Nautilus, Inc.

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.

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

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

In 2007, after Hammann’s departure, Robert S. Falcone, the former Nike chief financial officer, became the Nautilus, Inc. interim chief executive officer, where he also served as president and chairman since October 17, 2007. In April 2008, Falcone was replaced by Edward Bramson, a major stock owner. 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. 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.

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.

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. 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. The company's name was changed to Nautilus because the logarithmic-spiral cam, which made the machine a success, resembled a nautilus. On August 28, 2007, Jones died from natural causes at his home in Ocala, Florida, at the age of 80.

Bowflex acquired Nautilus, Inc. and specialized in designing, developing and marketing strength and cardio fitness products. 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. Nautilus became a publicly traded company in May 1999.

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.

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. The Supreme Court ruled in favor of Nautilus, Inc. because the Biosig Instruments patent was not precise enough.

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

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

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.

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.

In 2013, Nautilus, Inc. posted $218.8 million in revenue, a 13% increase over 2012. 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.

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

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.

Products

The Bowflex brand includes cardio machines Bowflex MAX Trainer and Bowflex TreadClimber, the SelectTech Adjustable Dumbbells for strength training, and Bowflex Xtreme 2 Home Gym and Bowflex Revolution Home Gym.

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. The brand also includes Schwinn Ellipticals and Schwinn Recumbent Bikes.

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. The brand also includes Nautilus T614 treadmill which comes with 22 workout programs. The new 2014 Nautilus cardio brand machines include multi LCD display with Bluetooth® Smart Technology and sync with MyFitnessPal.

The Universal Gym Equipment brand sells selectorized dumbbells