Cybex International Reports Financial Results for Q2 2003; EPS of $.02 vs Loss; Sales up 17% vs Q2 2002.Business Editors MEDWAY, Mass.--(BUSINESS WIRE)--July 24, 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 second quarter ended June 28, 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 June 28, 2003 were $21,114,000 versus $18,005,000 for the comparable 2002 period. The net profit for the quarter ended June 28, 2003 was $183,000, or $0.02 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 $22,243,000, or $2.53 per share, for the second quarter of 2002. Net sales for the six months ended June 28, 2003 were $41,722,000, compared to $36,918,000 for the comparable 2002 period. The net loss for the six months ended June 28, 2003 was $1,604,000, or $0.18 per share, compared to a net loss of $22,184,000, or $2.52 per share, for the same prior year period. The results for the second quarter and six months ended June 29, 2002 included 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. 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. In the future, such related deferred tax valuation reserve will continue to be re-evaluated and a benefit will be recorded upon realization of the deferred tax assets or the reversal of the valuation reserve. 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. , commented, "This quarter represents the fourth consecutive quarter of revenue growth. The increase in revenue is a result of the Company's focus on new and differentiated products. Our new Eagle strength line and treadmill offerings have been marketed since mid-2002 and, as a result, selectorized strength equipment and treadmill sales have increased from 2002 levels. In addition, the ArcTrainer continues to outpace out·pace tr.v. out·paced, out·pac·ing, out·pac·es To surpass or outdo (another), as in speed, growth, or performance. outpace Verb [-pacing, our expectations and we anticipate increasing sales in this line to existing customers as well as to first time purchasers. We expect to introduce a totally new line of bikes in the first half of 2004. Besides our traditional fitness market, Cybex will proceed with plans to concentrate on the needs of particular market segments which the Company believes we can best serve, including the physical therapy/wellness, military, school/university as well as other vertical market customers who have space constraints CONSTRAINTS - A language for solving constraints using value inference. ["CONSTRAINTS: A Language for Expressing Almost-Hierarchical Descriptions", G.J. Sussman et al, Artif Intell 14(1):1-39 (Aug 1980)]. such as hotels and corporate fitness centers. By dedicating sales and product development efforts to these market segments we hope to spark additional growth initiatives." As previously announced, Cybex refinanced in full its prior credit facility on July 16, 2003. The new credit arrangements include a $19,000,000 working capital and term loan facility from CIT n. 1. A citizen; an inhabitant of a city; a pert townsman; - used contemptuously. Which past endurance sting the tender cit. - Emerson. Group/Business Credit, Inc. and an $11,000,000 mortgage loan from Hilco Capital LP. As part of the refinancing Refinancing An extension and/or increase in amount of existing debt. , Cybex' principal shareholder, UM Holdings Ltd, exchanged $4,900,000 of subordinated notes for a new series of Preferred Stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. , and provided additional credit support. 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 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 facilities credit facilities npl → facilidades fpl de crédito credit facilities npl → facilités fpl de paiement credit facilities , 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 22, 2003.
CYBEX INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(unaudited)
Three Months Ended Six Months Ended
June 28, June 29, June 28, June 29,
2003 2002 2003 2002
-------- --------- -------- ---------
Net sales $21,114 $18,005 $41,722 $36,918
Cost of sales 13,897 11,755 27,805 23,425
-------- --------- -------- ---------
Gross profit 7,217 6,250 13,917 13,493
As a percentage of sales 34.2% 34.7% 33.4% 36.5%
Selling, general and
administrative expenses 6,387 6,981 13,914 13,513
-------- --------- -------- ---------
Operating income (loss) 830 (731) 3 (20)
Interest expense, net 647 868 1,664 1,478
-------- --------- -------- ---------
Income (loss) before
income taxes 183 (1,599) (1,661) (1,498)
Income tax provision (benefit) - 20,644 (57) 20,686
-------- --------- -------- ---------
Net income (loss) $ 183 $(22,243) $(1,604) $(22,184)
======== ========= ======== =========
Basic and diluted net income
(loss) per share $ .02 $ (2.53) $ (.18) $ (2.52)
======== ========= ======== =========
Shares used in computing diluted
net income (loss) per share 8,859 8,807 8,831 8,807
======== ========= ======== =========
Shares used in computing basic
net income (loss) per share 8,831 8,807 8,831 8,807
======== ========= ======== =========
CYBEX INTERNATIONAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
ProForma(a)
June 28 June 28, December
2003 2003 31,
(unaudited) (unaudited) 2002
----------- ----------- --------
ASSETS
Current assets:
Cash and cash equivalents $ 442 $ 442 $ 216
Accounts receivable, net 13,153 13,153 13,628
Inventories 7,489 7,489 8,489
Prepaid expenses and other 2,174 2,174 1,773
----------- ----------- --------
Total current assets 23,258 23,258 24,106
Property and equipment, net 15,311 15,311 16,553
Goodwill, net 11,247 11,247 11,247
Other assets 968 968 1,455
----------- ----------- --------
$50,784 $50,784 $53,361
=========== =========== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current maturities of long-term debt $ 9,674 $ 9,674 $26,410
Accounts payable 7,848 7,848 9,488
Accrued expenses 8,725 8,725 9,647
----------- ----------- --------
Total current liabilities 26,247 26,247 45,545
Long-term debt 15,800 15,800 1,600
Related party loan 4,900 - 1,000
Other liabilities 2,781 2,781 2,811
----------- ----------- --------
Total liabilities 49,728 44,828 50,956
----------- ----------- --------
Stockholders' equity 1,056 5,956 2,405
----------- ----------- --------
$50,784 $50,784 $53,361
=========== =========== ========
(a) Giving Effect to Conversion of Related Party Loan to Preferred Stock on July 16, 2003. |
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