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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Nautilus Inc | NYSE:NLS | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 0.8204 | 0 | 01:00:00 |
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FORM 10-Q
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[x]
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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[ ]
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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NAUTILUS, INC.
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(Exact name of Registrant as specified in its charter)
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Washington
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94-3002667
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(State or other jurisdiction of
incorporation or organization)
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(I.R.S. Employer
Identification No.)
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Large accelerated filer [ ]
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Accelerated filer [x]
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Non-accelerated filer [ ]
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Smaller reporting company [ ]
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Emerging growth company [ ]
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(Do not check if a smaller reporting company)
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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]
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Item 1.
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Item 2.
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Item 3.
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Item 4.
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Item 1.
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Item 1A.
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Item 6.
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As of
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||||||
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June 30, 2017
|
|
December 31, 2016
|
||||
Assets
|
|
|
|
||||
Cash and cash equivalents
|
$
|
21,811
|
|
|
$
|
47,874
|
|
Available-for-sale securities
|
63,624
|
|
|
31,743
|
|
||
Trade receivables, net of allowances of $290 and $170
|
24,220
|
|
|
45,458
|
|
||
Inventories
|
42,344
|
|
|
47,030
|
|
||
Prepaids and other current assets
|
6,020
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|
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8,020
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||
Income taxes receivable
|
4,041
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|
|
3,231
|
|
||
Total current assets
|
162,060
|
|
|
183,356
|
|
||
Property, plant and equipment, net
|
16,037
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17,468
|
|
||
Goodwill
|
61,957
|
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61,888
|
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||
Other intangible assets, net
|
68,166
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|
69,800
|
|
||
Deferred income tax assets, non-current
|
—
|
|
|
11
|
|
||
Other assets
|
492
|
|
|
543
|
|
||
Total assets
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$
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308,712
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$
|
333,066
|
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Liabilities and Shareholders' Equity
|
|
|
|
||||
Trade payables
|
$
|
46,936
|
|
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$
|
66,020
|
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Accrued liabilities
|
8,746
|
|
|
12,892
|
|
||
Warranty obligations, current portion
|
3,266
|
|
|
3,500
|
|
||
Note payable, current portion, net of unamortized debt issuance costs
of $7 and $7
