Greetings, and welcome to the Natural Health Trends Corp. Fourth Quarter and Full Year 2020 Earnings Call. [Operator Instructions]. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Ms. Kim Orlando, Investor Relations for Natural Health Trends. Thank you. You may begin.

Thank you, and welcome to Natural Health Trends Fourth Quarter and Full Year 2020 Earnings Conference Call. During today's call, there may be statements made relating to the future results of the company that are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Actual results, performance or achievements could differ materially from those anticipated in such forward-looking statements through the result of certain factors, including those set forth in the company's filings with the Securities and Exchange Commission. It should also be noted that today's call will be webcast live and can be found on the Investors section of the company's corporate website at naturalhealthtrendscorp.com. Instructions can be found for accessing the archived version of the conference call in today's financial results press release, which is issued at approximately 9:00 a.m. Eastern Time. At this time, I'd like to turn the call over to Chris Sharng, President of Natural Health Trends.

Thank you, Kim, and thanks to everyone for joining us this morning to discuss our fourth quarter and full year 2020 financial results. With me today is Scott Davidson, our Senior Vice President and Chief Financial Officer. I'll begin with a review of our full year financial performance, which reflected the significant impact the ongoing pandemic had on our operations in 2020. Revenue of $62.1 million decreased 20% compared to $77.6 million in 2019 as elements outside of our control such as government-mandated travel restrictions, shutdowns and limitations surrounding in-person events and activities hinder our leaders' ability to conduct business. As such, we have been focused on elements within our control, such as: Number one, further reducing our cost structure; number two, ensuring our incentives remain attractive to our leaders and member base; and number three, expanding our operations in emerging markets. The cost savings initiatives we implemented, starting in the second half of 2019, have resulted in substantial 2020 cost reductions. As a result, we reported full year operating income of $669,000, a significant improvement compared to an operating loss of $7 million in 2019. These expense reduction measures were enacted without reducing headcount, and were focused on structural decreases, much of which is not expected to return to previous levels even as company sponsored activities slowly resume in 2021 and beyond. Importantly, for the fourth quarter of 2020, total revenue of $16.6 million increased 17% over the third quarter of 2020, with total fourth quarter orders improving 14% worldwide versus Q3. In addition, we achieved our third consecutive quarter of positive operating income. Beginning in the August, September timeframe, certain COVID-19-related restrictions began to ease in our key markets, which enabled us to sponsor some smaller events and therefore, reinvigorate order activity. In November, we held our first…

Thank you, Chris. Total revenue for the fourth quarter was $16.6 million, a decline of 7% compared to $17.8 million in the fourth quarter of 2019 and an increase of 17% compared to $14.1 million in the third quarter of 2020. As Chris highlighted, the 14% increase in order volume over the prior quarter drove the sequential increase as member activities were able to slowly resume on a smaller scale. For the full year of 2020, total revenue was $62.1 million compared to $77.6 million in 2019. The year-over-year declines in revenue for the fourth quarter and full year 2020 were primarily due to the difficult operating conditions that arose from COVID-19, and the resulting challenges the pandemic has presented for our members as they work to overcome meeting, event and travel restrictions to conduct their business. While we are cautiously optimistic macroeconomic conditions will improve, we expect our financial performance may continue to be adversely impacted in the near term as some of our markets have experienced resurgences of COVID-19 that have required renewed restrictions and closures. Our active member base decreased 2% to 52,230 at December 31 from 53,300 at September 30 and was down 9% from 57,400 at December 31 last year. Turning to our cost and operating expenses. Gross profit margin of 75.8% increased from 71.4% in the fourth quarter last year due to lower logistics costs and an increase in administrative fee revenue. For the full year, our gross profit margin of 72.6% declined from 74.1% in 2019. Commissions expense as a percent of total revenue for the fourth quarter increased to 41.4% from 40.9% in the prior year quarter due to higher incentive costs, partly offset by the increase in administrative fee revenue. On a full year basis, commissions expense was 42.2% of total…

Thank you. Thank you, ladies and gentlemen, for your participation. This concludes today's conference. You may now disconnect your lines. End of Q&A: