Nautilus Inc. (NYSE:NLS) Q1 2020 Earnings Conference Call - Final Transcript

May 05, 2020 • 04:30 pm ET

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Nautilus Inc. (NYSE:NLS) Q1 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day, and welcome to the Nautilus Inc. First Quarter 2020 Earnings Results Conference Call. Today's conference is being recorded. [Operator Instructions] At this time, I would like to turn the conference over to Mr. John Mills of ICR. Please go ahead, sir.

Executive
John Mills

Thank you. Good afternoon, everyone. Welcome to Nautilus' First Quarter 2020 Conference Call. Participants on the call from Nautilus are Jim Barr, Chief Executive Officer; Aina Konold, Chief Financial Officer; and Bill McMahon, Special Assistant to the CEO.

Our earnings release was issued today at 1:05 PM Pacific Time and may be downloaded from our website at nautilusinc.com, on the Investor Relations page. The earnings release includes a reconciliation of the non-GAAP financial measures mentioned in today's call to the most directly comparable GAAP measures.

For today's call, we have a presentation accompanying the call that management will refer to during their prepared remarks. And on Slide 2 is our full safe harbor statement. I would like to remind everyone that during this conference call, Nautilus management will make certain forward-looking statements, and so we ask that everyone read our safe harbor statement in the presentation. You can access the presentation by going to nautilusinc.com, then click on the Investor tab, and then click on the Events and Webcasts, and the presentation will be on that page.

And with that, it is my pleasure to turn the call over to Nautilus' CEO, Mr. Jim Barr.

Executive
James "Jim" Barr, IV

Thank you, John. Good afternoon, everyone, and thank you for joining today's call. Our first quarter of 2020 started out as a good quarter and turned into a much stronger quarter thanks to the agility of our entire organization as we captured the higher demand for home fitness products, primarily due to COVID-19 stay-at-home orders. We achieved stronger-than-expected results, including revenue growth of 11%, realized our first positive comp since the third quarter of 2018, lowered operating expenses and dramatically exceeded our EBITDA estimates. I'm incredibly proud of how our team came together to support one another, their families, our communities and our customers, keeping our business vibrant and moving forward during unprecedented times and facing a series of challenges.

During the COVID-19 pandemic, our first and foremost priority was and continues to be the safety of our employees, customers and partners. Before government orders were in place in the jurisdictions where Nautilus operates, we implemented our work-from-home policies for most employees worldwide, while continuing to provide leading customer care. Our distribution centers remained open for both receiving and shipping with strict guidelines on social distancing and worker health and safety protocols. A top priority for our entire organization is to serve customers during their time of need. And thanks to our company's agility, focus and persistent hard work, we've been able to meet most of our customers' needs.

As we enter the second quarter, we continue to benefit from the surging demand for at-home fitness and our company's ability to respond. Fortunately, our well-recognized brands, breadth and quality of our strong product