|
15,993
|
|
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15,993
|
|
||
Total current liabilities
|
74,941
|
|
|
98,405
|
|
||
Warranty obligations, non-current
|
3,385
|
|
|
3,950
|
|
||
Income taxes payable, non-current
|
2,571
|
|
|
2,403
|
|
||
Deferred income tax liabilities, non-current
|
17,103
|
|
|
16,991
|
|
||
Other long-term liabilities
|
2,358
|
|
|
2,481
|
|
||
Note payable, non-current, net of unamortized debt issuance costs
of $18 and $21
|
39,982
|
|
|
47,979
|
|
||
Total liabilities
|
140,340
|
|
|
172,209
|
|
||
Commitments and contingencies (Note 14)
|
|
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|
||
Shareholders' equity:
|
|
|
|
||||
Common stock - no par value, 75,000 shares authorized, 30,786 and
30,825 shares issued and outstanding
|
1,381
|
|
|
578
|
|
||
Retained earnings
|
167,728
|
|
|
161,496
|
|
||
Accumulated other comprehensive loss
|
(737
|
)
|
|
(1,217
|
)
|
||
Total shareholders' equity
|
168,372
|
|
|
160,857
|
|
||
Total liabilities and shareholders' equity
|
$
|
308,712
|
|
|
$
|
333,066
|
|
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Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Net sales
|
$
|
77,029
|
|
|
$
|
78,529
|
|
|
$
|
190,281
|
|
|
$
|
199,457
|
|
Cost of sales
|
38,651
|
|
|
36,667
|
|
|
90,158
|
|
|
91,251
|
|
||||
Gross profit
|
38,378
|
|
|
41,862
|
|
|
100,123
|
|
|
108,206
|
|
||||
Operating expenses:
|
|
|
|
|
|
|
|
||||||||
Selling and marketing
|
23,628
|
|
|
24,711
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|
61,293
|
|
|
59,890
|
|
||||
General and administrative
|
7,315
|
|
|
7,203
|
|
|
14,801
|
|
|
15,434
|
|
||||
Research and development
|
3,586
|
|
|
3,375
|
|
|
7,497
|
|
|
7,009
|
|
||||
Total operating expenses
|
34,529
|
|
|
35,289
|
|
|
83,591
|
|
|
82,333
|
|
||||
Operating income
|
3,849
|
|
|
6,573
|
|
|
16,532
|
|
|
25,873
|
|
||||
Other income (expense):
|
|
|
|
|
|
|
|
||||||||
Interest income
|
175
|
|
|
68
|
|
|
306
|
|
|
122
|
|
||||
Interest expense
|
(412
|
)
|
|
(514
|
)
|
|
(856
|
)
|
|
(980
|
)
|
||||
Other, net
|
110
|
|
|
(136
|
)
|
|
63
|
|
|
(260
|
)
|
||||
Total other expense, net
|
(127
|
)
|
|
(582
|
)
|
|
(487
|
)
|
|
(1,118
|
)
|
||||
Income from continuing operations before income taxes
|
3,722
|
|
|
5,991
|
|
|
16,045
|
|
|
24,755
|
|
||||
Income tax expense
|
1,156
|
|
|
2,295
|
|
|
5,294
|
|
|
9,473
|
|
||||
Income from continuing operations
|
2,566
|
|
|
3,696
|
|
|
10,751
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|
|
15,282
|
|
||||
Discontinued operations:
|
|
|
|
|
|
|
|
||||||||
Loss from discontinued operations before income taxes
|
(29
|
)
|
|
(180
|
)
|
|
(1,655
|
)
|
|
(304
|
)
|
||||
Income tax expense (benefit) of discontinued operations
|
48
|
|
|
(14
|
)
|
|
(486
|
)
|
|
4
|
|
||||
Loss from discontinued operations
|
(77
|
)
|
|
(166
|
)
|
|
(1,169
|
)
|
|
(308
|
)
|
||||
Net income
|
$
|
2,489
|
|
|
$
|
3,530
|
|
|
$
|
9,582
|
|
|
$
|
14,974
|
|
|
|
|
|
|
|
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|
||||||||
Basic income per share from continuing operations
|
$
|
0.08
|
|
|
$
|
0.12
|
|
|
$
|
0.35
|
|
|
$
|
0.49
|
|
Basic loss per share from discontinued operations
|
—
|
|
|
(0.01
|
)
|
|
(0.04
|
)
|
|
(0.01
|
)
|
||||
Basic net income per share
|
$
|
0.08
|
|
|
$
|
0.11
|
|
|
$
|
0.31
|
|
|
$
|
0.48
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted income per share from continuing operations
|
$
|
0.08
|
|
|
$
|
0.12
|
|
|
$
|
0.35
|
|
|
$
|
0.49
|
|
Diluted loss per share from discontinued operations
|
—
|
|
|
(0.01
|
)
|
|
(0.04
|
)
|
|
(0.01
|
)
|
||||
Diluted net income per share
|
$
|
0.08
|
|
|
$
|
0.11
|
|
|
$
|
0.31
|
|
|
$
|
0.48
|
|
Shares used in per share calculations:
|
|
|
|
|
|
|
|
||||||||
Basic
|
30,755
|
|
|
31,072
|
|
|
30,734
|
|
|
31,044
|
|
||||
Diluted
|
31,095
|
|
|
31,335
|
|
|
31,110
|
|
|
31,315
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Net income
|
$
|
2,489
|
|
|
$
|
3,530
