Direct Focus, Inc. Net Income Rises 438 Percent to $4.5 Million in Third Quarter
VANCOUVER, WASHINGTON--
EXPRESSED IN CANADIAN CURRENCY
Direct Focus, Inc., a direct marketing company, reported net
income of $4.5 million for the third quarter ended September 30,
1998 -- a 438 percent increase over the same quarter a year ago.
Sales of $22.9 million for the quarter rose 173 percent from $8.4
million in the 1997 third quarter. The sales increase combined
with improved gross margins to fuel the $3.7 million gain in net
income quarter-over-quarter. Earnings per share (diluted) for the
three months were $0.47 -- more than 422 percent above $0.09 per
share in the comparable 1997 quarter.
For the nine months ended September 30, 1998, Direct Focus posted
sales of $58.1 million, up 232 percent from $17.5 million in the
prior year same period. Net income of $11.7 million, or $1.21 per
share (diluted) rose 574 percent from $1.7 million, or $0.18 per
share, a year ago.
The record-breaking third quarter, which generated 25 percent
higher sales than the second quarter, and the year-to-date sales
growth reflect positive consumer response to the company's direct
marketing of its Bowflex home fitness equipment.
"Earnings growth considerably outpaced the increase in sales,
propelled by improved operating leverage and stronger gross
margins in both the three months and nine months," said Brian
Cook, president and chief executive officer of Direct Focus. Net
income, as a percentage of sales, in the both 1998 periods was
approximately 20 percent, double the results in the comparable
year ago periods.
"We have added a second major product -- the Instant Comfort sleep
system -- and expect to see a sales contribution from that product
beginning in the first quarter of 1999," said Cook.
The company's balance sheet benefited from the improved financial
performance with cash at September 30, 1998 rising to $20.6
million from $7.2 million at December 31, 1997.
Direct Focus, Inc. markets directly to customers via advertising
on national cable television networks, printed media and the world
wide web.
/T/
DIRECT FOCUS, INC.
FINANCIAL HIGHLIGHTS
(Expressed in Canadian Currency)
3 Months Ended
September 30
1998 1997 Change Percent Change
---- ---- ------ --------------
Net Sales $22,952,394 $8,405,519 $14,546,875 173 percent
Gross Profit 17,766,422 6,143,540 11,622,882 189 percent
Operating Income 6,819,590 1,297,709 5,521,881 426 percent
Net Income 4,537,556 843,703 3,693,853 438 percent
Diluted Earnings
Per Share 0.47 0.09 0.38 422 percent
Diluted Shares
Outstanding 9,717,031 9,450,341 266,690 3 percent
9 Months Ended
September 30
1998 1997 Change Percent Change
---- ---- ------ --------------
Net Sales $58,116,893 $17,486,739 $40,630,154 232 percent
Gross Profit 45,069,420 13,074,039 31,995,381 245 percent
Operating
Income 17,612,383 2,686,635 14,925,748 556 percent
Net Income 11,678,495 1,732,501 9,945,994 574 percent
Diluted Earnings
Per Share 1.21 0.18 1.03 572 percent
Diluted Shares
Outstanding 9,717,031 9,450,341 266,690 3 percent
/T/
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FOR FURTHER INFORMATION PLEASE CONTACT:
Direct Focus, Inc.
Rod W. Rice
(360) 418-6178 |
