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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT: JULY 9, 2003
(DATE OF EARLIEST EVENT REPORTED)
THE NAUTILUS GROUP, INC.
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(Exact name of registrant as specified in its charter)
Washington 000-25867 94-3002667
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(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
1400 NE 136th Avenue
Vancouver, Washington 98684
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(Address of principal executive offices and zip code)
(360) 694-7722
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(Registrant's telephone number, including area code)
Not Applicable
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(Former name or former address, if changed since last report)
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THE NAUTILUS GROUP, INC.
FORM 8-K
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(C) EXHIBITS
The following exhibit is furnished herewith and this list constitutes
the exhibit index:
Exhibit No. Description
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99 The Nautilus Group, Inc. Press Release, dated
July 9, 2003, revising second quarter and 2003
earnings estimates.
ITEM 9. REGULATION FD DISCLOSURE
On July 9, 2003, The Nautilus Group, Inc. issued a press release
revising second quarter and 2003 earnings estimates. A copy of the press release
is attached as Exhibit 99.
This information set forth under "ITEM 9. REGULATION FD DISCLOSURE" is
intended to be furnished under "ITEM 12. RESULTS OF OPERATIONS AND FINANCIAL
CONDITION" in accordance with SEC Release No. 33-8216.
The information in this Form 8-K and the Exhibit attached hereto shall
not be deemed "filed" for purposes of Section 18 of the Securities Act of 1934,
nor shall it be deemed incorporated by reference in any filing under the
Securities Act of 1933, except as shall be expressly set forth by specific
reference to such filing.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
THE NAUTILUS GROUP, INC.
(Registrant)
July 9, 2003 By: /s/ Rod W. Rice
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(Date) Rod W. Rice, Chief Financial Officer,
Treasurer and Secretary
2
EXHIBIT 99
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THE NAUTILUS GROUP [LOGO]
FOR IMMEDIATE RELEASE
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CONTACTS: The Nautilus Group, Inc. Investor Relations Inquiries:
Rod Rice John Mills
Chief Financial Officer Integrated Corporate Relations, Inc.
360-694-7722 562-256-7049--203-222-9013
NAUTILUS GROUP REVISES SECOND QUARTER AND 2003 GUIDANCE
VANCOUVER, WA - JULY 9, 2003 - The Nautilus Group, Inc. (NYSE: NLS), a leading
marketer, developer, and manufacturer of branded health and fitness products,
today announced that based on preliminary information and current market
conditions, it is revising its earnings expectations for the second quarter and
the year.
The Company expects to report second quarter net sales in the range of $95 to
$100 million with a corresponding earnings per share range of $0.13 to $0.15.
These estimates are preliminary and remain subject to final revisions.
For the year, the Company's revised 2003 revenue estimate ranges from $450 to
$470 million with corresponding earnings per share estimate ranging from $1.00
to $1.10. In terms of revised earnings on a quarterly basis for 2003, the
Company expects the third quarter will represent approximately 18% to 20% of
earnings. The Company expects operating cash flow for the year to be
approximately $35 million to $40 million.
"A challenging business environment, Bowflex product line competition, and
lackluster consumer spending continue to affect our business," began Brian Cook,
Chief Executive Officer. "In the first and second quarters of this year,
increased competition has had an adverse affect on direct sales of the Bowflex
product line and soft consumer spending has negatively impacted both our direct
and commercial/retail divisions. However, we remain very excited by
results-to-date for the TreadClimber(R), and the continued success of our
Bowflex retail launch."
Mr. Cook added, "While we are encouraged with many areas of our business, our
success at this point does not offset the adverse environment and competition
with regard to the Bowflex we are currently encountering. Nautilus maintains the
strongest financial position in our industry, combined with our new initiatives
this year and the long-term outlook for our portfolio of leading health and
fitness brands, we expect to remain one of the branded health and fitness
product leaders for years to come."
The Nautilus Group will report actual second quarter results on July 30, 2003,
at which time additional commentary and details will be provided.
The Nautilus Group will host a conference call on July 30, 2003 to discuss its
second quarter financial results at 2:00 PM Pacific (5:00 PM Eastern). The
earnings release will be broadcast live over the Internet hosted at
http://www.nautilusgroup.com/ir/events.asp under "Investor Relations/Events
Calendar" and will be archived online within one hour of the completion of the
conference call. In addition, you may call 800-218-9073 if in North America.
International callers will dial 303-262-2141. Participating in the call will be
Brian Cook, Chief Executive Officer, Kevin Lamar, President, and Rod Rice, Chief
Financial Officer.
ABOUT THE NAUTILUS GROUP
The Nautilus Group, Inc. is a leading marketer, developer, and manufacturer of
branded health and fitness products sold under such well-known names as
Nautilus, Bowflex, Schwinn and StairMaster. The Company currently markets its
Bowflex and TreadClimber home fitness equipment and Nautilus Sleep Systems
through its direct-marketing channel, using an effective combination of
television commercials, infomercials, response mailings, the Internet, and
inbound/outbound call centers. The Company sells its Nautilus, Schwinn and
StairMaster commercial fitness equipment through its sales force and selected
dealers to health clubs, government agencies, hotels, corporate fitness centers,
colleges, universities, and assisted living facilities. The Nautilus Group also
markets and sells a complete line of consumer fitness equipment, under its
Nautilus, Schwinn and StairMaster brands, through a network of specialty
dealers, distributors, and retailers worldwide. The Company is headquartered in
Vancouver, Washington. The Nautilus Group is located on the Web at
www.nautilusgroup.com.
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From time to time, The Nautilus Group may issue forward-looking statements
relating to its products and services, including statements regarding its direct
and commercial/retail segment businesses. Factors that could affect The Nautilus
Group's actual results include availability of media time and fluctuating
advertising rates, a decline in consumer spending due to unfavorable economic
conditions, expiration of important patents, its reliance on a limited product
line, its ability to effectively develop, market, and sell future products, its
ability to effectively identify and negotiate any future strategic acquisitions,
its ability to integrate any acquired businesses into its operations,
unpredictable events and circumstances relating to international operations
including its use of foreign manufacturers, government regulatory action, and
general economic conditions. Please refer to our reports and filings with the
Securities and Exchange Commission, including our most recent annual report on
Form 10-K and quarterly reports on Form 10-Q, for a further discussion of these
risks and uncertainties. We also caution you not to place undue reliance on
forward-looking statements, which speak only as of the date they are made. We
undertake no obligation to update publicly any forward-looking statements to
reflect new information, events or circumstances after the date they were made
or to reflect the occurrence of unanticipated events.