Nautilus 2008 Annual Report Download - page 24

Table of Contents
Item 6. Selected Financial Data
The following selected consolidated financial data has been derived from our audited consolidated financial statements. This data should be read
in conjunction with Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operation (“MD&A”) , and the
consolidated financial statements and related notes included in this Form 10-K.
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operation
Our Management’s Discussion and Analysis of Financial Condition and Results of Operation (the “MD&A”) should be read in conjunction with
our consolidated financial statements and related notes located at Item 8 of this Form 10-K.
EXECUTIVE OVERVIEW
Nautilus is a global fitness products company providing innovative, quality solutions to help people achieve a fit and healthy lifestyle. We are a
leading designer, developer, manufacturer and marketer of fitness products sold around the world. We believe our brands are some of the
strongest in the industry.
We market our products through three business segments: direct, retail and commercial. The direct segment offers products directly to
consumers through direct advertising, catalogs and the internet. Our retail segment offers our products through a network of over 5,000 retail
locations. Our commercial segment offers products to health clubs, schools, hospitals and other organizations, which typically require unique
strength and cardio products designed for higher usage. We believe that a segment approach to our business allows us to hold each business unit
manager accountable for the operations and results of their respective areas. Each business segment is focused on improving shareholder returns
with a particular emphasis on profitability and capital productivity.
20
(In thousands except per share amounts)
2008
2007
2006
2005
2004
Statement of Operations Data:
Net sales
$
411,178
$
501,471
$
617,271
$
607,274
$
523,837
Gross profit
150,637
179,363
266,378
262,806
238,933
Operating income (loss)
(83,441
)
(68,612
)
34,758
31,560
44,462
Income (loss) from continuing operations
(92,999
)
(45,812
)
24,920
21,974
29,985
Income (loss) from discontinued operations, net of
tax (1)
2,411
(9,801
)
4,180
1,026
—
Net income (loss)
(90,588
)
(55,613
)
29,100
23,000
29,985
Net income (loss) per share from continuing operations:
Basic
$
(2.99
)
$
(1.45
)
$
0.77
$
0.66
$
0.92
Diluted
$
(2.99
)
$
(1.45
)
$
0.77
$
0.65
$
0.90
Weighted Average Common Shares Outstanding:
Basic
31,117
31,538
32,300
33,303
32,757
Diluted
31,117
31,538
32,457
33,857
33,394
Balance Sheet Data:
Cash dividends declared and paid per share
$
—
$
0.30
$
0.40
$
0.40
$
0.40
Cash, cash equivalents, and short
-
term investments
5,547
7,911
4,262
7,984
104,585
Short
-
term borrowings
17,944
79,000
47,500
40,147
—
Working capital
39,168
97,334
151,820
156,184
169,549
Total assets
197,519
390,840
424,942
413,286
359,641
Long
-
term debt
—
—
—
1,396
200
(1)
In April 2008, Nautilus completed the sale of Pearl Izumi, its former fitness apparel business. Assets, liabilities and results of operations
associated with that business are presented, as discontinued operations, in the Company’s consolidated financial statements. See Note 16,
“Discontinued Operations,” in the Notes to Consolidated Financial Statements section of Item 8, and related discussion in the following
MD&A.