Fourth Quarter Revenue Increased 15.0% Over Prior Year and Full
Year Revenue Grew 22.3%
Fourth Quarter Adjusted EPS from Continuing Operations was $0.39
versus $0.33 in Prior Year
Full Year Adjusted EPS from Continuing Operations up 45.3% to $0.93
February 22, 2016 - Nautilus, Inc. (NYSE: NLS) today reported its
unaudited operating results for the fourth quarter and full year ended
December 31, 2015.
Net sales for the fourth quarter of 2015 totaled $109.1 million, a 15.0%
increase compared to $94.9 million in the same quarter of 2014. The
strong growth was driven by higher sales in both the Direct and Retail
segments. For the full year 2015, net sales were $335.8 million, an
increase of 22.3% over last year. Gross margins for the fourth quarter
declined by 300 basis points to 48.1%, reflecting several unusual items
detailed below. Adjusted gross margins increased 120 basis points to
52.3%. Operating income for the fourth quarter of 2015 was $12.3
million, compared to $14.5 million in the same period last year.
Adjusted operating income increased 32.2% to $19.2 million. The increase
in adjusted operating income reflects higher sales in both the Direct
and Retail segments, as well as improved leverage of general and
administrative costs across the higher sales volumes. For the full year
2015, operating income was $40.3 million, compared to $30.2 million last
year, an increase of 33.6%. Adjusted operating income was $47.1 million
for the full year 2015 reflecting an increase of 56.2% compared to 2014.
Income from continuing operations for the fourth quarter of 2015 was
$9.9 million, or $0.32 per diluted share, compared to income from
continuing operations of $10.5 million, or $0.33 per diluted share, for
the fourth quarter of 2014. Earnings per diluted share from continuing
operations for the fourth quarter of 2015 includes approximately $(0.07)
of unusual items. Excluding these unusual items, the adjusted earnings
per diluted share from continuing operations was $0.39 per diluted
share. For the full year 2015, income from continuing operations was
$26.8 million, or $0.85 per diluted share, compared to $20.4 million, or
$0.64 per diluted share, in the prior year. Adjusted earnings per share
from continuing operations for the full year 2015 were $0.93 per diluted
share.
Adjusted earnings per diluted share for the fourth quarter and full year
2015 excludes transaction costs expensed to general and administrative
expense that were related to the acquisition of Octane Fitness
(approximately $0.02 per share) and the other following unusual items:
(1) settlement of a previously disclosed arbitration proceeding related
to a 1999 agreement under which Nautilus licensed certain rights
relating to TreadClimber® products (approximately $0.05 per
share) impacting gross margins; (2) write-off of inventory related to
the nutrition business which the Company is transitioning out of to
focus on opportunities presented by the recent Octane Fitness
acquisition (approximately $0.03 per share) impacting gross margins; (3)
the Company did not record any royalty due from a licensee during the
fourth quarter, and reversed out estimated royalties for the third
quarter as a result of a dispute that arose with the licensee during the
fourth quarter (approximately $0.03 per share) impacting gross margins.
The Company has filed a breach of contract lawsuit against the licensee
and intends to vigorously pursue all remedies for payment; (4) setup of
a reserve related to a potentially uncollectible accounts receivable
balance with a large sporting goods retailer (approximately $0.02 per
share) impacting sales and marketing expense; and (5) the release of a
valuation allowance related to foreign tax credits that favorably
impacted GAAP EPS by approximately $0.06 for the fourth quarter and full
year periods. See attached reconciliation of non-GAAP financial measures
below.
The effective income tax rate for continuing operations in the fourth
quarter of 2015 was 20.3% and 33.0% for the full year, reflecting the
release of a valuation allowance mentioned above.
For the fourth quarter of 2015, the Company reported net income
(including discontinued operations) of $9.7 million, or $0.31 per
diluted share; this includes a loss from discontinued operations of $0.1
million. In the fourth quarter of 2014, the Company reported net income
of $10.4 million, or $0.33 per diluted share; this includes a loss from
discontinued operations of $0.1 million.
As previously disclosed, on December 31, 2015, the Company completed the
acquisition of Octane Fitness, LLC, a leading fitness products company
(“Octane”), through the purchase of 100% of the capital stock of OF
Holdings, Inc., Octane’s parent corporation, from North Castle Partners,
a private equity firm, and other stockholders. The purchase price of
$115 million plus working capital and other adjustments was financed
through an $80 million term loan and cash on hand. For 2015, Octane is
expected to report sales of approximately $65 million. For more
information, please refer to the Company's press release dated January
4, 2016.
Bruce M. Cazenave, Chief Executive Officer, stated, “We are pleased to
deliver strong financial growth for both the fourth quarter and full
year 2015. Our performance reflects continued execution of our key
initiatives across all aspects of our business and highlights continued
success driving top line growth through product innovation and increased
market penetration. In 2015, Direct revenue grew by 28% compared to the
prior year, demonstrating strong consumer demand for the Max Trainer
product line. Our Retail segment revenues grew by 14% in 2015, a result
of solid contributions from both new and existing product categories as
well as gaining increased distribution points for Nautilus and Schwinn
branded products.”
Mr. Cazenave continued, “As we begin 2016, we are excited about the
positive momentum in the business and feel we are well positioned for
another year of revenue and earnings growth. We expect to benefit from
our recently announced acquisition of Octane Fitness, which further
diversifies our product portfolio, expands our channels of distribution,
and increases our access to international markets.”
For further information, see "Results of Operations Information"
attached hereto.
Segment Results
Net sales for the Direct segment were $67.0 million in the fourth
quarter of 2015, an increase of 15.5% over the comparable period last
year. Direct segment sales benefited from continued strong performance
of the Bowflex Max Trainer® product line as well as good
early demand for the newly refreshed TreadClimber® line,
partially offset by a decline in sales of other products. For the full
year 2015, net sales for the Direct segment were $225.6 million, an
increase of 28.5% over last year.
Operating income for the Direct segment was $9.9 million for the fourth
quarter of 2015, a decrease of 10.0% compared to operating income of
$11.0 million in the fourth quarter of 2014. Excluding certain
aforementioned unusual items, adjusted operating income increased 25.4%
to $13.8 million. Gross margin for the Direct business was 60.5% for the
fourth quarter of 2015, compared to 64.6% in the fourth quarter of last
year. Adjusted Direct gross margin was 66.3% in the fourth quarter 2015,
benefiting from improved product mix, supply chain efficiencies, and
lower reserve requirements.
Net sales for the Retail segment were $41.8 million in the fourth
quarter 2015, an increase of 20.7% over the fourth quarter last year.
The improvement in Retail net sales reflects continued retailer and
consumer acceptance of the Company's lineup of cardio products along
with growth in SelectTech® dumbbells. For the full year 2015,
net sales for the Retail segment totaled $106.2 million, an increase of
13.9% over the prior year.
Operating income for the Retail segment was $7.0 million for the fourth
quarter of 2015, an increase of 21.0% compared to operating income of
$5.7 million in the fourth quarter of 2014. Excluding certain
aforementioned unusual items, adjusted operating income increased 36.7%
to $7.9 million. Retail gross margin was 27.6% in the fourth quarter of
2015, compared to 25.2% in the same quarter of the prior year. Retail
gross margins for the fourth quarter of 2015 improved due to favorable
channel and product mix, and supply chain efficiencies.
Royalty revenue in the fourth quarter 2015 was $0.4 million, a decrease
of 84.0% compared to $2.3 million for the same quarter last year,
reflecting a dispute with a royalty licensee mentioned above.
For further information, see "Segment Information" attached hereto.
Balance Sheet
As of December 31, 2015, the Company had cash of $60.8 million and $80.0
million of debt, compared to cash of $72.2 million and no debt as of
December 31, 2014. Working capital of $69.4 million as of December 31,
2015 was $13.7 million lower than the 2014 year-end balance of $83.1
million, primarily due to a $11.4 million decrease in cash and a $16.0
million increase in current portion of long-term debt that were related
to the Octane acquisition. Inventory as of December 31, 2015 was $42.7
million, compared to $24.9 million as of December 31, 2014. The increase
in inventory is due to the Octane acquisition, higher revenues, new
product introductions, and the addition of a new distribution center.
For further information, see "Balance Sheet Information" attached
hereto.
Conference Call
Nautilus will host a conference call to discuss the Company's operating
results for the fourth quarter and full year ended December 31, 2015 at
4:30 p.m. ET (1:30 p.m. PT) on Monday, February 22, 2016. The call will
be broadcast live over the Internet hosted at www.nautilusinc.com/events
and will be archived online within one hour after completion of the
call. In addition, listeners may call (800) 735-5968 in North America
and international listeners may call (212) 231-2912. Participants from
the Company will include Bruce M. Cazenave, Chief Executive Officer, Sid
Nayar, Chief Financial Officer, and William B. McMahon, Chief Operating
Officer.
A telephonic playback will be available from 6:30 p.m. ET, February 22,
2016, through 6:30 p.m. ET, March 7, 2016. Participants can dial (800)
633-8284 in North America and international participants can dial (402)
977-9140 to hear the playback. The passcode for the playback is 21804351.
