Nautilus, Inc. said for the quarter ended Dec. 31, 2008, the company reported a loss from continuing operations of $41.2 million, or ($1.35) per diluted share.
In the fourth quarter of 2007, the company reported a loss from continuing operations of $32.0 million, or ($1.01) per diluted share, which included pre-tax charges of $43.1 million, of which $19.4 million was related to the suspended acquisition of the Land America manufacturing facility in China, and $15.7 million was inventory and warranty reserves related to certain commercial cardiovascular products.
Gross profit improved to 33.7% of net sales for the fourth quarter of 2008, compared to 24.1% for the same period in the previous year. Operating expenses declined by approximately $4.6 million in the fourth quarter of 2008, compared to the fourth quarter of 2007.
Excluding non-cash goodwill and intangible impairments and restructuring and other charges mentioned above, the companys adjusted loss from continuing operations before income taxes was $10.2 million for the quarter. For the corresponding period in 2007, excluding unusual charges mentioned above, the loss from continuing operations before income taxes was $6.0 million.
The 2008 fourth quarter loss from continuing operations, and related per share amounts, include the impact of a $9.7 million increase in the Companys deferred tax valuation allowance, which substantially reduced the Companys tax benefits for the quarter.
Results from continuing operations exclude the Company's former apparel business, which was sold in April 2008 and is considered a discontinued operation.
Three Months Ended
|($ thousands)||Dec 31, 2008||Dec 31, 2007||
Full Year 2008 Results
Net sales for the year ended Dec. 31, 2008, totaled $411.2 million, a decline of 18.0% compared to the $501.5 million reported for the year ended Dec. 31, 2007. The decline in net sales reflects lower net revenues in all three of our business segments: direct, retail and commercial.
For the year, the company reported a loss from continuing operations of $93.0 million, or ($2.99) per diluted share. The company estimates that it achieved cost reduction benefits of approximately $53 million in 2008.
For the year, the company reported a loss from continuing operations of $45.8 million or ($1.45) per diluted share. The companys 2007 loss from continuing operations before income taxes included $50.3 million in restructuring and other unusual costs, and an $18.3 million reduction to operating expenses as a result of a litigation settlement.
As of Dec. 31, 2008, the company had debt (net of cash) of $12.4 million, compared to net debt of $3.2 million at Sept. 30, 2008, and net debt of $71.1 million at Dec. 31, 2007.