USANA Health Sciences, Inc. (USNA) Earnings Call Transcript & Summary

Good morning. Welcome to this 2020 Annual Meeting of Shareholders of USANA Health Sciences. I am Dr. Myron Wentz, Chairman of the Board. Before this meeting begins, I want to welcome you and express the appreciation of the Board of Directors and management for your attendance today. In attendance today are the members of the Board of Directors and management of the company and certain other guests, including representatives of KPMG, USANA's independent registered public accounting firm. And we welcome our shareholders who are attending via the web portal for our virtual annual meeting. Please note that although this meeting is being recorded, no one attending via the webcast is permitted to use any audio recording device to record the meeting. As is custom, we will conduct the business portion of our meeting first and answer questions at the end of the meeting. Only validated shareholders may ask questions in the designated field on the web portal. I will now call the meeting to order. Notice of this annual meeting was mailed on or about March 20, 2020, to each shareholder of record at the close of business on March 2, 2020. A copy of the notice of annual meeting, proxy materials and a shareholder list as of March 2, 2020, are available for the shareholders' inspection through the web portal. The Board of Directors has appointed Doug Hekking to act as inspector of elections at this meeting. The inspector has previously executed an oath of office and delivered it to the Secretary to be filed with the minutes of this meeting. The inspector has made a poll of the shares represented at this meeting virtually or by proxy and also received a report on the votes received by proxy prior to this meeting from Broadridge. I will now ask the inspector to report on the presence of quorum.

I am pleased to report that 87% of the issued and outstanding shares of the company are represented virtually or by proxy at the meeting today.

Thank you, Doug. Since a majority of the company's outstanding shares is represented here today, a quorum is present. The meeting is duly constituted and the business of the meeting may proceed. We have 3 items of business on the agenda today. First is the election of the Board of Directors. Second is the ratification of the Audit Committee's selection of KPMG as USANA's independent registered public accounting firm. And third is a nonbinding advisory vote to approve the company's executive compensation, commonly referred to as say on pay. Before proceeding with these matters of business, I want to take a moment to discuss my transition from Chairman of the Board to Chairman Emeritus. I founded USANA 27 years ago, and since that time, USANA has been instrumental in carrying my vision and work to the world. It has been my great privilege to work with so many talented and dedicated individuals to advance USANA into what it has become today, one of the foremost leaders in cellular nutrition and product innovation. I have complete trust and confidence in our exceptional Board and management team to continue the USANA vision of improving the health and wellness of individuals and families around the world. While I plan to continue offering guidance to USANA as a major shareholder, honorary Board member and scientist, I welcome the opportunity to devote more time to my many humanitarian pursuits and philanthropic projects. Turning now to the business items. The first item of business is the election of the Board of Directors. As noted in the proxy statement, the slate of directors standing for election includes the following persons: Kevin Guest, Robert Anciaux, Gilbert Fuller, Feng Peng, Peggie Pelosi, Frederic Winssinger and Dr. Tim Wood. Details for these individuals are included in the proxy statement. No other persons were nominated. Therefore, the nominations are closed. For the second item of business, the Audit Committee of the Board of Directors has selected KPMG as USANA's independent registered public accounting firm for the fiscal year 2020, and shareholders are being asked to ratify this selection. KPMG has served in this role since September 16, 2013. USANA's Board of Directors recommends that shareholders vote for the approval of the appointment of KPMG as USANA's independent registered public accounting firm. Finally, the last order of business is an advisory vote to approve the compensation of USANA's named executive officers as disclosed in the executive compensation section of our proxy statement. The Board of Directors recommends that you vote for the approval of our executive compensation. With that, the polls are now open. Any shareholder who hasn't yet voted or wishes to change their vote may do so by clicking on the voting button on the web portal and following the instructions there. Shareholders who have sent in proxies or voted via telephone or Internet and do not want to change their vote do not need to take any further action. [Voting]

Now that everyone has had the opportunity to vote, I now declare the polls for the 2020 USANA Health Sciences Annual Shareholder Meeting closed. I will now ask the inspector of elections to report the results of the balloting.

I am pleased to report that shareholders holding the required number of shares have elected each of the nominees for the Board of Directors, ratified the selection of KPMG as USANA's independent registered public accounting firm and voted for the approval of our executive compensation.

Thank you, Doug. We will publish the exact voting results in a Form 8-K that will be filed with the SEC and made available on USANA's website following this meeting. That concludes the business of the annual meeting. Once again, I express my appreciation for your attendance here today. This annual meeting is adjourned.

Thank you, Dr. Wentz. We will now respond to stockholder questions, which are being entered today through the web portal. There does not appear to be any questions today. This concludes this portion of the call. Thank you 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.