Cybex International Reports 4th Quarter 2002 Profit of $0.18 EPS vs 2001 Loss of $0.14 EPS.Business Editors MEDWAY, Mass.--(BUSINESS WIRE)--Feb. 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 fourth quarter and year ended December 31, 2002. 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 December 31, 2002 increased to $24,711,000 from $22,381,000 for the comparable 2001 period. The net income for the quarter ended December 31, 2002 was $1,548,000, or $.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 a net loss of $1,250,000, or $.14 per diluted share, for the fourth quarter of 2001. Net sales for the twelve months ended December 31, 2002 were $81,527,000, compared to $85,222,000 for the comparable 2001 period. The net loss for the twelve months ended December 31, 2002 was $21,024,000, or $2.39 per diluted share, compared to a net loss of $676,000, or $.08 per diluted share, for the same prior year period. The twelve months ended December 31, 2002 results include the previously announced non-cash second quarter charge to establish a valuation reserve for deferred taxes of $21,316,000 in accordance 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 109. If a valuation reserve were not required against deferred taxes, the net loss for the twelve months ended December 31, 2002 would have been $184,000, or $.02 per diluted share. In the future, such related deferred tax valuation reserve will continue to be re-evaluated and a benefit will be recorded when the deferred tax assets are considered to be realizable. The results for the quarter and the year ended December 31, 2001 include a 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. of $2,200,000 ($1,375,000 or $.16 per share after-tax) 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. John Aglialoro, Chairman and Chief Executive Officer, stated: "The revenue growth of the third and fourth quarters validates Cybex's strategy of focusing on innovative products as our competitive strength. We are looking forward to building on our fourth quarter success." The Company stated that they continue to be optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op that the current credit facility, which is scheduled to mature December 31, 2003, will be refinanced during 2003. However, if the facility is not refinanced or extended by the date of issuance of the Company's consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge for 2002, it may result in an explanatory ex·plan·a·to·ry adj. Serving or intended to explain: an explanatory paragraph. ex·plan paragraph in the independent auditors' report on such statements for the impact of the financing uncertainty. 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 exercise 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 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. , 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 9, 2002. (Financial Tables to Follow)
CYBEX INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Three Months Ended Twelve Months Ended
------------------- -------------------
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
2002 2001 2002 2001
--------- --------- --------- ---------
Net sales $24,711 $22,381 $81,527 $85,222
Cost of sales 15,533 14,073 52,000 54,722
--------- --------- --------- ---------
Gross profit 9,178 8,308 29,527 30,500
As a percentage of sales 37.1% 37.1% 36.2% 35.8%
Selling, general and
administrative expenses 6,569 6,998 26,435 25,234
Litigation charges - 2,200 - 2,200
--------- --------- --------- ---------
Operating income (loss) 2,609 (890) 3,092 3,066
Interest expense, net 998 827 3,353 3,793
Other income (expense) 40 - 40 -
--------- --------- --------- ---------
Income (loss) before
income taxes 1,571 (1,717) (301) (727)
Income tax provision (benefit) 23 (467) 20,723 (51)
--------- --------- --------- ---------
Net income (loss) $1,548 $(1,250) $(21,024) $(676)
========= ========= ========= =========
Basic and diluted net income
(loss) per share $0.18 $(0.14) $(2.39) $(0.08)
========= ========= ========= =========
Shares used in computing net
income (loss) per share 8,805 8,785 8,805 8,785
========= ========= ========= =========
CYBEX INTERNATIONAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
December 31, December 31,
2002 2001
------------ ------------
ASSETS
Cash and cash equivalents $216 $1,315
Accounts receivable, net 13,628 13,839
Inventories 8,489 7,907
Deferred income taxes, net - 5,269
Prepaid expenses and other 1,773 1,325
Property and equipment, net 16,553 19,145
Goodwill, net 11,247 11,247
Deferred income taxes, net - 15,895
Other assets 1,455 1,635
------------ ------------
$53,361 $77,577
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable $9,488 $7,146
Accrued expenses 9,647 13,376
Long-term debt (including current maturities) 29,010 30,490
Accrued warranty obligation 251 843
Other liabilities 2,560 2,678
------------ ------------
Total liabilities 50,956 54,533
------------ ------------
Stockholders' equity 2,405 23,044
------------ ------------
$53,361 $77,577
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