Dynatronics Announces Fourth Quarter and Year-End Results

SALT LAKE CITY, Sept. 28, 2012 /PRNewswire/ -- Dynatronics Corporation (NASDAQ: DYNT) today announced results for its fiscal fourth quarter and year ended June 30, 2012.

Net income for the quarter ended June 30, 2012, increased to $115,954 ($.01 per common share), compared to net income of $68,776 ($.01 per common share) for the same quarter in the prior fiscal year. Net loss for the year ended June 30, 2012, was $23,535 ($.00 per common share), compared to net income of $270,888 ($.02 per common share) for the year ended June 30, 2011.

Sales for the fiscal fourth quarter ended June 30, 2012, declined 5.5 percent to $7,738,363, compared to $8,190,383 for the quarter ended June 30, 2011. Sales for the year ended June 30, 2012, were $31,664,181, compared to $32,692,859 for the year ended June 30, 2011 representing a 3.1 percent decline.  

"Fourth quarter profits improved despite a weakness in top-line sales," said Kelvyn H. Cullimore Jr., chairman and president of Dynatronics. "We were successful in reducing both SG&A and R&D costs to compensate for the sluggish markets we have been facing over the past three years.  These operating improvements, combined with an income tax benefit related to R&D tax credits recorded during the fourth fiscal quarter, resulted in a net profit of $115,954 for the fourth quarter which was a significant turnaround from the net loss of $117,563 in the third quarter.  Given ongoing economic weakness that was more pronounced in the last six months of the fiscal year, we have implemented strategies to help move the company forward despite such general economic concerns."

To combat the challenging economic trends, the company's strategic plan calls for the introduction of a record number of new products to spur interest in our most profitable segment of capital equipment and to position the company for growth. 

"With last week's introduction of the SolarisPlus line of products, we are beginning to see renewed excitement among the sales force and increased interest in capital equipment purchases by customers," Cullimore continued. "This new line of electrotherapy, ultrasound and light therapy units represents our premier line of combination therapy devices and is attracting solid attention among practitioners. Not only are these units the most powerful we have ever developed, but they offer the greatest flexibility for practitioners to treat their patients."

"Since introducing the SolarisPlus devices, demand for capital equipment appears to be picking up," stated Larry K. Beardall, executive vice president of sales and marketing. "We fully expect that the record number of new products being introduced this year will help boost sales even in the face of a flagging economy."

The company plans to introduce additional new products over the coming months and is nearing the completion of its 2013 - 2014 product catalog, which will feature a number of new distributed medical supplies for practitioners.

"We believe that our strategy of introducing new products, combined with our cost reduction program and continued effort with large national accounts, will enable our company to improve its financial results and increase market share," concluded Cullimore.

Dynatronics has scheduled a conference call for investors on Friday, September 28, 2012, at 4:30 p.m. ET. Those wishing to participate should call (800) 616-7436.

The following is a summary of the financial results as of June 30, 2012 and 2011, and for the three-month period and year then ended:  

Summary Selected Financial Data

Statement of Operations Highlights







 

Three Months Ended

Year Ended


June 30, 

June 30,


2012

2011

2012

2011






Net sales                          

$ 7,738,363

$ 8,190,383

$ 31,664,181

$ 32,692,859

Cost of sales                    

4,855,143

5,051,225

19,720,948

20,208,035

   Gross profit                    

2,883,220

3,139,158

11,943,233

12,484,824

SG&A expenses             

2,457,325

2,656,615

10,506,460

10,431,463

R&D expenses                  

279,286

338,138

1,410,406

1,383,712

Other expenses, net              

57,660

63,156

216,608

250,785

   Net income (loss) before income





       tax (benefit) provision           

88,949

81,249

(190,241)

418,864






Income tax benefit (provision)       

27,005

(12,473)

166,706

(147,976)






Net income (loss)           

$      115,954

$    68,776

$   (23,535)

$   270,888

Diluted net income (loss)





per common share          

$           0.01

$         0.01

$        (0.00)

$         0.02

 

Balance Sheet Highlights



June 30,

June 30,


2012

2011




            Cash                                                         

$     278,263

$      384,904

              Accounts receivable                                     

3,667,086

3,672,128

            Inventories                                                   

6,098,597

5,647,815

            Total current assets                                     

10,654,158

10,432,811

            Total assets                                                   

15,270,930

14,819,181


            Accounts payable                                          

2,413,201

2,127,163

            Accrued expenses                                             

386,229

379,336

            Line of credit                                                 

3,497,597

2,583,937

            Total current liabilities                                    

7,088,300

5,880,080

            Total liabilities                                                

9,004,615

8,204,022

            Total liabilities and equity                            

15,270,930

14,819,181

 

Dynatronics manufactures, markets and distributes advanced-technology medical devices, orthopedic soft goods and supplies, treatment tables and rehabilitation equipment for the physical therapy, sports medicine, chiropractic, podiatry, plastic surgery, dermatology and other related medical, cosmetic and aesthetic markets. More information regarding Dynatronics is available at www.dynatronics.com.

This press release contains forward-looking statements. Those statements include references to the company's expectations and similar statements such as the statement regarding expectations for future new product line introductions and growth. Actual results may vary from the views expressed in the forward-looking statements contained in this release. The development and sale of the company's products are subject to a number of risks and uncertainties, including, but not limited to, changes in the regulatory environment, competitive factors, inventory risks due to shifts in market demand, market demand for the company's products, availability of financing at cost-effective rates, and the risk factors listed from time to time in the company's SEC reports.

SOURCE Dynatronics Corporation



RELATED LINKS
http://www.dynatronics.com

More by this Source


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.