FORM 10-Q |
[x] | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
[ ] | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
NAUTILUS, INC. | ||
(Exact name of Registrant as specified in its charter) | ||
Washington | 94-3002667 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Item 1. | |||
Item 2. | |||
Item 3. | |||
Item 4. | |||
Item 1. | |||
Item 1A. | |||
Item 2. | |||
Item 6. | |||
As of | |||||||
March 31, 2016 | December 31, 2015 | ||||||
Assets | |||||||
Cash and cash equivalents | $ | 44,027 | $ | 30,778 | |||
Available-for-sale securities | 28,788 | 29,998 | |||||
Trade receivables, net of allowances of $1,015 and $918 | 24,386 | 45,155 | |||||
Inventories | 36,817 | 42,729 | |||||
Prepaids and other current assets | 7,917 | 6,888 | |||||
Income taxes receivable | 3,845 | 439 | |||||
Deferred income tax assets | — | 8,904 | |||||
Total current assets | 145,780 | 164,891 | |||||
Property, plant and equipment, net | 16,796 | 16,764 | |||||
Goodwill | 60,323 | 60,470 | |||||
Other intangible assets, net | 72,394 | 73,354 | |||||
Long-term deferred income tax assets | 99 | — | |||||
Other assets | 386 | 433 | |||||
Total assets | $ | 295,778 | $ | 315,912 | |||
Liabilities and Shareholders' Equity | |||||||
Trade payables | $ | 38,456 | $ | 61,745 | |||
Accrued liabilities | 10,582 | 13,027 | |||||
Warranty obligations | 4,397 | 4,753 | |||||
Note payable, current portion, net of unamortized debt issuance costs of $7 and $7 | 15,993 | 15,993 | |||||
Total current liabilities | 69,428 | 95,518 | |||||
Warranty obligations, non-current | 4,315 | 3,792 | |||||
Income taxes payable, non-current | 5,053 | 4,116 | |||||
Deferred income tax liabilities, non-current | 13,251 | 18,380 | |||||
Other long-term liabilities | 3,569 | 3,144 | |||||
Note payable, non-current, net of unamortized debt issuance costs of $26 and $29 | 59,974 | 63,971 | |||||
Total liabilities | 155,590 | 188,921 | |||||
Commitments and contingencies (Note 15) | |||||||
Shareholders' equity: | |||||||
Common stock - no par value, 75,000 shares authorized, 31,032 and 31,005 shares issued and outstanding | 2,661 | 796 | |||||
Retained earnings | 138,966 | 127,522 | |||||
Accumulated other comprehensive loss | (1,439 | ) | (1,327 | ) | |||
Total shareholders' equity | 140,188 | 126,991 | |||||
Total liabilities and shareholders' equity | $ | 295,778 | $ | 315,912 |
Three Months Ended March 31, | ||||||||
2016 | 2015 | |||||||
Net sales | $ | 120,928 | $ | 96,239 | ||||
Cost of sales | 54,584 | 42,350 | ||||||
Gross profit | 66,344 | 53,889 | ||||||
Operating expenses: | ||||||||
Selling and marketing | 35,179 | 28,399 | ||||||
General and administrative | 8,231 | 5,578 | ||||||
Research and development | 3,634 | 2,307 | ||||||
Total operating expenses | 47,044 | 36,284 | ||||||
Operating income | 19,300 | 17,605 | ||||||
Other income (expense): | ||||||||
Interest income | 54 | 44 | ||||||
Interest expense | (466 | ) | (5 | ) | ||||
Other, net | (124 | ) | (116 | ) | ||||
Total other expense, net | (536 | ) | (77 | ) | ||||
Income from continuing operations before income taxes | 18,764 | 17,528 | ||||||
Income tax expense | 7,178 | 6,669 | ||||||
Income from continuing operations | 11,586 | 10,859 | ||||||
Discontinued operations: | ||||||||
Loss from discontinued operations before income taxes | (124 | ) | (153 | ) | ||||
Income tax expense (benefit) from discontinued operations | 18 | (26 | ) | |||||
Loss from discontinued operations | (142 | ) | (127 | ) | ||||
Net income | $ | 11,444 | $ | 10,732 | ||||
Basic income per share from continuing operations | $ | 0.37 | $ | 0.35 | ||||
Basic loss per share from discontinued operations | — | — | ||||||
Basic net income per share(1) | $ | 0.37 | $ | 0.34 | ||||
Diluted income per share from continuing operations | $ | 0.37 | $ | 0.34 | ||||
Diluted loss per share from discontinued operations | — | — | ||||||
Diluted net income per share | $ | 0.37 | $ | 0.34 | ||||
Shares used in per share calculations: | ||||||||
Basic | 31,016 | 31,396 | ||||||
Diluted | 31,295 | 31,767 | ||||||
(1)May not add due to rounding. |
Three Months Ended March 31, | ||||||||
2016 | 2015 | |||||||
Net income | $ | 11,444 | $ | 10,732 | ||||
Other comprehensive income (loss): | ||||||||
Unrealized gain (loss) on available-for-sale securities, net of income tax expense of $12 and $0 | 18 | (1 | ) | |||||
Loss on derivative securities, effective portion, net of income tax benefit of $413 and $0 | (682 | ) | — | |||||
Foreign currency translation, net of income tax (benefit) expense of $(7) and $5 | 552 | (484 | ) | |||||
Other comprehensive loss | (112 | ) | (485 | ) | ||||
Comprehensive income | $ | 11,332 | $ | 10,247 |
Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
Cash flows from operating activities: | |||||||
Income from continuing operations | $ | 11,586 | $ | 10,859 | |||
Loss from discontinued operations | (142 | ) | (127 | ) | |||
Net income | 11,444 | 10,732 | |||||
Adjustments to reconcile net income to cash provided by operating activities: | |||||||
Depreciation and amortization | 1,935 | 910 | |||||
Provision for (benefit from) allowance for doubtful accounts | 97 | (108 | ) | ||||
Inventory lower-of-cost-or-market adjustments | — | 18 | |||||
Stock-based compensation expense | 701 | 301 | |||||
(Gain) loss on asset dispositions | 10 | (2 | ) | ||||
Deferred income taxes, net of valuation allowance | 5,342 | 6,102 | |||||
Excess tax (benefit) deficiency related to stock-based awards | (1,514 | ) | 2 | ||||
Changes in operating assets and liabilities: | |||||||
Trade receivables | 20,540 | 9,719 | |||||
Inventories | 7,366 | 4,930 | |||||
Prepaids and other current assets | (1,028 | ) | 1,763 | ||||
Income taxes receivable | (3,406 | ) | 27 | ||||
Trade payables | (20,949 | ) | (20,612 | ) | |||
Accrued liabilities, including warranty obligations | (1,854 | ) | (298 | ) | |||
Net cash provided by operating activities | 18,684 | 13,484 | |||||
Cash flows from investing activities: | |||||||
Purchases of available-for-sale securities | (9,112 | ) | (30,440 | ) | |||
Proceeds from maturities of available-for-sale securities | 10,323 | 3,680 | |||||
Proceeds from sales of available-for-sale securities | — | 2,354 | |||||
Acquisition of business, net of cash acquired | (3,469 | ) | — | ||||
Purchases of property, plant and equipment | (787 | ) | (590 | ) | |||
Net cash used in investing activities | (3,045 | ) | (24,996 | ) | |||
Cash flows from financing activities: | |||||||
Payments on long-term debt | (4,000 | ) | — | ||||
Payments for stock repurchases | — | (1,996 | ) | ||||
Proceeds from exercise of stock options | 35 | 407 | |||||
Tax payments related to stock award issuances | (221 | ) | (652 | ) | |||
Excess tax benefit (deficiency) related to stock-based awards | 1,514 | (2 | ) | ||||
Net cash used in financing activities | (2,672 | ) | (2,243 | ) | |||
Effect of exchange rate changes on cash and cash equivalents | 282 | (758 | ) | ||||
Increase (decrease) in cash and cash equivalents | 13,249 | (14,513 | ) | ||||
Cash and cash equivalents: | |||||||
Beginning of period | 30,778 | 45,206 | |||||
End of period | $ | 44,027 | $ | 30,693 | |||
Supplemental disclosure of cash flow information: | |||||||
Cash paid for interest | $ | (466 | ) | $ | (6 | ) | |
Cash paid for income taxes, net | (4,705 | ) | (332 | ) | |||
Supplemental disclosure of non-cash investing activities: | |||||||
Capital expenditures incurred but not yet paid | $ | 281 | $ | 64 |
Preliminary valuation at December 31, 2015 | Measurement period adjustments | Adjusted preliminary valuation at March 31, 2016 | |||||||||
Cash | $ | 7,759 | $ | — | $ | 7,759 | |||||
Accounts receivable | 12,507 | — | 12,507 | ||||||||
Inventories | 12,168 | 1,515 | 13,683 | ||||||||
Prepaid expenses | 1,028 | — | 1,028 | ||||||||
Deferred tax assets | 1,287 | (571 | ) | 716 | |||||||
Property, plant and equipment | 3,240 | — | 3,240 | ||||||||
Intangible assets | 63,100 | — | 63,100 | ||||||||
Total assets acquired | 101,089 | 944 | 102,033 | ||||||||
Accounts payable | 6,215 | — | 6,215 | ||||||||
Accrued liabilities | 1,614 | — | 1,614 | ||||||||
Warranty obligations | 5,550 | — | 5,550 | ||||||||
Deferred tax liabilities, non-current | 20,914 | — | 20,914 | ||||||||
Other non-current liabilities | 519 | — | 519 | ||||||||
Total liabilities assumed | 34,812 | — | 34,812 | ||||||||
Net identifiable assets acquired | 66,277 | 944 | 67,221 | ||||||||
Goodwill | 58,357 | (282 | ) | 58,075 | |||||||
Net assets acquired | $ | 124,634 | $ | 662 | $ | 125,296 |
Estimated fair value | Estimated useful life (years) | Weighted-average amortization period (years) | |||||
Trade name - Octane Fitness | $ | 23,000 | Indefinite | N/A | |||
Trade name - others | 2,600 | 10 - 15 | 12.5 | ||||
Patents | 12,800 | 11 - 24 | 18 | ||||
Customer relationships | 24,700 | 10 - 15 | 13 | ||||
$ | 63,100 |
Three Months Ended March 31, | |||||||||
2016 | 2015 | ||||||||
Net sales | $ | 120,928 | $ | 111,130 | |||||
Net income | 11,514 | 10,821 | |||||||
Net income per share: | |||||||||
Basic | $ | 0.37 | $ | 0.34 | |||||
Diluted | 0.37 | 0.34 |
Facilities Leases | |||
Balance, December 31, 2015 | $ | 300 | |
Payments | (75 | ) | |
Balance, March 31, 2016 | $ | 225 |
• | Level 1 - observable inputs such as quoted prices (unadjusted) in active liquid markets for identical securities as of the reporting date; |
• | Level 2 - other significant directly or indirectly observable inputs, including quoted prices for similar securities, interest rates, prepayment speeds and credit risk; or observable market prices in markets with insufficient volume and/or infrequent transactions; and |
• | Level 3 - significant inputs that are generally unobservable inputs for which there is little or no market data available, including our own assumptions in determining fair value. |
March 31, 2016 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Cash Equivalents | ||||||||||||||||
Money market funds | $ | 9,007 | $ | — | $ | — | $ | 9,007 | ||||||||
Commercial paper | — | 5,997 | — | 5,997 | ||||||||||||
Corporate bonds | — | 4,095 | — | 4,095 | ||||||||||||
Total cash equivalents | 9,007 | 10,092 | — | 19,099 | ||||||||||||
Available-for-Sale Securities | ||||||||||||||||
Certificates of deposit(1) | — | 27,064 | — | 27,064 | ||||||||||||
Corporate bonds | — | 1,724 | — | 1,724 | ||||||||||||
Total available-for-sale securities | — | 28,788 | — | 28,788 | ||||||||||||
Total assets measured at fair value | $ | 9,007 | $ | 38,880 | $ | — | $ | 47,887 | ||||||||
Derivatives | ||||||||||||||||
Interest rate swap contract | $ | — | $ | (1,095 | ) | $ | — | $ | (1,095 | ) | ||||||
Total liabilities measured at fair value | $ | — | $ | (1,095 | ) | $ | — | $ | (1,095 | ) |
