Cybex Announces Second Quarter Results; Sales up 16%.MEDWAY, Mass. -- Cybex International, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : CYBI), a leading manufacturer of premium exercise equipment for the commercial and consumer markets, today reported results for its second quarter ended June 30, 2007. 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 of 2007 increased by 16% to $34.7 million compared to $30.0 million for the corresponding 2006 period. This increase was driven by strong sales of both the Company's strength 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). products. The Company reported net income for the second quarter of 2007 of $1.1 million, or $0.06 per diluted share, for the quarter. The Company's net income of $16.1 million, or $0.96 per diluted share, reported for the second quarter of 2006 included a $14.4 million, or $0.86 per diluted share, reduction in the Company's tax valuation reserve. In addition, the Company's effective tax rate was 41.5% in the second quarter of 2007 compared to 3.5% in the corresponding 2006 period. The difference between the 2007 and 2006 effective tax rates would equate to additional tax expense of $663,000, or $0.04 per diluted share, for the 2006 period. For the six months ended June 30, 2007, net sales increased by 18% to $69.4 million compared to $58.9 million for 2006. Net income for the six months ended June 30, 2007 was $2.2 million, or $0.12 per diluted share, compared to net income of $16.8 million, or $1.03 per diluted share for 2006. The 2006 results included the second quarter reduction in the tax valuation reserve referred to above which impacted the 2006 six month results by $0.89 per diluted share. The difference between the 2007 and 2006 effective tax rates for the six month period would equate to additional tax expense of $904,000, or $0.05 per diluted share for 2006. 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, "CYBEX's strong growth continued during the second quarter, in large part driven by new products. We believe that sales of the home product lines will supplement our growth, particularly in the traditionally strong fourth quarter. At the same time as we grow our revenues, we continue to make the investments in manufacturing and corporate capabilities necessary to drive growth and to create significant efficiencies and economies of scale in the future. The Selling, general and administrative costs administrative costs, n.pl the overhead expenses incurred in the operation of a dental benefits program, excluding costs of dental services provided. incurred during the quarter include investments for the future including the eNova new product development and the hospitality and home market marketing initiatives. The gross margins were negatively impacted by product mix including a high percentage of sales from new products which typically are introduced at a high cost of goods and can often be reduced with experience and volume. As we look ahead we expect to retain a leadership position in the commercial market, develop a robust home business, improve our product quality and pricing, and reduce unit cost levels. More specifically, we are very excited about working hard to fully leverage our new, state-of-the-art Owatonna manufacturing facility. Although this investment will increase aggregate manufacturing costs in the near term, we expect it to enable us to achieve significant cost savings in the future and enable CYBEX to meet capacity issues associated with our growth plans." The Company will hold a conference call today. If you cannot participate in the call but wish to listen to it, you may login Signing in and gaining access to a network server, Web server or other computer system. The process (the noun) is a "login" or "logon," while the act of doing it (the verb) is to "log in" or to "log on. at CYBEX's website at www.cybexinternational.com. Under the category Company, click on Press Releases, scroll to bottom and select Q2 Earnings Release Conference Call. About CYBEX 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 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. for the year ended December 31, 2006, 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 10, 2007. [TABLE OMITTED] [TABLE OMITTED] |
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