Dynatronics Announces Third Quarter Financial Results

            Dynatronics Announces Third Quarter Financial Results

PR Newswire

SALT LAKE CITY, May 13, 2014

SALT LAKE CITY, May 13, 2014 /PRNewswire/ --Dynatronics Corporation (NASDAQ:
DYNT) today announced results for its fiscal third quarter ended March 31,
2014.

Net sales in the quarter decreased 12.5% to $6,185,642, compared to $7,070,292
in the same period of the prior year. Net sales in the nine months ended March
31, 2014, decreased 8.5% to $20,387,856, compared to $22,274,637 in the prior
year. Net loss for the quarter was $161,752 ($.06 per common share), compared
to net loss of $61,121 ($.02 per common share) for the prior year. Net loss
for the nine-month period ended March 31, 2014, was $225,441 ($.09 per common
share), compared to net income of $28,718 ($.01 per common share) for the nine
months ended March 31, 2013. All per-share amounts reflect the company's
one-for-five reverse stock split, effective December 19, 2012.

"Uncertainty among customers regarding delivery of care and reimbursement
under the new paradigms of the Affordable Care Act (ACA) has led to diminished
demand in our market," stated Kelvyn H. Cullimore Jr., chairman and president
of Dynatronics. "There has been a marked decline in the opening of new
clinics and expansion of existing clinics which typically are a significant
source of demand for our products. This hesitancy in purchasing new equipment
and expanding practices can be directly tied to the effects of the ACA as well
as continued economic weakness in certain geographic regions."

"With a currently shrinking market, it is necessary to implement strategies to
increase market share," Cullimore continued. "To accomplish that, management
has undertaken efforts to expand our distribution channels by adding several
new dealers and sales representatives, and to stimulate sales of the new
Dynatron ThermoStim Probe and other new products."

The company's ThermoStim probe delivers thermal (hot and cold) therapy and/or
electrotherapy in a targeted, attended treatment. Because the probe is
operated from the control console of the SolarisPlus units, demand for
SolarisPlus units has risen commensurate with the demand for the ThermoStim
probe.

"Demand for the new ThermoStim probe and the associated family of SolarisPlus
products has been a bright spot in an otherwise disappointing quarter,"
reported Larry K. Beardall, executive vice president of sales and marketing.
"The unique advantages of the ThermoStim Probe, which include treatment time
savings by delivering three distinct treatments simultaneously and greater
ease of use compared to conventional methods, make this important new tool a
"must have" for clinicians."

The company also reported plans to sell a building that currently houses
operations in Utah and leasing back the premises. "The sale of this property
will generate significant resources to reduce debt. Management is confident
that this sale will generate a significant profit in the quarter in which the
transaction occurs. We believe the amount of cash generated by this sale will
be between $3,000,000 and $4,000,000 which will be used to reduce debt
obligations of the company and yield a reportable profit of approximately
$2,500,000 to $3,000,000," reported Cullimore. "This will be sufficient to
utilize the majority, if not all of our deferred tax assets."

"The introduction of new ThermoStim probe, together with the expansion of our
distribution channel and sale of one of our buildings, will afford us the
opportunity to improve the company's operating performance going forward,"
concluded Cullimore.

Dynatronics has scheduled a conference call for investors, Tuesday, May 13,
2014, at 1:00 p.m. ET. Those wishing to participate should call (866)
881-0466.

The following is a summary of the financial results as of March 31, 2014 and
2013, and for the quarter and nine months then ended:

Summary Selected Financial Data
Statement of Operations Highlights
                    Three Months Ended         Nine Months Ended
                    March 31                   March 31
                    2014       2013             2014            2013
Net sales         $ 6,185,642  $  7,070,292    $20,387,856     $22,274,637
Cost of sales       3,929,523  4,450,528        12,873,138      13,845,110
   Gross profit     2,256,119  2,619,764        7,514,718       8,429,527
Selling,
general, and        2,245,595  2,383,871        6,940,427       7,408,257
admin. expenses
Research and
development         212,905    271,735          766,438         812,382
expenses
Other expense,      52,465     59,555           157,624         177,750
net
   Income (loss)
   before income    (254,846)  (95,397)         (349,771)       31,138
   taxes
Income tax
provision           (93,094)   (34,276)         (124,330)       2,420
(benefit)
   Net income     $ (161,752)  $   (61,121)   $  (225,441)  $   28,718
   (loss)
Basic and
diluted net
income (loss)
per common share  $ (0.06)     $            $           $     0.01
                               (0.02)           (0.09)



Balance Sheet Highlights
                                          December 31, 2013  June 30, 2013
Cash and cash equivalents               $ 132,394                   302,050
Trade accounts receivable                 2,905,918                 3,246,712
Inventories, net                          6,237,266                 6,407,553
Total current assets                      10,428,317                10,879,449
Total assets                            $ 14,413,198                15,104,587
Line of credit                            3,672,793                 3,496,390
Accounts payable                          2,308,611                 2,751,894
Accrued expenses                          260,729                   347,221
Accrued payroll and benefits expense      304,681                   216,266
Total liabilities                         8,376,420                 8,895,637
Total liabilities and stockholders'     $ 14,413,198                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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