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Nautilus Inc., the Vancouver-based manufacturer of fitnessequipment, wrapped up 2013 with solid earnings, company officials said Monday, including a fourth-quarter profit of $8.5 million. That compares with a profit of $13.5 million in the October-to-December period in 2012.
For all of 2013, Nautilus reported a profit of $47.9 million. That's nearly triple its full-year profit of $16.8 million in 2012.
However, the unusually robust full-year earnings came by way of a tax benefit involving the company's deferred tax assets.
Take the $33 million tax benefit out of the equation, and Nautilus reported a 2013 profit of $14.9 million.
During an earnings conference call Monday, Nautilus CEO Bruce Cazenave said the company "ended the year with an expanded and more diversified" group of cardio and muscle-building machines.
Nautilus sells its fitness-equipment offerings at brick-and-mortar retail outlets and through direct-to-consumer efforts, including TV, social media and other advertising.
The company reported overall net sales of $77 million in the fourth quarter, a year-over-year increase of 18 percent. For all of 2013, Nautilus posted net sales of $218.8 million -- an increase of about 13 percent from net sales of $193.9 million in 2012.
Bill McMahon, chief operating officer for Nautilus, said one of the company's new products -- the Bowflex Max Trainer, a home-fitnessdevice that combines the attributes of an elliptical and a stair-stepper -- "will be a key focus for us" in 2014. The launch of the Max Trainer shortly after the end of 2013 "exceeded our expectations," McMahon said, and the company plans to further promote the product this year to generate additional sales leads.
Nautilus also sees additional growth opportunities in international markets, McMahon said, where the company's brand is "underrepresented in several key markets." To help remedy that situation, he said, Nautilus recently attended a consumer fitness-equipment conference in Munich, Germany, where the company "showcased our new line of products."
Meanwhile, the company's balance sheet remains strong, Cazenave said, with cash and cash equivalents of $40.9 million as of Dec. 31 and "no debt financing."
Founded in 1986, the company -- which employs an estimated 310 people -- develops and sells fitness equipment and accessories. Its brand names include Nautilus, Bowflex and Schwinn Fitness.
The company's stock, which trades as NLS, closed down 10 cents Monday, at $8.25 per share. The company's shares have traded between $5.55 and $9.87 in the past 52 weeks.Aaron Corvin: