Attached files
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| 8-K - CURRENT REPORT - DYNATRONICS CORP | dynt_8k.htm |
Exhibit
99.1
Dynatronics Reports Second Quarter Results for Fiscal
2020
Cottonwood Heights, Utah (February 11, 2020) –
Dynatronics
Corporation (NASDAQ:DYNT), a leading manufacturer of
athletic training, physical therapy, and rehabilitation products,
today announced financial results for its second quarter of fiscal
year 2020.
Recent Financial and Business Highlights:
●
$15.2 million in
net sales for the second quarter of fiscal year 2020
●
$155,000 reduction
in selling, general, and administrative expenses
●
$61,000 improvement
in operating profitability
●
$924,000 positive
cash flow from operating activities
“Dynatronics
achieved its sales goals across all brands, delivered back-to-back
quarters of improved operating profitability, and continued to
generate positive cash flow from operations,” explained Brian
Baker, President and CEO of Dynatronics Corporation. “Our
execution to the operating plan continues to achieve positive
results. In the coming months, we will continue to drive
operational changes that should reduce cost, improve profitability,
increase operating cash flow, and position us well for the next
fiscal year.”
Fiscal 2020 First Quarter Financial Results
Net
sales for the quarter ended December 31, 2019 were $15.2 million, a
decrease of $243,000, or 1.6%, compared to $15.4 million in the
same period of the prior year. Gross profit for the quarter
decreased $94,000, or 2.0%, to $4.6 million. The decrease in net
sales and gross profit were primarily attributable to lower sales
of physical therapy and rehabilitation products. Gross margin for
the quarter was 30.2% compared to 30.3% in the same period of the
prior year.
Net
loss for the quarter ended December 31, 2019 was approximately
$137,000, compared to a net loss of $441,000 for the same quarter
of the prior fiscal year. Depreciation, amortization, and other
non-cash expenses were $447,000 in the second quarter of fiscal
2020.
2020 Financial Outlook
The
Company also narrowed its sales guidance for the fiscal year ending
June 30, 2020.
Dynatronics expects
net sales for fiscal year 2020 to be in the range of $59 million to
$61 million, with gross margin of approximately 31%, and selling,
general, and administrative expense of approximately 31%, including
approximately $1.8 million in non-cash charges. We expect the
distribution of sales between quarters to align with historical
trends.
The
Company’s financial guidance for 2020 is subject to the risks
identified in our Safe Harbor Notification below.
Conference Call
Dynatronics
has scheduled a conference call for investors on February 11, 2020,
at 8:30 AM ET. Those wishing to participate should call (844)
602-0380 (U.S./Canada callers) or (862) 298-0970 (international
callers). A replay will be available by dialing (877) 481-4010, Pin
57028.
About Dynatronics Corporation
Dynatronics
is a leading medical device company committed to providing
high-quality restorative products designed to accelerate achieving
optimal health. The company designs, manufactures, and sells a
broad range of products for clinical use in physical therapy,
rehabilitation, pain management, and athletic training. Through its
distribution channels, Dynatronics markets and sells to
orthopedists, physical therapists, chiropractors, athletic
trainers, sports medicine practitioners, clinics, hospitals, and
consumers. The company products are marketed under a portfolio of
high-quality, well-known industry brands including Bird &
Cronin®,
Solaris™, Hausmann™,
Physician’s Choice®, and
PROTEAM™, among others. 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. Such
forward-looking statements reflect the views of management at the
time such statements are made. These statements include our
financial guidance, including our expected revenues, gross profit,
and selling, general, and administrative expenses. These
forward-looking statements are subject to a number of risks,
uncertainties, estimates, and assumptions that may cause actual
results to differ materially from current expectations. The
contents of this release should be considered in conjunction with
the risk factors, warnings, and cautionary statements that are
contained in the company’s most recent filings with the
Securities and Exchange Commission, including the company’s
Annual Report on Form 10-K for the fiscal year ended June 30,
2019, which was filed on September 25, 2019. Dynatronics does not
undertake to update its forward-looking statements, whether as a
result of new information, future events, or
otherwise.
Summary Financial Results
The
following is a summary of operating results for the quarters and
six months ended December 31, 2019 and December 31, 2018 and
balance sheet highlights as of December 31, 2019 and June 30,
2019.
Summary Selected Financial Data
Statement of Operation Highlights
In thousands, except share and per share amounts
|
|
Quarter
Ended
|
Six Months
Ended
|
||
|
|
December
31,
|
December
31,
|
||
|
|
2019
|
2018
|
2019
|
2018
|
|
|
|
|
|
|
|
Net
sales
|
$15,197
|
$15,440
|
$31,587
|
$32,506
|
|
Cost of
sales
|
10,611
|
10,760
|
21,847
|
22,279
|
|
Gross
profit
|
4,586
|
4,680
|
9,740
|
10,227
|
|
|
|
|
|
|
|
Selling, general,
and admin. expenses
|
4,618
|
4,773
|
9,543
|
10,269
|
|
Other (expense)
income, net
|
(105)
|
(144)
|
(236)
|
121
|
|
Income tax
provision
|
-
|
(204)
|
-
|
(204)
|
|
Net
loss
|
(137)
|
(441)
|
(39)
|
(125)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deemed dividend on
convertible preferred stock and accretion of discount
|
(109)
|
-
|
(109)
|
-
|
|
Convertible
preferred stock dividend, in common stock
|
(202)
|
(203)
|
(369)
|
(390)
|
|
Net loss
attributable to common stockholders
|
$(448)
|
$(644)
|
$(517)
|
$(515)
|
|
Net loss
attributable to common stockholders per common share – basic
and diluted
|
$(0.05)
|
$(0.08)
|
$(0.06)
|
$(0.06)
|
|
Weighted-average
common shares outstanding – basic and diluted
|
9,023,406
|
8,193,324
|
8,800,184
|
8,176,877
|
Balance Sheet Highlights
In thousands
|
|
Dec. 31,
2019
|
June 30,
2019
|
|
|
|
|
|
Cash, cash
equivalents, and restricted cash
|
$532
|
$256
|
|
Trade accounts
receivable, net
|
6,940
|
7,495
|
|
Inventories,
net
|
11,384
|
11,528
|
|
Prepaid &
other
|
793
|
635
|
|
Total
current assets
|
$19,649
|
$19,914
|
|
|
|
|
|
Accounts
payable
|
$5,970
|
$3,990
|
|
Accrued payroll and
benefits expense
|
1,112
|
1,373
|
|
Accrued
expenses
|
758
|
1,039
|
|
Other current
liabilities
|
1,739
|
833
|
|
Line of
credit
|
4,819
|
6,540
|
|
Current portion of
acquisition earn-out liability
|
-
|
500
|
|
Total
current liabilities
|
$14,398
|
$14,275
|
Contact:
Dynatronics
Corporation
Investor
Relations
Skyler
Black
(801)
676-7201
skyler.black@dynatronics.com
For
additional information, please visit: www.dynatronics.com
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