Major Improvements Reported Over Prior Year SALT LAKE CITY, Sept.
25 /PRNewswire-FirstCall/ -- Dynatronics Corporation (NASDAQ:DYNT)
today announced results for its fiscal fourth quarter and its
fiscal year ended June 30, 2009. Net income for the fiscal fourth
quarter was $46,101 ($.00 per share), compared to a net loss of
$6,764,001 ($.50 per share) for the fourth quarter of fiscal year
2008. Net income for the year ended June 30, 2009, was $103,324
($.01 per share), compared to a net loss of $8,443,771 ($.62 per
share) for the prior year. The loss for fiscal year 2008 included a
charge of approximately $6,600,000 related to the impairment of
goodwill. Sales for the fiscal fourth quarter of 2009 were
$8,058,431, compared to $8,057,572 for the fourth quarter of fiscal
year 2008. Sales for the year ended June 30, 2009 were $32,406,891,
compared to $32,592,507 for the prior year. "It should be
reassuring to our stakeholders that we showed significant
improvement in bottom-line results especially given the
deterioration of general economic conditions," stated Kelvyn H.
Cullimore Jr., chairman and president of Dynatronics. "Two
important contributors to the success we achieved during the year
were maintaining sales despite recessionary pressures and reducing
selling, general and administrative expenses by over $2,800,000.
Over the past two years, we have undertaken aggressive
cost-reduction campaigns to improve efficiencies. These efforts
have led to sustainable earnings improvements, which we believe
will benefit the company for many years. "Our cost-reduction
efforts were accentuated with the help of Vici Capital Partners,"
Cullimore added. "Together, we uncovered a number of additional
opportunities to save money, improve operational efficiencies,
strengthen margins and reduce manufacturing and other costs. These
changes were specifically targeted at lowering transaction costs,
obtaining better pricing and terms from vendors and service
providers, streamlining customer service and production processes,
and improving our sales support functions. We believe that we will
realize additional benefits from these efforts over the next 12
months as we begin to implement an e-commerce solution for selling
our products more efficiently." In September 2008, Dynatronics
introduced customers to its new 2009-2010 product catalog,
containing thousands of new products. This sales tool boosted the
company's medical supply sales, offsetting a softening of capital
equipment sales during the year. "We introduced the new V-Force
vibration therapy device in June 2009," stated Larry K. Beardall,
executive vice president of sales and marketing. "This new unit
employs powerful, whole-body vibration technology, which provides
neuromuscular training to increase strength, improve balance and
enhance flexibility. Additional new products for 2010 are in
development." Over the past year, the company expanded its direct
sales team to 50 sales representatives, including 27 direct sales
employees and 23 independent sales representatives. "Dynatronics
has emerged as one of only two companies in our industry with a
direct sales force marketing a broad line of proprietary and
non-proprietary products," Beardall added. "The new catalog and the
introduction of the V-Force helped us sustain sales at or near
fiscal year 2008 levels." "By continuing to build our sales force,
streamlining operations through e-commerce and capitalizing on
evolving market opportunities, we believe we're well-positioned for
continued improvements - particularly as general economic
conditions improve," concluded Cullimore. Dynatronics has scheduled
a conference call for investors on Friday, September 25, 2009, at
12:30 p.m. ET. Those wishing to participate should call
800-839-9416 and use passcode 9321818. A summary of the financial
results for the three months and year ended June 30, 2009, follows:
Summary Selected Financial Data Statement of Operations Highlights
Three Months Ended Year Ended June 30, June 30, 2009 2008 2009 2008
---- ---- ---- ---- Net sales $8,058,431 $8,057,572 $32,406,891
$32,592,507 Cost of sales 5,001,599 5,022,123 19,996,436 20,450,570
--------- --------- ---------- ---------- Gross profit 3,056,832
3,035,449 12,410,455 12,141,937 SG&A expenses 2,648,843
3,232,380 10,709,712 13,473,190 R&D expenses 218,298 283,749
993,338 1,354,743 Goodwill impairment - 6,636,466 - 6,636,466 Other
expense, net 116,824 147,953 522,145 593,093 --------- -------
------- ------- Net income (loss) before income taxes 72,867
(7,265,099) 185,260 (9,915,555) Income tax provision (benefit)
26,766 (501,098) 81,936 (1,471,784) ------ ----- ------ ------
--------- Net income (loss) $46,101 $(6,764,001) $103,324
$(8,443,771) ====== =========== ======= =========== Net income
(loss) per diluted share $.00 $(.50) $.01 $(.62) === ===== ===
===== Balance Sheet Highlights June 30, June 30, 2009 2008 ----
---- Cash $141,714 $288,481 Accounts receivable 4,739,727 5,151,235
Inventories 6,199,251 6,283,068 Total current assets 12,003,068
12,981,686 Total assets 17,087,289 18,427,819 Accounts payable
1,795,520 1,423,839 Accrued expenses 446,327 500,145 Line of credit
4,602,651 5,818,320 Total current liabilities 7,785,881 8,660,803
Total liabilities 10,667,540 12,162,180 Total liabilities and
equity $17,087,289 $18,427,819 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 http://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 expected improvement in
economic conditions, additional benefits to be obtained from the
launch of the e-commerce system, and the anticipated continuing
benefits in future periods from the cost-reduction initiative.
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-KSB for the year ended June 30, 2008, and its subsequent
quarterly reports on Form 10-Q. DATASOURCE: Dynatronics Corporation
CONTACT: Bob Cardon of Dynatronics Corp., 1-800-874-6251, or
+1-801-568-7000 Web Site: http://www.dynatronics.com/
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