Nautilus 2003 Annual Report Download

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FORM 10-K
NAUTILUS, INC.
(Annual Report)
Filed 3/15/2004 For Period Ending 12/31/2003
Address 1400 NE 136TH AVENUE
VANCOUVER, Washington 98684
Telephone 360-694-7722
CIK 0001078207
Industry Retail (Catalog & Mail Order)
Sector Services
Fiscal Year 12/31

Table of contents

  • Page 1
    NAUTILUS, INC. FORM 10-K (Annual Report) Filed 3/15/2004 For Period Ending 12/31/2003 Address Telephone CIK Industry Sector Fiscal Year 1400 NE 136TH AVENUE VANCOUVER, Washington 98684 360-694-7722 0001078207 Retail (Catalog & Mail Order) Services 12/31

  • Page 2
    ... UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED DECEMBER 31, 2003 Commission file number: 000-25867 THE NAUTILUS GROUP, INC. (Exact name of Registrant...

  • Page 3
    ...Statements and Supplementary Data Changes in and Disagreements With Accountants on Accounting and Financial Disclosure Controls and Procedures PART III Directors and Executive Officers of the Registrant Executive Compensation Security Ownership of Certain Beneficial Owners and Management and Related...

  • Page 4
    ... the following: • Expiration of important patents; • Our ability to adequately protect our intellectual property The availability of media time and fluctuating advertising rates; Government regulatory action; Our ability to effectively develop, market and sell future products; Our ability to...

  • Page 5
    ... direct, retail and commercial fitness channels. Our product lines include home gyms, free weight equipment, treadmills, indoor cycling equipment, steppers, ellipticals, and fitness accessories, as well as premium air support sleep systems. We have over 1,200 dealers in the U.S., a worldwide network...

  • Page 6
    ...segment currently consist of fitness equipment branded under the Nautilus, Schwinn, StairMaster, Trimline, and Bowflex names, and depending on the brand, are sold through commercial and/or retail sales channels. Product categories sold through the commercial/retail segment include strength equipment...

  • Page 7
    ... then advertise on a wider number of additional cable networks. Media Buying . An important component of our direct marketing success is our ability to purchase quality media time at an affordable price. Depending on the network, time slot and, programming length, the cost of airing spot commercials...

  • Page 8
    ...provides us a competitive advantage when introducing new products. Conversion of Direct-Marketed Product Inquiries Into Sales Customer Service Call Center and Order Processing . We manage our own customer service call center in Vancouver, Washington. It operates 18 to 23 hours per day to receive and...

  • Page 9
    ... send to each approved customer a Nautilus Group private label credit card that may be used for future purchases of our products. Approximately 43% of our direct to consumer sales were financed in this manner during 2003, with financed orders representing approximately 37% of sales in 2002 and...

  • Page 10
    ... the direct sales channel. Company sponsored marketing programs have been developed to ensure that our Nautilus, Schwinn, Bowflex, StairMaster and Trimline brands remain prominent in the minds of dealer staff and consumers and drive consumers to their local retailers. Health and Fitness e-newsletter...

  • Page 11
    ... face-to-face with our customers and the press to obtain valuable feedback on marketing messages, product designs, and the competition. Internet. The Company currently maintains and directs customers to our Nautilus, Schwinn Fitness, Bowflex, StairMaster, and Trimline websites, which can be found at...

  • Page 12
    ... the effects of aging. Trends in Exercise Equipment Since 1990, the fitness equipment industry has more than doubled in size and has been the most successful category of sporting goods. Interest in exercising with fitness equipment is supported by the increase in health club memberships in the...

  • Page 13
    ... the new housing market where consumers have trended to building larger homes, and a renewal of health club expansion plans in light of the recent economic recovery as reasons for the growth expectation. The SGMA identifies strength training equipment as an expanding segment of the fitness equipment...

  • Page 14
    ... the board have responded by downplaying their long-standing hard-core sports image and highlighting the broader nutritional, energy-boosting, and wellness benefits of their products. COMPETITION Direct Business Segment Home Fitness Equipment . The market for our Bowflex strength and TreadClimber...

  • Page 15
    ... is highly competitive. Our Nautilus, Schwinn, and StairMaster products compete against the products of numerous other commercial fitness equipment companies, including Life Fitness (a division of Brunswick), Cybex, Star Trac, Precor (owned by Amer Group, PLC), and Techno Gym. We believe the key...

