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 SECOND QUARTER RESULTS

MEDWAY, MA, July 22, 2008 — Cybex International, Inc. (NASDAQ: CYBI), a leading manufacturer of premium exercise equipment for the commercial and consumer markets, today reported results for its second quarter ended June 28, 2008.

Net sales for the second quarter of 2008 were $33.1 million compared to $34.7 million for the corresponding 2007 period. The Company reported net income for the second quarter of 2008 of $.1 million, or $0.01 per diluted share, compared to $1.1 million, or $0.06 per diluted share, reported for the corresponding 2007 period.

For the six months ended June 28, 2008, net sales increased to $72.9 million compared to $69.4 million for 2007. Net income for the six months ended June 28, 2008 was $1.4 million, or $0.08 per diluted share, compared to net income of $2.2 million, or $0.12 per diluted share, for 2007.

John Aglialoro, Chairman and CEO stated, “Through timely management of production and expenses, CYBEX achieved a modest profit in a difficult sales quarter. Although the U.S. and world economic conditions continue to be a concern, the fitness industry appears to be performing relatively well and the sales order rate at CYBEX began to improve at the end of Q2. We remain confident that our strategy of emphasizing new products and expanding markets, combined with a continued focus on cost savings and manufacturing efficiencies, will promote both increased long-term sales and earnings growth.”

The Company will hold a conference call today. If you cannot participate in the call but wish to listen to it, you may login at CYBEX’s website at www.cybexintl.com. Under the category Company, click on Press, scroll to bottom and select Q2 Earnings Release Conference Call.

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 lines, please visit the Company’s website at www.cybexintl.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.

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CYBEX INTERNATIONAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(unaudited)

 

     Three Months Ended     Six Months Ended  
     June 28,
2008
    June 30,
2007
    June 28,
2008
    June 30,
2007
 

Net sales

   $ 33,136     $ 34,740     $ 72,916     $ 69,416  

Cost of sales

     22,480       22,535       48,088       44,317  
                                

Gross profit

     10,656       12,205       24,828       25,099  

As a percentage of sales

     32.2 %     35.1 %     34.1 %     36.2 %

Selling, general and administrative expenses

     10,115       10,380       21,640       21,176  
                                

Operating income

     541       1,825       3,188       3,923  

Interest expense (income), net

     278       (48 )     625       162  
                                

Income before income taxes

     263       1,873       2,563       3,761  

Income taxes

     135       778       1,117       1,562  
                                

Net income

   $ 128     $ 1,095     $ 1,446     $ 2,199  
                                

Basic net income per share

   $ 0.01     $ 0.06     $ 0.08     $ 0.13  
                                

Diluted net income per share

   $ 0.01     $ 0.06     $ 0.08     $ 0.12  
                                

Shares used in computing basic net income per share

     17,388       17,309       17,377       17,288  
                                

Shares used in computing diluted net income per share

     17,719       17,911       17,713       17,902  
                                

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CYBEX INTERNATIONAL, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

(unaudited)

 

     June 28,
2008
   December 31,
2007

ASSETS

     

Current assets:

     

Cash and cash equivalents

   $ 1,654    $ 609

Accounts receivable, net

     16,315      21,015

Inventories

     13,459      13,803

Prepaid expenses and other

     3,906      1,970

Deferred tax asset

     4,325      4,325
             

Total current assets

     39,659      41,722

Property and equipment, net

     35,049      34,089

Goodwill

     11,247      11,247

Deferred tax asset

     9,659      10,718

Other assets

     327      353
             
   $ 95,941    $ 98,129
             

LIABILITIES AND STOCKHOLDERS’ EQUITY

     

Current liabilities:

     

Current maturities of long-term debt

   $ 1,520    $ 2,628

Accounts payable

     6,904      7,021

Accrued expenses

     11,800      13,887
             

Total current liabilities

     20,224      23,536

Long-term debt

     15,753      16,322

Other liabilities

     3,171      3,229
             

Total liabilities

     39,148      43,087

Stockholders’ equity

     56,793      55,042
             
   $ 95,941    $ 98,129
             

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