Nautilus Inc. (NYSE:NLS) reported higher net income for the fourth quarter 2012, thanks to an increase in sales in its direct channel, which offset a drop in net sales in its retail segment.
The Vancouver, Wash.-based home fitness equipment manufacturer saw its revenue rise to $65 million, up 8.4 percent from a year ago.
For the fourth quarter of 2012, the company reported a net income (including discontinued operation) of $13.6 million, or $0.44 per diluted share, compared to $3.2 million, or $0.10 per diluted share, for the same period in 2011.
“We are pleased to report strong fourth quarter and full year 2012 financial results,” said CEO Bruce M. Cazneave in a statement.
For the full year ended December 31, 2012, net sales were $193.9 million, a 7.5 percent increase compared to $180.4 million in 2011. Income from continuing operations in 2012 was $10.6 million, compared to $2.5 million the previous year. Income per diluted share from continuing operations in 2012 was $0.34, compared to $0.08 last year.
For the full year 2012, it reported net income (including discontinued operation) of $16.9 million, or $0.55 per diluted share, compared to net income of $1.4 million, or $0.05 per diluted share, for the same period last year.
The increase was due mostly to increased net sales in the direct segment, which were up to $41.4 million in the fourth quarter 2012, a 30.7 percent increased from the same quarter last year. Income for this segment also improved to $6.5 for the fourth quarter 2012, compared to $1.6 million for the fourth quarter 2011.
Net sales for the retail segment were $21.8 million in the fourth quarter 2012, compared with $26.5 million in the fourth quarter of 2011. The company said this was due to the soft retail environment for fitness equipment.