CYB WisdomTree Chinese Yuan Strategy Fund

Cybex International, Inc. (AMEX: CYB), a leading exercise equipment manufacturer, today reported results for the third quarter ended September 30, 2006. Net sales for the third quarter 2006 were $29,849,000, compared to $26,690,000 for the third quarter 2005, an increase of 12%. On a GAAP basis, the Company reported net income for the third quarter of 2006 of $817,000, or $.05 per diluted share, compared to a net loss of $3,535,000, or $(.23) per diluted share, for the corresponding period of 2005. Excluding a third quarter 2005 litigation-related charge, and after an adjustment to the tax provision as described below, the Company�s third quarter 2005 non-GAAP net income was $346,000, or $.02 per diluted share. For the nine months ended September 30, 2006, net sales were $88,712,000, compared to $78,646,000 for 2005, an increase of 13%. On a GAAP basis, the Company reported net income for the nine months ended September 30, 2006 of $17,592,000, or $1.05 per diluted share, compared to a net loss of $2,378,000, or $(.16) per diluted share, for the corresponding period of 2005. Excluding a second quarter 2006 reduction of the valuation reserve for deferred taxes and the third quarter 2005 litigation-related charge, and after adjustments to the Company�s tax provision for each period as described below, the Company�s non-GAAP net income for the nine months ended September 30, 2006 was $2,287,000, or $.14 per diluted share, compared to non-GAAP net income of $1,073,000, or $.07 per diluted share, for the corresponding 2005 period. Actual GAAP results for the nine months ended September 30, 2006, include a $14,421,000 reduction in the Company�s deferred tax valuation reserve, resulting in a net tax benefit of $13,735,000 for the nine months ended September 30, 2006. Actual GAAP results for the third quarter and nine months ended September 24, 2005 included an increase in the Company�s litigation reserve resulting in a pre-tax charge of $4,101,000. This increase in the litigation reserve reflected the jury verdict in a patent infringement case and the reversal on appeal of a summary judgment in favor of the Company in another patent infringement case. The Company�s appeal of the jury verdict is pending and it continues to vigorously defend the other patent infringement suit which has since returned to the trial level. The Company�s deferred tax valuation reserve was reduced effective July 1, 2006, and the GAAP results for the quarter and nine months ended September 30, 2006 include a third quarter 2006 tax provision reflecting an effective tax rate of approximately 41%. The 2006 non-GAAP results include a tax provision calculated as though the Company�s effective tax rate for the third quarter 2006 was applicable for all of the first nine months of 2006, while the 2005 non-GAAP results include a tax provision at approximately the same effective rate. The non-GAAP adjustments have been made to provide a basis for reviewing the Company�s operating performance on a consistent basis for all of the periods presented. John Aglialoro, Chairman and CEO, stated, �We are excited about our re-entry into the high-end consumer market with our recent introduction of our Consumer Arc Trainer. The Company is aggressively advancing our new product development pace and CYBEX is poised for an exciting new product line-up for 2007.� Cybex International, Inc. is a leading manufacturer of premium exercise equipment for commercial and consumer use. The CYBEX product line includes a full range of both strength training and cardio training machines sold worldwide under the CYBEX brand. Products and programs are designed and engineered to reflect the natural movement of the human body, assisting each unique user � from the professional athlete to the first-time exerciser � to improve daily human performance. For more information on CYBEX and its product line, please visit the Company�s website at www.cybexinternational.com. This news release may contain forward-looking statements. There are a number of risks and uncertainties that could cause actual results to differ materially from those anticipated by the statements made above. These include, but are not limited to, competitive factors, technological and product developments, market demand, economic conditions, the resolution of litigation involving the Company, and the ability of the Company to comply with the terms of its credit facilities. Further information on these and other factors which could affect the Company�s financial results can be found in the Company�s previously filed Report on Form 10-K, its Reports on Form 10-Q, its Current Reports on Form 8-K, and its proxy statement dated April 4, 2006. CYBEX INTERNATIONAL, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - ACTUAL (In thousands, except per share data) (unaudited) � Three Months Ended Nine Months Ended September 30, September 24, September 30, September 24, 2006� 2005� 2006� 2005� � Net sales $ 29,849� $ 26,690� $ 88,712� $ 78,646� Cost of sales � 19,269� � 17,143� � 56,719� � 50,593� Gross profit 10,580� 9,547� 31,993� 28,053� As a percentage of sales 35.4% 35.8% 36.1% 35.7% Selling, general and administrative expenses 9,052� 8,276� 26,973� 24,325� Litigation charges ? � 4,101� ? � 4,101� Operating income (loss) 1,528� (2,830) 5,020� (373) Interest expense, net � 150� � 679� � 1,163� � 1,894� Income (loss) before income taxes 1,378� (3,509) 3,857� (2,267) Income tax provision (benefit) � 561� � 26� � (13,735) � 111� Net income (loss) $ 817� $ (3,535) $ 17,592� $ (2,378) Basic net income (loss) per share $ .05� $ (.23) $ 1.09� $ (.16) Diluted net income (loss) per share $ .05� $ (.23) $ 1.05� $ (.16) Shares used in computing basic net income (loss) per share � 17,185� � 15,130� � 16,128� � 15,119� Shares used in computing diluted net income (loss) per share � 17,807� � 15,130� � 16,794� � 15,119� CYBEX INTERNATIONAL, INC. RECONCILIATION OF GAAP TO NON-GAAP RESULTS (In thousands, except per share data) (unaudited) � Three Months Ended Nine Months Ended September 30, 2006 September 24, 2005 September 30, 2006 September 24, 2005 � GAAP net income (loss) $ 817� $ (3,535) $ 17,592� $ (2,378) Adjustments Income tax provision ? (220) (15,305) (650) Litigation charges ? 4,101� ? 4,101� Non-GAAP net income $ 817� 346� $ 2,287� $ 1,073� Basic net income (loss) per share $ .05� $ (.23) $ 1.09� $ (.16) Adjustments ? .25� (.95) .23� Non-GAAP basic net income per share $ .05� $ .02� $ .14� $ .07� � Diluted net income (loss) per share $ .05� $(.23) $1.05� $(.16) Adjustments -� .25� (.91) .23� Non-GAAP diluted net income per share $ .05� $ .02� $ .14� $ .07� Shares used in computing basic net income per share 17,185� 15,130� 16,128� 15,119� Shares used in computing diluted net income per share 17,807� 15,715� 16,794� 15,710� CYBEX INTERNATIONAL, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (unaudited) September 30, 2006 December 31, 2005 � � ASSETS Current assets: Cash $ 2,327� $ 807� Accounts receivable, net 15,174� 18,320� Inventories 9,791� 9,258� Prepaid expenses and other 3,319� 2,707� Deferred tax asset � 4,140� � �� Total current assets 34,751� 31,092� Property and equipment, net 12,193� 12,124� Goodwill 11,247� 11,247� Deferred tax asset 9,699� �� Other assets � 1,277� � 1,209� $ 69,167� $ 55,672� � LIABILITIES AND STOCKHOLDERS� EQUITY Current liabilities: Current maturities of long-term debt $ �� $ 3,929� Current portion of capital leases 323� 481� Accounts payable 6,109� 5,918� Accrued expenses � 17,468� � 16,286� Total current liabilities 23,900� 26,614� Long-term debt �� 9,730� Capital leases, excluding current portion 120� 332� Other liabilities � 1,960� � 2,808� Total liabilities 25,980� 39,484� Stockholders� equity � 43,187� � 16,188� $ 69,167� $ 55,672� Cybex International, Inc. (AMEX: CYB), a leading exercise equipment manufacturer, today reported results for the third quarter ended September 30, 2006. Net sales for the third quarter 2006 were $29,849,000, compared to $26,690,000 for the third quarter 2005, an increase of 12%. On a GAAP basis, the Company reported net income for the third quarter of 2006 of $817,000, or $.05 per diluted share, compared to a net loss of $3,535,000, or $(.23) per diluted