------------------------------- -------------------------------
CUSIP No. 63910B102 Page 1 of 6 pages
------------------------------- -------------------------------
OMB APPROVAL
OMB Number: 3235-0145
Expires: February 28, 2006
Estimated average burden hours
per response. . . 15
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
Amendment No. 2
Nautilus, Inc.
----------------
(Name of Issuer)
Common Stock, no par value
--------------------------
(Title of Class of Securities)
63910B102
---------
(CUSIP Number)
Direct any Notices and Communications to:
-----------------------------------------
George J. Mazin, Esq.
Dechert LLP
30 Rockefeller Plaza
New York, NY 10112
May 8, 2006
------------
(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition that is the subject of this Schedule 13D, and is filing this
schedule because of ss.ss. 240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the
following box. [ ]
The information required in the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the Securities Exchange Act of
1934 ("Act") or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act.
Page 1 of 6 Pages
------------------------------- -------------------------------
CUSIP No. 63910B102 Page 2 of 6 pages
------------------------------- -------------------------------
--------- ------------------------------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1 SS. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
PHILIP TIMON
--------- ------------------------------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP Not Applicable
2
--------- ------------------------------------------------------------------------------------------------------
SEC USE ONLY
3
--------- ------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS
WC
--------- ------------------------------------------------------------------------------------------------------
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(D) OR 2(E) [ ]
--------- ------------------------------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
UNITED STATES OF AMERICA
----------------------- --------- ------------------------------------------------------------------------------
SOLE VOTING POWER
7
NUMBER OF 2,185,829*
SHARES --------- ------------------------------------------------------------------------------
BENEFICIALLY OWNED SHARED VOTING POWER
BY EACH 8
REPORTING PERSON 0
WITH --------- ------------------------------------------------------------------------------
SOLE DISPOSITIVE POWER
9
0
--------- ------------------------------------------------------------------------------
SHARED DISPOSITIVE POWER
10
2,185,829*
----------- ----------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,185,829*
----------- ----------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES [ ]
----------- ----------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
6.66%
----------- ----------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
IN
----------- ----------------------------------------------------------------------------------------------------
------------------------------- -------------------------------
CUSIP No. 63910B102 Page 3 of 6 pages
------------------------------- -------------------------------
* Endowment Capital, L.P., and Long Drive, L.P., each a Delaware limited
partnership (collectively, the "Limited Partnerships"), own in the
aggregate 2,185,829 shares of the common stock, no par value per share
(the "Shares") of Nautilus, Inc., a Washington corporation (the
"Company"). Endowment Capital Group, LLC, a Delaware limited liability
company, is the sole general partner of each of the Limited Partnerships.
Mr. Philip Timon is the sole managing member of Endowment Capital Group,
LLC. As a result, Mr. Timon possesses the sole power to vote and the sole
power to direct the disposition of the Shares held by the Limited
Partnerships. Thus, as of May 9, 2006, for the purposes of Reg. Section
240.13d-3, Mr. Timon is deemed to beneficially own 2,185,829 Shares, or
approximately 6.66% of the Shares deemed issued and outstanding as of that
date. Mr. Timon's interest in the Shares is limited to his pecuniary
interest, if any, in the Limited Partnerships.
ITEM 1. Security and Issuer
(a). Name of Issuer: NAUTILUS, INC.
(b). Address of Issuer's Principal Executive Offices:
1400 NE 136th Avenue
Vancouver, Washington 98684
(c). Title of Class of Securities: Common Stock, no par value
(d). CUSIP Number: 63910B102
ITEM 2. Identity and Background
This Statement is being filed by Mr. Philip Timon, whose business
address is 1105 North Market Street, 15th Floor, Wilmington, DE 19801, who
serves as the managing member of Endowment Capital Group, LLC, which is the sole
general partner of the Limited Partnerships, and in such capacity is principally
responsible for the management of the affairs of the Limited Partnerships. The
Limited Partnerships are each engaged in the investment in personal property of
all kinds including but not limited to capital stock, depository receipts,
investment companies, subscriptions, warrants, bonds, notes, debentures, options
and other securities and instruments of various kind and nature. Mr. Timon has
never been convicted in a criminal proceeding (excluding traffic violations and
similar misdemeanors), nor has he been a party to any civil proceeding commenced
before a judicial or administrative body of competent jurisdiction as a result
of which he was or is now subject to a judgment, decree or final order enjoining
future violations of, or prohibiting or mandating activities subject to, federal
or state securities laws or finding any violation with respect to such laws. Mr.
