For the year, total net revenue grew 6% and adjusted comparable store sales grew nearly 3%, resulting in adjusted earnings per share of $0.64 for fiscal 2023. Underlying our top line performance in Q4 and full year was ongoing strength in our managed care business, as our traditional budget conscious customer base continued to feel the impact of inflation and other macro-related headwinds. For the year, managed care represented approximately 35% of overall revenues, an increase of approximately 250 basis points compared to our prior historical trend of one-third of sales. This is another indication of the ongoing trade-down behavior we see from customers with higher incomes than our traditional customer base. We believe that managed care will continue to grow as a percentage of our business as we remain underpenetrated in this sector.

And we believe more balanced between our managed care and cash-pay customers will make our business more resilient overall. 2023 was a year in which we began to transform our business to better compete in today's marketplace. When we started the year, we set out to enhance the foundation of ongoing profitable growth and we have made great progress. Specifically, we delivered improved retention of optometrists, record optometrist recruitment and continued success of our remote exam initiatives. We successfully expanded exam capacity. This was the second year of improvement in retention and a record year in recruiting more experienced and student hires. Notably, over 10% of all optometric graduates from the entire class of 2023 joined our network in 2023.

Also we're happy to welcome 20 doctors that were previously practicing at Walmart Vision Centers under our management. Regarding our remote exam initiative remote care proved to be profitable in its second year of operations an accomplishment we take pride in given that remote represents a complex multidimensional tech startup inside our more traditional bricks-and-mortar company. In 2023, we expanded remote capabilities into over 200 additional America's Best locations. And as of year end we had nearly 550 America's Best locations remote enabled. Remote exams now represent over 5% of all exams. While it's still evolving and improving we regard the remote program as a success and are confident it will continue contributing to our business and profits.

We also continued our store digitization efforts aimed at improving efficiency and productivity. The rollout of Electronic Health Records or EHR in America's Best locations continues to advance. And in our corporate office we began the first phase of implementation of the back-office ERP project to upgrade our financial system. We made progress in our objective to leverage omni-channel capabilities by continuing to test and progress programs that attract consumers across omni-channel offerings. We opened 70 new stores in 2023 including 17 new stores in the fourth quarter continuing to capitalize on white space opportunities as store openings remain an important part of our strategic growth initiatives. And finally, we're very proud that our philanthropic efforts helped 1.4 million people around the world to see better.

In addition to this work, we also took actions to adapt our business and cost structure as we enter 2024 and embark on the first chapter of the post-Walmart era. The transition of the Walmart stores is now complete. During the fourth quarter, we transitioned four of the 229 Walmart Vision Centers to Walmart, which prepared us for the smooth transition of the remaining 225 stores last week. I am deeply appreciative of the Walmart-based associates and optometrists for their resilience, commitment and professionalism during this time of transition and for their decades of commitment and service to patients and customer care. In addition, we streamlined our lab network by ending our outsourced lab relationship in China in anticipation of lower lab volumes due to the Walmart contract termination.

This will enable us to leverage our fixed cost structure more effectively as we distribute the work between our four domestic labs and our remaining outsourced lab in Mexico all of which can now match or beat the all-in cost of the China lab. Concurrently, this action diminishes our dependency on China something we have been progressing towards for the past few years. We also implemented the various pricing and cost savings initiatives we discussed last quarter. These actions included approximately $15 million in pricing and a reduction of corporate overhead and other corporate costs which we expect to result in $10 million of annual cost savings in fiscal 2024. With respect to our AC Lens operations as we discussed in our third quarter release, we will fulfill the remaining commitments in our Walmart and Sam's Club agreements to supply contact lens distribution and related services till the end of June and are on track to streamline our distribution network and wind down these operations by June 30th.

