USANA Health Sciences - Earnings Call - Q4 2024

Executive Summary

• Q4 2024 net sales were $213.6M, up 7% sequentially, with adjusted diluted EPS $0.64 (+14% q/q) despite GAAP diluted EPS declining to $0.23 due to Hiya acquisition-related costs; management said results were “above internal expectations” and highlighted strong Americas & Europe momentum.
• FY 2025 outlook introduces non-GAAP metrics post-Hiya: consolidated net sales $920M–$1.0B, adjusted diluted EPS $2.35–$3.00, adjusted EBITDA $107M–$123M; guidance reflects USANA $775M–$840M (≈$30M FX headwind), Hiya $145M–$160M, and a 53-week year.
• Mix and accounting reclass drove margin optics: gross margin rose 110 bps to 82.0% (≈$1.8M costs reclassified from cost of sales to SG&A); SG&A rose 790 bps y/y to 34.4% (incl. $8.2M Hiya transaction costs), while associate incentives were 43.8% (+40 bps y/y).
• Regional trends: Americas & Europe up 11% q/q (Canada/US incentive programs), Greater China +10% q/q, while North Asia fell y/y and q/q amid macro weakness; Hiya contributed ≈$2M to Q4 sales given <1 week of ownership.
• Near-term catalysts: continued aggressive promotions, strategic incentive program roll-out in H2 2025, >20 product launches/reformulations (including skincare), and August Global Convention in Salt Lake City; capex guided to ~1–1.5% of sales, potential debt retire midyear and measured share repurchases to offset dilution.

What Went Well and What Went Wrong

• What Went Well

  • “USANA delivered fourth quarter results above our internal expectations, highlighted by 7% sequential net sales growth,” with strong Americas & Europe performance and consolidated cash generation.
  • Sequential improvement: Net sales +7%, adjusted EPS +14%, Greater China +10% q/q; U.S. +16% q/q driven by tailored promotions and incentive programs.
  • Strategic progress: Acquisition of 78.8% of Hiya (highly cash-generative DTC children’s wellness brand) with 2025 growth priorities and synergy opportunities; plan for >20 product launches/reformulations and August Global Convention.

• What Went Wrong

  • Y/Y decline persisted: Q4 net sales -3%, adjusted EBITDA -21%, active customers -6%; North Asia notably weak (-25% y/y) amid macro pressure.
  • GAAP profitability compressed: diluted EPS $0.23 (-74% y/y) as SG&A rose 790 bps y/y (incl. $8.2M Hiya transaction costs), offsetting gross margin uplift from cost reclassification.
  • Elevated tax rate and FX headwinds: FY 2024 ETR 44.9%; FY 2025 outlook embeds 41.5%–45% ETR and ≈$30M FX drag; tariffs could further pressure costs (not yet reflected).

Transcript

Operator (participant)

Greetings and welcome to the USANA Health Sciences fourth quarter conference call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow a formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to your host, Andrew Masuda, Director of Investor Relations. Thank you. You may begin.

Andrew Masuda (Head of Investor Relations)

Thanks, Diego, and good morning, everyone. We appreciate you joining us to review our fourth quarter and fiscal year 2024 results. Today's conference call is being broadcast live via webcast and can be accessed directly from our website at ir.usana.com. Shortly following the call, a replay will be available on our website. As a reminder, during the course of this conference call, management will make forward-looking statements regarding future events or the future financial performance of our company. Those statements involve risks and uncertainties that could cause actual results to differ, perhaps materially, from the results projected in such forward-looking statements. Examples of these statements include those regarding our strategies and outlook for fiscal year 2025, as well as uncertainty related to the economic and operating environment around the world, our operations, and financial results.

We caution you that these statements should be considered in conjunction with disclosures, including specific risk factors and financial data contained in our most recent filings with the SEC. I'm joined by our President and CEO, Jim Brown, our Chief Financial Officer, Doug Hekking, our Chief Operating Officer, Walter Noot, our Chief Commercial Officer, Brent Neidig, as well as other executives. Yesterday, after the market closed, we announced our fourth quarter and fiscal year 2024 results and posted our management commentary document on the company's website. We'll now hear brief remarks from Jim before opening the call for questions.

