Mar 1, 2008 12:00 PM
Cybex Reports 2007 Revenue Increase
Medway, Ma — Cybex International Inc. reported a net sales increase of 16 percent for fourth quarter 2007 and of 15 percent for 2007, according to John Aglialoro, chairman and CEO of Cybex.
Net sales for the fourth quarter were $44.5 million compared to $38.2 million for the same period in 2006. This increase was driven by strong sales of both cardio and strength products, and continued growth in the commercial equipment market, Aglialoro said last month in a call with analysts. The company reported net income for the fourth quarter of $3 million compared to $2.8 million in the fourth quarter of 2006.
The Medway, MA-based company's year-end net sales increased to $146.5 million compared to $126.9 million for 2006. Net income for 2007 was $9.8 million compared to $20.1 million for 2006. The 2007 results include the third-quarter reduction in the tax valuation reserve, which increased net income by $5.2 million. The 2006 results include a second-quarter reduction in the tax valuation reserve, which increased 2006 net income by $14.4 million.
Aglialoro says the company's commercial business continues to increase despite uncertainty in the economy.
“The economic environment is probably unsettling to all of us,” he says. “Our industry is no exception. We have seen no major affect of that. We've had spotty sales decreases here and there, but we are still sticking to double-digit revenue as our goal. If we hit that, we've stated that each year our earnings would be commensurate with that.”
When asked about the overall health of the commercial fitness market, Aglialoro said that overall, the industry continues to grow, and he does not expect that a recession or downturn in the economy would affect the commercial fitness market.
Aglialoro plans to manufacture more products at Cybex's own facilities, which could lead to the company's products selling at higher price points, he says.
Pricing was an issue with the company's commercial bike, the Cyclone, he says. The bike had a lot of options built into it, which put it at a higher price point, but many club owners wanted a bike with fewer options and a lower price. For that reason, Cybex will offer two versions of the Cyclone — one at a higher price with more options and the other at a lower price with fewer options.
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