Non-GAAP Presentation
In addition to disclosing results determined in accordance with GAAP,
Nautilus has presented certain Non-GAAP financial results for the fourth
quarter and full year 2015 excluding certain unusual items.
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
unusual nature of the excluded items, 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 solutions company that believes everyone deserves a fit
and healthy life. With a brand portfolio including Bowflex®,
Nautilus®, Octane Fitness®, Schwinn®
and Universal®, Nautilus, Inc. develops innovative products
to support healthy living through direct and retail channels as well as
in commercial channels with Octane Fitness® products.
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; anticipated channel diversification,
anticipated demand for the Company's new and existing products; growth
in revenues and profits; anticipated benefits of the acquisition of
Octane; and anticipated pursuit of available remedies for non-payment
under a license agreement. Factors that could cause Nautilus, Inc.’s
actual results to differ materially from these forward-looking
statements include costs associated with the acquisition, failure to
successfully integrate the Octane business, achieve expected synergies
or realize other anticipated benefits of the transaction, our ability to
timely acquire inventory that meets our quality control standards from
sole source foreign manufacturers at acceptable costs, greater than
anticipated costs associated with launch of new products, incurrence of
unanticipated obligations under licensing agreements and the impact of
disputes regarding royalty obligations owed or owing to us, a decline in
consumer spending due to unfavorable economic conditions, and softness
in the retail marketplace. 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.
RESULTS OF OPERATIONS INFORMATION
The following summary contains information from our consolidated
statements of operations for the three and twelve months ended
December 31, 2015 and 2014 (unaudited and in thousands, except per share
amounts):
|
|
|
Three Months Ended December 31,
|
|
Twelve Months Ended December 31,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
109,140
|
|
|
$
|
94,930
|
|
|
$
|
335,764
|
|
|
$
|
274,447
|
|
Cost of sales
|
|
56,660
|
|
|
46,411
|
|
|
162,530
|
|
|
133,872
|
|
Gross profit
|
|
52,480
|
|
|
48,519
|
|
|
173,234
|
|
|
140,575
|
|
Gross profit %
|
|
48.1
|
%
|
|
51.1
|
%
|
|
51.6
|
%
|
|
51.2
|
%
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
Selling and marketing
|
|
31,425
|
|
|
26,510
|
|
|
101,618
|
|
|
81,059
|
|
General and administrative
|
|
6,065
|
|
|
5,624
|
|
|
21,441
|
|
|
22,131
|
|
Research and development
|
|
2,645
|
|
|
1,893
|
|
|
9,904
|
|
|
7,231
|
|
Total operating expenses
|
|
40,135
|
|
|
34,027
|
|
|
132,963
|
|
|
110,421
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
12,345
|
|
|
14,492
|
|
|
40,271
|
|
|
30,154
|
|
Other income (expense), net
|
|
16
|
|
|
123
|
|
|
(249
|
)
|
|
70
|
|
Income from continuing operations before income taxes
|
|
12,361
|
|
|
14,615
|
|
|
40,022
|
|
|
30,224
|
|
Income tax expense
|
|
2,509
|
|
|
4,142
|
|
|
13,219
|
|
|
9,841
|
|
Income from continuing operations
|
|
9,852
|
|
|
10,473
|
|
|
26,803
|
|
|
20,383
|
|
Loss from discontinued operations, net of income taxes
|
|
(134
|
)
|
|
(96
|
)
|
|
(201
|
)
|
|
(1,588
|
)
|
Net income
|
|
$
|
9,718
|
|
|
$
|
10,377
|
|
|
$
|
26,602
|
|
|
$
|
18,795
|
|
|
|
|
|
|
|
|
|
|
Basic income per share from continuing operations
|
|
$
|
0.32
|
|
|
$
|
0.33
|
|
|
$
|
0.86
|
|
|
$
|
0.65
|
|
Basic loss per share from discontinued operations
|
|
—
|
|
|
—
|
|
|
(0.01
|
)
|
|
(0.05
|
)
|
Basic net income per share(1)
|
|
$
|
0.31
|
|
|
$
|
0.33
|
|
|
$
|
0.85
|
|
|
$
|
0.60
|
|
|
|
|
|
|
|
|
|
|
Diluted income per share from continuing operations
|
|
$
|
0.32
|
|
|
$
|
0.33
|
|
|
$
|
0.85
|
|
|
$
|
0.64
|
|
Diluted loss per share from discontinued operations
|
|
—
|
|
|
—
|
|
|
(0.01
|
)
|
|
(0.05
|
)
|
Diluted net income per share(1)
|
|
$
|
0.31
|
|
|
$
|
0.33
|
|
|
$
|
0.84
|
|
|
$
|
0.59
|
|
|
|
|
|
|
|
|
|
|
Shares used in per share calculations:
|
|
|
|
|
|
|
|
|
Basic
|
|
30,992
|
|
|
31,319
|
|
|
31,288
|
|
|
31,253
|
|
Diluted
|
|
31,249
|
|
|
31,760
|
|
|
31,589
|
|
|
31,688
|
|
|
|
|
|
|
|
|
|
|
(1) May not add due to rounding.
