CARLSBAD, CA – April 27, 2021 – Today, Mizuno announced a partnership with Blast Motion, the leader in swing analysis, player development and improvement, to provide international distribution and support of Blast Baseball in Japan. For the past 100 years, Mizuno has a proven track record of providing athletes with high-quality sports equipment and a drive to improve. This partnership makes Blast Baseball, the industry’s most accurate swing analyzer, available to the Japanese market through a localized mobile app and their Blast Connect experience. The Blast swing analyzer attaches to the knob of the bat and allows players to capture real-time swing analytics, while providing simple visual indicators to help players understand where they need to focus, with drills and recommendations for improvement.
Mizuno executive officer, Norihito Kubota, is excited and enthusiastic about this partnership agreement. “Utilization of precisely measured biomechanical and swing data, paired with rich visualizations, enables the most efficient method for training, leading to baseball and softball batting performance improvement. Mizuno is a long-time baseball / softball market leader in Japan, not just in market share, but innovation as well. Through our partnership with Blast Motion and Mizuno’s innovative equipment, Mizuno expects to lead a paradigm shift in the market for how players and coaches train, and improve their level of understanding and performance.”
“For the past couple of years, Blast has been working at the highest level of baseball in Japan, with the NPB, to provide Japanese professional teams swing analytics and hitting insights. Mizuno, the foremost baseball brand in Japan, will now bring our hitting improvement solution to the broader baseball market,” said Mike Woods, Vice President of Business Development & Strategic Partnerships at Blast Motion. “Our entire team at Blast is excited that this partnership will enable Japanese players and coaches with objective swing data that can be used for player development and recruiting.”
About Blast Motion
Based in Carlsbad, California, Blast Motion is an information company that provides motion analysis and performance insights. By intelligently combining the bio-mechanics of movement with sensor data, video capture technology, and cloud-based software services, Blast has redefined the way people coach, recruit, train, analyze, and improve their game. For additional information on Blast Motion, please visit: blastmotion.com
About Mizuno
Mizuno Corporation is a sporting equipment manufacturer established in Japan in 1906. In addition to developing and marketing products for a wide range of sports, including running, football, baseball and golf, the company is also committed to increasing availability of sporting equipment and promoting sports through activities such as supporting athletes and sponsoring events. Since our founding, we have taken special pride and pleasure in being able to participate in the exciting world of sports and providing sports equipment of the highest quality. Each and every one of us is guided by the ideal of true sportsmanship. This has been over 100 years and is still true today. It is evident in our corporate philosophy which, simply stated, is “Contributing to society through the advancement of sporting goods and the promotion of sports.” For further information on Mizuno, please visit our website: corp.mizuno.com/en/
Connect / Follow Blast Motion
Twitter: @Blast_Bsbl | Facebook: @BlastBaseball | YouTube | Instagram
Blast Motion Media Contact
Donovan Prostrollo
Senior Director, Marketing
[email protected]
Family-owned business outsources facility operations to National firm
(Clearwater, FL) April 12, 2021– The Tincher and Thomas families, owners of TNT Sportsplex, have selected Sports Facilities Companies (SFC) to manage and operate their sports and recreation facility. The venue, which has been serving Kingsport, and the Tri-Cities of Tennessee since 2015, hosts local and regional tournaments and events as well as camps, clinics, and leagues for youth and adults. SFC will manage the daily operations including, marketing, event booking, and maintenance of the complex as well as staffing, and organizational development.
Shanna Tincher, TNT Co-Owner remarked, “Sports Facilities Companies have proven to be experts in recreational programming and facility management. As we come back from the challenges of COVID-19, SFC has helped us make informed decisions on the operations of the facility with financial forecast tools and an Optimization Study. Their leadership of TNT operations will allow us to fully embrace our role as owners and expand our service to our community.”
TNT Sportsplex has hosted thousands of athletes and families in their 33,000 square foot facility which features 4 high school regulation-size basketball courts. Programs and tournaments are offered for people of all ages including:
- TNT Tiny Tot Classes for beginners ages 3-5
- Volleyball Leagues & Tournaments (Recreational & Competitive)
- Basketball Leagues & Tournaments (Recreational & Competitive)
- Soccer Tournaments & Training
- Sports Camps
- Recreational Opportunities – Pickleball and Open Gym
- Birthday Parties and Court/Facility Rentals
The Sportsplex has hosted large national events including with Teammate Basketball, The AAU Girls Nationals and AAU Wrestling. The facility is capable of hosting other non-sporting events on their courts. In recent years, the venue has hosted regional tradeshows, markets, banquets and more.
By selecting SFC as their outsourced operator, TNT Sportsplex joins the SFM Network – the largest and fastest-growing network of sports and recreation facilities in the country. The facility will have access to the 900+ person team of subject matter experts, on-site operators, and proven processes and systems required to drive results for the Sportsplex and the Tri-Cities.
“We are proud to partner with the partners at TNT Sportsplex to make this venue a success for Kingsport and surrounding areas. Through our partnership we will continue to build on their strong foundation to expand TNT’s excellent programs, exemplary events and tournaments. We will continue to provide fun and engaging programs for the residents in this community who are already proud to have TNT in their community,” said Lori Moore, SFC Account Executive who will oversee the property.
To learn more about TNT Sportsplex, visit tntsportsplex.com. To begin your journey in venue optimization like TNT, visit: sportadvisory.com or sfmnetwork.com.
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(Carlsbad, Calif., – April 7, 2021) – Today, Blast Motion, the leader in swing analysis, player development and improvement, announced a partnership with The Playrs Showcase Series. The Playrs Showcase is an emerging series of premier / elite instructional events for baseball and softball youth around the country.
The Blast solution allows athletes to become the best version of themselves by intelligently combining the bio-mechanics of movement with sensor data, video capture technology, and cloud-based software services. Blast will be seamlessly integrated into the Playrs showcase events so that amateur baseball and softball athletes can receive industry leading developmental instruction and post-event player reports. This is the same Blast information that is used by travel team coaches, college recruiters, and MLB scouts.
“The Playrs Showcase Series is partnering with leaders in the baseball and softball technology analysis space, like Blast Motion, to deliver a best-in-class, in-event and post event experience” said Jim Duquette, former New York Mets and Baltimore Orioles General Manager and now CEO of the Playrs Showcase Series. “Participants will receive actionable insights and instruction from their event performance, captured by Blast Motion, so they can elevate their game.”
As part of the event participation fee, all attendees will receive a Blast Motion swing analyzer, a post event assessment report, and 30-day access to Blast Premium Service. Additionally, players will receive an overall improvement plan with special offers related to skill development, nutrition, wellness, content for recruiting and media exposure throughout the year.
“Blast Motion is honored to be selected as a founding partner of the Playrs Showcase Series,” said Mike Woods, Vice President of Business Development & Strategy – Blast Motion. “Its vision for instruction, skill development, data capture, and exposure to college coaches and MLB scouts made it a natural fit for Blast Motion technology to be incorporated into these elite showcases.”
About Blast Motion
Based in Carlsbad, California, Blast Motion is an information company that provides motion analysis and performance insights. By intelligently combining the bio-mechanics of movement with sensor data, video capture technology, and cloud-based software services, Blast has redefined the way people coach, recruit, train, analyze, and improve their game. For additional information on Blast Motion, please visit: blastmotion.com
About Turn2 Equity Partners and the Playrs Showcase Series
Turn2 Equity Partners is a technology holding company creating a portfolio of complementary sports and entertainment businesses many focused on youth / amateur sports all powered by technology and the influence of professional sports figures. “Playrs” is the unifying brand and platform that serves as the portfolio amplifier across the core verticals; performance and entertainment which include: Performance (skill development), Events (showcases), Entertainment (content distribution) and Commerce (consumer products). For additional information on Turn2 Equity Partners, please visit: playrs.com
Connect / Follow Blast Motion
Twitter: @Blast_Sftball | Facebook: @BlastSftball | YouTube | Instagram
Media Contact
Donovan Prostrollo
Senior Director, Marketing
Blast Motion
New management team, staff, and events coming this summer.
(Edmond, OK) March 31, 2021– After the 2020 season, the City of Edmond has reengaged the industry-leading recreation management firm, the Sports Facilities Companies (SFC) to operate Pelican Bay Aquatic Center. The family-favorite waterpark will reopen its doors to residents for a summer-long season beginning in May 2021 with improvements in operations, programming, events, and more. Following a national search, the firm has selected Marina Wells as General Manager for the property.
Wells joins the SFC team to lead daily operations for Pelican Bay with 13 years of experience in aquatics and programming. She has worked for the YMCA and for Oklahoma City area Parks and Rec Departments as a City Special Event Coordinator. She is a certified Aquatics Facility Operator and Lifeguard Instructor for the American Red Cross. About this new opportunity, Wells shared, “This May we will open with new events, programming, and membership benefits. I look forward to getting to know the Edmond community through Pelican Bay and providing a great swim experience as well as a fun, safe atmosphere for all our guests.”
“Serving our community by providing safe and quality aquatics programs is of the utmost importance to us,” says Diane Self, Recreation Program Manager of City of Edmond Parks and Recreation. “The Sports Facilities Companies have proven their ability to serve local residents and guests, provide high-quality programming and events, and manage every aspect of the property with care and excellence.”
Pelican Bay Aquatic Center, located near the heart of Edmond, opened in 2002. The waterpark features two 150 ft. water slides, diving boards, a current channel, an aquatic climbing wall and a slide splash pool as well as a playground, concessions, and bathhouses. In addition to learn-to-swim opportunities and programmed events, the Aquatic Center is available for birthday parties and large, full-facility rentals.
Jason Clement, Founder and CEO of SFC commented, “We are proud of the track record at Pelican Bay. The City of Edmond has been a great partner and the relationship is extremely productive. We look forward to bringing our experienced team focused on first-class programs and the very best experience for Edmond residents and guests of the pool.”
SFC is currently hiring lifeguards and other team members for Pelican Bay for the 2021 summer season. Interested applicants may learn more or apply online.
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About Sports Facilities Companies: The Sports Facilities Advisory, LLC (SFA), Sports Facilities Development, LLC, and Sports Facilities Management, LLC (SFM) are headquartered in Clearwater, FL. Founded in 2003, SFA has served more than 2,000 communities, produced more than $10 billion in institutional-grade financial forecasts, and provided funding strategies and solutions for more than 70+ youth and amateur sports and recreation complexes worldwide. SFD serves facility owners through owner’s representation, venue planning, and procurement services during pre-development and construction. SFM provides industry-leading, results-driven management solutions for sports, fitness, recreation, and event venues nationwide. Since 2014, SFM-affiliated venues have hosted more than 100 million visitors and generated hundreds of millions of dollars in economic impact. For more information, visit: sportadvisory.com and sfmnetwork.com.
Morristown Landing in Morristown, TN Celebrates Groundbreaking
March 25, 2021– The City of Morristown celebrated the groundbreaking of their newest recreation and events venue, Morristown Landing. The ceremony took place on March 12 on the site where the event center will be located, adjacent to the Public Works facility on Merchants Greene Boulevard. Construction has begun on the 100,000 square-foot indoor recreation, wellness, and events venue and is slated to be completed by summer 2022.
Morristown Landing will feature a 25-yard, six-lane lap pool, family aquatic center, fitness center, a fieldhouse with 4 hardwood basketball or 6 volleyball courts, play climb walls, meeting and event spaces, and an outdoor splash pad. The venue will offer comprehensive programming such as summer camps, youth and adult leagues, and a membership program for aquatics and fitness.
The ceremony hosted members from the City of Morristown, LOSE Design, PATH Construction, BurWil Construction, GEOS, Sports Facilities Companies (SFC), and more. Mayor Gary Chesney commented on this momentous occasion, “I am extremely proud to be able to introduce the beginning of Morristown moving up another notch. To our residents, you have earned this, and we deserve this level of opportunities.”
SFC Account Executive Gregg Wisecarver, added, “Morristown Landing is an example of the next generation of local recreation venues with premier community amenities. We are ready to continue the next phase of development, and we are thrilled with the design being developed by LOSE, PATH and BurWil Construction. When this venue opens to Morristown residents, we will ensure the vision is met to create a guest experience that represents the City with excellence.”
Sports Facilities Companies is the leader in managing and operating youth and amateur sports venues, like Morristown Landing. The SFC team, led by Gregg Wisecarver, is assisting the City of Morristown operationally and will begin hiring for the venue in the coming months, beginning with the General Manager position. For more information, please contact the City of Morristown at mymorristown.comor visit morristownlanding.com.
Veteran HR executive with tech experience joins executive leadership team
VANCOUVER, Wash.–(BUSINESS WIRE)–Mar. 9, 2021– Nautilus, Inc. (NYSE: NLS) today announced that it has hired Ellen Raim as Chief People Officer, effective March 2. In this new role, Raim will lead all aspects of Nautilus’ global human resources, including crafting talent acquisition strategies to build strong pipelines for future hiring needs, promoting inclusion in the workplace, and designing and evaluating career paths to meet the company’s business goals.
Raim brings nearly 30 years of experience, including a deep knowledge of how to link business needs with people and culture, particularly in the tech industry, which includes 10-years at Intel Corporation.
Most recently, Raim was vice president, people and culture for SaaS start-up Invoca, where she built the people systems needed to enhance and protect the culture as the company scaled.
Prior to that, she held vice president of human resources roles at several global technology companies, including ESI and Cascade Microtech. In these roles, she was able to concentrate on integrating business strategy, large-scale change management, and organizational development.
“Ellen is the right leader to help us continue to build an engaged, inclusive, and high-performing culture, which is vital for our business to thrive in 2021 and beyond,” said Jim Barr, Nautilus, Inc. Chief Executive Officer. “We are confident that her ability to enhance a culture that aligns with the business strategy will be a strong addition to the executive leadership team, and will continue to position Nautilus as an employer of choice. Ellen brings deep experience crafting impactful strategies to attract and retain the best talent, and her technology background is particularly relevant, as we evolve and grow our digital focus.”
Ms. Raim commented, “Nautilus attracted me with its unique culture, which has been recognized as one of the top places to work eight years in a row. This demonstrates the value Nautilus places on their culture and people, and the understanding that aligning the two is critical to achieving the company’s North Star transformation and growth. I’m excited to join and contribute to this mission, as well as have the opportunity to bridge my tech background with my personal passion for fitness.”
About Nautilus, Inc.
Nautilus, Inc. (NYSE:NLS) is the global leader in innovative home fitness solutions. The company’s diverse brand portfolio includes Bowflex®, Nautilus®, Schwinn®, and a broad selection of exercise bikes, cardio equipment, strength training products, as well as the JRNY® digital fitness platform. Nautilus, Inc. empowers healthier living through individualized connected fitness experiences. The company sells its products through direct and retail channels. Nautilus, Inc. uses the investor relations page of its website (www.nautilusinc.com/investors) to make information available to its investors and the market.
This press release includes forward-looking statements (statements which are not historical facts) within the meaning of the Private Securities Litigation Reform Act of 1995, including: planned investments and initiatives and the anticipated results of such initiatives. Factors that could cause Nautilus, Inc.’s actual results to differ materially from these forward-looking statements include: weaker than expected demand for new or existing products; our ability to timely acquire inventory that meets our quality control standards from sole source foreign manufacturers at acceptable costs; an inability to pass along or otherwise mitigate the impact of raw material price increases and other cost pressures, including unfavorable currency exchange rates; experiencing delays and/or greater than anticipated costs in connection with launch of new products, entry into new markets, or strategic initiatives; our ability to hire, retain and integrate key management personnel, including our new Senior Vice President and Chief Digital Officer; changes in consumer fitness trends; changes in the media consumption habits of our target consumers or the effectiveness of our media advertising; a decline in consumer spending due to unfavorable economic conditions; and softness in the retail marketplace. Additional assumptions, risks and uncertainties are described in detail in our registration statements, reports and other filings with the Securities and Exchange Commission, including the “Risk Factors” set forth in our Annual Report on Form 10-K, as supplemented by our quarterly reports on Form 10- Q. Such filings are available on our website or at www.sec.gov. You are cautioned that such statements are not guarantees of future performance and that our actual results may differ materially from those set forth in the forward-looking statements. We undertake no obligation to publicly update or revise forward-
looking statements to reflect subsequent developments, events or circumstances.
View source version on businesswire.com: https://www.businesswire.com/news/home/20210309005077/en/
Media Contacts: John Fread Nautilus, Inc. 360-859-5815 [email protected]
Carey Kerns
The Hoffman Agency 503-754-7975 [email protected]
Investor Relations:
John Mills
ICR, LLC 646-277-1254 [email protected]
Source: Nautilus, Inc.
Retail success in 2021 will be complicated to measure – and the sports industry is not exempt from these challenges. Across the industry, we saw both extreme lows and unprecedented highs – both of which will present challenges when making comparisons to this year’s sales. In athletic footwear, we saw the single worst monthly results on record in March 2020 and the single best in June. One should be a cinch to beat and the other likely impossible. Looking at other aspects of the market, as soon as the lockdowns started sales of bicycles and home fitness equipment took off, soaring to heights never seen before. While I believe that consumer interest in these categories will remain high, maintaining or exceeding the momentum of those sensational results will prove difficult. Brands that promoted aggressively and drove their direct-to-consumer sales to unprecedented levels may not be able to grow on top of these already high sales without promoting even more in 2021.
With all of this taken into consideration, how should the industry measure success in 2021?
One thought is to compare 2021 results to 2019, when things were “normal.” Certainly, viewing trends through that lens will be more stable; however, 2021 itself will not be a “normal” year. For instance, sports equipment sales in January will likely be up by more than 50%, which is hardly the norm. So, comparisons to 2019 need to be viewed with caution.
Another way to measure success in 2021 is through capturing market share profitably. That term profitably is an important caveat here. There are two pillar ways companies can take share: profitably or promotionally.
Share is a zero-sum game either way; for one company to win, another must lose. However, viewing share in a vacuum is dangerous. How share gain is achieved impacts the health of a company in very different ways.
Promotions may help brands to grow share in the short-term, but this does not necessarily result in profits. The share gains brands captured via promotions in 2020 will be challenging to replicate, without promoting even more in 2021, and companies do not want to find themselves in this corner of finding growth at any cost.
Today’s circumstances present an opportunity for companies to change the narrative in 2021, to step back and transform their business. Over the last year, the sports industry has exceled in using unrequited demand to drive consumer interest. I say let’s take those principles to the next level. By constraining supply, sales may be dampened but profits will grow.
Instead of focusing on growth at a perilous cost, the industry can focus on profitably gaining market share. Increased profits have many long-term benefits. Investments in marketing or innovation are rewarded with higher profit. Companies’ images are elevated and not bound to short-term thinking and results.