|
|
|
$
|
9,582
|
|
|
$
|
14,974
|
|
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
||||||||
Unrealized gain (loss) on available-for-sale securities, net of income tax expense (benefit) of $(5), $4, $(17) and $16
|
(9
|
)
|
|
8
|
|
|
(28
|
)
|
|
26
|
|
||||
Gain (loss) on derivative securities, effective portion, net of income tax expense (benefit) of $(7), $(63), $65 and $(476)
|
(12
|
)
|
|
(105
|
)
|
|
107
|
|
|
(787
|
)
|
||||
Foreign currency translation, net of income tax expense (benefit) of $2, $2, $2 and $(5)
|
330
|
|
|
(110
|
)
|
|
401
|
|
|
442
|
|
||||
Other comprehensive income (loss)
|
309
|
|
|
(207
|
)
|
|
480
|
|
|
(319
|
)
|
||||
Comprehensive income
|
$
|
2,798
|
|
|
$
|
3,323
|
|
|
$
|
10,062
|
|
|
$
|
14,655
|
|
|
Six Months Ended June 30,
|
||||||
|
2017
|
|
2016
|
||||
Cash flows from operating activities:
|
|
|
|
||||
Income from continuing operations
|
$
|
10,751
|
|
|
$
|
15,282
|
|
Loss from discontinued operations
|
(1,169
|
)
|
|
(308
|
)
|
||
Net income
|
9,582
|
|
|
14,974
|
|
||
Adjustments to reconcile net income to cash provided by operating activities:
|
|
|
|
||||
Depreciation and amortization
|
4,518
|
|
|
3,964
|
|
||
Provision (benefit) for allowance for doubtful accounts
|
221
|
|
|
(876
|
)
|
||
Inventory lower-of-cost-or-market/NRV adjustments
|
258
|
|
|
133
|
|
||
Stock-based compensation expense
|
1,130
|
|
|
1,489
|
|
||
Loss on asset dispositions
|
—
|
|
|
127
|
|
||
Deferred income taxes, net of valuation allowance
|
67
|
|
|
5,629
|
|
||
Excess tax benefit related to stock-based awards
|
—
|
|
|
(1,729
|
)
|
||
Other
|
(65
|
)
|
|
5
|
|
||
Changes in operating assets and liabilities:
|
|
|
|
||||
Trade receivables
|
20,982
|
|
|
26,260
|
|
||
Inventories
|
4,226
|
|
|
1,115
|
|
||
Prepaids and other current assets
|
2,141
|
|
|
(445
|
)
|
||
Income taxes receivable
|
(809
|
)
|
|
(8,040
|
)
|
||
Trade payables
|
(19,477
|
)
|
|
(17,530
|
)
|
||
Accrued liabilities, including warranty obligations
|
(4,897
|
)
|
|
(2,062
|
)
|
||
Net cash provided by operating activities
|
17,877
|
|
|
23,014
|
|
||
Cash flows from investing activities:
|
|
|
|
||||
Purchases of available-for-sale securities
|
(53,573
|
)
|
|
(20,305
|
)
|
||
Proceeds from maturities of available-for-sale securities
|
21,735
|
|
|
16,938
|
|
||
Proceeds from sales of available-for-sale securities
|
—
|
|
|
71
|
|
||
Acquisition of business, net of cash acquired
|
—
|
|
|
(3,468
|
)
|
||
Purchases of property, plant and equipment and intangible assets
|
(1,084
|
)
|
|
(706
|
)
|
||
Net cash used in investing activities
|
(32,922
|
)
|
|
(7,470
|
)
|
||
Cash flows from financing activities:
|
|
|
|
||||
Payments on long-term debt
|
(8,000
|
)
|
|
(8,000
|
)
|
||
Payments for stock repurchases
|
(3,427
|
)
|
|
—
|
|
||
Proceeds from exercise of stock options and employee stock plan purchases
|
490
|
|
|
431
|
|
||
Tax payments related to stock award issuances
|
(741
|
)
|
|
(221
|
)
|
||
Excess tax benefit related to stock-based awards
|
—
|
|
|
1,729
|
|
||
Net cash used in financing activities
|
(11,678
|
)
|
|
(6,061
|
)
|
||
Effect of exchange rate changes on cash and cash equivalents
|
660
|
|
|
(77
|
)
|
||
Increase (decrease) in cash and cash equivalents
|
(26,063
|
)
|
|
9,406
|
|
||
Cash and cash equivalents:
|
|
|
|
||||
Beginning of period
|
47,874
|
|
|
30,778
|
|
||
End of period
|
$
|
21,811
|
|
|
$
|
40,184
|
|
Supplemental disclosure of cash flow information:
|
|
|
|
||||
Cash paid for interest
|
$
|
851
|
|
|
$
|
975
|
|
Cash paid for income taxes, net
|
5,289
|
|
|
11,305
|
|
||
Supplemental disclosure of non-cash investing activities:
|
|
|
|
||||
Capital expenditures incurred but not yet paid
|
$
|
338
|
|
|
$
|
1,701
|
|
•
|
Level 1 - observable inputs such as quoted prices (unadjusted) in active liquid markets for identical securities as of the reporting date;
|
•
|
