USANA Health Sciences, Inc.

Please stand by, we're about to begin. Good day and welcome to the USANA Health Sciences second quarter conference call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Mr. Andrew Masuda, Director of Investor Relations. Please go ahead, sir.

Thank you, and good morning, everyone. We appreciate you joining us to review our second quarter 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 be making 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, perhaps materially, from the results projected in such forward-looking statements. Examples of these statements include those regarding our strategies and outlook for fiscal year 2022, as well as uncertainty related to the magnitude, scope, and duration of the impact of the COVID-19 pandemic to our business, operations, and financial results. 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 with the SEC. I'm joined today by our CEO and Chairman of the Board, Kevin Guest, our President, Jim Brown, our Chief Financial Officer, Doug Hecking, as well as other executives. Yesterday, after the market closed, we announced our second quarter results and posted our management commentary document on the company's website. We'll now hear brief remarks from Kevin before opening the call for questions.

Thank you, Andrew, and good morning, everyone. We appreciate you joining us to review our second quarter results. Pre-release and our final early release for the second quarter yesterday, our operating performance during the second quarter was negatively impacted by COVID-related lockdowns, restrictions, and other disruptions in several key markets. These disruptions also had a negative effect on the regional sales programs we offered during the quarter. Despite these short-term disruptions to our business, we remain confident in our business strategy and our prospects for future customer and sales growth. Although we continue to prioritize the alignment of spending with sales performance in the near term, the health of our balance sheet and our generation of free cash flow will allow us to continue making the necessary investments to position USANA for future growth. During the quarter, we made progress on our strategy in several areas, including the introduction and launch of enhancements to our associate onboarding program, which streamlined the onboarding process to provide associates with additional tools to set up and operate their business. We believe this will help support and increase our associate base over the long term. Additionally, our digital strategy remains a primary focus for our team moving forward. We look forward to celebrating our 30th anniversary at our upcoming global convention in Salt Lake City in a few weeks. This will be a hybrid event with an expected in-person attendance of approximately 4,000 associates and tens of thousands participating virtually. We also have selected events and modest promotional activities planned in conjunction with this celebration to help generate excitement surrounding this event. In closing, we remain confident in the strategies we are pursuing for the long-term health of our business and in our overall long-term growth potential in our markets globally. With that, I'll now ask the operator to please open the lines for questions.