Managing the marketplace remains the sports retail industry’s greatest opportunity. Smart and practical management of our industry focused on improving profitable share gains is a strong measure of success in 2021 and beyond.
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For more information or to speak with Matt Powell, contact me at [email protected].
Port Washington, NY, March 3, 2021 – The NPD Group today revealed the winners of its first ever Outdoor Sports Industry Performance Awards. The awards acknowledge the fastest-growing brands of 2020 across the major outdoor categories in the U.S. including snow sports equipment, according to NPD’s Retail Tracking Service.
The outdoor market generated $6.1 billion in U.S. retail sales in 2020,* and snow specialty brought in $2.5 billion season-to-date through December 2020.** As consumers have sought ways to be active, outside, and practice social distancing both in their backyards and other outdoor settings, camping (+36%), water sports (+19%), and additional areas of the market experienced year-over-year growth in sales.
Below are the top performing brands of 2020 in the U.S., based on dollar sales growth versus the prior year.
Sports practice. “Congratulations to the award winners. We wish all of you, and our industry in its entirety, a healthy and successful rest of the year.”
*Source: The NPD Group/ Retail Tracking Service, Outdoor Specialty and Sport Specialty E-commerce Channels, Dollar Sales, Jan.-Dec. 2020
**Source: The NPD Group/ Retail Tracking Service, Snow Specialty and Snow Internet Channels, Dollar Sales, Aug.-Dec. 2020
***
About The NPD Group, Inc.
NPD offers data, industry expertise, and prescriptive analytics to help our clients grow their businesses in a changing world. Over 2,000 companies worldwide rely on us to help them measure, predict, and improve performance across all channels, including brick-and-mortar, e-commerce, and B2B. We have services in 19 countries worldwide, with operations spanning the Americas, Europe, and APAC. Practice areas include apparel, appliances, automotive, beauty, books, B2B technology, consumer technology, e-commerce, fashion accessories, food consumption, foodservice, footwear, home, home improvement, juvenile products, media entertainment, mobile, office supplies, retail, sports, toys, and video games. For more information, visit npd.com. Follow us on Twitter: @npdgroup.
Press Contact:
Marissa Guyduy
+1 516-625-2203
VANCOUVER, Wash.–(BUSINESS WIRE)–Feb. 22, 2021– Nautilus, Inc. (NYSE: NLS) today reported its unaudited operating results for the fourth quarter and full year ended December 31, 2020.
Fourth Quarter 2020 Highlights Compared to Fourth Quarter 2019
Net sales were $189.3 million, up 81.7% compared to $104.2 million last year and up 108.3%, excluding sales related to the Octane brand, which was sold in October 2020. Sales growth was driven primarily by continued demand for connected- fitness bikes, like the Schwinn® IC4, Bowflex® C6 and VeloCore®, as well as robust sales of SelectTech® weights and Bowflex® Home Gyms. Strong execution across the organization coupled with supply chain improvements that began earlier in the year drove these record results. Importantly, due to the severe shortage of shipping containers, some factory fulfilled orders, representing over $16 million in revenue, did not ship in late December. Container shortages, worsening global logistics disruptions, and continued factory capacity constraints resulted in $91.5 million of backlog.
Gross profit was $77.9 million, up 104.1% compared to $38.2 million last year. Gross margin rate expanded by 450 basis points to 41.1% driven by increased full-priced selling in Direct, improved wholesale margins in Retail, and fixed costs leverage, partially offset by increased transportation costs driven by global logistics disruptions.
Operating expenses increased by $1.5 million or 4.4% to $36.4 million primarily due to increased general and administrative costs and research and development costs offset by a reduction in sales and marketing expenses.
Operating income was $41.5 million, a $38.2 million or 1,160.8% improvement compared to $3.3 million last year. This quarter’s operating income is second only to the $44.0 million of operating income in Q3 2020, which included a gain of $8.3 million related to the Octane transaction. If we exclude that gain, Q4 2020 represents the highest quarterly operating income in the company’s history.
Income from continuing operations increased by 698.6% to $29.3 million, or $0.90 per diluted share, compared to $3.7 million, or $0.12 per diluted share last year.
Net income increased by 729.8% to $28.9 million, or $0.89 per diluted share, compared to $3.5 million, or $0.12 per diluted share last year.
The tax rate for the fourth quarter was 22.7%.
EBITDA from continuing operations1 was $40.3 million, a $34.3 million or 578.1% improvement compared to $5.9 million last year.
