Nautilus Inc. has received a warning that its shares could be delisted from the New York Stock Exchange if it cannot increase its market capitalization or shareholder equity.
The exchange said in a letter to Nautilus that the company has fallen below standards for market capitalization and stockholder equity. Exchange rules require that the company either be valued at $50 million or more, or its stockholder equity be not less than $50 million. The company is currently valued at about $40 million.
Nautilus now has to submit a plan explaining how it will boost its value. The exchange then has 45 days to decide whether the plan will work and Nautilus can continue to be listed.
Nautilus said the plan it will submit to the NYSE will include the company's progress with their new third-party consumer credit finance provider. As previously announced, the company experienced considerable declines in approval rates from its prior provider and decided to replace that program with a new agreement with GE Money Bank. Since implementing the new program with GE Money Bank, the Company has already seen incremental improvement in credit approval rates during the month of September and management expects this trend will continue in coming months and contribute to improved operating results.
Edward Bramson, chairman and chief executive officer of Nautilus, Inc., stated, “We are confident that our business is moving in the right direction following the implementation of our new consumer credit financing offerings. The underlying demand for our products continues to be strong, and we believe that our new relationship with GE Money Bank will enable us to take advantage of consumer demand and deliver improved financial results.”
The company's fitness brands include Nautilus, Bowflex, Schwinn Fitness, and Universal.
