Cybex International, Inc. Reports Fourth Quarter and Year-end Results for 2001.Business Editors and Health/Medical Writers MEDWAY
Medway is the name given to a conurbation and unitary authority in north Kent, England. , Mass.--(BUSINESS WIRE)--Feb. 20, 2002 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 fourth quarter and year ended December December: see month. 31, 2001. The Company reported fourth quarter 2001 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 of $243,000 or $.03 per share, and pro forma net income for the twelve months ended December 31, 2001 of $1,171,000, or $.13 per share. The Company's pro forma results exclude a fourth quarter pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta charge of $2,200,000 ($1,375,000 after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. ) related to 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. matters discussed below and goodwill amortization which will not recur in 2002 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 142 in the pre-tax amounts of $124,000 ($118,000 after-tax) in the fourth quarter and $495,000 ($472,000 after-tax) for 2001. 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 fourth quarter 2001 were $22,381,000, compared to $27,481,000 for the comparable 2000 period. For the year ended December 31, 2001, net sales were $85,222,000, compared to net sales of $125,293,000 for 2000. On an actual basis, the Company reported a net loss for the fourth quarter 2001 of $1,250,000, or $.14 per share, compared to a net loss of $19,094,000, or $2.19 per share, for the comparable 2000 period, and a net loss for the twelve months ended December 31, 2001 of $676,000, or $.08 per share, compared to a net loss of $20,577,000, or $2.36 per share, for 2000. As previously disclosed dis·close tr.v. dis·closed, dis·clos·ing, dis·clos·es 1. To expose to view, as by removing a cover; uncover. 2. To make known (something heretofore kept secret). , the 2000 results include asset impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. and restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. of $22,288,000 ($14,220,000 after-tax), or $1.63 per share, in the fourth quarter and $25,440,000 ($16,231,000 after-tax), or $1.86 per share, for the full year. John Aglialoro, Chairman and Chief Executive Officer, stated: "The Company made significant progress in 2001 in returning to solid operating basics and I expect profitability for the year ending December 31, 2002. As a full-line manufacturer of commercial and consumer products, Cybex is now in a position in 2002 to offer new product introductions in the four categories in which we do business: treadmills, bikes, climbers This list of climbers includes both mountaineers and rock climbers, since many (though not all) climbers engage in both types of activities. The list also includes boulderers and ice climbers. , and our core line of strength products." Cybex also reported that a jury verdict has been rendered in the previously disclosed litigation, Kirila, et al v. Cybex International, Inc., et al., with the jury finding in part in favor of upon the side of; favorable to; for the advantage of. See also: favor Cybex and in part in favor of the plaintiffs. This action in the Court of Common Pleas COURT OF COMMON PLEAS. The name of an English court which was established on the breaking up of the aula regis, for the determination of pleas merely civil. It was at first ambulatory, but was afterwards located. of Mercer County, Pennsylvania Mercer County is a county located in the U.S. state of Pennsylvania. As of 2000, the population was 120,293. Its county seat is Mercer6; Sharon is its largest city. Mercer County was part of the Sharon MSA as designated by the U.S. was based upon the Company's 1993 acquisition of a strength equipment company. The jury found in favor of Cybex with respect to the majority of the plaintiffs' claims. However, the jury also found that Cybex owes certain incentive compensation payments and rent. Cybex stated that it believes that the portion of the jury award related to the incentive compensation was in error, and it intends to appeal that portion of the decision. Cybex recognized a fourth quarter 2001 pre-tax charge of $2,200,000 with respect to litigation matters including the jury award and interest, costs, expenses and other contingencies Contingencies (ISSN 1048-9851) is the bimonthly magazine of the American Academy of Actuaries, providing a large and diverse readership with general interest and technical articles on a wide range of issues related to the actuarial profession. . No payments will be required with respect to the jury award unless the appeal process, which is expected to take between 18 to 24 months, is unsuccessful. Mr. Aglialoro commented: "While we are gratified grat·i·fy tr.v. grat·i·fied, grat·i·fy·ing, grat·i·fies 1. To please or satisfy: His achievement gratified his father. See Synonyms at please. 2. that the jury agreed with our position with respect to most of the plaintiffs' claims in this litigation, we remain convinced con·vince tr.v. con·vinced, con·vinc·ing, con·vinc·es 1. To bring by the use of argument or evidence to firm belief or a course of action. See Synonyms at persuade. 2. that Mr. Kirila has been fully paid for the sale of his business and that Cybex has acted in complete accord with the signed agreements. We believe we have strong grounds to appeal the unfavorable aspects of the decision, and will pursue this appeal vigorously vig·or·ous adj. 1. Strong, energetic, and active in mind or body; robust. See Synonyms at healthy. 2. Marked by or done with force and energy. See Synonyms at active. ." Cybex International, Inc. is a leading manufacturer of premium exercise equipment for consumer and commercial 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 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 Reports 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 25, 2001.