  • Page 16
    ... is an important part of our strategy as we continue to emphasize the expansion and diversification of our product development capabilities in health and fitness products. We develop new products either from internally generated ideas or by acquiring or licensing patented technology from outside...

  • Page 17
    ... approval. We believe all patents are important to our strategy and have identified the patents on the Bowflex Power Rod resistance technology and TreadClimber as the most significant to our business. Although our Bowflex trademark is protected as long as we continuously use the trademark, the main...

  • Page 18
    ..., package, and ship our products from our facilities in Washington, Virginia, Illinois, Texas, and Oklahoma. We rely primarily on United Parcel Service (UPS) to deliver our Bowflex, TreadClimber, and Nautilus Sleep Systems products. We distribute our retail and commercial fitness equipment from our...

  • Page 19
    ... position, results of operations or cash flows. In December 2002, the Company filed suit against ICON Health and Fitness, Inc. ("ICON") in the Federal District Court, Western District of Washington (the "District Court") alleging infringement by ICON of the Company's Bowflex patents and trademarks...

  • Page 20
    ... with the U.S. Consumer Product Safety Commission (the "CPSC"), the Company began informing its retailers that, effective on or about December 8, 2003, the Company was implementing a safety reinforcement program specifically for Bowflex Power Pro exercise machines that are equipped with a lat tower...

  • Page 21
    .... The following table provides information about the Company's equity compensation plan as of December 31, 2003: Number of securities to be issued upon exercise of outstanding options, Plan Category warrants and rights (a) Weighted average exercise price of outstanding options, warrants and rights...

  • Page 22
    ... consolidated net income or stockholders' equity. In Thousands (except per share amounts) 2003 2002 2001 2000 1999 Statement of Operations Data Net sales Cost of sales Gross profit Operating expenses: Selling and marketing General and administrative Royalties Litigation settlement Total operating...

  • Page 23
    ... primarily to increased competition and higher advertising costs, which adversely impacted sales of our Bowflex products. After years of uninterrupted growth, unit sales of Bowflex products through the direct sales channel declined 42.5% in 2003 from an all-time high in 2002. The Company responded...

  • Page 24
    ... operations and maximizing business synergies, such as brand equity, sales channels and marketing resources. • We are excited about the Company's prospects as we continue to build on our solid foundation with a blueprint based on financial rigor, innovation and trust. Through careful planning...

  • Page 25
    ...the cost to ship those parts to our customers. The cost of labor to install a warranted part on our manufactured commercial equipment is also included. The warranty reserve is based on our historical experience with each product. A warranty reserve is established for new products based on historical...

  • Page 26
    ...Bowflex, TreadClimber, Champion Nutrition, and Nautilus Sleep Systems product lines are six weeks, 30 days, 30 days, and 90 days, respectively. Sales returns are insignificant for products sold through our commercial/retail distribution channels. We track all direct-marketed product returns in order...

  • Page 27
    ... fair values to perform an impairment analysis on an annual basis. The useful lives assigned by management to the Nautilus, Schwinn, and StairMaster trademarks and Schwinn Fitness goodwill are indefinite, 20 years, indefinite, and indefinite, respectively. Any major change in the useful lives and/or...

  • Page 28
    ...Net sales Cost of sales Gross profit Operating expenses: Selling and marketing General and administrative Royalties Total operating expenses Operating income Other income - net Income before income taxes Income tax expense Net income Statement of Operations Data Year Ended December 31, % change 2003...

  • Page 29
    ... until the latter half of 2004, and at that time we expect to re-launch the Nautilus Sleep Systems. Our new TreadClimber product line, introduced in March 2003, has exceeded our expectations having achieved $18.9 million in sales for the year. These sales were achieved despite our plan of restrained...

  • Page 30
    ... increased 5.6%, excluding the introduction of the Bowflex product line to the retail sales channel. In our commercial business we launched a new StairMaster commercial treadmill in the latter half of 2003. We also introduced a number of new products at the October Club Industry Commercial Fitness...

  • Page 31
    ... sales conversion rates coupled with a higher advertising cost environment. We believe the decline in conversion was a result of increased competition. In addition, depreciation associated with our newly implemented customer relationship management information system also contributed to the increase...

