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 THIRD QUARTER RESULTS
MEDWAY, MA, October 19, 2010 — Cybex International, Inc. (NASDAQ: CYBI), a leading manufacturer of premium exercise equipment, today reported results for its third quarter ended September 25, 2010. Net sales for the third quarter of 2010 were $29.2 million compared to $29.0 million for the corresponding 2009 period. The Company reported a net loss for the third quarter of 2010 of $15,000, or $0.00 per diluted share, compared to net income of $81,000, or $0.00 per diluted share, reported for the corresponding 2009 period.
For the nine months ended September 25, 2010, net sales were $83.0 million compared to $85.7 million for 2009. The loss for the nine months ended September 25, 2010 was $1.1 million, or $0.07 per diluted share, compared to a net loss of $3.4 million, or $0.20 per diluted share, for 2009.
CYBEX Chairman and CEO John Aglialoro stated, “The third quarter of 2010 continued the stabilizing trend of Q2 with sales slightly higher than Q3 2009 and gross margins improving from both Q2 2010 and 2009 levels. The investments in marketing, sales and new products resulted in higher SG&A but we expect these investments to result in higher future sales as we penetrate new markets.”
The Company will hold a conference call today at 9:00 a.m. ET. 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 Q3 Earnings Release Conference Call.
About CYBEX
Cybex International, Inc. is a leading manufacturer of premium exercise equipment primarily for commercial 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, 2009, its Reports on Form 10-Q, its Current Reports on Form 8-K, and its proxy statement dated March 25, 2010.
- Financial Tables to Follow -
CYBEX INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(unaudited)
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 25, 2010 |
September 26, 2009 |
September 25, 2010 |
September 26, 2009 |
|||||||||||||
| Net sales |
$ | 29,235 | $ | 28,986 | $ | 83,023 | $ | 85,662 | ||||||||
| Cost of sales |
18,742 | 19,829 | 53,559 | 61,461 | ||||||||||||
| Gross profit |
10,493 | 9,157 | 29,464 | 24,201 | ||||||||||||
| As a percentage of sales |
35.9 | % | 31.6 | % | 35.5 | % | 28.3 | % | ||||||||
| Selling, general and administrative expenses |
10,505 | 8,997 | 30,294 | 27,932 | ||||||||||||
| Operating income (loss) |
(12 | ) | 160 | (830 | ) | (3,731 | ) | |||||||||
| Interest expense, net |
281 | 307 | 983 | 907 | ||||||||||||
| Loss before income taxes |
(293 | ) | (147 | ) | (1,813 | ) | (4,638 | ) | ||||||||
| Income tax benefit |
(278 | ) | (228 | ) | (689 | ) | (1,208 | ) | ||||||||
| Net income (loss) |
$ | (15 | ) | $ | 81 | $ | (1,124 | ) | $ | (3,430 | ) | |||||
| Basic and diluted net income (loss) per share |
$ | 0.00 | $ | 0.00 | $ | (0.07 | ) | $ | (0.20 | ) | ||||||
| Shares used in computing basic and diluted net income (loss) per share |
17,120 | 17,096 | 17,120 | 17,201 | ||||||||||||
- more -
-2-
CYBEX INTERNATIONAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(unaudited)
| September 25, 2010 |
December 31, 2009 |
|||||||
| ASSETS |
||||||||
| Current assets: |
||||||||
| Cash and cash equivalents |
$ | 3,897 | $ | 6,879 | ||||
| Accounts receivable, net |
16,756 | 16,815 | ||||||
| Inventories |
11,028 | 10,054 | ||||||
| Prepaid expenses and other |
1,526 | 1,216 | ||||||
| Deferred tax asset |
5,040 | 5,040 | ||||||
| Total current assets |
38,247 | 40,004 | ||||||
| Property and equipment, net |
30,143 | 31,835 | ||||||
| Deferred tax asset |
9,736 | 8,815 | ||||||
| Other assets |
4,422 | 7,981 | ||||||
| $ | 82,548 | $ | 88,635 | |||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY |
||||||||
| Current liabilities: |
||||||||
| Current maturities of long-term debt |
$ | 1,520 | $ | 2,415 | ||||
| Accounts payable |
3,848 | 4,436 | ||||||
| Accrued expenses |
12,470 | 12,046 | ||||||
| Total current liabilities |
17,838 | 18,897 | ||||||
| Long-term debt |
14,669 | 15,191 | ||||||
| Other liabilities |
8,118 | 11,438 | ||||||
| Total liabilities |
40,625 | 45,526 | ||||||
| Stockholders’ equity |
41,923 | 43,109 | ||||||
| $ | 82,548 | $ | 88,635 | |||||
###
-3-