Dynatronics Announces Third Quarter Results

                 Dynatronics Announces Third Quarter Results

PR Newswire

SALT LAKE CITY, May 14, 2013

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,       2,383,871  2,667,867       7,408,257      8,049,134
and admin. expenses
Research and            271,735    361,912         812,382        1,131,120
development expenses
Other expense, net      59,555     60,618          177,750        158,949
   Income (loss)
   before income        (95,397)   (245,440)       31,138         (279,190)
   taxes
Income tax benefit      34,276     127,877         (2,420)        139,701
(provision)
   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

Website: http://www.dynatronics.com
Contact: Bob Cardon, Dynatronics Corporation, +1-800-874-6251 or
+1-801-568-7000
 
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