Dynatronics' Second Quarter Profits Jump 204%
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 |
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) |
$ |
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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