What a difference a year makes for fitness equipment manufacturer Cybex.
A year ago, the Medway, Mass.-based company reported a staggering fourth-quarter 2010 net loss of $57.1 million, as it was forced to set aside a large chunk of money toward an impending, unfavorable $66 million lawsuit ruling.
On Wednesday, after earlier this month reaching a settlement to reduce the ruling to $19.5 million, Cybex reported a booming profit of $34.7 million for the fourth quarter 2011, as it freed up the rest of the money.
Even without the surplus, Cybex reported positive results with higher revenue and organic profit for the fourth quarter 2011 compared to a year ago. Sales rose 8 percent to $43.1 million and organic profit (minus the freed settlement money) came in at $2.7 million, or 16 cents per diluted share.
For the full year 2011, Cybex revenue rose 14 percent to $140.1 million with an organic profit of $4.1 million, or 24 cents per share, versus a year ago.
"We are pleased to report strong sales growth in all market segments in Q4," Cybex Chairman and CEO John Aglialoro said in a statement with the earnings release. "Sales in North America increased 3 percent and sales outside North America increased 20 percent 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.”
Investors have cheered the recent good news for Cybex, sending its stock price up more than 150 percent after the settlement and up another 20 percent to $1.80 per share after its fourth quarter results on Wednesday.