Dynatronics Corporation Reports Second Quarter Fiscal Year 2024 Financial Results
- None.
- None.
Insights
The financial results reported by Dynatronics Corporation reflect the company's operational performance and can significantly influence investor sentiment and stock valuation. A positive EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) indicates a company's profitability before accounting for certain financial components. Progress towards a positive EBITDA suggests an improving operational efficiency and potential for future profitability. Investors should closely monitor the company's ability to maintain cost controls while scaling up operations, as this balance is critical for long-term financial health.
In addition, the mention of a limited launch of new products followed by a full launch indicates a strategic phased approach to market entry. This can mitigate risk and allow for adjustments based on initial market feedback. However, investors should consider the costs associated with product development and launch, as well as the potential impact on the company's cash flow. The anticipation of new products can also drive speculative interest in the stock, affecting its volatility.
Dynatronics' engagement with strategic customers to identify new product opportunities signifies responsiveness to market demands and a customer-centric approach. This collaboration can lead to innovations that are well-aligned with market needs, potentially leading to increased market share. A successful new product launch can significantly boost revenue, but it is essential to evaluate the competitive landscape. The timing and success of new product introductions can be pivotal, especially if they coincide with emerging industry trends or address unmet needs in athletic training and rehabilitation markets.
Investors should assess the company's track record in product innovation and market penetration. The ability to forecast and respond to customer demand is a key differentiator in the medical equipment industry. A well-executed product launch strategy could enhance the company's reputation and lead to partnerships, potentially influencing long-term growth prospects.
Dynatronics operates in the healthcare sector, specifically focusing on equipment for athletic training, physical therapy and rehabilitation. This sector is subject to stringent regulations and the success of product launches often depends on meeting these regulatory requirements. The healthcare industry is also influenced by technological advancements and the integration of digital solutions. The company's investment in developing and manufacturing new products suggests an alignment with these industry trends.
From a regulatory standpoint, investors should consider the implications of any FDA approvals or clearances required for new products. Delays or denials can impact the launch timeline and investor confidence. Additionally, given the specialized nature of the healthcare equipment market, the adoption rate of new products by healthcare professionals will be a critical metric to monitor following the launch. The company's ability to navigate these industry-specific challenges will be a key factor in evaluating its potential for success.
Eagan, Minnesota--(Newsfile Corp. - February 8, 2024) - Dynatronics Corporation (NASDAQ: DYNT) ("Dynatronics" or the "Company"), a leading manufacturer of athletic training, physical therapy, and rehabilitation products, today reported financial results for its second quarter of fiscal year 2024 ended December 31, 2023.
CEO Commentary
"We continue to make progress on achieving our sales goals and finding our path to positive EBITDA," said Brian Baker, Chief Executive Officer of Dynatronics. "We continue our focus on our fiscal year 2024 operating plan and making progress on our strategic priorities with encouraging results. Our commercial team has been working closely with our strategic customers to identify new product opportunities. We have been aggressively developing, manufacturing, and building stock to support customer demand. Our plan is to manage a limited launch of new products in the third quarter fiscal year 2024, and full launch in the fourth quarter fiscal year 2024. We are excited about the potential incremental revenue these products can contribute to our business."
Key Financial Results
Q2 Fiscal Year '24 Financial Highlights
Note: All financials referenced in this release are in conformity with U.S. Generally Accepted Accounting Principles ("GAAP") and comparisons in this release are to the same period in the prior year unless otherwise noted.
- Total net sales of
$8.2 million . - Gross profit margin of
22.3% . - Net loss of
$1.0 million compared to net loss of$0.8 million in Q2 fiscal year '23.
Notable Balance Sheet Highlights
- Net cash of
$0.6 million unchanged from$0.6 million as of June 30, 2023. - As of December 31, 2023,
$1.9 million drawn, with an additional$2.5 million available on working capital asset-based line of credit established on August 1, 2023. - Proceeds from line of credit reduced accounts payable and accrued expenses by
$0.7 million and funded$0.8 million of prepaid expenses.
Guidance for Fiscal Year '24
Dynatronics estimated net sales to be in the lower range of revenue estimates of
The Company is continuing its recent practice of not providing gross margin guidance given the recent reductions in revenue and operating costs.
The Company reaffirmed its guidance on selling, general, and administrative expenses that are anticipated to be
The Company's financial guidance for fiscal year '24 is subject to the risks identified in its safe harbor notification below. The Company continues to expect volatility due to the challenges related to the broader economic environment, including competitive pressures, inflationary pressures, supply chain disruptions, extended handling times and delays or disruption in procedure volume. Dynatronics also expects some ongoing volatility from the Company's business optimization.
Conference Call Q2 Fiscal Year '24 Results
The Company will hold a conference call, consisting of prepared remarks by management, and a question-and-answer session with analysts, at 8:00 AM ET on Thursday, February 8, 2024, to review its fiscal year '24 second quarter results.
Interested persons may access the live conference call by dialing 1-800-319-4610 (U.S./Canada callers) or +1-604-638-5340 (international callers). It is recommended that participants call or login 10 minutes ahead of the scheduled start time to ensure proper connection. An audio replay will be available one hour after the live call until Midnight on February 15, 2024, by dialing 1-855-669-9658 (U.S./Canada callers) or +1-604-674-8052 (international callers), using replay access code 0667.