Level 2 - other significant directly or indirectly observable inputs, including quoted prices for similar securities, interest rates, prepayment speeds and credit risk; or observable market prices in markets with insufficient volume and/or infrequent transactions; and
|
•
|
Level 3 - significant inputs that are generally unobservable inputs for which there is little or no market data available, including our own assumptions in determining fair value.
|
|
|
June 30, 2017
|
||||||||||||||
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Assets:
|
|
|
|
|
|
|
|
|
||||||||
Cash Equivalents
|
|
|
|
|
|
|
|
|
||||||||
Money market funds
|
|
$
|
7,816
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
7,816
|
|
Commercial paper
|
|
—
|
|
|
1,998
|
|
|
—
|
|
|
1,998
|
|
||||
Total cash equivalents
|
|
7,816
|
|
|
1,998
|
|
|
—
|
|
|
9,814
|
|
||||
Available-for-Sale Securities
|
|
|
|
|
|
|
|
|
||||||||
Certificates of deposit
(1)
|
|
—
|
|
|
19,126
|
|
|
—
|
|
|
19,126
|
|
||||
Commercial paper
|
|
—
|
|
|
11,478
|
|
|
—
|
|
|
11,478
|
|
||||
Corporate bonds
|
|
—
|
|
|
26,024
|
|
|
—
|
|
|
26,024
|
|
||||
U.S. government bonds
|
|
—
|
|
|
6,996
|
|
|
—
|
|
|
6,996
|
|
||||
Total available-for-sale securities
|
|
—
|
|
|
63,624
|
|
|
—
|
|
|
63,624
|
|
||||
Derivatives
|
|
|
|
|
|
|
|
|
||||||||
Interest rate swap contract
|
|
—
|
|
|
133
|
|
|
—
|
|
|
133
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Total assets measured at fair value
|
|
$
|
7,816
|
|
|
$
|
65,755
|
|
|
$
|
—
|
|
|
$
|
73,571
|
|
|
|
December 31, 2016
|
||||||||||||||
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Assets:
|
|
|
|
|
|
|
|
|
||||||||
Cash Equivalents
|
|
|
|
|
|
|
|
|
||||||||
Money market funds
|
|
$
|
9,635
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
9,635
|
|
Commercial paper
|
|
—
|
|
|
3,999
|
|
|
—
|
|
|
3,999
|
|
||||
Total cash equivalents
|
|
9,635
|
|
|
3,999
|
|
|
—
|
|
|
13,634
|
|
||||
Available-for-Sale Securities
|
|
|
|
|
|
|
|
|
||||||||
Certificates of deposit
(1)
|
|
—
|
|
|
22,820
|
|
|
—
|
|
|
22,820
|
|
||||
Corporate bonds
|
|
—
|
|
|
6,922
|
|
|
—
|
|
|
6,922
|
|
||||
U.S. government bonds
|
|
—
|
|
|
2,001
|
|
|
—
|
|
|
2,001
|
|
||||
Total available-for-sale securities
|
|
—
|
|
|
31,743
|
|
|
—
|
|
|
31,743
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Total assets measured at fair value
|
|
$
|
9,635
|
|
|
$
|
35,742
|
|
|
$
|
—
|
|
|
$
|
45,377
|
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities:
|
|
|
|
|
|
|
|
|
||||||||
Derivatives
|
|
|
|
|
|
|
|
|
||||||||
Interest rate swap contract
|
|
$
|
—
|
|
|
$
|
(38
|
)
|
|
$
|
—
|
|
|
$
|
(38
|
)
|
|
|
|
|
|
|
|
|
|
||||||||
Total liabilities measured at fair value
|
|
$
|
—
|
|
|
$
|
(38
|
)
|
|
$
|
—
|
|
|
$
|
(38
|
)
|
|
|
Balance Sheet Classification
|
|
As of
|
||||||
|
|
|
June 30, 2017
|
|
December 31, 2016
|
|||||
Derivatives instruments designated as cash flow hedges:
|
|
|
|
|
|
|
||||
Interest rate swap contract
|
|
Prepaids and other current assets
|
|
$
|
133
|
|
|
$
|
—
|
|
|
|
Accrued liabilities
|
|
—
|
|
|
38
|
|
||
|
|
|
|
$
|
133
|
|
|
$
|
38
|
|
|
|
Statement of Operations Classification
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|||||||||
Derivatives instruments designated as cash flow hedges:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Loss recognized in other comprehensive income before reclassifications
|
|
---
|
|
$
|
(53
|
)
|
|
$
|
(219
|
)
|
|
$
|
(2
|
)
|
|
$
|
(980
|
)
|
Loss reclassified from accumulated other comprehensive income to earnings for the effective portion
|
|
Interest expense
|
|
$
|
(61
|
)
|
|
$
|
(185
|
)
|
|
$
|
(163
|
)
|
|
$
|
(313
|
)
|
Income tax benefit
|
|
Income tax expense
|
|
$
|
20
|
|
|
$
|
71
|
|
|
$
|
54
|
|
|
$
|
120
|
|
|
As of
|
||||||
|
June 30, 2017
|
|
December 31, 2016
|
||||
Finished goods
|
$
|
38,282
|
|
|
$
|
43,130
|
|
Parts and components
|
4,062
|
|
|
3,900
|
|
||
Total inventories
|
$
|
42,344
|
|
|
$
|
47,030
|
|
|
Estimated
Useful Life
(in years)
|
|
As of
|
||||||||
|
|
June 30, 2017
|
|
