Cybex International saw net sales for the second quarter ended June 26, 2004 increase 13.7% to $24.0 million from $21.1 million in the year-ago period. Net income was up almost four-fold, delivering $833,000, or 8 cents per diluted share, in profit in the quarter compared to net income of $183,000, or 2 cents per diluted share, for the second quarter of 2003. Gross margin improved 360 basis points to 37.8% of sales while SG&A remained roughly flat a percentage of sales.
The company sees even brighter days ahead and hopes a new financing deal will help them “focus on enhancing growth prospects.” The new facility with GMAC Commercial Finance announced last week provides a five-year term loan of $13 million at a floating interest rate, which is currently pegged at about 6.5%, that enables them to retire its Hilco $11 million credit facility, which had 15.5% interest rate, and a separate $1.6 million term loan from CIT Group/Business Credit.
CYB shares led all industry gainers for the week, up 14.3% to close at $4.00 on Friday.
