Fitness financials: Cybex 4Q sales up 15 percent, sets aside $46 million for lawsuit reserve

Cybex reported its fourth-quarter sales up 15 percent, but recorded a huge loss as it set aside $46 million in reserves and $12.7 million in tax provisions related to a product liability case it continues to fight in court.

Cybex International, Inc. (NASDAQ: CYBI) reported strong fourth quarter 2010 sales, but recorded a huge loss as it set aside money relating to a product liability suit it is fighting in court.

The Medway, Mass.-based fitness equipment manufacturer reported fourth-quarter revenue, ended Dec. 31, 2010, of $39.9 million – up 15 percent from same period a year ago.

Despite the sales success, Cybex reported a staggering quarterly net loss $57.1 million, or a loss of $3.34 per diluted share, as it reserved $46 million for an unfavorable jury verdict, which it is appealing, and $12.7 million for a tax provision, also related to the case.

Excluding those charges, Cybex would have reported a net income of $1.5 million, or $0.09 per diluted share for the fourth quarter, company officials said.

In December 2010, a New York jury ordered Cybex to pay $65.9 million in damages to plaintiff Natalie M. Barnhard, who sued the company after one of its exercise machines fell on her in 2004. Cybex contended Barnhard wasn’t using the machine for its intended purpose (Click here to read Cybex's initial, official reaction in December 2010.)

“We will continue to vigorously defend ourselves with respect to the product liability verdict, which we believe was in error,” Cybex Chairman and CEO John Aglialoro said in statement released with the company’s earnings on March 31. “This process may result in a long and uncertain path, but we have faith that our judicial system can produce a reasonable resolution.”

For the full year 2010, Cybex reported revenue of $123 million – up 2 percent from 2009. The yearly net loss, including the above fourth-quarter charges, came in at $58.2 million, or a loss of $3.40 per diluted share, compared to a net loss of $2.4 million, or a loss of $0.14 per share in 2009.

Excluding the charges, Cybex’s 2010 net income would have been $400,000 or $0.03 per diluted share, company officials said.

Aglialoro said 2011 was off to a good start with first-quarter sales up more than 10 percent from the same period a year ago.

Stock prices closed March 31 at $0.85, up nearly 20 percent from a day earlier.

--Compiled by David Clucas



Cybex 4Q earnings back on track following settlement

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 more


Cybex continues sales improvement, awaits lawsuit appeal

Cybex International, Inc. (NASDAQ: CYBI) reported revenue up 18 percent for the second quarter 2011, but its quarterly net loss widened as it continues to appeal an unfavorable lawsuit ruling. The Medway, Mass.-based manufacturer of fitness equipment reported second-quarter more


Cybex swings to 1Q profit, continues lawsuit appeal

Cybex International Inc. (Nasdaq: CYBI) continues to recover from the effects of a down economy and recent unfavorable judgment from a liability lawsuit as it reported higher revenue and swung to a profit for the first quarter. The Medway, Mass.-based fitness equipment more


Jury verdict against Cybex reduced to $44 million

A New York appeals court has reduced a near $66 million jury verdict faced by fitness equipment manufacturer Cybex to $44 million. The ruling by the Appellate Division, Fourth Judicial Department, of the Supreme Court of the State of New York in the case of Natalie Barnhard vs. more


Fitness financials: Garmin up on fitness; plus Adidas 1Q earnings and Cybex’s lawsuit update

Garmin Ltd. (Nasdaq:GRMN) reported strong first-quarter revenue and profit growth, led by growth from its fitness segment. The satellite navigation company reported revenue of $508 million for the first quarter 2011 – up 18 percent from the same period a year ago. Its quarterly more

Fitness financials: Cybex’s Q4 sales drop 12 percent

Cybex’s Q4 sales drop 12 percent Fourth-quarter sales for Cybex (Nasdaq: CYBI) fell 12 percent, but the company swung to a profit after last year’s Q4 loss. For the quarter ended Dec. 31, net sales were $34.8 million compared to $39.3 million for the corresponding 2008 period. more

Fitness financials: Cybex posts 15-percent increase in Q1 sales, plus Hibbett Sports

Cybex posts 15-percent increase in Q1 sales Cybex International (Nasdaq: CYBI) said its net sales increased to $39.8 million in the first quarter of this year, a 15-percent increase over the $34.7 million it posted in the first quarter of 2007. Net income rose slightly as the more

Fitness financials: Q3 profit up 15 percent for Hibbett Sports, plus Dick’s Sporting Goods, Cybex, Nike, Sears, Foot Locker

Q3 profit up 15 percent for Hibbett Sports Hibbett Sports (Nasdaq: HIBB) posted a 15 percent rise in profit as sales increased and gained better control of inventory and expenses. For the quarter ended Oct. 31, it earned $8.8 million, or $0.30 per share, up from the $7.7 more


Cybex post-trial motions don’t convince judge to change $66 million verdict; appeal process starts as business continues

Cybex is preparing its appeal of the $66 million jury verdict against it in a product liability lawsuit. The appeal of the Dec. 7, 2010, ruling should be formally filed with the appellate division of the Supreme Court of the State of New York in 30 days or less, COO Art Hicks more