Mark Nicholls – CFO Rob Sinnott – CEO and Chief Science Officer

Greetings. And welcome to the Mannatech Incorporated Second Quarter 2013 Earnings Conference Call. At this time, all participants are in a listen-only mode. As a reminder, this conference is being recorded. Now, I’d like to introduce our moderator for the call today, Mr. Mark Nicholls, Chief Financial Officer. Mr. Nicholls, you may begin.

Thank you. Good morning, everyone. This is Mark Nicholls, and welcome to Mannatech’s second quarter 2013 earnings call. Today you will hear from both me and Mannatech’s CEO and Chief Science Officer, Dr. Rob Sinnott. Before we begin the call, I will first read the Safe Harbor Statement. During this conference call, we may make forward-looking statements, which can involve future events or future financial performance. Forward-looking statements generally can be identified by the use of phrases or terminologies such as will, continue, may, believe, intend, expects, potential, should, and plan, or other similar words or the negative of such terminology. We caution listeners that such forward-looking statements are subject to certain events, risks, uncertainties, and other factors and speak only as of today. We also refer our listeners to review our SEC submissions. At this time, I’d like to make a few brief comments concerning our second quarter of 2013 operating results, our balance sheet at June 30, 2013. We are pleased to announce net income for the second quarter of 2013 is $784,000 or $0.30 a diluted share as compared to a net loss of $2.5 million or $0.93 per diluted share for the second quarter of 2012. Recruiting of new associates and members increased 31.2% in the second quarter of 2013, as compared to the second quarter of 2012. The number of new independent associates and members for the second quarter of 2013 was approximately 36,200 as compared to 27,600 in 2012. The total number of active independent associates and members based on a 12-month trialing period, was approximately 240,000 as of June 30, 2013, as compared to 230,000 as of June 30, 2012. This increase in total number of active independent associates and members was due to an increase in the recruitment of both associates and…

Thank you, Mark. Good morning to Mannatech’s investors, associates and employees. Last year, through the dedication of our employees and our field associates were able to turn Mannatech around and make it a profitable business once more. Subsequently we have maintained that profitability through financial discipline. This year, we have begun to execute on a focused strategy to increase top-line sales revenue. For the second quarter 2013, Mannatech has reported first year-over-year sales growth in six years. We are pleased with the progress that we have made during the recent past, but really we’ve only just begun. With this kind of work we will never be finished. There will always be room to increase the efficiencies in our supply chain, improve our customer service and provide effective support for our associates. We will continue learning and applying best practices to all areas of our business. We will continue developing and honing our team, to ensure that our talent pool is deep, sustainable and motivated to continually improve. As is evident in our net sales reported by region, our sales growth is not uniform across the world. Mannatech like other global organizations has been affected by a shipping, cultural and business climate. Consumer preferences and spending patterns have shifted dramatically and probably permanently. So it’s a good thing that our business model is entrepreneurial, global and highly adaptable. One example is that Mannatech is evolving as a company with a particular appeal in Asian cultures. We are finding that in Asia, our high-quality products and our entrepreneurial business model appeal to very large and increasingly affluent audiences. In Asian cultures, natural health products have well established role in daily life. And there is a time on a tradition of preventive healthcare. The reputation of headwinds that dietary supplements, stays in westernized…

That concludes today’s conference call. You may now disconnect.