Based on preliminary information for the first quarter of 2003, The Nautilus Group, Inc. announced that it expects to report net sales in the range of $124 to $129 million with corresponding earnings per share range of $0.39 to $0.42. These estimates are preliminary and remain subject to final revisions.
“Due to the challenging business environment, we would rather take a more cautious stand on our outlook for fiscal 2003,” began Brian Cook, Chief Executive Officer. “That said, Nautilus maintains the strongest financial position in our industry, and we are encouraged by the recent launch of our TreadClimber(R), the initial results of our Bowflex retail test, and the long-term outlook for our portfolio of leading health and fitness brands. Even though we are optimistic about the future, we believe it is prudent to be cautious with our guidance for the year, as a challenging business environment and macro forces beyond our control may continue to have adverse effects on our results. ”
The Company’s revised 2003 revenue estimate ranges from $525 to $545 million with corresponding earnings per share estimate ranging from $1.60 to $1.70. This compares to previous guidance of $580 million to $600 million in revenue and earnings of $2.50 to $2.60 per share. The Company expects operating cash flow for 2003 will be approximately $55 million to $65 million, compared to previous cash flow guidance of $85 to $95 million.
In terms of revised earnings on a quarterly basis for 2003, based on the current challenging business environment extending beyond the first quarter, the Company expects the second quarter will represent approximately 16% to 18% of yearly earnings, the third quarter will represent approximately 24% to 26% of earnings and the fourth quarter is projected to represent approximately 33% to 35% of earnings for 2003.