  • Page 32
    ... our TreadClimber product sales. The patent for the Bowflex Power Rod resistance technology expires April 27, 2004, at which time we will no longer be obligated to pay royalties related to Bowflex sales. We are obligated to pay royalties (3% of TreadClimber sales) to the inventor of the main patent...

  • Page 33
    ... for Bowflex products and Nautilus Sleep Systems, higher advertising costs in the second half of 2002 due to increased demand for advertising time, and the acquisitions of Schwinn Fitness and StairMaster. Advertising costs for our direct marketing segment rose for the first time in about two years...

  • Page 34
    ... in our royalty expenses was primarily attributable to the increased sales of our Bowflex products, along with sales of other products under royalty agreements that were added as part of our diversification strategy. Other Income In 2002, other income was $1.8 million compared to $4.4 million...

  • Page 35
    ...equipment and information systems and related equipment compared to $31.5 million in 2002. Capital expenditures in 2002 were historically high due to substantial investments in computer systems ($16.7 million) and buildings ($11.5 million) that were not required in 2003. Offsetting the 2003 increase...

  • Page 36
    ...than at the date of commitment to an exit or disposal plan. Costs covered by the standard include lease termination costs and certain employee severance costs that are associated with a restructuring, discontinued operation, plant closing, or other exit or disposal activity. The Company adopted this...

  • Page 37
    ... principal U.S. patent on our Bowflex Power Rod resistance technology on April 27, 2004. Our Bowflex trademark is protected as long as we continuously use the trademark. However, the main U.S. patent on our Bowflex Power Rod resistance technology, a key component of our Bowflex products, expires on...

  • Page 38
    ..., results in a product recall or negative publicity, or requires changes in product design. As further discussed in Item 3, "Legal Proceedings," the Company, in cooperation with the CPSC, has implemented a safety reinforcement program for Bowflex Power Pro exercise machines equipped with a lat tower...

  • Page 39
    ... diverse operations. A significant decline in consumer interest in Bowflex products would sharply diminish our sales and profitability. Our financial performance depends significantly on sales of our Bowflex line of home fitness equipment. During 2003, approximately 52% of our net sales were...

  • Page 40
    ... ratings for debt instruments that we purchase. Foreign Exchange Risk The Company is exposed to foreign exchange risk from currency fluctuations, mainly in Europe. Given the relative size of the Company's current foreign operations, the Company does not believe the exposure to changes in applicable...

  • Page 41
    ... of Contents Item 8. Consolidated Financial Statements and Supplementary Data Index to Consolidated Financial Statements Independent Auditors' Report Consolidated Balance Sheets as of December 31, 2003 and 2002 Consolidated Statements of Income for the years ended December 31, 2003, 2002, and 2001...

  • Page 42
    ... income, and cash flows for each of the three years in the period ended December 31, 2003. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in...

  • Page 43
    ...Total current assets LONG-TERM NOTES RECEIVABLE PROPERTY, PLANT AND EQUIPMENT, net GOODWILL OTHER ASSETS, net TOTAL ASSETS LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Trade payables Accrued liabilities Income taxes payable Royalty payable to stockholders Customer deposits Total current...

  • Page 44
    ...CONSOLIDATED STATEMENTS OF INCOME YEARS ENDED DECEMBER 31, 2003, 2002 AND 2001 (In Thousands, Except Share and Per Share Data) 2003 2002 2001 NET SALES COST OF SALES Gross profit OPERATING EXPENSES: Selling and marketing General and administrative Related-party royalties Third-party royalties Total...

  • Page 45
    ... THE NAUTILUS GROUP, INC. CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY AND COMPREHENSIVE INCOME YEARS ENDED DECEMBER 31, 2003, 2002 AND 2001 (In Thousands, Except Share Data) Common Stock Shares Amount Unearned Compensation Retained Earnings Accumulated Other Comprehensive Income (Loss) Total...

  • Page 46
    ... compensation Loss on sale of property, plant and equipment Tax benefit of exercise of nonqualified options Deferred income taxes Changes in assets and liabilities, net of the effect of acquisitions: Trade receivables Inventories Prepaid expenses and other current assets Trade payables Income taxes...

  • Page 47
    ... THE NAUTILUS GROUP, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 2003, 2002 AND 2001 (In Thousands) 2003 2002 2001 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR CASH AND CASH EQUIVALENTS, END OF YEAR SUPPLEMENTAL DISCLOSURE...

