Nautilus profits up sharply from year ago

Vancouver-based company's sales grow 34% over those of 1st quarter of 2014

By Aaron Corvin, Columbian Port & Economy Reporter

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Nautilus, the Vancouver-based manufacturer of fitness machines, said Monday it recorded a first-quarter profit of $10.73 million. That compares with a profit of $5.73 million in the January-to-March period of 2014.

Sales grew 34 percent to $96.23 million, up from $71.90 million in the first quarter of 2014.

The company’s first-quarter financial results continue “the strong momentum established over the last few years,” Bruce Cazenave, CEO of Nautilus, said in a news release.

Nautilus sells its cardio, muscle-building and other fitness machines through its direct-to-consumer channel, involving TV, social media and other advertising, and through retail stores.

The company’s direct-to-consumer route produced first-quarter net sales of $74.05 million. That’s up 46 percent from $50.73 million in the first quarter of 2014.

Cazenave said the company’s Bowflex Max Trainer — a home fitness machine combining the attributes of an elliptical machine and a stair-stepper — helped drive the strong sales growth in Nautilus’ direct-to-consumer segment.

Meanwhile, net sales from brick-and-mortar outlets were $21.3 million in the three-month period ended March 31. That’s up 6 percent from $20.1 million during the same three-month period a year ago. The company said its retail sales were negatively impacted in the first quarter by the slowdown in international shipping triggered by a labor dispute at West Coast ports. The labor dispute reached a tentative resolution in late February.

Nautilus’ fitness products are made by third-party manufacturers, according to the company’s most recent annual filing with the U.S. Securities and Exchange Commission. In 2014, all of the company’s third-party manufacturers were located in Asia. Nautilus has warehousing and distribution facilities in Portland, Obetz, Ohio, and in Winnipeg, Canada.

Nautilus, founded in 1986, employed about 340 people when it last reported figures Feb. 25.

The company’s stock, which trades as NLS on the New York Stock Exchange, closed down 9 cents Monday, at $17.21 per share. Nautilus’ shares have traded between $8.22 and $17.94 in the past 52 weeks.