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Nautilus Inc. Message Board

  • bluecheese4u bluecheese4u May 7, 2012 7:29 PM Flag

    Nautilus, Inc. Reports Strong Results for the First Quarter 2012

    Nautilus, Inc. Reports Strong Results for the First Quarter 2012

    First Quarter Income from Continuing Operations Increased 136%

    Operating Margin Improved 180 Basis Points

    VANCOUVER, WASHINGTON--(BUSINESS WIRE)-- May 7, 2012 - Nautilus, Inc. (NYSE: NLS) reported today its unaudited operating results for the first quarter ended March 31, 2012. Continuing the momentum established in 2011, net sales for the first quarter ended March 31, 2012 totaled $51.3 million, an increase of 6.1% compared to net sales of $48.3 million for the same quarter in 2011. Gross margin for the first quarter of 2012 improved 90 basis points to 46.6% compared to 45.7% for the same quarter in 2011. The increase in gross margin was primarily due to a greater proportion of sales being derived from the higher margin Direct segment. Operating margin for the first quarter of 2012 improved 180 basis points to 5.5%, compared to 3.7% for the same period last year.

    Income from continuing operations for the first quarter ended March 31, 2012 was $2.6 million, compared to $1.1 million for the same period last year. Diluted income per share from continuing operations for the first quarter of 2012 was $0.09, compared to $0.04 for the same quarter a year ago. The significant improvement in results from continuing operations reflects stronger sales, improved gross margins, and lower operating expenses as a percentage of sales, mainly due to lower general and administrative expense.

    Bruce M. Cazenave, Chief Executive Officer, stated, "We are pleased with our start to fiscal 2012. The increased revenues and improved bottom line profitability are consistent with our stated priority of delivering sustainable and profitable growth. Our first quarter results benefited from revenue growth in the Direct channel driven by the continued success of a number of products, higher gross margins and diligent management of operating expenses for all areas of our business. Importantly, we also pre-paid all amounts outstanding under our senior notes issued in 2010 and ended the quarter with a strong balance sheet, including cash of over $20 million. This gives us the financial flexibility to make strategic investments in our business as we see appropriate."

    Mr. Cazenave continued, "We are excited about our outlook for the remainder of the year and remain confident that we are well positioned to continue to deliver improved year-over-year financial results. As part of our continuing initiative to introduce innovative new products that satisfy changing customer needs and diversify our product portfolio, we recently launched the Bowflex® BodyTower™, which is a unique, strength training product that leverages our well recognized Bowflex® brand. Initial consumer response to this product has been encouraging and we look forward to continuing to roll-out more new products in the coming quarters."

    The Company reported net income (including discontinued operation) of $2.5 million for the first quarter of 2012, compared to $1.6 million for the first quarter of 2011. Diluted net income per share for the first quarter of 2012 was $0.08, compared to $0.05 for the same quarter a year ago. Net income for the 2012 first quarter included a loss from discontinued operation of $0.1 million, or $(0.01) per diluted share, compared to income from discontinued operation of $0.5 million, or $0.01 per diluted share for the 2011 first quarter.

    For further information, see

    http://investors.nautilusinc.com/releasedetail.cfm?ReleaseID=671008

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    • Just based on what was said during CC., my guess is they would have been closer to .11 EPS had not chosen to pay off the warrants and without the research study. Obviously both items are better for the long term. I do think they will hit close to .40 EPS for the year, possibly a good bit higher if the new products are successful and do not require an expensive advertising kickoff. I like their recent focus on sub $300 products given credit markets but hope they continue development on big ticket items so they are ready when consumer credit comes easier. Credit approvals are at 30% which is about half what they were before 2007. I do not expect we will see that improve much beyond 40% approval rating for many years to come.

      I am very confident in the current management team and continue to be long.

 
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