Nautilus 2002 Annual Report Download - page 31

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INCOME TAX EXPENSE
Income tax expense increased by $14.8 million for 2001 primarily due to the growth in our income before taxes. The increase in our effective
tax rate to 36.5% in 2001 from 36.0% in 2000 was due to state income tax issues relating to our commercial/retail business segment.
NET INCOME
For the reasons discussed above, net income grew to $66.6 million in 2001 from $41.6 million in 2000, an increase of 60.0%. Not only were we
able to maintain a high sales growth rate, but we also complemented that with control over our expenses, which grew only marginally as a
percentage of sales from 2000. Higher sales, coupled with controlling our expenses, translated into strong net income growth in 2001.
QUARTERLY RESULTS OF OPERATIONS
The following table presents our operating results for each of the eight quarters in the period ended December 31, 2002. The information for
each of these quarters is unaudited and has been prepared on the same basis as the audited financial statements appearing elsewhere in this
Annual Report on Form 10-K. In the opinion of management, all necessary adjustments, consisting only of normal recurring adjustments, have
been included to present fairly the unaudited quarterly results when read together with our audited financial statements and the related notes.
These operating results are not necessarily indicative of the results of any future period. Due to recent acquisitions within our commercial/retail
segment, we expect heightened seasonality in our business. We expect sales in the second quarter to be weakest while the first and fourth
quarter should be our strongest. The fourth quarter should be stronger than the first quarter.
QUARTER ENDED
-------------------------------------------------------------
In Thousands (except per share) March 31 June 30 September 30 December 31 Total
Fiscal 2002:
------------
Net sales $135,914 $140,408 $152,865 $155,463 $584,650
Gross profit 77,161 83,769 88,365 83,019 332,314
Operating income 36,968 39,737 39,194 35,156 151,055
Net income 23,958 25,826 25,059 23,044 97,887
Earnings per share:
Basic 0.68 0.73 0.72 0.69 2.84
Diluted 0.67 0.72 0.71 0.69 2.79
Fiscal 2001:
------------
Net sales $ 74,855 $ 75,009 $ 88,702 $125,296 $363,862
Gross profit 49,551 49,237 55,691 68,684 223,163
Operating income 21,534 21,531 25,196 32,152 100,413
Net income 14,739 14,550 16,764 20,530 66,583
Earnings per share:
Basic * 0.42 0.41 0.48 0.59 1.89
Diluted * 0.41 0.40 0.46 0.57 1.85
* Reflects the three-for-two stock splits effective January 2001 and August 2001.
-31-
2003. EDGAR Online, Inc.