USANA Health Sciences, Inc.

Please stand by. We're about to begin. Good day and welcome to the USANA Health Sciences fourth quarter conference call. Today's conference is being recorded. At this time, I would like to turn the conference over to Mr. Patrick Richards, Executive Director of Investor Relations and Business Development. Please go ahead, sir.

Thank you and good morning. We appreciate you joining us to review our fourth quarter and full year results. Today's conference call is being broadcast live via webcast and can be accessed directly from our website at ir.usana.com. Shortly following the call, a replay will be available on our website. As a reminder, during the course of this conference call, management will make forward-looking statements regarding future events or the future financial performance of our company. Those statements involve risks and uncertainties that could cause actual results to differ. The results are projected in such forward-looking statements. Examples of these statements include those regarding our strategies and outlook for fiscal year 2021, as well as uncertainty related to the magnitude, scope, and duration of the impact of the COVID-19 pandemic for our business, operations, and financial business. We caution you that these statements should be considered in conjunction with disclosures, including specific risk factors and financial data contained in our most recent filings I'm joined this morning by our CEO and Chairman of the Board, Kevin Guest, our President, Jim Brown, our Chief Financial Officer, Doug Hekking, as well as other executives. Yesterday after the market closed, we announced our fourth quarter results and posted our management commentary, results, and output document on the company's website. We'll now hear brief remarks from Kevin before opening the call for questions. Thank you, Pat, and good morning, everyone.

We appreciate you joining us to review our fourth quarter results and former year results as well as our initial outlook for 2021. Overall, we are very pleased with how we performed against the many new and unique challenges of 2020. Our strong performance in the face of an unprecedented pandemic reflects the continued demand for our high-quality nutritional products and successful execution of our strategic initiatives. In 2020, we found that we were well positioned, well prepared, and nimble enough to adapt to and succeed in this unprecedented operating environment. Because of this, we ended the year with more customers, higher net sales, and record earnings per share. As you can see from our initial outlook, we are expecting 2021 to be another record year for USADA. 2020 was truly a transformative year for our business, as we accelerated many aspects of our customer experience strategy. We've been actively investing in the USANA customer experience for several years now with an emphasis on our digital strategy. In 2020, we capitalized on the groundwork we had already laid and accelerated many other projects to successfully operate during the pandemic. We improved our websites, digital shopping experience, associate trainings, Customer Communications, and our overall technology infrastructure. Additionally, we introduced several new digital tools that allowed our sales force to continue sharing and selling USANA products in a predominantly virtual environment. These enhancements to our business, as well as many other technical and operational improvements, have meaningfully improved the experience that our sales force and customers experience when doing business with USANA. Although we recognize that the pandemic is not over, our outlook for fiscal 21 reflects an expectation that we will see progress through 2021 towards a more normalized operating environment. While we've learned a great deal hosting several virtual events this past year, we look forward to the future opportunities of engaging again with our sales force and customers in an in-person setting when it makes sense to do so. Our business is built around fantastic nutritional products, relationships, and personal interactions. We plan to leverage the benefits of both virtual and in-person events moving forward. During the first half of the year, we expect to hold virtual only events for our sales force and maintain our work-from-home plan for employees. During the year, we will continue to execute our digital strategy, drive growth in existing markets with our emphasis on China, launch our new active nutrition product line and other products and actively seek out business development opportunities. As we execute this strategy, we are projecting another amazing year for the company. In closing, I am very confident in our strategic direction, the competency and agility of our team, and the strength of USANA's underlying business. With that, I'll now ask the operator to please open the lines for questions.