CYBEX INTERNATIONAL INC
CONDENSED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Three Months Twelve Months
Ended Ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
2001 2000 2001 2000
Net Sales $ 22,381 $ 27,481 $ 85,222 $ 125,293
Cost of sales 14,073 20,578 54,722 82,936
------------------- ---------------------
Gross Profit 8,308 6,903 30,500 42,357
As a percentage of
sales 37.1% 25.1% 35.8% 33.8%
Selling, general and
administrative
expenses 6,874 13,355 24,739 45,321
------------------- ---------------------
Operating income (loss)
before interest
expense 1,434 (6,452) 5,761 (2,964)
Interest expense, net 827 755 3,793 2,823
------------------- ---------------------
Income (loss) before
income taxes 607 (7,207) 1,968 (5,787)
Income tax provision
(benefit) 364 (2,543) 797 (2,263)
------------------- ---------------------
Net Income (loss) $ 243 $ (4,664) $ 1,171 $ (3,524)
=================== =====================
Basic and diluted net
income (loss) per
share $ 0.03 $ (0.53) $ 0.13 $ (0.40)
=================== =====================
Shares used in
computing net
income (loss)
per share 8,785 8,725 8,785 8,725
=================== =====================
CYBEX INTERNATIONAL, INC
PRO FORMA STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Three Months Ended December 31, 2001
ProForma Adjustments Actual
Results Results
Net Sales $ 22,381 $ -- $ 22,381
Cost of sales 14,073 -- 14,073
---------------------------------------------
Gross Profit 8,308 -- 8,308
---------------------------------------------
Selling, general and
administrative expenses 6,874 -- 6,874
Litigation charges -- 2,200 2,200
Goodwill Amortization
expense -- 124 124
---------------------------------------------
Total SG &A expenses 6,874 2,324 9,198
---------------------------------------------
Operating income (loss) 1,434 (2,324) (890)
Interest expense, net 827 -- 827
---------------------------------------------
Income (loss) before
income taxes 607 (2,324) (1,717)
Income tax provision
(benefit) 364 (831) (467)
---------------------------------------------
Net Income (loss) $ 243 $ (1,493) $ (1,250)
=============================================
Basic and diluted net
income (loss) per share $ 0.03 $ (0.17) $ (0.14)
=============================================
Shares used in computing
net income (loss) per
share 8,785 8,785 8,785
=============================================
CYBEX INTERNATIONAL, INC
PRO FORMA STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Year Ended December 31, 2001
ProForma Adjustments Actual
Results Results
Net Sales $ 85,222 $-- $ 85,222
Cost of sales 54,722 -- 54,722
------------------------------------------
Gross Profit 30,500 -- 30,500
------------------------------------------
Selling, general and
administrative expenses 24,739 -- 24,739
Litigation charges -- 2,200 2,200
Goodwill Amortization
expense -- 495 495
------------------------------------------
Total SG &A expenses 24,739 2,695 27,434
------------------------------------------
Operating income (loss) 5,761 (2,695) 3,066
Interest expense, net 3,793 -- 3,793
------------------------------------------
Income (loss) before
income taxes 1,968 (2,695) (727)
Income tax provision
(benefit) 797 (848) (51)
------------------------------------------
Net Income (loss) $ 1,171 $ (1,847) $ (676)
==========================================
Basic and diluted net income
(loss) per share $ 0.13 $ (0.21) $ (0.08)
==========================================
Shares used in computing
net income (loss) per
share 8,787 8,787 8,787
==========================================
CYBEX INTERNATIONAL, INC
PRO FORMA STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Three Months Ended December 31, 2000
ProForma Adjustments Actual
