Dynatronics Announces Third Quarter Results
SALT LAKE CITY, May 14, 2013 /PRNewswire/ -- Dynatronics Corporation (NASDAQ: DYNT) today announced results for its fiscal third quarter and nine months ended March 31, 2013.
Net loss for the quarter ended March 31, 2013, decreased 48 percent to $61,121 ($.02 per common share), compared to $117,563 ($.05 per common share) for the same quarter in the prior fiscal year. Net income for the nine months ended March 31, 2013, was $28,718 ($.01 per common share), compared to a net loss of $139,489 ($.05 per common share) for the same period in the prior fiscal year. (All per share amounts reflect the Company's 1-for-5 reverse stock split effective December 19, 2012.)
Sales for the fiscal third quarter ended March 31, 2013, declined 7.6 percent to $7,070,292, compared to $7,653,586 for the quarter ended March 31, 2012. Sales for the nine months ended March 31, 2013, declined 6.9 percent to $22,274,637, compared to $23,925,818 for the nine months ended March 31, 2012.
"Higher sales of our new SolarisPlus and other proprietary capital equipment products during the quarter and nine-month period were offset by lower sales of distributed products, medical supplies and consumable products used by clinics," said Kelvyn H. Cullimore Jr., chairman and president of Dynatronics. "The lower sales of distributed products and supplies are attributable primarily to a lack of growth and expansion within the industry because of uncertainties surrounding healthcare reform and ongoing economic weakness generally. Medical supplies and distributed items account for a large percentage of Company revenues."
Despite reduced sales, the Company's pre-tax loss was reduced from approximately $245,000 to $95,000 for the quarters ended March 31, 2013 and 2012, respectively. The improvement in the reporting periods resulted from reductions in SG&A and R&D costs of approximately $374,000 and $960,000 for the three and nine months ended March 31, 2013, respectively, compared to the similar periods in the prior year.
"To offset the challenges affecting our market, we are aggressively pursuing a new strategic marketing plan that focuses on our unique advantages as both a manufacturer and distributor," reported Larry K. Beardall, executive vice president of sales and marketing. "Following the recent release of the Company's new product catalog which contains more than 1,000 new items, we are about to begin one of the most aggressive expansions of distribution in the Company's history."
"With new expanded distribution in place, we will continue the release of several innovative capital products over the coming quarters," continued Beardall. "One of the new products being developed will be, in our opinion, among the most innovative products introduced in our market in the past decade. Our decision to focus on our unique strengths allows us to pursue a plan for expansion in spite of challenging market conditions."
Dynatronics has scheduled a conference call for investors today, Tuesday, May 14, 2013, at 1:30 p.m. ET. Those wishing to participate should call (800) 272-9104.
The following is a summary of the financial results as of March 31, 2013 and 2012, and for the three- and nine-month periods then ended:
| Summary Selected Financial Data Statement of Operations Highlights |
|||||||||||||
| Three Months Ended |
Nine Months Ended |
||||||||||||
| March 31 |
March 31 |
||||||||||||
| 2013 |
2012 |
2013 |
2012 |
||||||||||
| Net sales |
$ |
7,070,292 |
$ 7,653,586 |
$22,274,637 |
$23,925,818 |
||||||||
| Cost of sales |
4,450,528 |
4,808,629 |
13,845,110 |
14,865,805 |
|||||||||
| Gross profit |
2,619,764 |
2,844,957 |
8,429,527 |
9,060,013 |
|||||||||
| Selling, general, and admin. expenses |
2,383,871 |
2,667,867 |
7,408,257 |
8,049,134 |
|||||||||
| Research and development expenses |
271,735 |
361,912 |
812,382 |
1,131,120 |
|||||||||
| Other expense, net |
59,555 |
60,618 |
177,750 |
158,949 |
|||||||||
| Income (loss) before income taxes |
(95,397) |
(245,440) |
31,138 |
(279,190) |
|||||||||
| Income tax benefit (provision) |
34,276 |
127,877 |
(2,420) |
139,701 |
|||||||||
| Net income (loss) |
$ |
(61,121) |
$ (117,563) |
$ 28,718 |
$ (139,489) |
||||||||
| Basic and diluted net income (loss) |
|||||||||||||
| per common share |
$ |
(0.02) |
$ (0.05) |
$ 0.01 |
$ (0.05) |
||||||||
| Balance Sheet Highlights |
||||||
| March 31, 2013 |
June 30, 2012 |
|||||
| Cash and cash equivalents |
$ |
170,681 |
$ 278,263 |
|||
| Trade accounts receivable |
3,633,247 |
3,667,086 |
||||
| Inventories, net |
6,187,562 |
6,098,597 |
||||
| Total current assets |
10,693,628 |
10,654,158 |
||||
| Total assets |
$ |
14,930,297 |
$ 15,270,930 |
|||
| Line of credit |
$ |
3,874,285 |
$ 3,497,597 |
|||
| Accounts payable |
2,032,597 |
2,413,201 |
||||
| Accrued expenses |
270,080 |
386,229 |
||||
| Total current liabilities |
7,024,033 |
7,088,300 |
||||
| Total liabilities |
8,666,524 |
9,004,615 |
||||
| Total liabilities and equity |
$ |
14,930,297 |
$ 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 introductions and plans to expand distribution. 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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