USANA Health Sciences (USNA) 10 Feb 212020 Q4 Earnings call transcript

Company Profile

Participants

Patrique Richards	Executive Director of Investor Relations & Business Development
Kevin Guest	Chairman & Chief Executive Officer
Jim Brown	President
Doug Hekking	Chief Financial Officer
David Bain	ROTH Capital
Sebastian Barbero	Jefferies
Doug Lane	Lane Research
Ivan Feinseth	Tigress Financial Partners

Call transcript

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Operator

Good day, and welcome to the USANA Health Sciences Fourth Quarter Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Mr. Patrique Richards, Executive Director of Investor Relations and Business Development. Please go ahead, sir.

Patrique Richards

morning. good and you, Thank We appreciate and our quarter to joining year results. us full review fourth you Today's is at be accessed conference and directly webcast call from being broadcast our website ir.usana.com. via live can replay Shortly following be on our will the website. available a call,

operations Hekking; market materially, of company. the for such management should factors make regarding and SEC. fourth President, as disclosures, this our be risks the forward-looking scope brief could call regarding the with Brown; with uncertainties Those from the other by considered I'm conjunction you data from or Financial caution as statements Officer, for reminder, XXXX, website. statements. now that outlook Guest; company's announced events the We'll to Examples Kevin call, statements and the Board, most results of filings magnitude, include Chief financial after Jim quarter our future Kevin cause CEO opening questions. the business, hear the well statements document our remarks duration as financial conference Doug and Yesterday these to closed, in that and course involve results executives. commentary morning and a statements in of fiscal recent and well in before financial management this our our our actual we those these posted risk on Chairman the differ, joined of results. specific projected uncertainty As our as including the contained performance future the pandemic impact outlook during We strategies to will forward-looking of of related perhaps and results COVID-XX results our and year our

Kevin Guest

joining Thank against we very Overall, well new and the We outlook year and and unique quarter morning, with our full you, XXXX. how you performed challenges as pleased to XXXX. we results appreciate are as good our of us review initial fourth everyone. Pat, for many

reflects in products positioned, execution the performance XXXX, well strong with pandemic nutritional for unprecedented an share. of demand ended in well sales customers, per prepared unprecedented higher succeed we initiatives. found successful environment. to were continued this Our we operating our adapt this, strategic and In our the high-quality enough the face we that of record and Because of nimble more and to year net earnings and

to was can aspects operate customer we with as In we USANA. accelerated an groundwork on see transformative XXXX business, and actively websites, our customer experience our the be successfully improved XXXX, many investing initial had infrastructure. our our We've for are for our capitalized you other As of on during for many accelerated projects years record truly emphasis several experience our outlook, to already associate strategy. We XXXX the from year overall we we expecting pandemic. a the shopping another digital digital year communications experience, USANA and in customer been laid now strategy. training, technology

our business continue to These with technical new operational several that our and improvements virtual meaningfully USANA doing well tools introduced experience allowed force when and as sales in sharing other have environment. many predominantly customers' the the we business Additionally, as digital force to improved USANA. selling our products and experience that enhancements sales

expectation more over, our a towards will outlook Although progress reflects through we fiscal we recognize operating environment. that the that an for see pandemic 'XX is not normalized XXXX

do in-person look past sense opportunities the hosting makes forward year, While setting customers several virtual to future with our to we it force we've of a and this again learned an events engaging great sales deal so. when in

and built around fantastic virtual in-person the interactions. forward. benefits We personal and plan Our to of leverage both nutritional business is relationships events products, moving

year, hold the home our of virtual-only plan half employees. force events from maintain to expect sales our for During for the work and we first

strategy, Nutrition existing opportunities. actively our out year, other execute continue line drive growth to products our in new Active product During development markets seek will on and business with we that the digital China, our launch emphasis

we execute another With I'll confident In strategy, operator for As underlying to of the projecting of our for very this direction, amazing we competency open in year and the I'm and strength please agility the ask now closing, USANA's are that, lines company. the questions. strategic team the business. our

