Attached files
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| 8-K - CURRENT REPORT - DYNATRONICS CORP | dynt_8k.htm |
Exhibit 99.1
Dynatronics Reports Fourth Quarter
and Fiscal Year End 2020 Results
Eagan, MN (September 24, 2020) – Dynatronics
Corporation (NASDAQ:DYNT), a leading manufacturer of
athletic training, physical therapy, and rehabilitation products,
today announced financial results for its fourth quarter and fiscal
year ended June 30, 2020.
“Our
fourth quarter and year ending results were negatively impacted by
COVID-19, but our team continues to improve operational
effectiveness in an effort to leverage our expense structure and
manage working capital,” stated John Krier, CEO of
Dynatronics Corporation. “Despite a revenue decrease for
fiscal year 2020, we are taking decisive actions to prepare the
Company for future growth opportunities.”
Fiscal 2020 Fourth Quarter Financial Results
Net
sales for the quarter ended June 30, 2020 were $8.1 million, a
decrease of $7.4 million, or 47.7%, compared to $15.5 million in
the same period of the prior year. Gross profit for the quarter
decreased $3.1 million, or 68.9%, to $1.4 million. The decrease in
net sales and gross profit were primarily attributable to
stay-at-home policies and government restrictions in response to
the COVID-19 pandemic. Gross margin for the quarter was 17.4%
compared to 29.3% in the same period of the prior
year.
Net
loss for the quarter ended June 30, 2020 was approximately $2.3
million, compared to a net loss of $232,000 for the same quarter of
the prior fiscal year. Depreciation, amortization, and other
non-cash expenses were $1.0 million and the Company generated
positive cash flow from operating activities of $541,000 in the
fourth quarter of fiscal 2020.
Fiscal Year 2020 Financial Results
Net
sales for the year were $53.4 million, a decrease of $9.2 million,
or 14.6%, compared to $62.6 million in the same period of the prior
year. Gross profit for the year decreased $4.1 million, or 21.3%,
to $15.1 million. The decrease in net sales and gross profit were
primarily attributable to stay-at-home policies and government
restrictions in response to the COVID-19 pandemic, as well as the
continued decline in physical therapy and rehabilitation product
sales. Gross margin for the year was 28.3% compared to 30.6% in the
same period of the prior year. The decrease in gross margin
percentage was primarily due to lower sales.
1
Net
loss for the year ended June 30, 2020 was approximately $3.4
million, compared to a net loss of $921,000 for the year ended June
30, 2019. Depreciation, amortization, and other non-cash expenses
were $2.5 million and the Company generated positive cash flow from
operating activities of $3.1 million for the year.
Fiscal Year 2021 Financial Outlook
We have
experienced continued positive revenue momentum in fiscal year
2021. July and August 2020 net sales are approximately 60-70%
compared to the same period in fiscal year 2020.
The
Company will not be providing financial guidance for the fiscal
year 2021.
Conference Call
Dynatronics
has scheduled a conference call for investors on September 24,
2020, at 8:30 AM ET. Those wishing to participate should call (844)
369-8770 (U.S./Canada callers) or (862) 298-0840 (international
callers). A replay will be available through October 1, 2020, by
dialing (877) 481-4010, Pin 36825.
About Dynatronics Corporation
Dynatronics
Corporation 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’s 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
references to our financial guidance, 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 including
uncertainties involving the impact of the COVID-19
pandemic. 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, 2020, which was filed on September 24, 2020.
Dynatronics does not undertake to update its forward-looking
statements, whether as a result of new information, future events,
or otherwise.
2
Summary Financial Results
The
following is a summary of operating results for the quarters and
years ended June 30, 2020 and 2019, and balance sheet highlights as
of June 30, 2020 and 2019.
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Summary Selected Financial Data
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Statements of Operation Highlights
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In thousands, except share and per share amounts
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Quarter Ended
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Year Ended
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June 30,
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June 30,
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2020
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2019
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2020
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2019
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Net
sales
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$8,116
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$15,508
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$53,409
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$62,565
|
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Cost
of sales
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6,702
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10,966
|
38,311
|
43,391
|
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Gross
profit
|
1,414
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4,542
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15,098
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19,174
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|
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|
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Selling,
general, and admin. expenses
|
3,641
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4,883
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18,091
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19,970
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Other
(expense) income, net
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(78)
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(123)
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(442)
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(120)
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Income
tax benefit (provision)
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10
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232
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10
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(5)
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Net
loss
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(2,295)
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(232)
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(3,425)
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(921)
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|
|
|
|
|
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Deemed
dividend on convertible preferred stock and accretion of
discount
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-
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-
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(174)
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-
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Convertible
preferred stock dividend, in common stock
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(180)
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(209)
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(718)
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(795)
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Net
loss attributable to common stockholders
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$(2,475)
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$(441)
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$(4,317)
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$(1,716)
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Net
loss attributable to common stockholders per common share - basic
and diluted
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$(0.18)
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$(0.05)
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$(0.42)
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$(0.21)
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Weighted-average
common shares outstanding - basic and diluted
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13,461,148
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8,509,207
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10,262,769
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8,246,188
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Balance Sheet Highlights
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In thousands
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June 30,
2020
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June 30,
2019
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Cash,
cash equivalents, and restricted cash
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$2,316
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$256
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Trade
accounts receivable, net
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4,894
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7,495
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Inventories,
net
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8,372
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11,528
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Prepaid
& other
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493
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635
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Total
current assets
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$16,075
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$19,914
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|
|
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Accounts
payable
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$3,014
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$3,990
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Accrued
payroll and benefits expense
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1,205
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1,373
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Accrued
expenses
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768
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1,039
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Other
current liabilities
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1,679
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833
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Line
of credit
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1,013
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6,540
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Current
portion of acquisition earn-out liability
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0
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500
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Total
current liabilities
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$7,679
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$14,275
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3