DYNT - Earnings call 2 2024 | Dynatronics Corporation

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Operator

Thank you for standing by. This is the conference operator. Welcome to the Dynatronics Second Quarter Results for Fiscal 2024 Conference Call. [Operator Instructions] the conference is being recorded.

After the presentation, there will be an opportunity to ask questions. Instructions]. [Operator

like CEO conference ahead. of now Baker, to turn and President Dynatronics. to would over the Brian I Please go

Brian Baker

you, is everyone, Quarter morning, is Gabe CEO. operator. to Chief today Thank Second Financial our Dynatronics Officer. With and me Earnings Baker, Brian welcome This Ellwein, President and Call. Good

I'll started, get read we Dave to our safe Before ask harbor statement.

Gabe Ellwein

Thank you, Brian.

These expectations, forward-looking to relating differ most recent course included make as only and results differ forward-looking our could business. Important current will to results view this in performance other statements cause discussed today. financial XX-K to we the plans, statements with reports factors our call, of that and materially from actual or of SEC. During and the are and projections from cause reflect projected actual materially involve our forward-looking our uncertainties regarding our today risks could those filed those by implied that

not reliance obligation to place you no revise statements. forward-looking We undue or undertake statements on we this We update caution to make morning. forward-looking

Brian Baker

morning, commentary, issued it to Thank On This December Gabe call, a XXXX. the some second quarter we of turn Gabe. a ended XX, announcing press today's provide financial report. I'll financial then you, I'll results initial release our for over

questions. remarks. report, will closing then fiscal operator The discuss line provide I Gabe's and will for Following the our XXXX guidance the year for open phone

very sales has to our XX, for period XXXX, although positive goals with lower -- ended been customers continue EBITDA. our December sales to historically opportunities and brands. strategic optimize team our on commercial with second the For each path our quarter a the of worked revenue, make our closely quarter we to progress finding achieving We

demonstrate in renewed ability work partnerships. customers these so closely our strength to key Our with

sourcing strategic have new begin from In products they to addition, our identified Dynatronics. desire customers

customer been aggressively stock to our support building have We and demand. developing, manufacturing

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contribution However, estimate Complementing and commission. make-to-order team it focus manufactured our products of products. operations business. of for work the during backorder revenue is faster early stock commercial the revenue on our customer-centric the the times to and reduction level reduced to quarter, too Their led to team lead strategic

focus confidence outperformed results Our competition higher These service customer progress levels fiscal lead year on XXXX plans and operating time. improve reflect to on continued the as we strategic quality our and continue product priorities. our and

to commitment a over key team's daily to to business it goals, to business. to and every I'll employee the financial achieving now I the turn for has report. their been want to ongoing Our our provide thank Gabe

Gabe Ellwein

Thank you, Brian.

As here. and summarize found can reminder, in statement full financials the will key be a the analysis I of the income and some management XX-Q. discussion

year-over-year year reduction competitor customers of bracing orthopedic decrease sales due the net of demand the of to Net The year $X.X $XX.X product in our and 'XX. rehabilitation by in a sales million fiscal That fiscal is quarter acquisition million were second soft for category our of X larger a 'XX. in compares primarily to category.

the levels. discussed we of for year. the to efficiencies net compared million by driven decrease profit period in reduction the million see sales profit product margins was lower prior in net $X.X by lower $X.X to Gross net previously quarter sales same as the evenly of in XX.X% The the revenue or we and at was gross sales XX.X% continue or

ended million $X.X December was expenses compared for across ended million to administrative and The in general selling, $X.X the professional XX, XXXX, December and the other expenses to quarter million -- for administrative $X.X decreased general in million the Selling, and XX% XX, quarter of reduction expenses. with led of a $X.X remainder salaries spread the million $X.X reduction benefits overall the XXXX.

Net compares a period $X.X the of of loss fiscal That $X.X year fiscal to for 'XX in million million. was net QX loss XXXX. same year

Outstanding -- on shares increase I share our approximately price. quarter, will per $XXX,XXX depending

XX, common of the December As XXXX, outstanding was $X.X of million. number approximately shares

The XXXX, on net to December $X.X million million XX, XXXX. change $X.X reported cash balance XX, on was approximately June no the

XXXX, of our balance as $X.X approximately -- line December of XX, The credit was million.

base million $X.X approximately approximately was availability credit of borrowing million. $X.X of on line Additional a

the used $X.X used $X.X reduced operating $X.X the accrued prepaid of for Cash of payable million. 'XX. proceeds of accounts credit first from line to by was fund and and months expenses the company million activities expenses year The by X fiscal million

the and summary financial results. concludes our operating of This

Brian Baker

Thank you, Gabe.

