Nautilus Inc. announced preliminary unaudited earnings guidance for the fourth quarter and year ended December 31, 2015. The company expects to report net sales of approximately $109 million for the fourth quarter of 2015, an increase of 15% compared to the fourth quarter of 2014. Earnings per diluted share from continuing operations are estimated to be in the range of $0.31 - $0.33 per share for the fourth quarter of 2015, compared to $0.33 per share for the fourth quarter of 2014. Earnings per diluted share from continuing operations for the fourth quarter of 2015 includes approximately $0.06 of unusual items. Excluding these unusual items, the adjusted earnings per diluted share from continuing operations are estimated to be in the range of $0.37 - $0.39 per share for the fourth quarter of 2015. Adjusted earnings per diluted share for the fourth quarter excludes transaction costs related to the acquisition of Octane Fitness (approximately $0.02 per share) and the other following unusual items: settlement of a previously disclosed arbitration proceeding related to a 1999 agreement under which Nautilus licensed certain rights relating to TreadClimber products (approximately $0.05 per share); write-off of inventory related to the nutrition business which the Company is transitioning out of to focus on opportunities presented by the recent Octane Fitness acquisition (approximately $0.03 per share); the Company did not record any royalty due from a licensee during the fourth quarter, and reversed out estimated royalties for the third quarter as a result of a dispute that arose with the licensee during the fourth quarter (approximately $0.03 per share). The company believes the licensee is in breach of the licensing agreement and has notified the licensee of its obligation to cure the breach; and the release of a valuation allowance related to foreign tax credits that favorably impacted GAAP EPS by approximately $0.06 for the fourth quarter.

For the full year 2015, net sales are expected to be approximately $336 million, an increase of 22% compared to the full year 2014. For the full year 2015, earnings per share from continuing operations are expected to be in the range of $0.85 - $0.87 per share versus $0.64 per share for the full year 2014. Excluding the unusual items adjusted earnings per share from continuing operations for the full year 2015 are expected to be in the range of $0.91 - $0.93 per share. Adjusted earnings per diluted share for the full year excludes transaction costs related to the acquisition of Octane Fitness (approximately $0.02 per share) and the other following unusual items: settlement of a previously disclosed arbitration proceeding related to a 1999 agreement under which Nautilus licensed certain rights relating to TreadClimber products (approximately $0.05 per share); write-off of inventory related to the nutrition business which the Company is transitioning out of to focus on opportunities presented by the recent Octane Fitness acquisition (approximately $0.03 per share); the Company did not record any royalty due from a licensee during the fourth quarter, and reversed out estimated royalties for the third quarter as a result of a dispute that arose with the licensee during the fourth quarter (approximately $0.03 per share). The company believes the licensee is in breach of the licensing agreement and has notified the licensee of its obligation to cure the breach; and the release of a valuation allowance related to foreign tax credits that favorably impacted GAAP EPS by approximately $0.06 for the full year.