Cybex International, Inc. reported sales for the second quarter of 2012 were $30.8 million, compared to
$32.6 million for the corresponding 2011 period. The fitness equipment company reported a
net loss for the second quarter of 2012 of $1.2 million, or 7 cents per
share, compared to a net loss of $0.6 million, or 3 cents, for the corresponding 2011 period.
For the six months ended June 30, 2012, net sales were $68.1 million, compared to $63.6 million for 2011. The loss for the six months ended June 30, 2012 was $0.7 million, or $0.04 per diluted share, compared to a net loss of $0.2 million, or $0.01 per diluted share, for 2011.
The above results include litigation charges of $1.3 million and $1.6 million for the quarter and six months ended June 25, 2011, respectively, and litigation charges (reduction) of ($30,000) and $63,000 for the quarter and six months ended June 30, 2012, respectively, related to the Barnhard product liability judgment. As previously reported, this litigation was settled during the first quarter of 2012.
Cybex Chairman and CEO John Aglialoro stated, “As indicated in our Q1 earnings release, sales were sluggish through much of Q2 which we believe reflects uncertainty in the general economy. While it is difficult in the current environment to predict the short-term impact of economic conditions, we remain optimistic about sales prospects over the longer-term.”
Cybex President and COO Art Hicks stated, “We are scheduled to introduce the 525 series of cardio products in Q4. This line is targeted to better reach light commercial market segments which feature lower price points, valuing durability and ease of use. Profit margins continued to be negatively impacted in Q2 by several factors, including product mix and the initial manufacturing costs of new products. The Cybex team is working diligently to improve profit margins although significant progress is not anticipated until Q4 when among other things we expect to see cost improvements in products introduced earlier in the year.”
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CYBEX INTERNATIONAL, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (unaudited) |
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Three Months Ended |
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Six Months Ended | ||||||||||||||
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June 30, |
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June 25, |
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June 30, |
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June 25, | ||||||||
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2012 |
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2011 |
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2012 |
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2011 | ||||||||
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Net sales |
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$ |
30,800 |
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$ |
32,564 |
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$ |
68,059 |
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$ |
63,575 |
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Cost of sales |
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21,736 |
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21,560 |
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46,744 |
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41,325 |
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Gross profit |
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9,064 |
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11,004 |
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21,315 |
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22,250 |
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As a percentage of sales |
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29.4 |
% |
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33.8 |
% |
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31.3 |
% |
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35.0 |
% |
Selling, general and administrative expenses |
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9,930 |
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9,952 |
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21,349 |
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20,413 |
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Litigation charge (reduction) |
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(30 |
) |
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1,288 |
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63 |
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1,643 |
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Operating income (loss) |
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(836 |
) |
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(236 |
) |
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(97 |
) |
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194 |
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Interest expense, net |
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358 |
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265 |
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615 |
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541 |
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Loss before income taxes |
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(1,194 |
) |
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(501 |
) |
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(712 |
) |
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(347 |
) |
Income tax expense (benefit) |
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13 |
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54 |
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25 |
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(171 |
) |
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Net loss |
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$ |
(1,207 |
) |
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$ |
(555 |
) |
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$ |
(737 |
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$ |
(176 |
) |
Basic and diluted net loss per share |
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$ |
(0.07 |
) |
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$ |
(0.03 |
) |
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$ |
(0.04 |
) |
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$ |
(0.01 |
) |
Shares used in computing basic and diluted net loss per share |
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17,128 |
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17,120 |
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17,124 |
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17,120 |
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