1 See “Reconciliation of Non-GAAP Financial Measures” for more information
Management Comments
“Our team’s passion to deliver a best-in-class consumer experience resulted in our strongest quarterly performance of all time. We delivered robust growth across our brands, channels, and products. Net sales grew 82% or 108% excluding the impact of the Octane brand, which we sold in October 2020. We expanded gross margins by 450 basis points, delivered operating income of $41 million, and generated $40 million of EBITDA,” said Jim Barr, Nautilus Inc. Chief Executive Officer. “The demand for in-home fitness has not abated in early 2021, even in the face of a vaccine roll-out. We ended the year with $91 million in backlog as, similar to many industries, we continue to face disruptions in global logistics. We are managing through these temporary constraints which we expect will remain through the first half of calendar 2021. Strong consumer response to our expanding cardio and strength offerings, particularly our IC bikes, SelectTech® weights, and Home Gyms drove our performance in the quarter.”
Mr. Barr continued, “During the holiday fitness season, we added to our product portfolio by launching the new Bowflex ® C7 bike, two Bowflex® Treadmills, and an updated Max Trainer® all integrated with the JRNY® digital fitness platform through HD touchscreens. Additionally, our new VeloCore® bike, the industry’s first (un)stationary, dual-mode bike that combines leaning technology with digital connectivity, won a prestigious Consumer Electronics Show 2021 Innovation Award. These new products and JRNY 2.0 have received incredible coverage and glowing customer
reviews, positioning us well for 2021. Lastly, we completed North Star, our long-term strategy that builds on the company’s well-known brands, reputation for quality and innovation, broad product portfolio, and consumer-focused company culture. We ended the year with over $90 million of cash
and short-term investments, providing additional resources needed to accelerate our North Star strategy and ultimately deliver sustainable long-term growth.”
Fourth Quarter 2020 Segment Results Compared to Fourth Quarter 2019
Direct Segment
Direct delivered their best quarterly sales in segment history. Net sales were $82.2 million, up 128.8% from last year. Cardio sales increased by 78.0%, driven by the Schwinn® IC4, Bowflex® C6 and VeloCore® connected-fitness bikes. In the fourth quarter, the company launched a new generation of Bowflex® connected treadmills integrated with the JRNY® digital fitness platform through an HD touch screen console. Strength products grew 372.1% led by the popular SelectTech® weights and Bowflex® Home Gyms.
As of December 31, 2020, Direct’s backlog totaled $46.5 million compared to $3.5 million as of December 31, 2019. These amounts represent unfulfilled consumer orders net of current promotional programs and sales discounts.
Gross margin rate expanded by 370 basis points to 53.6% primarily driven by increased full-priced sales and favorable fixed costs leverage, partially offset by higher transportation costs.
Segment contribution income was $23.6 million, compared to a loss of $5.0 million last year. The $28.6 million improvement was primarily driven by higher gross profit and decreased media spend. Advertising expenses were $10.5 million compared to $12.9 million last year.
Retail Segment
Retail delivered their best quarterly sales in segment history. Net sales were $106.3 million up 57.5% from last year and by 96.2% over last year excluding sales related to the Octane brand. Cardio sales increased by 59.4%, driven by bikes, particularly the Schwinn® IC4 connected-fitness bikes, Max Trainer®, treadmills and ellipticals. Strength products sales grew by 52.5%, led by Bowflex® Home Gyms and the popular SelectTech® weights and benches.
As of December 31, 2020, Retail’s backlog totaled $45.0 million compared to $2.3 million as of December 31, 2019. These amounts represent customer orders for future shipments and are net of contractual rebates and consideration payable to applicable Retail customers.
Gross margin rate expanded by 230 basis points to 31.1% primarily driven by favorable customer mix and fixed costs leverage, partially offset by higher transportation costs.
Segment contribution income was $25.3 million, 107.0% or $13.1 million higher than last year primarily driven by higher gross profit and leveraging of fixed costs.
Full Year 2020 Highlights Compared to Full Year 2019
Net sales for 2020 were $552.6 million, up 78.7% compared to $309.3 million in 2019 and up 97.2% excluding sales related to the Octane brand. Sales growth was driven primarily by strong demand for the Schwinn® IC4 and Bowflex® C6 connected-fitness bikes, Bowflex® Home Gyms, and SelectTech® weights. Positive customer response to the new JRNY® powered connected fitness products launched in 2020, like the VeloCore® bikes, new treadmills, and new Max Trainer®, also contributed to sales growth. Full year sales results were in the mid-point of company’s guidance of $540 million to $565 million. Importantly, due to the severe shortage of shipping containers, some factory fulfilled orders, representing over $16 million in revenue, did not ship in late December. If these products had shipped as planned, net sales for 2020 would have been approximately $569 million.
Gross profit for the year was $228.8 million, up 106.9% compared to $110.6 million in 2019. Gross margin rate expanded by 560 basis points to 41.4%, driven by increased full-priced selling in Direct, improved wholesale margins in Retail, and fixed costs leverage, partially offset by increased transportation costs driven by global logistics disruptions.
