Nautilus received warning that it does not meet NYSE market capitalization or equity standards

Nautilus gets warning about market cap from NYSE

VANCOUVER, Wash. — Fitness company Nautilus Inc. said Wednesday it 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.

Stocks on the NYSE are required to maintain an average market capitalization of at least $50 million over any 30-day period, or they must have at least $50 million in total shareholder equity. Nautilus said it received a notification from the NYSE on Thursday informing it that is not in compliance with those rules.

The company’s market capitalization was $39.7 million as of the end of trading on Tuesday, when its shares closed at $1.29. Nautilus had about 30.7 million shares outstanding during the second quarter.

Nautilus said it has 45 days to send the NYSE a plan demonstrating that it will be able to regain compliance within 18 months. The exchange will take up to 45 days to review the plan and decide if Nautilus has shown it will be able to comply with the rules.

If the NYSE approves the plan, it will monitor Nautilus. Nautilus shares would continue to be listed on the NYSE during that 18-month period. If it rejects the plan, the company will transition to another stock exchange.

The plan includes progress updates with its new third-party consumer credit finance provider, GE Money Bank. Since starting the new program with GE Money Bank, Nautilus said it has already seen incremental improvement in credit approval rates and that it expects this trend to continue and to contribute to improved operating results.

Nautilus stock fell 2 cents on Wednesday to close at $1.27.

(This version corrects story to indicate that plan includes updates about progress with consumer financing provider and adds company projection about possible impact of better credit approval rates. Also updates stock price.)