December 31, 2015 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Cash Equivalents | ||||||||||||||||
Money market funds | $ | 1 | $ | — | $ | — | $ | 1 | ||||||||
Corporate bonds | — | 733 | — | 733 | ||||||||||||
Total cash equivalents | 1 | 733 | — | 734 | ||||||||||||
Available-for-Sale Securities | ||||||||||||||||
Certificates of deposit(1) | — | 25,234 | — | 25,234 | ||||||||||||
Corporate bonds | — | 4,764 | — | 4,764 | ||||||||||||
Total available-for-sale securities | — | 29,998 | — | 29,998 | ||||||||||||
Total assets measured at fair value | $ | 1 | $ | 30,731 | $ | — | $ | 30,732 |
Balance Sheet Classification | As of | |||||||||
March 31, 2016 | December 31, 2015 | |||||||||
Derivatives instruments designated as cash flow hedges: | ||||||||||
Interest rate swap contract | Accrued liabilities | $ | 230 | $ | — | |||||
Other long-term liabilities | 865 | — | ||||||||
$ | 1,095 | $ | — |
Statement of Operations Classification | Three Months Ended March 31, | |||||||||
2016 | 2015 | |||||||||
Derivatives instruments designated as cash flow hedges: | ||||||||||
Loss recognized in other comprehensive income before reclassifications | --- | $ | (810 | ) | $ | — | ||||
Loss reclassified from accumulated other comprehensive income to earnings for the effective portion | Interest expense | $ | (128 | ) | $ | — |
As of | |||||||
March 31, 2016 | December 31, 2015 | ||||||
Finished goods | $ | 33,265 | $ | 39,115 | |||
Parts and components | 3,552 | 3,614 | |||||
Total inventories | $ | 36,817 | $ | 42,729 |
Estimated Useful Life (in years) | As of | ||||||||||
March 31, 2016 | December 31, 2015 | ||||||||||
Automobiles | 5 | to | 6 | $ | 139 | $ | 139 | ||||
Leasehold improvements | 5 | to | 20 | 3,432 | 3,397 | ||||||
Computer software and equipment | 3 | to | 7 | 23,444 | 23,991 | ||||||
Machinery and equipment | 3 | to | 5 | 11,433 | 10,867 | ||||||
Furniture and fixtures | 5 | 1,601 | 1,605 | ||||||||
Work in progress(1) | N/A | 2,060 | 1,655 | ||||||||
Total cost | 42,109 | 41,654 | |||||||||
Accumulated depreciation | (25,313 | ) | (24,890 | ) | |||||||
Total property, plant and equipment, net | $ | 16,796 | $ | 16,764 |
Direct | Retail | Total | |||||||||
Balance, January 1, 2015 | $ | 2,520 | $ | — | $ | 2,520 | |||||
Currency exchange rate adjustment | (407 | ) | — | (407 | ) | ||||||
Business acquisition (Note 2) | — | 58,357 | 58,357 | ||||||||
Balance, December 31, 2015 | 2,113 | 58,357 | 60,470 | ||||||||
Currency exchange rate adjustment | 147 | (12 | ) | 135 | |||||||
Business acquisition (Note 2) - measurement period adjustments | — | (282 | ) | (282 | ) | ||||||
Balance, March 31, 2016 | $ | 2,260 | $ | 58,063 | $ | 60,323 |
Estimated Useful Life (in years) | As of | ||||||||||
March 31, 2016 | December 31, 2015 | ||||||||||
Indefinite-lived trademarks | N/A | $ | 32,052 | $ | 32,052 | ||||||
Definite-lived trademarks | 10 | to | 15 | 2,600 | 2,600 | ||||||
Patents | 8 | to | 24 | 31,487 | 31,487 | ||||||
Customer relationships | 10 | to | 15 | 24,700 | 24,700 | ||||||
90,839 | 90,839 | ||||||||||
Accumulated amortization - definite-lived intangible assets | (18,445 | ) | (17,485 | ) | |||||||
Other intangible assets, net | $ | 72,394 | $ | 73,354 |
Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
Amortization expense | $ | 960 | $ | 290 |
Remainder of 2016 | $ | 2,592 | |
2017 | 3,255 | ||
2018 | 3,162 | ||
2019 | 3,132 | ||
2020 | 3,106 | ||
Thereafter | 25,095 | ||
$ | 40,342 |
As of | |||||||
March 31, 2016 | December 31, 2015 | ||||||
Payroll and related liabilities | $ | 3,916 | $ | 6,556 | |||
Other | 6,666 | 6,471 | |||||
Total accrued liabilities | $ | 10,582 | $ | 13,027 |
Three Months Ended March 31, | ||||||||
2016 | 2015 | |||||||
Balance, beginning of period | $ | 8,545 | $ | 2,246 | ||||
Accruals | 1,530 | 815 | ||||||
Payments | (1,363 | ) | (564 | ) | ||||
Balance, end of period | $ | 8,712 | $ | 2,497 |
Unrealized Gain (Loss) on Available-for-Sale Securities | Loss on Derivative Securities (Effective Portion) | Foreign Currency Translation Adjustments | Accumulated Other Comprehensive Loss | ||||||||||||
Balance, December 31, 2015 | $ | (16 | ) | $ | — | $ | (1,311 | ) | $ | (1,327 | ) | ||||
Current period other comprehensive income (loss) before reclassifications | 18 | (810 | ) | 552 | (240 | ) | |||||||||
Reclassification of amounts to earnings | — | 128 | — | 128 | |||||||||||
Net other comprehensive income (loss) during period | 18 | (682 | ) | 552 | (112 | ) | |||||||||
Balance, March 31, 2016 | $ | 2 | $ | (682 | ) | $ | (759 | ) | $ | (1,439 | ) |
Unrealized Loss on Available-for-Sale Securities | Foreign Currency Translation Adjustments | Accumulated Other Comprehensive Loss | |||||||||
Balance, December 31, 2014 | $ | (18 | ) | $ | (290 | ) | $ | (308 | ) | ||
Current period other comprehensive loss | (1 | ) | (484 | ) | (485 | ) | |||||
Balance, March 31, 2015 | $ | (19 | ) | $ | (774 | ) | $ | (793 | ) |
Quarter Ended | Number of Shares | Repurchased Amount | Average Price Per Share | |||||
March 31, 2015 | 133,877 | $ | 1,995,982 | $14.91 | ||||
September 30, 2015 | 577,831 | 9,571,545 | 16.56 | |||||
Totals to Date | 711,708 | $ | 11,567,527 | $16.25 |
Three Months Ended March 31, | |||||
2016 | 2015 | ||||
Shares used to calculate basic income per share | 31,016 | 31,396 | |||
Dilutive effect of outstanding stock options, performance stock units and restricted stock units | 279 | 371 | |||
Shares used to calculate diluted income per share | 31,295 | 31,767 |
Three Months Ended March 31, | |||||
2016 | 2015 | ||||
Stock options | 11 | 25 | |||
Performance stock units | — | 163 |
Three Months Ended March 31, | ||||||||
2016 | 2015 | |||||||
Net sales: | ||||||||
Direct | $ | 81,234 | $ | 74,057 | ||||
Retail | 38,805 | 21,290 | ||||||
Royalty | 889 | 892 | ||||||
Consolidated net sales | $ | 120,928 | $ | 96,239 | ||||
Contribution: | ||||||||
Direct | $ | 21,144 | $ | 19,571 | ||||
Retail | 3,944 | 1,500 | ||||||
Royalty | 870 | 892 | ||||||
Consolidated contribution | $ | 25,958 | $ | 21,963 | ||||
Reconciliation of consolidated contribution to income from continuing operations: | ||||||||
Consolidated contribution | $ | 25,958 | $ | 21,963 | ||||
Amounts not directly related to segments: | ||||||||
Operating expenses | (6,658 | ) | (4,358 | ) | ||||
Other expense, net | (536 | ) | (77 | ) | ||||
Income tax expense | (7,178 | ) | (6,669 | ) | ||||
Income from continuing operations | $ | 11,586 | $ | 10,859 |
Three Months Ended March 31, | Change | |||||||||||||
2016 | 2015 | $ | % | |||||||||||
Net sales | $ | 120,928 | $ | 96,239 | $ | 24,689 | 25.7 | % | ||||||
Cost of sales | 54,584 | 42,350 | 12,234 | 28.9 | % | |||||||||
Gross profit | 66,344 | 53,889 | 12,455 | 23.1 | % | |||||||||
Operating expenses: | ||||||||||||||
Selling and marketing | 35,179 | 28,399 | 6,780 | 23.9 | % | |||||||||
General and administrative | 8,231 | 5,578 | 2,653 | 47.6 | % | |||||||||
Research and development | 3,634 | 2,307 | 1,327 | 57.5 | % | |||||||||
Total operating expenses | 47,044 | 36,284 | 10,760 | 29.7 | % | |||||||||
Operating income | 19,300 | 17,605 | 1,695 | 9.6 | % | |||||||||
Other income (expense): | ||||||||||||||
Interest income | 54 | 44 | 10 | |||||||||||
Interest expense | (466 | ) | (5 | ) | (461 | ) | ||||||||
Other, net | (124 | ) | (116 | ) | (8 | ) | ||||||||
Total other expense, net | (536 | ) | (77 | ) | (459 | ) | ||||||||
Income from continuing operations before income taxes | 18,764 | 17,528 | 1,236 | |||||||||||
Income tax expense | 7,178 | 6,669 | 509 | |||||||||||
Income from continuing operations | 11,586 | 10,859 | 727 | |||||||||||
Loss from discontinued operations, net of income taxes | (142 | ) | (127 | ) | (15 | ) | ||||||||
Net income | $ | 11,444 | $ | 10,732 | $ | 712 |
Three Months Ended March 31, | Change | |||||||||||||
2016 | 2015 | $ | % | |||||||||||
Net sales: | ||||||||||||||
Direct | $ | 81,234 | $ | 74,057 | $ | 7,177 | 9.7 | % | ||||||
Retail | 38,805 | 21,290 | 17,515 | 82.3 | % | |||||||||
Royalty | 889 | 892 | (3 | ) | (0.3 | )% | ||||||||
$ | 120,928 | $ | 96,239 | $ | 24,689 | 25.7 | % | |||||||
Cost of sales: | ||||||||||||||
Direct | $ | 27,372 | $ | 25,747 | $ | 1,625 | 6.3 | % | ||||||
Retail | 27,193 | 16,603 | 10,590 | 63.8 | % | |||||||||
Royalty | 19 | — | 19 | — | % | |||||||||
$ | 54,584 | $ | 42,350 | $ | 12,234 | 28.9 | % | |||||||
Gross profit: | ||||||||||||||
Direct | $ | 53,862 | $ | 48,310 | $ | 5,552 | 11.5 | % | ||||||
Retail | 11,612 | 4,687 | 6,925 | 147.7 | % | |||||||||
Royalty | 870 | 892 | (22 | ) | (2.5 | )% | ||||||||
$ | 66,344 | $ | 53,889 | $ | 12,455 | 23.1 | % | |||||||
Gross margin: | ||||||||||||||
Direct | 66.3 | % | 65.2 | % | 110 | basis points | ||||||||
Retail | 29.9 | % | 22.0 | % | 790 | basis points |
Three Months Ended March 31, | Change | |||||||||||||
2016 | 2015 | $ | % | |||||||||||
Direct net sales: | ||||||||||||||
Cardio products(1) | $ | 77,092 | $ | 70,034 | $ | 7,058 | 10.1 | % | ||||||
Strength products(2) | 4,142 | 4,023 | 119 | 3.0 | % | |||||||||
81,234 | 74,057 | 7,177 | 9.7 | % | ||||||||||
Retail net sales: | ||||||||||||||
Cardio products(1) | 29,953 | 13,886 | 16,067 | 115.7 | % | |||||||||
Strength products(2) | 8,852 | 7,404 | 1,448 | 19.6 | % | |||||||||
38,805 | 21,290 | 17,515 | 82.3 | % | ||||||||||
Royalty | 889 | 892 | (3 | ) | (0.3 | )% | ||||||||
$ | 120,928 | $ | 96,239 | $ | 24,689 | 25.7 | % | |||||||
(1) Cardio products include: TreadClimber®, Max Trainer®, Zero Runner®, treadmills, exercise bikes and ellipticals. | ||||||||||||||
(2) Strength products include: home gyms, selectorized dumbbells, kettlebell weights and accessories. |
Dollars in thousands | Three Months Ended March 31, | Change | |||||
2016 | 2015 | $ | % | ||||
Selling and marketing | $35,179 | $28,399 | $6,780 | 23.9% | |||
As % of net sales | 29.1% | 29.5% |
Dollars in thousands | Three Months Ended March 31, | Change | |||||
2016 | 2015 | $ | % | ||||
Media advertising | $17,509 | $14,242 | $3,267 | 22.9% |
Dollars in thousands | Three Months Ended March 31, | Change | |||||
2016 | 2015 | $ | % | ||||
General and administrative | $8,231 | $5,578 | $2,653 | 47.6% | |||
As % of net sales | 6.8% | 5.8% |
Dollars in thousands | Three Months Ended March 31, | Change | |||||
2016 | 2015 | $ | % | ||||
Research and development | $3,634 | $2,307 | $1,327 | 57.5% | |||
As % of net sales | 3.0% | 2.4% |
Dollars in thousands | Three Months Ended March 31, | Change | |||||
2016 | 2015 | $ | % | ||||
Income tax expense | $7,178 | $6,669 | $509 | 7.6% | |||
Effective tax rate | 38.3% | 38.0% |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk |
Item 1. | Legal Proceedings |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
Period | (a) Total Number of Shares Purchased(2) | (b) Average Price Paid per Share | (c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1) | (d) Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs(1) |