About Dynatronics Corporation
Dynatronics is a leading medical device company committed to providing high-quality restorative products designed to accelerate achieving optimal health. The Company designs, manufactures and sells a broad range of products for clinical use in physical therapy, rehabilitation, orthopedics, pain management, and athletic training. Through its distribution channels, Dynatronics markets and sells to orthopedists, physical therapists, chiropractors, athletic trainers, sports medicine practitioners, clinics, and hospitals. The Company's products are marketed under a portfolio of high-quality, well-known industry brands including Bird & Cronin®, Solaris™, Hausmann®, and PROTEAM™, among others. More information is available at www.dynatronics.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Those statements include references to the Company's expectations and similar statements. Such forward-looking statements reflect the views of management at the time such statements are made. These statements include our statements regarding the Company's planned product launches, expected overall performance, expectations regarding net sales, distribution of net sales, and selling general and administrative costs in fiscal year 2024, and uncertainties related to the broader economic environment, including higher raw material, delivery and shipment costs, supply chain disruptions, extended handling times and delays or disruption in procedure volume and volatility resulting from continued execution of the Company's business optimization strategy. These forward-looking statements are subject to a number of risks, uncertainties, estimates, and assumptions that may cause actual results to differ materially from current expectations. The contents of this release should be considered in conjunction with the risk factors, warnings, and cautionary statements that are contained in the Company's annual, quarterly, and other reports filed with the Securities and Exchange Commission. Dynatronics does not undertake to update its forward-looking statements, whether as a result of new information, future events, or otherwise.
Summary Financial Results
Following is a summary of operating results for the periods ended December 31, 2023, the balance sheet highlights at December 31, 2023 and cash flow for periods ended December 31, 2023.
Summary Selected Financial Data
Statements of Operations Highlights
In thousands, except share and per share amounts
| Quarter Ended | Six Months Ended | |||||||||||
| December 31, | December 31, | |||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||
| Net sales | $ | 8,151 | $ | 10,882 | $ | 17,503 | $ | 22,936 | ||||
| Cost of sales | 6,331 | 7,820 | 13,377 | 16,231 | ||||||||
| Gross Profit | 1,820 | 3,062 | 4,126 | 6,705 | ||||||||
| Selling, general and administrative expenses | 2,722 | 3,862 | 5,267 | 7,980 | ||||||||
| Other (expense) income, net | (109) | (41) | (201) | (72) | ||||||||
| Net income (loss) | $ | (1,011) | $ | (841) | $ | (1,342) | $ | (1,347) | ||||
| Preferred stock dividend, in common stock, issued or to be issued | (191) | (173) | (388) | (343) | ||||||||
| Net income (loss) attributable to common stockholders | $ | (1,202) | $ | (1,014) | $ | (1,730) | $ | (1,690) | ||||
| Net loss attributable to common stockholders per | ||||||||||||
| common share - basic and diluted | $ | (0.27) | $ | (0.27) | $ | (0.39) | $ | (0.45) | ||||
| Weighted-average common shares outstanding - basic and | ||||||||||||
| diluted | 4,524,965 | 3,794,333 | 4,393,279 | 3,750,930 | ||||||||
Balance Sheet Highlights
In thousands
| December 31, 2023 | June 30, 2023 | |||||
| Cash and cash equivalents and restricted cash | $ | 555 | $ | 553 | ||
| Trade accounts receivable, net | 3,738 | 3,722 | ||||
| Inventories, net | 6,753 | 7,403 | ||||
| Prepaids & other | 1,849 | 741 | ||||
| Total current assets | 12,895 | 12,419 | ||||
| Non-current assets | 16,404 | 17,644 | ||||
| Total assets | $ | 29,299 | $ | 30,063 | ||
| Accounts payable | $ | 3,975 | $ | 4,530 | ||
| Accrued payroll and benefits expense | 603 | 878 | ||||
| Accrued expenses | 1,094 | 891 | ||||
| Other current liabilities | 1,605 | 1,642 | ||||
| Line of credit | 1,897 | - | ||||
| Total current liabilities | 9,174 | 7,941 | ||||
| Non-current liabilities | 4,595 | 5,265 | ||||
| Total liabilities | 13,769 | 13,206 | ||||
| Stockholders' equity | 15,530 | 16,857 | ||||
| Total liabilities and stockholders' equity | $ | 29,299 | $ | 30,063 |
Cash Flow Highlights
In thousands
| Six Months Ended | ||||||
| December 31 | ||||||
| 2023 | 2022 | |||||
| Net loss | $ | (1,342) | $ | (1,347) | ||
| Depreciation and amortization | 652 | 682 | ||||
| Stock-based compensation | 15 | 86 | ||||
| (Gain) loss on sale of property and equipment | 41 | - | ||||
| Receivables | (16) | 185 | ||||
| Inventory | 650 | 1,325 | ||||
| Prepaid and other assets | (827) | 134 | ||||
| Accounts payable, accrued expenses, and other liabilities | (697) | (774) | ||||
| Net cash provided by (used in) operating activities | (1,524) | 291 | ||||
| Net cash used in investing activities | (230) | (126) | ||||
| Payments on non-current liabilities | 1,756 | (181) | ||||
| Net cash used in financing activities | 1,756 | (181) | ||||
| Net change in cash and cash equivalents | 2 | (16) | ||||
| Cash and cash equivalents at beginning of the period | 553 | 701 | ||||
| Cash and cash equivalents at end of the period | $ | 555 | $ | 685 | ||
Contact:
Dynatronics Corporation
Investor Relations
ir@dynatronics.com
For additional information, please visit: www.dynatronics.com.
Connect with Dynatronics on LinkedIn
SOURCE: Dynatronics Corporation
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/197011
FAQ
What are the financial results reported by Dynatronics for the second quarter of fiscal year 2024?
What are the strategic priorities mentioned by Dynatronics in the press release?
When does Dynatronics plan to launch new products?
