Nautilus, Inc. (NLS) has reported an 103.70 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $7.59 million, or $0.24 a share in the quarter, compared with $3.73 million, or $0.12 a share for the same period last year.
Revenue during the quarter grew 14.33 percent to $80.82 million from $70.69 million in the previous year period. Gross margin for the quarter contracted 270 basis points over the previous year period to 48.53 percent. Total expenses were 89.84 percent of quarterly revenues, down from 90.96 percent for the same period last year. This has led to an improvement of 112 basis points in operating margin to 10.16 percent.
Operating income for the quarter was $8.21 million, compared with $6.39 million in the previous year period.
Bruce M. Cazenave, chief executive officer, stated, "Our focus on generating profitable growth through product innovation, channel diversification, and disciplined management of expenses, enabled us to achieve double-digit growth in revenue along with a 29% increase in operating income to $8.2 million. While we faced challenging consumer response conditions that negatively impacted our Direct segment performance, we are pleased by the continued expansion of our Retail business segment. The Retail segment growth was driven by strong double-digit increases in the organic business as well as the addition of Octane Fitness, which also saw robust growth in the quarter. The challenging media conditions and lower response metrics trends that we had highlighted back in August for the Direct segment continued unabated for the quarter, which led the Company to defer media spending and lead generation activity significantly in order to maintain a profitable return on media investment. Our team proved once again that we can adapt quickly to the changing conditions and adjust media strategies and other tactics accordingly in order to maintain healthy margins and profitability."
Working capital declines
Nautilus, Inc. has witnessed a decline in the working capital over the last year. It stood at $78.66 million as at Sep. 30, 2016, down 16.35 percent or $15.38 million from $94.03 million on Sep. 30, 2015. Current ratio was at 2.06 as on Sep. 30, 2016, down from 2.87 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 3 days for the quarter from 11 days for the last year period. Days sales outstanding went up to 28 days for the quarter compared with 21 days for the same period last year.
Days inventory outstanding has decreased to 54 days for the quarter compared with 85 days for the previous year period. At the same time, days payable outstanding went down to 86 days for the quarter from 96 for the same period last year.
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