fiscal historical In with revenue revenue are XXXX, for expected $XX to net $XX we to lower the our guidance space. now million is terms of in of be the the The trends. in guidance end distribution to rehabilitation align demand to due year million estimating of slower of

We are currently. margin not gross providing guidance

reductions anticipated in sales SG&A the XX% be of in of fresh the fiscal for expectations, year. are range we considering is to seeking guidance. the our improved in Given reinstituting net before stabilization revenue to business XX%

our and In profitability flexibility. support. to our their We thank summary, employees and current our base is for fiscal investor ongoing focus we the strengthen and our for relationships improve appreciate customer operating as year financial

over operator it questions. to for turn now I'll the

Operator

question-and-answer session. now the [Operator will Instructions]. We begin

Lake Our Capital first from Markets. question Brooks comes . O'Neil Street of

Brooks O'Neil

the first variety level which might increased towards have both talked demand as a translate of areas, to I would of sensed guess guess, I I the for services. solid year. care health I therapy couple physical to the of fourth companies quarter surgery calendar far the I so in activity and outpatient end a of of hospital in a and the quarter off, questions. early relatively

some But somewhat I weak. comments sense your is that in demand maybe of

So me going the there can you what's right about now? help out in marketplace on think

Brian Baker

the for Thanks question.

us openings are some of from we're the customers. and continue to done that that quarter have would larger what from that on and the new slowdown of way there So groups And facility it this that openings getting are has facility respond our they're I customers a based openings Brooks, there new been year. doing the calendar the historically first is through will and feedback that, in the telling specifically those facility new

for are And reasons there that. several

clinics been where also the explanations the graduating giving our the physical can that that there's of staff. best to strategic very are about to they One pull-through is open they customers revenue we've that they're be they're they see. patients that from not And enough then that want with new so therapists trying

that in getting of we of pickup QX we're start our as fiscal the the year see a But we still to seeing equipment. replacement hoping calendar we're ongoing our or are there. into second So quarter demand

continues to rehab that space. the from So come in

Brooks O'Neil

Great.

that. That's color. Okay. appreciate great I

some commented to of the on, new products you're just service activities you can the give new see you areas you working secondly, where sure, say your competitive I'm reasons product any for don't want about So color about customers? but about us lot a opportunity to you

Brian Baker

back portfolio. Sure. where us and are some to our earlier product comments, have customers where in of And actually our they're we gaps my I'll reflect identifying coming to

you that product we So us adjustments will, map, to product the if make. need road they're a of providing

existing products we that's that those they'll to going And some is see products our And that, revenue the to we provide purchase through. start going doing add to also to we're that product when pull-through to revenue think well. as portfolio, by have, those come start incremental we

And looks in we like, I in the terms of are, earlier, process of what mentioned as stock. that building

market going in accounts when have the the able our getting we're to now. of We're limited key supply be We and those to a right key other support working talking of demand. out accounts their on some with with timing

the And at actually, and as product been very functioning from -- high probably better quality. than far, on feedback And has the a so quality and They very perspective, a positive. look competition. product it the perspective

Brooks O'Neil

great. That's

John's where I leadership to Just built ask inventory customers. issues, you Let your back, bit, or just prepared regard. would be see a X being in to priority that inventory Brian, recognize Historically, constraints, prudent curious up How me you today, was capital about more. chain cetera? you service et coming assess just supply stand under position little trying think

Brian Baker

Yes.

Our supply with we've also very And And plenty we're And meeting current suppliers, building got pipeline. we've been level to low. relative to -- product launches, back inventory the the a the key where low. new again, start then with has quite in order got as pipeline that's key revenue, demand. it's that's customer

think supply provide these We're inventory, So the optimize high I'm the happy the inventory high but what have to right in service we doing chain quite amount team levels. with to I not shelf has on been too inventory. of

So pleased been with that. we've managing I'm how quite

Brooks O'Neil

Great.

next the Looking few forward quarters. to

Operator

over concludes . for to This turn like any closing to the question-and-answer back our Baker remarks. I session. conference Mr. would

Brian Baker

morning and this Dynatronics. time interest Thank your you your in for for ongoing

have If a to further please you end direct questions, call. them And great Operator, day. you may any have ir@dynatronics.com. the

Operator

today's Thank conference you. call. concludes This

your participating, disconnect Thank lines. may for a pleasant You day. and you have

Dynatronics (DYNT) 8 Feb 242024 Q2 Earnings call transcript