Dynatronics Announces Promising First Quarter Financial Results
SALT LAKE CITY, Nov. 14, 2014 /PRNewswire/ -- Dynatronics Corporation (NASDAQ: DYNT) today announced results for its fiscal first quarter ended September 30, 2014.
Net sales in the quarter increased 2.3 percent to $7,216,324, compared to $7,055,428 in the same period of the prior year. Net income for the quarter was $40,923 ($.02 per common share), compared to a net loss of $107,784 ($.04 per common share) for the quarter ended September 30, 2013.
"These are welcome figures," stated Kelvyn H. Cullimore Jr., chairman and president of Dynatronics. "Increased sales of our top-selling SolarisPlus therapy devices and ThermoStim probe pushed sales and profits higher. While the sales gain this quarter is modest, it should be noted that it's the first quarter since the quarter ended December 31, 2011, that we posted a quarter-over-quarter increase in sales.
"Market conditions began to improve in June 2014 and continued through the quarter ended September 30, 2014," Cullimore continued. "In addition, management has undertaken efforts to reduce expenses, expand our distribution channels by adding several new dealers and sales representatives, and emphasize sales of the new Dynatron ThermoStim Probe and other new products. Thanks to these changes, the company generated a $224,995 improvement in pre-tax profit – from a $168,509 pre-tax loss last year to a $56,486 pre-tax profit this year."
"Sales to Amerinet clients are growing at a double-digit rate," added Larry K. Beardall, executive vice president of sales and marketing. "Amerinet is one of the five largest group purchasing organizations, or GPOs, in the United States. The three-year agreement with Amerinet became effective July 1, 2014."
Dynatronics also reported the August 8, 2014, sale of the land and building that currently houses its operations in Utah. The company is leasing back the premises. Net proceeds from the sale, after paying taxes and related selling costs, were used to reduce debt by $2.7 million and will allow Dynatronics to utilize its deferred tax assets.
"We are encouraged by the improving market conditions and the progress on sales growth after so many quarters of sales decline. The belt tightening of the past 30 months has resulted in significant reductions in overhead costs and has helped position us to realize higher profits as sales continue to grow. We believe the market trends are improving and our future is much more optimistic," concluded Cullimore.
Dynatronics has scheduled a conference call for investors on Friday, November 14, 2014, at 1:30 p.m. ET. Those wishing to participate should call (800) 753-4387.
The following is a summary of the financial results as of September 30, 2014 and 2013, and for the quarter then ended:
| Summary Selected Financial Data Statement of Operations Highlights |
||||||
| Three Months Ended |
||||||
| September 30 |
||||||
| 2014 |
2013 |
|||||
| Net sales |
$ 7,216,324 |
$ 7,055,428 |
||||
| Cost of sales |
4,648,752 |
4,474,359 |
||||
| Gross profit |
2,567,572 |
2,581,069 |
||||
| Selling, general, and admin. expenses |
2,251,629 |
2,379,369 |
||||
| Research and development expenses |
216,827 |
314,823 |
||||
| Other expense, net |
42,630 |
55,386 |
||||
| Income (loss) before income taxes |
56,486 |
(168,509) |
||||
| Income tax (provision) benefit |
(15,563) |
60,725 |
||||
| Net income (loss) |
$ 40,923 |
$ (107,784) |
||||
| Basic and diluted net income (loss) |
||||||
| per common share |
$ 0.02 |
$ (0.04) |
||||
| Balance Sheet Highlights |
|||||
| September 30, 2014 |
June 30, 2014 |
||||
| Cash and cash equivalents |
$ 677,829 |
$ 332,800 |
|||
| Trade accounts receivable |
3,162,301 |
3,165,396 |
|||
| Inventories, net |
6,021,575 |
6,157,848 |
|||
| Total current assets |
10,720,938 |
10,378,927 |
|||
| Line of credit |
1,172,071 |
3,521,209 |
|||
| Accounts payable |
2,532,039 |
2,433,534 |
|||
| Accrued expenses |
199,527 |
342,716 |
|||
| Accrued payroll and benefits expense |
322,210 |
243,394 |
|||
| Total current liabilities |
5,677,616 |
7,031,332 |
|||
About Dynatronics Corporation:
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.
Safe Harbor Notification
This press release contains forward-looking statements. Those statements include references to the company's expectations and similar statements. 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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