Cybex International, Inc. Announces First Quarter 1998 Results.MEDWAY, Mass.--(BUSINESS WIRE)--May 5, 1998--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 strength and cardiovascular equipment company, today reported results for its first quarter ended March 28, 1998. For the quarter ended March 28, 1998, 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 amounted to $28.6 million, compared to $32.4 million for the same period in 1997 on a 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 basis. Pro forma sales for 1997 include the Company's isokinetics business, which was sold in October of 1997. Cybex International, Inc. merged with Trotter trotter: see Standardbred horse. Inc. on May 23, 1997 and net sales and the attendant ATTENDANT. One who owes a duty or service to another, or in some sort depends upon him. Termes de la Ley, h.t. As to attendant terms, see Powell on Morts. Index, tit. Attendant term; Park on Dower, c. 1 7. historical operating results for the first quarter of 1997 reflect only Trotter versus the combined Company in 1998. Pro forma earnings pro forma earnings Income not necessarily calculated in accordance with generally accepted accounting principles. For example, a company might report pro forma earnings that exclude depreciation expense and nonrecurring expenses such as restructuring costs. information for the first quarter of 1997 is presented to facilitate comparison of operating results with 1998. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. increased to $2.7 million, compared to $2.4 million for the comparable period on a pro forma basis. Net income for the three-month period ended March 28, 1998 increased to $1.5 million, or $0.18 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, compared to $1.4 million, or $0.16 per diluted share for the comparable 1997 period on a pro forma basis. The Company announced in a press release on April 21, 1998 that revenue and earnings for the first quarter of 1998 were anticipated to be below expectations due primarily to a delay in the Hiker product to ensure a successful introduction, as well as softness experienced in sales of certain cardiovascular products. On May 23, 1997, Cybex merged with Trotter Inc. and Trotter was deemed to be the acquiring company for accounting purposes. Accordingly, the Company's financial statements include the combined results of Cybex and Trotter after the May 23, 1997 acquisition versus the historical stand-alone results of Trotter prior to that date in 1997. Peter Haines, President and Chief Executive Officer, stated, "The union between Cybex and Trotter was met with great anticipation as the investment community perceived a dominant fitness equipment company with two powerful brands. Our combined financial results for the 1998 first quarter include operating income results we believe are greater than the two companies could accomplish alone as evidenced by the accompanying pro forma information for 1997. Our Hiker product began shipping April 15, 1998 and initial order flow is exceeding our expectations. In regard to our consumer products, we have increased our efforts to target this $2.5 billion market, and expect to introduce new products during the second half of the year. Our expectations for Cybex going forward remain high and we feel confident that our financial and operating momentum will continue throughout the year." Cybex International, Inc. is a strength and cardiovascular equipment company which develops, manufactures and markets premium-quality, professional human performance products for the commercial and consumer markets. 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, and uncertainties relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the consolidation of the merged companies businesses. Further information on these and other factors which could affect the Company's financial results can be found in the Company's previously filed Reports on Form 10-Q Form 10-Q See 10-Q. , 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 3, 1998, its 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, 1997 and its Form 10-Q for the period ending March 28, 1998 which will be filed with the SEC on or about May 15, 1998. -0-
CYBEX INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(unaudited)
Three Months Ended
March 31, 1997
March 28,
1998 Historical Pro Forma
Net sales 28,637 15,541 32,440 (1)
(1)
Cost of sales 16,572 8,965 18,626
Gross profit 12,065 6,576 13,814
Selling, general and
administrative
expenses 9,372 4,208 11,374
Operating income 2,693 2,368 2,440
Interest expense, net 70 183 84
(Income) from joint
venture - - (50)
Income before income
taxes 2,623 2,185 2,406
Income tax provision 1,075 918 1,023
Net income 1,548 1,267 $ 1,383
$1,548 $1,267
Basic net income per
share $ 0.18 $ 0.30 $ 0.16
Diluted net income per
share $ 0.18 $ 0.29 $ 0.16
Shares used in computing
basic net income per
share 8,670 4,273 8,746
Shares used in computing
diluted net income per
share 8,826 4,397 8,746
(1) Pro forma 1997 net sales includes $3.1 million of
isokinetic product sales and excludes $1.4 million of pre-
merger Cybex treadmill sales.
CYBEX INTERNATIONAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands of dollars)
March 28, Dec. 31,
1998 1997
(unaudited)
ASSETS
Current Assets:
Cash and cash equivalents $ 8,381 $ 6,689
Accounts receivable, net 19,919 21,906
Inventories 7,990 6,980
Lease receivables 1,903 1,200
Other current assets 9,586 10,130
Total current assets 47,779 46,905
Property and equipment, net 12,742 13,103
Goodwill 10,711 10,785
Other assets 8,079 7,932
$79,311 $78,725
LIABILITIES AND STOCKHOLDERS EQUITY
Current Liabilities:
Current maturities of long-term debt $ 2,856 $ 2,954
Accounts payable 5,533 5,192
Other current liabilities 18,419 19,746
Total current liabilities 26,808 27,892
Long-term debt 10,514 10,685
Other liabilities 1,229 1,240
Stockholders equity 40,760 38,908
CONTACT: Cybex International, Inc., Medway Peter C. Haines President/Chief Executive Officer William S William, crown prince of Germany William or Frederick William, 1882–1951, crown prince of Germany, son of William II. In World War I he commanded (1914) an army on the Western Front and was nominal commander in the German attack . Hurley Hurley has become the English version of at least three distinct original Irish names: the Ó hUirthile, part of the Dál gCais tribal group, based in Clare and North Tipperary; the Ó Muirthile, based around Kilbritain in west Cork; and the OhIarlatha, from the district of Vice President/Chief Financial Officer (508) 533-4300 or Morgen-Walke Associates, Inc., New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of Investor Relations Investor relations The process by which the corporation communicates with its investors. : David Walke/Stacey Levitz Press: Michael McMullan (212) 850-5600 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion