talk about a total loss of interest!!! Not a single message
either here or on the yahoo thread on the day that DFXI
announces its quarterly report. Anyway, here it is:
Related Quotes
DFXI
17 5/16
+1/2
delayed 20 mins - disclaimer
Monday July 26, 8:14 am Eastern Time
Company Press Release
Direct Focus, Inc. Posts 107 Percent Sales Gain
Excluding Settlement Charge, Net Income up 100 Percent
VANCOUVER, Wash.--(BUSINESS WIRE)--July 26, 1999--Direct Focus, Inc. (Nasdaq:DFXI - news) today reported that net income for the second quarter ended June 30, 1999 doubled to $4.0 million from the same 1998 period on 107 percent higher sales before a one-time charge of $2.6 million, after tax, for litigation settlement.
Sales for the quarter rose to $25.2 million compared to $12.2 million a year ago.
Excluding the one-time charge, net income of $4.0 million was 100 percent higher than $2.0 million in the comparable year ago period. On a per diluted share basis, earnings, before the one-time charge, were $0.38 -- 90 percent higher than $0.20 recorded in the 1998 second quarter. The diluted per share effect of the settlement was $0.25, lowering diluted earnings per share to $0.13.
Working capital, after the settlement charge, was $27.0 million at June 30, 1999 compared to $15.7 million at December 31, 1998. The company's cash and cash equivalent position at the end of the quarter was $27.3 million, 44 percent higher than at fiscal year end.
''We're extremely pleased at the ongoing sales and earnings growth of the company,'' said Brian Cook, president and chief executive officer of Direct Focus, Inc. ''The Nautilus operation continued to make progress in the second quarter, showing a 19 percent improvement over the first quarter with a net loss of $157,000 on $3.7 million in sales.''
Cook said that the Internet is emerging as a significant sales avenue for the company's home fitness equipment product line. In the second quarter, 14 percent of total leads were generated via the Internet, which resulted in 21 percent of sales from leads generated in the second quarter.
''With our direct marketing skills, the integration of television commercials, infomercials and the Internet is proving to be powerful. This year, as a percentage of total sales, Internet sales have increased over 100 percent faster than any other channel,'' Cook said.
For the six months ended June 30, 1999, sales of $51.4 million gained 121 percent from $23.3 million in the same 1998 period. In addition to increasing sales for the company's line of Bowflex home fitness equipment, the Nautilus operation accounted for 27 percent of the increase in sales, or $7.7 million, since its acquisition by Direct Focus in January 1999.
Direct Focus currently markets three lines of products -- Bowflex home fitness equipment, Nautilus 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.''
DIRECT FOCUS, INC.
Three Months Ended June 30,
1999 1998
-------------------- --------------------
NET SALES $ 25,244,216 $ 12,236,449
COST OF SALES 7,362,016 29.2% 2,652,148 21.7%
-------------------- --------------------
Gross profit 17,882,200 70.8% 9,584,301 78.3%
-------------------- --------------------
EXPENSES:
Selling and marketing 9,920,772 39.3% 5,529,622 45.2%
General and
administrative 1,326,408 5.3% 698,547 4.7%
Royalty expense 636,008 2.5% 342,493 2.8%
Litigation settlement 4,000,000 15.8% --
-------------------- --------------------
Total operating expenses 15,883,188 62.9% 6,570,662 53.7%
-------------------- --------------------
OPERATING INCOME
- before litigation
charge 5,999,012 23.8% 3,013,639 24.6%
OPERATING INCOME 1,999,012 7.9% 3,013,639 24.6%
-------------------- --------------------
OTHER INCOME (EXPENSE):
Interest income 175,245 0.7% 91,821 0.8%
State business tax and
other - net (20,408) -0.1% (46,709) -0.4%
-------------------- --------------------
Total other expense - net 154,837 0.6% 45,112 0.4%
-------------------- --------------------
INCOME BEFORE INCOME TAXES 2,153,849 8.5% 3,058,751 25.0%
-------------------- --------------------
INCOME TAX EXPENSE 754,790 1,077,240
-------------------- --------------------
