Attached files
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| EX-99.2 - PRESENTATION - DYNATRONICS CORP | dyntq2conferencecallslide.htm |
| 8-K - CURRENT REPORT - DYNATRONICS CORP | dyna_8k.htm |
Exhibit 99.1
Dynatronics Reports Second Quarter Results
Eagan, MN (February 11, 2021) – 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 2021 for the period ended December 31, 2020.
Fiscal Q2 2021 Financial Highlights
●
Net sales of $12
million were steady with net sales of $12 million in the prior
quarter
●
Selling, general,
and administrative expenses of $3.9 million were 7% lower compared
to the prior quarter
●
Generated $1.5
million in positive operating cash flow, representing 34% gain over
the prior quarter
●
Zero balance on our
line of credit and a borrowing base of approximately $5.4 million
as of the end of Fiscal Q2 2021
Subsequent to the Quarter’s End
●
Announced launch of
two new Hausmann tables with initial orders
●
Received
notification from NASDAQ that DYNT shares have regained compliance
with minimum bid price listing requirements
CEO Commentary
“Over
the last two quarters, we have taken a number of decisive actions
to stabilize and strengthen our business to take advantage of the
growth markets we serve,” said John Krier, President and CEO
of Dynatronics Corporation. “We generated over $1 million in
operating cash flow for the second consecutive quarter, reduced our
operating expenses, and added top-notch leadership experience to
the team. We introduced two new products in January, and we expect
additional product launches focusing on our growth
markets.”
“Our
fiscal year 2021 second quarter results reflect continued
challenges due to COVID-19, including customers operating with
reduced capacity and operating hours, higher delivery and shipment
costs and extended handling times. Despite these challenges, we are
excited to transition the company to a more stable and predictable
financial model that better leverages our brands and our customer
base as it takes advantage of growth opportunities. We are
expecting some continued volatility ahead as we optimize the
business to emphasize higher margins and stable cash flow
generation,” concluded Mr. Krier.
Financial Review
Net
sales for the quarter ended December 31, 2020 were $12.0 million, a
decrease of $3.2 million, or 21%, compared to $15.2 million in the
same period of the prior year. Gross profit decreased $1.2 million,
or 27%, to $3.3 million, or 28% of net sales. The decrease in net
sales and gross profit were primarily attributable to COVID-19
precautions and associated impacts of the pandemic on changes to
the mix of sales driven by changes in elective procedures. Gross
margin for the quarter was 27.9% compared to 30.2% in the same
period of the prior year.
Net
loss for the quarter ended December 31, 2020 was approximately $0.7
million, compared to a net loss of $0.1 million for the same
quarter of the prior fiscal year. The company experienced positive
cash flow from operating activities of $1.5 million in the second
quarter of fiscal year 2021.
Outlook
Due to
continued uncertainty resulting from the ongoing COVID-19 pandemic,
Dynatronics will not provide guidance for fiscal year
2021.
Conference Call
Dynatronicswill
hold a conference call for investors on February 11, 2021 at 8:30
AM ET to discuss the results. Interested persons may access the
live call by dialing 888-506-0062 (U.S./Canada callers) or
973-528-0011 (international callers). It is recommended that
participants call or log on 10 minutes ahead of the scheduled start
time to ensure proper connection. Accompanying slides will be
available with webcast registration or on the Dynatronics website
in the investor relations section.
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®, Dynatron
Solaris®, Hausmann™, Physician’s
Choice®,
and PROTEAM™, among others. More information is available at
www.dynatronics.com.
Forward Looking Statements
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 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.
Summary Financial Results
Following
is a summary of operating results for the periods ended December
31, 2020 and 2019, the balance sheet highlights at December 31,
2020 and June 30, 2020 and the operating cash flow for quarters
ended December 31, 2020 and 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,
|
||
|
|
2020
|
2019
|
2020
|
2019
|
|
|
|
|
|
|
|
Net
sales
|
$11,968
|
$15,197
|
$24,101
|
$31,587
|
|
Cost
of sales
|
8,627
|
10,611
|
16,858
|
21,847
|
|
Gross
profit
|
3,341
|
4,586
|
7,243
|
9,740
|
|
|
27.9%
|
30.2%
|
30.1%
|
30.8%
|
|
Selling,
general, and admin. expenses
|
3,938
|
4,618
|
8,183
|
9,543
|
|
Other
(expense) income, net
|
(66)
|
(105)
|
(100)
|
(236)
|
|
Income
tax provision
|
(10)
|
-
|
(10)
|
-
|
|
Net
loss
|
$(673)
|
$(137)
|
$(1,050)
|
$(39)
|
|
|
|
|
|
|
|
Deemed
dividend on convertible preferred stock and accretion of
discount
|
(51)
|
(109)
|
(51)
|
(109)
|
|
Convertible
preferred stock dividend, in common stock
|
(182)
|
(202)
|
(376)
|
(369)
|
|
Net
loss attributable to common stockholders
|
$(906)
|
$(448)
|
$(1,477)
|
$(517)
|
|
|
|
|
|
|
|
Net
loss attributable to common stockholders per common share - basic
and diluted
|
$(0.06)
|
$(0.05)
|
$(0.10)
|
$(0.06)
|
|
Weighted-average
common shares outstanding - basic and diluted
|
14,601,186
|
9,023,406
|
14,340,774
|
8,800,184
|
|
Balance Sheet Highlights
|
||
|
In thousands
|
||
|
|
|
|
|
|
December 31,
2020
|
June 30,
2020
|
|
Cash
and cash equivalents
|
$3,610
|
$2,316
|
|
Trade
accounts receivable, net
|
5,068
|
4,894
|
|
Inventories,
net
|
6,141
|
8,372
|
|
Prepaid
& other
|
3,297
|
493
|
|
Total
current assets
|
$18,116
|
$16,075
|
|
|
|
|
|
Accounts
payable
|
$4,827
|
$3,014
|
|
Accrued
payroll and benefits expense
|
1,476
|
1,205
|
|
Accrued
expenses
|
1,372
|
768
|
|
Other
current liabilities
|
3,345
|
1,679
|
|
Line
of credit
|
-
|
1,013
|
|
Total
current liabilities
|
$11,020
|
$7,679
|
|
Operating
Cash Flow Highlights
|
||||
|
In thousands
|
||||
|
|
|
|
|
|
|
|
Quarter Ended
|
Six Months Ended
|
||
|
|
December 31,
|
December 31,
|
||
|
|
2020
|
2019
|
2020
|
2019
|
|
|
|
|
|
|
|
Net
loss
|
$(673)
|
$(138)
|
$(1,051)
|
$(39)
|
|
|
|
|
|
|
|
Depreciation
and amortization
|
368
|
400
|
756
|
802
|
|
Stock
based compensation
|
51
|
58
|
98
|
188
|
|
|
|
|
|
|
|
Receivables
|
541
|
315
|
(174)
|
507
|
|
Inventory
|
(237)
|
(254)
|
986
|
144
|
|
Prepaid
and other assets
|
(361)
|
(103)
|
(681)
|
(118)
|
|
Accounts
payable, accrued expenses, and other liabilities
|
1,818
|
646
|
2,698
|
1,432
|
|
Net
cash provided by operating activities
|
$1,507
|
$924
|
$2,632
|
$2,916
|
Contact:
Dynatronics
Corporation
Investor
Relations
Skyler
Black
(801)
676-7201
skyler.black@dynatronics.com
Darrow
Associates
Peter
Seltzberg, Managing Director
(516)
419-9915
pseltzberg@darrowir.com
For
additional information, please visit: www.dynatronics.com
Connect
with Dynatronics on LinkedIn