DYNT - Earnings call transcript Q1 2021

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Operator

Good morning, ladies and gentlemen, and welcome to your Dynatronics First Quarter 2021 Earnings Call. All lines have been placed on a listen-only mode and the floor will be open questions and comments following the presentation. At this time, it is my pleasure to turn the floor over to your host, John Krier. Sir, the floor is yours.

John Krier

Good morning, and thank you for participating in today’s call. and Accounting Officer, Officer, President is with Krier, Principal our Skyler John Chief and Executive me I’m Black. XXXX. quarter We morning issued September first announcing this XX, ended the financial a results of press release our will Today, I will report. over a brief financial Skyler a turn then for commentary, to it and provide I have we At open phone the will conclusion, lines the operator the for questions. under Skyler our reliance Safe Harbor I of on laws. you will the to now securities remind ask federal the

Skyler Black

you, Thank John.

those course remind expectations, me business. call, you financial let of begin, today uncertainties the could that today. statements actual reflect view our current this will Important results to during cause our performance we cause plans, forward-looking make Before statements they from These forward-looking involve our results only, we that as that discussed and could risks relating regarding to and projections of factors actual our materially implied included and and revise no results. forward-looking to filed and differ projected our COVID-XX statements make and include business undue to statements materially risks XX-K recent by undertake on most morning. the reliance uncertainties related you are or statements. today forward-looking other the we caution the our impact SEC We to those of from with to reports on not or pandemic forward-looking update We this in place obligation differ

John Krier

Molex operational executive Vice the and of as appointed was a company. Chief newly Finance financial for Norm to Financial recently, our Skylar. brings Solutions you, Medical Roegner, by Norm years begin division of Thank of welcoming I’ll Dynatronics. Phillips-Medisize, President Officer. Pharma Norm leadership Most

chain manufacturing the companies, at commercial operations. Norm During organization, led financial multiple work execution Molex his across and supply extensive

is beginning quarter be our Norm to our partnering call. our and the supporting me Norm joining joining with to will will chain for responsible Norm him executive next I success. addition to earnings teams finance am and team be forward organization, pleased Skyler In look for leading our operational lead supply our also company.

locations In the on our want set to us Norm, our before a to accepted who circumstances addition of and tirelessly basis. all daily welcoming challenges thank difficult unique worked to I solve employees across and

passion team’s facilities in September time. this on providing ended care a evident our what health Today, our to deliver we our and first Our is we for difficult professionals XX, and are products report XXXX. quarter

that markets financial Let me and delivered prior from the then previously Dynatronics updates impacts Despite on positive additional six positive due over as pandemic, $XX.X XX, quarter to XXXX, the updates. our $XX.X focusing million, few the the key our the a disclosures the activities to of from sales start and by the XXXX of COVID-XX discuss reflects Net decreased the uncertainty or our prior we operations year. first a the in months. for September XX.X% disclosure quarter past ended sales Net in compared same in million million late quarter to September continued $X.X momentum disclosed

business, months, consistent begun decisive As actions opportunities to our strong to scalability the have performance. have of increase over assess we with six the the past a result now of taken demonstrating financial we

few by first quarter XX, focusing highlights a September me begin Let ended on for XXXX. our

line the fact, no The we $X.X company outstanding and $X in flow down million And activities. of additional under currently the cash operating we by capital. continue need outside positive to management First, team have credit or the manage in generated from borrowing without paid million balance our facility. for

align we entire April sales a varying returned percent to margin and operating and XXXX. actions in of SG&A operations These experienced leverage the demonstrate for the of as organization Second, we ratios quick ratios demand XX.X%, the XX.X% to respectively. gross results to our beginning by

logistics third-party transfer the closure to finalize to continue provider. of of our Tennessee with we facility rehabilitation the our Third, supplies

a focus to balance in Skyler with markets now to opportunities our Our the provide business the products. report. be and will environment for see uncertain our financial present we continues

Skyler Black

million result to selling the compared $X.X or million decrease for income to prior sales of lower deferral compared mix categories. was and product of year. the XX.X% year. approximately XX, XX.X% the lower during of million, decreased prior to decreased XX% same sales due million I quarter year. and John, Net increase the costs. Net million XX.X% $X.X general performance major Lower associated good expenses, The to the quarter ended sales a of Gross the XX.X% $X.X from margin was included other COVID-XX and Thanks, $X.X commissions elective quarter in for representing compared primarily the quarter primary decrease. decrease net of prior to quarter compared $X.X due XX.X% morning, reduction same everyone. $X.X of in or of the for lower were Selling, XXXX, approximately $X.X sales million million $X.X am to sales $X.X personnel gross the changes $X.X to million review in decreased million same of related percentage million million to a administrative of decrease in cause the to September The of to due same in to the expenses a in million quarter. or to of procedures. the precautions our lower the the pleased $XX.X as prior quarter between administrative expenses for quarter a year. $XX.X fixed the of or the in margin the loss management financial and to sales, primarily primarily general The $X.X of XX.X% and million, quarter salaries and sales was in

balances approximately XXXX, As of XX, September we held cash $X.X million. of

million $XX line. have zero have asset-based the and line We borrowings on of credit, we an

current availability a as and balance shares, preferred of shares on As common have million our XXXX, XX, XX, John million. from currently the approximately outstanding common XX.X borrowing is approximately June line total million approximately of base. million the of We $X mentioned, this is company $X.X of the September The $X has reduction XX.X currently the including was on based shares million. as number XX.X million XXXX. The outstanding

outstanding which dependent expect by We shares quarter, our upon share to operating our is will This turn the our back concludes price. John. per to now I XXX,XXX increase approximately of results. summary call

