WEB NEWS Comments & Business Outlook
First Quarter 2013 Results
Net sales for the first quarter of 2013 totaled $59.2 million, a 15.5% increase compared to $51.3 million in the same quarter of 2012.
Income from continuing operations for the first quarter of 2013 was $5.5 million, compared to $2.6 million for the same period last year.
Income per diluted share from continuing operations for the first quarter of 2013 increased to $0.18, compared to $0.09 for the same quarter a year ago.
Bruce M. Cazenave, Chief Executive Officer, stated, “We are pleased to report a solid start to fiscal 2013. We continued to build on the strong momentum established last year and delivered strong growth in revenue, gross margin, and profitability in the first quarter this year. Our Direct business continued to perform very well, reflecting both the steady growth of our existing products, as well as the initial success of our new products, including the Bowflex® UpperCut™. As anticipated, our Retail business was impacted by the continued soft overall Retail environment for fitness equipment. Given the recent margin and sales challenges we have faced in Retail, we are encouraged by the margin improvement in the first quarter. As previously communicated, we have been focused on the development and successful placement of a new lineup of cardio products for shipment during the next Retail planning and sales cycle starting this fall. These products appear to be receiving a favorable reception thus far, although it is much too early to determine to what extent preliminary indications may lead to improvement in Retail results.”
For the first quarter of 2013, the Company reported net income (including discontinued operations) of $5.2 million, or $0.17 per diluted share, compared to $2.5 million, or $0.08 per diluted share, for the first quarter of 2012. Net income for the first quarter of 2013 included a loss of $0.4 million, or ($0.01) per diluted share, from discontinued operations. Net income for the first quarter of 2012 included a loss of $0.1 million, or ($0.01) per diluted share, from discontinued operations.
Mr. Cazenave continued, “The business is achieving momentum and is beginning to realize the financial benefits from our team’s successful execution on key areas of focus, including establishing an expanded and more diversified product portfolio and improving gross margins. In order to further expand consumer awareness of our most recently launched products, we will continue to prudently invest in our sales and marketing efforts with a constant eye on building a strong foundation for continued long-term profitable growth. ”
Research
Alert sent to members on 1/4/2013
On January 2, 2013 we coded Nautilus Group (NYSE:NLS) as a GeoBargain @ $3.70 . Although the fourth quarter 2012 faces some challenges with high analyst EPS estimates of $0.19 , we believe the year over year growth will be strong and will look to aggressively buy if the stock drops because of missing the analyst EPS estimates.
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Comments & Business Outlook
VANCOUVER, WASHINGTON--(BUSINESS WIRE
Nautilus expects to report net sales of approximately $65.0 million for the fourth quarter of 2012, an increase of 8.4% compared to the fourth quarter of 2011. For the full year 2012, net sales are expected to approximate $194.0 million, an increase of 7.5% compared to 2011.
Fully diluted earnings per share from continuing operations are estimated to be in the range of $0.21 - $0.23 for the fourth quarter of 2012, compared to $0.11 per share for the fourth quarter of 2011. Fully diluted earnings per share from continuing operations on a full year basis are expected to be in the range of $0.32 - $0.34 in 2012, versus $0.08 per share in 2011.
“We’re very pleased to see strong sales growth in the fourth quarter of 2012 driven by significant increased demand in our Direct channel.” said Bruce M. Cazenave, CEO of Nautilus, Inc. “Continued margin improvement and tight management of our expenses enabled us to deliver significant bottom line improvement versus the same period in the prior year. In 2011, we implemented a number of operational initiatives to drive improvements in three key focus areas of our business: increase margins, increase new product innovation and increase leverage of our operating costs. Our fourth quarter results are further affirmation that our plan is solid and our initiatives are working. I am proud of our entire employee base for all their efforts in making these improved results happen and continuing to build on them for the future. We look forward to sharing further details in our upcoming earnings release and quarterly conference call.”
Comments & Business Outlook
VANCOUVER, Wash.--(BUSINESS WIRE January 14, 2013 - Nautilus, Inc. (NYSE: NLS), a leader in innovative home fitness equipment, today announced the release of the new Bowflex® UpperCut™. This product enables you to perform unique variations of presses, pikes, dives and fly exercises, transforming ”old school” moves into a high-tech workout that sculpts your upper body. The UpperCut workout is an incredibly effective way to get ripped arms, sculpted shoulders, and rock hard abs and chest.
The “ARC (Activation, Repetition, Control) Technology” in the product is scientifically proven to activate up to 30 percent more muscle, enable up to four times more repetitions and deliver perfect control and muscle engagement, allowing users to perform moves they could not do unassisted.
Along with the product, Nautilus is distributing a mobile web app that includes five UpperCut workouts available on iOS and Android platforms. Together, this all-in-one portable fitness solution eliminates the need for multiple pieces of equipment and provides an almost limitless variety of strength-building workouts.
“UpperCut is designed for people who want to take their strength workouts to the next level,” said Bruce Cazenave, CEO of Nautilus, Inc. “This innovative strength product is a natural addition to the Bowflex brand, which is synonymous with strength, technology, and results.”
The release of UpperCut™ is the latest in Bowflex®’s growing line of groundbreaking fitness equipment which includes products such as TreadClimber®, SelectTech® Dumbbells, BodyTower™ and Revolution®.
