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08.09.99
DIRECT FOCUS, INC. PLANS TO BUY BACK UP TO $8 MILLION IN STOCK
DIRECT FOCUS, INC. PLANS TO BUY BACK UP TO $8 MILLION IN STOCK
DIRECT FOCUS, INC. PLANS TO BUY BACK UP TO $8 MILLION IN STOCK
VANCOUVER, WA...August 9, 1999...Direct Focus, Inc. (Nasdaq: DFXI), a marketing company, said today that its board of directors approved a stock buy back program authorizing purchase of up to $8 million of the company's common stock over the next 90 days.
"Given our June 30, 1999 cash position of $27.3 million and a trailing four quarters earnings of $1.64 per share, excluding a one-time litigation charge taken in the second quarter, we believe that our stock is greatly undervalued, which makes the buy back a good use of the company's capital resources," said Brian Cook, president of Direct Focus. The stock closed at $15.937 on August 7, 1999.
Cook said that the buy back supports management's belief in the company's business plan and the company's desire to maximize shareholder value. "In addition to our $27.3 million cash position, we generated $8 million in operating cash flow in the first half of 1999 and have an unused credit line of $5 million," he pointed out.
Direct Focus currently markets three lines of products - Nautilus fitness equipment, Bowflex home fitness equipment, and Nautilus sleep systems - directly to customers via advertising, on television, printed media and the Internet.
This press release contains forward-looking statements relating to anticipated revenues, net income, earnings and the development of the company's products and services, including statements regarding its Nautilus business. Factors that could affect the company's actual results include its reliance on a limited product line, market acceptance of its existing and future products, growth management challenges and difficulties integrating the company's Nautilus operations. A more detailed description of certain factors that could affect actual results include, but are not limited to, those discussed in the company's registration statement on Form S-1 in the section entitled "Risk Factors."
"Given our June 30, 1999 cash position of $27.3 million and a trailing four quarters earnings of $1.64 per share, excluding a one-time litigation charge taken in the second quarter, we believe that our stock is greatly undervalued, which makes the buy back a good use of the company's capital resources," said Brian Cook, president of Direct Focus. The stock closed at $15.937 on August 7, 1999.
Cook said that the buy back supports management's belief in the company's business plan and the company's desire to maximize shareholder value. "In addition to our $27.3 million cash position, we generated $8 million in operating cash flow in the first half of 1999 and have an unused credit line of $5 million," he pointed out.
Direct Focus currently markets three lines of products - Nautilus fitness equipment, Bowflex home fitness equipment, and Nautilus sleep systems - directly to customers via advertising, on television, printed media and the Internet.
This press release contains forward-looking statements relating to anticipated revenues, net income, earnings and the development of the company's products and services, including statements regarding its Nautilus business. Factors that could affect the company's actual results include its reliance on a limited product line, market acceptance of its existing and future products, growth management challenges and difficulties integrating the company's Nautilus operations. A more detailed description of certain factors that could affect actual results include, but are not limited to, those discussed in the company's registration statement on Form S-1 in the section entitled "Risk Factors."