January 1 - January 31 | — | $— | — | $3,432,473 |
February 1 - February 29 | 12,228 | 18.06 | — | 3,432,473 |
March 1 - March 31 | — | — | — | 3,432,473 |
Total | 12,228 | $18.06 | — | $3,432,473 |
(1) On November 3, 2014, our Board of Directors approved a stock repurchase program that authorizes us to repurchase up to $15.0 million of our outstanding common stock from time to time over a period of 24 months. The repurchase program expires November 3, 2016. | ||||
(2) Consists of shares withheld from the vesting portions of stock unit awards made to our executive officers to satisfy the executives' tax withholding obligations incident to such vesting. |
Exhibit No. | Description | |
31.1 | Certification of Chief Executive Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended. | |
31.2 | Certification of Chief Financial Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended. | |
32.1 | Certification of Chief Executive Officer and Chief Financial Officer pursuant to Rule 13a-14(b) of the Securities and Exchange Act of 1934, as amended, and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
101 | The following financial statements from Nautilus, Inc.'s quarterly report on Form 10-Q for the three months ended March 31, 2016 formatted in XBRL (eXtensible Business Reporting Language): (i) Condensed Consolidated Balance Sheets (unaudited), (ii) Condensed Consolidated Statements of Operations (unaudited), (iii) Condensed Consolidated Statements of Comprehensive Income (unaudited), (iv) Condensed Consolidated Statements of Cash Flows (unaudited) and (v) Notes to Condensed Consolidated Financial Statements (unaudited). |
NAUTILUS, INC. | |||
(Registrant) | |||
May 9, 2016 | By: | /S/ Bruce M. Cazenave | |
Date | Bruce M. Cazenave | ||
Chief Executive Officer (Principal Executive Officer) |
NAUTILUS, INC. | |||
(Registrant) | |||
May 9, 2016 | By: | /S/ Sidharth Nayar | |
Date | Sidharth Nayar | ||
Chief Financial Officer (Principal Financial and Accounting Officer) |
1. | I have reviewed this quarterly report on Form 10-Q of Nautilus, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
May 9, 2016 | By: | /s/ Bruce M. Cazenave | |
Date | Bruce M. Cazenave | ||
Chief Executive Officer (Principal Executive Officer) |
1. | I have reviewed this quarterly report on Form 10-Q of Nautilus, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
May 9, 2016 | By: | /s/ Sidharth Nayar | |
Date | Sidharth Nayar | ||
Chief Financial Officer (Principal Financial and Accounting Officer) |
May 9, 2016 | By: | /s/ Bruce M. Cazenave | |
Date | Bruce M. Cazenave | ||
Chief Executive Officer (Principal Executive Officer) |
May 9, 2016 | By: | /s/ Sidharth Nayar | |
Date | Sidharth Nayar | ||
Chief Financial Officer (Principal Financial and Accounting Officer) |
Document and Entity Information - shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Apr. 30, 2016 |
|
Document and Entity Information [Abstract] | ||
Entity Registrant Name | NAUTILUS, INC. | |
Entity Central Index Key | 0001078207 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2016 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 31,032,496 |
Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) - USD ($) $ in Thousands |
Mar. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Allowance for doubtful trade receivables | $ 1,015 | $ 918 |
Unamortized debt issuance costs, current | 7 | 7 |
Unamortized debt issuance costs, long-term | $ 26 | $ 29 |
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized | 75,000,000 | 75,000,000 |
Common stock, shares issued | 31,032,000 | 31,005,000 |
Common stock, shares outstanding | 31,032,000 | 31,005,000 |
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 11,444 | $ 10,732 |
Other comprehensive income (loss): | ||
Unrealized gain (loss) on available-for-sale securities, net of income tax expense of $12 and $0 | 18 | (1) |
Loss on derivative securities, effective portion, net of income tax benefit of $413 and $0 | (682) | 0 |
Foreign currency translation, net of income tax (benefit) expense of $(7) and $5 | 552 | (484) |
Net other comprehensive income (loss) during period | (112) | (485) |
Comprehensive income | $ 11,332 | $ 10,247 |
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (Parentheticals) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Statement of Comprehensive Income [Abstract] | ||
Unrealized gain (loss) on marketable securities, tax expense | $ 12 | $ 0 |
Gain (loss) on derivatives, tax expense | 413 | 0 |
Foreign currency translation, tax expense | $ (7) | $ 5 |
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Cash flows from operating activities: | ||
Income from continuing operations | $ 11,586 | $ 10,859 |
Loss from discontinued operations | (142) | (127) |
Net income | 11,444 | 10,732 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Depreciation and amortization | 1,935 | 910 |
Provision for (benefit from) allowance for doubtful accounts | 97 | (108) |
Inventory lower-of-cost-or-market adjustments | 0 | 18 |
Stock-based compensation expense | 701 | 301 |
(Gain) loss on asset dispositions | 10 | (2) |
Deferred income taxes, net of valuation allowance | 5,342 | 6,102 |
Excess tax (benefit) deficiency related to stock-based awards | (1,514) | 2 |
Changes in operating assets and liabilities: | ||
Trade receivables | 20,540 | 9,719 |
Inventories | 7,366 | 4,930 |
Prepaids and other current assets | (1,028) | 1,763 |
Income taxes receivable | (3,406) | 27 |
Trade payables | (20,949) | (20,612) |
Accrued liabilities, including warranty obligations | (1,854) | (298) |
Net cash provided by operating activities | 18,684 | 13,484 |
Cash flows from investing activities: | ||
Purchases of available-for-sale securities | (9,112) | (30,440) |
Proceeds from maturities of available-for-sale securities | 10,323 | 3,680 |
Proceeds from sales of available-for-sale securities | 0 | 2,354 |
Payments to Acquire Businesses, Gross | (3,469) | 0 |
Purchases of property, plant and equipment | (787) | (590) |
Net cash used in investing activities | (3,045) | (24,996) |
Cash flows from financing activities: | ||
Payments on long-term debt | (4,000) | 0 |
Payments for stock repurchases | 0 | (1,996) |
Proceeds from exercise of stock options | 35 | 407 |
Tax payments related to stock award issuances | (221) | (652) |
Excess tax benefit (deficiency) related to stock-based awards | 1,514 | (2) |
Net cash used in financing activities | (2,672) | (2,243) |
Effect of exchange rate changes on cash and cash equivalents | 282 | (758) |
Increase (decrease) in cash and cash equivalents | 13,249 | (14,513) |
Cash and cash equivalents: | ||
Beginning of period | 30,778 | 45,206 |
End of period | 44,027 | 30,693 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | (466) | (6) |
Cash paid for income taxes, net | (4,705) | (332) |
Supplemental disclosure of non-cash investing activities: | ||
Capital expenditures incurred but not yet paid | $ 281 | $ 64 |
General Information |
3 Months Ended |
---|---|
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General Information | GENERAL INFORMATION Basis of Consolidation and Presentation The accompanying condensed consolidated financial statements present the financial position, results of operations and cash flows of Nautilus, Inc. and its subsidiaries, all of which are wholly owned. Intercompany transactions and balances have been eliminated in consolidation. The accompanying condensed consolidated financial statements have not been audited. We have condensed or omitted certain information and footnote disclosures normally included in financial statements presented in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Management believes the disclosures contained herein are adequate to make the information presented not misleading. However, these condensed consolidated financial statements should be read in conjunction with our consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2015 (the “2015 Form 10-K”). The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Further information regarding significant estimates can be found in our 2015 Form 10-K. In the opinion of management, the accompanying condensed consolidated financial statements reflect all adjustments necessary to present fairly our financial position as of March 31, 2016 and December 31, 2015, and our results of operations, comprehensive income and cash flows for the three months ended March 31, 2016 and 2015. Interim results are not necessarily indicative of results for a full year. Our revenues typically vary seasonally and this seasonality can have a significant effect on operating results, inventory levels and working capital needs. Unless indicated otherwise, all information regarding our operating results pertain to our continuing operations. New Accounting Pronouncements ASU 2016-10 In April 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-10, "Revenue from Contracts with Customers (Topic 606) - Identifying Performance Obligations and Licensing." ASU 2016-10 clarifies aspects of Topic 606 related to identifying performance obligations and the licensing implementation guidance, while retaining the related core principles for those areas. The effective date and transition requirements for ASU 2016-10 are the same as the effective date and transition requirements in Topic 606 (ASU 2014-09). While we do not expect the adoption of ASU 2016-10 to have a material effect on our business, we are still evaluating any potential impact that adoption of ASU 2016-10 may have on our financial position, results of operations or cash flows. ASU 2016-09 In March 2016, the FASB issued ASU 2016-09, "Compensation - Stock Compensation (Topic 718) - Improvements to Employee Share-Based Payment Accounting." ASU 2016-09 simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 is effective for public companies' annual periods, including interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted subject to certain requirements, and the method of application (i.e., retrospective, modified retrospective or prospective) depends on the transaction area that is being amended. We do not expect the adoption of ASU 2016-09 to have a material effect on our financial position, results of operations or cash flows. ASU 2016-02 In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)." ASU 2016-02 replaces the existing guidance in Accounting Standards Codification ("ASC") 840, Leases. The new standards would require companies and other organizations to include lease obligations on their balance sheets, including a dual approach for lessee accounting under which a lessee would account for leases as finance leases or operating leases. Both finance leases and operating leases