare for our new product introductions here in this fourth quarter. Our results are benefiting from an environment where individuals around the world are working from home and shopping more online. These results are also being driven by our focus to grow customers, Thank you for joining us. We continue to provide an unrivaled opportunity for aspiring entrepreneurs to build a business with our unique and flexible compensation programs. Ryan will speak to each of these priorities in more detail. The effective execution of our strategy is spurring significant growth in our West region, consisting of the Americas, EMEA, and Pacific markets where social selling has been more widely adopted by our sales force. Mainland China continues to stabilize with sequentially improving revenue, customers, and sales leaders, and we remain on track for a return to year-over-year growth in China in the fourth quarter. Each of our other regions reported modest growth. I am very encouraged with the improving geographic balance of our global business. Our manufacturing business has also performed well, reporting 34% revenue growth in the quarter, And we're continuing to see strong demand from many customers. Our manufacturers are also providing significant benefits to the new skin business as we continue to work through the supply challenges associated with COVID-19. We see tremendous potential in this segment moving forward. We continue to lean in also on our sustainability efforts. This year, we've been particularly focused on our top 20 products. analyzing their environmental impact and making sustainable changes that are measurable. For example, our newly introduced Nutri-Essentials line was awarded several Global Green Beauty Awards for its cleaner formulas and more eco-friendly packaging. And this is just the beginning of some exciting news and new ways we're improving the impact we have on the planet. We generated very strong cash from operations in the quarter and continue to strengthen our balance sheet. Thank you. Thank you. Thank you. And we believe the momentum we're generating now will help set us up for an exciting 2021. With that overview, I'll turn the call over to Ryan.