Good afternoon and welcome to the LifeVantage F4Q 2013 Conference. Today’s presentation is being recorded. I would now like to turn the call over to Mr. John Mills of ICR. John Mills – ICR : Thank you. Good afternoon, ladies and gentlemen, and welcome. Once a year the company has an opportunity to review the previous year’s events and provide you with its growing initiatives for the upcoming year. On the call today from LifeVantage who will be delivering this message are Doug Robinson, President & Chief Executive Officer; and Dave Colbert, Chief Financial Officer. By now everyone should have access to the earnings release which went out this afternoon at approximately 4:00 PM Eastern Time. If you have not received the release it is available on the investor relations portion of LifeVantage’s website at www.lifevantage.com. This call is being webcast and a replay will be available on the company’s website as well. Before we begin we would like to remind everyone that the prepared remarks contain forward-looking statements and management may make additional forward-looking statements in response to your questions. These statements do not guarantee future performance and therefore undue reliance should not be placed on them. These statements are based on current expectations of management and involve inherent risks and uncertainties including those identified in the “Risk Factors” section of LifeVantage’s most recently filed 10(k) and 10(q). These risk factors contain a more detailed discussion of the factors that could cause actual results to differ materially from those projected in any forward-looking statements. Also on today’s call we will be referring to GAAP and non-GAAP financial results. We have non-GAAP reconciliation tables in the earnings release and they will also be on our website. We are presenting adjusted gross profit, adjusted gross margin, adjusted operating income, adjusted net income, and adjusted earnings per share because management believes that excluding the product recall costs from the relevant GAAP measures when viewed with our results under GAAP and the accompanying reconciliations provide useful comparative information about our period-over-period profitability and provides additional information that is useful for evaluating our operating performance. This call also contains time-sensitive information that is accurate only as of the date of this live broadcast, September 12, 2013. LifeVantage assumes no obligation to update any forward-looking projection that may be made in today’s release or call. Based upon the number of participants in today’s call, during the Q&A session we ask that you please limit the number of your questions to three. And with that I would like to turn the call over to the company’s President and Chief Executive Officer Mr. Doug Robinson. Go ahead, Doug.

Thanks, John, and good afternoon everyone. On today’s call we’re summarizing our accomplishments, our challenges, our financial results and most importantly what we learned and how we got better in F2013. We will then discuss how we have positioned the company for growth in F2014, including a discussion of our top strategic initiatives that we believe will fuel that growth. First, let me remind you that only a year ago for F2012 we ended the year at $126 million in revenue. This followed F2011 where we generated revenue of nearly $40 million. Today we are reporting F2013 revenue of over $208 million. A year ago our growth year-over-year was 65%. It is this type of growth that enabled us to be recognized today by the Utah Business Magazine as the second-fastest growing company in Utah. We believe that these last three years have been remarkable in terms of our rate of growth. However, while we have seen significant year-over-year revenue growth during these last three years we have admittedly seen several quarters of relatively flat revenue, a subject about which I will speak today. I’ll also speak about ways that we plan to drive additional growth by strengthening our distributor culture, renewing in some cases and increasing in other cases the motivation and belief of our distributors in our products and business opportunity. I’ll also speak about ways that we are continuing to drive towards our goal of complete operational excellence. Let me be clear – we had some tough challenges last year. These challenges forced us to improve operationally. They caused our distributors to step back slightly and wait to see whether the headwinds would shift. Our message today is that the headwinds are shifting and they’re shifting in the right direction. We’re a better company operationally and our…

Thank you, Doug, and good afternoon everyone. As Doug mentioned earlier, in F4Q 2013 the company reported net revenue of $51.5 million compared to $44.6 million for the same period in F2012, an increase of 15.5%. Revenue for the quarter was negatively impacted by foreign currency fluctuation by 7.3% or $3.3 million. Gross profit in F4Q 2013 increased to $44.2 million from $38.2 million in the same period last year. Our gross margin in F4Q 2013 was 85.8% compared to 85.6% in the same period last year. The current quarter gross margin includes a benefit of approximately $600,000 due to a reduction in estimated expenses associated with the product recall earlier this fiscal year. Excluding this benefit, our F4Q non-GAAP gross margin was 84.6%. Operating income for F4Q 2013 was $200,000. This compares to $7.3 million in the prior-year quarter. Operating income for F4Q 2013 includes two large expenses. The first is a $1.7 million expense associated with the retirement of Dr. Joe McCord, our former Chief Science Officer. And the second is a $1.6 million expense associated with the launch of the My LifeVenture program. Going forward, we will recognize additional expenses associated with the My LifeVenture program but not at the same rate as those expenses just realized in F4Q 2013. The year-over-year decline in our adjusted operating income in F4Q 2013 is primarily due to lower sales growth in the quarter combined with certain expenses incurred in F4Q and higher ongoing operating costs due to the investments made throughout the year which included office expansions in the US and Japan, additional headcount, and spending on sales, promotions, and incentives. A short note on headcount: our global headcount as of June 30, 2013, was 240. This compares to 168 on June 30 in the prior year. As of…

