Cybex International, Inc. reported that its losses widened in its second quarter ended June 25, to $555,000, or 3 cents a share, from $356,000, or 2 cents, a year ago. Sales rose 17.7 percent to $32.6 million compared to $27.7 million for the corresponding 2010 period.
For the six months, net sales were $63.6 million compared to $53.8 million for 2010. The loss for the six months ended June 25, 2011 was $0.2 million, or 1 penny per diluted share, compared to a net loss of $1.1 million, or 6 cents per diluted share, for 2010.
The 2011 results include additional litigation charges of $1.3 million and $1.6 million for the quarter and six months ended June 25, 2011, respectively, related to the Barnhard product liability judgment, primarily related to interest that is accruing at the annual rate of 9% on the judgment. As previously reported, the Company has filed an appeal of this judgment and enforcement of the judgment has been stayed during the continuance of the appellate process.
Cybex Chairman and CEO John Aglialoro stated, “Sales grew by 18% in the quarter, continuing the trend of double-digit sales growth for the third consecutive quarter. Both U.S. and international markets were strong, led by sales of our new treadmill models, the 770T and 625T, which have been favorably received by the marketplace.”
CYBEX INTERNATIONAL, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (unaudited) |
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| Three Months Ended | Six Months Ended | |||||||||||||||||||
| June 25, | June 26, | June 25, | June 26, | |||||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||||||
| Net sales | $ | 32,564 | $ | 27,672 | $ | 63,575 | $ | 53,788 | ||||||||||||
| Cost of sales | 21,560 | 18,167 | 41,325 | 34,816 | ||||||||||||||||
| Gross profit | 11,004 | 9,505 | 22,250 | 18,972 | ||||||||||||||||
| As a percentage of sales | 33.8 | % | 34.4 | % | 35.0 | % | 35.3 | % | ||||||||||||
| Selling, general and administrative expenses | 9,952 | 9,530 | 20,413 | 19,789 | ||||||||||||||||
| Litigation charge | 1,288 | � | 1,643 | � | ||||||||||||||||
| Operating income (loss) | (236 | ) | (25 | ) | 194 | (817 | ) | |||||||||||||
| Interest expense, net | 265 | 381 | 541 | 703 | ||||||||||||||||
| Loss before income taxes | (501 | ) | (406 | ) | (347 | ) | (1,520 | ) | ||||||||||||
| Income tax expense (benefit) | 54 | (50 | ) | (171 | ) | (411 | ) | |||||||||||||
| Net loss | $ | (555 | ) | $ | (356 | ) | $ | (176 | ) | $ | (1,109 | ) | ||||||||
| Basic and diluted net loss per share | $ | (0.03 | ) | $ | (0.02 | ) | $ | (0.01 | ) | $ | (0.06 | ) | ||||||||
| Shares used in computing basic and diluted net loss per share | 17,120 | 17,120 | 17,120 | 17,120 | ||||||||||||||||
