March 12, 2012 - Nautilus, Inc. (NYSE: NLS) reported today its unaudited operating results for the fourth quarter and full year ended December 31, 2011. All information regarding the Company's operating results, unless otherwise noted, pertains to its continuing operations, which include the Direct and Retail fitness segments. The Company's former commercial fitness business is reported as a discontinued operation.
Net sales for the fourth quarter ended December 31, 2011 totaled $60.0 million, an increase of 11.7% as compared to net sales of $53.7 million for the same quarter in 2010. For the full year ended December 31, 2011, net sales increased to $180.4 million, an increase of 7.1% as compared to net sales of $168.5 million for the same period in 2010.
Income from continuing operations for the fourth quarter ended December 31, 2011 was $3.3 million, compared to $1.9 million for the 2010 fourth quarter. Diluted income per share from continuing operations for the fourth quarter of 2011 was $0.11, compared to $0.06 for the same quarter a year ago. The significant improvement in results from continuing operations reflects stronger sales and a 500 basis point decrease in operating expenses as a percentage of sales due to lower general and administrative costs and marketing spend efficiencies within the Direct channel. Selling and marketing expenses for the 2011 fourth quarter were roughly flat to prior year, but as a percent of net sales declined to 26.5% from 30.0%. This reflects a strategic shift toward online media for strength products as well as improved efficiency of marketing and media expenditure for our cardio products.
Income from continuing operations for the full year ended December 31, 2011 was $2.5 million, compared to a loss from continuing operations of $9.8 million in 2010.Bruce M. Cazenave, Chief Executive Officer, stated, "We are pleased with our financial performance for the fourth quarter and full year 2011; it represents a quantum improvement over prior years and puts us on a path towards sustained profitable growth. Increased sales and greater leverage of operating expenses resulted in significant improvement in our income from continuing operations. Consumer demand for our products in the fourth quarter remained strong in both our Direct and Retail channels, with the TreadClimber ® product line continuing to perform well in our Direct segment and new bikes and ellipticals performing well in our Retail segment. In addition, we launched our new CoreBody Reformer™ in the fourth quarter and are encouraged by the initial acceptance in the marketplace.” Mr. Cazenave continued, “As we begin 2012, we are excited about the outlook for our business and are confident in our ability to deliver growth and improved financial results. Our management team remains focused on introducing more new products in 2012, in addition to refreshing products in our current portfolio. We will also continue our focus on tight expense management in order to achieve further leverage in our business model.”
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