VANCOUVER, WA -- Nautilus Inc. recorded a loss from continuing operations of $35.4 million in the third quarter of 2008, according to a release from the company.
In the third quarter of last year, the company had a loss from continuing operations of $14.4 million, including charges of $7.1 million related to a large bad debt and severance costs.
The loss for third quarter 2008 included a non-cash charge to record a deferred tax asset valuation allowance of $26.8 million as well as restructuring and other charges of $8.2 million.
Net sales from continuing operations for the third quarter were $93.7 million, a decrease of 18.7 percent from $115.3 million in the corresponding period last year. The net sales decline in the direct business was primarily due to the weak consumer and tight credit environments, according to Ed Bramson, chairman and CEO of Nautilus. The decline in the commercial business was primarily due to the suspension of sales of the commercial TreadClimber.
Inventory is down in third quarter 2008 from the same time last year, and the company expects inventory to be down for the year as well.
In a call with analysts today, Bramson said that the biggest opportunities for Nautilus are in the commercial and international sectors.
Bramson also said that even though steel prices are declining, the company probably won’t see the effects of that until fourth quarter or next year.