Results Results
Net Sales $ 27,481 $-- $ 27,481
Cost of sales 20,578 -- 20,578
---------------------------------------------
Gross Profit 6,903 -- 6,903
---------------------------------------------
Selling, general and
administrative expenses 13,355 -- 13,355
Asset impairment and
restructuring charges -- 22,288 22,288
Goodwill Amortization
expense -- 267 267
---------------------------------------------
Total SG &A expenses 13,355 22,555 35,910
---------------------------------------------
Operating income (loss) (6,452) (22,555) (29,007)
Interest expense, net 755 -- 755
---------------------------------------------
Income (loss) before
income taxes (7,207) (22,555) (29,762)
Income tax provision
(benefit) (2,543) (8,125) (10,668)
---------------------------------------------
Net Income (loss) $ (4,664) $ (14,430) $ (19,094)
=============================================
Basic and diluted net income
(loss) per share $ (0.53) $ (1.66) $ (2.19)
=============================================
Shares used in computing
net income (loss) per
share 8,725 8,725 8,725
=============================================
CYBEX INTERNATIONAL, INC
PRO FORMA STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Year Ended December 31, 2000
ProForma Adjustments Actual
Results Results
Net Sales $125,293 $-- $125,293
Cost of sales 82,936 -- 82,936
-----------------------------------------
Gross Profit 42,357 -- 42,357
-----------------------------------------
Selling, general and
administrative expenses 45,321 -- 45,321
Asset impairment and
restructuring charges -- 25,440 25,440
Goodwill Amortization expense -- 1,049 1,049
-----------------------------------------
Total SG &A expenses 45,321 26,489 71,810
-----------------------------------------
Operating income (loss) (2,964) (26,489) (29,453)
Interest expense, net 2,823 -- 2,823
-----------------------------------------
Income (loss) before
income taxes (5,787) (26,489) (32,276)
Income tax provision
(benefit) (2,263) (9,436) (11,699)
-----------------------------------------
Net Income (loss) $ (3,524) $ (17,053) $ (20,577)
=========================================
Basic and diluted net income
(loss) per share $ (0.40) $ (1.96) $ (2.36)
=========================================
Shares used in computing
net income (loss) per share 8,725 8,725 8,725
=========================================
CYBEX INTERNATIONAL INC
CONDENSED STATEMENTS OF OPERATIONS - ACTUAL
(In thousands, except per share data)
Three Months Twelve Months
Ended Ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
2001 2000 2001 2000
Net Sales $ 22,381 $ 27,481 $ 85,222 $ 125,293
Cost of sales 14,073 20,578 54,722 82,936
--------------------- ---------------------
Gross Profit 8,308 6,903 30,500 42,357
As a percentage of sales 37.1% 25.1% 35.8% 33.8%
Selling, general and
administrative expenses 6,998 13,622 25,234 46,370
Litigation charges 2,200 -- 2,200 --
Asset impairment and
restructuring charges -- 22,288 -- 25,440
--------------------- ---------------------
Operating income (loss)
before interest expense (890) (29,007) 3,066 (29,453)
Interest expense, net 827 755 3,793 2,823
--------------------- ---------------------
Income (loss) before
income taxes (1,717) (29,762) (727) (32,276)
Income tax provision
(benefit) (467) (10,668) (51) (11,699)
--------------------- ---------------------
Net Income (loss) $ (1,250) $ (19,094) $ (676) $ (20,577)
===================== =====================
Basic and diluted net
income (loss) per share $ (0.14) $ (2.19) $ (0.08) $ (2.36)
===================== =====================
Shares used in computing
net income (loss)
per share 8,785 8,725 8,785 8,725
===================== =====================
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