Jim Brown (President and CEO)

Thank you, Andrew, and good morning, everyone. I'd like to open today's call by saying that I'm excited about USANA's future. Our direct sales business just reported a solid quarter of results at the tail end of what I consider an investment year for USANA. In 2024, it became apparent that we needed to pivot in a few key areas to position USANA to return to growth that we've had historically. Many of our 2024 initiatives are long-term focused and meant to make USANA more attractive and relevant from a product, branding, and income opportunity standpoint. An example of this is the reorganization of both the R&D department and commercial team. During the year, we put entirely new product teams in place, and they are now working faster and more efficiently. We also reorganized our sales, marketing, and communications departments into one comprehensive commercial team.

We are now better positioned to bring innovation and relevant products to market faster with a focused brand message that differentiates our products in the marketplace. This new team structure also better positions us to execute our customer growth strategy in 2025, which is centered on USANA delivering three fundamental benefits to our sales force: best-in-class products, a simple brand message that highlights the superiority, differentiation, and benefits of our products, and an income opportunity that is simple, rewarding, and more compelling for associates that are looking to make extra income sooner or build their own business. With these foundational changes now firmly in place, I believe USANA is positioned to deliver long-term customer and sales growth. During the fourth quarter, we also acquired 78.8% ownership stake in Hiya Health for $205 million. Hiya is a fast-growing, cash-generating, direct-to-consumer company that is focused on children's health and wellness.

This acquisition positions USANA as a leader in the expanding children's health and wellness market and strengthens our ability to reach and positively impact more health-conscious individuals and families, while simultaneously accelerating and magnifying our vision of creating the healthiest family on Earth. Hiya has an experienced management team that continues to lead the company: a compelling brand, a subscription business model that is positioned to continue delivering strong and sustainable sales growth over the next several years. The Hiya team is highly engaged and focused on expanding their leadership position in the children's health and wellness market. Notably, the acquisition of Hiya came very late in the fourth quarter, so the contribution to USANA's consolidated 2024 results was minimal. Accordingly, most of today's remarks were focused on our core business. Turning now to the fourth quarter.

USANA finished the year with a solid fourth quarter result that exceeded our expectations. Net sales grew 7% sequentially, and adjusted diluted EPS increased 14%. Positive response to promotional activity was a key driver of the results, particularly in the United States, where net sales grew 16% sequentially. We also saw notable strength in Australia and New Zealand, with combined net sales in these two markets growing 9% year-over-year. Turning now towards our initiatives for 2025. After much hard work, collaboration, and focus through 2024, the new structure of our commercial team is solidly in place. We're now full speed ahead with accelerating, delivering, and executing upon our customer growth strategy. First, we're planning a higher cadence of new product launches in 2025. We have over 20 product launches and product reformulations planned to roll out globally throughout the year to both existing and new markets.

We recently appointed Dr. Kathryn Armstrong as our Chief Scientific Officer, and she will play a pivotal role in leading global research, development, and scientific ventures. We are also hosting our global convention in Salt Lake City this August and have an amazing event planned with several product launches. We haven't held a global convention in the U.S. for several years, so we're excited to have a large group of our associates from around the world come together to celebrate their success, receive business training, and to learn about the many new products we're excited to launch. Second, we will be rolling out a strategic enhancement to our associate incentive offering in the back half of the year. These enhancements are designed to modernize our sales incentives and incent customer growth and improve pay-for-performance.

Third, we will be enhancing our brand message, story, and value proposition to deliver a stronger, more cohesive brand presence, support key product and incentive launches, and magnify USANA's overall brand reputation, superiority, and differentiation. Fourth, we will continue to accelerate associate engagement activities in our regions around the world. With our upcoming product launches and modifications to our associate incentive offerings, it is more important than ever to engage with our associates. We plan to hold many trainings and recognition events across key markets throughout the year, with a marquee event of the global convention in Salt Lake City in August. Before opening the call for questions, I'd like to provide some additional thoughts on our strategic acquisition of Hiya. It's been just over two months since closing the deal, and we're very excited about Hiya's growth plans for 2025 and beyond.

