Attached files
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| 8-K - FORM 8-K - CYBEX INTERNATIONAL INC | d244591d8k.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 18, 2011— Cybex International, Inc. (NASDAQ: CYBI), a leading manufacturer of premium exercise equipment, today reported results for its third quarter ended September 24, 2011. Net sales for the third quarter of 2011 were $33.5 million compared to $29.2 million for the corresponding 2010 period. The Company reported a net loss for the third quarter of 2011 of $.3 million, or $0.02 per diluted share, compared to a net loss of $15,000, or $0.00 per diluted share, reported for the corresponding 2010 period.
For the nine months ended September 24, 2011, net sales were $97.1 million compared to $83.0 million for 2010. The loss for the nine months ended September 24, 2011 was $.5 million, or $0.03 per diluted share, compared to a net loss of $1.1 million, or $0.07 per diluted share, for 2010.
The 2011 results include additional litigation charges of $1.4 million and $3.0 million for the quarter and nine months ended September 24, 2011, respectively, related to the Barnhard product liability judgment, primarily related to interest that is accruing at the annual rate of 9% on the judgment. As previously reported, the Company has filed an appeal of this judgment and enforcement of the judgment has been stayed during the continuance of the appellate process. Oral arguments before the Appellate Division of the New York Supreme Court are scheduled for the end of October and the Company believes that a decision on the appeal by the Appellate Division is likely within several months.
Cybex Chairman and CEO John Aglialoro stated, “Our most recent quarter is the fourth consecutive quarter of year-over-year sales growth. The sales increases are driven by both North America and International sales and across most product lines.”
President and COO Art Hicks stated, “Our latest treadmill models have sold well and I am optimistic that our new product panel displays that will be produced in Q4 will prove to be popular. We have strengthened the marketing and sales teams adding people and resources and will continue to build the Cybex brand.”
The Company will hold a conference call today at 4:30 p.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 the resolution of litigation involving the Company, the ability of the Company to comply with the terms of its credit facilities, competitive factors, technological and product developments, market demand, and economic conditions. 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, 2010, its Reports on Form 10-Q, its Current Reports on Form 8-K, and its proxy statement dated April 14, 2011.
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CYBEX INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(unaudited)
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 24, 2011 |
September 25, 2010 |
September 24, 2011 |
September 25, 2010 |
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| Net sales |
$ | 33,478 | $ | 29,235 | $ | 97,054 | $ | 83,023 | ||||||||
| Cost of sales |
21,728 | 18,742 | 63,053 | 53,559 | ||||||||||||
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| Gross profit |
11,750 | 10,493 | 34,001 | 29,464 | ||||||||||||
| As a percentage of sales |
35.1 | % | 35.9 | % | 35.0 | % | 35.5 | % | ||||||||
| Selling, general and administrative expenses |
10,404 | 10,505 | 30,818 | 30,294 | ||||||||||||
| Litigation charge |
1,362 | — | 3,005 | — | ||||||||||||
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| Operating income (loss) |
(16 | ) | (12 | ) | 178 | (830 | ) | |||||||||
| Interest expense, net |
240 | 281 | 781 | 983 | ||||||||||||
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| Loss before income taxes |
(256 | ) | (293 | ) | (603 | ) | (1,813 | ) | ||||||||
| Income tax expense (benefit) |
22 | (278 | ) | (149 | ) | (689 | ) | |||||||||
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| Net loss |
$ | (278 | ) | $ | (15 | ) | $ | (454 | ) | $ | (1,124 | ) | ||||
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| Basic and diluted net loss per share |
$ | (0.02 | ) | $ | (0.00 | ) | $ | (0.03 | ) | $ | (0.07 | ) | ||||
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| Shares used in computing basic and diluted net loss per share |
17,120 | 17,120 | 17,120 | 17,120 | ||||||||||||
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CYBEX INTERNATIONAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(unaudited)
| September 24, 2011 |
December 31, 2010 |
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| ASSETS |
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| Current assets: |
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| Cash and cash equivalents |
$ | 9,904 | $ | 7,030 | ||||
| Accounts receivable, net |
17,954 | 18,806 | ||||||
| Inventories |
13,523 | 11,060 | ||||||
| Prepaid expenses and other |
1,434 | 1,574 | ||||||
| Barnhard litigation related receivable |
16,255 | 15,904 | ||||||
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| Total current assets |
59,070 | 54,374 | ||||||
| Property and equipment, net |
28,214 | 29,693 | ||||||
| Other assets |
508 | 1,347 | ||||||
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| $ | 87,792 | $ | 85,414 | |||||
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| LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) |
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| Current liabilities: |
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| Current maturities of long-term debt |
$ | 1,520 | $ | 1,520 | ||||
| Accounts payable |
5,375 | 3,913 | ||||||
| Accrued expenses |
13,107 | 12,856 | ||||||
| Barnhard litigation reserve |
65,782 | 62,696 | ||||||
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| Total current liabilities |
85,784 | 80,985 | ||||||
| Long-term debt |
13,149 | 14,289 | ||||||
| Other liabilities |
4,110 | 5,150 | ||||||
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| Total liabilities |
103,043 | 100,424 | ||||||
| Stockholders’ equity (deficit) |
(15,251 | ) | (15,010 | ) | ||||
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| $ | 87,792 | $ | 85,414 | |||||
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