December 31, 2016
|
|||||||
Automobiles
|
5
|
to
|
6
|
|
$
|
139
|
|
|
$
|
139
|
|
Leasehold improvements
|
4
|
to
|
20
|
|
3,426
|
|
|
3,388
|
|
||
Computer software and equipment
|
3
|
to
|
7
|
|
26,059
|
|
|
25,899
|
|
||
Machinery and equipment
|
3
|
to
|
5
|
|
13,971
|
|
|
13,085
|
|
||
Furniture and fixtures
|
5
|
to
|
20
|
|
2,238
|
|
|
2,238
|
|
||
Work in progress
(1)
|
N/A
|
|
893
|
|
|
768
|
|
||||
Total cost
|
|
|
|
|
46,726
|
|
|
45,517
|
|
||
Accumulated depreciation
|
|
|
|
|
(30,689
|
)
|
|
(28,049
|
)
|
||
Total property, plant and equipment, net
|
|
|
|
|
$
|
16,037
|
|
|
$
|
17,468
|
|
|
Direct
|
|
Retail
|
|
Total
|
||||||
Balance, January 1, 2016
|
$
|
2,113
|
|
|
$
|
58,357
|
|
|
$
|
60,470
|
|
Currency exchange rate adjustment
|
67
|
|
|
3
|
|
|
70
|
|
|||
Business acquisition - measurement period adjustments
|
—
|
|
|
1,348
|
|
|
1,348
|
|
|||
Balance, December 31, 2016
|
2,180
|
|
|
59,708
|
|
|
61,888
|
|
|||
Currency exchange rate adjustment
|
77
|
|
|
(8
|
)
|
|
69
|
|
|||
Balance, June 30, 2017
|
$
|
2,257
|
|
|
$
|
59,700
|
|
|
$
|
61,957
|
|
|
Estimated
Useful Life
(in years)
|
|
As of
|
||||||||
|
|
June 30, 2017
|
|
December 31, 2016
|
|||||||
Indefinite-lived trademarks
|
N/A
|
|
$
|
32,052
|
|
|
$
|
32,052
|
|
||
Definite-lived trademarks
|
10
|
to
|
15
|
|
2,600
|
|
|
2,600
|
|
||
Patents
|
8
|
to
|
24
|
|
31,487
|
|
|
31,487
|
|
||
Customer relationships
|
10
|
to
|
15
|
|
24,700
|
|
|
24,700
|
|
||
|
|
|
|
|
90,839
|
|
|
90,839
|
|
||
Accumulated amortization - definite-lived intangible assets
|
|
|
|
|
(22,673
|
)
|
|
(21,039
|
)
|
||
Other intangible assets, net
|
|
|
|
|
$
|
68,166
|
|
|
$
|
69,800
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Amortization expense
|
$
|
817
|
|
|
$
|
961
|
|
|
$
|
1,634
|
|
|
$
|
1,921
|
|
Remainder of 2017
|
$
|
1,622
|
|
2018
|
3,164
|
|
|
2019
|
3,134
|
|
|
2020
|
3,108
|
|
|
2021
|
3,078
|
|
|
Thereafter
|
22,008
|
|
|
|
$
|
36,114
|
|
|
As of
|
||||||
|
June 30, 2017
|
|
December 31, 2016
|
||||
Payroll and related liabilities
|
$
|
3,833
|
|
|
$
|
4,579
|
|
Other
|
4,913
|
|
|
8,313
|
|
||
Total accrued liabilities
|
$
|
8,746
|
|
|
$
|
12,892
|
|
|
|
Six Months Ended June 30,
|
||||||
|
|
2017
|
|
2016
|
||||
Balance, beginning of period
|
|
$
|
7,450
|
|
|
$
|
8,545
|
|
Accruals
|
|
1,470
|
|
|
1,644
|
|
||
Payments
|
|
(2,269
|
)
|
|
(2,060
|
)
|
||
Balance, end of period
|
|
$
|
6,651
|
|
|
$
|
8,129
|
|
|
Unrealized Loss on Available-for-Sale Securities
|
|
Gain (Loss) on Derivative Securities (Effective Portion)
|
|
Foreign Currency Translation Adjustments
|
|
Accumulated Other Comprehensive Income (Loss)
|
||||||||
Balance, April 1, 2017
|
$
|
(27
|
)
|
|
$
|
95
|
|
|
$
|
(1,114
|
)
|
|
$
|
(1,046
|
)
|
Current period other comprehensive income (loss) before reclassifications
|
(9
|
)
|
|
(53
|
)
|
|
330
|
|
|
268
|
|
||||
Reclassification of amounts to earnings
|
—
|
|
|
41
|
|
|
—
|
|
|
41
|
|
||||
Net other comprehensive income (loss) during period
|
(9
|
)
|
|
(12
|
)
|
|
330
|
|
|
309
|
|
||||
Balance, June 30, 2017
|
$
|
(36
|
)
|
|
$
|
83
|
|
|
$
|
(784
|
)
|
|
$
|
(737
|
)
|
|
Unrealized Loss on Available-for-Sale Securities
|
|
Gain (Loss) on Derivative Securities (Effective Portion)
|
|
Foreign Currency Translation Adjustments
|
|
Accumulated Other Comprehensive Income (Loss)
|
||||||||
Balance, January 1, 2017
|
$
|
(8
|
)
|
|
$
|
(24
|
)
|
|
$
|
(1,185
|
)
|
|
$
|
(1,217
|
)
|
Current period other comprehensive income (loss) before reclassifications
|
(28
|
)
|
|
(2
|
)
|
|
401
|
|
|
371
|
|
||||
Reclassification of amounts to earnings
|
—
|
|
|
109
|
|
|
—
|
|
|
109
|
|
||||
Net other comprehensive income (loss) during period
|
(28
|
)
|
|
107
|
|
|
401
|
|
|
480
|
|
||||
Balance, June 30, 2017
|
$
|
(36
|
)
|
|
$
|
83
|
|
|
$
|
(784
|
)
|
|
$
|
(737
|
)
|
|
Unrealized Gain on Available-for-Sale Securities
|
|
Loss on Derivative Securities (Effective Portion)
|
|
Foreign Currency Translation Adjustments
