For the fiscal first quarter ended September 2, 2006, ICON Health & Fitness, Inc. reported net sales of $141.2 million, compared to $139.6 million for the three months ended September 3, 2005, which represents a $1.6 million, or a 1.1% increase over the corresponding three-month period ended September 3, 2005. The increase in sales can be attributed to increased customer demand.
Net loss for the three months ended September 2, 2006 was $18.0 million, compared to net loss of $24.8 million for the three months ended September 3, 2005. Net loss before taxes, and discontinued operations for the three months ended September 2, 2006 was $16.5 million, compared to a net loss before taxes and discontinued operations of $19.2 million for the three months ended September 3, 2005.
The benefit for taxes for the three months ended September 2, 2006 was $200,000 compared to a provision of $400,000 million in the three months ended September 3, 2005. This decrease can be attributed to a deferred tax valuation allowance. Depreciation and amortization for three months ended September 2, 2006 was $5.6 million compared to $7.9 million for the three months ended September 3, 2005.
Interest expense, including amortization of deferred financing fees, for the three months ended September 2, 2006 was $8.7 million versus the prior year's comparable period interest expense and amortization of deferred financing fees of $7.1 million. The loss from discontinued operations for the three months ended September 2, 2006 was $1.7 million compared to a loss on discontinued operations of $5.2 million for the three months September 3, 2005.
Income before interest expense, income tax expense, depreciation and amortization and certain non-recurring items (“EBITDA”) for the three months ended September 2, 2006 was negative $2.2 million compared to a negative $4.3 million for the three months ended September 3, 2005.
Total assets as of September 2, 2006 and May 31, 2006 were $404.8 million and $380.8 million, respectively. The increase in assets was primarily attributable to the seasonal inventory build-up that will carry the company through the upcoming busy season. Net debt (current portion of long-term debt plus long-term debt less cash) for the period ended September 2, 2006 and the period ended September 3, 2005 was $314.6 million and $285.5 million, respectively. This increase represents the change in cash for the period. Capital expenditures were $3.6 million for the period ended September 2, 2006 compared to capital expenditures of $3.4 million in the year ended September 3, 2005.
