Cybex Announces Q2 Results; Pro Forma EPS of $.10 vs $.07.MEDWAY
Medway is the name given to a conurbation and unitary authority in north Kent, England. , Mass. -- Cybex International, Inc. (AMEX AMEX See: American Stock Exchange : CYB CYB Canada Year Book (Historical Collection) CYB Cayman Brac Island, Cayman Islands (Airport Code) CYB Cover Your Butt CYB Carlsbad Youth Baseball (Carlsbad, California) ), a leading exercise equipment manufacturer, today reported results for the second quarter ended July July: see month. 1, 2006. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for the second quarter 2006 were $29,951,000, compared to $27,197,000 for the corresponding 2005 period, an increase of 10.1%. For the six months ended July 1, 2006, net sales were $58,863,000, compared to $51,956,000 for 2005, an increase of 13.3%. On a GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). basis, the Company reported net income for the second quarter of 2006 of $16,108,000, or $0.96 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, and for the six months ended July 1, 2006 of $16,775,000, or $1.03 per diluted share. Excluding a second quarter 2006 reduction of the valuation reserve for deferred taxes, the Company's second quarter 2006 pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma net income would have been $1,687,000, or $0.10 per diluted share, compared to net income for the second quarter of 2005 of $1,038,000, or $0.07 per diluted share. The pro forma net income for the six months ended July 1, 2006 would have been $2,354,000, or $0.14 per diluted share, compared to net income of $1,157,000, or $0.07 per diluted share for the corresponding 2005 period. Actual GAAP results for the second quarter ended July 1, 2006, include a $14,421,000 reduction in the Company's deferred tax valuation reserve, resulting in a net tax benefit of $14,359,000 and $14,296,000, respectively, for the three and six months ended July 1, 2006. In 2002 the Company recorded a $20,773,000 non-cash charge Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. to establish a valuation reserve for deferred taxes. During the second quarter ended July 1, 2006, the Company reevaluated the need for a valuation allowance in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System No. 109, "Accounting for Income Taxes," as a result of the cumulative profits generated in the most recent three year period as well as other positive evidence, including the repayment Repayment The act of paying back a debt. Notes: Everyone has to repay their debts eventually. See also: Debt, Defeasance, Loan of outstanding debt and the Company's stock offering, which was completed in May 2006. Accordingly, the net deferred tax asset of $14,421,000 at July 1, 2006 represents the amount that management believes is more likely than not to be realized. At July 1, 2006, the remaining valuation allowance is approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $6,600,000 million. Management will continue to assess the need for the remaining valuation allowance in future periods. John Aglialoro, Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , stated, "We are working hard to accelerate our re-entry RE-ENTRY, estates. The resuming or retaking possession of land which the party lately had. 2. Ground rent deeds and leases frequently contain a clause authorizing the landlord to reenter on the non-payment of rent, or the breach of some covenant, when the into the high-end high-end adj. Informal 1. Appealing to sophisticated and discerning customers: a high-end department store; high-end video equipment. 2. consumer fitness equipment market. CYBEX is expanding its specialty A contract under seal. A specialty is a written document that has been sealed and delivered and is given as security for the payment of a specifically indicated debt. fitness dealer relationships and expects to begin shipping two premium consumer products by the end of 2006. This will mean incurring in·cur tr.v. in·curred, in·cur·ring, in·curs 1. To acquire or come into (something usually undesirable); sustain: incurred substantial losses during the stock market crash. 2. expenses planned for 2007 beginning in the third quarter of 2006. However, the Company believes these investments will begin paying off in the fourth quarter of 2006 and will provide a good foundation for 2007 and beyond." Cybex International, Inc. is a leading manufacturer of premium exercise equipment for commercial and consumer use. The CYBEX product line includes a full range of both strength training and cardio Cardio is the medical term used to reference the heart. From Greek kardia: heart. The Greek spelling using k is the reason for the usage of K in EKG (electrocardiogram). training machines sold worldwide under the CYBEX brand. Products and programs are designed and engineered to reflect the natural movement of the human body, assisting each unique user - from the professional athlete to the first-time exerciser - to improve daily human performance. For more information on CYBEX and its product line, please visit the Company's website at www.cybexinternational.com. This news release may contain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . 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 An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. involving the Company, and the ability of the Company to comply with the terms of its credit facilities credit facilities npl → facilidades fpl de crédito credit facilities npl → facilités fpl de paiement 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 Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. , its Reports on Form 10-Q Form 10-Q See 10-Q. , its Current Reports on Form 8-K Form 8-K The form required by the SEC when a publicly held company incurs any event that might affect its financial situation or the share value of its stock. Form 8-K See 8-K. , and its proxy statement Proxy Statement A document containing the information that a company is required by the SEC to provide to shareholders so they can make informed decisions about matters that will be brought up at an annual stockholder meeting. dated April 4, 2006.
