Tuesday January 22, 4:01 pm Eastern Time
Press Release
SOURCE: Direct Focus
Direct Focus Announces Record Fourth Quarter and Year-End Results
Quarterly Sales Up 77% and Earnings Up 53% from Previous Year
VANCOUVER, Wash.--(BUSINESS WIRE)--Jan. 22, 2002--Direct Focus, Inc. (Nasdaq:DFXI - news), a leading marketing company for fitness and healthy lifestyle products, today announced its results for the quarter and year ended December 31, 2001.
For the fourth quarter of 2001, Direct Focus reported net sales of $125.3 million, an increase of 77% from $70.6 million for the fourth quarter of 2000. eCommerce sales for the fourth quarter were $18.7 million, up 36% from $13.7 million for the same period of 2000. For 2001, the Company reported net sales of $363.9 million, up 62% from $223.9 million for 2000.
Commercial and retail sales represented 35% of total sales in the fourth quarter, up from 13% in the same period of 2000. The change in sales mix is the result of the acquisition of Schwinn Fitness.
Net income for the fourth quarter of 2001 was $20.5 million or $0.57 per diluted share, up 53% from $13.5 million or $0.37 per diluted share for the same period of 2000. Net income for 2001 was $66.6 million, or $1.85 per diluted share, up 60% from $41.6 million or $1.16 per diluted share for 2000.
The Company recently announced that it has entered into an agreement to acquire substantially all of the assets of StairMaster Sports/Medical, Inc. (``StairMaster'') for approximately $25 million in cash. The sale is subject to bankruptcy court approval and, if approved, is expected to close during the first quarter of 2002. At the end of 2001, Direct Focus had cash and short-term investments of $51.7 million.
``We are very pleased with the successful execution of our growth strategy in 2001,'' said Brian Cook, chief executive officer. ``Despite the challenging business environment, we had record sales and earnings for the quarter and year. We added to our portfolio of powerful brand names and diversified our product lines with our acquisition of Schwinn Fitness. Throughout the year, our strategy of selling branded products through multiple sales channels proved to be a winning formula for strengthening our position as a worldwide leader in the fitness and healthy lifestyle markets.''
``In our direct business, we continue to see strong growth. We took advantage of favorable advertising costs and availability during the year to increase consumer awareness of our Bowflex and Nautilus Sleep System product lines. We strengthened our eCommerce sales platform, which is an integral component of the direct sales channel. We also introduced a new high-end Bowflex model towards the end of the year and began marketing nutritional supplements from Champion Nutrition for added product diversity.''
``The results for our commercial and retail business reflect both the vitality of our Schwinn Fitness business and the growing popularity of our new Nautilus commercial and retail products. We greatly expanded our market share when we acquired Schwinn Fitness, and we are extremely pleased with its successful integration into our Company. With our proposed acquisition of StairMaster, we expect to gain another strong fitness brand and offer an increasingly powerful combination of cardiovascular and strength training equipment.'' |