will result in the lessee recognizing a right-of-use ("ROU") asset and a corresponding lease liability. For finance leases the lessee would recognize interest expense and amortization of the ROU asset, and for operating leases the lessee would recognize a straight-line total lease expense. ASU 2016-02 is effective for public companies' annual periods, and interim periods within those fiscal years, beginning after December 15, 2018. We are currently evaluating any potential impact that adoption of ASU 2016-02 may have on our financial position, results of operations or cash flows. ASU 2015-17 In November 2015, the FASB issued ASU 2015-17, "Income Taxes (Topic 740) - Balance Sheet Classification of Deferred Taxes." ASU 2015-17 simplifies the presentation of deferred income taxes, and requires that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The amendments apply to all entities that present a classified statement of financial position, and aligns the presentation of deferred income tax assets and liabilities with International Financial Reporting Standards ("IFRS") IAS 1. ASU 2015-17 is effective for public companies' financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early application is permitted and may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. Our early adoption of ASU 2015-17 in January 2016 did not have a material effect on our financial position, results of operations or cash flows. We are applying ASU 2015-17 on a prospective basis to all deferred tax liabilities and assets, and prior periods have not been retrospectively adjusted. ASU 2015-16 In September 2015, the FASB issued ASU 2015-16, "Business Combinations (Topic 805) - Simplifying the Accounting for Measurement-Period Adjustments." ASU 2015-16 simplifies the presentation of provisional amounts reported for items in a business combination for which the accounting is incomplete by the end of the reporting period in which the combination occurs and during the measurement period have an adjustment to provisional amounts recognized. The amendments in ASU 2015-16 require an entity to recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined, and to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. ASU 2015-16 is effective for public companies' financial statements issued for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2015 on a prospective basis. Our adoption of ASU 2015-16 as of January 2016 did not have a material effect on our financial position, results of operations or cash flows. ASU 2015-11 In July 2015, the FASB issued ASU 2015-11, “Simplifying the Measurement of Inventory (Topic 330).” ASU 2015-11 simplifies the accounting for the valuation of all inventory not accounted for using the last-in, first-out (“LIFO”) method by prescribing inventory be valued at the lower of cost and net realizable value. ASU 2015-11 is effective for public companies' annual periods, including interim periods within those fiscal years, beginning after December 15, 2016 on a prospective basis. Early adoption is permitted. We do not expect the adoption of ASU 2015-11 to have a material effect on our financial position, results of operations or cash flows. ASU 2015-05 In April 2015, the FASB issued ASU 2015-05, “Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40).” ASU 2015-05 provides guidance regarding the accounting for a customer's fees paid in a cloud computing arrangement, specifically about whether a cloud computing arrangement includes a software license, and if so, how to account for the software license. ASU 2015-05 was effective for public companies' annual periods, including interim periods, beginning after December 15, 2015. Our adoption of ASU 2015-05 in January 2016 did not have a material effect on our financial position, results of operations or cash flows. ASU 2015-03 In April 2015, the FASB issued ASU 2015-03, “Interest - Imputation of Interest (Subtopic 835-30).” ASU 2015-03 simplifies the presentation of debt issuance costs. ASU 2015-03 is effective, as amended, for public company financial statements issued for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption was permitted for financial statements that have not been previously issued. Our adoption of ASU 2015-03 as of December 31, 2015 did not have a material effect on our financial position, results of operations or cash flows. ASU 2014-12 In June 2014, the FASB issued ASU No. 2014-12, "Compensation - Stock Compensation (Topic 718)." ASU No. 2014-12 addresses accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period. ASU 2014-12 indicates that, in such situations, the performance target should be treated as a performance condition and, accordingly, the performance target should not be reflected in estimating the grant-date fair value of the award. Instead, compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved. ASU 2014-12 is effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Our adoption of ASU 2014-12 in January 2016 did not have a material effect on our financial position, results of operations or cash flows. ASU 2014-09 In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers." ASU 2014-09 clarifies the principles for recognizing revenue and develops a common revenue standard for U.S. GAAP and the International Accounting Standards Board that: • removes inconsistencies and weaknesses in revenue requirements; • provides a more robust framework for addressing revenue issues; • improves comparability of revenue recognition practices across entities, industries, jurisdictions and capital markets; • provides more useful information to users of financial statements through improved disclosure requirements; and • simplifies the preparation of financial statements by reducing the number of requirements to which an entity must refer. ASU 2014-09 is effective, as amended, for annual and interim periods beginning on or after December 15, 2017. While we do not expect the adoption of ASU 2014-09 to have a material effect on our business, we are still evaluating any potential impact that adoption of ASU 2014-09 may have on our financial position, results of operations or cash flows. |
Discontinued Operations |
3 Months Ended | ||||||||||||||||||||||||
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Mar. 31, 2016 | |||||||||||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||
Discontinued Operations | DISCONTINUED OPERATIONS There was no revenue related to discontinued operations for the three months ended March 31, 2016 or the year ended December 31, 2015. However, we continue to have legal and accounting expenses as we work with authorities on final deregistration of certain foreign entities and product liability expenses associated with product previously sold into the Commercial channel. The following table summarizes liabilities for exit costs related to discontinued operations, included in accrued liabilities and other long-term liabilities in our Condensed Consolidated Balance Sheets (in thousands):
We expect the lease obligations to be paid out through 2016. |
Fair Value Measurements |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | FAIR VALUE MEASUREMENTS Factors used in determining the fair value of financial assets and liabilities are summarized into three broad categories:
Assets and liabilities measured at fair value on a recurring basis as of March 31, 2016 and December 31, 2015 were as follows (in thousands):
(1) All certificates of deposit are within current FDIC insurance limits. We did not have any liabilities measured at fair value on a recurring basis as of December 31, 2015. For our assets measured at fair value on a recurring basis, we recognize transfers between levels at the actual date of the event or change in circumstance that caused the transfer. There were no transfers between levels during the three months ended March 31, 2016, nor for the year ended December 31, 2015. We did not have any changes to our valuation techniques during the three months ended March 31, 2016, nor for the year ended December 31, 2015. We classify our marketable securities as available-for-sale and, accordingly, record them at fair value. Level 1 investment valuations are obtained from real-time quotes for transactions in active exchange markets involving identical assets. Level 2 investment valuations are obtained from inputs, other than quoted market prices in active markets, that are directly or indirectly observable in the marketplace and quoted prices in markets with limited volume or infrequent transactions. The factors or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. Unrealized holding gains and losses are excluded from earnings and are reported net of tax in comprehensive income until realized. The fair value of our interest rate swap contract is calculated as the present value of estimated future cash flows using discount factors derived from relevant Level 2 market inputs, including forward curves and volatility levels. We recognize or disclose the fair value of certain assets, such as non-financial assets, primarily property, plant and equipment, goodwill, other intangible assets and certain other long-lived assets in connection with impairment evaluations. All of our nonrecurring valuations use significant unobservable inputs and therefore fall under Level 3 of the fair value hierarchy. We did not perform any valuations on assets or liabilities that are valued at fair value on a nonrecurring basis during the first three months of 2016. During the fourth quarter of 2015, we performed our annual goodwill and indefinite-lived trade names impairment analyses effective as of October 1, 2015. During the three months ended March 31, 2016 and the year ended December 31, 2015, we did not record any other-than-temporary impairments on our financial assets required to be measured at fair value on a nonrecurring basis. |
Inventories |
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Inventories | INVENTORIES Inventories are stated at the lower of cost or market, with cost determined based on the first-in, first-out method. Our inventories consisted of the following (in thousands):
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Property, Plant and Equipment |
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Property, Plant and Equipment | PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consisted of the following (in thousands):
(1) Work in progress includes production tooling and internal use software development. |
Goodwill and Other Intangible Assets |
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Goodwill and Other Intangible Assets | GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill The rollforward of goodwill was as follows (in thousands):
Other Intangible Assets Other intangible assets consisted of the following (in thousands):