|
|
Accumulated Other Comprehensive Loss
|
||||||||
Balance, April 1, 2016
|
$
|
2
|
|
|
$
|
(682
|
)
|
|
$
|
(759
|
)
|
|
$
|
(1,439
|
)
|
Current period other comprehensive income (loss) before reclassifications
|
8
|
|
|
(219
|
)
|
|
(110
|
)
|
|
(321
|
)
|
||||
Reclassification of amounts to earnings
|
—
|
|
|
114
|
|
|
—
|
|
|
114
|
|
||||
Net other comprehensive income (loss) during period
|
8
|
|
|
(105
|
)
|
|
(110
|
)
|
|
(207
|
)
|
||||
Balance, June 30, 2016
|
$
|
10
|
|
|
$
|
(787
|
)
|
|
$
|
(869
|
)
|
|
$
|
(1,646
|
)
|
|
Unrealized Gain (Loss) on Available-for-Sale Securities
|
|
Loss on Derivative Securities (Effective Portion)
|
|
Foreign Currency Translation Adjustments
|
|
Accumulated Other Comprehensive Loss
|
||||||||
Balance, January 1, 2016
|
$
|
(16
|
)
|
|
$
|
—
|
|
|
$
|
(1,311
|
)
|
|
$
|
(1,327
|
)
|
Current period other comprehensive income (loss) before reclassifications
|
26
|
|
|
(980
|
)
|
|
442
|
|
|
(512
|
)
|
||||
Reclassification of amounts to earnings
|
—
|
|
|
193
|
|
|
—
|
|
|
193
|
|
||||
Net other comprehensive income (loss) during period
|
26
|
|
|
(787
|
)
|
|
442
|
|
|
(319
|
)
|
||||
Balance, June 30, 2016
|
$
|
10
|
|
|
$
|
(787
|
)
|
|
$
|
(869
|
)
|
|
$
|
(1,646
|
)
|
Quarter Ended
|
|
Number of Shares
|
|
Repurchased Amount
|
|
Average Price Per Share
|
December 31, 2016
|
|
120,996
|
|
$1,957,882
|
|
$16.18
|
March 31, 2017
|
|
218,515
|
|
3,426,959
|
|
15.68
|
Totals-to-Date
|
|
339,511
|
|
$5,384,841
|
|
$15.86
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||
Shares used to calculate basic income per share
|
30,755
|
|
|
31,072
|
|
|
30,734
|
|
|
31,044
|
|
Dilutive effect of outstanding stock options, performance stock units and restricted stock units
|
340
|
|
|
263
|
|
|
376
|
|
|
271
|
|
Shares used to calculate diluted income per share
|
31,095
|
|
|
31,335
|
|
|
31,110
|
|
|
31,315
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||
Stock options
|
7
|
|
|
11
|
|
|
8
|
|
|
11
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||||
Net sales:
|
|
|
|
|
|
|
|
||||||||||
Direct
|
$
|
39,111
|
|
|
$
|
44,940
|
|
|
$
|
113,814
|
|
|
$
|
126,174
|
|
||
Retail
|
37,083
|
|
|
32,911
|
|
|
74,888
|
|
|
71,716
|
|
||||||
Royalty
|
835
|
|
|
678
|
|
|
1,579
|
|
|
1,567
|
|
||||||
Consolidated net sales
|
$
|
77,029
|
|
|
$
|
78,529
|
|
|
$
|
190,281
|
|
|
$
|
199,457
|
|
||
Contribution:
|
|
|
|
|
|
|
|
||||||||||
Direct
|
$
|
2,519
|
|
|
$
|
7,525
|
|
|
$
|
17,852
|
|
|
$
|
28,669
|
|
||
Retail
|
6,097
|
|
|
4,117
|
|
|
8,309
|
|
|
8,061
|
|
||||||
Royalty
|
835
|
|
|
678
|
|
|
1,568
|
|
|
1,548
|
|
||||||
Consolidated contribution
|
$
|
9,451
|
|
|
$
|
12,320
|
|
|
$
|
27,729
|
|
|
$
|
38,278
|
|
||
|
|
|
|
|
|
|
|
||||||||||
Reconciliation of consolidated contribution to income from continuing operations:
|
|
|
|
|
|
|
|
||||||||||
Consolidated contribution
|
$
|
9,451
|
|
|
$
|
12,320
|
|
|
$
|
27,729
|
|
|
$
|
38,278
|
|
||
Amounts not directly related to segments:
|
|
|
|
|
|
|
|
||||||||||
Operating expenses
|
(5,602
|
)
|
—
|
|
(5,747
|
)
|
|
(11,197
|
)
|
|
(12,405
|
)
|
|||||
Other expense, net
|
(127
|
)
|
—
|
|
(582
|
)
|
|
(487
|
)
|
|
(1,118
|
)
|
|||||
Income tax expense
|
(1,156
|
)
|
$
|
—
|
|
(2,295
|
)
|
|
(5,294
|
)
|
|
(9,473
|
)
|
||||
Income from continuing operations
|
$
|
2,566
|
|
|
$
|
3,696
|
|
|
$
|
10,751
|
|
|
$
|
15,282
|
|
|
Three Months Ended June 30,
|
|
Change
|
|||||||||||
|
2017
|
|
2016
|
|
$
|
|
%
|
|||||||
Net sales
|
$
|
77,029
|
|
|
$
|
78,529
|
|
|
$
|
(1,500
|
)
|
|
(1.9
|
)%
|
Cost of sales
|
38,651
|
|
|
36,667
|
|
|
1,984
|
|
|
5.4
|
%
|
|||
Gross profit
|
38,378
|
|
|
41,862
|
|
|
(3,484
|
)
|
|
(8.3
|
)%
|
|||
Operating expenses:
|
|
|
|
|
|
|
|
|||||||
Selling and marketing
|
23,628
|
|
|
24,711
|
|
|
(1,083
|
)
|
|
(4.4
|
)%
|
|||
General and administrative
|
7,315
|
|
|
7,203
|
|
|
112
|
|
|
1.6
|
%
|
|||
Research and development
|
3,586
|
|
|
3,375
|
|
|
211
|
|
|
6.3
|
%
|
|||
