Nautilus Announces Strategic Review
26 September 2022 - 10:05PM
Business Wire
Board of Directors to evaluate opportunities to
accelerate transformation and enhance shareholder value
Company has engaged Evercore to assist in the
process
Nautilus, Inc. (NYSE: NLS) (“Nautilus” or the “Company”), an
innovation leader in home fitness for over 30 years, today
announced that its Board of Directors (the “Board”), with the
support of management, has launched a comprehensive review of
strategic alternatives, which may include a potential sale of the
Company, to identify opportunities to accelerate the Company’s
digital transformation under its previously announced North Star
plan and enhance shareholder value.
“We have made tremendous progress executing our North Star
strategy and transforming Nautilus from a product-led hardware
company to a consumer-led, digitally connected company,” said Anne
Saunders, Chairman of the Board. “Given the dynamic market
environment and growth of the home fitness sector, as well as the
potential we see to accelerate North Star, the Board felt the time
was right to review strategic options.”
CEO Jim Barr said, “With a portfolio of innovative products and
leading brands, and a wide and growing omni-channel distribution
network, Nautilus is well-positioned to deliver long-term growth
and profitability. Further, we continue to expand our digital
fitness platform, JRNY®, which exceeded 360,000 members as of June
30, 2022.”
Mr. Barr continued, “Regardless of the outcome of this process,
the future is bright for Nautilus. Our recent investments have
allowed us to reach more of our target customers, grow our member
base, add new retailer partners, and expand our supply chain
capacity. Given the state of the at-home fitness ecosystem, we
believe the timing is right to comprehensively assess any
opportunities that may accelerate our transformation and enhance
value for our shareholders, while also benefitting our customers,
employees, and vendors.”
The Board has engaged Evercore as a financial advisor to assist
in the process. The Board has not set a timetable for the
conclusion of this review and there can be no assurance that the
review will result in any transaction or other strategic change.
Nautilus does not intend to comment regarding developments in the
process, unless it determines that further disclosure is
appropriate or necessary.
Forward-Looking Statements
This press release includes forward-looking statements
(statements which are not historical facts) within the meaning of
the Private Securities Litigation Reform Act of 1995, including:
projected, targeted or forecasted financial, operating results and
capital expenditures, including but not limited to net sales growth
rates, gross margins, operating expenses, operating margins,
anticipated demand for the Company's new and existing products,
statements regarding the Company's prospects, resources or
capabilities; planned investments, strategic initiatives and the
anticipated or targeted results of such initiatives; the effects of
the COVID-19 pandemic on the Company’s business; and planned
operational initiatives and the anticipated cost-saving results of
such initiatives. All of these forward-looking statements are
subject to risks and uncertainties that may change at any time.
Factors that could cause Nautilus, Inc.’s actual expectations to
differ materially from these forward-looking statements also
include: weaker than expected demand for new or existing products;
our ability to timely acquire inventory that meets our quality
control standards from sole source foreign manufacturers at
acceptable costs; risks associated with current and potential
delays, work stoppages, or supply chain disruptions, including
shipping delays due to the severe shortage of shipping containers;
an inability to pass along or otherwise mitigate the impact of raw
material price increases and other cost pressures, including
unfavorable currency exchange rates and increased shipping costs;
experiencing delays and/or greater than anticipated costs in
connection with launch of new products, entry into new markets, or
strategic initiatives; our ability to hire and retain key
management personnel; changes in consumer fitness trends; changes
in the media consumption habits of our target consumers or the
effectiveness of our media advertising; a decline in consumer
spending due to unfavorable economic conditions; risks related to
the impact on our business of the COVID-19 pandemic or similar
public health crises; softness in the retail marketplace;
availability and timing of capital for financing our strategic
initiatives, including being able to raise capital on favorable
terms or at all; changes in the financial markets, including
changes in credit markets and interest rates that affect our
ability to access those markets on favorable terms and the impact
of any future impairment. Additional assumptions, risks and
uncertainties are described in detail in our registration
statements, reports and other filings with the Securities and
Exchange Commission, including the “Risk Factors” set forth in our
Annual Report on Form 10-K, as supplemented by our quarterly
reports on Form 10-Q. Such filings are available on our website or
at www.sec.gov. You are cautioned that such statements are not
guarantees of future performance and that our actual results may
differ materially from those set forth in the forward-looking
statements. We undertake no obligation to publicly update or revise
forward-looking statements to reflect subsequent developments,
events, or circumstances.
About Nautilus, Inc.
Nautilus, Inc. (NYSE:NLS) is a global leader in digitally
connected home fitness solutions. The company’s brand family
includes Bowflex®, Nautilus®, Schwinn®, and JRNY®, its digital
fitness platform. With a broad selection of exercise bikes, cardio
equipment, and strength training products, Nautilus, Inc. empowers
healthier living through individualized connected fitness
experiences; and in doing so, envisions building a healthier world,
one person at a time.
Headquartered in Vancouver, Washington, the company’s products
are sold direct to consumers on brand websites and through retail
partners and are available throughout the U.S. and internationally.
Nautilus, Inc. uses the investor relations page of its website
(www.nautilusinc.com/investors) to make information available to
its investors and the market.
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version on businesswire.com: https://www.businesswire.com/news/home/20220926005700/en/
Investor Relations: John Mills ICR, LLC 646-277-1254
John.mills@icrinc.com Media: John Fread Nautilus, Inc
360-859-5815 jfread@nautilus.com Ted McHugh Edelman Smithfield
201-341-0211 Ted.mchugh@edelman.com
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