Nautilus, Inc.

For other uses, see Nautilus (disambiguation).
Nautilus, Inc.
Public
Traded as NYSE: NLS
Industry Exercise equipment
Founded 1986
Headquarters Vancouver, Washington
Revenue $218.8 million USD (2013)[1]
$15.7 million USD (2013)[1]
$48.1 million USD (2013)[1]
Number of employees
 approximately 311[2]
Website www.nautilusinc.com

Nautilus, Inc., located in Vancouver, Washington, United States, is the marketer, developer, and manufacturer of home fitness equipment brands Bowflex, Nautilus, Schwinn Fitness, and Universal.[3] The products are sold to customers through a combination of television commercials/infomercials, the Internet, call centers and retail stores.[4]

Organization

Nautilus, Inc. is the maker of home fitness equipment brands Bowflex, Nautilus, Schwinn Fitness and Universal Gym Equipment, sold directly to customers through a combination of television commercials, infomercials, response mailings, the Internet and inbound/outbound call centers. Select Bowflex home gyms and Schwinn cardio equipment are also available in retail stores.[4]

In 2015, the company will open a new building across from its headquarters in Vancouver, Washington, United States to expand its development and research team.[4]

Brian Cook, held the CEO position for 17 years, from to 1986 to 2003 when he was replaced by Gregg Hammann.[5][6] who resigned in August 2007 after sales fell to $134 million from $159.6 million in 2006.[7]

In 2007, after Hammann’s departure, Robert S. Falcone, the former Nike chief financial officer, became the Nautilus, Inc. interim chief executive officer,[8] where he also served as president and chairman since October 17, 2007.[9] In April 2008, Falcone was replaced by Edward Bramson, a major stock owner.[10] Under Bramson’s leadership, the company changed sales focus to solely direct-to-customer and retail businesses, which resulted in the sale of its StairMaster brand.[10] Bramson was CEO and chairman of Nautilus, Inc. until May 2011, when he announced he would be stepping down and Bruce M. Cazenave, former executive with Black and Decker and Timberland, would be the new CEO.[10]

Bruce M. Cazenave is the current CEO of Nautilus, Inc. and since he’s taken over in 2011, his plan has been to release better and more cost-effective retail products.[4]

History

The current corporate flavor of Nautilus, Inc. originated in 1986 with the sale of most of the company by the inventor of the Nautilus machine, Arthur Jones.[11] Mr. Jones created the Nautilus machine, then called the Blue Monster, in the late 1960s, with the purpose of creating a fitness machine that accommodates human movement.[11] The company's name was changed to Nautilus because the logarithmic-spiral cam, which made the machine a success, resembled a nautilus.[11] On August 28, 2007, Jones died from natural causes at his home in Ocala, Florida, at the age of 80.[11]

Bowflex acquired Nautilus, Inc. and specialized in designing, developing and marketing strength and cardio fitness products.[4] In 1997, the company changed its name to Direct Focus and acquired Nautilus, Schwinn and StairMaster between 1999 and 2002, before changing its name to Nautilus, Inc.[4] Nautilus became a publicly traded company in May 1999.[12]

The company stopped selling exercise equipment to gyms in 2011 and shifted its focus to home-use equipment. The same year, Nautilus, Inc. licensed its brand name and technology to other manufacturers.[4]

In June 2014, Nautilus, Inc. was sued by Biosig Instruments for allegedly infringing its heart-rate monitor's design for its Bowflex Boost activity tracker.[13] The Supreme Court ruled in favor of Nautilus, Inc. because the Biosig Instruments patent was not precise enough.[13]

For two years running (2013 & 2014), Nautilus, Inc. was recognized by The Oregonian as one of the top places to work,[14][15] as well as the company with the healthiest employees of Oregon by the Portland Business Journal, in its 101-500 employee category.[16]

The company has been an American Heart Association Fit-Friendly company since 2010, winning for three consecutive years the Platinum Fit-Friendly Workplace award.[17][18] The company is recognized for its Road to Wellness Program, which challenges and rewards Nautilus, Inc. employees to get healthier by just walking.[18]

In June 2013, a number of Nautilus employees participated in the Tough Mudder in Fossil, Oregon. The race is a 10-mile obstacle course which serves as a way to raise money for the Wounded Warrior Project.[19]

Finance

On March 18, 2014, Bruce Cazenave, CEO of Nautilus, Inc., rang the New York Stock Exchange's opening bell. Nautilus, Inc. also featured its new home fitness cardio machine, Bowflex MAX Trainer, on the NYSE trading floor and discussed the company’s 2013 fourth quarter and full year financial growth.[20]

In 2013, Nautilus, Inc. posted $218.8 million in revenue, a 13% increase over 2012.[4][21] The company’s financial performance in the past two years has led to Nautilus, Inc. landing at No. 4 on The Seattle Times’ 23rd annual ranking of publicly traded companies based in the Northwest.[4]

Since 2012, the company’s stock has increased to more than $11 a share.[4]

During the Great Recession, between 2007 and 2010, Nautilus, Inc. saw almost $255 million in losses, with its stock ranging from 45 cents to $4, between 2009 and 2012.[4]

Products

The Bowflex brand includes cardio machines Bowflex MAX Trainer[22] and Bowflex TreadClimber,[12] the SelectTech Adjustable Dumbbells[23] for strength training, and Bowflex Xtreme 2 Home Gym[24] and Bowflex Revolution Home Gym.[25]

The Schwinn brand includes cardio machine products such as the Schwinn AirDyne Bike, designed to challenge users’ entire body by increasing more wind resistance the harder they pedal against the fan.[26] The brand also includes Schwinn Ellipticals[27] and Schwinn Recumbent Bikes.[28]

