Earnings Labs

USANA Health Sciences, Inc. (USNA)

Q1 2018 Earnings Call· Wed, Apr 25, 2018

$19.55

+0.88%

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Transcript

Presentation

Management

Operator

Operator

Please standby, we are about to begin. Good day. And welcome to the USANA Health Sciences First Quarter Conference Call. Today’s call is being recorded. At this time, I’d like to turn the conference over to Patrique Richards. Please go ahead, sir.

Patrique Richards

Management

Good morning, everyone. We appreciate you joining us this morning to review our first quarter results. Today's conference call is being broadcast live via webcast and can be accessed directly from our website at ir.usana.com. Shortly following the call, a replay will be available on our website. As a reminder, during the course of this conference call, management will make forward-looking statements regarding future events or the future financial performance of our company. Those statements involve risks and uncertainties that could cause actual results to differ, perhaps materially, from the results projected in such forward-looking statements. Examples of these statements include those regarding our strategies and our outlook for fiscal year 2018. We caution you that these statements should be considered in conjunction with disclosures, including specific risk factors and financial data contained in our most recent filings with the SEC. I am joined this morning by our CEO, Kevin Guest; President and Chief Operating Officer, Jim Brown; and our Chief Financial Officer, Doug Hekking; as well as other executives here in the room with us. Yesterday, after the market closed, we announced our first quarter results and posted our Management Commentary, Results and Outlook document on the company's website. Before opening the call for questions, we'll first hear brief remarks from Kevin.

Kevin Guest

Management

Thanks, Patrique. Good morning and thank you for joining us to review our first quarter results. We are very pleased to report another quarter of excellent results for USANA. This is exactly how we plan to start the year. The launch of Celavive was certainly the highlight of the quarter for us. We systematically launched this product line around the world, beginning with Australia, New Zealand, Malaysia and Singapore in January, followed by the United States, Canada and other markets throughout the remainder of the quarter. Our data which includes unit volume, customer feedback and sequential quarter preferred customer growth suggests that Celavive has been well-received by our customer base. The sequential quarter preferred customer growth is particularly important to us as one of our 2018 initiatives in growing our preferred customer base around the world. Keep in mind that we have not launched Celavive in China, but plan to do so in the fourth quarter. We expect this launch to be just as exciting and successful as the launch that occurred in the first quarter. Our strategy for Celavive also includes rolling out additional complementary products to this line in 2018 and we will update you on that aspect of the strategy on future calls. On a regional basis, our overall results continue to be driven by our Asia-Pacific region and China in particular. Our results in China reflect the strong customer response generated by the product promotion we offered in that market, as that promotion contributed approximately $11 million to sales for the quarter. Additionally, we are very close to rolling out our new WeChat platform in China. As you know, WeChat is China's most widely used do-it-all app because of its wide range of functionality. This platform will make it easy for our China sales force to…

Operator

Operator

Thank you. [Operator Instructions] And we go to our first question from Frank Camma with Sidoti.

Frank Camma

Analyst

Kevin Guest

Management

Doug Hekking

Analyst

Frank Camma

Analyst

Kevin Guest

Management

Doug Hekking

Analyst

Frank Camma

Analyst

Kevin Guest

Management

Frank Camma

Analyst

Kevin Guest

Management

Frank Camma

Analyst

Kevin Guest

Management

Frank Camma

Analyst

Kevin Guest

Management

Frank Camma

Analyst

Doug Hekking

Analyst

Operator

Operator

[Operator Instructions] We’ll go next to Douglas M. Lane with Lane Research.

Douglas M. Lane

Analyst

Kevin Guest

Management

Doug Hekking

Analyst

Douglas M. Lane

Analyst

Kevin Guest

Management

Douglas M. Lane

Analyst

Kevin Guest

Management

Douglas M. Lane

Analyst

Kevin Guest

Management

Douglas M. Lane

Analyst

Kevin Guest

Management

Douglas M. Lane

Analyst

Kevin Guest

Management

Doug Hekking

Analyst

Kevin Guest

Management

Douglas M. Lane

Analyst

Kevin Guest

Management

Douglas M. Lane

Analyst

Kevin Guest

Management

Douglas M. Lane

Analyst

Kevin Guest

Management

Douglas M. Lane

Analyst

Doug Hekking

Analyst

Operator

Operator

And it appears there are no further questions at this time. I’d like to turn the conference back to Mr. Patrique Richards for any additional or closing remarks.

Patrique Richards

Management

Thank you for your questions and for your participation on today's conference call. If you have any remaining questions, please feel free to contact Investor Relations at 801-954-7961.

Operator

Operator

This concludes today's conference. We appreciate your participation. You may now disconnect.