Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - CYBEX INTERNATIONAL INC | d8k.htm |
Exhibit 99.1
| COMPANY | Arthur W. Hicks, Jr. | |
| CONTACT: | President and COO | |
| (508) 533-4300 |
FOR IMMEDIATE RELEASE
CYBEX ANNOUNCES 2009 RESULTS
MEDWAY, MA, February 9, 2010 — Cybex International, Inc. (NASDAQ: CYBI), a leading manufacturer of premium exercise equipment for the commercial and consumer markets, today reported results for its fourth quarter and year ended December 31, 2009.
Net sales for the fourth quarter of 2009 were $34.8 million compared to $39.3 million for the corresponding 2008 period, a 12% decrease. The Company reported net income for the fourth quarter of 2009 of $1.0 million or $0.06 per diluted share, compared to a net loss of $10.9 million, or $0.62 per diluted share, for the corresponding 2008 period. Fourth quarter 2008 results include the goodwill impairment charge described below.
For the year ended December 31, 2009, net sales were $120.5 million compared to $147.9 million for 2008, a 19% decrease. The net loss for the year ended December 31, 2009 was $2.4 million, or $0.14 per diluted share, compared to a net loss of $9.1 million, or $0.52 per diluted share, for 2008.
The 2008 results include a fourth quarter non-cash non-deductible goodwill impairment charge of $11.3 million, or $0.64 per diluted share, principally triggered by declines in the Company’s stock price in the period.
John Aglialoro, Chairman and CEO stated, “I am pleased CYBEX achieved a profit in Q4 despite a sales decline. I am optimistic that our focus on market segments in addition to our traditional fitness club customers is the best course for the future. We will continue to work hard to meet the needs of fitness clubs but I am confident that many other types of customers will value the science-backed results that CYBEX products offer. We will continue to make cost effective investments to reach these markets, which we believe will generate profitable incremental sales in the years to come.”
The Company will hold a conference call today. If you cannot participate in the call but wish to listen to it, you may login at CYBEX’s website at www.cybexintl.com. Under the category Company, click on Press, scroll to bottom and select Q4 Earnings Release Conference Call.
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About CYBEX
Cybex International, Inc. is a leading manufacturer of premium exercise equipment for commercial and consumer use. The CYBEX product line, including a full range of strength and cardio training machines, is designed using exercise science to reflect the natural movement of the human body. Led by the Cybex Institute for Exercise Science, CYBEX fitness equipment is engineered to produce optimal results for users from the first-time exerciser to the professional athlete. Products are available for a wide range of facilities, from commercial health clubs to home gyms, and are sold in more than 85 countries worldwide. For more information on CYBEX and its product lines, visit the Company’s website at www.cybexintl.com.
This news release may contain forward-looking statements. There are a number of risks and uncertainties that could cause actual results to differ materially from those anticipated by the statements made above. These include, but are not limited to, competitive factors, technological and product developments, market demand, economic conditions, the resolution of litigation involving the Company, and the ability of the Company to comply with the terms of its credit facilities. Further information on these and other factors which could affect the Company’s financial results can be found in the Company’s previously filed Report on Form 10-K for the year ended December 31, 2008, its Reports on Form 10-Q, its Current Reports on Form 8-K, and its proxy statement dated March 26, 2009.
- Financial Tables to Follow -
CYBEX INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(unaudited)
| Three Months Ended | Year Ended | |||||||||||||||
| December 31, 2009 |
December 31, 2008 |
December 31, 2009 |
December 31, 2008 |
|||||||||||||
| Net sales |
$ | 34,811 | $ | 39,260 | $ | 120,474 | $ | 147,929 | ||||||||
| Cost of sales |
23,005 | 27,650 | 84,466 | 99,940 | ||||||||||||
| Gross profit |
11,806 | 11,610 | 36,008 | 47,989 | ||||||||||||
| As a percentage of sales |
33.9 | % | 29.6 | % | 29.9 | % | 32.4 | % | ||||||||
| Selling, general and administrative expenses |
9,748 | 10,081 | 37,680 | 42,321 | ||||||||||||
| Goodwill impairment charge |
— | 11,247 | — | 11,247 | ||||||||||||
| Operating income (loss) |
2,058 | (9,718 | ) | (1,672 | ) | (5,579 | ) | |||||||||
| Interest expense, net |
366 | 245 | 1,274 | 1,176 | ||||||||||||
| Income (loss) before income taxes |
1,692 | (9,963 | ) | (2,946 | ) | (6,755 | ) | |||||||||
| Income taxes (benefit) |
699 | 911 | (509 | ) | 2,333 | |||||||||||
| Net income (loss) |
$ | 993 | $ | (10,874 | ) | $ | (2,437 | ) | $ | (9,088 | ) | |||||
| Basic net income (loss) per share |
$ | .06 | $ | (0.62 | ) | $ | (0.14 | ) | $ | (0.52 | ) | |||||
| Diluted net income (loss) per share |
$ | .06 | $ | (0.62 | ) | $ | (0.14 | ) | $ | (0.52 | ) | |||||
| Shares used in computing basic net income (loss) per share |
17,101 | 17,539 | 17,175 | 17,465 | ||||||||||||
| Shares used in computing diluted net income (loss) per share |
17,133 | 17,539 | 17,175 | 17,465 | ||||||||||||
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CYBEX INTERNATIONAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(unaudited)
| December 31, 2009 |
December 31, 2008 | |||||
| ASSETS |
||||||
| Current assets: |
||||||
| Cash and cash equivalents |
$ | 6,879 | $ | 1,628 | ||
| Accounts receivable, net |
16,815 | 18,735 | ||||
| Inventories |
10,054 | 13,465 | ||||
| Prepaid expenses and other |
1,216 | 2,249 | ||||
| Deferred tax asset |
5,040 | 4,685 | ||||
| Total current assets |
40,004 | 40,762 | ||||
| Property and equipment, net |
31,835 | 36,551 | ||||
| Deferred tax asset |
8,815 | 8,698 | ||||
| Other assets |
7,981 | 5,290 | ||||
| $ | 88,635 | $ | 91,301 | |||
| LIABILITIES AND STOCKHOLDERS’ EQUITY |
||||||
| Current liabilities: |
||||||
| Current maturities of long-term debt |
$ | 2,415 | $ | 1,882 | ||
| Accounts payable |
4,436 | 5,965 | ||||
| Accrued expenses |
12,046 | 11,986 | ||||
| Total current liabilities |
18,897 | 19,833 | ||||
| Long-term debt |
15,191 | 16,606 | ||||
| Other liabilities |
11,438 | 9,411 | ||||
| Total liabilities |
45,526 | 45,850 | ||||
| Stockholders’ equity |
43,109 | 45,451 | ||||
| $ | 88,635 | $ | 91,301 | |||
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