Timon is a United States citizen.
------------------------------- -------------------------------
CUSIP No. 63910B102 Page 4 of 6 pages
------------------------------- -------------------------------
ITEM 3. Source and Amount of Funds or Other Consideration.
The Limited Partnerships have invested an aggregate amount of
$34,787,061.08 (exclusive of brokerage commissions) in the Shares of the Company
reported hereunder. Some of these funds were invested directly in the Shares of
the Company, and some were invested in securities convertible into, exercisable
or exchangeable for Shares. The sources of the funds used to purchase the Shares
of the Company held by the Limited Partnerships and the securities convertible
into, exercisable or exchangeable for Shares by the Limited Partnerships are the
working capital of the Limited Partnerships.
ITEM 4. Purpose of Transaction.
The Limited Partnerships acquired and continue to hold the Shares as a
long-term investment. Mr. Timon utilizes a fundamental, research-driven process
to identify companies as being fundamentally undervalued and possessing the
potential for high growth. In implementing this process, Mr. Timon identified
the Company as an entity satisfying his rigorous investment criteria.
ITEM 5. Interest in Securities of the Issuer.
Based upon the information set forth in the Company's Annual Report on
Form 10-K as filed with the Securities and Exchange Commission on March 16,
2006, there were 32,800,986 Shares issued and outstanding as of March 1, 2006.
As of May 9, 2006, the Limited Partnerships own in the aggregate 2,185,829
Shares. Mr. Timon possesses the sole power to vote and the sole power to direct
the disposition of the Shares held by the Limited Partnerships. Thus, as of May
9, 2006, for purposes of Reg. Section 240.13d-3, Mr. Timon is deemed to
beneficially own 2,185,829 Shares, or approximately 6.66% of the Shares deemed
issued and outstanding as of that date.
Mr. Timon's interest in the Shares is limited to his pecuniary
interest, if any, in the Limited Partnerships.
The following table details the transactions during the sixty days
prior to May 9, 2006 in Shares, or securities convertible into, exercisable or
exchangeable for Shares, by Mr. Timon or any other person or entity controlled
by him or any person or entity for which he possesses voting or investment
control over the securities thereof (each of which were effected in an ordinary
brokerage transaction):
------------------- ---------------- ------------- ---------------------- ------------------- ----------------------
Date Transaction Symbol Description # of Shares or Price per Share or
Units Unit ($)
------------------- ---------------- ------------- ---------------------- ------------------- ----------------------
------------------- ---------------- ------------- ---------------------- ------------------- ----------------------
3/8/2006 BY NLS NAUTILUS INC 10,000 $15.0500
------------------- ---------------- ------------- ---------------------- ------------------- ----------------------
------------------- ---------------- ------------- ---------------------- ------------------- ----------------------
3/9/2006 BY NLS NAUTILUS INC 20,300 $14.9416
------------------- ---------------- ------------- ---------------------- ------------------- ----------------------
------------------- ---------------- ------------- ---------------------- ------------------- ----------------------
3/9/2006 BY NLS NAUTILUS INC 30,000 $14.9157
------------------- ---------------- ------------- ---------------------- ------------------- ----------------------
------------------- ---------------- ------------- ---------------------- ------------------- ----------------------
3/9/2006 BY NLS NAUTILUS INC 42,000 $15.0500
------------------- ---------------- ------------- ---------------------- ------------------- ----------------------
------------------- ---------------- ------------- ---------------------- ------------------- ----------------------
Put NAUTILUS INC Jul
3/9/2006 CS NLS+SV 12.50 2,000 $0.6750
------------------- ---------------- ------------- ---------------------- ------------------- ----------------------
------------------- ---------------- ------------- ---------------------- ------------------- ----------------------
------------------------------- -------------------------------
CUSIP No. 63910B102 Page 5 of 6 pages
