Greetings and welcome to the Nature's Sunshine Product's First Quarter 2016 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow a formal presentation. [Operator Instructions]. As a reminder this conference is being recorded. I would now like to turn the conference over to your host Richard Strulson, General Counsel and Chief Compliance Officer of Nature’s Sunshine Products. Thank you, Mr. Strulson. You may begin.

Thanks. Good afternoon, everyone. And thanks to all of you for joining our conference call to discuss our first quarter 2016 financial results. This call is available for replay in a live webcast that we posted on our Web site at www.naturessunshine.com in the Investors section. The press release which was issued this afternoon at approximately 4:00 pm Eastern Time and the information on this call contains certain forward-looking statements, which are based on a number of assumptions that are subject to change and involve known and unknown risks, uncertainties or other factors which may not be within the Company's control. These statements are often characterized by terminologies such as believe, hope, may, anticipate, expect, will, and other similar expressions. Forward-looking statements are not guarantees of future performance and the actual results, performance or achievement of the Company may be materially different from the results, performance or other expectations implied by these forward-looking statements. These factors include, but are not limited to those factors disclosed in the Company's Annual Report on Form 10-K, under the caption Risk Factors and other reports filed with the Securities and Exchange Commission. The press release and the information on this call speak only as of today's date and the Company disclaims any duty to update the information provided herein and therein. I'll now turn the call over to Greg Probert, Chairman and CEO of Nature's Sunshine Products.

Thanks, Rich. Good afternoon everyone and thank you for your participation in today's call. Joining me today is Steve Bunker our Executive Vice President CFO and treasurer. While our overall results continue to be depressed by currency headwinds and challenges in Russia, Central and Eastern Europe. I am pleased with our first quarter results. Net sales of $82.4 million were up 1.3% on a local currency basis which reflected the strong progress we have made towards returning Nature's Sunshine to sustainable long-term growth. Nobel developments included, ongoing strong execution in our NSP United States and NSP Canadian businesses, which both close to their seventh consecutive quarters of year-over-year local currency sales growth. Synergy worldwide best first quarter ever driven by successful business model and process improvements taking hold in our key Asian markets and finally positive progress in China towards obtaining our direct selling license in the third quarter of 2016 through our Joint venture with Fosun Pharma. Now turning to our segment results. NSP America's first quarter sales of $45.2 million decreased by 0.9% year-over-year in local currencies and represented 55% of total company sales. NSP U.S. and NSP Canada both achieved their seventh consecutive quarters of year-over-year local currency sales growth of 1% and 3.1% respectively. Our IN.FORM business model which is focused on both weight management and building a daily habit of health has been the primary driver of growth in the region. Through the end of the first quarter, we had a total of 1336 coaches certified. The majority of which are practitioners and 413 groups up and running to help facilitate adoption of this program. In fact, both practitioners and retailers that are utilizing in form are significantly outperforming those and are not. The incremental additions of coaches and groups also experience double digit increases…

Thanks, Greg, and good afternoon everyone. Net sales in the quarter were $82.4 million down 1.8% from $83.9 million in the same quarter last year. However, on a local currency basis, net sales increased by 1.3% year-over-year. The reported decrease was primarily driven by a $2.5 million unfavorable impact from foreign currency exchange rate fluctuations as well as a $1.1 million reduction in net sales in the NSP Russia, Central and Eastern Europe segment. Cost to sales were $22.0 million up slightly from $21.9 million in the year ago period. Cost to sales increased modestly as a percentage of net sales in the first quarter by 0.6% to 26.7% as compared to the prior year quarter. The strengthening of the U.S. dollar against the local currency and many of our form markets increased cost to sales by approximately 0.8% in the first quarter of 2016 which made our products manufactured in the U.S. more expensive in those markets. As a result, gross margin sales of 73.3% from 73.9% in the year ago period, primarily as a result of the increased cost of sales percentage during the first quarter. Volume incentives accounted for 36.3% of net sales in the first quarter a slight increase from 36.2% of net sales in the same period last year. Volume incentives vary slightly on a percentage basis byproduct, due to pricing policies and commission plans in place and by the sales mix in our various markets. Volume incentives are a significant part of our network marketing program and are designed to incentivize higher product sales. Selling general and administrative expenses were $28.4 million up $2.1 million or 7.8% compared to $26.3 million in the same period a year ago. Our investment in China totaled $1.4 million for the quarter as compared to $0.8 million in…

Thanks again for your support and for participating in today's call. In late May we will be presenting at the B. Riley & Company 17th Annual Investor Conference in Los Angeles. We hope to see many of you there. Have a great day.

Ladies and gentlemen this does conclude today's teleconference. Thank you for your participation. You may disconnect your lines at this time. And have a wonderful day.