================================================================================
Exhibit 99
NEWS RELEASE
- ------------
Contact: Bob Cardon, Dynatronics Corp.
800-874-6251 or 801-568-7000
Dynatronics Announces Positive Year-end Results
Salt Lake City, Utah (September 22, 2010) - Dynatronics Corporation
(NASDAQ: DYNT) today announced results for its fiscal fourth quarter and year
ended June 30, 2010.
Net income for the quarter ended June 30, 2010, increased 54 percent to
$70,955 ($.01 per common share), compared to $46,102 ($.00 per common share) for
the quarter ended June 30, 2009. Net income for the year ended June 30, 2010,
increased 310 percent to $423,977 ($.03 per common share) compared to $103,324
($.01 per common share) for the prior year.
"The increase in annual profits is attributable to improved sales,
particularly in sales of higher margin capital equipment," stated Kelvyn H.
Cullimore Jr., chairman and president of Dynatronics. "We also enhanced our
operating efficiencies by reducing labor and overhead costs as well as securing
better pricing and terms from vendors."
These results continue the trend of seven consecutive profitable quarters
for the company. "Despite the difficult economic times of the past two years, we
have not only returned to solid profitability, but have also improved our cash
position significantly," added Cullimore. "The combination of improved
profitability, better management of receivables and inventory, and a $500,000
federal income tax refund allowed us to reduce borrowings on our operating line
of credit during the fiscal year by approximately $1,834,000."
"Our efforts to reduce expenses have been complemented by specific
marketing strategies that resulted in the increase in sales reported for the
fiscal year," said Larry K. Beardall, executive vice president of the company.
"With the broad line of products we now offer and a strong sales force that
continues to grow, we are focusing our efforts on developing relationships with
large chains of clinics and hospitals, national accounts and group purchasing
organizations (GPOs) that buy primarily through negotiated contracts."
Beardall notes that nationally, GPOs as a group purchase an estimated $400
million of products annually related to physical medicine. "We are excited to be
tapping into this new market opportunity," added Beardall. "In addition, with
the recent launch of our new e-commerce website, we're seeing a significant
portion of our total orders being placed over the web. These online sales help
drive down our transaction costs and help us become more efficient."
"With all of these positive developments, we feel that we're clearly
headed in the right direction despite the general economic conditions. We
believe we are well positioned to capitalize on our efforts of the past year and
accelerate our trends toward greater profitability and growth," concluded
Cullimore.
Dynatronics has scheduled a conference call for investors on Wednesday,
September 22, 2010, at 1:00 p.m. ET. Those wishing to participate should call
(800) 698-6162 and use passcode 5687000.
A summary of the financial results as of June 30, 2010 and 2009 and for
the three and twelve month periods follows:
Summary Selected Financial Data
Statement of Operations Highlights
Three Months Ended Twelve Months Ended
June 30, June 30,
2010 2009 2010 2009
------------ ------------ ------------ --------------
Net sales $ 7,943,432 $ 8,058,431 $ 32,962,392 $ 32,406,891
Cost of sales 4,919,839 5,001,599 20,316,818 19,996,436
------------ ------------ ------------ --------------
Gross profit 3,023,593 3,056,832 12,645,574 12,410,455
SG&A expenses 2,582,652 2,694,843 10,641,795 10,755,712
R&D expenses 270,021 218,298 914,932 993,338
Other expenses, net 83,756 116,823 388,802 522,145
------------ ------------ ------------ --------------
Net income before
income taxes 87,164 26,868 700,045 139,260
Income tax provision
(benefit) 16,209 (19,234) 276,068 35,936
------------ ------------ ------------ --------------
Net income $ 70,955 $ 46,102 $ 423,977 $ 103,324
============ ============ ============ ==============
Diluted income per
common share $ 0.01 $ 0.00 $ 0.03 $ 0.01
============ ============ ============ ==============
Balance Sheet Highlights
June 30, June 30,
2010 2009
------------ --------------
Cash $ 383,756 $ 141,714
Accounts receivable 3,735,251 4,739,727
Inventories 5,766,800 6,199,251
Total current assets 10,609,813 12,003,068
Total assets 15,090,329 17,087,289
Accounts payable 1,404,022 1,795,520
Accrued expenses 462,641 446,327
Line of credit 2,768,492 4,602,651
Total current liabilities 5,686,280 7,785,881
Total liabilities 8,291,052 10,667,540
Total liabilities and equity $ 15,090,329 $ 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.
- --------------------------------------------------------------------------------