Thanks, Dave. I’m excited about the key initiatives we have in place to drive growth in F2014 and look forward to updating you on our progress in our November call. And with that, Operator, I’d like to open the call up for questions.

Yes, thank you. (Operator instructions.) We’ll go first to David Rothman at Phoenix Capital. David Rothman – Phoenix Capital: Good afternoon, guys. Great call. I like what I’m hearing. A couple of real quick questions: recently you announced 55 Jeeps were awarded to I’m assuming some of your top distributors. Can you elaborate on what it takes to earn a Jeep and give a little more color to this program?

Sure, and thanks for your comments, Dave. It was great seeing you in Denver a few weeks back. The My LifeVenture program is absolutely key we believe to our future. It’s all about our culture that I spoke about in our prepared remarks with respect to the relationship and frankly the partnership that we believe we have and are building upon with our distributors. But most importantly and it’s really at the heart of your question, this program is not just for our elite distributors – which by the way, technically these are our level 7’s and above elites that maintain this rank for at least twelve months. Once they do that they have earned this Jeep. And this is not a car program that you typically see in network marketing companies that have lease programs or what have you. We actually sign the title over to these Jeeps to these distributors that have earned this status over twelve months. But importantly it’s also for those distributors who we refer to as our middle ranks – our 4s, 5s, and 6s, the people that are aspiring to become elite distributors. When they see the culture and what we’re building at these levels, we believe that belief that I spoke about in my prepared remarks is really enhanced and it comes to life with these middle ranked distributors. So we are incredibly bullish on the My LifeVenture program because it really demonstrates and personifies this partnership that we have that we think is second to none and absolutely unique here at LifeVantage. David Rothman – Phoenix Capital: Sounds good. Second question and actually I do have three, I had another one. Second question is the Dutch tender offer, assuming that you’re successful in that share repurchase program where would you put the outstanding number of shares as of say the end of the year? And I’m assuming that will also affect guidance.

Yeah, David, it will affect the shares outstanding and it will affect guidance, but as I mentioned in my prepared remarks we’re still finalizing. We’re negotiating the final terms of the credit facility so we don’t know the price that’s going to be tendered, the total number of shares that will be tendered which will ultimately affect not only the EPS on the shares outstanding but also on the credit facility – what’s the final effect it’s going to have on net income. So the point is our guidance is without the credit facility and without the tender offer and when we do have final information and we can inform our investor base as to what that transaction looks like we’ll certainly communicate it out. David Rothman – Phoenix Capital: Sure. Last question is what is the company’s goal for this program? It seems to be an ongoing theme, and I applaud that – stock repurchase programs and the Dutch tender offer. Where would you like to be in a couple of years? Where are we going with this program?

The way that we view it is really one of potentially a series of repurchase programs. We’re bullish on the future of how we’re improving profitability and improving our cash flow, so again, the final terms of the credit facility will determine and dictate how soon we can get through this first bite at the apple, if you will; and then quite frankly possibly go after it again until we get to a satisfactory level of total shares outstanding. So again, we view this and as Doug mentioned, we like to think of this company on a long-term basis – not one year but three to five plus years out. And that’s how we view this program; it’s a long-term program. David Rothman – Phoenix Capital: Thank you, gentlemen. Again, I like what I’m hearing and I look forward to seeing how you execute on your guidance for F2014.

Thanks, we appreciate your questions.

(Operator instructions.) And we’ll go next to Jim Galloway, private investor. Jim Galloway – Private Investor: Hi, Doug, good call. My questions are about science and R&D. I would have expected with the [NRF2] designation that the number of scientific studies undertaken on our products would have increased, yet we haven’t had a published study on Protandim in almost a year and we haven’t had any studies on either TrueScience or Canine Health. Can you give us an update on the ongoing studies for each of the products, knowing you can’t control their timelines; and throwing in there is there a study undergoing on Japanese reformulation?