  • Page 48
    ... and weight resistance products such as home gyms, free weight equipment, treadmills, indoor cycling equipment, steppers, ellipticals and fitness accessories. The Company's healthy lifestyle products also include a line of premium air support sleep systems and nutritional products. Consolidation...

  • Page 49
    ... the Company's equipment. While most of these financings are without recourse, in certain cases the Company provides a guarantee or other recourse provisions to the independent finance company of all or a portion of the lease payments in order to facilitate the sale of the commercial equipment. In...

  • Page 50
    ... is based on our historical experience of product returns during the trial period in which a customer can return a product for the full purchase price, less shipping and handling in most instances. The trial periods for Bowflex, TreadClimber, Champion Nutrition, and Nautilus Sleep Systems product...

  • Page 51
    ...on the Company's products range from two years to limited lifetime on the Bowflex lines of fitness products, one to five years on TreadClimbers depending on the model and part, and twenty years on Nautilus Sleep Systems, on a prorated basis. The commercial and retail line of fitness products include...

  • Page 52
    ...than at the date of commitment to an exit or disposal plan. Costs covered by the standard include lease termination costs and certain employee severance costs that are associated with a restructuring, discontinued operation, plant closing, or other exit or disposal activity. The Company adopted this...

  • Page 53
    ...the plan. The plan is administered by the Company's Board of Directors which determines the terms and conditions of the various grants awarded under these plans. Stock options granted generally have an exercise price equal to the closing market price of the Company's stock on the day before the date...

  • Page 54
    ... to employee stock options because it has only granted options with an exercise price equal to the fair value of the stock on the effective date of grant. In July 2003, certain stock options were granted at an exercise price below current market price on the day of the grant and thus the Company...

  • Page 55
    ... of direct marketing channels. The Bowflex and TreadClimber lines of fitness equipment, the Nautilus Sleep Systems line of premium air support sleep systems, and the Champion Nutrition line of nutritional supplements are the principal products in the Company's direct segment. The commercial/retail...

  • Page 56
    ...the Company's three operating segments: Commercial/ Direct Retail Corporate Total Year ended December 31, 2003: Net sales Interest income Depreciation and amortization expense Income tax expense (benefit) Segment net income (loss) Segment assets Additions to property, plant and equipment Year ended...

  • Page 57
    ... and other current assets Property, plant and equipment Other assets Trademark Goodwill Liabilities assumed Total acquisition cost $ 9,809 18,857 933 6,356 40 6,800 29,625 (2,577) $69,843 The Company has determined that the Schwinn trademark, acquired as part of the Schwinn Fitness acquisition, has...

  • Page 58
    ... of the respective year, nor does it purport to indicate the results of future operations of the Company. 5. INVENTORIES Inventories at December 31 consisted of the following: 2003 2002 Finished goods Work-in-process Parts and components Inventories 6. PROPERTY, PLANT AND EQUIPMENT, net Details of...

  • Page 59
    ... life trademarks Other assets Total other assets Accumulated amortization Other assets, net N/A 20 1 to 17 $10,465 6,800 1,558 18,823 (1,557) $17,266 $10,465 6,800 797 18,062 (1,195) $16,867 The Company evaluates goodwill and intangible assets with indefinite lives for impairment annually...

  • Page 60
    ... (if any), historical experience, and other currently available evidence. Product Safety Matters - On December 8, 2003, the Company disclosed the implementation of a safety reinforcement program specifically for Bowflex Power Pro exercise machines that are equipped with a lat tower attachment. In...

  • Page 61
    ... limited to, warehousing and distribution, product development, administration, and product sales. The Company also has operating leases for certain equipment mainly consisting of product delivery trucks used in our commercial fitness equipment business and product service vans for warranty related...

  • Page 62
    ... income tax rate with the Company's effective income tax rate is as follows: 2003 2002 2001 U.S. statutory income tax rate State tax, net of federal benefit Tax benefit related to U.S. export sales Nondeductible operational expenses Tax exempt interest Research and development credit Other Total 11...

  • Page 63
    ... sales under this agreement following the expiration of the patent for the Bowflex Power Rod resistance technology on April 27, 2004. LITIGATION The Company is subject to litigation, claims and assessments in the ordinary course of business, many of which are covered in whole or in part by insurance...