Finally, as part of our ongoing detailed performance review of all our stores and markets, we found that there would be significant operational efficiencies and increased profitability for the business overall, if we focused our California market exclusively on the America's Best brand versus dividing up the markets in the state as we have previously done. We are, therefore, planning to convert the 20 Eyeglass World California stores to America's Best. This conversion is expected to be complete by the end of the first quarter. Operational efficiencies will come in the form of reduced field overheads, leveraging of national advertising, better leveraging of optometrist deployment and reduced travel. Looking ahead to 2024, we plan to build off the stronger foundation we established in 2023 and remain focused on executing against our initiatives including expanding exam capacity, furthering our digitization efforts to improve efficiency and productivity leveraging our omnichannel capabilities and continuing to capitalize on our white space opportunity.

With respect to expanding exam capacity, we will continue with our recruiting, retention and remote efforts. We will continue to leverage the recruiting and retention initiatives put in place in 2023 including flexible scheduling options. Regarding our 2024 plans for remote, our remote capabilities are an important tool to leverage especially amidst the changing optometric landscape. As we look at new store openings, we're taking into consideration the ability to implement the remote offering especially as we monitor doctor availability in new and fill-in markets. In 2024, we expect to open 65 to 70 new stores, the vast majority of which will be in our America's Best brand again this year. As we mentioned on our last call, we plan to slow the pace of the rollout in 2024 as we near completion of the heavy initial implementation phase of this program and continue to monitor the evolving regulatory landscape.

In 2024, we now plan to equip approximately 50 additional stores with remote exam capabilities. As Melissa will discuss our plans for expanding our remote technology have evolved over this year particularly with respect to the timing of our deployment to larger states such as Texas. While we continue to see opportunities to implement remote capabilities beyond the planned 600 stores by the end of 2024, we want to ensure we are taking a measured approach as we assess new states and markets. That said, we continue to expect to advance our electronic health records platform to over 400 of our America's Best stores by year-end and complete the digitization of our paper records for the entire America's Best fleet in 2024, which we believe will drive further efficiencies and productivity in our stores.

As we discussed last quarter, we have initiated a review of our Eyeglass World operations. While we're pleased with the sequential improvement we delivered in Eyeglass World in the fourth quarter there is still more work to be done. Eyeglass World is not yet performing to our standards and we're taking actions to improve results. First, we're taking pages from the America's Best playbook with respect to recruiting retention and remote initiatives. While there are distinct differences in the doctor models between America's Best and Eyeglass World, which make a full rollout of remote capabilities less feasible, we will be expanding remote into select Eyeglass World locations in 2024 as part of our overall remote deployment strategy. And we'll continue to evaluate opportunities over time.

Second, we made leadership changes within Eyeglass World, including adding one of our most experienced and highly respected America's Best leaders, who brings a proven track record of driving results. Third, we have plans in place to better allocate marketing spend focused on driving results for Eyeglass World. We believe the leadership changes and marketing adjustments we are making will drive improvements as we progress through 2024. As these operational improvements gain traction, we intend to increase the number of Eyeglass World new store openings. Looking ahead, we also plan to continue our early-stage exploration of new technologies and leverage our investment in Toku Inc., a leader in applying AI-powered diagnostic and screening tools to retinal imaging.

The eye is a treasure trove of medical information and we look forward to over time potentially playing an expanded role in our patient's health care. Before I close, I want to provide our current thoughts on the purchase cycle, as we head into 2024. We and our industry have been waiting for a return to a more normalized purchase cycle, especially for cash pay customers, since the COVID disruptions of 2020 and 2021. To date, the data has been inconsistent and therefore it's too soon to say the purchase cycles have normalized. While we had some encouraging signs in 2023 with a better back-to-school season and strong end-of-year sales, we are awaiting our next data point which will come in March, typically our high seasonality period due to tax refunds.

That said, our guidance which Melissa will soon review takes into account a softer-than-expected start to 2024. However, we are encouraged by the sequential improvement in revenues from January into February. With that, I will turn the call over to Melissa to review our results and outlook in more detail.

