January 13, 2014 - Nautilus, Inc. (NYSE: NLS) announced its preliminary,
unaudited results for the fourth quarter and year ended December 31,
2013.
Nautilus expects to report net sales of approximately $77.1 million for
the fourth quarter of 2013, an increase of 18.5% compared to the fourth
quarter of 2012. For the full year 2013, net sales are expected to
approximate $218.8 million, an increase of 12.8% compared to 2012.
Non-GAAP fully diluted earnings per share from continuing operations are
estimated to be in the range of $0.29 - $0.31 for the fourth quarter of
2013, compared to $0.23 per share for the fourth quarter of 2012. On a
full year basis for 2013, non-GAAP fully diluted earnings per share from
continuing operations are expected to be in the range of $0.46 - $0.48
versus $0.34 per share in 2012. Non-GAAP fully diluted earnings per
share for the fourth quarter 2013 excludes income tax expense of $0.04
per share, and the non-GAAP figure for the full year 2013 excludes
income tax benefit of $1.05 per share. In the second quarter of 2013 the
Company recognized an income tax benefit of $1.09 per share as a result
of the partial reversal of the valuation allowance recorded against the
Company's deferred tax assets. During the fourth quarter of 2013 it was
determined that this reversal underestimated the Company’s full year
profitability and the Company expects to reestablish a portion of the
reversal, resulting in recognition of income tax expense of
approximately $0.04 per share in the fourth quarter of 2013.
"We're pleased to report sales growth in all segments of our business
for the fourth quarter of 2013," said Bruce M. Cazenave, CEO of
Nautilus, Inc. "Continued margin improvement in both of our Direct and
Retail businesses along with strategic investment in new product
launches enabled us to deliver significant bottom line improvement
versus the same period in the prior year. Our fourth quarter and full
year results are further affirmation that our plans and 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."
Nautilus plans to release its full operating results for the fourth
quarter and full year 2013 in late February 2014.
Non-GAAP Presentation
In addition to disclosing results determined in accordance with GAAP,
Nautilus discloses certain non-GAAP operating results that exclude
certain charges. In this news release, the Company has presented its
income from continuing operations and earnings per diluted share from
continuing operations for the fourth quarter and full year 2013
excluding net income tax expense and net income tax benefit,
respectively, each of which is a non-GAAP financial measure.
When presenting non-GAAP information, the Company includes a
reconciliation of the non-GAAP results to the most directly comparable
financial measure calculated and presented in accordance with GAAP. We
present adjusted results because management believes that due to the
non-recurring nature of the partial reversal of a valuation allowance
recorded against the Company's deferred tax assets, including the
non-GAAP results assists investors in assessing the Company's
operational performance relative to its competitors and its historical
financial performance. The Company presents these non-GAAP results as a
complement to results provided in accordance with GAAP, and these
results should not be regarded as a substitute for GAAP. The Company
strongly encourages you to review all of its financial statements and
publicly-filed reports in their entirety and to not rely on any single
financial measure.
For a quantitative reconciliation of our non-GAAP financial measures to
the most comparable GAAP measures, see "Reconciliation of Non-GAAP
Financial Measures" included with this release.
About Nautilus, Inc.
Headquartered in Vancouver, Washington, Nautilus, Inc. (NYSE: NLS) is a
global fitness products company providing innovative, quality solutions
to help people achieve a healthy lifestyle. With a brand portfolio
including Nautilus®, Bowflex®, TreadClimber®,
Schwinn®, Schwinn Fitness™ and Universal®,
Nautilus markets innovative fitness products through Direct and Retail
channels. Websites: www.nautilusinc.com
and www.bowflex.com
This press release includes forward-looking statements (statements which
are not historical facts) within the meaning of the Private Securities
Litigation Reform Act of 1995, including statements concerning: the
Company's prospects, resources or capabilities; current or future
financial and economic trends; future operating results; future plans
for introduction of new products and the anticipated reception of such
products; anticipated demand for the Company's new and existing
products; maintenance of appropriate inventory levels; growth in
revenues and profits; leverage of operating expenses and the results of
marketing and media investments. Factors that could cause Nautilus,
Inc.'s actual results to differ materially from these forward-looking
statements include our ability to timely acquire inventory that meets
our quality control standards from sole source foreign manufacturers at
acceptable costs, the effectiveness, availability and price of media
time consistent with our cost and audience profile parameters, greater
than anticipated costs associated with launch of new products, a decline
in consumer spending due to unfavorable economic conditions, softness in
the retail marketplace, an adverse change in the availability of credit
for our customers who finance their purchases, our ability to pass along
vendor raw material price increases and increased shipping costs, our
ability to effectively develop, market and sell future products, our
ability to protect our intellectual property, the introduction of
competing products, and our ability to get foreign-sourced product
through customs in a timely manner. Additional assumptions, risks and
uncertainties are described in detail in our registration statements,
reports and other filings with the Securities and Exchange Commission,
including the "Risk Factors" set forth in our Annual Report on Form
10-K, as supplemented by our quarterly reports on Form 10-Q. Such
filings are available on our website or at www.sec.gov.
You are cautioned that such statements are not guarantees of future
performance and that our actual results may differ materially from those
set forth in the forward-looking statements. We undertake no obligation
to publicly update or revise forward-looking statements to reflect
subsequent developments, events or circumstances.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
Continuing Operations Income and Diluted EPS (as reported and excluding
non-recurring items) (unaudited and in millions, except per share
amounts):
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Three Months Ended December 31, 2013
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Prelim
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Excluding non-
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Results
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Less non-
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recurring items
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(est range)
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recurring items(1)
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(est range)
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Income from continuing operations
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$
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8.0-8.6
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$
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(1.1
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$
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9.1-9.7
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Diluted net income per share
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$
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0.25-0.27
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$
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(0.04
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$
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0.29-0.31
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Twelve Months Ended December 31, 2013
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Prelim
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Excluding non-
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Results
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Less non-
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recurring items
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(est range)
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recurring items(1)
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(est range)(2)
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Income from continuing operations
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$
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47.7-48.3
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$
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33.0
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$
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14.6-15.2
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Diluted net income per share
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$
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1.52-1.54
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$
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1.05
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$
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0.46-0.48
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(1)
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Such items were offset by the after-tax impact of an income tax
benefit (expense) related to a partial reversal of a valuation
allowance recorded against the Company’s deferred tax assets.
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(2)
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May not add due to rounding.
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Copyright Business Wire 2014