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Bow Flex Inc -
First quarter results
Bow Flex Inc
BFX
Shares issued 8971541
1998-04-17 close $12
Monday Apr 20 1998
Mr Brian Cook reports
Bow Flex's net income for the first quarter ended March 31 1998 surged 892% -
equaling 1997 full year results - on sales growth of 290%.
Sales for the quarter rose to $15.7 million from $4.0 million in the comparable
1997 period. Net income increased to $3.6 million, or $0.37 per diluted share -
up significantly from $361,000, or $0.04 per diluted share a year ago.
The tremendous sales growth quarter-over-quarter was fueled primarily by the
impact of expanded television advertising on Bow Flex's home fitness equipment.
The company's first 30 minute infomercial was introduced in the second quarter of
1997.
In addition to increased marketing exposure, a broader product line, improved
access to financing for customers and the company's increased direct marketing
sophistication and tools contributed to the sales gain.
On a percentage basis, net income grew nearly three times faster than sales during
the quarter and equaled results reported for the entire year of 1997.
The company has a strong balance sheet to support its growth strategy. Cash and
cash equivalents for the quarter increased to $13.4 million, nearly doubled from
$6.9 million at December 31 1997 year end. During the quarter, Bow Flex
obtained a $2 million line of credit, replacing one for $1 million, both of which
were unused.
For the fiscal year ended December 31 1997, Bow Flex had sales of $28.4
million and net income of $3.6 million.
FINANCIAL HIGHLIGHTS
Three months ended March 31
1998 1997
Sales $15,692,845 $4,026,784
Gross profit 12,065,959 3,008,568
Operating income 5,385,819 561,328
Net income 3,586,762 361,483
Earnings per share $0.37 $0.04
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