HUFFY CORPORATION (NYSE: HUF) announced today that it has received official notice from the New York Stock Exchange (NYSE) indicating that the Corporation has fallen below the Exchange’s continued listing criteria as outlined in the NYSE Listed Company Manual. The notice indicates that non-compliance is the result of the Corporation’s total market capitalization of less than $50 million for the 30 trading days ended July 21, 2004 and the Company’s recent press release indicating that it expects shareholder’s equity to be negative as a result of significant operating losses, as well as the impact of the revaluation of intangible assets and the recording of a full valuation allowance against deferred tax.
The notice indicates that the Company is now subject to the rules of Section 801 and Section 802 of the NYSE Listed Company Manual, which requires that the Company respond to the Exchange within a specified time frame with a business plan that demonstrates compliance with the continued listing standards within 18 months of receipt of notice of non-compliance. The notice also stated that an indicator of non-compliance will be transmitted on the consolidated tape with the quotes and trades of Company’s common stock – within five business days of receipt of notification. The indicator will be removed at such time as the Company is deemed compliant with the NYSE’s continued listing standards.
In the event that the Corporation’s business plan is not accepted by the Listing and Compliance Committee of the NYSE, the Company will be subject to suspension by the Exchange and delisting by the Securities and Exchange Commission.
Huffy Corporation (NYSE: HUF) is a diversified sporting goods company, marketing bicycles and wheeled products under the Huffy(R), Royce Union(R), and Micro(R) brands; golf equipment under the Tommy Armour(R), Ram(R), Teardrop(R) and Zebra(R) brands; snowboards and accessories under the LTD(R), Lamar(R) and Sims(R) brands; Hespeler(R) hockey equipment; and a variety of action sports items including skateboards, inline skates, and helmets under the UltraWheels(R), Rage(R), and Dukes(R) brands, and markets a variety of products as a licensee under certain Disney(R) trademarks.
The discussion in this press release contains forward-looking statements and is qualified by the cautionary statements contained in the Huffy Corporations report on Form 10-K, dated March 5, 2004.