Melissa Rasmussen: Thank you, Reade and good morning everyone. Before I discuss our results, I would like to introduce our new Head of Investor Relations, Tamara Gonzalez. Tamara is an experienced Investor Relations professional, well versed in the consumer sector having spent time on the sell side covering broadline retail companies after starting her career in Investor Relations at The Home Depot. We are excited to have her on board, as we further our Investor Relations efforts. Turning now to our results. As Reade said, we are pleased to have delivered fourth quarter and full year results that came in ahead of our expectations. Our strong year-end results were driven by crisp execution of our strategic initiatives and disciplined expense management, driving both top line improvement in our growth brands and better-than-expected adjusted operating income.

Throughout the fiscal year, we made solid progress in improving exam capacity and mitigating the impact of dark and dense stores on our results. For the year, on average, dark stores represented a low single-digit percentage of our America's Best fleet, which is in line with our historical norm and an improvement from the peak mid-single-digit percentage we saw in 2022. Dim stores on average for the year represented a high single-digit percentage of the America's Best fleet, reflecting a trend that is still higher than our historical norm, but an improvement compared to the prior year. As Reade noted, store openings remain an important part of our growth plan and doctor availability, as well as remote capabilities are key considerations in our expansion plans as we select locations for new store openings.

Now, moving on to our fourth quarter results in more detail. For the fourth quarter, net revenue increased 8% compared to the prior year, driven by adjusted comparable store sales growth of 5.7% and growth from new store sales. Adjusted comparable store sales were driven by an increase in customer transactions and to a lesser extent higher average ticket. The timing of unearned revenue benefited revenue in the period by 20 basis points. We opened 16 new America's Best and one Eyeglass World store in the fourth quarter. Unit growth in our America's Best and Eyeglass World brands increased 4.4% on a combined basis over the total store base last year and we ended the quarter with 1,413 stores. As a percentage of net revenue costs applicable to revenue increased approximately 140 basis points compared with the prior year quarter, driven primarily by higher optometrist-related costs and a lower service revenue including warranty revenue as well as other mix and margin effects.

These cost increases were offset by ongoing strength in exam revenue as well as a decrease in freight expense. For the quarter, the net impact from deleverage of optometrist-related costs and the increase in exam revenue was approximately 90 basis points, which is higher than previous quarters in the year due to timing of benefit-related accruals. Adjusted SG&A expense as a percentage of revenue decreased 260 basis points compared with the fourth quarter of 2022. The decrease in adjusted SG&A as a percentage of net revenue was primarily driven by lower advertising, legal and professional expenses, and reflects disciplined expense management we have taken across the organization. Depreciation and amortization expense was $24.1 million compared to $24.7 million in the prior year period and was slightly better than our expectations, primarily due to the intangible asset impairment recorded as a result of the termination of our Walmart partnership.

Adjusted operating income was $0.3 million compared to an adjusted operating loss of $6.8 million in the prior year period. Adjusted operating margin increased 150 basis points to 0.1% compared to the prior year period due primarily to factors previously discussed. Net interest expense was $3.9 million compared to $2.6 million in the prior year period. The year-over-year interest increase was driven primarily by an increase of $3.1 million of non-cash mark-to-market charges, which were offset by an increase in interest income of $1 million and a decrease in interest expense of $0.8 million compared to the prior year period. As a reminder our interest guidance excludes non-cash mark-to-market and deferred financing costs which totaled $4.3 million for the period.

Excluding these costs, interest was a benefit of $0.4 million. Our effective tax rate in the fourth quarter was 10.1%, primarily due to increases in unfavorable book-to-tax differences, which offset the tax benefit of the pre-tax book loss in the period. Adjusted diluted EPS was negative $0.02 per share in the fourth quarter compared to negative $0.08 per share in the prior year period. Turning to our financial results for fiscal 2023 compared to the prior year period. Net revenue increased 6% driven by new stores and adjusted comparable store sales growth of 2.9%, the timing of unearned revenue positively impacted net revenue by 20 basis points. Adjusted operating margin declined 100 basis points compared with the prior year period, driven primarily by the expected deleverage of optometrist-related costs and the normalization of our incentive compensation program.

