Nautilus Inc. filed a report with the SEC last week that provided more insight into Pearl Izumi and Dash-America, Inc., its parent company that was acquired by NLS in early July. The total value of the deal was approximately $69.7 million in cash and approximately $4.6 million in assumed debt.
For the first half of 2005 ended June 30, Pearl Izumi generated $30.6 million in sales, a 15.7% increase from $26.5 million in sales in H1 2004. Gross margins rose 130 basis points to 46.0% of sales, while operating expenses were flat as a percentage of sales at 32.1%. Net income rose 6.2% to $2.0 million, compared to $1.9 million in the same period last year, but ROS declined 60 basis points to 6.5% of sales.
Nautilus acquired about $31.6 million in assets in the deal, including roughly $12.4 million in inventory and $8.8 million in accounts receivable.
Total sales for the 2004 full year were $52.9 million and net sales were pegged at $49.4 million after returns and discounts. GM was 48.4% of sales for the year. Net
income was $3.5 million, or 7.0% of sales.
Based on the trailing twelve month results, it looks as though NLS paid a bit of a premium in the deal. The total deal value of $74.3 million carried a multiple of 1.4x TTM sales of $53.5 million and nearly 12x EBIT of $6.2 million for the TTM period.
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