share, for the corresponding period of 2005. Excluding a third quarter 2005 litigation-related charge, and after an adjustment to the tax provision as described below, the Company's third quarter 2005 non-GAAP net income was $346,000, or $.02 per diluted share. For the nine months ended September 30, 2006, net sales were $88,712,000, compared to $78,646,000 for 2005, an increase of 13%. On a GAAP basis, the Company reported net income for the nine months ended September 30, 2006 of $17,592,000, or $1.05 per diluted share, compared to a net loss of $2,378,000, or $(.16) per diluted share, for the corresponding period of 2005. Excluding a second quarter 2006 reduction of the valuation reserve for deferred taxes and the third quarter 2005 litigation-related charge, and after adjustments to the Company's tax provision for each period as described below, the Company's non-GAAP net income for the nine months ended September 30, 2006 was $2,287,000, or $.14 per diluted share, compared to non-GAAP net income of $1,073,000, or $.07 per diluted share, for the corresponding 2005 period. Actual GAAP results for the nine months ended September 30, 2006, include a $14,421,000 reduction in the Company's deferred tax valuation reserve, resulting in a net tax benefit of $13,735,000 for the nine months ended September 30, 2006. Actual GAAP results for the third quarter and nine months ended September 24, 2005 included an increase in the Company's litigation reserve resulting in a pre-tax charge of $4,101,000. This increase in the litigation reserve reflected the jury verdict in a patent infringement case and the reversal on appeal of a summary judgment in favor of the Company in another patent infringement case. The Company's appeal of the jury verdict is pending and it continues to vigorously defend the other patent infringement suit which has since returned to the trial level. The Company's deferred tax valuation reserve was reduced effective July 1, 2006, and the GAAP results for the quarter and nine months ended September 30, 2006 include a third quarter 2006 tax provision reflecting an effective tax rate of approximately 41%. The 2006 non-GAAP results include a tax provision calculated as though the Company's effective tax rate for the third quarter 2006 was applicable for all of the first nine months of 2006, while the 2005 non-GAAP results include a tax provision at approximately the same effective rate. The non-GAAP adjustments have been made to provide a basis for reviewing the Company's operating performance on a consistent basis for all of the periods presented. John Aglialoro, Chairman and CEO, stated, "We are excited about our re-entry into the high-end consumer market with our recent introduction of our Consumer Arc Trainer. The Company is aggressively advancing our new product development pace and CYBEX is poised for an exciting new product line-up for 2007." Cybex International, Inc. is a leading manufacturer of premium exercise equipment for commercial and consumer use. The CYBEX product line includes a full range of both strength training and cardio training machines sold worldwide under the CYBEX brand. Products and programs are designed and engineered to reflect the natural movement of the human body, assisting each unique user - from the professional athlete to the first-time exerciser - to improve daily human performance. For more information on CYBEX and its product line, please visit the Company's website at www.cybexinternational.com. This news release may contain forward-looking statements. There are a number of risks and uncertainties that could cause actual results to differ materially from those anticipated by the statements made above. These include, but are not limited to, competitive factors, technological and product developments, market demand, economic conditions, the resolution of litigation involving the Company, and the ability of the Company to comply with the terms of its credit facilities. Further information on these and other factors which could affect the Company's financial results can be found in the Company's previously filed Report on Form 10-K, its