Hiya's success since inception has been a culmination of new, better-for-you products that have resonated with parents and children across the country, an attractive subscription model, and an effective marketing strategy. These factors, combined with the financial discipline, have resulted in fast-growing, profitable, and highly cash-generative business. In fiscal 2024, Hiya generated $112 million in revenue with an adjusted EBITDA margin over 20%. Top-line growth in 2025 is projected to remain strong, with the Hiya team expecting to derive strong growth year-over-year. Key strategic priorities this year include capitalizing on recent product launches to drive further growth in its direct-to-consumer model, expanding strategic partnerships, and laying the groundwork for channel expansion. We are also working closely with the Hiya team to identify both short and long-term synergy opportunities. Overall, we remain confident that the founder-led Hiya team will deliver strong results this year.

In closing, 2025 is proving to be an exciting year with much work ahead of us. I want to thank our employees, associates, and partners across the globe for their unwavering commitment to fulfilling USANA's vision of creating the healthiest family on Earth. With that, I'll now ask the operator to please open the line for questions.

Operator (participant)

Thank you. And at this time, we will be conducting a question-and-answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate that your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we pull for questions. Our first question comes from Anthony Lebiedzinski with Sidoti & Company. Please state your question.

Anthony Lebiedzinski (Analyst)

Good morning and thank you for taking the questions. So certainly nice to see the year-over-year sales gains that you point out to in the U.S., Australia, New Zealand. So maybe we could start there. What's driving that? Is that primarily the increased promotional activity or just maybe if you could give us some additional color as to the reason for the sales increases that you're seeing?

Jim Brown (President and CEO)

Yeah, maybe I'll let Brent chime in here. I can give my color as well, but I think maybe I'll start and then let Brent chime in. But I think in both cases, you had leaders of those respective markets really think outside the box and try something they haven't tried. In Americas and Europe, where we've seen stagnant to down, I think they really saw some traction. I think the different and creative approach showed some ability to go back and give us some insights to what to try going forward. In Australia and New Zealand, even though the program was a little bit different, it was much the same story about thinking outside the box and really listening to their field and catering something to that group.

Brent Neidig (Chief Commercial Officer)

Good morning, Anthony. This is Brent.

Anthony Lebiedzinski (Analyst)

Good morning.

Brent Neidig (Chief Commercial Officer)

We continually reference this commercial team restructure and an enhancement to our associate engagement, and I think this was a combination of those things and others. We're trying to better empower our regions and our local markets to really create tailored offerings for our distributors and our customers in those locations, so at the launch of our Americas and Europe Convention last August, our regional leadership for that region, they came up with a very creative incentive and program offering that was introduced at that event, so it touched Canada, Mexico, the U.S., ANZ, and it was really well received by our customers in that region, and we really saw a tremendous progression of new associate acquisition and retention from August through the end of the year, and we're hopeful that that continues to persist throughout the first part of 2025.

But I think it was just a really great combination of leadership in that market, taking control and providing a very tailored offering for those markets.

Anthony Lebiedzinski (Analyst)

That's great to hear. And is this something that you guys think you can replicate in other markets, or is it easier said than done?

Brent Neidig (Chief Commercial Officer)

Absolutely. That's the intention. We've talked a couple of times during this call about, or in Jim's remarks, about our need to pivot in terms of our product offering as well as our incentive structure. And that's something that's really going to come to fruition in the back half of the year. And part of the incentive structure that's going to be created or adjusted is taking some of the framework that was introduced in August of last year at that Americas and Europe Convention with helping our associates when they come in the door. They quickly understand what are the key objectives, and we help guide them through that journey in the early stages of their journey. So that's something that we should see, and that'll roll out globally in the back half of the year. So we're excited to see where that takes us.

Anthony Lebiedzinski (Analyst)

Gotcha. Okay. All right. And then as we think about your revenue guidance for the core business, how should we think about expected sales performance by region this year? Can you give us some additional color as to how you're thinking about the different regions will perform as we progress through 2025?

Jim Brown (President and CEO)

Yeah, I think kind of the recent trend that you've seen, I think kind of moved forward a little bit. I think some of the areas where we see a little bit more challenge in this last year, we're expecting to see some progress from some of those regions. But outside of there, China is such a big part of the equation. We've got a fantastic team there that the environment's a little bit tough, but they've done a fantastic job in running the market. And I think we'd expect some kind of more performance there and see them hold serve and maybe make up a little bit of ground moving forward.

I think just the same thing that you're seeing recently in the other markets, as Brent articulated. I think some of these more tailored offerings provide a lens to get some more momentum and enthusiasm in the markets. So we're looking forward to it.

Anthony Lebiedzinski (Analyst)

Gotcha. Okay. And then in terms of Hiya, so when you guys announced the deal in December, you initially talked about roughly 30% growth for that business this year. Your guidance is higher than that. So can you just talk about what's changed since then? And does the guidance also include any sales channel expansion, or would that be additional revenue if you're successful with that?

Jim Brown (President and CEO)

Yeah. So, as we were going through the acquisition and going through the models and evaluating that, I think at the stage we're at when we announced the acquisition, I think we wanted to go back and be pretty thoughtful with what we communicated out. As we look at their forecast and our models, I think we're comfortable that we'll be within the range we communicated, which is $145 million-$160 million, which represents growth from 29% to 42% over the $112 million they did ending up 2024. And so we're pretty encouraged with that team, and I think they keep leaning into it. I think we'll see some different narratives and some different experiences with this as they have individual months where they go heavier on customer acquisition.

We'll probably see some temporary disruption in profitability due to the cost of acquiring those customers, and they'll do that in a few pockets throughout the year. And so we think that's good. It's part of the overall equation for this exciting company with great leadership, and so we look forward to it. Anthony, remind me the second part of your questions.

Anthony Lebiedzinski (Analyst)

Channel.

Jim Brown (President and CEO)

Channel. Yeah, there's very little in there for channel. There is a little bit, but it's de minimis relative to the whole.

Anthony Lebiedzinski (Analyst)

Gotcha. Okay, and my last question before I pass it on to others, can you give us a quick update on how India is doing?

Jim Brown (President and CEO)

Sure, Anthony. This is Jim. In my opinion, India is doing really well. You got to remember that it's only been open, man, how long has it been open?

Brent Neidig (Chief Commercial Officer)

13 months.

Jim Brown (President and CEO)

Yeah, 13 months. Yep. And we started from a base of zero. So we've seen good growth in the market, but again, it's just not going to be that impactful until we have a few years of runway and it starts building on itself, compounding each year. So happy with the results. Happy we have a great leadership team there. They're having events. I went there last year and was impressed by how the country itself is being managed and run and their plan and strategic plans to grow the business. But the base is just very small.

Anthony Lebiedzinski (Analyst)

Gotcha. All right. Well, thanks and best of luck.

Jim Brown (President and CEO)

Thanks. Thank you.

Operator (participant)

Your next question comes from Christina Xue with D.A. Davidson. Please state your question.

Christina Xue (Analyst)

Hi, good morning. Congrats on the quarter. Just a follow-up to the previous question. Do you expect U.S. and Canada to maintain the same level of promotional activity that you see in the fourth quarter?

Brent Neidig (Chief Commercial Officer)

Hi, Christina. It's Brent. Yeah, we do anticipate that throughout all of our markets this year, we will continue with a somewhat aggressive promotional cadence, the promotions or the incentive structure that was implemented in that region last year that has continued into the first part of this year. We have made a couple of adjustments to that program for the 2025 year, but that will continue and we do anticipate other promotions coming forward leading up to the implementation of the new incentive offering at the back half of the year, so we anticipate it continuing there as well as other markets adopting those programs too.

Christina Xue (Analyst)

So with the new incentive program, is that going to drive the associate incentives year-over-year for each of the quarter for 2025?

Jim Brown (President and CEO)

Yeah, you'll probably see a little bit of that.

Christina Xue (Analyst)

On a solid basis.

Jim Brown (President and CEO)

Yeah, absolutely. Anytime we do this stuff, we really have two primary categories. One definitely affects the incentive line of what we do. Others are more value proposition type offerings. The markets use both of those to go back and approach, and they both impact a little bit in how you see those line items shape out. But yeah, I think they have an impact. That's layered in. It's not, it's the case and scenario that we see every year. And just depend on the magnitude. If we think there's something notable and material, we'll call that out so you make sure you have a proper perspective and insight to what's happening.

Christina Xue (Analyst)

Okay, and then the last question on, I noticed SG&A as a percentage of sales came in kind of higher than expected this quarter. I know it's due to the impact of the commercial team reorganization. So looking ahead to next year, do you kind of expect this ratio to continue to trend higher, or are there opportunities for leverage and efficiency improvements?

