Exhibit 99.1
Cybex International, Inc.
Fair Disclosure
This presentation includes “forward-looking statements”. Forward-looking statements relate to future events or our future financial performance and are subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those expressed or implied by these forward-looking statements for a number of important factors. These factors include, among others, the successful development and introduction of new products, potential delays and uncertain market acceptance, fluctuations in raw material costs, reliance on third party suppliers, ability to protect intellectual property and possible infringement claims. Additional information regarding these and other factors may be contained in the Company’s SEC filings. We cannot assure you that the assumptions upon which forward-looking statements are based will prove to be correct. We cannot guarantee any future results, levels of activity, performance or achievements. We assume no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in, or implied by, these forward-looking statements, even if new information becomes available in the future.
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Thumbnail Description
Sales $147M
Strong brand globally
Innovative products
Focused on premium market segment
Full line fitness equipment manufacturer (Strength, Cross Trainer, Treadmill, etc.)
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Key Business Strategies
Continue to introduce compelling and innovative new cardiovascular and strength fitness products.
Develop extensions and enhancements of existing products, especially the Arc Trainer.
Significantly expand presence in light commercial and high-end home markets.
Increase market share in North America and international markets.
Increase operating efficiencies through automation and flexible, lean manufacturing.
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Cybex Sales by Product
Strength Bikes Treadmills Steppers Arcs Home Arc Other
27%
2%
5%
39%
1%
20%
6%
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Customers
CUSTOMER SEGMENTS
COMMERCIAL MARKET (over 90% of Cybex’s 2007 revenue with approximately 160 products)
– Fitness clubs
– YMCAs and JCCs
– Military
LIGHT COMMERCIAL “VERTICAL” MARKET (9 products)
– Hotels, resorts and spas
– Corporate fitness centers
– Schools
HIGH-END HOME MARKET (1 product)
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Product Lineup
Cardiovascular Equipment
CROSS TRAINERS
Arc Trainer
Total Body Arc Trainer
“One size fits all”… for the first-time exerciser to the pro athlete
Patented advanced stride technology
Superior biomechanics and impact free
Broad resistance range
Gaining market share versus elliptical trainer
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Home Arc & 425A Arc Trainer
Compact Footprint and design for home use
11 levels of incline
20 levels of resistance
Two water bottle holders
Combines elements of a climber, hiker and skier for more workout versatility
The compact footprint and elegant design.
Delivers balanced loading allowing you to work harder without feeling it for better results in less time.
The adjustable incline lets you have the ultimate in variety.
A resistance range that lets you train as easy as you like or as hard as you need to.
Exceptional programming choices.
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Cardiovascular Equipment
TREADMILLS
Legacy 750T
Cybex CX 445T
Treadmill
Pro3 Treadmill
425T Treadmill Light Commercial
Legacy 750T
– Top end treadmill
Pro3 Treadmill
– Workhorse treadmill designed for durability and reliability
CX 445T Treadmill
– Developed for entry level commercial markets
425T Treadmill
– Developed for light commercial and high-end consumer markets
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Cardiovascular Equipment
STEPPER & BIKES
Cyclone S- Stepper
Cyclone Upright Bike
Cyclone Recumbent Bike
Cyclone S-Stepper
– Cable drive presents incredibly smooth feel
– Patented braking system provides virtually silent operation
– Welded, heavy-duty steel frame provides exceptional stability
– 29 levels and a speed range from 10–150 feet per minute
– The Heart Rate Control Program keeps you at your desired target heart rate
Upright Bike
– Three modes of operation: bike mode, constant power and isokinetic mode
Recumbent Bike
– Proprietary programs
– For rehabilitation patient to professional athletes
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Strength Equipment
EAGLE LINE – 20 PIECES – HIGHEST PRICE POINT
Eagle Abdominal
Eagle Leg Press
Eagle Chest Press
Eagle Strength Line
– Group of single-station equipment covers complete scope of a workout
– “Selectorized”, meaning user inserts pin to select the appropriate level of stacked weights
– Fully enclosed weight stacks for safety and aesthetics
– Easy to use and meets needs of performance-based users
– Dual axis technology: unique forced motion or free weight effects
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Strength Equipment
VR3 LINE –23 PIECES – MIDDLE PRICE POINT
Sales up 42% in 2007!
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Strength Equipment
NEW VR1 LINE – ENTRY LEVEL PRICE POINT – 15 Pieces –
Sales up 50% Q4 2007!
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Strength Equipment
NEW VR1 LINE – DUALS – LIGHT COMMERCIAL
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Product Portfolio
TIMELINE OF NEW PRODUCT INTRODUCTIONS
2002/2003
Arc Trainer
Eagle Strength
Pro+ Treadmill
2004
Total Body Arc Trainer
Recumbent Bike
Upright Bike
Q4 2005/2006
VR3 Strength
425T Treadmill
Trazer
Eagle Strength
445T
425A Arc
350 Home Arc
2007
VR1
AV Solution
750T
REVENUE MIX BY PRODUCT SEGMENT ($ in millions) $127 $115 $103 $90 $82 $147
$125 $100 $75 $50 $25 $0
2002
$11 $40 $31
2003
$11 $41 $38
2004
$11 $43 $49
2005
$13 $41 $61
2006
$12 $47 $68
2007
Commercial
22%
Light Commercial
6%
$12 $56 $79
Cardlovascular
Strength
Other
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Existing Products
COMMERCIAL
LIGHT COMMERCIAL
CONSUMER
VR3 Strength Eagle Strength Arc Trainer Pro3 Treadmill NEW! 445T Treadmill 750T NEW!
Cyclone Bikes Steppers VR1 Strength NEW!
425 Treadmill 425 Arc Trainer Duals Strength NEW! VR1 Strength NEW!
Home Arc
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New Product Pipeline
COMMERCIAL
LIGHT COMMERCIAL
CONSUMER
2008
Arc 2
Plate Loaded Line Bike Line
2009
eNova Line 760 Treadmill New Audio/Visual Display Package
2009
Light Commercial Bike Line
2008
Multi-Gym Strength New Home Arc
2009
Another Cardio Product
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Market Opportunity & Dynamics
CYBEX’S CURRENT PRIMARY MARKET
CYBEX’S EXPANDED MARKET OPPORTUNITY
Commercial
Commercial Light Commercial Premium Home $6 BILLION GLOBAL FITNESS EQUIPMENT MARKET
CYBEX TARGET MARKET
Other Home 58%
Premium Home 14%
Commercial $1.5 billion Light Commercial .3 billion Premium Home .7 billion Total $2.5 billion
Source: Sporting Goods Manufacturers Association, International Health, Racquet & Sportsclub Association and Cybex estimates
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Distribution and Marketing
Sales and distribution network
– Direct sales force
» Highest incentive-driven compensation in industry
» Includes trainers, exercise scientists and physiologists
– Independent authorized dealers and distributors
– Internet site – www.cybexinternational.com
Cybex Capital arranges leasing and financing with third parties
Cybex Hospitality focuses on hotel, spa and resort market
2007 REVENUE BY SEGMENT
North American Sales 72%
International Sales 28%
Dealer & Distributor Sales 52%
Direct Sales 48%
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Precision Manufacturing
Vertically integrated manufacturing facilities emphasizing flexibility, consistency and efficiency Operations include fabrication, machining, welding, grinding, assembly and finishing of products Flexibility enables customization of product color and upholstery Products principally “built-to-order”
Medway, Massachusetts
– Treadmills, bikes and Trazer
– 120,000 square feet Owatonna, Minnesota
– Arc Trainer and strength equipment
– New 340,000 square feet facility in Q3 2007
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Custom Colorization
160 different types of equipment can be customized—colors to coordinate with the customer’s decor as well as upholstery imprinted with customer’s name & logo
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Customers
SELECTED CUSTOMERS
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Competitive Landscape
GLOBAL FITNESS EQUIPMENT SALES BY SEGMENT ($ in millions)
$1 billion $2 billion
$1,000 $900 $800 $700 $600 $500 $400 $300 $200 $100 $0
Other
North America Commercial International Commercial Consumer
Source: Public filings of certain companies and Cybex estimates
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Fitness Market – Projected Growth
U.S. CLUB MEMBERSHIP
6.0% CAGR
INTERNATIONAL MEMBERSHIP
6.0% CAGR
(Figures In Millions)
70 60 50 40 30 20 10 0
41 44 46 49 52 55
2005 2006 2007 2008 2009 2010
8.25% CAGR
80 70 60 50 40 30 20 10 0
44 47 51 55 60 65
2005 2006 2007 2008 2009 2010
(Figures In Millions)
HEALTH CLUB REVENUE GROWTH
$20,000
$18,000 11% $16,000 11% 7%
$14,000 5%
(Figures In Millions) $12,000
$10,000
2003 2004 2005 2006 2007 Est.