Operator

will session from Bain we'll And question-and-answer our The Instructions] you. [Operator with take David first electronically. Capital. be question Thank ROTH conducted

David Bain

Great. Thank you.

you suggested my in if laying market First, could congratulations release first your many potentially guess, take organic. on I potential or execution. would the can the to relation that question immediate obviously, that for? press strategy? groundwork fantastic to capsulate mean, we be such about forms, did the be, a as think new route way you Is potential a to can XQ China that there I your any you're new in impact market strictly

Kevin Guest

is we currently exploring in the an last time to on years we has us for -- other area and that We on strategy like were feel resources markets very where our several wanted growth, business. for move opportunities upper existing confident that that our feel focus globe. So, around the to hand and it's into doing focus our been got we've

do impact. you strategy international company. expansion again, We Jim, it as takes do strategic a it primary growth But, see they're to at markets in the you the in XX or -- mentioned, of important around an not as do have our but for that want XX opportunity, look like we And the globe. piece. group, while a it's If some quite see you some add? growth peer are potential for to an

Jim Brown

plan up right look staff, forward to wanted to setting all the a that's have when the from that And a from and, as has we launch to in markets and we I Yes. look products, we and as of is the -- when we're we is at at out. strategy to goes why selected about everything mean, There's to work we go the months hiring going point of but announce we we we're XX our a course, XX this path. at We done where to at markets. produce XX and field, do that time we're be of logistics, where that's that to to before down month runway XX lot the actually that looking how market a just that go.

to we 'XX so 'XX, So, out. end probably see markets, so you're runway looking it's to when that gone the every in into a opening. an of down ways we make the path feel, at up at of starting opening we at financial years have smooth impact a have impact right you'd it's of sure need we couple ago that and a again, always But, look market

Kevin Guest

add evaluated makes would a question the whether think of method Yes. partner on, I that is And we little manner a we and considered something your definitely David, bit sense. That's and enter I China.

the we're think method getting it have As we that kind been to the kind but of and of done kind a of leg historically when lot of the work timing these opportunities, sit idea, I an sense, look and we we in point. a to of kind process Jim's the manner, on for markets has and point, have shelf at of still makes the like and

David Bain

through I could otherwise, as structure from to standpoint you've from would or generation a or And you out permanent what follow -- sense best COVID? my fantastic. cost guess a up of learned maybe benefit revenue or technology could practices really be, us that either if what just Okay, give become

Kevin Guest

when are products don't fly we've as have -- a definitely we and to completely One able a a huge that the and is to we positive plane that very to on a I success. it seen operating capable you're surprised is very perspective One different we of world still launched abundantly and the sophistication very for area new several do we've learned initiatives it And that virtual do and international level get languages and is we level where China, been high can in from have have things virtually. impact. I'm can on an that me, across very new

going takeaways that the in our future a and from much But become management opportunities. sheerly customer more one I meaningful leveraging community we're perspective, base of global to -- we're by of a way our going a in-person encapsulate leverage in very so, utilizing big where just, our to and And the hybrid technology. some approach, more is to proceed technology accessible

has And changed model get that's on on our huge so a because it our world business our significant and is used spend the over piece of so, learn being a our basic for we've SG&A people. in traveling and to of travel, planes all to live been front because somewhat events us done --

know don't change learn and big to… And we so, here. want that's it you been do how business I dramatically will guys a if

Jim Brown

field, to how Yes. it we're to management company other digital as actually the transformation talk well When it. look out adoption from thing the and running huge a the is doing do as business. so our we're our I business seeing sales your when about we -- comes we digital digitally, footprint, the mean, team at figuring how

to Our that great markets continue form and and Zoom, run WeChat, quite And such think surprised we is the their platforms. reasons is, XXXX across figured I it year our the field whatever business one that has across down a digital had that's were adoption that path to all a biggest of of incredibly out growth. of to in way we've

