EX-99.1 2 dex991.htm PRESS RELEASE Press Release

Exhibit 99.1

 

LOGO

 

FROM:

   Porter, Le Vay & Rose, Inc.
     Michael J. Porter, President
     212-564-4700

COMPANY

   John Aglialoro

CONTACT:

   Chairman & CEO
     508-533-4300

 

FOR IMMEDIATE RELEASE

 

CYBEX REPORTS THIRD QUARTER FINANCIAL RESULTS

 

MEDWAY, MA, October 26, 2005—Cybex International, Inc. (AMEX: CYB), a leading exercise equipment manufacturer, today reported results for the third quarter and nine months ended September 24, 2005. Net sales for the third quarter 2005 were $26,690,000, compared to $25,038,000 for the corresponding 2004 period, an increase of 7%. For the nine months ended September 24, 2005, net sales were $78,646,000, compared to net sales of $73,531,000 for 2004, an increase of 7%. Excluding a third quarter 2005 litigation-related charge, the Company’s third quarter 2005 pro forma net income was $566,000 or $0.04 per fully diluted share, compared to net income of $378,000, or $0.03 per share, for the corresponding 2004 period, and pro forma net income for the nine months ended September 24, 2005 was $1,723,000, or $0.11 per fully diluted share, compared to net income of $1,342,000, or $0.12 per fully diluted share, for the corresponding 2004 period. On a GAAP basis, the Company reported a net loss for the third quarter 2005 of $3,535,000, or $(0.23) per share, and a net loss for the nine months ended September 24, 2005 of $2,378,000, or $(0.16) per share.

 

Actual GAAP results for the third quarter and nine months ended September 24, 2005 include an increase in the Company’s litigation reserve resulting in a pre-tax charge of $4,101,000. This increase in the litigation reserve reflects the previously announced jury verdict in the Colassi patent infringement case, as well as the reversal on appeal of a summary judgment in favor of the Company in another patent infringement case. The Company intends to vigorously pursue its appeal of the jury verdict and its defense of the second patent case.

 

John Aglialoro, Chairman and CEO stated, “We are pleased to have begun shipping three important new products: Trazer, a revolutionary virtual reality product that allows users to improve their movement skills; a light commercial / high end consumer treadmill that will help expand CYBEX’ dealer network and represents a market not presently served by CYBEX; and VR3, an exciting new line of strength equipment meeting a primary price point which will solidify our reputation in the market.”


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Cybex International, Inc. is a leading manufacturer of premium exercise equipment for commercial and consumer use. The CYBEX product line includes a full range of both strength training and cardio training machines sold worldwide under the CYBEX brand. Products and programs are designed and engineered to reflect the natural movement of the human body, assisting each unique user – from the professional athlete to the first-time exerciser – to improve daily human performance. For more information on CYBEX and its product line, please visit the Company’s website at www.cybexinternational.com.

 

This news release may contain forward-looking statements. 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 the ability of the Company to comply with the terms of its credit facilities. 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, its Reports on Form 10-Q, its Current Reports on Form 8-K, and its proxy statement dated April 6, 2005.

 

- Financial Tables to Follow -


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CYBEX INTERNATIONAL, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS—ACTUAL

(IN THOUSANDS, EXCEPT PER SHARE DATA)

(unaudited)

 

     Three Months Ended     Nine Months Ended  
     September 24,     September 25,     September 24,     September 25,  
     2005

    2004 (1)

    2005

    2004 (1)

 

Net sales

   $ 26,690     $ 25,038     $ 78,646     $ 73,531  

Cost of sales

     17,143       16,206       50,593       46,227  
    


 


 


 


Gross profit

     9,547       8,832       28,053       27,304  

As a percentage of net sales

     35.8 %     35.3 %     35.7 %     37.1 %

Selling, general and administrative expenses

     8,276       7,386       24,325       22,759  

Litigation charges

     4,101       —         4,101       —    
    


 


 


 


Operating income (loss)

     (2,830 )     1,446       (373 )     4,545  

Interest expense, net

     679       1,007       1,894       2,888  
    


 


 


 


Income (loss) before income taxes

     (3,509 )     439       (2,267 )     1,657  

Income taxes

     26       29       111       39  
    


 


 


 


Net income (loss)

     (3,535 )     410       (2,378 )     1,618  

Preferred stock dividends

     —         32       —         276  
    


 


 


 


Net income (loss) attributable to common stockholders

   $ (3,535 )   $ 378     $ (2,378 )   $ 1,342  
    


 


 


 


Basic net income (loss) per share

   $ (0.23 )   $ 0.03     $ (0.16 )   $ 0.13  
    


 


 


 


Diluted net income (loss) per share

   $ (0.23 )   $ 0.03     $ (0.16 )   $ 0.12  
    


 


 


 


Shares used in computing basic net income (loss) per share

     15,130       12,337       15,119       10,042  
    


 


 


 


Shares used in computing diluted net income (loss) per share

     15,130       14,566       15,119       11,132  
    


 


 


 


 

(1) The 2004 statement of operations has been reclassified to conform to the current year presentation.

