The Nautilus Group Inc. (NYSE: NLS) has revised its preliminary first quarter financial statement and annual outlook for 2003 downward to take "a more cautious stand," said CEO Brian Cook.
The statement now includes estimated sales for the quarter of $124 million to $129 million, with corresponding earnings per share range of $0.39 to $0.42.
For the year, the Vancouver, Wash.-based, company presented revised 2003 revenue estimate ranges from $525 million to $545 million with corresponding earnings per share estimate ranging from $1.60 to $1.70. This compares to previous guidance of $580 million to $600 million in revenue and earnings of $2.50 to $2.60 per share, with gross margins of 54 percent to 56 percent. The company said it expects operating cash flow for 2003 will be approximately $55 million to $65 million, compared to previous cash flow guidance of $85 million to $95 million.
"Due to the challenging business environment, we would rather take a more cautious stand on our outlook for fiscal 2003," Cook said. "Even though we are optimistic about the future, we believe it is prudent to be cautious with our guidance for the year, as a challenging business environment and macro forces beyond our control may continue to have adverse effects on our results."
The company said it expects the second quarter will represent approximately 16 percent to 18 percent of yearly earnings; the third quarter will represent approximately 24 percent to 26 percent of earnings; and the fourth quarter is projected to represent approximately 33 percent to 35 percent of earnings for 2003.
Nautilus will report actual first quarter results on April 30, at which time additional commentary will be provided. All estimates are preliminary and remain subject to revisions. A conference call is scheduled for 2 p.m. Pacific. (www.nautilusgroup.com/ir/evnts.asp).