Fitness financials: Cybex Q2 sales down on weak consumer spending, in non-compliance with banks; plus Life Time Fitness, Hibbett Sports, Finish Line - SNEWS

Fitness financials: Cybex Q2 sales down on weak consumer spending, in non-compliance with banks; plus Life Time Fitness, Hibbett Sports, Finish Line

Cybex said its Q2 sales were down on weak consumer spending, Q2 sales were up and profit was down for Life Time Fitness, Hibbett Sports hired a new VP of merchandising, and Finish Line said its co-founder is retiring.
Author:
Updated:
Original:

Cybex Q2 sales down on weak consumer spending, in non-compliance with banks

Amidst a weak sales environment, Cybex International (Nasdaq: CYBI) said its sales for the second quarter were down as its customers, particularly fitness clubs and similar facilities, continue to be cautious and delay purchases.

"The equipment manufacturing industry continues to struggle in this long downturn of activity," said John Aglialoro, CEO and chairman, on a call July 30 with investors. "We are continuing to look at cost-cutting opportunities,…and we're ready to grow rapidly once the opportunity presents itself."

For the quarter ended June 27, net sales were $27.8 million compared to $33.1 million for the corresponding 2008 period, or down 16 percent. Of that, cardiovascular equipment sales were down 7 percent, while strength sales were down 27 percent. Sales were down both in North American and internationally, or 16 percent and 18 percent, respectively. Aglialoro blamed higher strength equipment sales decreases on clubs contracting and also waiting on upgrades.

It reported a net loss of $2.1 million, or $0.12 per diluted share, compared to net income of $.1 million, or $0.01 per diluted share, reported for the corresponding 2008 period.

For the six-month period, net sales were $56.7 million compared to $72.9 million for 2008. Its loss was $3.5 million, or $0.20 per diluted share, compared to net income of $1.4 million, or $0.08 per diluted share, for 2008.

"Margins have been negatively affected by several factors, most particularly the lower sales levels. We expect fitness clubs to resume purchasing to previous levels in the future, and in the meantime, we are focusing on other markets that will represent incremental sales to Cybex," said Aglialoro in a statement.

The company continues to control costs, reducing second-quarter SGA by more than $1 million, or 10 percent, compared to the 2008 second quarter.

It noted that steel costs declined in the second quarter, but it was anticipating a greater impact on margins in the next quarter due to the reduction in steel costs than it realized in the second quarter.

In addition, Cybex's intended re-entry to the retail market has been marked by fits and starts.

"We keep trying to saddle up that horse,” Aglialoro said. He noted the first Arc Trainer for the home had problems so the company is trying again, though now is not the best time due to the financial situation's effect on retailers. He said the company was looking at other ways to reach the consumer, including big box and other retail and may not use a middle man, adding that the company would have an announcement soon for a potential 2010 debut.

Cybex also said it is in violation of certain financial covenants in its loan agreements and is negotiating with its banks, but anticipates receiving waivers for these violations. On the July 23 call, Aglialoro said the company is in non-compliance with two banks: One had already verbally agreed to a waiver, and the company he said was confident the other would do the same.

Nevertheless, Aglialoro said it is a 40-percent to 60-percent chance the company will have a profitable fourth quarter this year.

"As the tide rises, all boats go up," he said, "but I'm looking to take some market share from our competitors since we make better products."



Q2 sales up, profit down for Life Time Fitness


Life Time Fitness (NYSE: LTM) said a membership increase boosted its revenue for the second quarter, but its profit was down from a year earlier.

Net income dropped 7.9 percent to $18.3 million, or $0.46 per share, compared with $19.8 million, or $0.50 per share, a year earlier.

Revenue was up 10 percent to $212.5 million from $192.4 million a year earlier as the company focused on membership growth and retention.

EBITDA grew 6.7 percent to $61.2 million from $57.4 in 2008.

Looking forward, the company adjusted upward expectations for next year, saying it now expects earnings for 2010 to reach $67 million to $71 million, an increase from the previous $62 million to $68 million range. The earnings per share range is now between $1.65 and $1.75, up from the previous $1.55 to $1.70. Revenue is expected to be $830 million to $860 million.



Hibbett hires new VP of merchandising


Hibbett Sports (Nasgaq: HIBB) said Rebecca Jones will join the company in August as vice president of merchandising.

