Fitness financials: NYSE warns Bally of possible delisting on exchange, plus Cybex, Brunswick, Stride Rite, Finish Line

NYSE warns Bally of possible delisting on exchange
On Mar. 30, Bally Total Fitness (NYSE: BFT) reported in a filing with the SEC that its shares may be delisted by the New York Stock Exchange if it does not start to meet certain standards.

The announcement comes after the company said on Mar. 15 that it may have to file for Chapter 11 bankruptcy protection. At that time, Bally said it was unable to file its 2006 annual report with the SEC on time and did not know when it would file the report.

Bally’s stock has been suspended on the NYSE since Mar. 16, when it was trading at $1.05 or less. The shares, which traded at more than $9 a year ago, have been traded on other markets.

To keep its NYSE listing, Bally must file timely periodic reports with the SEC and maintain an average market capitalization of at least $75 million for 30 consecutive trading days.

Since Bally does not know when it will file the annual report on form 10-K, and its market capitalization fell below that threshold, the NYSE told Bally’s on Mar. 26 that it is likely to deem Bally to be a “late filer” on April 2.

The NYSE told Bally to respond on an accelerated basis, not in the usual 45 days it would have to respond to a noncompliance notification. If Bally does not respond, or if the NYSE does not accept its response, Bally is subject to NYSE delisting, the company said.

The NYSE also told Bally that some qualitative assessment factors, along with the quantitative factors, could impact continued listing of its common stock.

Bally said that if its common stock is delisted from the NYSE, it plans to make arrangements for the stock to be quoted on the OTC Bulletin Board or a similar system.

Cybex revises fourth-quarter guidance
Cybex International (Nasdaq: CYBI) lowered its previously reported fourth-quarter earnings to reflect an expense related to a higher interest rate.

Cybex said fourth-quarter earnings were adjusted downward to $503,000, or $0.03 per share. In February, the company reported the result at $2.8 million, or $0.16 per share. A year-ago, earnings were $2.4 million, or $0.16 per share.

For the year, earnings were revised downward to $20.1 million, or $1.18 per share, from $20.4 million, or $1.19 per share. In 2005, Cybex earned $60,000, or less than 1 cent per share.

The changes were caused by an increase of $506,000 before taxes to 2006 interest expenses to reflect the effects of an interest-rate swap agreement.

Brunswick CEO paid $8.9 million in 2006
Dustan McCoy, chairman and CEO of Life Fitness-parent Brunswick Corp. (BC), received compensation worth $8.9 million in 2006.

McCoy earned a salary of $800,000. The majority of his compensation came in the form of stock and option grants that Brunswick valued at $6.8 million on the dates issued.

McCoy also received $903,000 in perquisites, including $156,000 as part of the company’s boat program and $108,000 for personal use of company aircraft. He received $328,000 as part of a non-equity incentive plan, and $94,034 in above-market returns on pension contributions.

In 2006, Brunswick saw profit plunge 65 percent to $133.9 million, or $1.42 per share, on 1 percent higher revenue of $5.67 billion. The bottom line was hurt by restructuring charges.

Stride Rite’s Q1 misses analysts’ mark
Shares of Stride Rite Corp., parent of Saucony and Hind, dropped 10.4 percent on Mar. 29, after the company reported fiscal first-quarter earnings that missed analysts’ expectations.

The company said net income for the quarter rose 34 percent to $11.1 million, or $0.30 per share, from $8.3 million, or $0.22 per share, during the year-ago quarter, which included 6 cents of costs for integrating shoemaker Saucony.

Revenue grew 6 percent to $194.7 million, from $183.4 million a year ago. Same-store sales grew 6.3 percent. The company said the “uneven” retail environment hurt results.

Analysts expected higher earnings of $0.31 per share on revenue of $196.2 million.

The company reaffirmed its yearly net income earnings guidance of between $1.10 per share and $1.15 per share, excluding integration costs of 2 cents per share. It expects sales growth of 5 percent to 8 percent from $588.2 million, implying sales of $617.6 million to $635.3 million.

Shares fell $1.77, or 10.4 percent, to close at $15.25 on the New York Stock Exchange, where the stock has traded between $11.90 and $18 during the past 52 weeks.

Finish Line Q4 profit narrows
Finish Line’s (Nasdaq: FINL) fourth-quarter profit narrowed on a mix of higher expenses and a $7.5 million asset impairment charge.

The company earned $21.1 million, or $0.44 per share, compared with profit of $28.1 million, or $0.58 per share, during the same period a year prior. Revenue rose to $429 million from $399.2 million. Same-store sales fell 5.4 percent during the quarter.

Expenses for the quarter rose to $93.9 million from $85.1 million. The company also had an asset impairment charge of $7.5 million compared with $2.5 million a year ago.

For the full year, the company earned $32.4 million, or 68 cents per share, compared with profit of $60.5 million, or $1.23 per share. Revenue rose to $1.34 billion from $1.31 billion.

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