Amortization expense was as follows (in thousands):
Future amortization of definite-lived intangible assets is as follows (in thousands):
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Accrued Liabilities |
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Accrued Liabilities | ACCRUED LIABILITIES Accrued liabilities consisted of the following (in thousands):
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Product Warranties |
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Product Warranties | PRODUCT WARRANTIES Our products carry defined warranties for defects in materials or workmanship which, according to their terms, generally obligate us to pay the costs of supplying and shipping replacement parts to customers and, in certain instances, pay for labor and other costs to service products. Outstanding product warranty periods range from thirty days to, in limited circumstances, the lifetime of certain product components. We record a liability at the time of sale for the estimated costs of fulfilling future warranty claims. If necessary, we adjust the liability for specific warranty-related matters when they become known and are reasonably estimable. Estimated warranty expense is included in cost of sales, based on historical warranty claim experience and available product quality data. Warranty expense is affected by the performance of new products, significant manufacturing or design defects not discovered until after the product is delivered to the customer, product failure rates, and higher or lower than expected repair costs. If warranty expense differs from previous estimates, or if circumstances change such that the assumptions inherent in previous estimates are no longer valid, the amount of product warranty obligations is adjusted accordingly. Changes in our product warranty obligations were as follows (in thousands):
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Accumulated Other Comprehensive Income (Loss) |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Accumulated other comprehensive income (loss), net of applicable taxes, reported on our Condensed Consolidated Balance Sheets consists of unrealized holding gains and losses on available-for-sale securities, effective portions of gains and losses of derivative securities designated as cash flow hedges, and foreign currency translation adjustments. The following tables set forth the changes in accumulated other comprehensive income (loss), net of tax (in thousands):
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Income Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Per Share | INCOME PER SHARE Basic per share amounts were computed using the weighted average number of common shares outstanding. Diluted per share amounts were calculated using the number of basic weighted average shares outstanding increased by dilutive potential common shares related to stock-based awards, as determined by the treasury stock method. The weighted average numbers of shares outstanding used to compute income per share were as follows (in thousands):
The weighted average numbers of shares outstanding listed in the table below were anti-dilutive and excluded from the computation of diluted income per share because, in the case of stock options, the average market price did not exceed the exercise price, and for the performance stock units, because these shares are subject to performance conditions that had not been met. These shares may be dilutive potential common shares in the future (in thousands):
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Stock Repurchase Program |
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Stock Repurchase Program | STOCK REPURCHASE PROGRAM On November 3, 2014, our Board of Directors approved a stock repurchase program that authorized us to repurchase up to $15.0 million of our outstanding common stock from time to time over a period of 24 months. The repurchase program expires November 3, 2016. Share repurchases are funded with existing cash balances, and the repurchased shares are retired and returned to unissued authorized shares. There were no repurchases during the three months ended March 31, 2016. Repurchases pursuant to the program were as follows:
As of March 31, 2016, $3.4 million remains available for future repurchases. |
Segment and Enterprise-wide Information |
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Segment and Enterprise-wide Information | SEGMENT AND ENTERPRISE-WIDE INFORMATION We operate in three segments - Direct, Retail, and Commercial and Specialty. Based on the aggregation criteria of ASC 280-10, we determined that two of the operating segments (Retail and Commercial and Specialty) can be aggregated due to these segments having similar economic and other characteristics. As a result, we have two reportable segments - Direct and Retail. This financial reporting structure was effective as of December 31, 2015, the acquisition date of Octane. We evaluate performance using several factors, of which the primary financial measures are net sales and reportable segment contribution. Contribution is the measure of profit or loss, defined as net sales less product costs and directly attributable expenses. Directly attributable expenses include selling and marketing expenses, general and administrative expenses, and research and development expenses that are directly related to segment operations. Segment assets are those directly assigned to an operating segment's operations, primarily accounts receivable, inventories, goodwill and other intangible assets. Unallocated assets primarily include cash and cash equivalents, available-for-sale securities, shared information technology infrastructure, distribution centers, corporate headquarters, prepaids and other current assets, deferred income tax assets and other assets. Capital expenditures directly attributable to the Direct and Retail segments were not significant in any period. Following is summary information by reportable segment (in thousands):
There was no material change in the allocation of assets by segment during the first three months of 2016 and, accordingly, assets by segment are not presented. For the three months ended March 31, 2016 and 2015, no customer represented 10.0% or more of total net sales. |
Commitments and Contingencies |
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Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Guarantees, Commitments and Off-Balance Sheet Arrangements As of March 31, 2016, we had approximately $0.5 million in standby letters of credit with certain vendors expiring April 2017. We have long lead times for inventory purchases and, therefore, must secure factory capacity from our vendors in advance. As of March 31, 2016, we had approximately $36.9 million in noncancelable market-based purchase obligations, primarily for inventory purchases expected to be received within the next twelve months. Purchase obligations can vary from quarter-to-quarter and versus the same period in prior years due to a number of factors, including the amount of products that are shipped directly to Retail customer warehouses versus through Nautilus warehouses. In the ordinary course of business, we enter into agreements that require us to indemnify counterparties against third-party claims. These may include: agreements with vendors and suppliers, under which we may indemnify them against claims arising from use of their products or services; agreements with customers, under which we may indemnify them against claims arising from their use or sale of our products; real estate and equipment leases, under which we may indemnify lessors against third-party claims relating to the use of their property; agreements with licensees or licensors, under which we may indemnify the licensee or licensor against claims arising from their use of our intellectual property or our use of their intellectual property; and agreements with parties to debt arrangements, under which we may indemnify them against claims relating to their participation in the transactions. The nature and terms of these indemnification obligations vary from contract to contract, and generally a maximum obligation is not stated within the agreements. We hold insurance policies that mitigate potential losses arising from certain types of indemnification obligations. Management does not deem these obligations to be significant to our financial position, results of operations or cash flows and, therefore, no related liabilities were recorded as of March 31, 2016. Legal Matters In 2004, we were sued in the Southern District of New York by BioSig Instruments, Inc. for alleged patent infringement in connection with our incorporation of heart rate monitors into certain cardio products. No significant activity in the litigation occurred until 2008. In 2012, the United States District Court granted summary judgment to us on grounds that BioSig’s patents were invalid as a matter of law. BioSig appealed the grant of summary judgment and, in April 2013, the United States Court of Appeals for the Federal Circuit reversed the District Court’s decision on summary judgment and remanded the case to the District Court for further proceedings. On January 10, 2014, the U. S. Supreme Court granted our petition for a writ of certiorari to address the legal standard applied by the Federal Circuit in determining whether the patents may be valid under applicable law. The case was argued before the Supreme Court on April 28, 2014. By decision dated June 2, 2014, the Supreme Court unanimously reversed the Federal Circuit, holding that its standard of when a patent may be “indefinite” was incorrect and remanding to the Federal Circuit for reconsideration under the correct standard. The remand hearing in the Federal Circuit was held on October 29, 2014. By decision dated April 27, 2015, the same panel of the Federal Circuit affirmed its earlier reversal of the District Court’s decision on summary judgment. On May 27, 2015, we filed a petition for a rehearing en banc in the Federal Circuit, which was denied on August 4, 2015 and a Petition for Review by the U. S. Supreme Court which was also denied. The case will be returned to the District Court for further proceedings. We do not believe that our use of heart rate monitors utilized or purchased from third parties, and otherwise, infringes the BioSig patents. In addition to the matter described above, from time to time, we may be involved in various claims, lawsuits and other proceedings. These legal and tax proceedings involve uncertainty as to the eventual outcomes and losses which may be realized when one or more future events occur or fail to occur. Litigation and jury verdicts are, to some degree, inherently unpredictable, and although we have determined that a loss is not probable in connection with any current legal proceeding, it is reasonably possible that a loss may be incurred in connection with proceedings to which we are a party. Assessment of whether incurrence of a loss is probable, or a reasonable possibility, in connection with a particular proceeding, and estimation of the loss, or a range of loss, involves complex judgments and numerous uncertainties. Management is unable to estimate a range of reasonably possible losses related to litigation in which the damages sought are indeterminate, or the legal and factual basis for the relevant claims have not been developed with specificity. As such, zero liability is recorded as of March 31, 2016. We regularly monitor our estimated exposure to these contingencies and, as additional information becomes known, may change our estimates accordingly. We evaluate, on a quarterly basis, developments in legal proceedings, investigations or claims that could affect the amount of any accrual, as well as any developments that would make a loss probable or reasonably possible, and whether the amount of a probable or reasonably possible loss is estimable. Among other factors, we evaluate the advice of internal and external counsel, the outcomes from similar litigation, current status of the lawsuits (including settlement initiatives), legislative developments and other factors. Due to the numerous variables associated with these judgments and assumptions, both the precision and reliability of the resulting estimates of the related loss contingencies are subject to substantial uncertainties. |
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Business Acquisition | BUSINESS ACQUISITION On December 31, 2015, we acquired all of the outstanding capital stock of OF Holdings, Inc., sole parent of Octane Fitness, LLC ("Octane") for an aggregate base purchase price of $115.0 million, plus net adjustments for working capital and cash acquired on the closing date. We funded the acquisition through an $80.0 million term loan and cash on hand. For the three months ended March 31, 2016, Octane contributed net sales of $12.5 million and net loss of $0.8 million. The current period loss included amortization of acquired assets of $0.8 million and purchase accounting related inventory step-up expense of $0.7 million. Working capital and other measurement period adjustments as of March 31, 2016 totaled $0.7 million and are detailed in the preliminary valuation table shown below. Total acquisition costs incurred for the three months ended March 31, 2016 were $0.2 million, and cumulative to date costs total $0.8 million. These charges were expensed as incurred in general and administrative costs. Purchase Price Allocation Acquired assets and liabilities were recorded at estimated fair value as of the acquisition date. The excess of the purchase price over the estimated fair value of identifiable net assets resulted in the recognition of goodwill of $58.1 million, all of which was assigned to the Retail segment, and is attributed primarily to Octane's intellectual property base, benefits of access to different markets and customers, and employee workforce. The goodwill is not expected to be deductible for income tax purposes. The following table summarizes the preliminary fair values of the net assets acquired and liabilities assumed and measurement period adjustments since December 31, 2015, the acquisition date (in thousands):
The allocation of the purchase price is preliminary and is based upon valuation information available and estimates and assumptions made as of March 31, 2016. We are still in the process of verifying data and finalizing information including valuation and recording of the assets acquired and liabilities assumed, and the resulting amount of recognized goodwill. The following table sets forth the components of identifiable intangible assets and their estimated fair values and useful lives as of December 31, 2015, the acquisition date (dollars in thousands):
Summary of Unaudited Pro Forma Information The following table reflects the unaudited pro forma consolidated results of operations for the periods presented, as though the acquisition of Octane had occurred on January 1, 2014 (in thousands, except per share amounts):
The unaudited pro forma financial information is presented for illustrative purposes only and is not indicative of the results of operations that would have been realized if the acquisition had been completed on the date indicated, nor is it indicative of future operating results. |
Derivatives |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives | DERIVATIVES From time to time, we enter into interest rate swaps to fix a portion of our interest expense. We do not enter into derivative instruments for any purpose other than to manage interest rate exposure to fluctuations in the one-month LIBOR benchmark. That is, we do not engage in interest rate speculation using derivative instruments. As of March 31, 2016, we had a $76.0 million interest rate swap outstanding with JPMorgan Chase Bank, N.A. This interest rate swap matures on December 31, 2020 and has a fixed rate of 1.42% per annum. The variable rate on the interest rate swap is the one-month LIBOR benchmark. At March 31, 2016, the one-month LIBOR rate was 0.44%. We typically designate all interest rate swaps as cash flow hedges and, accordingly, record the change in fair value for the effective portion of these interest rate swaps in accumulated other comprehensive income rather than current period earnings until the underlying hedged transaction affects earnings. Gains and losses on the derivative representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings. For the three months ended March 31, 2016, there was no ineffectiveness. As of March 31, 2016, we expect to reclassify $0.2 million from accumulated other comprehensive loss to earnings within the next twelve months. The fair value of our derivative instruments was included in our Condensed Consolidated Balance Sheets as follows (in thousands):
The effect of derivative instruments on our Condensed Consolidated Statements of Operations was as follows (in thousands):
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Subsequent Events |
3 Months Ended |
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Mar. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS On May 4, 2016, our Board of Directors authorized a $10.0 million expansion of our share repurchase program. Under the expanded program, shares of our common stock may be repurchased from time to time over the next 24 months in open market transactions at prevailing prices, in privately negotiated transactions, or by other means in accordance with federal securities laws. Share repurchases will be funded from existing cash balances, and repurchased shares will be retired and returned to unissued authorized shares. To date, we have not repurchased any shares pursuant to the program. The repurchase program expires May 4, 2018. |
Discontinued Operations (Tables) |
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Mar. 31, 2016 | |||||||||||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||
Schedule of liabilities for exit costs related to discontinued operations | The following table summarizes liabilities for exit costs related to discontinued operations, included in accrued liabilities and other long-term liabilities in our Condensed Consolidated Balance Sheets (in thousands):
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Fair Value Measurements (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets measured at fair value on a recurring basis | Assets and liabilities measured at fair value on a recurring basis as of March 31, 2016 and December 31, 2015 were as follows (in thousands):
(1) All certificates of deposit are within current FDIC insurance limits. |
Inventories (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventories, Net of Valuation Allowances | Our inventories consisted of the following (in thousands):
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Property, Plant, and Equipment (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Property, Plant and Equipment | Property, plant and equipment consisted of the following (in thousands):
(1) Work in progress includes production tooling and internal use software development. |
Goodwill and Other Intangible Assets (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Goodwill and Other Intangible Assets | The rollforward of goodwill was as follows (in thousands):
Other Intangible Assets Other intangible assets consisted of the following (in thousands):
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Amortization Expense | Amortization expense was as follows (in thousands):
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Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Future amortization of definite-lived intangible assets is as follows (in thousands):
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Accrued Liabilities (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accrued Liabilities | Accrued liabilities consisted of the following (in thousands):
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Product Warranties (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Product Warranties Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Product Warranty Liability | Changes in our product warranty obligations were as follows (in thousands):
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Accumulated Other Comprehensive Income (Loss) (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | The following tables set forth the changes in accumulated other comprehensive income (loss), net of tax (in thousands):
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Income Per Share (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||
Schedule of Weighted Average Number of Shares Outstanding Used to Compute Income Per Share | The weighted average numbers of shares outstanding used to compute income per share were as follows (in thousands):
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Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The weighted average numbers of shares outstanding listed in the table below were anti-dilutive and excluded from the computation of diluted income per share because, in the case of stock options, the average market price did not exceed the exercise price, and for the performance stock units, because these shares are subject to performance conditions that had not been met. These shares may be dilutive potential common shares in the future (in thousands):
