EX-99.1 2 dex991.htm PRESS RELEASE Press Release

Exhibit 99.1

LOGO

 

COMPANY    Arthur W. Hicks, Jr.
CONTACT:   

President and COO

(508) 533-4300

FOR IMMEDIATE RELEASE

CYBEX ANNOUNCES FIRST QUARTER RESULTS

MEDWAY, MA, April 23, 2008 — Cybex International, Inc. (NASDAQ: CYBI), a leading manufacturer of premium exercise equipment for the commercial and consumer markets, today reported results for its first quarter ended March 29, 2008. Net sales for the first quarter of 2008 increased by 15% to $39.8 million compared to $34.7 million for the corresponding 2007 period. Net income for the quarter ended March 29, 2008 was $1.3 million, or $0.07 per diluted share, compared to net income for the first quarter of 2007 of $1.1 million or $0.06 per diluted share.

John Aglialoro, CYBEX Chairman and CEO stated, “The Company is pleased with our first quarter 15% growth in sales and 26% increase in operating income. The gross margins for the quarter improved from Q4 2007 and we will continue our initiatives designed to produce stronger margins. Current US and world economic conditions likely will make our corporate goal of double digit growth in sales and earnings more challenging in the short-term. We will closely monitor sales activity and will respond quickly on the cost side if economic conditions produce a slowing of our rate of growth over the next several quarters. For the longer-term, we remain confident that our pipeline of new products and our strategy of developing new markets will continue to be important drivers in promoting strong sales and earnings growth.”

About CYBEX

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, the resolution of litigation involving the Company, 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 for the year ended December 31, 2007, its Reports on Form 10-Q, its Current Reports on Form 8-K, and its proxy statement dated April 4, 2008.

- FINANCIAL TABLES TO FOLLOW -


CYBEX INTERNATIONAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(unaudited)

 

     Three Months Ended  
     March 29,
2008
    March 31,
2007
 

Net sales

   $ 39,780     $ 34,676  

Cost of sales

     25,608       21,782  
                

Gross profit

     14,172       12,894  

As a percentage of sales

     35.6 %     37.2 %

Selling, general and administrative expenses

     11,525       10,796  
                

Operating income

     2,647       2,098  

Interest expense, net

     347       210  
                

Income before income taxes

     2,300       1,888  

Income taxes

     982       784  
                

Net income

   $ 1,318     $ 1,104  
                

Basic net income per share

   $ 0.08     $ 0.06  
                

Diluted net income per share

   $ 0.07     $ 0.06  
                

Shares used in computing basic net income per share

     17,367       17,224  
                

Shares used in computing diluted net income per share

     17,914       17,838  
                

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CYBEX INTERNATIONAL, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

(unaudited)

 

     March 29,
2008
   December 31,
2007

ASSETS

     

Current assets:

     

Cash

   $ 1,080    $ 609

Accounts receivable, net

     20,324      21,015

Inventories

     14,178      13,803

Prepaid expenses and other

     1,692      1,970

Deferred income taxes

     4,325      4,325
             

Total current assets

     41,599      41,722

Property and equipment, net

     33,546      34,089

Goodwill

     11,247      11,247

Deferred income taxes

     10,112      10,718

Other assets

     338      353
             
   $ 96,842    $ 98,129
             

LIABILITIES AND STOCKHOLDERS’ EQUITY

     

Current liabilities:

     

Current maturities of long-term debt

   $ 1,634    $ 2,628

Accounts payable

     7,047      7,021

Accrued expenses

     11,932      13,887
             

Total current liabilities

     20,613      23,536

Long-term debt

     16,133      16,322

Other liabilities

     3,946      3,229
             

Total liabilities

     40,692      43,087

Stockholders’ equity

     56,150      55,042
             
   $ 96,842    $ 98,129
             

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