Nautilus 2007 Annual Report Download - page 11

Table of Contents
Accordingly, there can be no assurance that previously unknown environmental conditions, or known conditions which have not been fully
evaluated, will not be discovered at any of our properties, whether presently or formerly owned or leased, or that the cost of remediating such
conditions will not be material.
WHERE YOU CAN FIND MORE INFORMATION
We file annual reports, quarterly reports, current reports, proxy statements and other information with the Securities and Exchange Commission
(the “SEC”) under the Securities Exchange Act of 1934, as amended (“Exchange Act”). You can inspect and obtain a copy of our reports, proxy
statements and other information filed with the SEC at the offices of the SEC’s Public Reference Room at 100 F Street, N.E., Washington, D.C.
20549. Please call the SEC at 1-800-SEC-0330 for further information on the Public Reference Room. The SEC maintains an Internet site at
http://www.sec.gov/ where you can obtain most of our SEC filings. We also make available, free of charge, on our website at
www.nautilusinc.com our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments to those
reports, if any, filed or furnished with the SEC pursuant to Section 13(a) or 15(d) of the Exchange Act as soon as reasonably practicable after
they are filed electronically with the SEC. In addition, our code of business conduct and ethics, corporate governance policies, and the charters
of our Audit Committee, Compensation Committee and Nominating and Corporate Governance Committee are available on our corporate
website at www.nautilusinc.com. The information found on our website is not part of this Form 10-K.
Item 1A. Risk Factors
Special Note Regarding Forward
-Looking Statements and Analysts Reports
This Form 10-K, including Item 1 of Part I and Items 7 and 7(A) of Part II, contains forward-looking statements. Forward-looking statements
include any statements related to our expectations regarding future performance or conditions, including any statements regarding anticipated
sales growth across markets, distribution channels, and product categories, expenses and gross margins, expense as a percentage of revenue,
anticipated earnings, new product introductions, future capital expenditures, financing and working capital requirements and resources. These
forward-looking statements, and others we make from time to time, are subject to a number of risks and uncertainties. Many factors could cause
actual results to differ materially from those projected in forward-looking statements, including the risks described in Item 1(A), Risk Factors,
of
this Form 10-K. We do not undertake any duty to update forward-looking statements after the date they are made or to conform them to actual
results or to changes in circumstances or expectations.
We may need to raise additional financing if our financial results do not improve.
We sustained a pretax loss from continuing operations of $72.0 million during the year ended December 31, 2007, contributing to a decrease in
net working capital of $54.5 million from 2006. Beginning in September 2007, we initiated a number of actions to improve the strength of our
balance sheet, including efforts to divest our Fitness Apparel Business through the sale of Pearl Izumi and the negotiation of a new $100 million
asset-
based line of credit, which will be reduced to $70 million upon the close of the sale of Pearl Izumi. We also initiated an inventory reduction
program to reduce the working capital required to operate our business and sold a building we owned in Louisville, Colorado. However, if we
continue to experience significant operating losses and reductions in net working capital, these actions may not be adequate to address our
financing requirements and we may need to obtain additional debt or equity financing to continue current business operations. There is no
guarantee that we will be able to raise additional funds on favorable terms, if at all.
The actions we have taken to improve our operating performance may not be successful.
Beginning in September 2007, we have implemented a series of actions to improve our operating performance with the goal of simplifying the
business and returning the Company to profitability. We have implemented
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