0001096906-11-000974.txt : 20110516 0001096906-11-000974.hdr.sgml : 20110516 20110516165819 ACCESSION NUMBER: 0001096906-11-000974 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20110516 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20110516 DATE AS OF CHANGE: 20110516 FILER: COMPANY DATA: COMPANY CONFORMED NAME: DYNATRONICS CORP CENTRAL INDEX KEY: 0000720875 STANDARD INDUSTRIAL CLASSIFICATION: ELECTROMEDICAL & ELECTROTHERAPEUTIC APPARATUS [3845] IRS NUMBER: 870398434 STATE OF INCORPORATION: UT FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-12697 FILM NUMBER: 11848097 BUSINESS ADDRESS: STREET 1: 7030 PARK CENTRE DRIVE STREET 2: BLDG D CITY: SALT LAKE CITY STATE: UT ZIP: 84121 BUSINESS PHONE: 8015687000 MAIL ADDRESS: STREET 1: 7030 PARK CENTER DR CITY: SALT LAKE CITY STATE: UT ZIP: 84121 FORMER COMPANY: FORMER CONFORMED NAME: DYNATRONICS LASER CORP DATE OF NAME CHANGE: 19920703 8-K 1 dynatronics8k.txt ================================================================================ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): May 16, 2011. DYNATRONICS CORPORATION (Exact name of registrant as specified in its charter) Utah 0-12697 87-0398434 ---- ------- ---------- (State or other jurisdiction (Commission (IRS Employer of incorporation) File Number) Identification Number) 7030 Park Centre Dr., Salt Lake City, Utah 84121 ------------------------------------------------ (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (801) 568-7000 -------------- Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: [_] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [_] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [_] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [_] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Item 2.02 Results of Operations and Financial Condition. On May 16, 2011, the registrant issued a press release announcing its financial results for the fiscal third quarter and nine months ended March 31, 2011. The registrant also held a conference call by telephone to discuss the nine-month and quarterly operating results. A copy of the press release summarizing the results of operations is furnished herewith as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference. The registrant will also post the earnings press release on its corporate website at www.dynatronics.com. The information in this Current Report is being furnished and shall not be deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information in this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended. The furnishing of the information in this Current Report is not intended to, and does not, constitute a representation that such furnishing is required by Regulation FD or that the information this Current Report contains is material investor information that is not otherwise publicly available. Item 9.01 Financial Statements and Exhibits. (d) Exhibits Exhibit 99.1 Press release dated May 16, 2011 SIGNATURES Pursuant to the requirements of The Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. DYNATRONICS CORPORATION By: /s/ Kelvyn H. Cullimore, Jr. ----------------------------- Kelvyn H. Cullimore, Jr. Chairman and President Date: May 16, 2011 -------------------------------------------------------------------------------- EX-99.1 2 dynatronics8kexh991.txt ================================================================================ NEWS RELEASE ------------ Contact: Bob Cardon, Dynatronics Corp. 800-874-6251 or 801-568-7000 Dynatronics' Third Quarter Profits Increase 22% Salt Lake City, Utah (May 16, 2011) - Dynatronics Corporation (NASDAQ: DYNT) today announced results for its fiscal third quarter ended March 31, 2011. Net income for the quarter ended March 31, 2011, increased 22 percent to $117,260 ($.01 per common share), compared to $96,099 ($.01 per common share) for the same quarter in the prior fiscal year. Sales for the quarter ended March 31, 2011, increased 1.8 percent to $8,383,842, compared to $8,235,060 for the quarter ended March 31, 2010. Net income for the nine months ended March 31, 2011, was $202,112 ($.02 per common share), compared to $353,022 ($.03 per common share) for the same period in the prior fiscal year. Approximately $400,000 in increased R&D expenses primarily accounts for the lower profitability through nine months. Sales for the nine months ended March 31, 2011, were $24,502,477, compared to $25,018,960 for the similar period of the prior year. General weakness in the economy contributed to lower demand for capital equipment during the first half of the current fiscal year. "Profits increased 22 percent for the quarter despite heavy R&D expenses," stated Kelvyn H. Cullimore Jr., chairman and president of Dynatronics. "Other than higher R&D expenses, we improved every other category including higher sales, better gross profit margins, slightly lower SG&A expense and lower interest expense. With several new products currently under development, our R&D expenses represent an investment in the future - an investment we believe will strengthen future profitability." During the quarter, the company announced the signing of contracts with three group purchasing organizations (GPOs): Premier, Amerinet and First Choice. "These contracts began on March 1, 2011, so they did not contribute materially to sales this quarter," Cullimore explained. "However, we did begin the process of introducing GPO member facilities to Dynatronics' brand of products. The contracts with the GPOs represent a license to solicit business directly from the members of the respective GPOs. While the process of converting business to our brand will take time, management is optimistic about the potential of this new market segment." Together, the three GPOs represent tens of thousands of clinics and hospitals around the nation, spending an estimated $50 million on physical medicine products annually. "We are making good progress with the GPO members," stated Larry K. Beardall, executive vice-president of sales and marketing. "Several of them are opening accounts and starting to place orders for our products and services. We expect to announce specific progress soon regarding a large GPO member. Cultivating business through these GPO contracts and seeking additional contracts with other GPOs will be a major focal point for us over the coming years." "We believe we are well positioned to benefit from our expansion into the GPO market," added Cullimore. "That expansion will have the most significant impact on delivering strong revenue growth and increasing operating margins over the next 12 months and beyond," he concluded. Dynatronics has scheduled a conference call for investors on Monday, May 16, 2011, at 1:00 p.m. ET. Those wishing to participate should call (800) 926-7510 and use access code: 5687000. Following is a summary of the financial results as of March 31, 2011, and June 30, 2010, and for the three and nine-month periods ended March 31, 2011 and 2010: Summary Selected Financial Data Statement of Income Highlights (Unaudited) Three Months Ended Nine Months Ended March 31, March 31, 2010 2011 2010 2011 ----------- ----------- ------------ ------------ Net sales $ 8,383,842 $ 8,235,060 $ 24,502,477 $ 25,018,960 Cost of sales 5,159,450 5,119,797 15,156,811 15,396,978 ----------- ----------- ------------ ------------ Gross profit 3,224,392 3,115,263 9,345,666 9,621,982 SG&A expenses 2,640,053 2,647,417 7,774,848 8,059,143 R&D expenses 339,258 222,062 1,045,573 644,912 Other expenses, net 50,244 84,879 187,630 305,046 ----------- ----------- ------------ ------------ Net income before income taxes 194,837 160,905 337,615 612,881 Income tax provision (77,577) (64,806) (135,503) (259,859 ----------- ----------- ------------ ------------ Net income $ 117,260 $ 96,099 $ 202,112 $ 353,022 =========== =========== ============ ============ Diluted income per common share $ 0.0 $ 0.01 $ 0.02 $ 0.03 =========== =========== ============ ============ Balance Sheet Highlights March 31, June 30, 2011 2010 ------------ ------------- (Unaudited) Cash $ 248,202 $ 383,756 Accounts receivable 3,882,665 3,735,251 Inventories 5,549,503 5,766,800 Total current assets 10,484,756 10,609,813 Total assets $ 14,732,447 $ 15,090,329 Accounts payable 1,563,154 $ 1,404,022 Accrued expenses 508,613 462,641 Line of credit 2,664,663 2,768,492 Total current liabilities 5,651,734 5,686,280 Total liabilities 8,094,848 8,291,052 Total liabilities and equity $ 14,732,447 $ 15,090,329 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 new product line introductions and growth from GPO contracts. 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, 2010. --------------------------------------------------------------------------------