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Stock Repurchase Program Stock Repurchase Program (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Stock Repurchases | Repurchases pursuant to the program were as follows:
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Segment and Enterprise-wide Information (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary Information by Reportable Segments | Following is summary information by reportable segment (in thousands):
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Business Acquisition (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the preliminary fair values of the net assets acquired and liabilities assumed and measurement period adjustments since December 31, 2015, the acquisition date (in thousands):
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Schedule of Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination | The following table sets forth the components of identifiable intangible assets and their estimated fair values and useful lives as of December 31, 2015, the acquisition date (dollars in thousands):
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Business Acquisition, Pro Forma Information | The following table reflects the unaudited pro forma consolidated results of operations for the periods presented, as though the acquisition of Octane had occurred on January 1, 2014 (in thousands, except per share amounts):
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Derivatives (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Liabilities at Fair Value | The fair value of our derivative instruments was included in our Condensed Consolidated Balance Sheets as follows (in thousands):
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Derivative Instruments, Gain (Loss) | The effect of derivative instruments on our Condensed Consolidated Statements of Operations was as follows (in thousands):
|
Discontinued Operations (Details) - USD ($) |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2016 |
Dec. 31, 2015 |
|
Revenue related to discontinued operations | $ 0 | $ 0 |
Facilities Leases | ||
Restructuring Reserve [Roll Forward] | ||
Balance, December 31, 2015 | 300,000 | |
Payments | (75,000) | |
Balance, March 31, 2016 | $ 225,000 | $ 300,000 |
Fair Value Measurements (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands |
Mar. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash Equivalents | $ 19,099 | $ 734 |
Available for Sale Securities | 28,788 | 29,998 |
Assets measured at fair value | 47,887 | 30,732 |
Total liabilities measured at fair value | (1,095) | |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash Equivalents | 9,007 | 1 |
Available for Sale Securities | 0 | 0 |
Assets measured at fair value | 9,007 | 1 |
Total liabilities measured at fair value | 0 | |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash Equivalents | 10,092 | 733 |
Available for Sale Securities | 28,788 | 29,998 |
Assets measured at fair value | 38,880 | 30,731 |
Total liabilities measured at fair value | (1,095) | |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash Equivalents | 0 | 0 |
Available for Sale Securities | 0 | 0 |
Assets measured at fair value | 0 | 0 |
Total liabilities measured at fair value | 0 | |
Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash Equivalents | 9,007 | 1 |
Money market funds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash Equivalents | 9,007 | 1 |
Money market funds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash Equivalents | 0 | 0 |
Money market funds | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash Equivalents | 0 | 0 |
Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash Equivalents | 5,997 | |
Commercial paper | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash Equivalents | 0 | |
Commercial paper | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash Equivalents | 5,997 | |
Commercial paper | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash Equivalents | 0 | |
Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for Sale Securities | 27,064 | 25,234 |
Certificates of deposit | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for Sale Securities | 0 | 0 |
Certificates of deposit | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for Sale Securities | 27,064 | 25,234 |
Certificates of deposit | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for Sale Securities | 0 | 0 |
Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash Equivalents | 4,095 | 733 |
Available for Sale Securities | 1,724 | 4,764 |
Corporate bonds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash Equivalents | 0 | 0 |
Available for Sale Securities | 0 | 0 |
Corporate bonds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash Equivalents | 4,095 | 733 |
Available for Sale Securities | 1,724 | 4,764 |
Corporate bonds | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash Equivalents | 0 | 0 |
Available for Sale Securities | 0 | $ 0 |
Interest rate swap contract | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of liability derivatives | (1,095) | |
Interest rate swap contract | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of liability derivatives | 0 | |
Interest rate swap contract | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of liability derivatives | (1,095) | |
Interest rate swap contract | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of liability derivatives | $ 0 |
Inventories (Details) - USD ($) $ in Thousands |
Mar. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Finished goods | $ 33,265 | $ 39,115 |
Parts and components | 3,552 | 3,614 |
Total inventories | $ 36,817 | $ 42,729 |
Property, Plant and Equipment (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Dec. 31, 2015 |
|
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 42,109 | $ 41,654 |
Accumulated depreciation | (25,313) | (24,890) |
Total property, plant and equipment, net | 16,796 | 16,764 |
Automobiles | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 139 | 139 |
Automobiles | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life (in years) | 5 years | |
Automobiles | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life (in years) | 6 years | |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 3,432 | 3,397 |
Leasehold improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life (in years) | 5 years | |
Leasehold improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life (in years) | 20 years | |
Computer software and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 23,444 | 23,991 |
Computer software and equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life (in years) | 3 years | |
Computer software and equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life (in years) | 7 years | |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 11,433 | 10,867 |
Machinery and equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life (in years) | 3 years | |
Machinery and equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life (in years) | 5 years | |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 1,601 | 1,605 |
Estimated Useful Life (in years) | 5 years | |
Work in Progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 2,060 | $ 1,655 |
Goodwill and Other Intangible Assets Goodwill Roll Forward (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2016 |
Dec. 31, 2015 |
|
Goodwill [Roll Forward] | ||
Balance | $ 60,470 | $ 2,520 |
Currency exchange rate adjustment | 135 | (407) |
Business acquisition (Note 2) | 58,357 | |
Business acquisition (Note 2) - measurement period adjustments | (282) | |
Balance | 60,323 | 60,470 |
Direct | ||
Goodwill [Roll Forward] | ||
Balance | 2,113 | 2,520 |
Currency exchange rate adjustment | 147 | (407) |
Business acquisition (Note 2) | 0 | |
Business acquisition (Note 2) - measurement period adjustments | 0 | |
Balance | 2,260 | 2,113 |
Retail | ||
Goodwill [Roll Forward] | ||
Balance | 58,357 | 0 |
Currency exchange rate adjustment | (12) | 0 |
Business acquisition (Note 2) | 58,357 | |
Business acquisition (Note 2) - measurement period adjustments | (282) | |
Balance | $ 58,063 | $ 58,357 |
Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Dec. 31, 2015 |
|
Goodwill [Line Items] | ||
Indefinite-lived trademarks | $ 32,052 | $ 32,052 |
Total other intangible assets, gross | 90,839 | 90,839 |
Accumulated amortization - definite-lived intangible assets | (18,445) | (17,485) |
Other intangible assets, net | $ 72,394 | 73,354 |
Definite-lived trademarks | Minimum | ||
Goodwill [Line Items] | ||
Estimated Useful Life (in years) | 10 years | |
Definite-lived trademarks | Maximum | ||
Goodwill [Line Items] | ||
Finite-lived intangible assets, gross | $ 2,600 | 2,600 |
Estimated Useful Life (in years) | 15 years | |
Patents | Minimum | ||
Goodwill [Line Items] | ||
Estimated Useful Life (in years) | 8 years | |
Patents | Maximum | ||
Goodwill [Line Items] | ||
Finite-lived intangible assets, gross | $ 31,487 | 31,487 |
Estimated Useful Life (in years) | 24 years | |
Customer relationships | Minimum | ||
Goodwill [Line Items] | ||
Estimated Useful Life (in years) | 10 years | |
Customer relationships | Maximum | ||
Goodwill [Line Items] | ||
Finite-lived intangible assets, gross | $ 24,700 | $ 24,700 |
Estimated Useful Life (in years) | 18 years |
Goodwill and Other Intangible Assets Patent amortization (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense | $ 960 | $ 290 |
Goodwill and Other Intangible Assets Future intangible amortization (Details) $ in Thousands |
Mar. 31, 2016
USD ($)
|
---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | |
Remainder of 2016 | $ 2,592 |
2017 | 3,255 |
2018 | 3,162 |
2019 | 3,132 |
2020 | 3,106 |
Thereafter | 25,095 |
Finite-Lived Intangible Assets, Net | $ 40,342 |
Accrued Liabilities (Details) - USD ($) $ in Thousands |
Mar. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Payables and Accruals [Abstract] | ||
Payroll and related liabilities | $ 3,916 | $ 6,556 |
Other | 6,666 | 6,471 |
Total accrued liabilities | $ 10,582 | $ 13,027 |
Product Warranties (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Movement in Product Warranty Liability [Roll Forward] | ||
Balance, beginning of period | $ 8,545 | $ 2,246 |
Accruals | 1,530 | 815 |
Payments | (1,363) | (564) |
Balance, end of period | $ 8,712 | $ 2,497 |
Minimum | ||
Product Liability Contingency [Line Items] | ||
Product warranty period | 30 days |
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance at beginning of period | $ 126,991 | |
Net other comprehensive income (loss) during period | (112) | $ (485) |
Balance at end of period | 140,188 | |
Unrealized Gain (Loss) on Available-for-Sale Securities | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance at beginning of period | (16) | (18) |
