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Cybex Announces First Quarter Results

Stocks in this article: CYBI

Cybex International, Inc. (NASDAQ: CYBI), a leading U.S. manufacturer of premium exercise equipment, today reported results for its first quarter ended March 31, 2012. Net sales for the first quarter of 2012 increased by 20.2% to $37.3 million compared to $31.0 million for the corresponding 2011 period. The Company reported a net profit for the first quarter of 2012 of $0.5 million, or $0.03 per diluted share, compared to a net profit for the first quarter of 2011 of $0.4 million or $0.02 per diluted share. Included in the results were charges of $93,000 and $356,000 for 2012 and 2011, respectively, related to the Barnhard v. Cybex International, Inc. product liability suit. As previously reported, a settlement of this litigation was consummated during the first quarter of 2012.

Cybex Chairman and CEO John Aglialoro stated, “We were pleased with revenue growth in Q1, which was strong in all markets. Led by sales of our new treadmill models, the 770T and 625T, the new products introduced during the last six months have been well received by our customers. While optimistic for the long-term, we are experiencing a degree of sluggishness in Q2 orders, which we believe reflects the general economic uncertainty both in the USA and internationally.”

Cybex President and COO Art Hicks stated, “Gross margins were lower than 2011 as expected, due to product mix and to higher initial costs of the new products. We expect to be able to lower the costs of these products in the second half of 2012.”

The Company will host a conference call today, Tuesday, April 24, 2012, at 4:30 p.m. ET to discuss first quarter financial results and answer questions from the investor audience. Those who wish to participate may dial toll-free (877) 397-0272 from the U.S. or (719) 325-4778 for international callers. A live webcast of the conference call will also be available on the Company’s website at www.cybexintl.com in the About Cybex, Press section. Please visit the website at least 15 minutes early to register for the teleconference webcast and download any necessary software. A replay of the call will be available starting today at 7:30 p.m. ET and lasting through Friday, May 4, 2012 by dialing (877) 870-5176 from the U.S. or (858) 384-5517 for international callers. The access code for the replay is 7915143.

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 Research Institute, Cybex fitness equipment is engineered to produce optimal results for users from the first-time exerciser to the professional athlete. Cybex designs and builds its products in the USA for a wide range of facilities, from commercial health clubs to home gyms, in more than 85 countries worldwide. For more information on Cybex and its products, 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 ability of the Company to comply with the terms of its credit facilities, competitive factors, technological and product developments, market demand, economic conditions, and the resolution of litigation involving the Company. 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, 2011, its Reports on Form 10-Q, its Current Reports on Form 8-K, and its proxy statement dated April 12, 2012.

   

CYBEX INTERNATIONAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(unaudited)

 
Three Months Ended
March 31,     March 26,
2012 2011
 
Net sales $ 37,259 $ 31,011
Cost of sales   25,008     19,765  
Gross profit 12,251 11,246
As a percentage of sales 32.9 % 36.3 %

Selling, general and administrative expenses

11,419

10,460

Litigation charge   93     356  
Operating income 739 430
Interest expense, net   257     276  

Income before income taxes

482

154

Income taxes (benefit)   12     (225 )
Net income $ 470   $ 379  
Basic and diluted net income per share

$

0.03

 

$

0.02

 
Shares used in computing basic net income per share  

17,120

   

17,120

 

Shares used in computing diluted net income per share

 

17,140

   

17,120

 
 

       

CYBEX INTERNATIONAL, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

(unaudited)

 
March 31, December 31,
2012 2011
ASSETS
Current assets:
Cash $ 2,529 $ 11,958
Accounts receivable, net 19,004 20,251
Inventories 14,352 13,584
Prepaid expenses and other 1,961 2,070
Barnhard litigation related receivable     7,561
Total current assets 37,846 55,424
Property and equipment, net 28,139 28,194
Other assets   960   1,025
$ 66,945 $ 84,643
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current maturities of long-term debt $ 2,061 $ 1,520
Accounts payable 5,198 5,364
Accrued liabilities 11,641 13,674
Barnhard litigation reserve     27,004
Total current liabilities 18,900 47,562
Long-term debt 22,348 12,769
Other liabilities   5,367   4,674
Total liabilities 46,615 65,005

Stockholders’ equity

  20,330   19,638
$ 66,945 $ 84,643




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