Yeah, great, thanks Jim. Thanks for your questions. You’re absolutely right. As part of your question, we don’t control the pace that these studies are conducted, their outcomes, when papers are actually submitted for publication, etc. That said we do know that there are a number of studies ongoing. We typically know this because we provide product as these studies are being conducted. If I made a mistake in the past or the company did, and I’m here to admit we were a little overzealous about identifying certain studies and what they were pursuing and what have you; where in hindsight, since we don’t control the studies, they’re done by third-party research institutions as you well know – by the likes of Louisiana State, Ohio State University, etc., etc. – I think it’s better that we refrain from being more specific about these studies especially since we don’t conduct them. So again, we’re not going to comment more specifically than that other than to say there are ongoing studies really for all of our products including the reformulated Japan product as well. So we’re excited about science, R&D. As you hear me say time and again, we are a research-based, science-backed company at our core and we will continue to be so on a go-forward basis. That is absolutely our commitment to our public. So we’re bullish about where we are and where we’re headed. When we have more information, when studies are ready to be published and come out you’ll certainly see as you’ve come to know in the past press releases and more information around that. Jim Galloway – Private Investor: One last question: you talked a little bit about the R&D Team is working on new products and all, and reformulating the Chief Science Officer position. Can you give us a little more insight on that because I’d like to know who’s responsible in that area and we no longer even have a Scientific Advisory Board – is that going to be reconstituted?

Yes, yes, and yes. Let me be specific. First, on the Scientific Advisory Board, we do have a Scientific Advisory Board with some of the same members that we’ve had in the past. They consult regularly to us. Many of the Scientific Advisory Board members are actually members of the research organizations that are conducting studies as we speak s they consult with us in that way. Secondly we have a team inside the four walls of LifeVantage that are working very closely on all of the things that I mentioned in my prepared remarks with respect to our current products, future product considerations both organically – meaning developed on our behalf – as well as inorganically. And these are companies that are out there that have very efficacious products in the healthy living space that we might partner with, acquire, license, what have you. We’re evaluating all those things as we speak literally. Lastly with respect to our Chief Science Officer search, we set the bar very high and I’m quick to admit as much and appropriately so. With the official retirement of Dr. McCord at the end of June, 2013, one would think that the pressure is on if you will to name his successor and in some respects that’s true. But I will not sacrifice quality for the sake of expediency. We are conducting interviews, we’re working with a national search firm for the best possible candidates in this Chief Science Officer role. And I expect based upon the quality of candidates that we’re fielding that we’re going to have an announcement sometime in the not-too-distant future that we’ll be absolutely proud of and you will as well, Jim. Jim Galloway – Private Investor: Well thank you. I hope to see that person on stage in St. Louis. Thanks again. Jim Galloway – Private Investor: Thanks Jim.

And our next question comes from Steven Martin of Slater Capital Management. Steven Martin – Slater Capital Management : Hi guys. Last year you had an operating margin of about 17% and disregarding this year you’re projecting 9% to 10% for next year. Where do you think you can get back to? Do you get back to the 17% and how soon can you do it, and what are the obstacles and push points to get there?

Yeah, great question Steve. A couple points: absolutely we aspire to have our operating margins really on a long-term sustainable basis in the mid-teens. 17% last year, and you may recall even in some of our one-on-one meetings and discussions and I think even in conference calls like this I talked about in F2011 and into F2012 when we were growing at such a rapid pace we were chasing revenue. We did not have the infrastructure frankly to support the revenue and the revenue growth. That’s why going into F2013 we made a concerted effort to grow the infrastructure of the company to sustain growth and to sustain profitability on a go-forward basis. So said another way, 17% was probably ahead of ourselves because of how lean we were internally. Certainly our result for F2013, given all the extraordinary events was nowhere near where we expect to be. At the heart of your question, when do we hope to get back to that mid-teens as I said? I would hope that we’re there this time next year quite simply and then maintain and grow from there, because as you well know, Steve, in this business, in network marketing there is a tremendous opportunity to leverage our business and we know that. We’re building this company for the long haul so that we can return maximum shareholder value. Steven Martin – Slater Capital Management : Alright, thank you very much.

Thanks, Steve.

And we have no more questions at this time.

Well thanks, everyone, and again thank you for very much your support, your continued support, your interest in this company. We are incredibly excited about our future and where we’re headed. We’ll be out and about at many different investor meetings in the coming months. We hope to see some or many of you there, and importantly in three months in November we look forward to updating you on our progress through F1Q 2014. Again, thank you very much.

This concludes today’s call. Have a wonderful day.

Thanks!