Dynatronics' Second Quarter Profits Jump 204%

13 Feb, 2013, 08:10 ET from Dynatronics Corporation

SALT LAKE CITY, Feb. 13, 2013 /PRNewswire/ -- Dynatronics Corporation (NASDAQ: DYNT) today announced results for its fiscal second quarter and six months ended December 31, 2012.

Net income for the quarter ended December 31, 2012, tripled to $140,983 ($.06 per common share), compared to $46,334 ($.02 per common share) for the same quarter in the prior fiscal year.  Net income for the six months ended December 31, 2012, increased to $89,839 ($.04 per common share), compared to a net loss of $21,926 ($.01 per common share) for the same period in the prior fiscal year.

Sales for the fiscal second quarter ended December 31, 2012, declined 3.3 percent to $7,998,319, compared to $8,275,430 for the quarter ended December 31, 2011.  Sales for the six months ended December 31, 2012, declined 6.6 percent to $15,204,345, compared to $16,272,232 for the six months ended December 31, 2011. In addition to generally sluggish demand for capital equipment, the decrease in sales during the three and six months ended December 31, 2012 is due in part to one large customer discontinuing operations in early 2012 and a manufacturer who limited the availability of its products for distribution.

"The 204 percent jump in net profit for the quarter ended December 31, 2012, resulted from the introduction of the new SolarisPlus product line, together with our strategy to effectively reduce expenses and improve operating efficiencies," said Kelvyn H. Cullimore Jr., chairman and president of Dynatronics. "During the reporting quarter and six months ended December 31, 2012, we reduced our SG&A and R&D costs by approximately $259,600 and $585,400 respectively by implementing a cost reduction program to optimize our operations."

For three decades, Dynatronics has been a leader in innovation in the physical medicine marketplace.  The Company expects the introduction of a record number of new products during the current fiscal year, including the popular SolarisPlus product line introduced in August 2012, will enable it to attract additional qualified sales representatives and dealers allowing for better market penetration and increased sales of the Company's higher margin proprietary products. 

"Our strategy of introducing new products includes expanding the new technology platform developed for SolarisPlus, which will allow additional new products to be developed quickly and inexpensively," added Cullimore.  "In addition, other technologies and products are being developed which will complement our popular line of therapy device products.  We believe this strategy will enhance our growth potential and help us reach our performance goals for fiscal years 2013 and 2014."

Dynatronics has scheduled a conference call for investors on Wednesday, February 13, 2013, at 3:00 p.m. ET. Those wishing to participate should call (800) 616-4707.

The following is a summary of the financial results as of December 31, 2012 and 2011, and for the three- and six-month periods then ended:  

                                                                                  

Summary Selected Financial Data

Statement of Operations Highlights

Three Months Ended

Six Months Ended

December 31,

December 31,

2012

2011

2012

2011

Net sales 

$

7,998,319

$

8,275,430

$

15,204,345

$

16,272,232

Cost of sales 

4,899,404

5,062,472

9,394,582

10,057,176

Gross profit

3,098,915

3,212,958

5,809,763

6,215,056

SG&A expenses 

2,565,282

2,686,401

5,024,386

5,381,268

R&D expenses

274,379

412,861

540,646

769,208

Other expenses, net 

59,111

41,517

118,196

98,330

Net income (loss) before income    tax (benefit) provision

200,143

72,179

126,535

(33,750)

Income tax benefit (provision) 

(59,160)

(25,845)

(36,696)

11,824

Net income (loss) 

$

140,983

$

46,334

$

89,839

$

(21,926)

Diluted net income (loss) per common share

$

0.06

$

0.02

$

0.04

$

(0.01)

                                                                          

                                                                         

Balance Sheet Highlights

December 31,

June 30,

2012

2012

Cash 

$

405,189

$

278,263

Accounts receivable 

3,764,702

3,667,086

Inventories

6,092,707

6,098,597

Total current assets 

11,041,737

10,654,158

Total assets 

15,367,807

15,270,930

Accounts payable 

2,245,329

2,413,201

Accrued expenses 

425,663

386,229

Line of credit 

3,792,869

3,497,597

Total current liabilities 

7,264,958

7,088,300

Total liabilities

8,963,606

9,004,615

Total liabilities and equity 

15,367,807

15,270,930

 

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



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