Total operating expenses
|
34,529
|
|
|
35,289
|
|
|
(760
|
)
|
|
(2.2
|
)%
|
|||
Operating income
|
3,849
|
|
|
6,573
|
|
|
(2,724
|
)
|
|
(41.4
|
)%
|
|||
Other income (expense):
|
|
|
|
|
|
|
|
|||||||
Interest income
|
175
|
|
|
68
|
|
|
107
|
|
|
|
||||
Interest expense
|
(412
|
)
|
|
(514
|
)
|
|
102
|
|
|
|
||||
Other, net
|
110
|
|
|
(136
|
)
|
|
246
|
|
|
|
||||
Total other expense, net
|
(127
|
)
|
|
(582
|
)
|
|
455
|
|
|
|
||||
Income from continuing operations before income taxes
|
3,722
|
|
|
5,991
|
|
|
(2,269
|
)
|
|
|
||||
Income tax expense
|
1,156
|
|
|
2,295
|
|
|
(1,139
|
)
|
|
|
||||
Income from continuing operations
|
2,566
|
|
|
3,696
|
|
|
(1,130
|
)
|
|
|
||||
Loss from discontinued operations, net of taxes
|
(77
|
)
|
|
(166
|
)
|
|
89
|
|
|
|
||||
Net income
|
$
|
2,489
|
|
|
$
|
3,530
|
|
|
$
|
(1,041
|
)
|
|
|
|
Six Months Ended June 30,
|
|
Change
|
|||||||||||
|
2017
|
|
2016
|
|
$
|
|
%
|
|||||||
Net sales
|
$
|
190,281
|
|
|
$
|
199,457
|
|
|
$
|
(9,176
|
)
|
|
(4.6
|
)%
|
Cost of sales
|
90,158
|
|
|
91,251
|
|
|
(1,093
|
)
|
|
(1.2
|
)%
|
|||
Gross profit
|
100,123
|
|
|
108,206
|
|
|
(8,083
|
)
|
|
(7.5
|
)%
|
|||
Operating expenses:
|
|
|
|
|
|
|
|
|||||||
Selling and marketing
|
61,293
|
|
|
59,890
|
|
|
1,403
|
|
|
2.3
|
%
|
|||
General and administrative
|
14,801
|
|
|
15,434
|
|
|
(633
|
)
|
|
(4.1
|
)%
|
|||
Research and development
|
7,497
|
|
|
7,009
|
|
|
488
|
|
|
7.0
|
%
|
|||
Total operating expenses
|
83,591
|
|
|
82,333
|
|
|
1,258
|
|
|
1.5
|
%
|
|||
Operating income
|
16,532
|
|
|
25,873
|
|
|
(9,341
|
)
|
|
(36.1
|
)%
|
|||
Other income (expense):
|
|
|
|
|
|
|
|
|||||||
Interest income
|
306
|
|
|
122
|
|
|
184
|
|
|
|
||||
Interest expense
|
(856
|
)
|
|
(980
|
)
|
|
124
|
|
|
|
||||
Other, net
|
63
|
|
|
(260
|
)
|
|
323
|
|
|
|
||||
Total other expense, net
|
(487
|
)
|
|
(1,118
|
)
|
|
631
|
|
|
|
||||
Income from continuing operations before income taxes
|
16,045
|
|
|
24,755
|
|
|
(8,710
|
)
|
|
|
||||
Income tax expense
|
5,294
|
|
|
9,473
|
|
|
(4,179
|
)
|
|
|
||||
Income from continuing operations
|
10,751
|
|
|
15,282
|
|
|
(4,531
|
)
|
|
|
||||
Loss from discontinued operations, net of taxes
|
(1,169
|
)
|
|
(308
|
)
|
|
(861
|
)
|
|
|
||||
Net income
|
$
|
9,582
|
|
|
$
|
14,974
|
|
|
$
|
(5,392
|
)
|
|
|
|
Three Months Ended June 30,
|
|
Change
|
|||||||||||
|
2017
|
|
2016
|
|
$
|
|
%
|
|||||||
Direct net sales:
|
|
|
|
|
|
|
|
|||||||
Cardio products
(1)
|
$
|
34,631
|
|
|
$
|
41,434
|
|
|
$
|
(6,803
|
)
|
|
(16.4
|
)%
|
Strength products
(2)
|
4,480
|
|
|
3,506
|
|
|
974
|
|
|
27.8
|
%
|
|||
|
39,111
|
|
|
44,940
|
|
|
(5,829
|
)
|
|
(13.0
|
)%
|
|||
Retail net sales:
|
|
|
|
|
|
|
|
|||||||
Cardio products
(1)
|
27,821
|
|
|
23,506
|
|
|
4,315
|
|
|
18.4
|
%
|
|||
Strength products
(2)
|
9,262
|
|
|
9,405
|
|
|
(143
|
)
|
|
(1.5
|
)%
|
|||
|
37,083
|
|
|
32,911
|
|
|
4,172
|
|
|
12.7
|
%
|
|||
|
|
|
|
|
|
|
|
|||||||
Royalty
|
835
|
|
|
678
|
|
|
157
|
|
|
23.2
|
%
|
|||
|
$
|
77,029
|
|
|
$
|
78,529
|
|
|
$
|
(1,500
|
)
|
|
(1.9
|
)%
|
|
Six Months Ended June 30,
|
|
Change
|
|||||||||||
|
2017
|
|
2016
|
|
$
|
|
%
|
|||||||
Direct net sales:
|
|
|
|
|
|
|
|
|||||||
Cardio products
(1)
|
$
|
103,334
|
|
|
$
|
118,526
|
|
|
$
|
(15,192
|
)
|
|
(12.8
|
)%
|
Strength products
(2)
|
10,480
|
|
|
7,648
|
|
|
2,832
|
|
|
37.0
|
%
|
|||
|
113,814
|
|
|
126,174
|
|
|
(12,360
|
)
|
|
(9.8
|
)%
|
|||
Retail net sales:
|
|
|
|
|
|
|
|
|||||||
Cardio products
(1)
|
56,860
|
|
|
53,459
|
|
|
3,401
|
|
|
6.4
|
%
|
|||
Strength products
(2)
|
18,028
|
|
|
18,257
|
|
|
(229
|
)
|
|
(1.3
|
)%
|
|||
|
74,888
|
|
|
71,716
|
|
|
3,172
|
|
|
4.4
|
%
|
|||
|
|
|
|
|
|
|
|
|||||||
Royalty
|
1,579
|
|
|
1,567
|
|
|
12
|
|
|
0.8
|
%
|
|||
|
$
|
190,281
|
|
|
$
|
199,457
|
|
|
$
|
(9,176
|
)
|
|
(4.6
|
)%
|
|
|
|
|
|
|
|
|
|||||||
(1)
Cardio products include: Max Trainer
®
,
TreadClimber
®
, HVT™, Zero Runner
®
, treadmills, exercise bikes and ellipticals.
