Nautilus, Inc. has completed the sale of non-core assets, including the Nautilus brand trademark assets and related licenses, for approximately $13 million. The connected home fitness solution company used the net proceeds from the divestiture to pay down part of its term loan. Additionally, the Bowflex parent has improved the terms of its revolving credit facility, which currently has no outstanding balance, by reducing its capacity to $60 million from $100 million.
The group said the actions improve its financial flexibility and balance sheet, giving it additional confidence that it can “manage through the current (economic) environment.”
Simultaneous with the developments, Nautilus released preliminary Q4 and FY results that exceeded its internal expectations through continued strong demand in its direct business in the final period and ongoing inventory management and cost-control initiatives. In Q4, the adjusted Ebitda loss improved to $12.55 million from a loss of $16.87 million as total period revenues slipped by 43 percent year-over-year to $68.4 million from $119.7 million. The loss from continuing operations was $20.9 million versus a loss of $18.2 million. For the FY, the loss from continuing operations came in at $107.5 million versus a loss of $22.2 million as annual revenues dipped by 51.3 percent to $286.8 million from $589.5 million. The annual sales were 6.2 percent above expectations of $270 million. The FY adjusted Ebitda loss was $46.6 million against a loss of $3.3 million.