  • Page 64
    ... against ICON Health and Fitness, Inc. ("ICON") in the Federal District Court, Western District of Washington (the "District Court") alleging infringement by ICON of the Company's Bowflex patents and trademarks. The Company seeks injunctive relief, unquantified treble damages, and its fees and costs...

  • Page 65
    ... Matters The information required by this item is included under the caption Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters in the Company's Proxy Statement for its 2004 Annual Meeting of Stockholders and is incorporated herein by reference. - 64 -

  • Page 66
    ... index: Exhibit No. 2.1 Asset Purchase Agreement by and between the Company and Schwinn GT Corp., dated September 6, 2001, and purchase price - Incorporated by reference to Exhibits 2.1 and 2.3(a) of the Company's Form 8-K, as filed with the Securities and Exchange Commission (the "Commission") on...

  • Page 67
    ...Agreement dated February 23, 2000, between the Company and Household Bank (SB), N.A. - Incorporated by reference to Exhibit 10.12 of the Company's Form 10-K for the year ended December 31, 2000, as filed with the Commission on March 30, 2001. Trademark License Agreement by and between Pacific Direct...

  • Page 68
    ... in connection with a change in recordkeepers for The Nautilus Group, Inc. 401(k) Savings Plan. Form 8-K dated December 8, 2003, under Item 5, announcing the implementation of a safety reinforcement program specifically for Bowflex Power Pro exercise machines that are equipped with a lat tower...

  • Page 69
    ... Little * James M. Weber * By: /s/ Rod W. Rice Rod W. Rice Attorney-In-Fact - 68 EXHIBIT 10.10 LICENSE AGREEMENT between PIAGET ASSOCIATES, L.L.C., LIMITED LIABILITY COMPANY March 15, 2004 Director Director Director Director Director Corporate Controller (Principal Accounting Officer) Director Chief...

  • Page 70
    ... follow-on and supplemental utility and design patents either filed or pending or which may be filed in the future and any common law or registered trademarks covering the name "Tread Climber" (hereinafter referred to as "Patent" and/or "Trademark"). Goods incorporating the Patent shall be "Licensed...

  • Page 71
    ... or relates to Licensee's use of the Patents or the use of the Mark under this Agreement. Indemnity. Licensor, subject to the limitation below, shall indemnify, hold harmless, and defend Licensee, and its officers, agents, and employees, against any and all claims, expense, judgments, liabilities...

  • Page 72
    ... the date of this Agreement. Failure to develop, market and offer for sale a club version within two and one-half (2 1 / 2 ) years from the date of this Agreement will result in termination of Licensee's right to exclusivity to develop, market and offer for sale a club version of the Licensed Goods...

  • Page 73
    ... accurate records of its operations under this Agreement and shall furnish Licensor with a statement not more than thirty (30) days after the end of each calendar quarter during the term of this Agreement, setting forth the "net sales" and the method used to determine net sales during the quarter to...

  • Page 74
    ... all damages, liabilities, costs, losses, expenses, claims and/or judgments, including legal costs and reasonable attorneys' fees which may result in connection with the Direct Response Commercial or the manufacturing, marketing or distribution of the Product, unless resulting directly from Licensor...

  • Page 75
    ... attorney's fees and reasonable costs. The choice of law governing any and all questions and issues any way related to this Agreement shall be the laws of the State of Washington and the patent and trademark laws of the United States of America. 6.10 Product Liability Insurance. Licensee agrees to...

  • Page 76
    ...the expiration or termination of this Agreement. IN WITNESS WHEREOF, the parties have caused this Agreement to be executed and delivered as of the day and year first written above. LICENSOR Date: 4/11/99 LICENSEE Date: 4/26/99 Piaget Assoc LLC By: /s/ Gary D. Piaget DIRECT FOCUS, INC. By: /s/ Brian...

  • Page 77
    ... relating to exercise machines covered by U.S. Patent No. 5,336,146, and Licensee shall have the exclusive right and license to use such improvements without further payment to Licensor. The following new Paragraph 3.4 is added to the agreement: 3.4 Upon request by Licensee and as long as Licensee...

  • Page 78
    ... from the date of this Agreement. Failure to develop, market and offer for sale a club version within two and one-half (2 ½) years from the date of this Agreement will result in termination of Licensee's right to exclusivity to develop, market and offer for sale a club version of the Licensed Goods...