|
||||||||||||||
(2)
Strength products include: home gyms, selectorized dumbbells, kettlebell weights and accessories.
|
Dollars in thousands
|
Three Months Ended June 30,
|
|
Change
|
||||
|
2017
|
|
2016
|
|
$
|
|
%
|
Selling and marketing
|
$23,628
|
|
$24,711
|
|
$(1,083)
|
|
(4.4)%
|
As % of net sales
|
30.7%
|
|
31.5%
|
|
|
|
|
Dollars in thousands
|
Six Months Ended June 30,
|
|
Change
|
||||
|
2017
|
|
2016
|
|
$
|
|
%
|
Selling and marketing
|
$61,293
|
|
$59,890
|
|
$1,403
|
|
2.3%
|
As % of net sales
|
32.2%
|
|
30.0%
|
|
|
|
|
Dollars in thousands
|
Three Months Ended June 30,
|
|
Change
|
||||
|
2017
|
|
2016
|
|
$
|
|
%
|
Media advertising
|
$12,587
|
|
$12,505
|
|
$82
|
|
0.7%
|
Dollars in thousands
|
Six Months Ended June 30,
|
|
Change
|
||||
|
2017
|
|
2016
|
|
$
|
|
%
|
Media advertising
|
$32,590
|
|
$30,014
|
|
$2,576
|
|
8.6%
|
Dollars in thousands
|
Three Months Ended June 30,
|
|
Change
|
||||
|
2017
|
|
2016
|
|
$
|
|
%
|
General and administrative
|
$7,315
|
|
$7,203
|
|
$112
|
|
1.6%
|
As % of net sales
|
9.5%
|
|
9.2%
|
|
|
|
|
Dollars in thousands
|
Six Months Ended June 30,
|
|
Change
|
||||
|
2017
|
|
2016
|
|
$
|
|
%
|
General and administrative
|
$14,801
|
|
$15,434
|
|
$(633)
|
|
(4.1)%
|
As % of net sales
|
7.8%
|
|
7.7%
|
|
|
|
|
Dollars in thousands
|
Three Months Ended June 30,
|
|
Change
|
||||
|
2017
|
|
2016
|
|
$
|
|
%
|
Research and development
|
$3,586
|
|
$3,375
|
|
$211
|
|
6.3%
|
As % of net sales
|
4.7%
|
|
4.3%
|
|
|
|
|
Dollars in thousands
|
Six Months Ended June 30,
|
|
Change
|
||||
|
2017
|
|
2016
|
|
$
|
|
%
|
Research and development
|
$7,497
|
|
$7,009
|
|
$488
|
|
7.0%
|
As % of net sales
|
3.9%
|
|
3.5%
|
|
|
|
|
Dollars in thousands
|
Three Months Ended June 30,
|
|
Change
|
||||
|
2017
|
|
2016
|
|
$
|
|
%
|
Income tax expense
|
$1,156
|
|
$2,295
|
|
$(1,139)
|
|
(49.6)%
|
Effective tax rate
|
31.1%
|
|
38.3%
|
|
|
|
|
Dollars in thousands
|
Six Months Ended June 30,
|
|
Change
|
||||
|
2017
|
|
2016
|
|
$
|
|
%
|
Income tax expense
|
$5,294
|
|
$9,473
|
|
$(4,179)
|
|
(44.1)%
|
Effective tax rate
|
33.0%
|
|
38.3%
|
|
|
|
|
Item 3.
|
Quantitative and Qualitative Disclosures About Market Risk
|
Item 1.
|
Legal Proceedings
|
|
|
|
|
|
|
Exhibit No.
|
|
Description
|
|
|
|
|
Certification of Chief Executive Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended.
|
|
|
|
|
|
Certification of Chief Financial Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended.
|
|
|
|
|
|
Certification of Chief Executive Officer and Chief Financial Officer pursuant to Rule 13a-14(b) of the Securities and Exchange Act of 1934, as amended, and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
|
|
|
101
|
|
The following financial statements from Nautilus, Inc.'s quarterly report on Form 10-Q for the three and six months ended June 30, 2017 formatted in XBRL (eXtensible Business Reporting Language): (i) Condensed Consolidated Balance Sheets (unaudited), (ii) Condensed Consolidated Statements of Operations (unaudited), (iii) Condensed Consolidated Statements of Comprehensive Income (unaudited), (iv) Condensed Consolidated Statements of Cash Flows (unaudited) and (v) Notes to Condensed Consolidated Financial Statements (unaudited).
|
|
|
NAUTILUS, INC.
|
|
|
|
(Registrant)
|
|
|
|
|
|
August 3, 2017
|
|
By:
|
/
S
/ Bruce M. Cazenave
|
Date
|
|
|
Bruce M. Cazenave
|
|
|
|
Chief Executive Officer
(Principal Executive Officer)
|
|
|
NAUTILUS, INC.
|
|
|
|
(Registrant)
|
|
|
|
|
|
August 3, 2017
|
|
By:
|
/
S
/ Sidharth Nayar
|
Date
|
|
|
Sidharth Nayar
|
|
|
|
Chief Financial Officer
(Principal Financial and Accounting Officer)
|
1 Year Nautilus Chart |
1 Month Nautilus Chart |
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