It looks like Q2 expenses were up by more than $2M CDN.
I wish they would consistently post in either US or CDN dollars!
Here's the Q2 press release:
Direct Focus Inc., formerly Bow Flex Net Income up 516 Percent on 256
Percent Higher Sales in Second Quarter (EXPRESSED
VANCOUVER, WASHINGTON--
Six-Months Net Income of $7.0 Million Outpaces $3.6 Million in
Full Year 1997
Direct Focus Inc. (TORONTO STOCK EXCHANGE - DFX), a direct
marketing company supplying fitness and health-related products,
today announced that net income for the second quarter ended June
30, 1998, increased 516 percent on 256 percent stronger sales.
Record-breaking sales in the quarter rose to $18.0 million,
compared to $5.0 million in the same period a year ago, marking
the sixth consecutive quarter of growth. Net income of $3.2
million increased from $526,000 while earnings per diluted share
improved 497 percent to $0.33 from $0.06 in the comparable 1997
quarter.
For the six months, sales were $34.2 million -- up 278 percent
from $9.1 million in the same 1997 period. On a percentage basis,
net income grew more than double sales, climbing 684 percent to
$7.0 million from $887,000 in the 1997 six months. Earnings per
share of $0.72 increased 700 percent from $0.09 a year ago.
"In the first half of 1998, we significantly exceeded sales and
net income levels for the entire year of 1997," said Brian Cook,
president and chief executive officer. The company had sales of
$28.4 million and net income of $3.6 million in fiscal 1997.
Cook attributed sales growth to expanded television advertising
featuring the company's home fitness equipment line, a higher rate
of converting information requests into sales, an expanded product
line and improved access to financing for customers.
"We are especially pleased with our strong net income
performance," said Cook. "In addition to gross margin improvement
in both the second quarter and six months, the company is
benefiting from increased operating leverage." Net income in the
second quarter was 18 percent of sales compared to 10 percent in
the prior year.
The company's sales currently stem entirely from its line of home
fitness equipment, marketed under the Bowflex name. "We expect to
add at least one more high quality, consumer-oriented
health/lifestyle product in the second half of 1998 as part of the
strategy for growth," said Cook.
Direct Focus Inc. (formerly Bow Flex Inc.) markets its Bowflex
home fitness equipment directly to customers via advertising on
national cable television networks, printed media, the world wide
web and through certified personal trainers.
/T/
Direct Focus Inc.
Financial Highlights
(Expressed in Canadian Currency)
Three Months Ended
June 30
Percent
1998 1997 Change Change
Sales $17,987,000 $5,046,000 $12,941,000 256
percent
Gross Profit 14,088,000 3,915,000 10,173,000 260
percent
Operating Income 4,932,000 826,000 4,106,000 497
percent
Net Income 3,238,000 526,000 2,712,000 516
percent
Diluted Earnings
Per Share 33 cents 6 cents 27 cents 497
percent
Diluted Shares
Outstanding 9,719,324 9,417,644 301,680 3
percent
Six Months Ended
June 30
Percent
1998 1997 Change Change
Sales $34,233,000 $9,062,000 $25,171,000 278
percent
Gross Profit 26,579,000 6,916,000 19,663,000 284
percent
Operating Income 10,506,000 1,387,000 9,119,000 657
percent
Net Income 6,952,000 887,000 6,065,000 684
percent
Diluted Earnings
Per Share 72 cents 9 cents 63 cents 700
percent
Diluted Shares
Outstanding 9,719,324 9,417,644 301,680 3
percent
/T/
-30-
FOR FURTHER INFORMATION PLEASE CONTACT:
Direct Focus Inc.
Rod W. Rice
(360) 418-6178 |
