Cybex International, Inc. reported results net sales for the fourth quarter ended Dec. 31, 2010 were $39.9 million compared to $34.8 million for the corresponding 2009 period, a 15% increase.
For the year ended Dec. 31, 2010, net sales were $123.0 million compared to $120.5 million for 2009, a 2% increase. The loss for the year ended December 31, 2010 was $58.2 million, or $3.40 per diluted share, compared to a net loss of $2.4 million, or 14 cents per diluted share, for 2009.
CYBEX Chairman and CEO John Aglialoro stated, ““CYBEX sales, which stabilized in mid-2010, showed strong growth in Q4. This trend continued in the first quarter, with Q1 2011 sales exceeding Q1 2010 sales by over 10%. Our focus on improving gross margins continued the trend throughout 2010 of improved margin results compared to 2009. I have never been more excited by our new product pipeline; and several new products and product lines at the IHRSA trade show in March were favorably received. We have also entered research partnerships with several prestigious institutions which will reinforce the CYBEX exercise science legacy and generate the research results that will help CYBEX to continue to develop innovative products that provide better results. We will continue to vigorously defend ourselves with respect to the product liability verdict, which we believe was in error. This process may result in a long and uncertain path, but we have faith that our judicial system can produce a reasonable resolution. In the meantime we are determined to concentrate on our business and hope to build on the momentum established in 2010.”
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, | ||||||||||||||||||||
| 2010 | 2009 | 2010 | 2009 | ||||||||||||||||||||
| Net sales | $ | 39,938 | $ | 34,812 | $ | 122,961 | $ | 120,474 | |||||||||||||||
| Cost of sales | 24,555 | 23,005 | 78,114 | 84,466 | |||||||||||||||||||
| Gross profit | 15,383 | 11,807 | 44,847 | 36,008 | |||||||||||||||||||
| As a percentage of sales | 38.5 | % | 33.9 | % | 36.5 | % | 29.9 | % | |||||||||||||||
Selling, general and administrative expenses | 11,778 | 9,748 | 42,072 | 37,680 | |||||||||||||||||||
| Litigation charge | 45,991 | – | 45,991 | – | |||||||||||||||||||
| Operating income (loss) | (42,386 | ) | 2,059 | (43,216 | ) | (1,672 | ) | ||||||||||||||||
| Interest expense, net | 277 | 367 | 1,260 | 1,274 | |||||||||||||||||||
| Income (loss) before income taxes | (42,663 | ) | 1,692 | (44,476 | ) | (2,946 | ) | ||||||||||||||||
| Income tax (benefit) | 14,450 | 699 | 13,761 | (509 | ) | ||||||||||||||||||
| Net income (loss) | $ | (57,113 | ) | $ | 993 | $ | (58,237 | ) | $ | (2,437 | ) | ||||||||||||
| Basic net income (loss) per share | $ | (3.34 | ) | $ | 0.06 | $ | (3.40 | ) | $ | (0.14 | ) | ||||||||||||
| Diluted net income (loss) per share | $ | (3.34 | ) | $ | 0.06 | $ | (3.40 | ) | $ | (0.14 | ) | ||||||||||||
Shares used in computing basic net income (loss) per share | 17,120 | 17,101 | 17,120 | 17,175 | |||||||||||||||||||
Shares used in computing diluted net income (loss) per share | 17,120 | 17,133 | 17,120 | 17,175 | |||||||||||||||||||
