Namdar Family Discloses Position in Nautilus Group (NLS) - Here's Why

Investing

Published: November 23, 2022 10:58 pm

Fintel reports that Namdar Family Holding LLC has filed a 13G form with the SEC disclosing ownership of 1,886,432 shares of Nautilus Group, Inc. (The) (NLS). This represents 5.0% of the company.

Headquartered in Vancouver, Washington, Nautilus, Inc. is a global technology driven fitness solutions company that believes everyone deserves a fit and healthy life. With a brand portfolio including Bowflex®, Nautilus®, Schwinn® and JRNY®. Nautilus, Inc. develops innovative products to support healthy living through direct and retail channels.

In their most recent earnings report, the company reported the following highlights:

Fiscal 2023 Second Quarter Ended September 30, 2022 Compared to September 30, 2021

Net sales were $65.5 million, compared to $138.0 million, a decline of 52.6% versus last year. Net sales are up 24%, or 7% Compound Annual Growth Rate (“CAGR”), when compared to the same period in fiscal 2020, excluding sales related to the Octane brand, which was sold in October 2020. The sales decline versus last year is driven primarily by the return to pre-pandemic seasonal demand and pre-pandemic sales discounting practices, as our typical sales discounts were largely unnecessary during the pandemic period.
Gross profit was $11.5 million, compared to $42.1 million last year. Gross profit margins were 17.5% compared to 30.5% last year. The 13.0 ppt decrease in gross margins was primarily due to increased discounting (-4 ppts), unfavorable logistics overhead absorption (-4 ppts), increased investments in JRNY? (-3 ppts), a prior year release of a special warranty reserve (-2 ppts), and an increase in inventory adjustments (-2 ppts), partially offset by improvement in other costs (+2 ppts).
Operating expenses were $25.8 million compared to $44.0 million last year. The decrease of $18.2 million, or 41.4%, was primarily due to $9.3 million lower media spending, a $4.7 million prior year loss contingency related to a legal settlement, a decrease of $3.0 million due to other cost savings, and a $2.7 million decrease in other variable selling and marketing expenses due to decreased sales, offset by a $1.5 million increase in JRNY? investments. Total advertising expenses were $3.1 million versus $12.4 million last year.
Operating loss was $14.3 million or a negative 21.8% operating margin, compared to an operating loss of $2.0 million last year, primarily driven by lower gross profit.
Income tax expense was $0.2 million this year compared to $2.2 million last year. The income tax expense this quarter was primarily a result of a U.S. deferred tax asset valuation allowance in the amount of $3.6 million recorded in the second quarter of fiscal 2023.
Loss from continuing operations was $15.3 million, or $0.48 per diluted share, compared to $4.6 million, or $0.15 per diluted share, last year.
Net loss was $13.2 million, or $0.41 per diluted share, compared to net loss of $4.6 million or $0.15 per diluted share, last year.

What are other large shareholders doing?

Quinn Opportunity Partners LLC holds 519,574 shares representing 1.64% ownership of the company. In it’s prior filing, the firm reported owning 909,123 shares, representing a decrease of 74.97%. The firm decreased its portfolio allocation in NLS by 33.91% over the last quarter.

Gsa Capital Partners Llp holds 484,189 shares representing 1.53% ownership of the company. In it’s prior filing, the firm reported owning 0 shares, representing an increase of 100.00%.

Renaissance Technologies Llc holds 479,100 shares representing 1.51% ownership of the company. In it’s prior filing, the firm reported owning 1,152,783 shares, representing a decrease of 140.61%. The firm decreased its portfolio allocation in NLS by 53.73% over the last quarter.

Strategic Investment Opportunities LLC holds 436,760 shares representing 1.38% ownership of the company. No change in the last quarter.

Annandale Capital, LLC holds 400,135 shares representing 1.26% ownership of the company.

What is the overall Fund Sentiment?

There are 212 funds or institutions reporting positions in Nautilus Group, Inc. (The). This is a decrease of 27 owner(s) or 11.30%.

Average portfolio weight of all funds dedicated to Nautilus Group, Inc. (The) is 0.0939%, an increase of 23.9944%. Total shares owned by institutions decreased in the last three months by 22.77% to 10,504,737 shares.

Fintel’s Fund Sentiment Score is a quantitative model that ranks companies from zero to 100 based on Fund Sentiment. Fund Sentiment is important because it tells you if funds are buying or selling – and in particular how the company ranks compared to other companies in the investing universe.

This article originally appeared on Fintel.

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