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Cybex plans to buy back 1 million stock shares
Cybex International (Nasdaq: CYBI) said its board of directors has authorized the repurchase of up to 1 million shares of its common stock. It added that the repurchases may be in the open market or through privately negotiated transactions and will depend upon various factors, including the Cybex stock price and market conditions.
“We view our common stock as an attractive value at current trading prices. We believe that our cash flows and credit availability will permit Cybex to repurchase our stock while continuing to invest in the growth of our business,” said John Aglialoro, Cybex’s chairman and CEO in a statement.
A company buys back shares to reduce the number of shares outstanding and generally indicates the company thinks its stocks are undervalued.
Iconix’s Q3 sales up, plans stock repurchase
Iconix Brand Group (Nasdaq: ICON), parent of Danskin Fitness, reported a 29-percent increase in third-quarter revenue.
Revenue was $55.1 million for the quarter ended Sept. 30 compared to $42.7 million in the same period in 2007.
Net income for the third quarter increased 8 percent to approximately $18.3 million, or $0.30 per diluted share, compared to $17.0 million, or $0.28 per diluted share, in the prior year quarter.
EBITDA for the third quarter increased 23 percent to $37.9 million up from $30.8 million last year. Free cash flow for the quarter increased 13 percent to $31.5 million versus $27.9 million.
The company expects to achieve its 2008 guidance for revenue of $215 million to $220 million and diluted earnings per share of $1.15-$1.20, but is now guiding toward the low-end of the ranges. Free cash flow is projected to be in excess of $120 million.
For FY 2009, the company is issuing guidance of revenue in a range of $225 million to $235 million.
Also, Iconix said it would buy back up to $75 million in shares over a three-year period. It has about 58.1 million shares outstanding. Since the beginning of the year, Iconix shares have fallen about 45 percent.
Town Sports’ Q3 earnings per share down 26.3 percent
Town Sports International Holdings (Nasdaq: CLUB) said total revenue for the third quarter increased 7.8 percent compared to the year before, driven by growth in membership and personal training revenue.
Revenue was $128.1 million compared to $118.8 million in the same period the year before. Comparable club revenue increased 2.2 percent.
Net income for Q3 2008 was $3.8 million compared to a net income of $5.1 million for Q3 2007. Diluted earnings per share decreased 26.3 percent to $0.14, including a $0.02 fixed asset impairment charge.
Total operating expenses increased 11.0 percent compared to Q3 2007. Operating margin was 9.0 percent versus 11.7 percent in 2007.
EBITDA increased 1.4 percent to $25.6 million from $25.3 million for 2007. As a percentage of total revenue, EBITDA was 20.0 percent compared to 21.3 percent last year.
During this third quarter, the company said its growth in net members was weaker than anticipated, and it’s forecasting these membership trends to soften further in the fourth quarter. Subsequently, it lowered its previous guidance for the year to total revenue of $504.0 million to $508.0 million, down from $510.0 million to $520.0 million.
It also anticipates net income of $16.5 million to $17.5 million, down from $21.3 million to $22.3 million. It expects earnings per share on a fully diluted basis of $0.62 to $0.66 for 2008, down from $0.80 to $0.84.
Town Sports is the owner and operator of health clubs located primarily in major cities from Washington, D.C., north through New England, operating under the brand names New York Sports Clubs, Boston Sports Clubs, Washington Sports Clubs and Philadelphia Sports Clubs.
Big 5’s Q3 net income plummets
Big 5 Sporting Goods’ (Nasdaq: BGFV) third-quarter net income was cut in half from last year hit by slower customer traffic amidst a consumer environment that continues to be challenging.
Net income for the third quarter of fiscal 2008 was $4.5 million, or $0.21 per diluted share, compared to net income of $8.4 million, or $0.37 per diluted share, for the third quarter of fiscal 2007.
Net sales were $223.2 million, compared to net sales of $231.3 million for the same period in 2007. Same-store sales dropped 6.6 percent.
Gross profit was $74.3 million compared to $79.4 million last year. The company’s gross profit margin was 33.3 percent versus 34.3 percent in the third quarter of the prior year.
Selling and administrative expense as a percentage of net sales was 29.6 percent in the fiscal 2008 third quarter versus 27.7 percent in the third quarter of the prior year, primarily due to lower sales levels and higher store-related expenses reflecting an increased store count.
Since the company assumes that sales will continue to be impacted by a challenging consumer environment, Big 5’s guidance for the fourth quarter anticipates a decline in same store sales in the mid- to high-single digit range and earnings per diluted share in the range of $0.07 to $0.17. For the FY 2008, it expects a decline in same-store sales in the mid- to high-single digit range and earnings per diluted share in the range of $0.55 to $0.65.
During the third quarter of fiscal 2008, Big 5 opened three new stores and closed a store that was relocated during the second quarter. It ended the third quarter with 372 stores in operation. The company anticipates opening nine new stores during the fiscal 2008 fourth quarter, bringing its total new store openings for the full year to 18.
The company’s board of directors also declared a quarterly cash dividend of $0.09 per share of outstanding common stock, which will be paid on Dec. 15 to stockholders of record as of Nov. 28.
The Sports Club Q3 posts lower net loss
For the third quarter, revenue for The Sports Club Company (Pink Sheets: SCYL) held steady with a lower net loss.
For the quarter ended Sept. 30, revenues were $15.4 million compared to $15.3 million for the third quarter in 2007.
Net income, before preferred stock dividends, was $24,000 compared to a net loss of $865,000 for 2007. This was the company’s first reported quarterly net income, before preferred stock dividends, since the fourth quarter of 1999.
After preferred stock dividends of $299,000 for both the third quarter 2008 and 2007, the net loss attributable to common stockholders was $275,000 or $0.01 per basic and diluted share, compared to a net loss last year of $1.16 million, or $0.06 per basic and diluted share.
The Sports Club Company operates and owns sports and fitness complexes nationwide under the brand name The Sports Club/LA.
Puma raises ’08 sales guidance
Backed by solid orders, Puma (PUMG.DE) said it increased its full-year sales forecast on Friday, but did not reveal expected profits.
Puma, owned by French retailer and Gucci owner PPR (PTRP.PA), lifted its 2008 sales guidance to mid- to high-single-digit growth from single-digit currency-adjusted growth, due to its performance so far this year and solid order books.
Total orders stood at EUR 1.16 billion (USD $1.51 billion) as of September, up 4.7 percent currency-adjusted. The company said it managed to grow sales in the third quarter “despite the very challenging economic situation and sluggish retail environment.”
“The increase in the sales guidance is rather cosmetic and does not really change the picture,” wrote Equinet analyst Ingbert Faust in a note to clients.
Consolidated sales rose 9.2 percent, adjusted for exchange rate fluctuations, to EUR 712.7 million (USD $930.5 million) with sales in the Americas up 18.7 percent as the U.S. business stabilized.
(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 Oct. 31.)
Costco declares quarterly cash dividend
The board of directors of Costco Wholesale (Nasdaq: COST) declared a quarterly cash dividend on the company’s common stock of $0.16 per share, or $0.64 per share on an annualized basis. The dividend of $0.16 per share is payable Nov. 28 to shareholders of record on Nov. 14.
–Compiled by Wendy Geister
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