16400 SE Nautilus Drive
Vancouver, WA 98683
- General Overview of progress
- In 2005, Nautilus profits exceeded $630 million
- Total sales rose in international markets, a $22 million increase
- US sales increased nearly $100 million from last year
- 22 new products: the focus is on innovation, testing, and prototyping
- 1550 employees in US
- Extensive warrantees to consumers
- Acquired Pearl iZUMi, a major producer of outdoor apparel and cycling equipment, for $75.3 million
- Continue to do well against major competitors: Nike, New Balance, Adidas, ICON Health and Fitness, and Fitness Quest
- Business strategies and advertising approaches
- A "pure fitness" approach - have consumer utilize Nautilus fitness equipment, apparel, and food (Champion Nutrition)
- Research on how to leverage research dollars to meet customer demands
- Move more products out to retail outlets, directly to consumer
- Turn inquiries into sales
- Customer service call center open 18-23 hrs/day. This allows customers worldwide to inquire and be assisted at any point in the day.
- Telemarketing service handles all interest for on and offline inquiries
- Powerful commercials and infomercials generate interest and requests for equipment
- Utilize the power of internet advertising
- Advertise in trade publications, direct mail promotions, Nautilus Institute, trade shows, the Internet, sports magazines, product seeding, wholesalers, retail stores (REI, Dick’s)
- Least sales are in second quarter - most people watch TV finales
- Customer Base
- Sell to health clubs, government recreation centers, hotels, corporate fitness centers, colleges and universities, and assisted living centers
- Sell to USA, Asia, Europe, Canada, and South America. Largest foreign markets reside in Canada, UK, Germany, and Italy (seasons impact all markets)
- Sales have been increasing since customers are becoming more educated about fitness and using their education to stay healthy
- Financial Review
- NLS (Nautilus’s code on NYSE) ranged from $16-30
- Gross income of $278,814,000, with net sales $631.3 million
- Assets: $413,286,000
- 75,000,000 total shares
- Stock options yield 2.2%
# # # # #
to download a copy. (Opens in a new window).