NET INCOME
- before litigation
charge 3,999,059 15.8% 1,981,511 16.2%
NET INCOME $1,399,059 5.5% $1,981,511 16.2%
-------------------- --------------------
EARNINGS PER SHARE
- before litigation
charge
Basic $ 0.39 $ 0.21
--------- ---------
Diluted 0.38 0.20
--------- ---------
EARNINGS PER SHARE
Basic $ 0.14 $ 0.21
--------- ---------
Diluted 0.13 0.20
--------- ---------
Basic shares
outstanding 10,156,914 9,250,957
Diluted shares
outstanding 10,454,819 9,719,324
Six Months Ended June 30,
1999 1998
-------------------- --------------------
NET SALES $ 51,356,746 $ 23,287,748
COST OF SALES 14,751,212 28.7% 5,206,293 22.4%
-------------------- --------------------
Gross profit 36,605,534 71.3% 18,081,455 77.6%
-------------------- --------------------
EXPENSES:
Selling and marketing 20,009,526 39.0% 9,342,826 40.1%
General and
administrative 2,427,780 4.7% 1,224,724 5.3%
Royalty expense 1,261,929 2.5% 648,564 2.8%
Litigation settlement 4,000,000 7.8% --
-------------------- --------------------
Total operating expenses 27,699,235 53.9% 11,216,114 48.2%
-------------------- --------------------
OPERATING INCOME
- before litigation
charge 12,906,299 25.1% 6,865,341 29.5%
OPERATING INCOME 8,906,299 17.3% 6,865,341 29.5%
-------------------- --------------------
OTHER INCOME (EXPENSE):
Interest income 237,168 0.5% 167,350 0.7%
State business tax and
other - net (98,522) -0.2% (87,753) -0.4%
-------------------- --------------------
Total other expense - net 138,646 0.3% 79,597 0.3%
INCOME BEFORE INCOME TAXES 9,044,945 17.6% 6,944,938 29.8%
-------------------- --------------------
INCOME TAX EXPENSE 3,166,673 2,392,398
-------------------- --------------------
NET INCOME
- before litigation
charge 8,478,272 16.5% 4,552,540 19.5%
NET INCOME $ 5,878,272 11.4% $ 4,552,540 19.5%
-------------------- --------------------
EARNINGS PER SHARE
- before litigation
charge
Basic $ 0.86 $ 0.49
--------- ---------
Diluted 0.84 0.47
--------- ---------
EARNINGS PER SHARE
Basic $ 0.60 $ 0.49
--------- ---------
Diluted 0.58 0.47
--------- ---------
Basic shares
outstanding 9,839,350 9,250,957
Diluted shares
outstanding 10,130,464 9,719,324
DIRECT FOCUS, INC.
June 30, December 31,
1999 1998
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 27,317,950 $ 18,910,675
Trade receivables ( less
allowance for doubtful accounts of:
1999, $543,386 and 1998, $40,000) 3,499,433 218,207
Inventories 7,937,828 2,614,673
Prepaid expenses and other assets 2,846,686 378,409
Current deferred income tax asset 979,553 215,737
------------ ------------
Total current assets 42,581,450 22,337,701
------------ ------------
FURNITURE AND EQUIPMENT:
Equipment 10,695,323 1,822,205
Furniture and fixtures 487,692 459,297
------------ ------------
11,183,015 2,281,502
Accumulated depreciation (880,690) (438,790)
------------ ------------
Total furniture and equipment - net 10,302,325 1,842,712
------------ ------------
OTHER ASSETS (Less accumulated
amortization of:
1999, $162,881 and 1998, $49,967) 4,438,558 192,859
------------ ------------
TOTAL $ 57,322,333 $ 24,373,272
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Trade payables $ 5,620,911 $ 3,602,074
Income taxes payable -- 504,775
Accrued liabilities 4,851,988 1,851,253
Royalty payable to stockholders 591,992 548,211
Customer deposits 488,288 148,937
Accrued litigation settlement cost 4,000,000 --
------------ ------------
Total current Liabilities 15,553,179 6,655,250
------------ ------------
LONG-TERM DEFERRED TAX LIABILITY 118,790 66,880
------------ ------------
STOCKHOLDERS' EQUITY:
Common stock - authorized, 50,000,000
shares of no par value;
outstanding, 1999: 10,611,432
shares, 1998: 9,448,523 shares 21,686,578 3,565,628
Retained earnings 19,963,786 14,085,514
------------ ------------
Total stockholders' equity 41,650,364 17,651,142
------------ ------------
TOTAL $ 57,322,333 $ 24,373,272
============ ============
www.directfocusinc.com
--------------------------------------------------------------------------------
Contact:
Direct Focus, Inc.
Rod W. Rice, 800/371-3363
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