Cybex International, Inc. Announces Results for First Quarter 2003; Provides Update on Status of Its Credit Arrangements.Business Editors MEDWAY, Mass.--(BUSINESS WIRE)--May 13, 2003 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 first quarter ended March 29, 2003. 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 quarter ended March 29, 2003 were $20,608,000, representing an increase of 9% compared to net sales for the first quarter of 2002 of $18,913,000. The 2003 sales increase was offset by unfavorable margins due to a change in product mix, manufacturing cost variances, inventory write-offs and increased warranty, selling and legal costs. This resulted in a net loss for the quarter ended March 29, 2003 of $1,787,000, or $0.20 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 net income for the first quarter of 2002 of $59,000, or $0.01 per diluted share. The Company also reported on the status of its credit arrangements. The Company has entered into a forbearance Refraining from doing something that one has a legal right to do. Giving of further time for repayment of an obligation or agreement; not to enforce claim at its due date. A delay in enforcing a legal right. agreement with its lenders pursuant to which the lenders have agreed not to exercise their rights with respect to certain financial covenant defaults under its Credit Agreement during a forbearance period that runs through June 30, 2003, subject to extension to August 30, 2003 if certain conditions are met. UM Holdings Ltd., a principal stockholder of the Company, has continued to provide financial support, with $3,950,000 in subordinated loans In the field of finance, a subordinated loan is a type of loan which ranks after other debts should a company fall into receivership or be closed. It is also known as subordinated debt, or as junior debt. outstanding as of May 9, 2003. The Company continues to pursue a refinancing Refinancing An extension and/or increase in amount of existing debt. of the Credit Agreement prior to its maturity date of December 31, 2003. In light of the uncertainties related to the Company's credit arrangements and cash needs, the Company has directed its investment banker Investment Banker A person representing a financial institution that is in the business of raising capital for corporations and municipalities. Notes: An investment banker may not accept deposits or make commercial loans. , Legg Mason Founded in 1899, Legg Mason, Inc. (NYSE: LM) is a leading Global Asset Management Firm that serves the institutional, mutual fund and wealth management markets. The firm is headquartered in Baltimore, Maryland, and is located on Lombard and Charles Streets in the Legg Mason , to investigate all alternatives available to the Company to retire its bank debt, including a sale of the Company. 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 have achieved market acceptance of our new products, especially the Arc Trainer, and have shown the ability to produce three consecutive quarters of increased sales. The historic debt structure of the Company continues to present challenges for us. We remain optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op in the availability of one or more alternatives which will result in the retirement of our existing bank debt." Cybex International, Inc. is a leading manufacturer of premium exercise equipment for commercial and consumer use. Cybex and the Cybex Institute, a training and research facility, are dedicated to improving human performance based on an understanding of the diverse goals and needs of individuals of varying physical capabilities. Cybex designs and engineers each of its products and programs to reflect the natural movement of the human body, allowing for variation in training and assisting each unique user - from the professional athlete to the rehabilitation rehabilitation: see physical therapy. patient - to improve their daily human performance. For more information on Cybex and its product line, please visit the Company's web site at www.eCybex.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 ability of the Company to comply with the terms of its credit facility and to refinance Refinance 1. When a business or person revises their payment schedule for repaying debt. 2. Replacing an older loan with a new loan offering better terms. Notes: When a business refinances they typically extend the maturity date. such credit facility, and uncertainties relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the implementation of the restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). plan. 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. , 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 22, 2003.
(Financial Tables to Follow)
CYBEX INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(unaudited)
Three Months Ended
-------------------------------
March 29, March 30,
2003 2002
-------------- --------------
Net sales $ 20,608 $ 18,913
Cost of sales 13,908 11,670
-------------- --------------
Gross profit 6,700 7,243
As a percentage of sales 32.5% 38.3%
Selling, general and
administrative expenses 7,527 6,532
-------------- --------------
Operating income (loss) (827) 711
Interest expense, net 1,017 610
-------------- --------------
Income (loss) before
income taxes (1,844) 101
Income tax provision (benefit) (57) 42
-------------- --------------
Net income (loss) $ (1,787) $ 59
============== ==============
Basic and diluted net income (loss)
per share $ (.20) $ .01
============== ==============
Shares used in computing
net income (loss)
per share 8,831 8,884
============== ==============
CYBEX INTERNATIONAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(unaudited)
March 29, December 31,
2003 2002
------------- -------------
ASSETS
Current assets:
Cash and cash equivalents $ 469 $ 216
Accounts receivable, net 12,386 13,628
Inventories 7,450 8,489
Prepaid expenses and other 1,856 1,773
------------- -------------
Total current assets 22,161 24,106
Property and equipment, net 16,146 16,553
Goodwill, net 11,247 11,247
Other assets 1,132 1,455
------------- -------------
$ 50,686 $ 53,361
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current maturities of long-term debt $ 23,785 $ 26,410
Related party loan 3,400 -
Accounts payable 9,128 9,488
Accrued expenses 9,312 9,647
------------- -------------
Total current liabilities 45,625 45,545
Long-term debt 1,600 1,600
Related party loan - 1,000
Other liabilities 2,818 2,811
------------- -------------
Total liabilities 50,043 50,956
------------- -------------
Stockholders' equity 643 2,405
------------- -------------
$ 50,686 $ 53,361
============= =============
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion