DYNT - Earnings call transcript Q3 2024

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Operator

Good morning, ladies and gentlemen, and welcome to Dynatronics Third Quarter Fiscal Year 2024 Earnings Call.

It is now my pleasure to turn the floor over to your host, Brian Baker, the company's Chief Executive Officer. Brian, the floor is yours.

Brian Baker

Thank you, operator. Good morning, everyone, and welcome to the Dynatronics Third Quarter Earnings Call. President Baker, Brian is and CEO. This today who will me is harbor Gabe Officer, Financial Chief our now Ellwein, statement. With read safe our

Gabe Ellwein

Thank Brian. you,

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

Brian Baker

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

year provide on an Gabe's operator Following I'll report, provide our guidance XXXX closing then the update phone questions. fiscal open and will The remarks. lines for

to our sales on we goals focus For profitability. quarter continue XX, improving March the XXXX, ended and

line margin reducing These reductions to of expenses our a year-over-year in costs allowed ongoing series During of we year-to-date. $X.X today's to million operating cost as to steps another the and rates by volume. made quarter, gross remain align effort part revenue our

of sales I'm continue our to teams meet the monthly strive proud and in goals, quarterly Our achievements quarter. third commercial and operations and their to

We X additions. Hausmann progressing to key and introductions distributors new scheduled. closely design as these product our work with customers are Our

requirements high-end treatment line solid price. Timber while Our wood offers Premier meet an Titan at budget customers' new tables needs. supporting The functional economical quality our high furniture

support strong demand. Premier We for that our customer both product lines have Titan positions inventory and Timber

We and taking are has high see interest customer customers been from these positive. products to delivery the pleased in feedback

new protein products athletic legacy centers. the training Our complements line sold Forged our into

train branding colors. aluminum offering an heavy-duty furniture and solution with customer's athletic construction is Forged

line are quoting in upcoming build-outs now We our Forged training for space. athletic

is it revenue are level to we new learn from exciting optimistic lines, our our early to website While these they existing visit enhance will too I estimate base. of the more product sales you about contribution to Hausmann additions. encourage these

higher firm a we lower historical experiences in quarter experienced second in will As fourth business all in in revenue, has results continued believe although and increase with not quarter, quarter. progress the that Recently, third and a business priorities. historically, the quotes first reflect the orders, reminder, to align a this an strategic and volume, revenue indicator with XXXX the bounce quarter the quote back leading fiscal our year positive convert plan is trends. These operating fourth

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

Gabe Ellwein

Brian. Thank you,

decrease travel, The in decrease same or reduction third our That orthopedic bracing general quarter were I year net rates category. Gross and other XX.X% $X.X a net our discussion quarter XXXX by XX.X% and administrative compares quarter key of reduction million led and March $X.X in across $X.X increase for quarter sales year will can reminder, category. Selling, offset year XX, year-over-year share administrative million found the 'XX. $X.X rehabilitation statement net XXXX. Outstanding year. will change management in The full period the million in some in million in margin million. partially an million rates benefits to services. Net compared same was sales million primarily of a million million and quarter third of repair discussed price. $X.X March XXXX As product for of per profit margin was for $X.X previously profit XX, sales here. Net reduction in sales in for was of to private salaries our maintenance the loss general analysis in the by The 'XX. $X.X quarter, to relationship and of loss product net a $X.X the or financials fiscal fiscal the decreases year soft $X.X be sales for with driven a in primarily orthopedic approximately shares fiscal ended $X.X That million income demand increase of professional to compared gross by expenses in to is bracing with the the category, of depending period the and less selling, due to fiscal million decreased remainder on XX-Q. net XXXX. and $X expenses the of overall compares in our of spread the summarize and was label the ended and XX% in QX $XXX,XXX prior or customers soft the

outstanding was was As balance XX, million reported cash shares $X.X common million million. The $X.X approximately XX, of XX, approximately net on X.X December XXXX. March change the no XXXX, of the to on XXXX, number March

credit of million. of As balance our $X.X line XX, was approximately March XXXX,

in accrued payable expenses was quarter results. operating million. compared positive summary position expenses operating The company a the million. Cash Additional the availability of credit December financial of our $XX,XXX. This line borrowing activities used approximately approximately fiscal prepaid and for was used these year to fund XX, million credit The accounts million cash $X.X to reduce a $X.X X to by change on line $X.X and of overall net the 'XX. $X.X of and concludes months of was million first the base for XXXX proceeds from by of $X.X

Brian Baker

Gabe. you, Thank

terms in and space of million we guidance to changes fiscal private year for to $XX XXXX, our revenues rehabilitation relationships. to slower due to the estimate million label be customer net In $XX.X demand

not providing currently. are gross We guidance margin

thank operator questions. operating year employees base and improve fiscal relationships now Given are the current business revenue of anticipated profitability for summary, year. In investor our focus considering appreciate such the in in net the before SG&A for expectations, in over to reinstituting and their our we be the we stabilization to is turn customer ongoing is XX% for strengthen flexibility. as to our the fiscal seeking financial and XX% guidance. range to for reductions improved We support. I'll sales our it of our

Operator

are this at [Operator registered questions There Instructions] no time.

would I Brian closing comments. floor for the to like So turn back to over any

Brian Baker

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

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

Operator

your Thank at you, you lines this we Mr. for disconnect Baker. your and The conference now ended. time, thank has participation. Please

Dynatronics (DYNT) 9 May 242024 Q3 Earnings call transcript