Reports on Form 10-Q, its Current Reports on Form 8-K, and its proxy statement dated April 4, 2006. -0- *T CYBEX INTERNATIONAL, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - ACTUAL (In thousands, except per share data) (unaudited) Three Months Ended Nine Months Ended ------------------- ------------------- September September September September 30, 24, 30, 24, 2006 2005 2006 2005 --------- --------- --------- --------- Net sales $29,849 $26,690 $ 88,712 $78,646 Cost of sales 19,269 17,143 56,719 50,593 --------- --------- --------- --------- Gross profit 10,580 9,547 31,993 28,053 As a percentage of sales 35.4% 35.8% 36.1% 35.7% Selling, general and administrative expenses 9,052 8,276 26,973 24,325 Litigation charges ? 4,101 ? 4,101 --------- --------- --------- --------- Operating income (loss) 1,528 (2,830) 5,020 (373) Interest expense, net 150 679 1,163 1,894 --------- --------- --------- --------- Income (loss) before income taxes 1,378 (3,509) 3,857 (2,267) Income tax provision (benefit) 561 26 (13,735) 111 --------- --------- --------- --------- Net income (loss) $ 817 $(3,535) $ 17,592 $(2,378) ========= ========= ========= ========= Basic net income (loss) per share $ .05 $ (.23) $ 1.09 $ (.16) ========= ========= ========= ========= Diluted net income (loss) per share $ .05 $ (.23) $ 1.05 $ (.16) ========= ========= ========= ========= Shares used in computing basic net income (loss) per share 17,185 15,130 16,128 15,119 ========= ========= ========= ========= Shares used in computing diluted net income (loss) per share 17,807 15,130 16,794 15,119 ========= ========= ========= ========= *T -0- *T CYBEX INTERNATIONAL, INC. RECONCILIATION OF GAAP TO NON-GAAP RESULTS (In thousands, except per share data) (unaudited) Three Months Ended Nine Months Ended ------------------------ ----------------------- September 30, September September 30, September 2006 24, 2005 2006 24, 2005 -------------- --------- ------------- --------- GAAP net income (loss) $817 $(3,535) $17,592 $(2,378) Adjustments Income tax ? provision (220) (15,305) (650) Litigation ? ? charges 4,101 4,101 -------------- --------- ------------- --------- Non-GAAP net income $817 346 $2,287 $1,073 ============== ========= ============= ========= Basic net income (loss) per share $.05 $(.23) $1.09 $(.16) Adjustments ? .25 (.95) .23 -------------- --------- ------------- --------- Non-GAAP basic net income per share $.05 $.02 $.14 $.07 ============== ========= ============= ========= Diluted net income (loss) per share $.05 $(.23) $1.05 $(.16) Adjustments - .25 (.91) .23 -------------- --------- ------------- --------- Non-GAAP diluted net income per share $.05 $.02 $.14 $.07 ============== ========= ============= ========= Shares used in computing basic net income per share 17,185 15,130 16,128 15,119 ============== ========= ============= ========= Shares used in computing diluted net income per share 17,807 15,715 16,794 15,710 ============== ========= ============= ========= *T -0- *T CYBEX INTERNATIONAL, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (unaudited) September 30, December 31, 2006 2005 -------------- --------------- ASSETS Current assets: Cash $ 2,327 $ 807 Accounts receivable, net 15,174 18,320 Inventories 9,791 9,258 Prepaid expenses and other 3,319 2,707 Deferred tax asset 4,140 - -------------- --------------- Total current assets 34,751 31,092 Property and equipment, net 12,193 12,124 Goodwill 11,247 11,247 Deferred tax asset 9,699 - Other assets 1,277 1,209 -------------- --------------- $69,167 $55,672 ============== =============== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Current maturities of long-term debt $ - $ 3,929 Current portion of capital leases 323 481 Accounts payable 6,109 5,918 Accrued expenses 17,468 16,286 -------------- --------------- Total current liabilities 23,900 26,614 Long-term debt - 9,730 Capital leases, excluding current portion 120 332 Other liabilities 1,960 2,808 -------------- --------------- Total liabilities 25,980 39,484 Stockholders' equity 43,187 16,188 -------------- --------------- $69,167 $55,672 ============== =============== *T