David Johnson - Chief Financial Officer Al Bala - President and Chief Executive Officer

Greetings and welcome to the Mannatech, Incorporated First Quarter 2017 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. Now, I would like to introduce our moderator for the call today, Mr. David Johnson, Chief Financial Officer. Mr. Johnson, you may begin.

Thank you. Good morning, everyone. This is David Johnson and welcome to Mannatech’s first quarter 2017 earnings call. Today, you will hear from both me and Mannatech’s President and Chief Executive Officer, Al Bala. 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, could, would, anticipate, estimate, project, predict, hope, feel 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. In addition to the results presented in accordance with generally accepted accounting principles, or GAAP, I will discuss a non-GAAP financial measure, constant dollar net sales, which is sales that have been adjusted to exclude the impact of changes due to the translation of foreign currencies into U.S. dollars. I believe that this non-GAAP financial measure provides useful information to investors as it is an indicator of the strength and the performance of our ongoing business operations. This non-GAAP financial measure should not be considered an exclusive alternative to accompanying GAAP financial measures. A reconciliation of this non-GAAP financial measure to the most directly comparable GAAP measure is available on our recently filed 10-Q under the heading Non-GAAP Financial Measures. At this time, I will make a few comments concerning our first quarter of 2017 operating results. Net loss was $1.2 million or $0.46 per diluted share for the first quarter of 2017 as compared to a net income…

Well, thank you, David. Hello, everyone and thank you for joining us on our first quarter earnings call for 2017. I am Mannatech’s CEO and President and I would like to discuss the company’s first quarter of 2017. The first quarter results showed a story of Mannatech’s continued investment in its ongoing transformation and commitment to our future success. In the first quarter, Mannatech prepared for our annual global MannaFest event in Las Vegas. This was the very first time we held such an event outside of Texas, and it was the signal, the beginning of a new era for Mannatech. At this event, we launched two major new products and continued the socialization of our new comp plan to be launched in July of 2017. And this continued socialization is in order to mitigate the normal slight business slowdown, that tend to occur prior to comp plan launch. The efforts we put into the preparation for our global event, MannaFest event in April this year, and for the launch of the compensation plan later this year, represented major investment which we are already seeing strong returns. For example, this investment helped to increase our attendance to our global event and also to achieve record sales at MannaFest during the first week of April. With the excitement generated by the new product, we saw a significant increase in orders at this 3-day event. The new products GlycoCafe, which is the most complete coffee infused with Glyconutrients and GinMAX, a powerful dual-layer ginseng supplement that is the first of its kind represent consumer-friendly products at competitive price, easily shared with immediate impact. Mannatech has taken two commoditized products and applied our innovative development processes and technologies to result in two unique creations that offer customers valuable benefits and that sales associates…

Thank you for listening to Mannatech’s first quarter 2017 earnings call. As a reminder, company information and filings can be found at the company’s Investor Relations website, ir.mannatech.com, by reviewing SEC submissions. This concludes today’s call.