|
|
|
|
|
|
|
|
|
|
SEGMENT INFORMATION
The following tables present certain comparative information by segment
for the three and twelve months ended December 31, 2015 and 2014
(unaudited and in thousands):
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
Change
|
|
|
2015
|
|
2014
|
|
$
|
|
%
|
Net sales:
|
|
|
|
|
|
|
|
|
Direct
|
|
$
|
67,000
|
|
|
$
|
58,004
|
|
|
$
|
8,996
|
|
|
15.5
|
%
|
Retail
|
|
41,771
|
|
|
34,614
|
|
|
7,157
|
|
|
20.7
|
%
|
Royalty income
|
|
369
|
|
|
2,312
|
|
|
(1,943
|
)
|
|
(84.0
|
)%
|
|
|
$
|
109,140
|
|
|
$
|
94,930
|
|
|
$
|
14,210
|
|
|
15.0
|
%
|
|
|
|
|
|
|
|
|
|
Operating income (loss):
|
|
|
|
|
|
|
|
|
Direct
|
|
$
|
9,869
|
|
|
$
|
10,970
|
|
|
$
|
(1,101
|
)
|
|
(10.0
|
)%
|
Retail
|
|
6,950
|
|
|
5,742
|
|
|
1,208
|
|
|
21.0
|
%
|
Unallocated corporate
|
|
(4,474
|
)
|
|
(2,220
|
)
|
|
(2,254
|
)
|
|
(101.5
|
)%
|
|
|
$
|
12,345
|
|
|
$
|
14,492
|
|
|
$
|
(2,147
|
)
|
|
(14.8
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended December 31,
|
|
Change
|
|
|
2015
|
|
2014
|
|
$
|
|
%
|
Net sales:
|
|
|
|
|
|
|
|
|
Direct
|
|
$
|
225,595
|
|
|
$
|
175,593
|
|
|
$
|
50,002
|
|
|
28.5
|
%
|
Retail
|
|
106,195
|
|
|
93,223
|
|
|
12,972
|
|
|
13.9
|
%
|
Royalty income
|
|
3,974
|
|
|
5,631
|
|
|
(1,657
|
)
|
|
(29.4
|
)%
|
|
|
$
|
335,764
|
|
|
$
|
274,447
|
|
|
$
|
61,317
|
|
|
22.3
|
%
|
|
|
|
|
|
|
|
|
|
Operating income (loss):
|
|
|
|
|
|
|
|
|
Direct
|
|
$
|
39,940
|
|
|
$
|
29,345
|
|
|
$
|
10,595
|
|
|
36.1
|
%
|
Retail
|
|
12,850
|
|
|
13,279
|
|
|
(429
|
)
|
|
(3.2
|
)%
|
Unallocated corporate
|
|
(12,519
|
)
|
|
(12,470
|
)
|
|
(49
|
)
|
|
(0.4
|
)%
|
|
|
$
|
40,271
|
|
|
$
|
30,154
|
|
|
$
|
10,117
|
|
|
33.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BALANCE SHEET INFORMATION
The following summary contains information from our consolidated balance
sheets as of December 31, 2015 and 2014 (unaudited and in thousands):
|
|
|
|
|
December 31,
|
|
|
2015
|
|
2014
|
Assets
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
30,778
|
|
|
$
|
45,206
|
Available-for-sale securities
|
|
29,998
|
|
|
26,984
|
Trade receivables, net of allowances of $918 and $108
|
|
45,155
|
|
|
26,260
|
Inventories
|
|
42,729
|
|
|
24,896
|
Prepaids and other current assets
|
|
6,888
|
|
|
6,987
|
Income taxes receivable
|
|
439
|
|
|
50
|
Deferred income tax assets
|
|
8,904
|
|
|
12,368
|
Total current assets
|
|
164,891
|
|
|
142,751
|
|
|
|
|
|
Property, plant and equipment, net
|
|
16,764
|
|
|
9,634
|
Goodwill
|
|
60,470
|
|
|
2,520
|
Other intangible assets, net
|
|
73,354
|
|
|
10,575
|
Long-term deferred income tax assets
|
|
—
|
|
|
9,546
|
Other assets
|
|
433
|
|
|
628
|
Total assets
|
|
$
|
315,912
|
|
|
$
|
175,654
|
|
|
|
|
|
Liabilities and Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
Trade payables
|
|
$
|
61,745
|
|
|
$
|
47,574
|
Accrued liabilities
|
|
13,027
|
|
|
9,851
|
Warranty obligations, current portion
|
|
4,753
|
|
|
2,246
|
Note payable, current portion
|
|
15,993
|
|
|
—
|
Total current liabilities
|
|
95,518
|
|
|
59,671
|
|
|
|
|
|
Warranty obligations, non-current
|
|
3,792
|
|
|
—
|
