Brunswick’s Q2 revenue jumps 41 percent
Brunswick Corp. (NYSE: BC), parent of Life Fitness and Hammer Strength, said it swung to a profit in the second quarter -- the company's first reported profit in more than two years -- buoyed by better-than-expected sales from its core boat market as well as its fitness segment.
For the quarter ended July 3, Brunswick earned $13.7 million, or $0.15 per share, compared with a loss of $163.7 million, or $1.85 per share, in the year-ago quarter.
Revenue climbed 41 percent to $1.01 billion, up from $718.3 million last year.
Operating earnings were $55.7 million, a $201.1 million improvement from the prior year.
Fitness segment sales rose 17 percent to $123.2 million compared to $105.0 million in the year-ago quarter. International sales, which represented 54 percent of total segment sales in the quarter, increased by 39 percent.
Also, the fitness segment reported operating earnings of $8.7 million, including restructuring charges of $0.1 million, versus $0.2 million in the second quarter of 2009, which included restructuring charges of $0.2 million.
The company said the fitness segment’s global commercial and consumer equipment sales increased during the quarter. Higher operating earnings in the quarter, when compared with 2009, reflect higher sales, a more favorable product sales mix, lower material and freight costs, it added.
Also, Brunswick sold its Triton Boats unit to Fishing Holdings LLC, an affiliate of Platinum Equity, for an undisclosed sum. The company expects to log $18 million to $20 million in restructuring charges related to the sale, including $15 million in the second quarter.
Town Sports' sales down 5.2 percent in Q2
Health club operator Town Sports International Holdings (Nasdaq: CLUB) said its second-quarter revenue dropped 5.2 percent drop and it swung to a loss as a result of decreases in both member counts and attrition.
For the second quarter ended June 30, total revenue was $117 million versus $123 million last year. Revenue at clubs operated for over 12 months decreased 4.2 percent in the quarter versus last year.
The company also swung to a net loss of $815,000, or $0.04 per share, compared to a net income of $2.5 million, or $0.11 per share, for the same period last year.
Total member count decreased 2.2 percent compared to March 31, 2010 and 3.8 percent compared to June 30, 2009.
Sport Chalet narrows Q1 ’11 loss
Sport Chalet (Nasdaq: SPCHA and SPCHB) reported a slight uptick in sales and a narrower loss for the first quarter of fiscal 2011, but warned it is still suffering from the continued economic downturn in its core markets of California, Arizona and Nevada.
Sales increased 0.4 percent to $79.7 million for the quarter ended June 27 from $79.4 million for the same period last year.
The company said the increase was primarily from improvements in the team sales and e-commerce divisions, but was partially offset by a slight decrease in comparable store sales of 0.2 percent.
Net loss for was $1.9 million, or $0.14 per diluted share, compared to a net loss of $3.0 million, or $0.21 per diluted share, last year.
Gross profit as a percent of sales increased to 28.3 percent compared to 26.4 percent for the first quarter of last year. Selling, general and administrative expenses increased to 26.5 percent from 25.1 percent in the same period last year.
Winmark redeems notes
Winmark Corp. (Nasdaq: WINA), parent of Play It Again Sports, said it has redeemed all of its outstanding renewable unsecured subordinated notes. The redemption price equaled 100 percent of the principal amount, plus accrued and unpaid interest up to the redemption date, it said. The company added that it borrowed $16.0 million on its line of credit to finance the redemption.
--Compiled by Wendy Geister
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