Operating expenses were $151.0 million, down 28.5% compared to $211.1 million last year, primarily because of lower one-time costs. This year, the company recorded a loss on disposal group of $20.7 million and last year, the company recorded a goodwill and other intangible impairment charge of $72.0 million. Additionally, the company pulled back on paid advertising, given strong organic demand and inventory scarcity. These expense reductions were partially offset by increases in general and administrative and research and development costs.
Full year operating income hit an 18-year high at $77.8 million, an improvement of $178.4 million compared to the $100.5 million loss last year.
Income from continuing operations increased to $60.5 million, or $1.88 per diluted share, compared to loss from continuing operations of $92.3 million, or -$3.11 per diluted share.
Net income was $59.8 million, or $1.86 per diluted share, an improvement of $152.6 million compared to last year’s loss of $92.8 million, or -$3.13 per diluted share last year.
The effective tax rate from continuing operations for the year was 16.8% versus last year’s 9.4%. The higher rate this year was primarily due to profit generated in the U.S. partially offset by the 14% rate benefit of net operating loss carry-backs as a result of the enactment of the CARES Act.
EBITDA from continuing operations was $83.7 million compared to a loss of $90.2 million, an improvement of $173.9
million.
The following statements exclude the impact of this year’s loss on disposal group and last year’s goodwill and other intangible impairment charge1
Adjusted operating expenses decreased by 6.3% to $130.3 million compared to $139.1 million last year, primarily due to reduced advertising partially offset by increases in general and administrative and research and development costs.
Adjusted operating income was $98.5 million, an improvement of $127.0 million compared to the operating loss of $28.5 million last year, driven by sales growth and expanded gross margin rates.
Adjusted income from continuing operations improved to $78.9 million, or $2.46 per diluted share, compared to a loss from continuing operations of $23.4 million, or -$0.79 per diluted share.
Adjusted EBITDA from continuing operations was $106.8 million, an improvement of $125.0 million compared to last year’s adjusted EBITDA loss of $18.2 million. This result is 7% higher than the top end of company’s guidance of $90 million to $100 million.
1 See “Reconciliation of Non-GAAP Financial Measures” for more information
Full Year 2020 Segment Results Compared to Full Year 2019
Direct Segment
Net sales for 2020 were $240.9 million, up 101.4% from last year. Cardio sales grew by 82.6% and were led by strong demand for our connected-fitness bikes, the Bowflex® C6 and Schwinn® IC4, offset by lower Max Trainer® sales. Strength product sales grew 185.5% versus the same period in 2019 driven by SelectTech® weights and Bowflex® Home Gyms. Positive customer response to the new JRNY® powered connected fitness products launched in 2020 also contributed to sales growth.
Gross margin rates for 2020 expanded by 450 basis points to 54.3% primarily driven by increased full-priced sales and favorable fixed cost leverage, partially offset by higher transportation costs.
Segment contribution income for 2020 was $60.0 million, compared to loss of $24.6 million for 2019. The $84.6 million improvement was primarily driven by higher gross profit.
Retail Segment
Net sales for 2020 were $308.0 million, up 65.1% from last year and up 95.4% excluding sales related to the Octane
®®
brand. Cardio sales were up 66.5%, driven by the Schwinn IC4 connected-fitness bikes and Max Trainer . Strength sales
were up 60.7% led by the popular Bowflex® Home Gyms and SelectTech® weights.
Gross margin rates for 2020 expanded by 490 basis points to 30.6% primarily driven by favorable customer mix and fixed cost leverage, partially offset by higher transportation costs.
Segment contribution income for 2020 was $62.8 million, 291.3% or $46.8 million higher than last year primarily driven by higher gross profit.
Balance Sheet and Other Key Highlights as of December 31, 2020:
The company’s liquidity position continues to improve
Cash, cash equivalents, restricted cash and available-for-sales securities were $94.1 million, an increase of $83.0 million, compared to $11.1 million as of December 31, 2019.
Debt was $13.5 million compared to $14.1 million as of December 31, 2019.
$54.8 million was available for borrowing under the Wells Fargo Asset Based Lending Revolving Facility.
Account receivables were $91.2 million, compared to $54.6 million as of December 31, 2019. The increase in accounts receivable was primarily due to the timing of Retail customer payments on increased sales.
Inventory was $51.1 million, compared to $54.8 million as of December 31, 2019. The decrease in inventory was primarily due to the surge in demand for home-fitness products.
To secure factory capacity, the company routinely issues non-cancelable purchase obligations for expected product deliveries in the next twelve months. As of December 31, 2020, there were approximately $165.7 million of non-cancelable purchase obligations, compared to $28.4 million as of December 31, 2019.
