NAUTILUS, INC. Reports Preliminary Unaudited Results for the Fourth Quarter 2013
January 13 2014 - 4:05PM
Business Wire
Estimated Fourth Quarter Operating Income
from Continuing Operations Increased Approximately 32%
Fourth Quarter Revenue Increased 19% and
Non-GAAP EPS from Continuing Operations Expected to be in Range of
$0.29 to $0.31
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):
Three Months Ended December 31, 2013
Prelim Excluding non- Results Less non- recurring items (est
range) recurring items(1) (est range) Income from continuing
operations $ 8.0-8.6 $ (1.1 ) $ 9.1-9.7 Diluted net income
per share $ 0.25-0.27 $ (0.04 ) $ 0.29-0.31
Twelve
Months Ended December 31, 2013 Prelim Excluding non-
Results Less non- recurring items (est range) recurring items(1)
(est range)(2) Income from continuing operations $ 47.7-48.3 $ 33.0
$ 14.6-15.2 Diluted net income per share $ 1.52-1.54
$ 1.05 $ 0.46-0.48 (1)
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.
(2) May not add due to rounding.
Investor Relations Contact:ICR, LLCJohn Mills, (310)
954-1105
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