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Transcript
OP
Operator
Operator
Greetings and welcome to the Mannatech, Incorporated Third Quarter 2017 Earnings Conference Call. At this time, all participants are in a listen-only mode. As a reminder, this conference is being recorded. Now, I would like to introduce our moderator of the call today, Mr. David Johnson, Chief Financial Officer. Mr. Johnson, you may begin.
DJ
David Johnson
Management
Thank you. Good morning, everyone. This is David Johnson and welcome to Mannatech’s third 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 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 results presented in accordance with the 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 performance of our ongoing business operations. This non-GAAP financial measure should not be considered an exclusive alternative to the accompanying GAAP financial measures. A reconciliation of this non-GAAP financial measure to the most directly comparable measure is available on our recently filed 10-Q under the heading Non-GAAP Financial Measures. On July 1, 2017, we revised our associate compensation plan, which was designed to stimulate business growth and development for our active business building associates and to maximize the buying experience of our preferred customers. In doing so, we hope to…
AB
Al Bala
Management
Thank you, David and hello everyone and thank you for joining us on our third quarter earning call for 2017. I am Mannatech's CEO and President and I would like to discuss the company's third quarter of 2017. However, before discussing the third quarter results, I would like to acknowledge the passing of the legend of the direct selling industry and a very dear friend of the Mannatech family, Mr. Allen Kennedy. Mr. Allen Kennedy served on the Mannatech Board of Directors from 2002 to 2015. Allen served as a member of the Board as an Independent Director on key committees and retired from the Board in 2015 when he last served as the Chairman of the Compensation Committee. Mr. Kennedy was a direct selling associate and a Hall of Famer will also served as CEO of Nature's Sunshine and a President of the Tupperware Company. Our thoughts and prayer go to the family. On July 1 after two years of design work, computer modeling and socializing with our key associate leaders from around the world, we launched our much anticipated new compensation plan. This new compensation plan was designed to be a simpler, more aggressive compensation plan that would serve as a catalyst to ignite our sales force globally. The new compensation plan is very consumer-centric and provides income stream to promote and incentivize key associate behaviors that can create and enable long-term viable businesses. The plan includes 10 new leadership levels and titles which provides for a better associate experience and profitability in the first 90 days and enables a smooth transition from level to level. The new compensation plan makes a clear distinction between preferred customer and those who choose to build the business. And the new plan mandatory pack sales have been replaced with a modest…
OP
Operator
Operator
Thank you for listening to Mannatech's third quarter 2017 earnings calls. As a reminder, company information and filings can be found at the company's Investor Relations website ir.mannatech.com or by reviewing SEC submissions. This concludes today's call.