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NEWS RELEASE
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Contact: Bob Cardon, Dynatronics Corp.
800-874-6251 or 801-568-7000
Dynatronics Announces Third Quarter Results
Salt Lake City, Utah (May 17, 2010) - Dynatronics Corporation (NASDAQ:
DYNT) today announced results for its fiscal third quarter ended March 31, 2010.
Sales for the quarter increased 7.9 percent to $8,235,060, compared to
$7,633,419 for the third quarter of the prior fiscal year. For the nine-month
period ended March 31, 2010, sales increased 2.8 percent to $25,018,960,
compared to $24,348,461 for the same period in the prior fiscal year.
"Sales of both rehabilitation capital equipment and medical supplies
increased over last year's results for the quarter and nine-month periods,"
stated Kelvyn H. Cullimore Jr., chairman and president of Dynatronics. "This is
the most significant positive indicator we have seen since recessionary
pressures began affecting the economy in the United States in 2008. We attribute
these positive trends to our aggressive marketing efforts and, hopefully, a
slight easing of recessionary pressures."
Pre-tax income for the quarter ended March 31, 2010, totaled $160,905,
compared to $213,304 for the quarter ended March 31, 2009. Pre-tax income for
the nine months ended March 31, 2010, increased to $612,881 compared to $112,393
for the nine months ended March 31, 2009.
"The 445% increase in pre-tax profits for the nine-month period is
reflective of our enhanced marketing efforts and strategic reductions in
expenses, and continues a string of six consecutive profitable quarters,"
Cullimore explained. Pre-tax profits for the current quarter were lower in
comparison to the same quarter last year due to the benefit in the prior year of
the reversal of an approximately $472,000 accrual for retirement benefits upon
cancellation of employment agreements for Cullimore and the company's executive
vice president of sales and marketing, Larry Beardall.
Net income for the quarter ended March 31, 2010, was $96,099, or $.01 per
share, compared to $141,576, or $.01 per share, for the quarter ended March 31,
2009. Net income increased to $353,022, or $.03 per share, for the nine months
ended March 31, 2010, compared to $57,223, or $.00 per share, for the nine
months ended March 31, 2009.
"Our efforts to reduce expenses have been complemented by specific
marketing strategies that resulted in the increase in sales reported for the
quarter ended March 31, 2010," said Beardall. "With the broad line of products
we now offer and a strong sales force that we expect will only grow stronger in
the coming year, we believe we are well positioned to develop relationships with
large chains of clinics and hospitals, national accounts and group purchasing
organizations (GPOs) that buy primarily through negotiated contracts," Beardall
added.
Dynatronics has scheduled a conference call for investors on Monday, May
17, 2010, at 1:30 p.m. ET. Those wishing to participate should call 800-861-4084
and use passcode 9921511.
A summary of the financial results as of March 31, 2010 and June 30, 2009
and for the three and nine months ended March 31, 2010 and 2009, follows:
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Summary Selected Financial Data
Statement of Operations Highlights
Three Months Ended Nine Months Ended
March 31, March 31,
2010 2009 2010 2009
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Net sales $ 8,235,060 $ 7,633,419 $ 25,018,960 $ 24,348,461
Cost of sales 5,119,797 4,788,993 15,396,978 14,994,838
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Gross profit 3,115,263 2,844,426 9,621,982 9,353,623
SG&A expenses 2,647,417 2,256,795 8,059,143 8,060,869
R&D expenses 222,062 247,293 644,912 775,040
Other expenses, net 84,879 127,034 305,046 405,321
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Net income before
income taxes 160,905 213,304 612,881 112,393
Income tax provision 64,806 71,728 259,859 55,170
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Net income $ 96,099 $ 141,576 $ 353,022 $ 57,223
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Diluted income per
common share $ .01 $ 0.01 $ .03 $ .00
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Balance Sheet Highlights
March 31, June 30,
2010 2009
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Cash $ 266,812 $ 141,714
Accounts receivable 4,608,431 4,739,727
Inventories 5,734,580 6,199,251
Total current assets 11,608,314 12,003,068
Total assets 16,600,142 17,087,289
Accounts payable 1,772,708 1,795,520
Accrued expenses 384,012 446,327
Line of credit 3,889,565 4,602,651
Total current liabilities 7,172,421 7,785,881
Total liabilities 9,886,202 10,667,540
Total liabilities and equity $ 16,600,142 $ 17,087,289
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 growth in the company's business
and market share gains. 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 including, but not limited to, the report on Form 10-K for the year
ended June 30, 2009.
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