January 13, 2014 - Nautilus, Inc. (NYSE: NLS) announced its preliminary, unaudited results for the fourth quarter and year ended December 31, 2013.
Nautilus expects to report net sales of approximately $77.1 million for the fourth quarter of 2013, an increase of 18.5% compared to the fourth quarter of 2012. For the full year 2013, net sales are expected to approximate $218.8 million, an increase of 12.8% compared to 2012.
Non-GAAP fully diluted earnings per share from continuing operations are estimated to be in the range of $0.29 - $0.31 for the fourth quarter of 2013, compared to $0.23 per share for the fourth quarter of 2012. On a full year basis for 2013, non-GAAP fully diluted earnings per share from continuing operations are expected to be in the range of $0.46 - $0.48 versus $0.34 per share in 2012. Non-GAAP fully diluted earnings per share for the fourth quarter 2013 excludes income tax expense of $0.04 per share, and the non-GAAP figure for the full year 2013 excludes income tax benefit of $1.05 per share. In the second quarter of 2013 the Company recognized an income tax benefit of $1.09 per share as a result of the partial reversal of the valuation allowance recorded against the Company's deferred tax assets. During the fourth quarter of 2013 it was determined that this reversal underestimated the Company’s full year profitability and the Company expects to reestablish a portion of the reversal, resulting in recognition of income tax expense of approximately $0.04 per share in the fourth quarter of 2013.
"We're pleased to report sales growth in all segments of our business for the fourth quarter of 2013," said Bruce M. Cazenave, CEO of Nautilus, Inc. "Continued margin improvement in both of our Direct and Retail businesses along with strategic investment in new product launches enabled us to deliver significant bottom line improvement versus the same period in the prior year. Our fourth quarter and full year results are further affirmation that our plans and initiatives are working. I am proud of our entire employee base for all their efforts in making these improved results happen and continuing to build on them for the future. We look forward to sharing further details in our upcoming earnings release and quarterly conference call."