CYBEX INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - ACTUAL
(In thousands, except per share data)
(unaudited)
Three Months Ended Six Months Ended
----------------- -----------------
July 1, June 25, July 1, June 25,
2006 2005 2006 2005
-------- -------- -------- --------
Net sales $29,951 $27,197 $58,863 $51,956
Cost of sales 19,089 17,546 37,450 33,450
-------- -------- -------- --------
Gross profit 10,862 9,651 21,413 18,506
As a percentage of sales 36.3% 35.5% 36.4% 35.6%
Selling, general and
administrative expenses 8,659 7,966 17,921 16,049
-------- -------- -------- --------
Operating income 2,203 1,685 3,492 2,457
Interest expense, net 454 619 1,013 1,215
-------- -------- -------- --------
Income before income taxes 1,749 1,066 2,479 1,242
Income tax provision (benefit) (14,359) 28 (14,296) 85
-------- -------- -------- --------
Net income $16,108 $1,038 $16,775 $1,157
======== ======== ======== ========
Basic net income per share $1.00 $.07 $1.08 $.08
======== ======== ======== ========
Diluted net income per share $.96 $.07 $1.03 $.07
======== ======== ======== ========
Shares used in computing basic net
income per share 16,041 15,121 15,599 15,113
======== ======== ======== ========
Shares used in computing diluted
net income per share 16,727 15,690 16,287 15,708
======== ======== ======== ========
CYBEX INTERNATIONAL, INC.
PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(unaudited)
Three Months Ended Six Months Ended
----------------- -----------------
July 1, June 25, July 1, June 25,
2006 2005 2006 2005
-------- -------- -------- --------
Net sales $29,951 $27,197 $58,863 $51,956
Cost of sales 19,089 17,546 37,450 33,450
-------- -------- -------- --------
Gross profit 10,862 9,651 21,413 18,506
As a percentage of sales 36.3% 35.5% 36.4% 35.6%
Selling, general and
administrative expenses 8,659 7,966 17,921 16,049
-------- -------- -------- --------
Operating income 2,203 1,685 3,492 2,457
Interest expense, net 454 619 1,013 1,215
-------- -------- -------- --------
Income before income Taxes 1,749 1,066 2,479 1,242
Income taxes 62 28 125 85
-------- -------- -------- --------
Net income $1,687 1,038 2,354 1,157
======== ======== ======== ========
Basic net income per share $0.11 $0.07 $0.15 $0.08
======== ======== ======== ========
Diluted net income per share $0.10 $0.07 $0.14 $0.07
======== ======== ======== ========
Shares used in computing basic net
income per share 16,041 15,121 15,599 15,113
======== ======== ======== ========
Shares used in computing diluted
net income per share 16,727 15,690 16,287 15,708
======== ======== ======== ========
CYBEX INTERNATIONAL, INC.
PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(unaudited)
Three Months Ended Six Months Ended
July 1, 2006 July 1, 2006
--------------------------- ---------------------------
Actual ProForma Actual ProForma
Results Adjustments Results Results Adjustments Results
------- ----------- -------- ------- ----------- -------
Net Sales $29,951 $- $29,951 $58,863 $- $58,861
Cost of sales 19,089 - 19,089 37,450 - 37,450
-------------------------------------------------------
Gross Profit 10,862 - 10,862 21,413 - 21,413
Selling,
general and
administrative
expenses
(SG&A) 8,659 - 8,659 17,921 - 17,921
-------------------------------------------------------
Operating
income 2,203 - 2,203 3,492 - 3,492
Interest
expense, net 454 - 454 1,013 - 1,013
-------------------------------------------------------
Income before
Income taxes 1,749 - 1,749 2,479 - 2,479
Income tax
provision
(benefit) (14,359) 14,421 62 (14,296) 14,421 125
-------------------------------------------------------
Net income $16,108 $(14,421) $1,687 $16,775 $(14,421) $2,354
=======================================================
Basic net
income
per share $1.00 $(.89) $0.11 $1.08 $(.93) $0.15
=======================================================
Diluted net
income per
Share $.96 $(.86) $0.10 $1.03 $(.89) $0.14
=======================================================
Shares used in
computing
basic net
income per
share 16,041 16,041 15,599 15,599
=======================================================
Shares used in
computing
diluted net
income (loss)
per share 16,727 16,727 16,287 16,287
=======================================================
CYBEX INTERNATIONAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(unaudited)
July 1, December 31,
2006 2005
------------ ------------
ASSETS
Current assets:
Cash $526 $807
Accounts receivable, net 14,860 18,320
Inventories 8,802 9,258
Prepaid expenses and other 3,610 2,707
Deferred tax asset 2,092 -
------------ ------------
Total current assets 29,890 31,092
Property and equipment, net 11,673 12,124
Goodwill 11,247 11,247
Deferred tax asset 12,329 -
Other assets 852 1,209
------------ ------------
$65,991 $55,672
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current maturities of long-term debt $- $3,929
Current portion of capital leases 374 481
Accounts payable 4,885 5,918
Accrued expenses 16,023 16,286
------------ ------------
Total current liabilities 21,282 26,614
Long-term debt - 9,730
Capital leases, excluding current portion 187 332
Other liabilities 2,099 2,808
------------ ------------
Total liabilities 23,568 39,484
Stockholders' equity 42,423 16,188
------------ ------------
$65,991 $55,672
============ ============
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