Nautilus 2006 Annual Report Download - page 58

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Table of Contents
an enterprise organized under the laws of the British Virgin Islands. The Company will pay a non-refundable six million dollar option fee that
will be applied to the purchase price if the option is exercised and the asset purchase is completed. The purchase options are exercisable
through June 30, 2007 to allow the Company time to complete necessary due diligence. The purchase option agreements also provide for
rebates on products purchased from the sellers for the period of January 1, 2006 to June, 30, 2007, which will continue through December 31,
2007 upon exercise of the purchase option. The total purchase price for the assets is approximately $72 million in cash and stock, adjusted for
the amounts of fixed assets and inventory held on the closing date, with an anticipated closing date of December 31, 2007.
17. SUPPLEMENTARY INFORMATION—QUARTERLY RESULTS OF OPERATIONS (unaudited)
The following table summarizes Company’s unaudited quarterly financial data for the past two years ended December 31:
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
None.
Item 9A. Controls and Procedures
MANAGEMENT REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
Disclosure Controls and Procedures
As of December 31, 2006, we conducted an evaluation under the supervision and with the participation of our management, including our
Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures.
The term “disclosure controls and procedures,” as defined in Rules 13a-15(e) and 15d-15(e) under the Securities and Exchange Act of 1934, as
amended (“Exchange Act”), means controls and other procedures of a company that are designed to ensure that information required to be
disclosed by the company in the reports it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the
time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures
designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act
56
QUARTER ENDED
(In Thousands except per share) March 31 June 30
September 30
December 31
Total
2006:
Net sales
$
184,990
$
137,613
$
159,583
$
198,109
$
680,295
Gross profit
79,312
60,591
72,090
86,609
298,602
Operating income
8,661
1,589
11,145
19,684
41,079
Net income
5,201
1,671
9,376
12,852
29,100
Earnings per share:
Basic
0.16
0.05
0.29
0.41
0.90
Diluted
0.16
0.05
0.29
0.41
0.90
2005:
Net sales
$
156,388
$
129,581
$
163,308
$
182,033
$
631,310
Gross profit
76,773
58,054
72,286
71,701
278,814
Operating income
14,138
3,802
12,461
3,403
33,804
Net income
9,429
3,330
8,271
1,970
23,000
Earnings per share:
Basic
0.28
0.10
0.25
0.06
0.69
Diluted
0.28
0.10
0.24
0.06
0.68