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05.10.99
DIRECT FOCUS, INC. SALES UP 135 PERCENT
DIRECT FOCUS, INC. SALES UP 135 PERCENT
DIRECT FOCUS, INC. SALES UP 135 PERCENT
VANCOUVER, WA...May 10, 1999...Direct Focus, Inc. (Nasdaq: DFXI), a direct marketing company, today reported significantly improved sales and earnings for the first quarter ended March 31, 1999. It is the company' first financial reporting as a Nasdaq traded company.
Sales for the quarter rose 135 percent to $26.1 million from $11.1 million, with 27 percent of that increase, or $4.0 million, coming from the company's Nautilus unit acquired in January 1999. Net income of $4.5 million increased 73 percent from $2.6 million a year ago despite a loss of $200,000 associated with the Nautilus operation. Earnings per diluted share were $0.45, up 67 percent from $0.27 in the same 1998 quarter. The 1999 first quarter results do not reflect the addition of 825,000 shares which were sold in a public offering on May 5.
"We're extremely pleased with the results which reflect the integration of the Nautilus operation," said Brian Cook, president and chief executive officer of Direct Focus. "This business was recording significant losses when we acquired it and we have been able to improve its performance in a short period of time. There were some immediate benefits realized by installing new management, a workforce reduction at Nautilus and other synergies as part of the combination."
"Our goal is to bring Nautilus to profitability as soon as possible," Cook pointed out. "In addition to our commitment to revitalizing Nautilus' business of supplying fitness equipment to health clubs and other commercial facilities, we intend to leverage the Nautilus name with new consumer products."
Cook noted that in addition to successfully continuing market expansion in the quarter, the company also completed its first offering of common stock in the United States which raised $15.1 million in net proceeds. Direct Focus, which was previously traded on the Toronto Stock Exchange, began trading on Nasdaq on May 5, 1999.
Direct Focus, Inc. currently markets three lines of products - Bowflex home fitness equipment, Nautilus fitness equipment and Nautilus sleep systems - directly to customers via advertising on television, printed media and the world wide web.
This press release contains forward-looking statements relating to anticipated revenues, net income, earnings and the development of the company's products and services, including statements regarding its Nautilus business. Factors that could affect the company's actual results include its reliance on a limited product line, market acceptance of its existing and future products, growth management challenges and difficulties integrating the company's Nautilus operations. A more detailed description of certain factors that could affect actual results include, but are not limited to, those discussed in the company's registration statement on Form S-1 in the section entitled "Risk Factors."
Sales for the quarter rose 135 percent to $26.1 million from $11.1 million, with 27 percent of that increase, or $4.0 million, coming from the company's Nautilus unit acquired in January 1999. Net income of $4.5 million increased 73 percent from $2.6 million a year ago despite a loss of $200,000 associated with the Nautilus operation. Earnings per diluted share were $0.45, up 67 percent from $0.27 in the same 1998 quarter. The 1999 first quarter results do not reflect the addition of 825,000 shares which were sold in a public offering on May 5.
"We're extremely pleased with the results which reflect the integration of the Nautilus operation," said Brian Cook, president and chief executive officer of Direct Focus. "This business was recording significant losses when we acquired it and we have been able to improve its performance in a short period of time. There were some immediate benefits realized by installing new management, a workforce reduction at Nautilus and other synergies as part of the combination."
"Our goal is to bring Nautilus to profitability as soon as possible," Cook pointed out. "In addition to our commitment to revitalizing Nautilus' business of supplying fitness equipment to health clubs and other commercial facilities, we intend to leverage the Nautilus name with new consumer products."
Cook noted that in addition to successfully continuing market expansion in the quarter, the company also completed its first offering of common stock in the United States which raised $15.1 million in net proceeds. Direct Focus, which was previously traded on the Toronto Stock Exchange, began trading on Nasdaq on May 5, 1999.
Direct Focus, Inc. currently markets three lines of products - Bowflex home fitness equipment, Nautilus fitness equipment and Nautilus sleep systems - directly to customers via advertising on television, printed media and the world wide web.
This press release contains forward-looking statements relating to anticipated revenues, net income, earnings and the development of the company's products and services, including statements regarding its Nautilus business. Factors that could affect the company's actual results include its reliance on a limited product line, market acceptance of its existing and future products, growth management challenges and difficulties integrating the company's Nautilus operations. A more detailed description of certain factors that could affect actual results include, but are not limited to, those discussed in the company's registration statement on Form S-1 in the section entitled "Risk Factors."