Nautilus Provides Preliminary Financial Results for the Fourth Quarter and Full Year 2018
To:
While our results for the fourth quarter of 2018 and fiscal year ended
-
Revenue range of approximately
$114-$116 million for Q4 2018 and$395-$397 million for the full year-
Direct segment revenues of approximately
$50 million for Q4 2018 -
Retail segment revenues of approximately
$64 million for Q4 2018
-
Direct segment revenues of approximately
- Gross margin of approximately 44% for Q4 2018 and 46% for the full year
-
Operating expenses of approximately
$48 million for Q4 2018 and$161 million for the full year -
Operating Income range of approximately
$2.0 - $3.0 million for Q4 2018 and$20.0 –$21.0 million for the full year -
Tax rate of approximately 46% for the quarter, including
$0.6 million of state tax related true-ups; and 28% for the full year -
EPS from continuing operations in the range of
$0.04 to $0.05 per diluted share for Q4 2018 and between$0.49 to $0.50 per diluted share for the full year 2018
Fourth Quarter 2018 Summary
The results for the fourth quarter of 2018 did not meet our expectations
or the guidance we had provided during our
Our Retail segment revenues continued the strong growth trajectory we
have experienced throughout 2018 with fourth quarter sales of
approximately
Operating expenses were approximately
Our cash balance at year-end was approximately
We would also like to take this opportunity to provide an update on
certain organization changes that are occurring. We are pleased to
announce that
Lastly,
2019 Outlook
As we enter 2019, we remain confident that the market fundamentals for our business are solid and remain intact. However, there are a number of initiatives that we are implementing to further strengthen our business which include a combination of external market opportunities and internally-focused initiatives.
We remain focused on investing in our innovation platforms supported by robust marketing and media commitments. We have a healthy new product introduction schedule for 2019, and in addition, have secured strategic investments with key partners which we anticipate will drive further enhancements to our digital offerings starting this year. External market opportunities remain vast given our brands, marketing power, and product innovation capabilities, and we intend to utilize those assets to capture and optimize the growth opportunities.
Internally-focused initiatives are targeted at mitigating some of the profitability challenges we had last year, which we expect to continue into 2019. Hence, we are embarking on an aggressive cost-containment program that will simplify and make processes more efficient, rescale the operations to be more profitable on a lower sales base, and increase our efforts in value engineering our products. I am confident in the ingenuity and capabilities of our global employee base to execute and deliver on these initiatives and return the business to stronger operating margins.
We plan to provide final 2018 results and more detailed 2019 guidance
during our year-end earnings call currently scheduled for
Thank you,
Chief Executive Officer
About
Headquartered in
This press release includes forward-looking statements (statements which
are not historical facts) within the meaning of the Private Securities
Litigation Reform Act of 1995, including: projected or forecasted
financial and operating results, including expectations for full year
2018 net revenue and operating income; future plans for introduction of
new products, anticipated demand for the Company's new and existing
products, and projected impact of the new product launches on the
Company’s operating results for fiscal year 2019 and future periods;
statements regarding the Company's prospects, resources or capabilities;
current or future financial and economic trends; planned investments and
strategic initiatives and the anticipated or targeted results of such
initiatives. Factors that could cause Nautilus, Inc.’s actual results to
differ materially from these forward-looking statements include: weaker
than expected demand for new or existing products; our ability to timely
acquire inventory that meets our quality control standards from sole
source foreign manufacturers at acceptable costs; an inability to pass
along or otherwise mitigate the impact of raw material price increases
and other cost pressures, including unfavorable currency exchange rates;
experiencing delays and/or greater than anticipated costs in connection
with launch of new products, entry into new markets, or strategic
initiatives; our ability to hire and retain key management personnel;
changes in consumer fitness trends; changes in the media consumption
habits of our target consumers or the effectiveness of our media
advertising; a decline in consumer spending due to unfavorable economic
conditions; and softness in the retail marketplace. Additional
assumptions, risks and uncertainties are described in detail in our
registration statements, reports and other filings with the
View source version on businesswire.com: https://www.businesswire.com/news/home/20190117005661/en/
Source:
John Mills, ICR, LLC
Telephone: (646) 277-1254