Jim Brown (President and CEO)

Yeah, I think there's obviously opportunity for some leverage benefit there. I think a few of the things you have to note as you look at what you saw in our press release is there are some numbers in there for Hiya. There's roughly $1.2 million in there in SG&A for Hiya, even in that little stub period. Their SG&A looks different than ours. They have a different spin pattern. They don't have incentives, so a lot of their sales activity is layered into that line. And so you'll see just because of the mix between the two, between the USANA business and the Hiya business, you'll see some dynamic there.

And then the other area we're being touched up a little bit is the impact of these negative exchange rates. We still have a pretty meaningful centralization of our overhead here in the U.S. As we see just some translation impact from currencies moving against us, you'll see that impact, how that gets reported as well relative to net sales.

Christina Xue (Analyst)

Yeah. I mean, for Hiya, that's part of the SG&A was included in the quarter, but then for 2025, Hiya is going to be in there as well. Or are you saying that's kind of like a one-time expense that's recognized in the quarter?

Jim Brown (President and CEO)

I think we have to look at it as Hiya was in there for six days, where it will be in there for 100% of the next year. That mix and that dynamic changes quite a bit. You'll definitely see more of an influence from Hiya on the overall results more so in 2025.

Christina Xue (Analyst)

Okay. Thank you.

Jim Brown (President and CEO)

All right. Thanks, Christina.

Operator (participant)

Your next question comes from Ivan Feinseth with Tigress Financial Partners. Please state your question.

Ivan Feinseth (Analyst)

Hi. Thanks for taking my questions and congratulations on wrapping up a great year. So far, how has the Hiya acquisition been going compared to your expectations? And do you think that over time you can integrate their manufacturing onto your platform and there could be some margin expansion there?

Walter Noot (COO)

Yeah, Ivan. This is Walter. Yes, it's going really well. We love the Hiya team. They've got great management and they've run their business really well. Definitely the advantage is operational advantage and IT advantage. So there are some things that we know how to do really well that we're helping them with as far as supply chain, last mile manufacturing. Those are all things that we're considering with them right now. We're working on those things. So we're taking them one piece at a time rather than trying to overload them because they've got great business that we don't want to mess up. But yeah, those are all things that'll help us with margin down the road.

Jim Brown (President and CEO)

I mean, just to add a little bit on it, and Walter said that, but we have to be extremely careful on what we put on the team. We don't want to overwhelm them and push them off their strategic plans for 2025, so we see a lot of opportunities, but it's going to be rolled out at a slower pace to make sure that we don't disrupt their business plan.

Doug Hekking (CFO)

Yeah, and Ivan, I'll chime in there a little bit just for some optics. We'll have some short-term primarily captured in 2025, some integration transition costs that will be reflected in there, and then we also have just a byproduct of the acquisition process, a step-up in inventory you'll see written off really over the first six months of the year, and so all those things will affect their P&L in the upcoming year.

Ivan Feinseth (Analyst)

Sounds good. Also, what kind of new product categories or areas could we expect to roll out in 2025? And then also, what products do you see have been strong and also surprisingly strong?

Jim Brown (President and CEO)

Ivan, this is Jim. We've had these conversations in the past. Part of our model is creating excitement for our associates and distributors around the world. So we usually don't really talk about stuff that's coming out unless it's at an event or a convention to get that excited and move forward. So I won't really touch on any specifics, but we did talk about upgrades, and that's going to happen throughout the year, and that's very important. Just the new commercial team working with R&D has become much more efficient and able to adjust and formulate products a lot quicker. So we're excited about that. But getting specifics, I just don't want to let the cat out of the bag.

Yeah, I would say one of the things that we've talked about, Ivan, a little bit is I think on the skincare side, you see that group maybe being a few steps ahead of kind of the other key product teams as far as getting a jumpstart in this. And so I think you'll see a little bit more in that area, and you see a real attention kind of our flagship products and nutritional supplements. And so that'll be a heavy focus as well.

Ivan Feinseth (Analyst)

Very good. Wishing you a big 2025.

Jim Brown (President and CEO)

Thanks, Ivan.

Doug Hekking (CFO)

Thanks, Ivan.

Operator (participant)

And your next question comes from Doug Lane with Water Tower Research. Please state your question.