------------------------------- -------------------------------
3/10/2006 BY NLS NAUTILUS INC 21,300 $14.9035
------------------- ---------------- ------------- ---------------------- ------------------- ----------------------
------------------- ---------------- ------------- ---------------------- ------------------- ----------------------
3/10/2006 BY NLS NAUTILUS INC 11,500 $14.7523
------------------- ---------------- ------------- ---------------------- ------------------- ----------------------
------------------- ---------------- ------------- ---------------------- ------------------- ----------------------
3/10/2006 BY NLS NAUTILUS INC 47,250 $14.8000
------------------- ---------------- ------------- ---------------------- ------------------- ----------------------
------------------- ---------------- ------------- ---------------------- ------------------- ----------------------
3/10/2006 BY NLS NAUTILUS INC 14,900 $14.8957
------------------- ---------------- ------------- ---------------------- ------------------- ----------------------
------------------- ---------------- ------------- ---------------------- ------------------- ----------------------
3/10/2006 DI NLS NAUTILUS INC -
------------------- ---------------- ------------- ---------------------- ------------------- ----------------------
------------------- ---------------- ------------- ---------------------- ------------------- ----------------------
3/13/2006 BY NLS NAUTILUS INC 38,100 $15.1365
------------------- ---------------- ------------- ---------------------- ------------------- ----------------------
------------------- ---------------- ------------- ---------------------- ------------------- ----------------------
3/13/2006 BY NLS NAUTILUS INC 35,000 $15.0944
------------------- ---------------- ------------- ---------------------- ------------------- ----------------------
------------------- ---------------- ------------- ---------------------- ------------------- ----------------------
3/14/2006 BY NLS NAUTILUS INC 40,000 $14.6932
------------------- ---------------- ------------- ---------------------- ------------------- ----------------------
------------------- ---------------- ------------- ---------------------- ------------------- ----------------------
3/14/2006 BY NLS NAUTILUS INC 200 $14.5750
------------------- ---------------- ------------- ---------------------- ------------------- ----------------------
------------------- ---------------- ------------- ---------------------- ------------------- ----------------------
3/15/2006 BY NLS NAUTILUS INC 5,000 $14.8500
------------------- ---------------- ------------- ---------------------- ------------------- ----------------------
------------------- ---------------- ------------- ---------------------- ------------------- ----------------------
3/21/2006 BY NLS NAUTILUS INC 5,000 $15.0344
------------------- ---------------- ------------- ---------------------- ------------------- ----------------------
------------------- ---------------- ------------- ---------------------- ------------------- ----------------------
3/21/2006 BY NLS NAUTILUS INC 25,000 $15.1000
------------------- ---------------- ------------- ---------------------- ------------------- ----------------------
------------------- ---------------- ------------- ---------------------- ------------------- ----------------------
Put NAUTILUS INC Jan
3/21/2006 CS OND+MV 12.50 1,000 $1.2000
------------------- ---------------- ------------- ---------------------- ------------------- ----------------------
------------------- ---------------- ------------- ---------------------- ------------------- ----------------------
3/22/2006 BY NLS NAUTILUS INC 900 $14.9000
------------------- ---------------- ------------- ---------------------- ------------------- ----------------------
------------------- ---------------- ------------- ---------------------- ------------------- ----------------------
3/23/2006 BY NLS NAUTILUS INC 19,100 $14.9632
------------------- ---------------- ------------- ---------------------- ------------------- ----------------------
------------------- ---------------- ------------- ---------------------- ------------------- ----------------------
3/29/2006 BY NLS NAUTILUS INC 12,000 $14.8008
------------------- ---------------- ------------- ---------------------- ------------------- ----------------------
