Thank you. Good afternoon, and thanks for joining our conference call to discuss our first quarter 2024 financial results. I'd like to remind everyone that this call is available for replay via telephonic dial-in through May 21 and via a live webcast that will be posted in the Investor Relations portion of our website, at ir.naturesunshine.com. The information on this call contains forward-looking statements. 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 may be materially different from the results implied by forward-looking statements. Factors that could cause results to differ materially from those implied herein 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 information on this call speaks only as of today's date, and the company disclaims any duty to update the information provided herein. Now I would like to turn the call over to the CEO of Nature's Sunshine, Terrence Moorehead. Terrence?

Thank you, Nate, and good afternoon, everyone. I want to thank you for joining today's call to discuss our first quarter results as we continue to advance our global growth strategies: digital first, brand power, and field energy. And in the first quarter, we continued to gain traction and delivered positive results. Today, I'll provide some context for our first quarter performance and offer some insights on how we believe the business is progressing. From there, Shane will take you through our financials in more detail. During the first quarter, our omnichannel approach, high-quality products, and field activation initiatives combined to drive continued momentum in the business as net sales came in at $111 million, up 4% versus the prior year on a constant dollar basis, outpacing the market once again. EBITDA slightly improved in the quarter, coming in at $9.2 million, flat versus the prior year as increased macroeconomic headwinds placed added pressure on the business, especially gross margins. I'll come back to discuss gross margins a little bit later. But first, I want to talk about our strategic investments in digital and field activation that continue to have a positive and transformative impact on our business. For the quarter, we continued to see strong results in North America as revenue outpaced industry trends with a 5% increase in net sales. Importantly, digital sales surged 33% and as new customer growth increased 34%, driven by strong consumer campaigns and attractive creative content. Our New Year, New You digital campaign kicked off the year, generating strong sales and consumer engagement by featuring some of our most attractive products. Beyond the strong digital performance, we were also pleased to see continued stability with our nutritional health practitioners and specialty retailers. Overall, we're very excited about the momentum we're seeing and believe our omnichannel approach is the key to long-term sustainable growth. In 2024, we expect to build on this momentum by further expanding our digital footprint while increasing the performance of our practitioners and retailers. In Asia Pacific, first quarter sales were up 5% in local currency, led by strong growth in Taiwan and South Korea. The challenging economic environment in China negatively impacted performance as macroeconomic headwinds reduced the effectiveness of our customer activation initiatives. Our digital live streaming model is a powerful customer growth driver, but the current economic environment is extremely challenging. Importantly, we continue to be very positive about the long-term potential of our business in China. In Europe, the first quarter marked a return to growth as sales increased 2% in local currency. The successful launch of our new Power Line products in Central and Eastern Europe helped generate increased customer activation as orders increased 7%, supported by strong field activation. We expect the positive momentum to continue to generate year-over-year sales growth for the remainder of the year. Returning to gross margins, we remain committed to delivering the $10 million of gross cost of goods savings we previously discussed. Our team has already verified the savings and is making excellent progress implementing our key supply chain initiatives. In 2024, we expect to see gradual improvement in our gross margins, with quarterly fluctuations driven by mix, seasonal promotions, and fluctuating costs. Importantly, we're taking the appropriate steps to ensure we achieve our goal. Finally, I'm pleased to announce that we recently released our 2023 Impact Report. Our sustainability and transparency initiatives demonstrate our commitment to making a positive difference for our planet and its people. And we continue to set bold goals around emissions, waste reduction, renewable energy, and more. As we near the completion of our 2025 goals, we know that there's still much more to do, and we look forward to making additional strides that will take us to an entirely new level in the years to come. Our 2023 Impact Report can be found on the Sustainability section of our website, and I encourage you to look at some of the exciting things that our organization is doing. In summary, we're very pleased with the progress we've made on our key strategies, and our first quarter results demonstrate the strength and resilience of our business. I'd like to leave you with the following thoughts. First, our business continues to outperform the market, with sales growth driven by strategic investments in digital, field activation, and brand-building initiatives. Working in combination, these investments have allowed us to attract and retain more new customers, drive order growth, and build momentum in the market. Second, we're committed to delivering the $10 million of gross cost of goods savings that we've previously discussed. We're already well into the process, and we expect to see gradual improvements in our 2024 gross margins. Third, and finally, we've built a strong financial position with a solid balance sheet and strong positive cash flow that will allow us to continue to invest in our growth strategies as we move forward. We're still operating in a very challenging external environment, but our team is focused. They continue to execute our strategies well and we believe that as we look forward, we'll continue to drive positive momentum in 2024 and beyond. With that, I'd like to turn the call over to our Chief Financial Officer, Shane Jones. Shane?