Doug Lane (Analyst)

Hi. Yes. Good morning, everybody. Doug, you just made a large acquisition that's disrupted your balance sheet a little bit. No stock buybacks, and you have a little bit of debt coming out of the year. Maybe your cash balances are lower than they normally would be. So what's the outlook for 2025, and where do you think we'll see the balance sheet by the end of the year?

Doug Hekking (CFO)

Yeah. Listen, we're still sitting in a really solid position at about $182 million in cash at the end of the year. We'll probably add 50-60 to that line ballpark. And so I think we're moving in a great direction. We'll continue to invest heavily in the business as we move forward. And so I think it looks good. You'll see, obviously, kind of with the year-end balance sheet, you'll see some changes in inventory with how Hiya is carrying their inventory as well. So the composition will change a little bit. I think it's pretty easy to talk to. We carried over as part of the transaction $23 million in debt. Plans are right now we'll probably have that retired mid-year would be the kind of plan and estimate at this point.

Doug Lane (Analyst)

Should we put some share repurchase in the models for this year?

Doug Hekking (CFO)

Yeah. I think generally what we've communicated as a standard is that we'd go in and be active in the market at a level to at least take out the effect of the equity comp program and managed dilution there. Outside of there, it's an ongoing conversation with the board as far as capital allocation, where that's best spent, and so as we have more visibility there, we'll make sure we kind of give a heads-up on that.

Doug Lane (Analyst)

No, that makes sense. And then capital needs for Hiya. Anything unusual there?

Doug Hekking (CFO)

No. Like I said, there's some short-term. As we go back and integrate, we still have several moving pieces going on, but I think they've proven the fact. They're a competent team. They have a lot of great things in place, and so we want to be very intentional to go back and do things that are additive and things that make sense collectively for the long term, and so we're still in the process of prioritizing that. Some things, as Walter indicated, we've already got a jumpstart on and moving forward on, and other things we're in the process of evaluating, so there's not a whole lot. If you look at their model, they're pretty cash generative, and they don't have much capital intensity to what they do, so it's a pretty intuitive relationship between the business and what it generates.

Doug Lane (Analyst)

I don't see an outlook for capital spending specifically for this year, but should we assume it would be in line with levels in the past, at least as a percent of sales?

Doug Hekking (CFO)

Yeah, 1%-1.5% in that range.

Doug Lane (Analyst)

Okay. That makes sense. Thank you and just shifting, you've got product associate incentives, brand messaging. Is there any bigger picture changes going on with your model? You read all the time about the affiliate model. A lot of people in direct selling are going to the affiliate model. I don't see the word affiliate in here, but is this sort of what you're doing, trying to get the social media seller that wants the immediate payout, maybe lower-priced products? Just what's the thinking behind all these modifications that you're making to your model? Not major modifications, but just tweaks to the model going into 2025.

Jim Brown (President and CEO)

Yeah. Definitely, tweaks to the model is a good way to describe it. And we're committed to the direct selling channel, where there have been some large companies that have been in the news that have moved away from that. That's not our intent at all. We're just trying to make our model more appealing to people coming into the business. We talk a lot about the gig economy, and there's easy ways to earn money out there. And we want to be more attractive to that group. And I think just the long term, our direct sales model and our incentive program has been very long term over the years. So we want to get some enhancements and bonuses upfront to just drive more people into the business and stay longer with the business.

But just to reiterate, we're not looking at going away from the model that's kept us in business for 32 and a half years.

Doug Hekking (CFO)

Yeah. And I would say, at Jim's direction and with Brent's leadership on the sales side, these are things that we've been testing in various degrees in the different markets for several years now. And so I think we've used that to get informed and understand kind of what we'd expect from kind of behavior and influence in the business as a whole. And so I think it's a fairly intentional process in how we've approached it as well.

Doug Lane (Analyst)

Okay. That's good color. Thank you.

Jim Brown (President and CEO)

Thanks, Doug.

Doug Lane (Analyst)

Thanks, Jim.

Operator (participant)

Thank you. And there are no further questions at this time. I'll hand the floor back to management for closing remarks.

Jim Brown (President and CEO)

Thanks for your questions and participation on today's conference call. If you have any remaining questions, please feel free to contact investor relations at 801-954-7210.

Operator (participant)

Thank you. With that, we conclude today's call. All parties may disconnect. Have a good day.