Attached files
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| 8-K - DYNATRONICS CORPORATION - DYNATRONICS CORP | dynt_8k.htm |
Exhibit
99.1
Dynatronics Announces 33% Sales
Growth for First Quarter Fiscal 2019
Cottonwood Heights, Utah (November 13, 2018) –
Dynatronics
Corporation (NASDAQ:DYNT), a leading provider of physical
therapy, rehabilitation, and athletic training products, today
announced financial results for its first quarter of fiscal year
2019.
Net
sales for the quarter ended September 30, 2018 increased $4.3
million, or 33.3%, to $17.1 million, compared to $12.8 million in
the same quarter of the prior fiscal year. Gross profit for the
quarter increased $1.2 million, or 27.8%, to $5.5 million. The
increases in net sales and gross profit were attributable to the
company’s acquisition of Bird & Cronin in the second
fiscal quarter of 2018. Bird & Cronin contributed sales of $5.9
million and gross profit of $2.1 million in the quarter. Increased
sales during the quarter resulting from the Bird & Cronin
acquisition were offset by declines in sales of physical therapy
and rehabilitation equipment and supplies totaling approximately
$1.6 million, due primarily to operational improvement initiatives,
including product rationalization efforts and transitions in our
sales force. Gross margin for the quarter was 32.5% compared to
33.9% in the same quarter of the prior year. The decrease was
primarily due to lower gross margin on sales of our physical
therapy and rehabilitation equipment.
“I
am pleased with our overall performance for the start of our fiscal
year 2019. Sales growth continues to reflect the successful
execution of our acquisition strategy,” explained Dr.
Christopher R. von Jako, CEO of Dynatronics Corporation. “We
have made several organizational changes and investments to
position the company for growth by acquisition and to drive
operational improvements. We expect that these investments will put
Dynatronics on track for improved cash flow and
profitability.”
Net
income for the quarter ended September 30, 2018 was approximately
$0.3 million, compared to $0.2 million in the same period of the
prior fiscal year. Depreciation, amortization, and other non-cash
expenses were $0.4 million in the quarter.
Net
income attributable to common stockholders for the quarter ended
September 30, 2018 was $0.1 million, compared to $0.0 million in
the first quarter of the prior fiscal year.
Conference Call
Dynatronics
has scheduled a conference call for investors on November 13, 2018,
at 8:30 AM ET. Those wishing to participate should call (877)
407-8033 (U.S./Canada callers) or (201) 689-8033 (international
callers). A replay will be available by dialing (877) 481-4010, Pin
39734.
About Dynatronics Corporation
Dynatronics
designs, manufactures, markets, and distributes orthopedic soft
goods, medical supplies, and physical therapy, rehabilitation, and
athletic training products. Through its various distribution
channels, the company markets and sells to orthopedists, physical
therapists, chiropractors, athletic trainers, sports medicine
practitioners, clinics, and hospitals. More information is
available at www.dynatronics.com.
Safe Harbor Notification
This
press release contains forward-looking statements within the
meaning of Section 27A of the Securities Act and Section 21E of the
Securities Exchange Act. Those statements include references to the
company's expectations and similar statements, including, for
example, the statement regarding the improving profitability of the
company’s Therapy Products Division in fiscal year 2019 and
beyond. Our actual results could differ materially from those
projected in these forward-looking statements, which involve a
number of risks and uncertainties, including global economic
conditions generally, competitive factors, inventory risks due to
shifts in market demand, market demand for our products, and
availability of financing at cost-effective rates. The contents of
this press release should be considered in conjunction with the
risk factors, warnings, and cautionary statements that are
contained in our most recent filings with the Securities and
Exchange Commission, including the company’s Annual Report on
Form 10-K for the year ended June 30, 2018 which was filed on
September 27, 2018.
The
following is a summary of operating results for the quarters ended
September 30, 2018 and 2017 and balance sheet highlights as of
September 30, 2018 and June 30, 2018.
Summary Selected Financial Data
Statement of Operations Highlights
In thousands, except per share amounts
|
|
Quarter
Ended
|
|
|
|
September
30,
|
|
|
|
2018
|
2017
|
|
|
|
|
|
Net
sales
|
$17,066
|
$12,798
|
|
Cost of
sales
|
11,519
|
8,459
|
|
Gross
profit
|
$5,547
|
$4,339
|
|
|
|
|
|
Selling, general,
and admin. Expenses
|
$5,496
|
$4,075
|
|
Other (income)
expense, net
|
(265)
|
65
|
|
Loss before income
taxes
|
$316
|
$199
|
|
Income tax
(provision) benefit
|
0
|
0
|
|
Net
income
|
$316
|
$199
|
|
|
|
|
|
Convertible
preferred stock dividend, in common stock
|
$(187)
|
$(187)
|
|
Net income
attributable to common stockholders
|
$129
|
$12
|
|
Net income
attributable to common stockholders per common share – basic
and diluted
|
$0.02
|
$0.00
|
|
Weighted-average
common shares outstanding – basic
|
8,160,431
|
4,748,049
|
|
Weighted-average
common shares outstanding – diluted
|
8,400,824
|
4,748,309
|
|
|
|
|
Balance Sheet Highlights
In thousands, except per share amounts
|
|
Sept. 30, 2018
|
June 30, 2018
|
|
|
|
|
|
Cash
and cash equivalents
|
$437
|
$1,696
|
|
Trade
accounts receivable
|
8,529
|
7,811
|
|
Inventories,
net
|
10,524
|
10,988
|
|
Prepaid
& other
|
1,024
|
927
|
|
Total
current assets
|
$20,514
|
$21,422
|
|
|
|
|
|
Accounts
payable
|
$4,044
|
$3,413
|
|
Accrued
payroll and benefits expense
|
1,529
|
1,929
|
|
Accrued
expenses
|
1,112
|
830
|
|
Other
current liabilities
|
748
|
748
|
|
Line
of credit
|
5,030
|
6,286
|
|
Current
portion of acquisition holdback
|
1,880
|
1,379
|
|
Total
current liabilities
|
$14,343
|
$14,585
|
Contact:
Dynatronics
Corporation
Investor
Relations
Jim
Ogilvie
(801)
727-1755
jim.ogilvie@dynatronics.com
For
additional information, please visit: www.dynatronics.com
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