EX-99.1 2 dynt8k20100201ex99-1.htm PRESS RELEASE DATED FEBRUARY 1, 2010 dynt8k20100201ex99-1.htm


NEWS RELEASE

Contact:       Bob Cardon, Dynatronics Corp.
800-874-6251 or 801-568-7000


Dynatronics Net Income Triples in Second Quarter

Salt Lake City, Utah (February 1, 2010) – Dynatronics Corporation (NASDAQ: DYNT) today announced results for its fiscal second quarter ended December 31, 2009.

Net income for the fiscal second quarter increased 245% to $188,299 ($.01 per share), compared to $54,598 ($.00 per share) for the comparable quarter in the prior year. Net income for the six-month period ended December 31, 2009 increased to $256,923 ($.02 per share), compared to a net loss of $84,353 ($.01 per share) for the comparable prior year period.
 
Sales for the quarter were $8,501,437 compared to $8,718,893 for the second quarter of the prior fiscal year.  For the six-month period ended December 31, 2009, sales were $16,783,900, compared to $16,715,042 for the same period in the prior fiscal year.
 
 “The significant increase in profitability reflects building momentum from the strategies we have implemented over the last two years,” stated Kelvyn H. Cullimore Jr., chairman and president of Dynatronics. “Increased demand for our advanced-technology medical devices together with lower operating costs during the quarter fueled the rise in net income.”

Over the past two years, Dynatronics has implemented a number of important strategies to reduce costs, improve operating efficiencies and reposition the Company in an evolving market place.  “It is invigorating to be reaping the benefits of the strategies we implemented to improve our operating results,” added Cullimore.  “The execution of our strategy to build and strengthen channels of distribution has been augmented by unexpected consolidations within our industry that have further aided in advancing our strategic plans.  Adding an improving economy further strengthens the expectation that our momentum will continue.”

The company’s strategic market initiatives were recently illustrated by the announcement of new preferred vendor arrangements with over 2,000 clinics associated with Preferred Therapy Providers and WorkWell Systems. “More and more chains of clinics are realizing the significant benefits Dynatronics offers,” said Larry K. Beardall, executive vice president of sales and marketing. “Despite the challenging economic times, we are moving forward aggressively to grow our business and gain market share.”
 
Dynatronics has scheduled a conference call for investors on Monday, February 1, 2010, at 1:30 p.m. ET. Those wishing to participate should call 800-861-4084 and use passcode 9921511.

A summary of the financial results for the three and six months ended December 31, 2009, follows:

 
 

 

Summary Selected Financial Data
Statement of Operations Highlights

   
Three Months Ended
   
Six Months Ended
 
   
December 31,
   
December 31,
 
   
2009
   
2008
   
2009
   
2008
 
                         
Net sales
  $ 8,501,437     $ 8,718,893     $ 16,783,900     $ 16,715,042  
Cost of sales
    5,174,060       5,405,338       10,277,181       10,205,845  
   Gross profit
    3,327,377       3,313,555       6,506,719       6,509,197  
SG&A expenses
    2,699,357       2,827,427       5,411,726       5,804,074  
R&D expenses
    206,882       265,718       422,850       527,747  
Other expense, net
    110,936       130,493       220,167       278,288  
   Net income (loss) before income taxes
    310,202       89,917       451,976       (100,912 )
Income tax provision (benefit)
     121,903        35,319       195,053        (16,559 )  
   Net income (loss)
  $ 188,299     $ 54,598     $ 256,923     $ (84,353 )
Net income (loss) per diluted share
  $ .01     $ 0.00     $ .02     $ (.01 )
 
 
Balance Sheet Highlights

   
December 31,
   
June 30,
 
   
2009
   
2009
 
Cash
  $ 362,763     $ 141,714  
Accounts receivable
    4,449,808       4,739,727  
Inventories
    5,971,500       6,199,251  
Total current assets
    11,652,780       12,003,068  
Total assets
    16,504,384       17,087,289  
                 
Accounts payable
    1,517,461       1,795,520  
Accrued expenses
    454,503       446,327  
Line of credit
    4,338,752       4,602,651  
Total current liabilities
    7,102,435       7,785,881  
Total liabilities
    9,814,911       10,667,540  
Total liabilities and equity
  $ 16,504,384     $ 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.