Nautilus Inc. on Monday reported big revenues for the first quarter of 2016, which came on the back of the company’s purchase of Octane Fitness at the end of last year.
“Following a strong year of performance in 2015, we are very pleased to report a solid start to 2016,” said Bruce Cazenave, CEO of the Vancouver-based fitness equipment company.
Nautilus reported a first-quarter profit of $11.4 million, or $0.37 per diluted share, from $120.9 million in sales. Sales grew 25 percent from the first quarter of 2015, when the company posted a $10.7 million profit.
This is the first quarter that the company included the results of Octane Fitness, the high-end Minnesota-based company Nautilus bought for $115 million in December.
Octane “generates higher gross margins” than Nautilus’ other brands like Bowflex and Schwinn, said Chief Operating Officer Bill McMahon. He added that the acquisition increased the company’s brand diversity and presence in specialty markets.
“The addition of Octane gives us expanded sales reach,” McMahon said.
While the first quarter typically sees strong exercise equipment sales — think New Year’s resolutions — the company expects continued financial strength through the year and said it is maintaining a commitment to a 10 to 12 percent yearly growth rate.
“We are very encouraged by the continued strong momentum,” Cazenave said.
Nautilus on Monday also announced a $10 million share-buyback program to add to its $15 million repurchasing campaign launched in November 2014. Companies buy back their own shares at times to boost their trading value or reduce the cost of capital.
Nautilus, traded as NLS, ended Monday up $0.25 at $17.30 per share. The stock has gone as high as $22.95 and as low as $13.82 in the past 12 months.