Doug Hekking

And this pretty technology heard hesitation we've I to of we've more that. to David, the markets has see this within is from out. some little think environment adopting existing bit almost our response and pockets perspective there. And or resistance it forced markets, of them some A Doug. a good rolled use In and we some a

us and of that's back the more a tools. so, surprise for And using kind go folks pleasant been more and to

Kevin Guest

Yes.

against people's really an it the that I disruptor. environment. we we new COVID already a have had that both to like and it's were immediately us, place of able I thinking For versus in for that in operating to USANA were when many had that place strategies lives, already accelerator things about negative while we the accelerate help effect kind accelerate am very And to pivot on been grateful

see an disruptor. so, from lot ways our And it a of side in versus accelerator I'd strategy the

David Bain

revenue a my stock, network? you've ask generation, thing younger digital your I'm an I sorry, just to demographic spoken as And overall analyst the that. call that on you an it's first to, if whole in as seeing since Awesome. Deepening one thing follow-up are the could

Kevin Guest

a to well, upon anecdotal response kind younger actively accounts has on from I is media is than better I -- see business, the based I who I a even those coming participation, which Doug digital as and an of social company, -- I just But positive. what and do see see younger group think younger I am seeing a CEO a me population, my perspective, your the question, I the even with are a into do. a do and from of continually this numbers see population engaging the very

so, into the is but level, we And my again, at demographic do this younger see coming observation a would a yes, say, very just high I business.

Doug Hekking

as continuing to say platform in-person, we're meet it to that younger work would we're that make didn't really I before have set Right That's crowd, now younger demands was that where up a Yes. the we're relevant digitally. that. and the effect. done well when doing actually on everything it wants of crowd now, the to from aspect, mostly

Kevin like we're said, seeing So, it.

business. we the the of future, in will more it see think into that bringing I demographic

Jim Brown

maybe a And few there. Yes. comments other

are there markets. higher I think growth

We have been and clear. a really demographic, younger that's

seen -- come of in, customers but I and to legacy we've we've our our think this Kevin's seen of we've start of we've using markets is some also point, more younger what the other more. technology some in more group seen seen

those I things think So, all are positive.

Kevin Guest

agree with that. I Yes. Yes,

David Bain

again. Thank you. Fantastic. Congratulations,

Kevin Guest

Thanks.

Operator

And Barbero to next Jefferies. with we'll move Sebastian

Sebastian Barbero

questions Wondering your across question congrats about versus the overall pre-COVID please. the quarter. past for if talk could in associates about and first, trended levels? trends customer And your few consumer and thanks the the Hi, you and if taking on compare in changes seeing you're preferred and some health A market, of my does talk me, from different customers rates you the these have how can for how markets? retention behavior also, months this XX including over

Kevin Guest

the initially world of kind the a we of think I we kind of seen, we've rest we spike COVID XXXX, the as Sebastian, talked with the about pandemic dealing in far what trends, a and early and saw as started rate saw immunity immune As the of our recent our still products. of designed down, of to some functions. support run were go spike than rest growth kind in at we've spike products and And seen definitely clipping of higher that that but back a drift it's

to awareness a and seeing customers robust a and we've keen there. it across our out of we and And these conversations so, we're that dialogue back consumers doubt, markets, allows more without us have and that -- health seen with more wellness all have have go and

to your produce When reason. that customer buys other specific don't say pertains typically very this it buy in second As we that and stuff. a we're active and they count don't question, someone for number doing something again, get gone comes we

that customer so, active captures period. in recent And the purchased count who nine-day most

And so, of internally well. use we transparent we that's think best the kind metric as

Sebastian Barbero

landscape? that including And -- about on flat next 'XX and And grow trends in X% organic in over X%. to does in protocols up cadence imply changes you any can XXXX, likely between inflection months? also, the year? could color gives you an inflection any an it. the if gives in is us us your basis competitive XX% Got give you you which XX terms to and for the in recent fact What guide confidence to an the China months, growth what between of guide that the you what early market meeting talk Wondering, is on

Kevin Guest

sorry, on am bit coming it's little a voice. muted -- the Sebastian, across I Yes. on your

So, China specific the you this question? that was asked to

Sebastian Barbero

Yes, yes.

cadence recent your terms also, to early what relates year? trying if market protocols. the months, on growth some in changes the of trends in us color can And understand give particular it XXXX for just implies as So, you to does in and guide any in meeting

Kevin Guest

Yes. sure, same guidance different marketplace you restrictions the you municipality is getting. kind And information at of provincially, we're even level. China a many different and where I'm read the of that nuanced as have and really

they And the was in always conversation that kind a questions and recently the China the they're year current quick to think and we're there. to so, any our issues how with fairly that you've direction weren't markets from outbreaks seen better up getting relations We've government really the control respond. and is of having China we're the happened and has the attached I how having that stayed getting government these obviously leading the folks news to

kind in have. we -- whole, best toeing nuanced we're of not But so, see of of line. specific is the as a And but really that a that China do it and thing it's kind factors kind real we estimates to

with a The growth other thing is in from getting that that on we're whole seeing way the mid-single-digits in you market, the I boots what the ground in mid-single-digits-plus. we're think, folks our saw to as overall the market not

think it players kind of we noise a seen their and kind entrants established in area foothold that new to really kind Right older stuff. -- right of not there I and see from seen and that's expect We The just executing that now, is the from now. getting outpace bit. are haven't little historically, landscape But it too a really we've strategies. is of how same we kind competitive always of what really

Sebastian Barbero

in shake it line you a be this mentioned Will have terms and by And Active some tech be new weight this will backed Nutrition, Okay. loss health. QX, management or weight digital program launched focus in you embedded in it? full in sort some digestive of comprehensive of

Kevin Guest

be We've and that that we're new our a beverages and line is our our literally be the quarter we're have Yes. looking The more stone bars facility. going going facility shakes, we're second our phases we're for on what because [ph] as be corporate calls, launch of then I is just to a making about at the XXXX. Active products mentioned a powdered foods throughout past already from of full started looking a on handful back talked to headquarters. own launching trivia throw with will a at the Active And is consider We're now we in which line additional north bars Nutrition actually setting of out impact and we're we've where there. program. would in Nutrition to really in bringing away Right markets [ph]

those Nutrition really it's we'll of the all more to happening around get more just of launches But different community So, but we'll the in just a fourth foods. of instead is the quarter this see much Active XXXX, into third foods the year. and programs, there's influencers, kinds of impact full of see there trends ways than experience more

this how so, the is past. bit novel approached And a a in of little different product for introductions approach we've

Jim Brown

versus we're improve lifestyle to take someone's positive more a or real And focus can health, two If a as their the being affect a move out truly holistic approach to to are lifestyle for we really way on us, in launched is there. a product forward. lifestyle we that wanting there

company excited offering categories. able And we're health our out round a to those so, as in be to

Sebastian Barbero

it. Got

the last me, one Okay. allocation And switching priorities. capital from to

considering what details are strategic [ph] you you portfolio? did And product can direct selling And or partnerships. on results M&A are in if that's looking case, or do have can around capacity sort do brands then complement bit us execute? your you more of that building leverage little -- like also to give Just you What take a a could believe like solely us the buybacks You're in little categories Built outside criteria? you you walk your industry what in the companies and you QX cash for of Brands? terms are -- flow, opportunity nicely with to willing

Kevin Guest

really of the opportunities, business. the mean, kind been I has Yes. focal point Sebastian, organic regarding on our

we a go and that great back on Built can necessarily channels we looking directly what our The understanding, Brands and well. that the that core go to and as is execute back accelerate know-how to selling go other can our example business things don't our leverage for actively have. we are in competency also direct We acquire fit back in

that to so, [indiscernible], in going see back we of I forward. And are examples. health And that's at we'd but are not directly opportunities the believe back not playing integration, We're then, stuff, of leveraging look without opportunity EBITDA I go direct believe put correlated on technology and and we're think those as doubt, we vertical and looking couple times stuff, sales to debt. point, leverage this at books those good space. the anything afraid a channel deal for a a opportunities evaluating that -- and there just to for wellness we we're regarding expansion, far and dynamic basis on and we've now beyond kind And flow done looking And what that opportunities is we're historically. geographic evaluating In on go those and pretty to regular a those really yes, basis.

