Good day, ladies and gentlemen. Thank you for standing by. Welcome to today’s conference call to discuss LifeVantage’s Fourth Quarter and Full Fiscal Year 2022 Results. At this time, all participants are in a listen-only mode. Following the formal remarks, we will conduct a question-and-answer session. Instructions will be provided at that time for you to queue up. Hosting today’s conference will be Reed Anderson with ICR. As a reminder, today’s conference call is being recorded. And now, I would like to turn the conference call over to Mr. Anderson. Thank you, sir. Please go ahead, sir.

Thank you. Good afternoon, and welcome to LifeVantage Corporation’s conference call to discuss results for the fourth quarter and full fiscal year 2022. On the call today from LifeVantage with prepared remarks are Steve Fife, Chief Executive Officer; and Carl Aure, Chief Financial Officer. By now, everyone should have access to the earnings release, which went out this afternoon at approximately 4:05 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 our 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 upon them. These statements are based on current expectations of the company’s management and involve inherent risks and uncertainties, including those identified in the Risk Factors section of LifeVantage’s most recently filed Forms 10-K and 10-Q. Please note that during today’s call, we will discuss non-GAAP financial measures, including results on an adjusted basis. Management believes these financial measures can facilitate a more complete analysis and greater transparency into LifeVantage’s ongoing results of operations, particularly when comparing underlying operating results from period to period. We’ve included a reconciliation of these non-GAAP measures with today’s release. This call also contains time-sensitive information that is accurate only as of the date of this live broadcast, August 23, 2022. LifeVantage assumes no obligation to update any forward-looking projections that may be made in today’s release or call. Now, I will turn the call over to Steve Fife, the Chief Executive Officer of LifeVantage.

Thanks, Reed and good afternoon, everyone. Thank you for joining us today. With me is Carl Aure, our Chief Financial Officer, who will join me with prepared remarks before we turn the call over for Q&A. Fourth quarter results were in line with our expectations and we are very pleased with early progress on key initiatives around innovation and driving engagement across our base of customers and independent distributors. Revenue was $51 million was within our guidance reflecting a challenging operating environment including $2 million of FX headwinds. Excluding the impact of currency, revenue was down approximately 3% on a year-over-year basis. On a sequential basis, fourth quarter revenue rose approximately 2% and was up over 4% excluding the negative impact of foreign currency. We also delivered 100 basis points of improvement in gross margin on a sequential basis. Profitability in the quarter was impacted as COVID-related cost savings primarily from events and travel savings realized in the past couple of years are now coming back into play as we build to a new normal business model. These costs come back in advance of the anticipated revenue – revenue growth, the strength of our balance sheet including $20 million in cash and no debt allows us to continue invest in our future while also providing shareholders a return through our dividend and repurchase programs. So, a bit more about our quarterly revenues. Results in our international markets continue to show solid momentum in the fourth quarter. Our APAC Europe region revenue increased 4% sequentially compared to the third quarter and was up over 11% excluding the negative impact of foreign currency aided by an 8% increase in active independent distributors. As the market in the Philippines continues to gain traction from leaders globally, we held our grand opening in June,…

Thank you, Steve, and good afternoon, everyone. Let me walk you through our fourth quarter financial results. Please note that I will be discussing our non-GAAP adjusted results. You can refer to the GAAP to non-GAAP reconciliations in today's press release for additional details. Fourth quarter revenue was $50.9 million, down 7% on a year-over-year basis, and up 1.9% sequentially from the third quarter. Foreign currency fluctuations negatively impacted revenue by $2.1 million in the fourth quarter. Excluding the negative impact of foreign currency fluctuations, fourth quarter revenue was down $1.7 million or approximately 3%. Revenue in the Americas region declined 10.5% compared to the prior year period of $33.7 million, primarily driven by a 10.9% decrease in total active accounts. Revenue in our Asia Pacific region increased 0.7% to $17.2 million year-over-year, despite a 2% decrease in total active accounts driven by an increase in average revenue per account. We continue to be encouraged by the positive results we are seeing in the Philippines, due to continued distributor leadership development and advancement as well as the continued growth in Thailand, Taiwan and China. This was partially offset by lower revenue in Japan, which was primarily attributable to the negative impact of foreign currency. On a constant currency basis, revenues in Japan decreased by approximately 2%. Gross margin was 81.7% in the fourth quarter, compared to 82.1% in the prior year period. The decrease in gross margin was primarily due to increased raw material and manufacturing-related cost, increased inventory obsolescence expenses, elevated shipping expenses, along with shifts in geographic and product sales mix. Commissions and incentive expense in the fourth quarter increased $1.1 million year-over-year. As a percentage of revenue, commissions and incentive expense increased 140 basis points to 48.1% versus year ago levels, which was primarily driven by an…

Thanks, Carl. The actions we are taking to transform LifeVantage and reenergize growth are starting to gain traction despite a challenging environment. Over the next several quarters, we will continue making focused investments in information technology, marketing and selling initiatives. This should put us in a strong position for accelerated revenue in the future. We have a unique portfolio of high quality, innovative products supported by a large global base of independent distributors, a strong balance sheet and a talented and experienced management team committed to driving long-term value for our shareholders. With that, let me turn the call back over to the operator for questions. Operator?

Thanks, John, and thank you, everyone for joining us today. I closing I just want to take the opportunity to thank all of our employees for their hard work and dedication, as well as our outstanding team of independent distributors and loyal customers. We remain confident in our business model and are focused on delivering the LifeVantage products, our customers depend on. We hope you stay safe and healthy and look forward to updating you on our next call. Have a great day.