Source: IHRSA
Growth in commercial health clubs and membership leads to…
Expansion of light commercial market (hotels, resorts, spas, etc.)
– Premium equipment reinforces experience
Increase in premium consumer market
– Approximately 60% of health club members in the U.S. own home fitness equipment
Sources: International Health, Racquet & Sportsclub Association
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Financial Overview
Quarterly Sales Growth
22 Consecutive Quarters
50
44.5 45
40 38.2 36.0 34.7 34.7 35 32.6
30.0 29.8 29.9
30 28.9
27.2 26.7 26.6 24.8 25.0 24.4 24.1 25 21.9 20.6 21.1 20
15
10
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0
‘03 ‘04 ‘05 ‘06 ‘07 ‘03 ‘04 ‘05 ‘06 ‘07 ‘03 ‘04 ‘05 ‘06 07 ‘03 ‘04 ‘05 ‘06 ‘07
First Quarter Second Quarter Third Quarter Fourth Quarter
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Financial Performance
Trailing 12 months (in thousands, except per share data)
December 31, December 31,
Change
2007 2006
Sales $ 146,503 $ 126,924 15%
Gross Margin % 34.7% 36.8% (2.1%)
Operating Income $ 8,596 $ 9,962 (13%)
Operating Margin % 5.9% 7.8% (1.9%)
Net Income $ 9,754 $ 20,054
EPS $.56 $1.22
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Solid Balance Sheet
DEBT BALANCE ($MM)
$35.0
$30.0
$25.0
$20.0
$15.0
$10.0
$5.0
$0.0
$29.0 $27.1 $24.1 $20.6 $20.0 $18.9
$13.7
$3.8
2002 2003 2004 2005 2006 Q2 2007 Q3 2007 Q4 2007
60 50 40 30 20 10 0
51
47 47
41 40
6.54 7.04 7.00 7.37 6.68
2003 2004 2005 2006 2007
INVENTORY TURNS
7.60 7.40 7.20 7.00 6.80 6.60 6.40 6.20 6.00
7.37
7.04 7.00
6.68 6.54
2003 2004 2005 2006 2007
2.0 1.8 1.6 1.4 1.2 1.0 0.8 0.6 0.4 0.2 0.0
CURRENT RATIO
1.8X
1.5X
1.2X 1.1X
0.8X
0.5X
2002 2003 2004 2005 2006 2007
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Unusual Income Statement Items
2007 2006
Reduction of Deferred Tax Valuation Allowance $ 5,244,000 $ 14,421,000
(After-Tax Income)
SGA:
eNova Investment (net) $ 650,000
Old Treadmill Repair $ 600,000
Home Arc Re-design $ 230,000
Settlement of Licensing Agreement $ (325,000)
$ 1,155,000
Cost of Goods:
Relocation of Owatonna Facility $ 550,000
Home Arc Inventory Reserve $ 250,000
$ 800,000
Interest Expense:
Interest Rate Swap $ 506,000
Total Pre-Tax Charges (net) $ 1,955,000 $ 506,000
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Financial Goals
Sales Growth Over 10%
Increase in Net Income at Least on Pace with Sales Growth
Strong Balance Sheet
Higher Operating Margins
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Questions & Answers
Cybex International, Inc.