The Nautilus brand sells through retail the Nautilus E514c Elliptical cardio machine made from tubular steel for strength and durability. The E514c Elliptical also includes a LCD display, which tracks users' progress and heart rate.[29] The brand also includes Nautilus T614 treadmill which comes with 22 workout programs.[30] The new 2014 Nautilus cardio brand machines include multi LCD display with Bluetooth® Smart Technology and sync with MyFitnessPal.[31]

The Universal Gym Equipment brand sells selectorized dumbbells[32]

References

  1. ↑ 1.0 1.1 1.2 "Nautilus, Inc. Reports Results for the Fourth Quarter and Full Year 2013." February 24, 2014. Retrieved January 27, 2015.
  2. ↑ "“Form 10-K Nautilus Inc. Annual Report." February 27, 2014. Retrieved January 27, 2015.
  3. ↑ New York Times
  4. ↑ 4.0 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 Coral Garnick, The Seattle Times."Nautilus Flexes its Muscle." June 11, 2014. Retrieved January 27, 2015.
  5. ↑ Kristina Shevory, "Nautilus hires Levi Strauss exec to pump up its profits and sales", Seattle Times, July 17, 2003.
  6. ↑ "In Sudden Move, Nautilus Group Names New CEO", FitCommerce.com, July 17, 2003.
  7. ↑ N/A, Puget Sound Business Journal."Nautilus Q3 earnings fall."October 19, 2007.Retrieved January 29, 2015.
  8. ↑ Kristina Shevory, Seattle Times."Nautilus hires Levi Strauss exec to pump up its profits and sales."July 13,20013. Retrieved January 29, 2015.
  9. ↑ N/A, NNDVB."Robert S. Falcone."N/A. Retrieved January 29, 2015
  10. ↑ 10.0 10.1 10.2 Erik Siemers, Portland Business Journal."Nautilus names new CEO, chairman."May 26, 2011. Retrieved January 29, 2015.
  11. ↑ 11.0 11.1 11.2 11.3 Andrew Martin, The New York Times. “Arthur Jones, 80, Exercise Machine Inventor, Dies.” August 30, 2014. July 21, 2014.
  12. ↑ 12.0 12.1 Nathan Gotch, Street Articles. "The Only Bowflex Review You Need." May 20, 2013. December 18, 2013.
  13. ↑ 13.0 13.1 The Oregonian. "Supreme Court rules for Nautilus in patent case." June 11, 2014. July 22, 2014.
  14. ↑ The Oregonian. "Top Work Places." N/A. June 16, 2014.
  15. ↑ Scott Nelsen, The Oregonian. “The more fulfilling the work, the more employees want to stay: Top Workplaces 2014.” Sept. 10, 2014. Sept. 11, 2014.
  16. ↑ Portland Business Journal. “Gallery: Healthiest Employers celebrated at awards luncheon.” October 16, 2013. June 11, 2014.
  17. ↑ American Heart Association. “Fit-Friendly Worksite Platinum Award Recognition.” January 31, 2013. June 16, 2014.
  18. ↑ 18.0 18.1 Rebecca Fancher, Jeff Bunch and Leah Fisher, The Columbian. "Wellness summit gives Nautilus program boost." August 26, 2013. June 17, 2014.
  19. ↑ Lincoln Graves, KATU News. “What is Tough Mudder? Let's just say it's the mother of all obstacle courses..” June 12, 2013. June 17, 2014.
  20. ↑ NYSE Euronext Exchanges. “Nautilus Brings its Bowflex Max Trainer to the New York Stock Exchange.” March 18, 2014. June 11, 2014.
  21. ↑ Debra Borchardt, The Street. “Nautilus Burns Calories, Adds Sales With New Max Trainer.” March 18, 2014. June 11, 2014.
  22. ↑ Mark Barroso, Men's Fitness. “Nautilus Launches New Fitness Products.” September 13, 2013. June 16, 2014.
  23. ↑ Mark Barroso, Men's Fitness. “The At-Home Arm Workout.” November 12, 2013. June 16, 2014.
  24. ↑ Home Gym Partner. “Bowflex Xtreme 2 SE Home Gym Review: the best Power Rod Home Gym yet.” N/A. June 16, 2014.
  25. ↑ Home Gym Partner. “Bowflex Revolution Home Gym Review: resistance innovation for the future of strength training.” N/A. June 16, 2014.
  26. ↑ Michael Beck, Details Magazine. “The Ultimate Cardio Machine: Airdyne Bike.” May 1, 2014. June 17, 2014.
  27. ↑ Fitness Equipment Source. “Schwinn Elliptical Trainer Review.” January 22, 2014. June 17, 2014.
  28. ↑ Fitness Equipment Source. “Schwinn 240 Recumbent Exercise Bike Review & Rating.” N/A, 2014. June 17, 2014.
  29. ↑ Elliptical Reviews. “My Opinion of the Nautilus E514c Elliptical Trainer - Review.” June 18, 2015.
  30. ↑ Robbie Darby, Hello Beautiful. “Walking is The New Running: 9 Things You Need to Know Before Your First Step.” October 20, 2014. December 5, 2014.
  31. ↑ Kimberly Brown, Manifest Yourself. “Event: Sweat in the City: The Sequel!.” October 9, 2014. December 5, 2014.
  32. ↑ The New York Times. “Nautilus Inc. - NLS: NYSE; Non-Cyclical Consumer Goods & Services/Personal Products.” June 18, 2014.

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