John Krier

Skyler. you, Thank

while to speculate pandemic, As a on with not XX%. QX finish activity the compared going time to result XX% for expectations COVID-XX feel we business, are of represented the our will markets approximately to of our in to finishing being. September of continue And year this sequential guidance due to improvement the the line XX% the at continued uncertainty quarter, in prior ongoing to suspend we about uncertain the we environment. October of the virus given level trended QX. good in

conditions locations accordingly. to changing employees assess to market and all continue react our adapt Our across to will and the related COVID-XX of

support. investor operator We as pursue stabilization We our disruption employees our employees business, our recovery appreciate their have I the turn ability over Dynatronics to to the end-user demonstrated committed ongoing will significant in the remains to and customers. will this of past our thank for to market present. opportunities strategy customers, over base and our continue now resulting it brands, plan, questions. quarters, execute and for and despite a two our growth our our

Operator

we’ll with Jeffrey Thalmann. And our Thank you. go from Please Ladenburg take ahead. Instructions] first Cohen [Operator question

Jeffrey Cohen

Skyler. John Hi, and How are you?

John Krier

Jeff. morning, Good

Jeffrey Cohen

sustain speaking, firstly, generally any as had forward? upside does is bit positive And this commentary levels October and/or gone? it Any margins? commentary a looked far on like going you quarter, are So It grow how of feel these can like you QX. for that as

John Krier

Yes. Thanks, Jeff.

been of We the we’re for resources the October, demand. That’s month in a activity various to speculate I the activity think are to significant the pulled depths we was levers of future. saw we in the result delivered and of what October. margins can’t May, the we that to we’re business like the And going on continue it seeing QX. June in change, were to We that we to we it seeing to match the demand to very resources like in our that the certainly, deliver experiencing. whether margin a April, gross definitely had proud in that the we our the line match QX. But was in we’re and of team QX on what we’ve able

Jeffrey Cohen

it. to And any quarter first It commentary Got on previous the looks Okay. compared like the as October? very QX. well quarter, did

like So patterns feel it it’s still open? does facilities ordering on there bag feel geography? it mixed depending a out are does Or and like

John Krier

of activity increased QX, in. trended feel that’s the driven. in the can’t the we’re in the we environment future. it’s of activity with with on Certainly, that reasons geography one about good level And and we But October definitely the speculate line operating given pandemic,

Jeffrey Cohen

it. Got

far specific for it me, Okay. which such ordering stood on areas, kind upside of orthopedics any then of And the as some or, or patterns out as comes et as lines to the product lastly for cetera, Solaris quarter? when Thanks. there were the

John Krier

Jeff. Thanks,

Cronin Dynatronics – Bird parts on you is brands, we differences products. our mentioned, modality have & of as Hausmann the about or great our embracing side tables the the One whether Solaris in or

line product so that in mix definitely surgical helped us certainly the within to of there’s as visits during Nothing certainly quarter. of up, PT our as side out, having notable on enjoyed or product so mix And product some happen procedures breadth benefit differences it. the we the stand but come

Jeffrey Cohen

That’s it Perfect. the Thanks questions. taking for Okay. me. for

Operator

with Matt move [Operator next to And Bullock Group. Instructions] Maxim we’ll

Matt Bullock

what Matt the innovation driving comment I’m if if about? have for you pipeline expenses? on And comment maybe could Vendetti. going then SG&A Bullock. you your This the any of you guys be the products in wondering that excited Thanks. was could other on priorities are year Anthony is for forward might you I down rest on for

John Krier

those have SG&A is Matt, to a mention scalable morning of you would to this organization. on Anthony. I couple and we continue the great running points that Thanks, to A resources match for on side

certainly a was significant that of us. So focus

what’s we of look need address of our our the feel supplier allowing very at can three us good the opportunities week of participated period. ago, was are that which we As their we’ve of portfolio. able now now forward, in we dealers It fantastic. turned two last within all in exist what product breadth exist our happening going largest opportunities what what or great. and seven look to market, COVID, And to the business, over discuss to to start months brands. continue in A in what depth we in done That’s at that address stabilize were have And the new we’ve showcase, we one to to about the was the market.

with now As continue may we and are our exist. opportunities historical acquisition there’s as our parcel to opportunity given think sheet, about part there and conversations balance that have to an that product is we where And partners that well. potential we

So continued forward looking side. some to the product focus on

Matt Bullock

Very Great. Thanks. helpful.

Operator

And Instructions] at I’m showing [Operator time. questions no this further

to I’ll Krier turn closing John any So for remarks. back over it

John Krier

and thank Thank interest you you, in all questions for Christie, your and the Dynatronics. for

contact, have the end any may you our further to call. you If please Investor Skyler Black. Operator, direct questions, them Relations

Operator

That does participation. Thank your you. teleconference. We conclude today’s appreciate

You at a and time, may this your have day. disconnect lines great

Dynatronics (DYNT) 12 Nov 202021 Q1 Earnings call transcript