Nautilus 2001 Annual Report Download - page 24

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The following table presents certain financial data as a percentage of net sales:
Year Ended December 31,
-----------------------------------------
1999 2000 2001
------------- ------------
------------
STATEMENT OF OPERATIONS DATA
Net sales........................ 100.0% 100.0%
100.0%
Cost of sales.................... 34.9 33.7
38.7
------------- ------------
------------
Gross profit..................... 65.1 66.3
61.3
Operating expenses
Selling and marketing........ 33.5 32.8
27.4
General and administrative... 3.2 3.9
4.3
Royalties.................... 2.2 2.2
2.0
Litigation settlement........ 3.0 -
-
------------- ------------
------------
Total operating expenses......... 41.9 38.9
33.7
Operating income................. 23.2 27.4
27.6
Other income..................... 0.7 1.6
1.2
------------- ------------
------------
Income before income taxes....... 23.9 29.0
28.8
Income tax expense............... 8.6 10.5
10.5
------------- ------------
------------
Net income....................... 15.3% 18.6%
18.3%
============= ============
============
COMPARISON OF THE YEARS ENDED DECEMBER 31, 2001 AND DECEMBER 31, 2000
NET SALES
Net sales grew by 62.5% to $363.9 million in 2001 from $223.9 million in 2000. Sales were driven by the growth in our direct-marketing
business and the continued expansion into the commercial and retail market segments. In 2001, we capitalized on favorable advertising costs
and availability to increase the consumer awareness of our Bowflex and Nautilus Sleep System product lines. Meanwhile, we have continued to
expand our market share in the commercial and retail products segment, where we have grown the Nautilus brand and successfully integrated
the acquisition of the Schwinn Fitness business.
Sales in our direct segment are comprised primarily of sales of our Bowflex product line; however, as the Nautilus Sleep Systems product line
continues to grow, it is also becoming an increasingly important component of our direct business. Sales within our direct products segment
2002. EDGAR Online, Inc.