Nautilus Group Inc. warned it will miss analyst’s Q4 consensus estimates and that 2003 earnings will be lower than 2002. The maker of health and fitness products said Monday that it anticipates fourth-quarter earnings of 66 cents to 69 cents a share, below the Thomson First Call consensus estimate of 71 cents a share.
Based on preliminary information for the fourth quarter of 2002, the Company announced that it expects to report net sales in the range of $150 to $155 million, compared to $125 million for the corresponding period last year. Earnings per share for the fourth quarter are expected to range from $0.66 to $0.69, compared to $0.57 for the corresponding period last year. For the full fiscal year ended December 31, 2002, the Company expects to report net sales in the range of $579 to $584 million, compared to $364 million in 2001 and earnings are expected to be in the range of $2.76 to $2.79 per share, compared to $1.85 per share in 2001.
These estimates are preliminary and are subject to the final closing of our books for the fourth quarter of 2002. The Nautilus Group will report actual fourth quarter results on February 6, 2003, at which time additional commentary will be provided.
The Company also announced that it expects 2003 revenue to range from $580 million to $600 million with corresponding earnings per share range of $2.50 to $2.60. The Company expects operating cash flow for 2003 will be approximately $85 million to $95 million.
In terms of earnings on a quarterly basis for 2003, the Company expects the first quarter of 2003 will represent approximately 25% to 27% of yearly earnings, the second quarter will represent approximately 20% to 22% of earnings, the third quarter will represent approximately 23% to 25% of earnings and the fourth quarter is projected to represent approximately 28% to 30% of earnings for 2003.
Brian Cook, Chief Executive Officer, offered his perspective on the Company’s fourth quarter performance and business outlook for 2003, “We are pleased with our preliminary fourth quarter results and look forward to 2003. While 2003 earnings guidance is slightly lower than 2002, our business remains healthy, we have a strong balance sheet, and have consistently produced solid operating results and cash flow. Finally, we are excited to announce that we plan to introduce a new product through our direct marketing channel during the second quarter of 2003.”
