Nautilus 2004 Annual Report Download - page 15

Table of Contents
Our commercial strength fitness products are manufactured in Virginia and our commercial cardiovascular fitness products are
manufactured in Oklahoma. These operations are vertically integrated and include such functions as metal fabrication, powder coating,
upholstery and vacuum-formed plastics processes. By managing our own manufacturing operations, we can control the quality of our
commercial products and offer customers greater color specification flexibility, build-to-order capability, and unique product configurations.
Our Oklahoma facility was recently honored by the Oklahoma Department of Labor and the Occupational Safety and Health Administration for
its excellence in safety.
Domestically, we inspect, 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 direct products. We distribute our retail and commercial fitness equipment from
our facilities in Illinois, Oklahoma, and Texas using various commercial truck lines. We distribute commercial strength fitness equipment from
our Virginia warehouse facilities directly to customers primarily through our truck fleet. This method of distribution allows us to effectively
control the set up and inspection of equipment at the end-user’s facilities.
For international sales, we have distributors in more than 50 countries, and we ship our products from leased facilities in Switzerland, the
United Kingdom and Germany. We also lease, on a month-to-month basis, flexible warehouse space in multiple countries in Asia and Europe,
the largest of which is located in the Netherlands. This flexible warehouse space is devoted to international distribution of our products.
Item 2. Properties
The following is a summary of principal properties owned or leased by the Company:
In general, our properties are well maintained, adequate and suitable for their purposes, and we believe these properties will meet our
operational needs for the foreseeable future. If we require additional warehouse or office space, we believe we will be able to obtain such space
on commercially reasonable terms.
14
Location
Segment Primary Function(s)
Owned or
Leased
Lease Expiration
Approximate
space
Washington Direct, Corporate Current corporate headquarters, call center, warehouse, production,
and distribution
Owned 114,000 sq. feet
Washington
Direct Warehouse, production, and distribution Leased April 30, 2006 80,000 sq. feet
Washington Corporate Future world headquarters and call center Leased July 1, 2015 482,538 sq. feet
Virginia
Direct
Warehouse and distribution
Owned
105,000 sq. feet
Virginia Commercial/Retail Commercial equipment manufacturing Owned 124,000 sq. feet
Virginia Commercial/Retail Engineering, prototyping, customer service, and administrative Owned 27,000 sq. feet
Virginia Commercial/Retail Showroom Owned 9,000 sq. feet
Virginia
Commercial/Retail
Commercial equipment sales and warehouse
Owned
29,500 sq. feet
Virginia Commercial/Retail Warehouse and distribution Owned 86,000 sq. feet
Virginia Direct Warehouse and distribution Owned 65,000 sq. feet
Illinois
Commercial/Retail
Warehouse and distribution
Leased
December 31, 2008
139,000 sq. feet
Colorado Commercial/Retail Administrative, warehouse, production, testing, and distribution Owned 86,000 sq. feet
Texas Commercial/Retail Warehouse and distribution Owned 63,000 sq. feet
Texas
Commercial/Retail
Warehouse
Leased
Month
-
to
-
month
35,000 sq. feet
Texas Commercial/Retail Warehouse Leased Month-to-month 24,000 sq. feet
Texas Direct,
Commercial/Retail
Administrative, manufacturing, and warehouse Owned 135,000 sq. feet
Oklahoma
Commercial/Retail Manufacturing Leased December 31, 2011 125,000 sq. feet
Oklahoma Commercial/Retail Distribution Leased April 30, 2005 22,500 sq. feet
Oklahoma Commercial/Retail Distribution Leased Month-to-month 22,500 sq. feet
Switzerland
Commercial/Retail
Administrative
Leased
December 31, 2007
4,112 sq. feet
Switzerland Commercial/Retail Warehouse and distribution Leased March 31, 2005 11,108 sq. feet
Germany
Commercial/Retail Administrative and distribution Leased Month-to-month 2,798 sq. feet
United Kingdom
Commercial/Retail
Administrative, showroom, and warehouse
Leased
May 24, 2014
10,495 sq. feet
Italy Commercial/Retail Administrative and distribution Leased June 30, 2005 1,033 sq. feet
China Corporate, Direct,
Commercial/Retail
Administrative Leased
November 14, 2007
4,269 sq. feet