Only two weeks before its much bally-hoed splash at the IHRSA show (where we hear its booth may take up a city block. Or two.), Cybex has announced fourth quarter sales for 2002 were up by $2.33 million -- from $22,381,000 in the prior year to $24,711,000 for the year ended Dec. 31, 2002. Sales for all of 2002, however, dropped to $81,527,000 from 2001's $85,222,000.
Gross profit, as a percentage of sales, stayed steady when comparing fourth quarters at 37.1 percent, but for the 12 months just ended it had gone up 0.4 percent to 36.2 percent from 2001's 35.8 percent. Net income for the quarter was $1,548,000, or $.18 per diluted share, compared to a net loss of $1,250,000, or $.14 per diluted share, for the fourth quarter of 2001. That compares to a net loss for the 12 months ended in December of $21,024,000, or $2.39 per diluted share, compared to a net loss of $676,000, or $.08 per diluted share, for the same prior year period. The 12 months ended Dec. 31, 2002, include the previously announced non-cash second quarter charge to establish a valuation reserve for deferred taxes of $21,316,000 in accordance with SFAS 109. If a valuation reserve were not required against deferred taxes, the net loss for the 12 months ended Dec. 31, 2002, would have been $184,000, or $.02 per diluted share.
Income before income taxes for the just-ended fourth quarter was $1,571,000 compared to a loss of $1,717,000 in the comparable quarter a year earlier.
"The revenue growth of the third and fourth quarters validates Cybex's strategy of focusing on innovative products as our competitive strength. We are looking forward to building on our fourth quarter success," John Aglialoro, chairman and CEO, said in a statement.
SNEWS View: "Turnaround" is still the topic of the month. Although fourth quarter sales for the fourth quarter of 2002 were up (not atypical in the fitness business, of course), the total year was still down. Profit also stayed steady when inching upward would be a really nice indication of turnaround. On the other hand, accounts payable is up for the year compared to 2001, while accounts receivable are down a bit. Hmmm.... Sure, we know any turnaround is a slow process, but we hope additional positive signs will come soon.