 

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CYBEX INTERNATIONAL, INC.

PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS

(IN THOUSANDS, EXCEPT PER SHARE DATA)

(unaudited)

 

     Three Months Ended     Nine Months Ended  
     September 24,     September 25,     September 24,     September 25,  
     2005

    2004 (1)

    2005

    2004 (1)

 

Net sales

   $ 26,690     $ 25,038     $ 78,646     $ 73,531  

Cost of sales

     17,143       16,206       50,593       46,227  
    


 


 


 


Gross profit

     9,547       8,832       28,053       27,304  

As a percentage of net sales

     35.8 %     35.3 %     35.7 %     37.1 %

Selling, general and administrative expenses

     8,276       7,386       24,325       22,759  
    


 


 


 


Operating income

     1,271       1,446       3,728       4,545  

Interest expense, net

     679       1,007       1,894       2,888  
    


 


 


 


Income before income taxes

     592       439       1,834       1,657  

Income taxes

     26       29       111       39  
    


 


 


 


Net income

     566       410       1,723       1,618  

Preferred stock dividends

     —         32       —         276  
    


 


 


 


Net income attributable to common stockholders

   $ 566     $ 378     $ 1,723     $ 1,342  
    


 


 


 


Basic net income per share

   $ 0.04     $ 0.03     $ 0.11     $ 0.13  
    


 


 


 


Diluted net income per share

   $ 0.04     $ 0.03     $ 0.11     $ 0.12  
    


 


 


 


Shares used in computing basic net income per share

     15,130       12,337       15,119       10,042  
    


 


 


 


Shares used in computing diluted net income per share

     15,715       14,566       15,710       11,132  
    


 


 


 


 

(1) The 2004 statement of operations has been reclassified to conform to the current year presentation.

 

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CYBEX INTERNATIONAL, INC.

PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

 

    

Three Months Ended

September 24, 2005

  

Nine Months Ended

September 24, 2005

     Actual
Results


    Adjustments

    ProForma
Results


   Actual
Results


    Adjustments

    ProForma
Results


Net Sales

   $ 26,690     $ —       $ 26,690    $ 78,646     $ —       $ 78,646

Cost of sales

     17,143       —         17,143      50,593       —         50,593
    


 


 

  


 


 

Gross Profit

     9,547       —         9,547      28,053       —         28,053
    


 


 

  


 


 

Selling, general and administrative expenses (SG&A)

     8,276       —         8,276      24,325       —         24,325

Litigation charges

     4,101       (4,101 )     —        4,101       (4,101 )     —  
    


 


 

  


 


 

Total SG&A expenses

     12,377       (4,101 )     8,276      28,426       (4,101 )     24,325
    


 


 

  


 


 

Operating income (loss)

     (2,830 )     4,101       1,271      (373 )     4,101       3,728

Interest expense, net

     679       —         679      1,894       —         1,894
    


 


 

  


 


 

Income (loss) before Income taxes

     (3,509 )     4,101       592      (2,267 )     4,101       1,834

Income taxes

     26       —         26      111       —         111
    


 


 

  


 


 

Net income (loss)

   $ (3,535 )   $ 4,101     $ 566    $ (2,378 )   $ 4,101     $ 1,723
    


 


 

  


 


 

Basic net income (loss) per share

   $ (0.23 )   $ 0.27     $ 0.04    $ (0.16 )   $ 0.27     $ 0.11
    


 


 

  


 


 

Diluted net income (loss) per share

   $ (0.23 )   $ 0.27     $ 0.04    $ (0.16 )   $ 0.27     $ 0.11
    


 


 

  


 


 

Shares used in computing basic Net income (loss) per share

     15,130               15,130      15,119               15,119
    


         

  


         

Shares used in computing diluted net income (loss) per share

     15,130               15,715      15,119               15,710
    


         

  


         

 

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CYBEX INTERNATIONAL, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(IN THOUSANDS)

(unaudited)

 

    

September 24,

2005


  

December 31,

2004


ASSETS

             

Current assets:

             

Cash

   $ 495    $ 1,826

Accounts receivable, net

     14,067      15,891

Inventories

     9,637      8,014

Prepaid expenses and other

     2,327      1,684
    

  

Total current assets

     26,526      27,415

Property and equipment, net

     14,444      13,544

Goodwill

     11,247      11,247

Other assets

     1,606      2,280
    

  

     $ 53,823    $ 54,486
    

  

LIABILITIES AND STOCKHOLDERS’ EQUITY

             

Current liabilities:

             

Current maturities of long-term debt

   $ 2,684    $ 9,116

Current portion of capital leases

     500      408

Accounts payable

     4,786      5,377

Accrued expenses

     15,126      9,196
    

  

Total current liabilities

     23,096      24,097

Long-term debt

     10,791      11,489

Capital leases

     443      648

Other liabilities

     5,811      2,466
    

  

Total liabilities

     40,141      38,700

Stockholders’ equity

     13,682      15,786
    

  

     $ 53,823    $ 54,486
    

  

 

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