For the year, adjusted diluted earnings per share were $0.64 compared to $0.65 in fiscal 2022. Please note, our adjusted results for the fourth quarter and full year exclude the impacts associated with one-time charges related to the termination of our Walmart partnership and related wind down of AC Lens operations, cost savings initiatives, charges related to our ERP rollout and other non-recurring items that are detailed in the reconciliation tables found in our press release. We are on track to substantially complete the first phase of our ERP project by the end of fiscal 2024. During 2023, we incurred approximately $2.5 million of expenses related to the project, of which approximately $2 million was capitalized. We continue to expect to incur approximately $11 million to $13 million in one-time expenses related to the first phase of the project, inclusive of the 2023 expenses.

Turning next to our balance sheet. We ended the year with a cash balance of approximately $150 million and total liquidity of $444 million, including available capacity from our revolving credit facility. As of December 30, our total debt outstanding was $465 million and for the trailing 12 months, we ended the year with a net debt to adjusted EBITDA of 1.9 times. In 2023, we generated operating cash flow of $173 million and invested $116 million in capital expenditures, primarily driven by investments in new stores, our labs, distribution center, doctor equipment and in-store lab equipment. As we announced in November, we repurchased $100 million of our convertible senior notes for an aggregate cash repurchase price, inclusive of premium paid of $99.25 million.

We continue to maintain a strong balance sheet and healthy cash flow to support our growth and capital allocation priorities. In 2024, our first priority with respect to capital allocation will continue to be the investment in our growth through new store openings and technology investments as we continue to digitize our stores in corporate office. Our second priority will be our focus on our debt structure, given the pending May 2025 maturity of the convertible notes. As we demonstrated, with the repurchase in November, we plan to take fiscally responsible actions with our outstanding balance and are monitoring the market for future opportunistic actions and other potential strategies. Our third priority is returning excess cash to shareholders.

While we do not expect to repurchase shares in the near term given our other stated priorities for 2024, we are pleased to announce a new repurchase authorization of $50 million in place through January 3, 2026, given our original repurchase authorization expired on December 30, 2023. We continue to evaluate opportunities to repurchase shares based on available investment opportunities, our financial position, and market conditions. Moving now to the discussion of our 2024 outlook. For our 2024 fiscal year, we currently expect net revenue between $1.965 billion and $2.005 billion supported by adjusted comparable store sales growth of 2% to 4% and new store sales based on our expectation to open between 65 and 70 new stores this year. With respect to profitability for 2024, we expect adjusted operating income between $61 million and $76 million.

This includes the range for depreciation and amortization of $95 million to $100 million. We expect adjusted diluted EPS to be between $0.50 per share and $0.65 per share, which assumes approximately 79 million weighted average diluted shares outstanding. Our guidance range includes, the expected revenue and profitability from Walmart and AC Lens operations through their respective contract terms. As laid out on slide 15 of our earnings presentation, we expect legacy segment revenue of approximately $16 million and adjusted operating income of $0.5 million in the first quarter. And AC Lens is expected to deliver approximately $129 million of revenue and $2 million of adjusted operating income in the first half of the year split evenly across first and second quarter.

In addition, our outlook for fiscal 2024 assumes a range of scenarios with respect to consumer sentiment ongoing success with our America's Best brand and performance improvement in Eyeglass World. As Reade noted the year started softer than expected but we have seen sequential improvement as the quarter has progressed. While it is not our practice to provide quarterly guidance, given where we are in the quarter we felt it appropriate to provide some direction for modeling purposes. We expect first quarter adjusted comparable store sales to be flat to slightly negative compared to the prior year. This expectation incorporates a 40 to 50 basis point drag from Walmart performance. The high end of our full year guidance assumes further strengthening in trends as the year progresses supported by continued strong performance in America's Best and improved performance in Eyeglass World, as well as improved consumer backdrop.

