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02.13.02
Direct Focus completes Stairmaster acquisition
Direct Focus completes Stairmaster acquisition
Direct Focus completes Stairmaster acquisition
VANCOUVER, WA – February 13, 2002 – Direct Focus, Inc. (Nasdaq: DFXI), a leading marketing company for fitness and healthy lifestyle products, announced today that the Company has completed its acquisition of substantially all of the assets of StairMaster Sports/Medical, Inc. ("StairMaster") for approximately $25 million in cash.
Based on unaudited financial information, StairMaster had revenue of approximately $70 million for the full year 2001. During the coming months, Direct Focus plans to concentrate on StairMaster's core products, which include steppers, stepmills, treadmills and exercise bikes. Direct Focus will integrate StairMaster's core products, operations and sales organization into its existing retail and commercial business segment. StairMaster products are expected to contribute over $45 million to Direct Focus' revenue during the remainder of 2002, and to be slightly accretive to earnings for the year.
"We are very excited about the long-term potential of this acquisition," said Brian Cook, CEO of Direct Focus. "StairMaster strengthens our position as a leader in the worldwide fitness market by bringing us an exceptional product line of commercial cardiovascular equipment and complementary retail products, as well as enhanced manufacturing capabilities and international distribution. We also gain more great brand names in the fitness area, StairMaster and Quinton, that add to our powerful combination of Bowflex, Nautilus, and Schwinn brands."
Direct Focus will host a conference call today to discuss the acquisition at 1:00 PM Pacific (4:00 PM Eastern). A listen-only broadcast of the conference call will be available on the Company's website (www.directfocusinc.com) under "Investor Relations" or by calling 888-397-8274 (Reservation No. 3241176). A 48-hour replay will be available by calling 800-642-1687 (Reservation No. 3241176). A replay will also be available through February 26, 2002 under "Investor Relations" on the Company's website.
About Direct Focus, Inc.
Direct Focus is a leading marketing company for fitness and healthy lifestyle products with direct, retail, and commercial sales channels worldwide. The Company currently markets its Bowflex line of home fitness equipment and Nautilus Sleep Systems directly to consumers, using an effective combination of television advertising, 800-call centers and websites. The Company sells its Nautilus, Schwinn, and StairMaster consumer fitness products through retail athletic stores and its Nautilus, Schwinn, and StairMaster commercial fitness equipment directly to health clubs and other institutions. The Company is headquartered in Vancouver, Washington. Direct Focus is located on the Web at www.directfocusinc.com.
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This press release contains forward-looking statements relating to anticipated sales, revenue growth, and the development of Direct Focus' products and services, including statements regarding its Nautilus, Schwinn, and StairMaster businesses. Factors that could affect Direct Focus' actual results include its reliance on a limited product line, fluctuations in advertising rates, market acceptance of its existing and future products, growth management challenges including the growth resulting from the acquisition of the assets of Schwinn Fitness in September 2001 and the assets of StairMaster in February 2002, a decline in consumer spending due to unfavorable economic conditions, government regulatory action, its ability to effectively identify and negotiate any future strategic acquisitions, its ability to integrate the Schwinn Fitness business, the StairMaster business and any other acquired businesses into its operations, unpredictable events and circumstances relating to international operations including its use of foreign manufacturers, and general economic conditions. Please refer to our reports and filings with the Securities and Exchange Commission, including our most recent annual report on Form 10-K and quarterly reports on Form 10-Q, for a further discussion of these risks and uncertainties. We also caution you not to place undue reliance on forward-looking statements, which speak only as of the date they are made. We undertake no obligation to update publicly any forward-looking statements to reflect new information, events or circumstances after the date they were made or to reflect the occurrence of unanticipated events.
Based on unaudited financial information, StairMaster had revenue of approximately $70 million for the full year 2001. During the coming months, Direct Focus plans to concentrate on StairMaster's core products, which include steppers, stepmills, treadmills and exercise bikes. Direct Focus will integrate StairMaster's core products, operations and sales organization into its existing retail and commercial business segment. StairMaster products are expected to contribute over $45 million to Direct Focus' revenue during the remainder of 2002, and to be slightly accretive to earnings for the year.
"We are very excited about the long-term potential of this acquisition," said Brian Cook, CEO of Direct Focus. "StairMaster strengthens our position as a leader in the worldwide fitness market by bringing us an exceptional product line of commercial cardiovascular equipment and complementary retail products, as well as enhanced manufacturing capabilities and international distribution. We also gain more great brand names in the fitness area, StairMaster and Quinton, that add to our powerful combination of Bowflex, Nautilus, and Schwinn brands."
Direct Focus will host a conference call today to discuss the acquisition at 1:00 PM Pacific (4:00 PM Eastern). A listen-only broadcast of the conference call will be available on the Company's website (www.directfocusinc.com) under "Investor Relations" or by calling 888-397-8274 (Reservation No. 3241176). A 48-hour replay will be available by calling 800-642-1687 (Reservation No. 3241176). A replay will also be available through February 26, 2002 under "Investor Relations" on the Company's website.
About Direct Focus, Inc.
Direct Focus is a leading marketing company for fitness and healthy lifestyle products with direct, retail, and commercial sales channels worldwide. The Company currently markets its Bowflex line of home fitness equipment and Nautilus Sleep Systems directly to consumers, using an effective combination of television advertising, 800-call centers and websites. The Company sells its Nautilus, Schwinn, and StairMaster consumer fitness products through retail athletic stores and its Nautilus, Schwinn, and StairMaster commercial fitness equipment directly to health clubs and other institutions. The Company is headquartered in Vancouver, Washington. Direct Focus is located on the Web at www.directfocusinc.com.
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This press release contains forward-looking statements relating to anticipated sales, revenue growth, and the development of Direct Focus' products and services, including statements regarding its Nautilus, Schwinn, and StairMaster businesses. Factors that could affect Direct Focus' actual results include its reliance on a limited product line, fluctuations in advertising rates, market acceptance of its existing and future products, growth management challenges including the growth resulting from the acquisition of the assets of Schwinn Fitness in September 2001 and the assets of StairMaster in February 2002, a decline in consumer spending due to unfavorable economic conditions, government regulatory action, its ability to effectively identify and negotiate any future strategic acquisitions, its ability to integrate the Schwinn Fitness business, the StairMaster business and any other acquired businesses into its operations, unpredictable events and circumstances relating to international operations including its use of foreign manufacturers, and general economic conditions. Please refer to our reports and filings with the Securities and Exchange Commission, including our most recent annual report on Form 10-K and quarterly reports on Form 10-Q, for a further discussion of these risks and uncertainties. We also caution you not to place undue reliance on forward-looking statements, which speak only as of the date they are made. We undertake no obligation to update publicly any forward-looking statements to reflect new information, events or circumstances after the date they were made or to reflect the occurrence of unanticipated events.