Cybex International Inc. (CYBI, Financial) filed Quarterly Report for the period ended 2011-09-24.
Cybex International Inc. has a market cap of $13.01 million; its shares were traded at around $0.76 with a P/E ratio of 3.62 and P/S ratio of 0.11.
Gross margin for the nine months ended September 24, 2011 decreased by.5% to 35.0%, from 35.5% for the same period in 2010. The decrease was caused primarily by higher manufacturing costs (2.5%) due to higher steel prices and higher component costs of new treadmills, higher warranty costs (.4%) and higher freight (.2%) offset in part by improved overhead absorption (2.6%) from higher production volume.
Selling, general and administrative expenses decreased $101,000, or 1%, to $10,404,000 in the third quarter of 2011 compared to $10,505,000 in the third quarter of 2010. For the nine months ended September 24, 2011, selling, general and administrative expenses increased by $524,000, or 2%, to $30,818,000 compared to $30,294,000 for the comparable period in 2010. The increase for the nine month period was predominantly due to higher international expenses primarily related to additional
A valuation allowance for deferred tax assets is recorded to the extent it cannot be determined that the realization of these assets is more likely than not. Due to the uncertainty created by the unfavorable Barnhard product liability jury verdict (see Note 12 of the Notes to the Consolidated Financial Statements included herein), we determined that a valuation allowance against the entire amount of our deferred tax assets as of December 31, 2010 was necessary. Our deferred tax assets are fully reserved as of September 24, 2011, therefore income tax expense recorded is the amount of state and federal alternative minimum tax that is currently payable. We recorded an income tax expense of $22,000 and an income tax benefit of ($149,000), for the three and nine months ended September 24, 2011 and an income tax benefit of ($278,000) and ($689,000) for the three and nine months ended September 25, 2010, respectively. The effective tax benefit rate was (24.7%) and (38.0%) for the nine months ended September 24, 2011 and September 25, 2010, respectively. During the first quarter of 2011, we received a refund of federal alternative minimum taxes paid in prior years of $257,000, which was recorded as a benefit in that period since it was fully reserved as of December 31, 2010. This was offset by estimated state and federal alternative minimum taxes currently payable of $108,000, based on anticipated taxable income during the nine months ended September 24, 2011. Charges related to the Barnhard matter are not currently deductible since they have not been paid. As a result, we recorded income tax expense for the three months ended September 24, 2011 even though we incurred a loss for that period. Actual cash outlays for taxes continue to be reduced by the available operating loss carryforwards and credits.
Cash used in financing activities was $1,140,000 for the nine months ended September 24, 2011, consisting of principal payments on the Citizens equipment facility and real estate loan. Cash used in financing activities was $1,417,000 for the nine months ended September 25, 2010, consisting of $5,863,000 in repayment of the Wells Fargo Bank, NA (Wells Fargo) term loans and $553,000 of repayment of the Citizens real estate loan, offset by $4,999,000 advanced under the Citizens equipment lease facility.
Read the The complete Report
Cybex International Inc. has a market cap of $13.01 million; its shares were traded at around $0.76 with a P/E ratio of 3.62 and P/S ratio of 0.11.
Highlight of Business Operations:
Our net sales increased $4,243,000 or 15%, to $33,478,000 for the third quarter of 2011 versus $29,235,000 for the third quarter of 2010. For the nine months ended September 24, 2011, net sales increased $14,031,000 or 17%, to $97,054,000 from $83,023,000 compared to the same period in 2010. For the third quarter of 2011, sales of cardiovascular products increased $1,773,000 or 11% to $17,664,000, sales of strength products increased $2,071,000 or 20% to $12,260,000 and freight, parts and other sales increased $399,000 or 13% to $3,554,000 compared to the same period in 2010. For the nine months ended September 24, 2011, sales of cardiovascular products increased $6,657,000 or 15%, to $52,588,000, sales of strength products increased $5,537,000, or 20%, to $33,913,000 and freight, parts and other sales increased $1,837,000 or 21%, to $10,553,000 compared to the same period in 2010. Both U.S. and international markets were strong, led by sales of our new treadmill models, the 770T and 625T, which have been favorably received by the marketplace.Gross margin for the nine months ended September 24, 2011 decreased by.5% to 35.0%, from 35.5% for the same period in 2010. The decrease was caused primarily by higher manufacturing costs (2.5%) due to higher steel prices and higher component costs of new treadmills, higher warranty costs (.4%) and higher freight (.2%) offset in part by improved overhead absorption (2.6%) from higher production volume.
Selling, general and administrative expenses decreased $101,000, or 1%, to $10,404,000 in the third quarter of 2011 compared to $10,505,000 in the third quarter of 2010. For the nine months ended September 24, 2011, selling, general and administrative expenses increased by $524,000, or 2%, to $30,818,000 compared to $30,294,000 for the comparable period in 2010. The increase for the nine month period was predominantly due to higher international expenses primarily related to additional
A valuation allowance for deferred tax assets is recorded to the extent it cannot be determined that the realization of these assets is more likely than not. Due to the uncertainty created by the unfavorable Barnhard product liability jury verdict (see Note 12 of the Notes to the Consolidated Financial Statements included herein), we determined that a valuation allowance against the entire amount of our deferred tax assets as of December 31, 2010 was necessary. Our deferred tax assets are fully reserved as of September 24, 2011, therefore income tax expense recorded is the amount of state and federal alternative minimum tax that is currently payable. We recorded an income tax expense of $22,000 and an income tax benefit of ($149,000), for the three and nine months ended September 24, 2011 and an income tax benefit of ($278,000) and ($689,000) for the three and nine months ended September 25, 2010, respectively. The effective tax benefit rate was (24.7%) and (38.0%) for the nine months ended September 24, 2011 and September 25, 2010, respectively. During the first quarter of 2011, we received a refund of federal alternative minimum taxes paid in prior years of $257,000, which was recorded as a benefit in that period since it was fully reserved as of December 31, 2010. This was offset by estimated state and federal alternative minimum taxes currently payable of $108,000, based on anticipated taxable income during the nine months ended September 24, 2011. Charges related to the Barnhard matter are not currently deductible since they have not been paid. As a result, we recorded income tax expense for the three months ended September 24, 2011 even though we incurred a loss for that period. Actual cash outlays for taxes continue to be reduced by the available operating loss carryforwards and credits.
Cash used in financing activities was $1,140,000 for the nine months ended September 24, 2011, consisting of principal payments on the Citizens equipment facility and real estate loan. Cash used in financing activities was $1,417,000 for the nine months ended September 25, 2010, consisting of $5,863,000 in repayment of the Wells Fargo Bank, NA (Wells Fargo) term loans and $553,000 of repayment of the Citizens real estate loan, offset by $4,999,000 advanced under the Citizens equipment lease facility.
Read the The complete Report
