SALT LAKE CITY, Feb. 14 /PRNewswire-FirstCall/ -- Dynatronics Corporation (Nasdaq: DYNT) today announced results for its second fiscal quarter ended December 31, 2007.
Sales for the quarter increased 100 percent to $8,861,633, compared to $4,428,182 in the prior year period. For the six months ended December 31, 2007, sales increased 96 percent to $16,753,063, compared to $8,567,239 in the prior year period. The increase in sales was primarily due to the acquisition of six of the company's top independent distributors on June 30, 2007, and July 2, 2007, and the addition of direct sales representatives in several states.
"We're pleased to see the acceleration in second quarter sales," stated Kelvyn H. Cullimore Jr., chairman and president of Dynatronics. "Not only did sales double last year's results, but we generated $1 million more in sales in the second quarter than in the first quarter. It's also gratifying to see the 105 percent improvement in quarterly gross profit over the same period last year."
Acquisition related costs, estimated at $317,000 in the quarter, contributed to the net loss for the quarter of $338,792 ($.02 per share), compared to a net loss of $43,586 ($.00 per share) in the prior year period. For the six months ended December 31, 2007, acquisition related items and costs were approximately $1.4 million and contributed to a year-to-date net loss of $1,050,995 ($.08 per share), compared to a net loss of $218,594 ($.02 per share) in the prior year period.
"As forecast last quarter, we cut the net loss in half in the second quarter compared to the first quarter," reported Cullimore. "With the assimilation process nearing completion, management has identified an additional $1.3 million in annualized cost reductions which we believe will help streamline operations and return the company to profitability. These cost reductions, together with additional strategies to improve margins, will be implemented over the coming months."
"We continue to expand our distribution network nationwide," reported Larry K. Beardall, executive vice president of sales and marketing. "Not only have we doubled our sales as a result of the acquisitions, but we have tripled the number of products we now sell. Having a much expanded distribution channel better positions us to implement our strategic initiatives for expanding sales and improving margins."
Dynatronics has scheduled a conference call for investors today, Thursday, February 14, 2008, at 4:30 p.m. ET (2:30 p.m. MT). Those wishing to participate should call 800-839-9416 and use passcode 1383812.
A summary of the financial results for the second quarter ended
December 31, 2007, follows:
Summary Selected Financial Data
Income Statement Highlights
Three Months Ended Six Months Ended
December 31, December 31,
2007 2006 2007 2006
Net sales $8,861,633 $4,428,182 $16,753,063 $8,567,239
Cost of sales 5,522,417 2,796,992 10,481,535 5,443,892
Gross profit 3,339,216 1,631,190 6,271,528 3,123,347
SG&A expenses 3,339,548 1,308,868 6,915,044 2,570,013
R&D expenses 363,106 346,671 701,999 824,755
Other expense, net 158,218 46,523 285,384 84,018
income taxes (521,656) (70,872) (1,630,899) (355,439)
Income tax benefit (182,864) (27,286) (579,904) (136,845)
Net loss $ (338,792) $ (43,586) $(1,050,995) $ (218,594)
Net loss per share
(diluted) $ (.02) $ (.00) $ (.08) $ (.02)
Balance Sheet Highlights
December 31, June 30,
Cash $ 263,976 $ 1,301,105
Accounts Receivable 6,617,570 3,757,484
Inventories 6,517,534 5,313,984
Total current assets 14,678,380 11,651,927
Total assets $ 26,157,815 $ 18,567,616
Accounts payable $ 1,696,258 $ 1,241,030
Accrued expenses 527,951 287,773
Line of credit 5,598,351 250,000
Total current liabilities 8,918,236 3,535,536
Total liabilities 12,531,042 7,496,972
Total liabilities and equity $ 26,157,815 $ 18,567,616
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. 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, availability of third-party component parts and products, inventory risks due to shifts in market demand, changes in product mix, 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, 2007, and its subsequent quarterly reports on Form 10-QSB.
|SOURCE Dynatronics Corporation|
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