The low end of our guidance assumes a weaker consumer environment impacting demand trends and less success in improving Eyeglass World's performance through the operational changes Reade discussed. As we discussed on our last call, the profit gap created by the Walmart partnership termination would be addressed through non-headline pricing and expense actions which were implemented before the end of fiscal 2023, allowing us to realize the full year benefit in 2024, which more than offset this headwind. The pricing actions focused on stand-alone exams and targeted product offerings which are expected to benefit 2024 by approximately $15 million. In addition to the pricing actions, we also streamlined corporate overhead and third-party spend in the fourth quarter of 2023, which we expect will result in approximately $10 million of annualized cost savings in 2024.

At the midpoint of our guidance range, we expect to deliver an adjusted operating income margin in line with fiscal 2023, which came in ahead of expectations due to operational improvement in America's Best and disciplined expense management. We also expect gross margin expansion of approximately 200 basis points for the year. This assumes benefits from the pricing actions, margin expansion as we exit the lower margin Walmart and AC Lens businesses and improved productivity. In addition, we expect adjusted SG&A to deleverage approximately 150 basis points, primarily driven by the year-over-year decline in revenue given the termination of Walmart business. This expectation also considers the $10 million of annualized cost savings as well as increased levels of annual operating expense, related to cloud amortization and ongoing investments in our growth.

We expect marketing spend dollars to be below 2023. But as Reade noted, we will be shifting marketing dollars to focus on driving improved Eyeglass World performance, while continuing to leverage the strong national presence that America's Best holds. Looking further ahead, we believe we are well positioned to achieve our mid-single-digit adjusted operating margin target in 2025. However, the composition of how we expect to get there has evolved. Remote is now more fully embedded in our normal course of business and as we have discussed is an important tool in delivering improved results within the America's Best brand, as reflected in our 2023 performance. We expect this capability to continue to be a healthy contributor to our overall financial results, going forward and its benefit is incorporated in our 2024 guidance along with our updated plans for deployment which Reade reviewed.

In addition to remote, our 2025 margin target also included expectations related to returning to mid-single-digit adjusted comp performance, driven by expanding exam capacity and improving consumer sentiment. We have been and continue to be acutely focused on the factors of comp that we can control with respect to exam capacity and pricing and are continuing to monitor the evolving trends within the optical purchase cycle that Reade discussed. Given these current views on remote and the progress we are making in driving improved top line results, we now expect future margin expansions to come primarily from improved productivity, gross margin expansion and expense leverage across the company through 2024 and into 2025. As illustrated on Slide 17, with the strong progress made in 2023, and assuming we deliver at least the midpoint of our 2024 expectations for adjusted operating margin we will be well positioned to achieve mid-single-digit adjusted operating margin in 2025.

As we have always said, our 2025 objective is not our end goal. And we will continue to drive further margin improvement going forward. I am proud of our team's dedication and focus on driving our initiatives to-date, and believe we remain well positioned to deliver our objectives including driving value for our shareholders. Thank you for your time today. I will now turn the call over to Reade, for closing remarks before we open the call for questions. Reade?

Reade Fahs: Thank you, Melissa. To summarize our stronger-than-expected end of the year was driven by crisp execution including expanded exam capacity, disciplined expense management, continued strength in our managed care business and effective marketing campaigns. For the full year, we delivered on our initiatives and drove strong improvement at America's Best. We executed on cost and pricing actions, which will benefit 2024 and more than offset the profitability gap from the Walmart partnership termination. In 2024, we're committed to building off the stronger foundation we established in 2023. We remain focused on executing against our initiatives, which have a proven track record as demonstrated in the progress we've made with America's Best.

We plan to continue to build on this progress at America's Best and drive improvement in Eyeglass World, all of which is incorporated in our guidance. We believe through this work we are well positioned to drive long-term profitable growth, create value for shareholders and further our mission to make quality eye care and eyewear more affordable and accessible for all. And with that, we will now turn the call over to the operator for questions.

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