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02.22.99
DIRECT FOCUS, INC. 1998 NET INCOME RISES 421 PERCENT TO A RECORD $12.5 MILLION
DIRECT FOCUS, INC. 1998 NET INCOME RISES 421 PERCENT TO A RECORD $12.5 MILLION
DIRECT FOCUS, INC. 1998 NET INCOME RISES 421 PERCENT TO A RECORD $12.5 MILLION
VANCOUVER, WASHINGTON...February 22, 1999...Direct Focus, Inc. (Toronto: DFX), a direct marketing company, today reported record sales, net income and earnings for the year ended December 31, 1998 with the fourth quarter contributing the strongest results in the company's history.
For the full year, sales rose to $57.3 million, up 188 percent from $19.9 million in the prior year. Higher sales and a 4 percent improvement in gross margins produced net income of $12.5 million compared to $2.4 million in 1997. Earnings per share (diluted) for the year jumped 396 percent to $1.28 from $0.25 last year on virtually the same number of shares outstanding.
In the fourth quarter ended December 31, 1998, Direct Focus posted sales of $18.8 million, 158 percent higher than $7.3 million in same 1997 period. Net income rose 233 percent to $5.0 million, or $0.51 per share (diluted) from $1.5 million, or $0.15 per share, in the same 1997 quarter.
"It's been a tremendous year on all fronts," said Brian Cook, president and chief executive officer of Direct Focus. "Financial performance was dramatically improved and we took major steps in 1998 to solidly position the company in the direct marketing business."
Cook noted that sales increased significantly in each quarter of 1998 as a result of the company's continued expansion of the direct marketing campaign featuring its Bowflex home fitness equipment. "With higher sales came improved operating leverage and stronger gross margins that combined to increase earnings, on a percentage basis, at nearly twice the rate of sales growth," he said. Net income for the year was approximately 22 percent of sales compared to 12 percent in the 1997 twelve months.
On January 4, 1999, Direct Focus finalized the acquisition of substantially all the assets of Nautilus International, Inc. from Delta Woodside Industries, Inc. (NYSE: DLW), including existing manufacturing, warehousing and office facilities located in Independence, Virginia. Direct Focus paid $16 million in cash and assumed a $2.8 million in liabilities, subject to the final adjustment of working capital items.
For the full year, sales rose to $57.3 million, up 188 percent from $19.9 million in the prior year. Higher sales and a 4 percent improvement in gross margins produced net income of $12.5 million compared to $2.4 million in 1997. Earnings per share (diluted) for the year jumped 396 percent to $1.28 from $0.25 last year on virtually the same number of shares outstanding.
In the fourth quarter ended December 31, 1998, Direct Focus posted sales of $18.8 million, 158 percent higher than $7.3 million in same 1997 period. Net income rose 233 percent to $5.0 million, or $0.51 per share (diluted) from $1.5 million, or $0.15 per share, in the same 1997 quarter.
"It's been a tremendous year on all fronts," said Brian Cook, president and chief executive officer of Direct Focus. "Financial performance was dramatically improved and we took major steps in 1998 to solidly position the company in the direct marketing business."
Cook noted that sales increased significantly in each quarter of 1998 as a result of the company's continued expansion of the direct marketing campaign featuring its Bowflex home fitness equipment. "With higher sales came improved operating leverage and stronger gross margins that combined to increase earnings, on a percentage basis, at nearly twice the rate of sales growth," he said. Net income for the year was approximately 22 percent of sales compared to 12 percent in the 1997 twelve months.
On January 4, 1999, Direct Focus finalized the acquisition of substantially all the assets of Nautilus International, Inc. from Delta Woodside Industries, Inc. (NYSE: DLW), including existing manufacturing, warehousing and office facilities located in Independence, Virginia. Direct Focus paid $16 million in cash and assumed a $2.8 million in liabilities, subject to the final adjustment of working capital items.
| DIRECT FOCUS, INC. FINANCIAL HIGHLIGHTS | ||||
| 3 Months Ended December 31 | 12 Months Ended December 31 | |||
| 1998 | 1997 | 1998 | 1997 | |
| Net Sales | $18,809,000 | $7,251,000 | $57,297,000 | $19,886,000 |
| Gross Profit | 15,007,000 | 5,326,000 | 44,855,000 | 14,772,000 |
| Operating Income | 7,235,000 | 1,821,000 | 18,899,000 | 3,762,000 |
| Net Income | 4,751,000 | 1,265,000 | 12,485,000 | 2,516,000 |
| Basic Earnings Per Share | 0.51 | 0.14 | 1.34 | 0.28 |
| Diluted Earnings Per Share | 0.48 | 0.13 | 1.28 | 0.26 |
| Basic Shares Outstanding | 9,336,525 | 8,986,655 | 9,336,525 | 8,986,655 |
| Diluted Shares Outstanding | 9,725,958 | 9,510,868 | 9,725,958 | 9,510,868 |