Attached files
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| 8-K - CURRENT REPORT - DYNATRONICS CORP | dynt_8k.htm |
Exhibit 99.1
Dynatronics Reports First Quarter Results for Fiscal
2021
Eagan, MN (November 12, 2020) – Dynatronics
Corporation (NASDAQ:DYNT), a leading manufacturer of
athletic training, physical therapy, and rehabilitation products,
today announced financial results for its first quarter of fiscal
year 2021.
Net
sales for the quarter ended September 30, 2020 were $12.1 million,
a decrease of $4.3 million, or 26.0%, compared to $16.4 million in
the same period of the prior year. Gross profit decreased $1.3
million, or 24.3%, to $3.9 million compared to $5.2 million in the
same quarter of the prior year. The decrease in net sales and gross
profit compared to the prior year period were primarily
attributable to COVID-19 precautions and associated deferral on
elective procedures. Gross margin for the quarter was 32.2%
compared to 31.4% in the same period of the prior
year.
Net
loss for the quarter ended September 30, 2020 was approximately
$0.4 million, compared to a net gain of $0.1 million for the same
quarter of the prior fiscal year. The Company experienced positive
cash flow from operating activities of $1.1 million in the first
quarter of fiscal year 2021.
“Over
the last two quarters, we have demonstrated the ability to
stabilize the business through decisive actions, despite the
significant disruption to our customers,” said John Krier,
President and CEO of Dynatronics Corporation. “We are
committed to our brands, our customers, and our employees and will
continue to pursue and execute our growth strategy as opportunities
present themselves.”
Due to
continued uncertainty resulting from the ongoing COVID-19 pandemic,
Dynatronics will not provide guidance for fiscal year
2021.
Conference Call
Dynatronics has
scheduled a conference call for investors on November 12, 2020, at
8:30 AM ET. Those wishing to participate should call (844) 407-9500
(U.S./Canada callers) or (862) 298-0850 (international callers). A
replay will be available by dialing (877) 481-4010, Pin
38163.
About Dynatronics Corporation
Dynatronics
Corporation 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’s 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
references to our financial guidance, 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 including
uncertainties involving the impact of the COVID-19
pandemic. 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, 2020, which was filed on September 24, 2020.
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 ended
September 30, 2020 and 2019 and balance sheet highlights at
September 30, 2020 and June 30, 2020.
Summary Selected Financial Data
Statement of Operation Highlights
In thousands, except share and per share amounts
|
|
Quarter Ended
|
|
|
|
September 30,
|
|
|
|
2020
|
2019
|
|
|
|
|
|
Net
sales
|
$12,133
|
$16,390
|
|
Cost
of sales
|
8,231
|
11,236
|
|
Gross
profit
|
3,902
|
5,154
|
|
|
|
|
|
Selling,
general, and admin. expenses
|
4,246
|
4,925
|
|
Other
expense, net
|
(34)
|
(130)
|
|
Income
tax provision
|
-
|
-
|
|
Net
(loss) income
|
$(378)
|
$99
|
|
|
|
|
|
Convertible
preferred stock dividend, in common stock
|
(194)
|
(167)
|
|
Net
loss attributable to common stockholders
|
$(572)
|
$(68)
|
|
|
|
|
|
Net
loss attributable to common stockholders per common share - basic
and diluted
|
$(0.04)
|
$(0.01)
|
|
Weighted-average
common shares outstanding - basic and diluted
|
14,080,361
|
8,576,961
|
Balance Sheet Highlights
In thousands
|
|
September
30,
2020
|
June
30,
2020
|
|
Cash
and cash equivalents
|
$2,291
|
$2,316
|
|
Trade
accounts receivable, net
|
5,609
|
4,894
|
|
Inventories,
net
|
6,169
|
8,372
|
|
Prepaid
& other
|
1,824
|
493
|
|
Total
current assets
|
$15,893
|
$16,075
|
|
|
|
|
|
Accounts
payable
|
$3,258
|
$3,014
|
|
Accrued
payroll and benefits expense
|
1,565
|
1,205
|
|
Accrued
expenses
|
1,037
|
768
|
|
Other
current liabilities
|
2,084
|
1,679
|
|
Line
of credit
|
0
|
1,013
|
|
Total
current liabilities
|
$7,944
|
$7,679
|
Contact:
Dynatronics
Corporation
Investor
Relations
Skyler
Black
(801)
676-7201
skyler.black@dynatronics.com
For
additional information, please visit: www.dynatronics.com
Connect
with Dynatronics on LinkedIn