Trade payables were $96.4 million, compared to $74.3 million as of December 31, 2019. The increase in trade payables was primarily due to timing of payments for inventory in-transit.
For the full press release, please click here.
ANCOUVER, Wash.–(BUSINESS WIRE)–Nautilus, Inc. (NYSE:NLS), an innovation leader in home fitness for over 30 years, today announced its JRNY® digital fitness platform has been enhanced with a wide array of new video and trainer-led workouts; it also offers the ability to layer adaptive workouts and voice coaching with a member’s favorite Bowflex® Radio station or travel the globe during a workout with the Explore the World™ app.
The iOS JRNY application has also been enhanced and is now compatible with the company’s Bowflex C6 bike for the first time. Like the JRNY user experience on Bowflex embedded screens, iOS members will now receive individualized workout recommendations on the “Just for You” home screen, which are powered by artificial intelligence (AI) and curated based on user history as well as post-workout feedback.
Workouts logged in the app or on a Bowflex bike – whether VeloCore®, C6 or C7 – will be synced to the member’s digital journal, which can now integrate with Apple Health®, providing members with a comprehensive way to track their fitness goals.
JRNY members will also be able to leverage off-product workouts for yoga, core, and strength sessions under the videos tab within the “Round Out Your Routine” section. These trainer-led videos will be available across all connected product with JRNY.
“Our users have been clear about what they need in a digital platform, and this overhaul, which is only the beginning of our vision for connected fitness, is our way of saying that we’re listening,” said Garry Wiseman, Chief Digital Officer, Nautilus, Inc. “We’ll continue updating the JRNY platform for our growing customer base as we know that we can help them plan and achieve their fitness goals through engaging experiences and actionable insights.”
Now available across a broad portfolio of Bowflex cardio products, the JRNY platform uses AI to create virtually an infinite number of personalized workouts based on an initial fitness assessment that learns and adapts as the member progresses — removing the guesswork from achieving a productive and satisfying workout. The JRNY platform offers voice-coached individualized workouts, trainer-led workouts, integration with other fitness apps, and access to the members’ own entertainment subscriptions like Netflix, Hulu, Amazon Prime Video and Disney+.*
Nautilus will continue to update the JRNY digital platform with fresh content, including video and trainer-led workouts, radio stations, Explore the World routes, and more to enhance the experience. Currently these updates are exclusively available on iOS, with Android updates anticipated as coming in spring 2021.
The immersive, JRNY digital experience is available on connected Bowflex® home fitness cardio equipment, including indoor cycling bikes, treadmills, and Max Trainer® cardio machines. The JRNY platform is available on Bowflex.com, for download in the Google Play and App Stores, and comes pre-loaded on the VeloCore and C7 bikes, Max Trainer M9, T7, T10 and T22 treadmills. Following the two-month trial period, a JRNY membership will cost $19.99 per month or $149 per year, or $9.99 per month on your own device, plus applicable taxes.
For more information about the JRNY digital fitness platform, please visit: https://www.bowflex/jrny.
*Requires a subscription to the streaming service, not included. Also requires a JRNY digital fitness platform membership to access the streaming service from the console.
About JRNY® Digital Fitness Platform
The JRNY® digital fitness platform coaches members to achieve their fitness goals by offering curated workout and entertainment options that stream while being coached, including voice-coached individualized workouts, trainer-led workouts, integration with other fitness apps, and access to the members’ own entertainment subscriptions like Netflix, Hulu, Amazon Prime Video and Disney+. The JRNY® platform uses artificial intelligence (AI) to create virtually an infinite number of personalized workouts that include motivation and praise and is based on an initial fitness assessment that learns and adapts as the member progresses — removing the guesswork from achieving a productive and satisfying workout. This immersive, digital experience is available on Bowflex.com, for download in the Google Play and App Stores, and is integrated with connected Bowflex® home fitness cardio equipment, including indoor cycling bikes, treadmills and Max Trainer® machines. Following the two-month trial period, a JRNY® membership will cost $19.99 per month or $149 per year, plus applicable taxes.
About Nautilus, Inc.
Nautilus, Inc. (NYSE:NLS) is the global leader in innovative home fitness solutions. The company’s diverse brand portfolio includes Bowflex®, Nautilus®, Schwinn®, and a broad selection of exercise bikes, cardio equipment, strength training products, as well as the JRNY® digital fitness platform. Nautilus, Inc. empowers healthier living through individualized connected fitness experiences. The company sells its products through direct and retail channels. Nautilus, Inc. uses the investor relations page of its website (www.nautilusinc.com/investors) to make information available to its investors and the market.
Contacts
Media Contacts:
Erin Beck
Nautilus, Inc.
360-859-5863
[email protected]
Carey Kerns
The Hoffman Agency
503-754-7975
[email protected]
Investor Relations:
John Mills
ICR, LLC
646-277-1254
[email protected]