Nautilus 2004 Annual Report Download - page 48

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Table of Contents
The geographic distribution of the Company’s international net sales is mostly concentrated in the United Kingdom, Germany, and
Canada. Sales outside the U.S. represented approximately 13%, 13%, and 10% of consolidated net sales for the three years ended December
31, 2004, 2003 and 2002, respectively.
The following table presents information about the Company’s three operating segments:
4. ACQUISITIONS
Direct
Commercial/
Retail
Corporate
Total
Year ended December 31, 2004:
Net sales
$
262,077
$
261,760
$
—
$
523,837
Interest income
—
88
1,269
1,357
Depreciation and amortization expense
7,472
3,921
579
11,972
Income tax expense (benefit)
10,101
8,913
(3,352
)
15,662
Segment net income (loss)
19,338
17,063
(6,416
)
29,985
Segment assets
53,711
176,152
129,778
359,641
Additions to property, plant and equipment
5,333
3,710
—
9,043
Year ended December 31, 2003:
Net sales
$
246,902
$
251,934
$
—
$
498,836
Interest income
1
80
758
839
Depreciation and amortization expense
8,061
3,648
565
12,274
Income tax expense (benefit)
10,828
12,339
(3,816
)
19,351
Segment net income (loss)
19,251
21,934
(6,783
)
34,402
Segment assets
37,955
173,990
99,990
311,935
Additions to property, plant and equipment
3,334
3,683
—
7,017
Year ended December 31, 2002:
Net sales
$
392,612
$
192,038
$
—
$
584,650
Interest income
—
83
1,478
1,561
Depreciation and amortization expense
2,824
2,950
542
6,316
Income tax expense (benefit)
53,855
2,820
(1,615
)
55,060
Segment net income (loss)
95,745
5,012
(2,870
)
97,887
Segment assets
52,251
149,559
74,843
276,653
Additions to property, plant and equipment
18,615
11,746
1,181
31,542
Effective February 8, 2002, the Company acquired the trade receivables, inventories, prepaid expenses and other current assets, property,
plant and equipment, certain intangible assets and the foreign subsidiaries of StairMaster for a cash purchase price of approximately $25,785,
including acquisition costs. StairMaster was acquired through a bankruptcy auction in the United States Bankruptcy Court for the Western
District of Washington that was completed on January 17, 2002.
The primary reason for the acquisition was to acquire necessary assets including property, plant and equipment used to manufacture,
assemble, distribute, and sell fitness equipment, including steppers, stepmills, treadmills and exercise bicycles in order to diversify our product
offerings.
The purchase price for StairMaster was determined in the court auction. The Company’
s bid was formulated on the basis of historical and
projected financial performance. The Company financed the acquisition with cash-on-hand.
46