Jones is currently vice president/general merchandise manager at Jo-Ann Fabric and Craft Stores. Prior to joining Jo-Ann Fabric in 2003, she served as vice president/divisional merchandise manager at Wal-Mart Stores from 1999 to 2003.

She began her retail career at Fred Meyer Stores in 1982, serving in various operations, planning, buying and merchandising positions, including vice president/divisional merchandise manager from 1997 to 1999.



Finish Line co-founder retiring


Finish Line (Nasdaq: FINL) said co-founder and board member David Klapper is retiring and will be succeeded by Norman Gurwitz. Klapper has been a Finish Line board member since 1982.

Gurwitz serves as an Emmis Communications adviser. He will join Finish Line's audit and compensation committees, with the term on those committees ending next year.

The company also declared a regular quarterly dividend of $0.03 payable on Sept. 15 to shareholders of record Aug. 28.

--Compiled by Wendy Geister

For more information about any public company on this page or its financial reports, as well as to view stock prices updated every 15 minutes, visit the SNEWS® Stock Market Updates. Click on: www.snewsnet.com/cgi-bin/snews/stock_report.html.

Related

Fitness financials: Cybex's sales, profit down in Q2, plus Accell Group, GSI Commerce, Brunswick

Cybex's sales, profit down in Q2 Despite a reported pick-up in sales orders in mid-June, Cybex International (Nasdaq: CYBI) posted a drop both in its net sales and in its net income for the second quarter. "At this moment serious issues of credit, debt levels, consumer spending ...read more

CybexLogo.jpg

Cybex regains Nasdaq compliance

On the heels of its lawsuit settlement and subsequent stock price surge, Cybex International (Nasdaq:CYBI) has regained compliance with the Nasdaq stock market. The Medway, Mass.-based fitness equipment manufacturer previously faced possible delisting from the Nasdaq on the ...read more

Fitness financials: Cybex narrows Q2 loss, plus Hanesbrands/Champion

Cybex narrows Q2 loss Cybex International (Nasdaq: CYBI) narrowed its second-quarter loss as sales stabilized and higher gross margins continued, it reported. For the quarter ended June 26, its net loss was $0.4 million, or $0.02 per diluted share, compared to a net loss of $2.1 ...read more

Fitness financials: New Saucony/Hind parent reports Q2 profit down 23 percent, plus Finish Line, Sears Holdings, Amer Sports, Hibbett Sports

New Saucony/Hind parent reports Q2 profit down 23 percent Collective Brands (NYSE: PSS), which changed its name from Payless ShoeSource earlier this month, said its fiscal second-quarter profit declined 23 percent from higher costs and lower sales. It is now the parent of the ...read more

Fitness financials: Analyst tells investors to wait on Nautilus, plus Cybex, Johnson Health Tech, Dick's, Hibbett, Sara Lee, Foot Locker, Finish Line, Winmark/Play it Again, Town Sports, Wal-Mart

For May 16-22 Analyst issues concerns, tells investors to wait on NautilusAnalyst Merriman Curhan Ford on May 17 issued a newsletter that SNEWS® obtained expressing concern over the quality of earnings for Nautilus as well as trends in the balance sheet. The group concluded by ...read more

Outdoor financials: Dick's Sporting Goods' Q2 earnings dip, plus Hibbett Sports

Dick's Sporting Goods' Q2 earnings dip Dick's Sporting Goods (NYSE: DKS) said its second-quarter profit dipped 2.5 percent, while sales were boosted 4 percent by the opening of new stores and e-commerce sales. Earnings fell to $38.9 million, or $0.33 per share, compared with $40 ...read 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 ...read more

Fitness financials: Canada's Forzani Group reports Q2 in the black, plus Sport Chalet, Bally, Cybex, adidas/Reebok, Finish Line

Canada's Forzani Group reports Q2 sales resultsAfter suffering a profit loss in the same quarter in 2005, Forzani Group (FGL.TO) is in the black for the 2006 second quarter, as Canada's largest sporting goods retailer overhauled some of its storefronts. The company, whose outlets ...read more

Fitness financials: Hibbett Sports’ Q2 profit surges, plus Dick’s, Sears, Foot Locker

Hibbett Sports’ Q2 profit surges Hibbett Sports (Nasdaq: HIBB) said its second-quarter net income was nearly triple its profit a year earlier as its sales surged. For the quarter ended July 31, it posted net income of $4.0 million, or $0.14 per share, compared with $1.1 million, ...read more