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Fitness financials: Cybex gets $1 million loan for equipment, plus Town Sports, adidas, Amer Sports, Costco

Cybex got a $1 million loan for equipment, Town Sports reported a drop in Q4 and in FY '08 profits, while Q4 profit for adidas shos up 151 percent, Amer Sports updated a share repurchase program, and Costco's Q2 earnings dropped 27 percent.

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Cybex gets $1 million loan for equipment

In a filing with the SEC, Cybex International (Nasdaq: CYBI) reported that Wachovia Bank, N.A. provided it with an additional term loan availability of up to $1 million to purchase machinery and equipment.

The promissory note, dated Mar. 2, is subject to all of the terms and conditions of the loan agreement between Cybex and Wachovia dated July 30, 2007. Beginning on April 1, 2009, it will be subject to monthly payments of interest only, and will mature on Dec. 31, 2009, at which time the entire balance of principal and interest is due and payable in full.

Town Sports reports drop in Q4, FY ’08 profits

Despite increases in sales, Town Sports International Holdings (Nasdaq: CLUB) posted declines in both its fourth-quarter and full-year profits.

Total revenue for the fourth quarter increased 3.4 percent to $122.9 million, compared to $118.8 million the same period in 2007 driven by new club openings.

Net loss for the quarter was $13.1 million, compared to a net income of $6.0 million in 2007.

For the full year, revenues went up 7.1 percent to $506 million versus $472.9 million in the same period a year before.

Net income for FY ’08 was $2.3 million, compared to $13.6 million for the year ended Dec. 31, 2007.

Looking forward, Town Sports expects first-quarter revenue to be between $123.0 million and $125.0 million versus $126.3 million for the Q1 2008.

In other company news, Jason Fish assumed the role of chairman of the board of directors, replacing Paul Arnold, who will remain as a director.

Q4 profit for adidas shoots up 151 percent

adidas (XETRA: ADS.DE) reported that its fourth-quarter net profit jumped 151 percent on improved sales, a better tax rate and higher operating profits.

Net profit for the quarter was EUR 54 million (USD $68 million) from EUR 21 million (USD $26.4 million) in the same period a year earlier. Sales rose 6 percent to EUR 2.57 billion (USD $3.23 billion) from EUR 2.42 billion (USD $3.04 billion) the previous year.

For the full year 2008, adidas said net profit increased 16 percent to EUR 642 million (USD $809 million) from EUR 551 million (USD $694 million) a year ago. Sales in 2008 rose 5 percent to EUR 10.8 billion (USD $13.6 billion) from EUR 10.3 billion (USD $12.9 million) a year ago.

The company said the adidas brand and the TaylorMade golf segment contributed to the year’s sales, while the Reebok brand saw revenues decrease compared to 2007.

Sales in constant euro terms increased 10 percent for the Adidas brand and 1 percent for TaylorMade. Reebok saw an 8 percent decline in sales in 2008, although somewhat stronger when accounting for exchange rates.

The company said 2009 will be a difficult year, noting that the effect global macroeconomic developments could have on the adidas group’s business outlook is difficult to forecast, especially with regard to the second half of the year.

Latin America posted the strongest growth in 2008 with a 36 percent yearly increase in sales in euro terms, to EUR 893 million (USD $1.12 billion). Asia saw an 18 percent increase in sales to EUR 2.7 billion (USD $3.4 billion) and Europe was up 7 percent rise to EUR 4.7 billion (USD $5.9 billion). Sales in North America were weaker, falling 14 percent in 2008 to EUR 2.5 billion (USD $3.1 billion).

The company’s total order backlogs in footwear and apparel were 4 percent lower at the end of 2008 compared with the year prior on a fixed currency basis. adidas brand order backlogs were 4 percent lower, while Reebok orders were 18 percent lower.

(Conversion of Euros into U.S. dollars is for information only, is not necessarily relative to earnings, and is based on the currency rate as of Mar. 4.)

Amer Sports updates share repurchase program

Amer Sports Corp. said it has decided to cancel its proposal regarding the authorization to repurchase the company’s own shares. It also changed its proposal regarding the authorization of the board of directors to decide on issuance of shares.

It also transferred 340,900 of its own shares to its fully owned subsidiary, Amer Sports International Oy, to be used for the group’s key personnel’s share-based incentive plan. The transfer date of the shares was March 3. As a result of the transfer, Amer Sports Corp. does not hold any own shares.

Amer Sports is parent of Precor.

Costco’s Q2 earnings drop 27 percent

Costco (Nasdaq: COST) posted decreases in both its second-quarter profit and same-store sales.

For the quarter ended Feb. 15, earnings slid 27 percent to $239.7 million, or $0.55 per share, from $327.9 million, or $0.74 per share, a year earlier.

Revenue dipped 1 percent to $16.84 billion from $16.96 billion.

Same-store sales dropped 3 percent during the quarter. Excluding falling gas prices and the stronger dollar, same-store sales climbed 5 percent.

And, for the month of February, net sales were $5.06 billion, a decrease of 1 percent from $5.13 billion in the same period last year. Total same-store sales were down 3 percent.

–Compiled by Wendy Geister

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