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Dynatronics Announces First Quarter Financial Results

            Dynatronics Announces First Quarter Financial Results

PR Newswire

SALT LAKE CITY, Nov. 14, 2013

SALT LAKE CITY, Nov. 14, 2013 /PRNewswire/ --Dynatronics Corporation (NASDAQ:
DYNT) today announced results for its fiscal first quarter ended September 30,
2013.

Net sales in the quarter decreased 2.1% to $7,055,428, compared to $7,206,025
in the same period of the prior year. Net loss for the quarter was $107,784
($.04 per common share), compared to $51,145 ($.02 per common share) for the
prior year period. The loss was primarily the result of lower sales of
products manufactured by third parties, as well as approximately $49,000 in
higher R&D costs this quarter associated with the company's new ThermoStim
probe, a product expected to launch during the quarter ending December 31,
2013. All per-share amounts reflect the company's one-for-five reverse stock
split, effective December 19, 2012.

"While sales of manufactured capital products and supplies remained even or
improved, reduced sales of distributed medical products and supplies,
including exercise products, nutritional supplements and taping products,
accounted for the decrease in sales for the quarter ended September 30, 2013,
compared to the prior year period," stated Kelvyn H. Cullimore Jr., chairman
and president of Dynatronics. "The continued general economic weakness in our
primary markets, combined with uncertainties surrounding the implementation of
the Affordable Care Act, have dampened demand and contributed to lower sales
numbers.

"To offset these challenges, management has undertaken a plan to significantly
expand the company's distribution channels by adding new dealers and sales
representatives," Cullimore continued, "To date, we have added more than 30
new sales representatives to our distribution channel. These new
representatives are independent direct sales reps and sales reps at newly
added independent dealers. They will augment our geographical reach to
practitioners across the country. The addition of these new reps brings us
nearly halfway to our goal of adding 75 new sales representatives selling our
products."

"We've also developed a major new product that we expect to introduce in the
quarter ending December 31, 2013," reported Larry K. Beardall, executive vice
president of sales and marketing. "This is the Dynatron Thermostim Probe™, and
will be one of the most innovative and attractive products in our history. The
Thermostim Probe is a soft-tissue mobilization tool that also allows a
practitioner to deliver heat or cold therapy in combination with electrical
stimulation – all at the same time." 

The new hand-held probe is an accessory to the Dynatron SolarisPlus family of
products. It utilizes a thermoelectric chip to generate the thermal therapy
and is powered by any one of four Dynatron SolarisPlus units.

"Demand for this innovative probe is building even before it is released,"
stated Beardall. "We now have indications of interest from over 500 clinicians
across the country who have become aware of this innovative new product. And
since the probe is operated from the control console of the SolarisPlus units,
we expect demand for SolarisPlus units to rise commensurate with the demand
for the ThermoStim probe."

"We believe the introduction of the new Thermostim probe, together with the
expansion of our distribution channel, will be the impetus to return
Dynatronics to profitability," Cullimore concluded.

Dynatronics has scheduled a conference call for investors today, Thursday,
November 14, 2013, at 12:30 p.m. ET. Those wishing to participate should call
(800) 954-0586.

The following is a summary of the financial results as of September 30, 2013
and 2012, and for the quarter then ended:

Summary Selected Financial Data

Statement of Operations Highlights
                                                Three Months Ended
                                                September 30,
                                                2013       2012
Net sales                                     $ 7,055,428  7,206,025
Cost of sales                                   4,474,359  4,495,177
       Gross profit                             2,581,069  2,710,848
Selling, general, and administrative expenses   2,379,369  2,459,104
Research and development expenses               314,823    266,268
Total other expense                             55,386     59,085
       Loss before income tax benefit           (168,509)  (73,609)
Income tax benefit                              60,725     22,464
       Net loss                              $ (107,784)  (51,145)
       Diluted net loss per common share      $ (0.04)     (0.02)



Balance Sheet Highlights
                                             As of September 30,
                                             2013        2012
Cash and cash equivalents                  $ 220,660     302,050
Trade accounts receivable                    3,256,432   3,246,712
Inventories, net                             6,255,317   6,407,553
Total current assets                         10,748,424  10,879,449
Total assets                               $ 14,900,156  15,104,587
Line of credit                               3,616,601   3,496,390
Accounts payable                             2,453,441   2,751,894
Accrued expenses                             388,855     347,221
Accrued payroll and benefits expense         325,318     216,266
Total liabilities                            8,781,071   8,895,637
Total liabilities and stockholders' equity $ 14,900,156  15,104,587

About Dynatronics Corporation:

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.

Safe Harbor Notification

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, 800-874-6251 or 801-568-7000
 
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