ICON Health & Fitness posted stronger top-line results for the companys fiscal first quarter ended September 3, but an income tax benefit in the year-ago period offset an otherwise positive development in the loss for the period. The loss before taxes actually decreased nearly 17% versus last year. The company saw an improvement in both gross margin and sales, R&D, and G&A, but nearly $6.7 million in interest expenses contributed to the loss for the period.
The company attributed the sales gain to increased customer demand for ICONs products. The gross margin gain was attributed to a change in product mix, distribution channel mix, and product release schedule. The expense decline reflects reduced advertising spend combined with reductions in legal fees.
| ICON Health & Fitness | |||
| Third Quarter Results | |||
| (in $ millions) | 2005 | 2004 | Change |
| Total Sales | $144.2 | $134.6 | +7.1% |
| Strength | $25.0 | $26.8 | -6.7% |
| Cardiovascular | $119.2 | $107.8 | +10.6% |
| Gross Margins | 27.2% | 25.1% | +210 bps |
| SG&A % | 16.6% | 16.2% | +40 bps |
| Net Loss | ($24.8) | ($20.8) | -28.5% |
| Inventory @qtr-end | $176.4 | $230.5 | -23.5% |
| Accts Rec @qtr-end | $116.1 | $139.1 | -16.5% |
