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Dynatronics Announces Second Quarter Financial Results And Introduction of New ThermoStim Probe

Dynatronics Announces Second Quarter Financial Results And Introduction of New
                               ThermoStim Probe

PR Newswire

SALT LAKE CITY, Feb. 14, 2014

SALT LAKE CITY, Feb. 14, 2014 /PRNewswire/ -- Dynatronics Corporation (NASDAQ:
DYNT) today announced results for its fiscal second quarter ended December 31,
2013.

Net income for the quarter was $44,095 ($.02 per common share), compared to
$140,983 ($.06 per common share) for the prior year period. Net loss for the
six-month period ended December 31, 2013, was $63,689 ($.03 per common share),
compared to net income of $89,839 ($.04 per common share) for the prior year
period. Net sales in the quarter decreased to $7,146,787, compared to
$7,998,319 in the same period of the prior year. Net sales in the six months
ended December 31, 2013, decreased to $14,202,215, compared to $15,204,345 in
the same period of the prior year. All per-share amounts reflect the company's
one-for-five reverse stock split, effective December 19, 2012.

"Generating a profit this quarter is a positive sign after losses in three
consecutive quarters," stated Kelvyn H. Cullimore Jr., chairman and president
of Dynatronics. "While the profit was not as big as last year when we
introduced the new SolarisPlus product line, we made the necessary adjustments
to expenses to offset the reported reduction in sales and achieve
profitability.

"Due to uncertainty associated with healthcare reform in the United States, we
have seen a marked decline in the opening of new clinics and expansion of
existing clinics in our marketplace," continued Cullimore. "The new clinic
openings are typically a significant source of demand for capital equipment –
especially in December, as businesses traditionally take advantage of year-end
tax benefits and the utilization of remaining capital budgets. The typical
December surge of sales did not materialize this year, as it has historically,
contributing significantly to the reported decline in sales."

To offset these challenges, management of the company has undertaken a
multi-faceted approach to (1) expand distribution channels by adding several
new dealers and sales representatives, (2) introduce the new Dynatron
ThermoStim Probe, and (3) reduce operating costs over the past two years by
more than $1.4 million. Since August 2013, the company has added 37 new
salespeople, including sales people at dealers, to its team. These seasoned
professionals are well-established in the industry and are expected to
contribute to expanded sales efforts in the year to come.

The new ThermoStim Probe is a handheld electrode capable of delivering hot or
cold therapy in combination with electrical stimulation. It is also designed
to allow the practitioner to simultaneously apply soft-tissue mobilization
techniques in conjunction with the thermal therapy and electrical stimulation.
"Initial feedback from the field regarding this new product has been very
encouraging," reported Larry K. Beardall, executive vice president of sales
and marketing. "Practitioners are quickly recognizing the ThermoStim Probe's
unique benefits, which include treatment time savings by delivering three
distinct treatments simultaneously and greater ease of use compared to
conventional methods. Importantly, patients are enjoying the comfortable
treatments provided by this innovative new probe."

Because the probe is operated from the control console of the SolarisPlus
units, demand for the company's SolarisPlus units is increasing. "We
anticipate that the probe will be the catalyst to not only boost sales of our
most profitable products, but also attract new distributors to our products,"
added Beardall.

"The new ThermoStim Probe is a unique product. There is nothing like it on
the market. We have applied for patent protection of this proprietary
technology. The introduction of this exciting new product, together with the
expansion of our distribution channel and cost reduction program, will be the
keys to improving the company's operating performance," Cullimore concluded.

Dynatronics has scheduled a conference call for investors, Friday, February
14, 2014, at 2:00 p.m. ET. Those wishing to participate should call (800)
736-4594.

The following is a summary of the financial results as of December 31, 2013
and 2012, and for the quarter and six months then ended:



Summary Selected Financial Data
Statement of Operations Highlights
                        Three Months Ended          Six Months Ended
                        December 31                 December 31
                        2013       2012             2013         2012
Net sales             $ 7,146,787  $  7,998,319    $14,202,215  $15,204,345
Cost of sales           4,469,256  4,899,404        8,943,615    9,394,582
   Gross profit         2,677,531  3,098,915        5,258,600    5,809,763
Selling, general,       2,315,463  2,565,282        4,694,833    5,024,386
and admin. expenses
Research and            238,711    274,379          553,534      540,646
development expenses
Other expense, net      49,773     59,111           105,158      118,196
   Income (loss)
   before income        73,584     200,143          (94,925)     126,535
   taxes
Income tax provision    29,489     59,160           (31,236)     36,696
(benefit)
   Net income (loss)  $ 44,095     $   140,983   $          $   
                                                    (63,689)    89,839
Basic and diluted
net income (loss)
per common share      $ 0.02       $           $        $     
                                   0.06            (0.03)      0.04



Balance Sheet Highlights
                                           December 31, 2013     June 30, 2013
Cash and cash equivalents                $ 418,378               302,050
Trade accounts receivable                  3,001,381             3,246,712
Inventories, net                           6,568,392             6,407,553
Total current assets                       11,133,829            10,879,449
Total assets                             $ 15,135,334            15,104,587
Line of credit                             3,676,592             3,496,390
Accounts payable                           2,742,238             2,751,894
Accrued expenses                           346,834               347,221
Accrued payroll and benefits expense       265,572               216,266
Total liabilities                          8,954,426             8,895,637
Total liabilities and stockholders'      $ 15,135,334            15,104,587
equity



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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