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Gold/Mining/Energy : Direct Focus Inc. (DFXI) -- Ignore unavailable to you. Want to Upgrade?

To: trilobyte who wrote (636)	1/23/2001 7:57:05 PM
From: trilobyte	Read Replies (2) \| Respond to of 768

CC Highlights... THIS IS THE MOST OPTIMISTIC AND FORTHCOMING I HAVE EVER HEARD THE GUYS AT DFXI DURING A QUARTERLY CALL. NOW LETS ROCK!!! my quick notes follow --sorry for not being able to type fast enough during the recap of financial numbers. THe Q&A was extremely positive. Great Quarter, Great Year. Announced stock repurchase effective next 3 months. Sales up 70% for quarter. Sales up 68% for 2000. ecommerce sales up 19% sequentially and 251% yr/yr. ecommerce sales up 366% yr/yr. 61.8 million sales from direct division. Beds reached 5% of direct sales. Rest from nautilus. GM remained steady at 70% in 2000 in direct channel. GM for Nautilus line was 38% in 4th q, up 3%. Combined GM 65%. Better than expected television response rates this quarter! --however, caused expenses to be up a little more. 77.2 million cash, up from 57.3 million at the end of 3rd Q!! Accounts receivable and DSO constant over last year and expect them to remain this level. Sales growth rate to be in the range of 25% to 30% compared to 2000. Continue to see sustained growth across BFX and nautilus. BFX grew beyond expactation. Will release new BFX model next year. Total home market opportunity is 5 billion. So we believe continued sales growth potential. 2nd main achievement was roll-out of nautilus bed. Expect to use our PATIENT and direct formula to offer new products in the direct channel. Increase commercial and retail sales to 25 million and profits to 1 million dollars. Believe set the stage for continued growth. Continue to invest in the future: investments in our information systems. Purchase a new building to consolidate operations. Confident in growth 2001 and beyond. Q&A now. ...: Fantastic Quarter Gentlemen! Breakout on the direct side of business and nautilus. Top line for direct side was 51.8 mil and nautilus seg 8.8 million. With all the cash you have, any acquisitions? stupid analyst... got no response of course! strenght in direct business. trouble staffing direct marketing? We have adequate resources... Piper Jaffrays: Congrats. On the beds, avg selling price? right around 1600$, fitness around 1200$. Sold around 6000 beds up to now. Life to date on BFX was 340K. Ten thousand unit acceleration over 3rd quarter. Mentioned the tough retail environment, you saw a good environment? WE DIDN"T FIND IT A VERY TOUGH ENVIRONMENT!!! with linear sales troughout the quarter. From outperformance, we'll be able to bump up expectations? Grow business around 25% based on 3rd quarter. ....: Share buybacks over course of 2000? Bought back around 3M$ in 1st half of 2000. Wells Fargo: Congrats to ALL and DFXI! wants to know more about GM... Guidance for 2001: Stated here grow the company in the 25% to 20% range. Tough retail environment, what kind of business in January? In direct business, 1st Q and 3rdQ are two of our strongest quarters, 1st Q is STILL A STRONG QUARTER!!!! YEAH! ....: Congrats! Terrific results compared to previous guidance. Exceeded guidance by 12 millions. Why revs so much higher than guidance. talked about this before, thought 4th Q would be a challenging Q, election affect advertising. But this year it was a non-event. The nautilus business, made 8.8 million. What contribution came from new products. Roll-out in 4th QW. Nitroline picking up steam. Nitro line is a new revitalize line of fitness for the commercial market. Initial response has been very good. On the air-sleep system, was it break even? Accomplished our sales and marketing objectives, won't break out other numbers. Do you expect it to be a profitable business? expect all business to be profitable! Guidance for percentage of sales from beds... trend somewhat like BFX. Expect to double sales so expect 15-20 million dollars... Correct assumption. piper jaffrays: strong enough on sleep system that you feel comfortable to forecast now? Product has it's own cycle. Longer life expected from sleep than BFX. Modeled 700K in earning for 2000. Expect to grow that faster than total business. Selling to more new customers today than at any time we've owned the company. ....: on nautilus retail... we have about 23 strenght products and 40 fitness accessories. Plan to add? yes. How many products we can add? significant number of main products including home gyms. Could it double? Equipement line about 1/2 dozen, the accessory line can double. Anything unusual with return rate. No... DARN< CAN"T FIND ANY WEAKNESS> ....: capex right around 6-7million in computer equip. How many people working in call. About 125 in call center and 15 people are dedicated to sleep system. ....: new BFX model. Characterize? Why new model? New look, functionality wise, its similar and think will attract more high end customers. Revolutionary design? or new gimmick? GIMMICK?!?! Not a revolutionary new design --cosmetic upgrade. Higher price model: believe so.