Current period other comprehensive income (loss) before reclassifications | 18 | (1) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | |
Net other comprehensive income (loss) during period | 18 | |
Balance at end of period | 2 | (19) |
Loss on Derivative Securities (Effective Portion) | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance at beginning of period | 0 | |
Current period other comprehensive income (loss) before reclassifications | (810) | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 128 | |
Net other comprehensive income (loss) during period | (682) | |
Balance at end of period | (682) | |
Foreign Currency Translation Adjustments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance at beginning of period | (1,311) | (290) |
Current period other comprehensive income (loss) before reclassifications | 552 | (484) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | |
Net other comprehensive income (loss) during period | 552 | |
Balance at end of period | (759) | (774) |
Accumulated Other Comprehensive Loss | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance at beginning of period | (1,327) | (308) |
Current period other comprehensive income (loss) before reclassifications | (240) | (485) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 128 | |
Net other comprehensive income (loss) during period | (112) | |
Balance at end of period | $ (1,439) | $ (793) |
Income Per Share (Details) - shares shares in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Income per share: | ||
Shares used to calculate basic income per share | 31,016 | 31,396 |
Dilutive effect of outstanding stock options, performance stock units and restricted stock units | 279 | 371 |
Shares used to calculate diluted income per share | 31,295 | 31,767 |
Stock options | ||
Income per share: | ||
Anti-dilutive securities excluded from computation of diluted income per share | 11 | 25 |
Performance stock units | ||
Income per share: | ||
Anti-dilutive securities excluded from computation of diluted income per share | 0 | 163 |
Stock Repurchase Program (Details) - Common Stock - USD ($) |
Nov. 03, 2014 |
Mar. 31, 2016 |
---|---|---|
Equity, Class of Treasury Stock [Line Items] | ||
Stock repurchase program, authorized amount | $ 15,000,000 | |
Stock repurchase program, period in force | 24 months | |
Remaining authorized repurchase amount | $ 3,400,000 |
Stock Repurchase Program, Repurchased Shares (Details) - Common Stock - USD ($) |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2016 |
Sep. 30, 2015 |
Mar. 31, 2015 |
|
Class of Stock [Line Items] | |||
Number of Shares (in shares) | 711,708 | 577,831 | 133,877 |
Repurchased Amount | $ 11,567,527 | $ 9,571,545 | $ 1,995,982 |
Average Price Per Share | $ 16.25 | $ 16.56 | $ 14.91 |
Segment and Enterprise-wide Information (Details) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2016
USD ($)
segment
|
Mar. 31, 2015
USD ($)
|
|
Segment Reporting Information [Line Items] | ||
Number of operating segments | segment | 3 | |
Number of reportable segments | segment | 2 | |
Net sales | $ 120,928 | $ 96,239 |
Reconciliation of consolidated contribution to income (loss) from continuing operations: | ||
Operating expenses | (47,044) | (36,284) |
Income tax expense | (7,178) | (6,669) |
Income from continuing operations | 11,586 | 10,859 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Net sales | 120,928 | 96,239 |
Contribution | 25,958 | 21,963 |
Operating Segments | Direct | ||
Segment Reporting Information [Line Items] | ||
Net sales | 81,234 | 74,057 |
Contribution | 21,144 | 19,571 |
Operating Segments | Retail | ||
Segment Reporting Information [Line Items] | ||
Net sales | 38,805 | 21,290 |
Contribution | 3,944 | 1,500 |
Operating Segments | Royalty | ||
Segment Reporting Information [Line Items] | ||
Royalty | 889 | 892 |
Unallocated royalty income, net | 870 | 892 |
Segment Reconciling Items | ||
Reconciliation of consolidated contribution to income (loss) from continuing operations: | ||
Operating expenses | (6,658) | (4,358) |
Other expense, net | (536) | (77) |
Income tax expense | $ (7,178) | $ (6,669) |
Commitments and Contingencies (Details) $ in Millions |
Mar. 31, 2016
USD ($)
|
---|---|
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |
Standby letters of credit outstanding | $ 0.5 |
Inventories | |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |
Non-cancelable market-based purchase obligation | $ 36.9 |
Business Acquisition (Details) - USD ($) |
3 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Dec. 31, 2015 |
Mar. 31, 2016 |
Mar. 31, 2015 |
Mar. 31, 2016 |
Dec. 31, 2015 |
|
Business Acquisition [Line Items] | |||||
Net loss | $ 11,444,000 | $ 10,732,000 | |||
Amortization expense | 960,000 | $ 290,000 | |||
Goodwill, acquired during period | $ 58,357,000 | ||||
Octane Fitness | |||||
Business Acquisition [Line Items] | |||||
Purchase price | $ 115,000,000 | ||||
Net sales | 12,500,000 | ||||
Net loss | (800,000) | ||||
Amortization expense | 800,000 | ||||
Inventory step-up expense | 700,000 | ||||
Measurement period adjustments, assets, goodwill and liabilities | 662,000 | ||||
Acquisition costs | $ 200,000 | $ 800,000 | |||
JPMorgan Chase Bank, N.A. | Term Loan | Octane Fitness | |||||
Business Acquisition [Line Items] | |||||
Maximum revolving secured credit line | $ 80,000,000.0 | 80,000,000.0 | |||
Retail | |||||
Business Acquisition [Line Items] | |||||
Goodwill, acquired during period | 58,357,000 | ||||
Retail | Octane Fitness | |||||
Business Acquisition [Line Items] | |||||
Goodwill, acquired during period | $ 58,100,000 |
Business Acquisition - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Business Acquisition [Line Items] | |||
Goodwill | $ 60,323 | $ 60,470 | $ 2,520 |
Measurement period adjustments, goodwill | (282) | ||
Octane Fitness | |||
Business Acquisition [Line Items] | |||
Cash | 7,759 | 7,759 | |
Accounts receivable | 12,507 | 12,507 | |
Inventories | 13,683 | 12,168 | |
Prepaid expenses | 1,028 | 1,028 | |
Deferred tax assets | 716 | 1,287 | |
Property, plant and equipment | 3,240 | 3,240 | |
Intangible assets | 63,100 | 63,100 | |
Total assets acquired | 102,033 | 101,089 | |
Accounts payable | 6,215 | 6,215 | |
Accrued liabilities | 1,614 | 1,614 | |
Warranty obligations | 5,550 | 5,550 | |
Deferred tax liabilities, non-current | 20,914 | 20,914 | |
Other non-current liabilities | 519 | 519 | |
Total liabilities assumed | 34,812 | 34,812 | |
Net identifiable assets acquired | 67,221 | 66,277 | |
Goodwill | 58,075 | 58,357 | |
Net assets acquired | 125,296 | $ 124,634 | |
Measurement period adjustments, inventories | 1,515 | ||
Measurement period adjustments, deferred tax assets | (571) | ||
Measurement period adjustments, total assets | 944 | ||
Measurement period adjustments, liabilities | 0 | ||
Measurement period adjustments, assets and liabilities | 944 | ||
Measurement period adjustments, goodwill | (282) | ||
Measurement period adjustments, assets, goodwill and liabilities | $ 662 |
Business Acquisition - Intangible Assets (Details) $ in Thousands |
Dec. 31, 2015
USD ($)
|
---|---|
Acquired Finite-Lived Intangible Assets [Line Items] | |
Indefinite-lived intangible assets acquired | $ 23,000 |
Finite-lived intangible assets acquired | 63,100 |
Trade name | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets acquired | $ 2,600 |
Weighted-average amortization period (years) | 12 years 6 months |
Patents | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets acquired | $ 12,800 |
Weighted-average amortization period (years) | 18 years |
Customer relationships | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets acquired | $ 24,700 |
Weighted-average amortization period (years) | 13 years |
Minimum | Trade name | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life (years) | 10 years |
Minimum | Patents | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life (years) | 11 years |
Minimum | Customer relationships | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life (years) | 10 years |
Maximum | Trade name | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life (years) | 15 years |
Maximum | Patents | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life (years) | 24 years |
Maximum | Customer relationships | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life (years) | 15 years |
Business Acquisition - Pro Forma (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Business Combinations [Abstract] | ||
Net sales | $ 120,928 | $ 111,130 |
Net income | $ 11,514 | $ 10,821 |
Basic (in dollars per share) | $ 0.37 | $ 0.34 |
Diluted (in dollars per share) | $ 0.37 | $ 0.34 |
Derivatives (Details) - Interest rate swap contract - USD ($) $ in Thousands |
Mar. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Derivative [Line Items] | ||
Derivative, notional amount | $ 76,000 | |
Derivative, fixed interest rate | 1.42% | |
LIBOR | ||
Derivative [Line Items] | ||
Derivative, basis spread on variable rate | 0.4385% | |
Derivatives Designated as Hedging Instruments | ||
Derivative [Line Items] | ||
Fair value of liability derivatives | $ 1,095 | $ 0 |
Derivatives Designated as Hedging Instruments | Accrued liabilities | ||
Derivative [Line Items] | ||
Fair value of liability derivatives | $ 230 | $ 0 |
Derivatives - Fair value of derivative instruments (Details) - Interest rate swap contract - Derivatives Designated as Hedging Instruments - USD ($) $ in Thousands |
Mar. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Derivatives, Fair Value [Line Items] | ||
Fair Value of Liability Derivatives | $ 1,095 | $ 0 |
Accrued liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value of Liability Derivatives | 230 | 0 |
Other long-term liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value of Liability Derivatives | $ 865 | $ 0 |
Derivatives - Effect On Condensed Consolidated Statements of Operations (Details) - Interest rate swap contract - Cash Flow Hedging - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Derivative Instruments, Gain (Loss) [Line Items] | ||
Loss recognized in other comprehensive income before reclassifications | $ (810) | $ 0 |
Interest expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Loss reclassified from accumulated other comprehensive income to earnings for the effective portion | $ (128) | $ 0 |
Subsequent Events (Details) - Common Stock - USD ($) |
May. 04, 2016 |
Nov. 03, 2014 |
---|---|---|
Subsequent Event [Line Items] | ||
Stock repurchase program, authorized amount | $ 15,000,000 | |
Stock repurchase program, period in force | 24 months | |
Subsequent Event | ||
Subsequent Event [Line Items] | ||
Stock repurchase program, authorized amount | $ 10,000,000 | |
Stock repurchase program, period in force | 24 months |
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