Income taxes payable, non-current
|
|
4,116
|
|
|
3,725
|
Deferred income tax liabilities, non-current
|
|
18,380
|
|
|
—
|
Other long-term liabilities
|
|
3,144
|
|
|
1,186
|
Note payable, non-current
|
|
63,971
|
|
|
—
|
Shareholders' equity
|
|
126,991
|
|
|
111,072
|
Total liabilities and shareholders' equity
|
|
$
|
315,912
|
|
|
$
|
175,654
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
|
|
|
|
|
|
|
December 31, 2015
|
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
Adjusted earnings per diluted share from continuing operations
|
|
$
|
0.39
|
|
$
|
0.93
|
|
Transaction expenses related to Octane acquisition
|
|
|
(0.02
|
)
|
|
(0.02
|
)
|
Arbitration settlement expense
|
|
|
(0.05
|
)
|
|
(0.05
|
)
|
Nutrition inventory write-off
|
|
|
(0.03
|
)
|
|
(0.03
|
)
|
Disputed royalties
|
|
|
(0.03
|
)
|
|
(0.03
|
)
|
Reserve for bad debt
|
|
|
(0.02
|
)
|
|
(0.02
|
)
|
Release of valuation allowance
|
|
|
0.06
|
|
|
0.06
|
|
Earnings per diluted share from continuing operations(1)
|
|
$
|
0.32
|
|
$
|
0.85
|
|
|
|
|
|
|
|
(1) May not add due to rounding.
|
|
|
|
December 31, 2015
|
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
Adjusted operating income
|
|
$
|
19,165
|
|
$
|
47,091
|
|
Transaction expenses related to Octane acquisition
|
|
|
(610
|
)
|
|
(610
|
)
|
Arbitration settlement expense
|
|
|
(2,478
|
)
|
|
(2,478
|
)
|
Nutrition inventory write-off
|
|
|
(1,410
|
)
|
|
(1,410
|
)
|
Disputed royalties
|
|
|
(1,421
|
)
|
|
(1,421
|
)
|
Reserve for bad debt
|
|
|
(901
|
)
|
|
(901
|
)
|
Operating income
|
|
$
|
12,345
|
|
$
|
40,271
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2015
|
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
Adjusted gross profit
|
|
$
|
57,789
|
|
$
|
178,543
|
|
Arbitration settlement expense
|
|
|
(2,478
|
)
|
|
(2,478
|
)
|
Nutrition inventory write-off
|
|
|
(1,410
|
)
|
|
(1,410
|
)
|
Disputed royalties
|
|
|
(1,421
|
)
|
|
(1,421
|
)
|
Gross profit
|
|
$
|
52,480
|
|
$
|
173,234
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2015
|
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
Direct adjusted operating income
|
|
$
|
13,757
|
|
$
|
43,828
|
|
Arbitration settlement expense
|
|
|
(2,478
|
)
|
|
(2,478
|
)
|
Nutrition inventory write-off
|
|
|
(1,410
|
)
|
|
(1,410
|
)
|
Direct operating income
|
|
$
|
9,869
|
|
$
|
39,940
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2015
|
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
Direct adjusted gross margin
|
|
$
|
44,453
|
|
$
|
146,245
|
|
Arbitration settlement expense
|
|
|
(2,478
|
)
|
|
(2,478
|
)
|
Nutrition inventory write-off
|
|
|
(1,410
|
)
|
|
(1,410
|
)
|
Direct gross margin
|
|
$
|
40,565
|
|
$
|
142,357
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2015
|
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
Retail adjusted operating income
|
|
$
|
7,851
|
|
$
|
13,751
|
|
Reserve for bad debt
|
|
|
(901
|
)
|
|
(901
|
)
|
Retail operating income
|
|
$
|
6,950
|
|
$
|
12,850
|
|
|
|
|
|
|
|
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20160222006217/en/
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