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    Stock Report for Cybex International Inc. (CYBI)

    Cybex International Inc. (CYBI) is a manufacturer of premium exercise equipment primarily for commercial use. The Cybex product line, including a full range of strength and cardio training machines, is designed using exercise science to reflect the natural movement of the human body. Led by the Cybex Research Institute, Cybex fitness equipment is engineered to produce optimal results for users from the first-time exerciser to the professional athlete. Cybex products, designed and built in the USA, are available for a wide range of facilities, from commercial health clubs to home gyms, and are sold in more than 85 countries worldwide.

    Share Statistics (16-Feb-12)   FY

    2009

    FY

    2010

    %

    Chg

    Q3

    2010

    Q3

    2011

    %

    Chg

    Symbol  CYBI Revenue, $Mn 120.47 122.96 2.1% 29.23 33.48 14.5%
    Current price $2.35 Gross marg. 29.9% 36.5% 22.1% 35.9% 34.8% -3.1%
    52wk Range: $0.36-$2.02 Oper. margin -35.2% -0.1%
    Avg Vol (3m): 62,179 Net margin -2.0% -47.4% 2270.0% -0.0% -0.8%
    Market Cap. 39.38M              
    Shares Outstanding 17.12M EPS, $ -0.14 -1.46 942.9% 0.00 0.04

    Source: Reuters.com, SEC Filings.

    Investment Highlights

    Cybex International Inc. (CYBI) climbed as high as $2.80 Thursday, a fresh 52-week high, a day after it reported fourth-quarter results showing a swing to profit. The stock closed the session at $2.35, a 26% gain on the day, with above-average volume of 801 K shares traded.

    Shares in the international fitness equipment provider have risen 62.1% in the last five days; 452.9% in the last month; and 216.7% year-to-date.

    CYBI posted a net income of $34.7 million, or $2.03 per diluted share, for the fourth quarter ended December 31, 2011, reversing a net loss of ($57.1) million, or ($3.34) per diluted share, for the comparable quarter of the prior year. The 2011 and 2010 results include a 2010 litigation charge pertaining to the jury verdict in the product liability suit, Barnhard v. Cybex International Inc., and the 2011 adjustments to the charge relating to the settlement of the suit.

    Excluding these charges and adjustments, the Company earned $2.7 million, or $0.16 per fully diluted share, for the latest quarter period, and $1.5 million, or $0.09, per fully diluted share for 2010.

    CYBI reported net sales of $43.1 million for the quarter, compared to $39.9 million in the same period last year, an 8% increase.

    “Sales in North America increased 3% and sales outside North America increased 20% for the fourth quarter,” according to John Aglialor, chairman and CEO of CYBI.  “Importantly, we accomplished these results during a time of global economic uncertainty while confronting an unfair and excessive jury verdict which is now behind us. Our growth is a testament to the health of the company and the value customers have for our innovative and superior products.”

    CYBI shares spiked earlier this month after the Company announced that it has reached a settlement in the Barnhard product liability suit.  Pursuant to the settlement, CYBI will pay to the plaintiff, net of insurance, about $19.5 million of which approximately $18.5 million will be paid at the consummation of the settlement with the balance paid over seven years.

    As part of the settlement, the Company will be released of all further liability with respect to the litigation, which will be dismissed with prejudice. It will satisfy its cash obligation through available cash, its existing line of credit and additional financing, which it is in the process of arranging with its principal bank.

    Source:

    http://www.cybexintl.com/company/press/Default.aspx

    Financial Strength (16-Feb-2012)

    Company

    Industry

    Sector

    S&P 500

    Quick Ratio (MRQ) 0.53 1.57 1.06 0.58
    Current Ratio (MRQ) 0.69 2.36 1.29 0.93
    LT Debt to Equity (MRQ) 12.97 56.14 171.55
    Total Debt to Equity (MRQ) 17.94 96.62 228.97
    Interest Coverage (TTM) 0.91 0.02 0.30 27.52

    Source: Reuters.com, SEC Filings.

    Technical Analysis

    Source: http://stockcharts.com

    CYBI is above the upper Bollinger Band, implying that it is currently extended from its recent trend. Be aware, however, that a cross outside of the Bollinger Bands can sometimes be a signal of trend strength and not, necessarily, trend reversal.

    The MACD for CYBI currently indicates a strong bullish signal for two reasons. First, the MACD is above the signal line, a 9-day moving average. Second, the MACD is above 0, which implies that the underlying moving averages are trending higher.

    Comparative Analysis

    Company Name Ticker Price per Mrkt. Cap. P/E P/S
    Feb16-2011 symbol Share, $ $ Mn 2011 2012 2011 2012
    Brunswick Corp. BC 24.41 2.18B 17.31 12.92 0.56 0.52
    Nautilus Inc. NLS 2.74 84.55M n/a 18.27 0.48 0.44
    Sporting Goods Median       14.37 n/a 0.49 n/a
    Cybex International Inc. CYBI 2.35 39.89M n/a n/a 0.29 0.28

    Source: Thomson Financial

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