Cybex International, Inc. reported net sales for the fourth quarter of 2011 ended Dec. 31, 2011 were $43.1 million, up 8 percent from $39.9 million for the corresponding 2010 period. The company reported net income of $34.7 million, or $2.03 per diluted share, compared to a net loss of ($57.1) million or ($3.34) per diluted share, reported for the corresponding 2010 period.



The 2011 and 2010 results include a 2010 litigation charge pertaining to the jury verdict in the product liability suit, Barnhard v. Cybex International, Inc., and the 2011 adjustments to the charge relating to the settlement of the suit. Net income for the quarter excluding these charges and adjustments was $2.7 million or 16 cents per fully diluted share for 2011 and $1.5 million or 9 cents per fully diluted share for 2010.


For the year ended Dec. 31, 2011, net sales were $140.1 million compared to $123.0 million for 2010, a 14% increase. Net income for the year ended Dec. 31, 2011 was $34.3 million, or $2.00 per diluted share, compared to a net loss of ($58.2) million, or ($3.40) per diluted share, for 2010. The 2011 and 2010 results include the litigation charge, and adjustments related to the charge, which increase (decrease) the 2011 and 2010 full year results by $1.76 and ($3.43) per diluted share, respectively.

 

Net income excluding these charges and adjustments were $4.1 million or $0.24 per fully diluted share for 2011 and $0.4 million or $0.03 per fully diluted share for 2010.


Cybex also announced that it has increased the limits of its product liability insurance coverage to $25,000,000 for claims brought after Dec. 1, 2011.


“We are pleased to report strong sales growth in all market segments in Q4,” said John Aglialoro, Cybex Chairman and CEO. “Sales in North America increased 3% and sales outside North America increased 20% for the fourth quarter. Importantly, we accomplished these results during a time of global economic uncertainty while confronting an unfair and excessive jury verdict which is now behind us. Our growth is a testament to the health of the company and the value customers have for our innovative and superior products.”


Art Hicks, Cybex President and COO stated, “Operating income, excluding the impact of litigation charges, increased 40% in Q4 2011 compared to Q4 2010. We are excited to introduce our new Arc Trainer models and new entertainment displays at the International Health, Racquet & Sportsclub Association (IHRSA) trade show in March.”
















































































































































































































































































































































CYBEX INTERNATIONAL, INC.


CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)


(unaudited)

Three Months Ended Year Ended
December 31, December 31, December 31, December 31,
2011 2010 2011 2010
Net sales $ 43,075 $ 39,938 $ 140,129 $ 122,961
Cost of sales 27,168 24,555 90,221 78,114
Gross profit 15,907 15,383 49,908 44,847
As a percentage of sales 36.9 % 38.5 % 35.6 % 36.5 %

Selling, general and


administrative expenses

10,853 11,778 41,671 42,072
Litigation (reduction) charge (30,063 ) 45,991 (27,058 ) 45,991
Operating income (loss) 35,117 (42,386 ) 35,295 (43,216 )
Interest expense, net 223 277 1,004 1,260
Income (loss) before income taxes 34,894 (42,663 ) 34,291 (44,476 )
Income tax 185 14,450 36 13,761
Net income (loss) $ 34,709 $ (57,113 ) $ 34,255 $ (58,237 )

Basic and diluted net income (loss)


per share


$

2.03

$

(3.34

)

$

2.00

$

(3.40

)

Shares used in computing basic and


diluted net income (loss) per share

17,120 17,120 17,120 17,120