Dynatronics Reports Second Quarter Results for Fiscal 2020
COTTONWOOD HEIGHTS, UT / ACCESSWIRE / February 11, 2020 / Dynatronics Corporation (NASDAQ:DYNT), a leading manufacturer of athletic training, physical therapy, and rehabilitation products, today announced financial results for its second quarter of fiscal year 2020.
Recent Financial and Business Highlights:
“Dynatronics achieved its sales goals across all brands, delivered back-to-back quarters of improved operating profitability, and continued to generate positive cash flow from operations,” explained Brian Baker, President and CEO of Dynatronics Corporation. “Our execution to the operating plan continues to achieve positive results. In the coming months, we will continue to drive operational changes that should reduce cost, improve profitability, increase operating cash flow, and position us well for the next fiscal year.”
Fiscal 2020 First Quarter Financial Results
Net sales for the quarter ended December 31, 2019 were $15.2 million, a decrease of $243,000, or 1.6%, compared to $15.4 million in the same period of the prior year. Gross profit for the quarter decreased $94,000, or 2.0%, to $4.6 million. The decrease in net sales and gross profit were primarily attributable to lower sales of physical therapy and rehabilitation products. Gross margin for the quarter was 30.2% compared to 30.3% in the same period of the prior year.
Net loss for the quarter ended December 31, 2019 was approximately $137,000, compared to a net loss of $441,000 for the same quarter of the prior fiscal year. Depreciation, amortization, and other non-cash expenses were $447,000 in the second quarter of fiscal 2020.
2020 Financial Outlook
The Company also narrowed its sales guidance for the fiscal year ending June 30, 2020.
Dynatronics expects net sales for fiscal year 2020 to be in the range of $59 million to $61 million, with gross margin of approximately 31%, and selling, general, and administrative expense of approximately 31%, including approximately $1.8 million in non-cash charges. We expect the distribution of sales between quarters to align with historical trends.
The Company’s financial guidance for 2020 is subject to the risks identified in our Safe Harbor Notification below.
Dynatronics has scheduled a conference call for investors on February 11, 2020, at 8:30 AM ET. Those wishing to participate should call (844) 602-0380 (U.S./Canada callers) or (862) 298-0970 (international callers). A replay will be available by dialing (877) 481-4010, Pin 57028.
About Dynatronics Corporation
Dynatronics is a leading medical device company committed to providing high-quality restorative products designed to accelerate achieving optimal health. The company designs, manufactures, and sells a broad range of products for clinical use in physical therapy, rehabilitation, pain management, and athletic training. Through its distribution channels, Dynatronics markets and sells to orthopedists, physical therapists, chiropractors, athletic trainers, sports medicine practitioners, clinics, hospitals, and consumers. The company products are marketed under a portfolio of high-quality, well-known industry brands including Bird & Cronin®, Solaris™, Hausmann™, Physician’s Choice®, and PROTEAM™, among others. More information is available at www.dynatronics.com.
Safe Harbor Notification
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act. Those statements include references to the company’s expectations and similar statements. Such forward-looking statements reflect the views of management at the time such statements are made. These statements include our financial guidance, including our expected revenues, gross profit, and selling, general, and administrative expenses. These forward-looking statements are subject to a number of risks, uncertainties, estimates, and assumptions that may cause actual results to differ materially from current expectations. The contents of this release should be considered in conjunction with the risk factors, warnings, and cautionary statements that are contained in the company’s most recent filings with the Securities and Exchange Commission, including the company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2019, which was filed on September 25, 2019. Dynatronics does not undertake to update its forward-looking statements, whether as a result of new information, future events, or otherwise.
Summary Financial Results
The following is a summary of operating results for the quarters and six months ended December 31, 2019 and December 31, 2018 and balance sheet highlights as of December 31, 2019 and June 30, 2019.
Summary Selected Financial Data Statement of Operation Highlights
In thousands, except share and per share amounts
|Quarter Ended||Six Months Ended|
|December 31,||December 31,|
Cost of sales
Selling, general, and admin. expenses
Other (expense) income, net
Income tax provision
Deemed dividend on convertible preferred stock and accretion of discount
Convertible preferred stock dividend, in common stock
Net loss attributable to common stockholders
Net loss attributable to common stockholders per common share - basic and diluted
Weighted-average common shares outstanding - basic and diluted
Balance Sheet Highlights
|Dec. 31, 2019||June 30, 2019|
Cash, cash equivalents, and restricted cash
Trade accounts receivable, net
Prepaid & other
Total current assets
Accrued payroll and benefits expense
Other current liabilities
Line of credit
Current portion of acquisition earn-out liability
Total current liabilities
For additional information, please visit: www.dynatronics.com
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SOURCE: Dynatronics Corporation
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