Highlights from the fourth quarter 2006 conference call:
Customer satisfaction increased from 65% in Fall 2005 to 82% by the end of 2006.
After the acquisition of Universal Health and Fitness, the company now has six leading brands.
Their international equipment business grew by 49% and is expected to grow by 15 to 30% in 2007. +++++++++++++++++++ The Pearl Izumi line of cycling apparel and footwear grew 46% to $13 million in sales.
Nautilus branded apparel was launched in Q3 2006.
Apparel growth is expected to be between 10 to 20% in 2007.
Nautilus is currently in the process of testing its apparel at 5 to 10 Sports Authority stores. +++++++++++++++++++++++++++++++++++++++++++++++ 75% of products are now sourced from Asia.
Nautilus plans to acquire its largest contract manufacturer, China-based Land America Health and Fitness in 2007.
The company expects significant improvements in gross margins by 2008.
After promising the launch of 14 products in 2006, the company exceeded expectations by launching a total of 17 products in 2006.
95% of revenue came from products that did not exist before the current management team took over. ++++++++++++++++++++++++ -Nautilus expects revenue growth of approximately 10% and earnings growth of 20 to 30% in 2007.