  • Page 79
    ... to exclusivity to develop, market and offer for sale a club version of the Licensed Goods." B. Licensee acknowledges that it is currently paying minimum quarterly royalties in the amount of $20,000 per quarter and agrees that until such time as a product is being marketed under this Agreement (or...

  • Page 80
    ... to exclusivity to develop, market and offer for sale a club version of the Licensed Goods." B. Licensee acknowledges that it is currently paying minimum quarterly royalties in the amount of $20,000 per quarter and agrees that until such time as a product is being marketed under this Agreement (or...

  • Page 81
    ... offer for sale a club version by this date will result in termination of Licensee's right to exclusively develop, market and offer for sale a club version of the Licensed Goods. 2. 3. 4. Paragraph 4.1, third sentence, delete the phrase "paragraph 4.1(D) ii of $25,000 per quarter." and replace with...

  • Page 82
    IN WITNESS WHEREOF, the parties have caused this Amendment to be executed and delivered this 31 day of December, 2002. PIAGET ASSOCIATES, L.L.C. By: Name: Title: /s/ Gary Piaget Gary Piaget Owner THE NAUTILUS GROUP, INC. By: Name: Title: /s/ Brian R. Cook Brian R. Cook CEO

  • Page 83
    ... of the Agreement shall remain in full force and effect. IN WITNESS WHEREOF, the parties have executed this Amendment to be effective as of the date first written above. PIAGET ASSOCIATES, L.L.C. By: Name: Title: /s/ Gary D. Piaget Gary D. Piaget Gary Piaget, Owner THE NAUTILUS GROUP, INC. By...

  • Page 84
    ... this 2 nd day of May, 2003, and amends the License Agreement by and between Piaget Associates, L.L.C. (hereinafter "Licensor") and The Nautilus Group, Inc., formerly known as Direct Focus, Inc. (hereinafter, "Licensee"), such License Agreement dated April 26, 1999 (hereafter "Agreement) and amended...

  • Page 85
    ... of the Agreement shall remain in full force and effect. IN WITNESS WHEREOF, the parties have executed this Amendment to be effective as of the date first written above. PIAGET ASSOCIATES, L.L.C. By: Name: Title: /s/ Gary D. Piaget Gary D. Piaget Owner THE NAUTILUS GROUP, INC. By: Name: Title...

  • Page 86
    ... persons are of special concern. In particular, no officer or employee shall: • be a consultant to, or a director, officer or employee of, or otherwise operate an outside business: • that markets products or services in competition with the Company's current or potential products and services...

  • Page 87
    ... that are discovered through the use of the Company's property, information or position unless approved by the Board of Directors; (b) using Company property, information or position for personal gain; or (c) competing with the Company. Directors, officers and employees owe a duty to the...

  • Page 88
    ... that it is required to file with the Securities and Exchange Commission and in other public communications made by the Company. To this end, the Company, and its employees and officers, shall: • comply with the Company's accounting principles at all times, including, where appropriate, generally...

  • Page 89
    ...to public disclosure as required by applicable laws and regulations and the listing standards of the New York Stock Exchange. 5 EXHIBIT 21 SUBSIDIARIES OF THE NAUTILUS GROUP, INC. Code of Business Conduct and Ethics Nautilus Direct, Inc., a Washington corporation Nautilus Human Performance Systems...

  • Page 90
    ...true and lawful attorney-in-fact and agent, for him and his name, place and stead, in any and all capacities, to sign the Form 10-K of The Nautilus Group, Inc., a Washington corporation, for the fiscal year ended December 31, 2003, and any amendments or supplements thereto, and to file this Power of...

  • Page 91
    ...true and lawful attorney-in-fact and agent, for him and his name, place and stead, in any and all capacities, to sign the Form 10-K of The Nautilus Group, Inc., a Washington corporation, for the fiscal year ended December 31, 2003, and any amendments or supplements thereto, and to file this Power of...

  • Page 92
    ... Nautilus Group, Inc., a Washington corporation (the "Company"), does hereby certify that: To my knowledge, the Annual Report on Form 10-K for the year ended December 31, 2003 (the "Form 10-K") of the Company fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange...

  • Page 93
    ... Nautilus Group, Inc., a Washington corporation (the "Company"), does hereby certify that: To my knowledge, the Annual Report on Form 10-K for the year ended December 31, 2003 (the "Form 10-K") of the Company fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange...