Nautilus reports 15 percent increase in 4Q sales

Vancouver-based fitness equipment maker Nautilus, Inc. said Monday that it generated $109 million in sales in last year’s fourth quarter, a 15 percent increase over the same quarter in 2014. For the full year of 2015, its net sales of $336 million were up by 22 percent from 2014, the company said in its earnings report.

Nautilus reported fourth-quarter adjusted operating income of $19.2 million, a 32 percent increase from the same quarter a year earlier. For the full year, adjusted operating income of $47 million reflected an increase of 56 percent compared to 2014.

The company attributed the increased income to increases in both direct and retail sales categories. It noted in its earnings report the “continued strong performance” of its Bowflex Max Trainer product line and “good early demand for the newly refreshed TreadClimber line, partially offset by a decline in sales of other products.”

The company said its income from continuing operations for the fourth quarter of 2015 was $9.9 million, or $0.32 per diluted share.

“We are well-positioned to produce another year of sales and profitability growth,” said Nautilus CEO Bruce Cazenave in a conference call with investors. “We are still in the early phases of our growth journey, with significant opportunities for organic growth still ahead.”

Nautilus ended last year with its acquisition of Octane Fitness, LLC, a Minnesota-based fitness products company it purchased from a private equity firm and other stockholders. It tapped cash and an $80 million loan to cover the $115 million purchase.

As a result of that investment, Nautilus reported $80 million in debt and $60 million in cash at year’s end, compared to zero debt and $72.2 million in cash at the end of 2014.

Octane is expected to report sales of approximately $65 million for all of 2015, Nautilus said.

Octane Fitness becomes the fifth of Nautilus’ product lines, in addition to its Nautilus, Bowflex, Schwinn, and Universal brands. “With five of the best brands in fitness, there is little doubt we will have a brand and a market for any product we develop,” said Bill McMahon, Nautilus’ chief operating officer, in the conference call.

Nautilus stock closed at $21.03, up 1.5 percent for the day. Its stock price has ranged from $13.82 to $22.95 over the past year.