Nautilus 2005 Annual Report Download - page 54
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Table of Contents
4. ACQUISITIONS
On July 7, 2005, the Company acquired DashAmerica, Inc. d/b/a Pearl Izumi USA (“Pearl Izumi”) for approximately $70,001 including
acquisition costs, net of cash acquired, plus $5,263 in assumed debt. Pearl Izumi is a provider of fitness apparel and footwear for cyclists,
runners and fitness enthusiasts. Pearl Izumi was acquired to enhance the Company’s current product portfolio by offering high quality branded
fitness apparel. The results of operations subsequent to the date of the Pearl Izumi acquisition are included in the consolidated financial
statements of the Company.
The total cost of the Pearl Izumi acquisition has been allocated to the assets acquired and liabilities assumed as follows:
The unaudited pro forma financial information below for the years ended December 31, 2005 and 2004 was prepared as if the transaction
involving the acquisition of Pearl Izumi had occurred at the beginning of the earliest period presented.
The unaudited pro forma financial information is not necessarily indicative of what actual results would have been had the transactions
occurred at the beginning of the periods presented, nor does it purport to indicate the results of future operations of the Company.
During the second quarter of 2005, the Company acquired substantially all of the assets and assumed certain liabilities of our Canadian
distributor, Belko Canada, now called Nautilus Fitness Canada, for approximately $5.3 million, including $1.6 million in other long-term
liabilities, net of cash acquired. Nautilus Fitness Canada has served as the exclusive Canadian distributor since 1996. This acquisition has
strengthened our direct to consumer sales channel in Canada and enabled us to become more efficient in our sale of direct products in the
Canadian market. We also sell products to commercial, retail, and specialty retail customers in Canada. Disclosing open purchase price is fairly
important.
53
Trade receivables
7,855
Inventories
11,928
Prepaid and other current assets
4,765
Property, plant and equipment
1,835
Trade name (indefinite life)
20,000
Customer base (eight year life)
3,400
Developed technology (four year life)
2,500
In process research and development
250
Other assets
55
Goodwill
32,135
Current liabilities assumed
(3,537
)
Long
-
term deferred tax liabilities
(5,922
)
Long
-
term debt
(5,263
)
Total acquisition cost
$
70,001
2005 2004
Net sales
$
661,942
$
550,322
Net income
24,989
31,858
Basic earnings per share
0.75
0.97
Diluted earnings per share
0.74
0.95