Sebastian Barbero

Got it. you. Thank

Operator

move Lane Research. next to And Lane Doug with we'll

Doug Lane

Yes, hi. just could… focus Good we if morning, want to everybody. I

Kevin Guest

Hey, Doug.

Doug Lane

want really could on focus active getting we counts, just and lesser year customer two seem just doesn't a it's it extent been counts, where of has outside tale any the to I the been China to associate inside if a but where the remarkable, China this stories be of better. even to growth

start if So, XXXX was far and number the thinking that's of as could mean, active what should that about concerned? in preferred be the I we outside XX% increase with of let's good, sustainable we -- how China. for year-over-year customers kind as

Jim Brown

consume across over is the see the the that it the couple really to adopt forward business easier of well, And been end by do I individuals And on a and that as our having and of globe in I that the and foremost, easier Yes. go associates encouraged say back consumer. last first focusing we we incredibly it, more products. I group for strategy perspective. on makes going day, At from if focus, years, all opportunity markets company the think and well that grow think it of we've Kevin executing you customer. the our families the on has the would

of has changed and in challenges into a a that back back weighing going So, to forward. focus hasn't unique years. couple that we'll keep had couple of China

coming we're of And I think out so, that's that. --

base, the I where go think feedback in will encouraging and really momentum forward. moving worked the leverage there we hard get had have we going we and very going we the build can team see about forward really the some is excited and business. a And forward over opportunities back China really to

Doug Lane

think -- number Yes. to the concern number On the that side quarter, I out China, sequentially a decelerated have from the again, of concern was that would it great customer one preferred XXX,XXX the stuck that one so on I but much was sort XXX,XXX.

quarter the in to customer So, what happened number the in impact China?

Kevin Guest

with of compensation associates beginning QX to and to had our really a It go that and period created it for of QX opportunity just ran do trial encouraged back share very short and and we -- program a Yes. end that linear the we time.

modestly it of those lift And the And and that as them overall, that back QX, momentum even we that down. from benefit encouraged company drift in decay saw think ended, program QX of so, was numbers attract. trial whole from but out I those of really by were catalyst And created in the some also you primary a go the currency, in numbers program numbers the in to there. reach some with accounts change as customer catalyzed and our the and as

Doug Lane

to deceleration seeing drift in we there to a as Are the count China? well, on lower in lesser -- mean, sort saw I the a associate active a here. less lift China you associates, extent continues especially any of but

China So, it's in I'm following almost or looking wondering, for of I've an XXXX improvement you because China? -- is business. half been in are stabilization just your sort

Doug Hekking

Yes.

I there. looking we're think for progress

unless the reflected that see of grow go to back and moving back numbers right are customers not You in go we that going We're direction. the have. outlook the and in kind

momentum taking in plans that full is This of those the there we in and year investment an strategy. is the I advantage China they're are investments. for kind progress see think there there the is and confidence of executing and the and

Doug Lane

Doug. Thanks, Okay.

Operator

Partners. -- Tigress move we'll next, And with we'll move Financial next, Feinseth to Ivan

Ivan Feinseth

my taking and on call great congratulations for quarter. another Thanks

Kevin Guest

Thanks.

Ivan Feinseth

-- recent and you and quarter? demand categories trends customers what trends of most And you are product the What associates the product interest products seeing from strongest kind in the are seeing? strongest and were product

Kevin Guest

And promotional talking -- XXXX to earlier, mentioned throughout from that's -- markets say Yes. products immune Like create and in XXXX the lessen be we distractions immune as be outpacing year we Active we it I might But anything bit that's continues when is the hopefully demand growth more immune XXXX. to health the about COVID-XX. new launches. would of well Doug some else. product the comes that XXXX, have. it a a moving in Nutrition lot in forward. down would And then we XXXX continuing when And throughout strategy it, -- to mean, health little look at the programs the that a overall well that don't of to catalyst go health but line and product activity the again, in for through was line be really as be product see part to as our than launches. launched from ever I incentives I the And we did of

Ivan Feinseth

and pandemic after And it continue view like associates in health you how helping rear that immune like should your in market mirror? educate long to the is hopefully are the

Kevin Guest

products when little mean, story tell make training our continue throughout is whatever needed high USANA sure what get continue to I is. online, the field Nutrition happen be is -- and a than and dedicated say, Active to associates. little quality at line it end that to why what and platform challenges March, and arm later going to associates we've the product and talked to our -- this our year really about of to part to of story of done, do quarter, incredibly us understanding of we well couple in out company is of is to associates launch of second we that really the what's from, able really And the Zoom, And first And competition. the it's can we doing markets. as March, that to we're a digital, months the web, of that is world in sales training bit and and we'll but our better tell think part important I the our but training that the a WeChat, and for roll we that that. products do bit this we in why the that overcome do that is

Jim Brown

other We company thing. had -- really a say way would and I share we to years acquired makes the ago, message go that education. content production incredible the and Yes. and dynamic the back

One market. It our planned is within back things there and that go that has that of and awareness, the this they're lot of on. replicate to capability go year China things really brand back a speak many market velocity, positive will working build content

in of And we way. that a and kind continue so, back information that to expertise know-how creative more and more go leverage and and find ways digital share to

Ivan Feinseth

are to events Active do the have how what going envision kind for you Nutrition you of And launch?

Jim Brown

events also mean, be And launching right and mostly and the will -- mean, Zealand Webex handful with, I start of those going themselves, products those would it. on following now, for US, that I really New Yes. Canada, Mexico, markets. a train to Australia we're events markets those we Zoom programs it's using but go training to be our the with along virtual associates be for or that shortly.

new of at in no been company. dealing We third-party a are with thus lot this been really and products, And and years, in-house positive producing information user who dealing something our out USANA at faster the headache really all longer We're with that for another pace over to is had Nutrition. not ability but XX at impact Active well, time, ever will that about been moment, it's far. and ourselves from us, so -- an those we've that during new bringing it's a are have trials biggest than come technology we also we're at a things is I've one doing the my It's the in to about flavors exciting as been that products to launch going bringing an is past. that -- talk manufacturers excited point standpoint last try area

Kevin Guest

directly that our we're that like are question something working that -- ground. together -- relationship that to we're of working with done a to our team, haven't It's Active It's program and perspective associates currently they business is Nutrition helping actually Ivan, that almost build, your which with build our some focus product, with us getting our an Yes. us us ambassador the there that health that a launch. we with put involved as we've product the is helping have is program, them doing science out advocates team, with from we the well having we're who knowledge before assist as R&D boots expertise a group on taken

embedded, give already we so, a with the launch of speak, product these as ambassadors experiences the And to advocates markets, great as have which products. throughout us huge we will group have who so boost a

Ivan Feinseth

what your purely into market stuff, you lot your the think your there do companies it's to I Nutrition big. you is performance-related of of And a advantage what this? current relative sports-related, pretty feel be competitive that are go do do Active active going when and the unique you mean, attributes market but -- size And to market? is

Kevin Guest

Yes.

technology management, snacks. little we're focusing the I go can that and tell go think stuff really for leverage help a on of usually, of will something Ivan, -- to and existing need to the weight about. exercise road. So, kind be down talked healthy we of through back kind a customer We back some the be and the all really and fitness And clarity, markets story we've just our bit base going market it's large

think it's opportunity. So, big we a

bit, foremost, Jim, Walter which are and back Officer, of that, production broader in a the a Chief hard broadening a having Operating things we're and offering, to product as out meaningful managing been get and and forward QX roll just thoughtful we many in markets and out select going holistic systematically we types after out think have just going way. is really there little that definitely [indiscernible] that those launch working and things and roll well. Noot, up so really then expectations things our nutrition in operation go just to plan I more on first that for in base, here see going like very product-focused And very and than start exercise and it and

Ivan Feinseth

-- this call then, investment you into is in detail Brands. are benefit expect consumers go Can Built about us? product And opportunities All first going on your of work as to you be and you they guess, you how you right. what's them, your to, to what from attracted the see, little going what announced what I the since USANA can to a with

Jim Brown

we we're maybe Brands, but going gain foods road a we year. the Yes. powdered and the us just And of world-class expertise from to that company. a itself a get facility do aspects little a time the thing investment company, was and the could bit take that down minority this literally making was With little running of right it's second to an our to at were beverages, there. Built that XX was We're to in investment. deal in into minutes some of we from get the quicker. going the really bars not They're be interested But what millions right wanted

knowledge from the is a operational of was sharing there benefit. that standpoint an So,

product future. to going USANA the us USANA that and we process they bar R&D The many And bars us they the up their some great learnings will that's the the that have some of other thing as probably that that with get have using formulation we of new -- I be and are to much return to to that we'll create is from technology And into have, in a really excellence standpoint speed investment, the our an their normal again, turn ability and was quicker but for team help a than which wasn't use from hope and a we'll able R&D as get investment the because that about bar expertise. our a it process. to it the about launch operational

Kevin Guest

in to different sit Ivan, deliver in. great a approach couple they a perspective strategically as and go for And market could completely Bar some with have have able my how we're They a synergies to products. and I of down than sell their hours completely the how brainstorm and they're manufacture we CEO different together, from just to CEO, to had we Built opportunity were the and --

also somewhat in active is come opportunity, that is a already the being does from think synergies also has I that different and investment someone way. but of learning a serving a somewhat health way getting with new a who similar in from the me, use yet for a -- of partner different very so, synergies a from who competency, someone capital but market versus And the actually the it important which come us nutrition business, is on completely great very and core our perspective of top

Ivan Feinseth

more but I'm a Nutrition bar more an I they I and to think tend forward about which Active it lean than USANA mean, focus. looking exciting, big the keto, a and is the is paleo, Built. think with launch It's to market important fad, nutrition I

on that? So, what thoughts are your

Jim Brown

be obviously obviously -- also to focal but back different some with We'll some as Yes. nutritional areas. [ph] looking for protein, well and go bar pace benefit have

things So, that's down are line definitely anything towards But I in that say have and the we've some but the -- been looking -- we specific we and catered that don't developing that we're health path. with have benefits. something would

Kevin Guest

we very had it's them great at and that we've to avenues. delivery these bars, within different are exploring also and look vitamins with these a fortified chocolate had to And always also, some prototypes where ways just we're for as And minerals different various we -- delivery nutrition. a with looking tasty system way we different that of point bar deliver

opens of keto really whatever up a sheer point, delivery might us whether be, host your it's might to what or So, for from perspective. opportunities it it -- a it

Jim Brown

comes And bars four other an to had as too bars area when it or is we've offering. historically Yes. about, the like Kevin three talking

we a are held area not as the entries variation. as well complicated bar third-parties with and really everything we're chain because lot that under that we the the with supply same plant into and with powdered of large the by else it contractual that beverage obligations -- brands new more have makes ourselves, could more lot a area managed that having foods Now,

be something we're support to to Nutrition Active going the able line that's that with. So,

Ivan Feinseth

results and the wishing the success you I and ongoing insight in update, -- appreciate more XXXX. congratulation a and much on again the

Jim Brown

you, Thank Ivan.

Kevin Guest

Thanks, Ivan.

Operator

conclude At over the back question-and-answer call that to And Patrique turn or remarks. for this session. Richards the Mr. to additional will any time, I closing would like

Patrique Richards

call. participation Thank conference today's questions for your and you for your in

XXX-XXX-XXXX. If Relations contact to feel free you any questions, Investor please have at remaining

Operator

We will thank today's call. participation. that for And you your conclude

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