Thank you, Terrence. We are excited about the momentum in our key markets, especially in North America where the turnaround continues, driven by our healthy and growing digital business. Consolidated net sales in the first quarter were $111 million compared to $108.6 million in the year-ago quarter, representing a 4% increase on a local currency basis or 2%, including the impact of foreign exchange. The increase was driven by strong performance in our digital business, along with continued robust growth in Taiwan. Looking at results by market in the first quarter. Asia Pacific sales grew 5% on a local currency basis to $46.2 million despite significant macroeconomic pressure. Foreign exchange rates posed a $2.5 million headwind, yielding basically flat year-over-year results net of FX. In addition to the foreign exchange impact in Asia, poor macroeconomic conditions, along with deteriorating consumer sentiment in China, impacted results in that market with sales down 13% or 9% on a local currency basis. While our digital live streaming approach has been well received by consumers, current leading indicators suggest that the difficult macroeconomic situation is likely to deter growth in China for the near term. In Japan, sales were up 3% on a local currency basis. But due to the recent spike in the yen-dollar exchange rate, sales were down 8% net of foreign exchange. The sequential dip in growth is primarily due to the timing of events, and we expect to be back on track with stronger growth through the remainder of the year. Taiwan continues to show strong momentum, reporting 15% growth on a local currency basis, or 11% including foreign exchange during Q1, driven by the adoption of Subscribe & Thrive along with strong overall execution in the field. Korea also showed good momentum in Q1, with sales on a local currency basis growing 8%, were up 3% including the impact of foreign exchange. This represents their best quarter in nearly two years and supports our belief that we are in the early stages of a turnaround there as the team builds out sales tools and capabilities, focuses on improved customer acquisition and activation, and continues to drive sequential improvement in order growth. We anticipate this turnaround will take additional time but are confident that we are taking the right steps to return to sustained growth later this year. In North America, Q1 sales grew 5% versus last year to $36.5 million as a result of strong digital adoption, combined with a continued robust increase in new customers during the quarter. Digital sales grew 33%. New customers increased by 34% and average order value improved 10% versus the prior year. These metrics, along with a 6% increase in Subscribe & Thrive revenue, provide a strong signal regarding the opportunity of this channel and continue to validate our belief regarding its potential. Sales in Europe increased 2% on a local currency basis, or 4% including the impact of foreign exchange. This is reflective of strong performance in Central Europe, driven by outstanding customer engagement with our recently launched Power Line products, along with relative stability in Eastern Europe. Now shifting to margins. Gross margin in the first quarter increased 33 basis points to 71.2% compared to 70.8% a year ago. The increase was driven by our gross margin improvement initiatives, which were partially offset by increases related to inflation and unfavorable foreign currency exchange. We continue to be pleased with the progress that we are making with our gross margin initiatives, expect continued savings throughout this year and reiterate our commitment to meet or exceed our $10 million goal. In addition to our gross margin initiatives, we will continue to consider targeted price increases on certain products and in certain markets to account for increases in inflation and foreign exchange. Volume incentives as a percentage of net sales were 30.2% compared to 30.5% in the year-ago quarter. The decrease was primarily due to changes in market and channel mix. As our digital business continues to grow, we would expect volume incentives as a percentage of net sales to continue to decline. Selling, general and administrative expenses during the first quarter were $40.8 million compared to $43.6 million in the year-ago quarter. The decrease was driven primarily by a nonrecurring loss in Japan in the prior year. As a percentage of net sales, SG&A expenses were 36.7% in the first quarter compared to 40.2% in the year-ago quarter. Excluding Japan-related charges of $5.8 million, SG&A was 36.7% in the first quarter compared to 34.8% a year ago, with the increase driven by global compensation and the timing of event expenses. Operating income increased to $4.6 million compared to $0.2 million in the year-ago quarter. GAAP net income attributable to common shareholders for the first quarter was $2.3 million or $0.12 per diluted common share compared to $0.9 million or $0.04 per diluted share in the year-ago quarter. Adjusted EBITDA, as defined in our earnings release, increased slightly to $9.2 million compared to $9.1 million in the year-ago quarter. Our balance sheet remains clean with cash and cash equivalents of $77.8 million and $2.1 million of debt. Inventory was $62.7 million at the end of the first quarter, which is $4.2 million less than we ended 2023. Net cash provided by operating activities was $3.1 million compared to $9.3 million in the prior year period, reflecting the timing of incentive compensation payments in 2024. As part of our capital allocation plan, we repurchased 105,000 shares in the quarter for $1.8 million or an average price of $17.61 per share. As of March 31, 2024, $15.8 million remains of our $30 million share repurchase program. Looking beyond share repurchases, our healthy capital allocation structure positions us well to continue our digital transformation and other strategic initiatives. Now turning to our 2024 outlook. We are reiterating our financial targets and continue to expect full year 2024 net sales to range between $455 million and $480 million. As a reminder, this includes an estimated 100 basis point headwind to growth due to foreign exchange. As such, our guidance equates to constant currency growth of 3% to 9%. Please note that we expect sequential improvement in sales as we progress through the year. But due to the difficult year-over-year comparison in Q2, growth is likely to be more weighted to the back half of 2024. We also continue to expect adjusted EBITDA to range between $42 million and $48 million. Overall, we are pleased with the progress we are making in each of our markets, encouraged by continued customer growth in digital, and confident in our ability to continue to drive strong shareholder returns through growth in sales and profitability in 2024 and beyond.

It appears that your 4% growth in constant currency exceeded our expectations. However, the foreign exchange impact was slightly worse than anticipated. I believe the currency translation for the year might actually be around negative 2%, rather than the negative 1% you mentioned. Could you clarify this?

Shane, do you want to comment on that?

Yes, absolutely. So it really depends, Linda, on what exchange rates continue to do through the remainder of the year. Our expectation is they don't get any worse, they get a little bit better. But you could be right. If exchange rates continue where they're at or get a little worse, then it could be more than the 100 basis points that we've talked about.

You mentioned that the comparison to the prior year in the second quarter is quite challenging. Are you confident that you will achieve positive constant currency sales growth year-over-year, or is there a chance that sales could decline slightly in constant currency?

In the second quarter, we are providing guidance only for the year. Our yearly guidance remains the same, but the second quarter presents a challenging comparison. It's difficult to predict exactly what will happen, but we expect to be nearly flat.

In constant currency?

In constant currency, yes.

Yes, that's very helpful. So regarding the gross margin, you were not far from where we were. When you mention the difficult environment, are you indicating that you need to increase promotions to encourage consumers to buy, which in turn affects your gross margin? Could you clarify the relationship between the macro environment and the gross margin?

Yes. It was actually a couple of things. And we actually didn't do a tremendous amount more promotions, but there was some mix in there, inflation, and foreign exchange. Shane, do you want to add some more color commentary?

Yes. The main issues we continue to face are inflation in both the ingredients we buy and labor costs for manufacturing. Additionally, the impact of foreign exchange is negatively affecting our gross margins. Those are the two primary factors. We also had a slight increase in promotional activity in Q1 compared to the previous year, but that isn't the main issue.

Yes. Margin. Overall, though, Linda, we still feel optimistic about our gross margin plan and its trajectory moving forward. We did experience a hit in the second quarter due to shifts in mix, particularly in some high-margin markets where we faced some challenges. However, looking ahead, we remain confident.

And that's the other thing that I should have mentioned is as if we have stronger APAC sales, that helps our gross margin. And if APAC doesn't grow much, or Asia Pacific, then that hurts our gross margin as well. So that mix impact also was part of Q1.

Right. Although APAC kind of grew faster than the other regions, isn't it? I thought it was up 7% or something like that.

On a local currency basis, it was up 5%. Asia Pacific.

It was up 5%, similar to North America. Regarding EMEA, you mentioned it returned to growth. Is that due to the strategic actions you've implemented there, or is it more of a stabilization after the situation in Russia? I'm curious about how you perceive this growth, especially since the economic conditions in Europe don't seem particularly strong. Can you provide more insights on the reason for this growth and your confidence in its continuation?

Yes, two big things. First and foremost, some really good just field activation type programs, just to kind of drive orders and keep the field organization kind of moving forward and growing. And then secondly, the launch of our Power Line products. Power Line, the Greens product is the most successful new product launch in the history of our European business unit. So that really helped attract a significant number of new customers to the business, kind of gave kind of the sales force something to, again, put a little extra bounce in their step and gave them an excuse to go out and reactivate some inactive or lapsed customers. So it really was quite a strong order growth driver for them for the quarter. And we expect that strength in their business and that momentum to continue throughout the year.

Okay, looking at the numbers and guidance, EBITDA was relatively stable this quarter, and you're projecting an increase of 4% to 19% for the year. How confident are you in this projection? It seems like the growth will be more concentrated in the second half of the year due to the tough comparison in the second quarter. Do you feel more at ease with the lower end of the range, or do you still believe the middle is achievable? I'm curious about your thoughts on this.

We are now in May, and there's still much ahead of us. We are enthusiastic about our initiatives and are seeing good progress, although we are also facing notable challenges with foreign exchange and other factors. At this moment, we are maintaining our guidance. However, if pressed, I would say we expect to be at the lower end or lower half of that guidance.

It's interesting to hear your more cautious perspective on China compared to others like USANA, which mentioned that their promotional efforts in China had a positive impact this quarter. It appears there was a significant response to their initiatives. Could you provide more details on your situation? It seems you might not be using similar strategies to boost sales activity. Any insights would be appreciated.

Yes, we don't have the same situation as others. However, I believe we have shown strong momentum in our business with consecutive quarters of positive growth, and I'm not certain they find themselves in the same position as we are. We did face some challenges in the first quarter. Nonetheless, we remain confident in our business. Our digital approach to the marketplace is quite robust. Moving forward, it’s essential that we truly engage consumers as they are currently facing significant pressure. We have some issues to tackle in China, but we possess a strong model to assist us in addressing those challenges through our digital live streaming.

Okay. And then just on Korea, South Korea. That was actually really encouraging because I think you've been declining in South Korea for quite some time, if I'm not mistaken. So again, it sounds like you're not promising it's going to continue, but it sounds encouraging. Could you give a little more color on what's going on there?

Yes. They had a great quarter. They kind of really just went back to some good solid field fundamentals. They're trying to reconstitute the business after being essentially shut down due to COVID for several years. So they still have a lot of work to do ahead of them. And for the full year, I think we're looking at some positive momentum for them. But there'll be fluctuating results from quarter-to-quarter. But I think they're putting in place all the right building blocks to get them back on track for a positive year.

Okay. And just finally, I was curious about getting an update on the personalization effort, which I think is just in North America. What's going on with that? Like these pill packs and things of that nature, are you proceeding with that? Where are we on that initiative?

Yes. It's currently a slow growth initiative for us. I mentioned a couple of quarters ago that we believe personalization is essential in this space, as it offers convenience and facilitates easy reengagement with consumers each month. However, we anticipate that building adoption rates will take some time. The initiative is operational, and we are experiencing a gradual build over time as expected. Currently, our marketing efforts are concentrated on enhancing engagement in areas like the Power Line, where we've achieved significant success in driving digital activation, leading to notable growth in new customers and promoting Subscribe & Thrive. These are our top priorities at the moment. Nonetheless, we remain committed to providing personalization services to our customers. Okay. Well, thank you very much. We'd like to thank everyone for listening to today's call, and we look forward to speaking with you when we report our second quarter 2024 results in August. So once again, thank you, and take care.

Thank you, ladies and gentlemen, this concludes your conference call for today. We thank you for participating and ask that you please disconnect your lines. Have a lovely day.