------------------- ---------------- ------------- ---------------------- ------------------- ----------------------
Put NAUTILUS INC Jan
4/3/2006 CS OND+MV 12.50 1,000 $1.1417
------------------- ---------------- ------------- ---------------------- ------------------- ----------------------
------------------- ---------------- ------------- ---------------------- ------------------- ----------------------
4/4/2006 SL NLS NAUTILUS INC 30,000 $15.5375
------------------- ---------------- ------------- ---------------------- ------------------- ----------------------
------------------- ---------------- ------------- ---------------------- ------------------- ----------------------
4/4/2006 SL NLS NAUTILUS INC 2,200 $15.7055
------------------- ---------------- ------------- ---------------------- ------------------- ----------------------
------------------- ---------------- ------------- ---------------------- ------------------- ----------------------
4/5/2006 SL NLS NAUTILUS INC 25,000 $16.7104
------------------- ---------------- ------------- ---------------------- ------------------- ----------------------
------------------- ---------------- ------------- ---------------------- ------------------- ----------------------
4/6/2006 SL NLS NAUTILUS INC 9,000 $16.8208
------------------- ---------------- ------------- ---------------------- ------------------- ----------------------
------------------- ---------------- ------------- ---------------------- ------------------- ----------------------
Put NAUTILUS INC Jan $
4/13/2006 CS OND+MV 12.50 3,000 $0.7932
------------------- ---------------- ------------- ---------------------- ------------------- ----------------------
------------------- ---------------- ------------- ---------------------- ------------------- ----------------------
5/3/2006 SL NLS NAUTILUS INC 3,000 $17.4140
------------------- ---------------- ------------- ---------------------- ------------------- ----------------------
------------------- ---------------- ------------- ---------------------- ------------------- ----------------------
5/4/2006 SL NLS NAUTILUS INC 30,700 $18.5380
------------------- ---------------- ------------- ---------------------- ------------------- ----------------------
------------------- ---------------- ------------- ---------------------- ------------------- ----------------------
5/4/2006 SL NLS NAUTILUS INC 10,000 $18.5350
------------------- ---------------- ------------- ---------------------- ------------------- ----------------------
------------------- ---------------- ------------- ---------------------- ------------------- ----------------------
5/8/2006 SL NLS NAUTILUS INC 35,000 $18.4616
------------------- ---------------- ------------- ---------------------- ------------------- ----------------------
------------------- ---------------- ------------- ---------------------- ------------------- ----------------------
5/8/2006 SL NLS NAUTILUS INC 101,800 $18.5456
------------------- ---------------- ------------- ---------------------- ------------------- ----------------------
------------------- ---------------- ------------- ---------------------- ------------------- ----------------------
5/8/2006 SL NLS NAUTILUS INC 174,000 $18.4950
------------------- ---------------- ------------- ---------------------- ------------------- ----------------------
------------------- ---------------- ------------- ---------------------- ------------------- ----------------------
5/9/2006 SL NLS NAUTILUS INC 10,500 $18.0939
------------------- ---------------- ------------- ---------------------- ------------------- ----------------------
------------------- ---------------- ------------- ---------------------- ------------------- ----------------------
5/9/2006 SL NLS NAUTILUS INC 63,100 $18.2018
------------------- ---------------- ------------- ---------------------- ------------------- ----------------------
ITEM 6. Contracts, Arrangements, Understandings or Relationships with Respect
to Securities of the Issuer
None
SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
------------------------------- -------------------------------
CUSIP No. 63910B102 Page 6 of 6 pages
------------------------------- -------------------------------
PHILIP TIMON
Date: May 10, 2006 By /S/ Philip Timon
Philip Timon, in his
capacity as sole managing
member of Endowment Capital
Group, LLC, the sole
general partner of
Endowment Capital, L.P. and
Long Drive, L.P.