Dynatronics Corporation Reports Second Quarter Fiscal Year 2024 Financial Results

Dynatronics Corporation (“Dynatronics” or the “Company”), a leading manufacturer of athletic training, physical therapy, and rehabilitation products, 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 $34 to $37 million, due to slower demand in the rehabilitation space. The Company expects the distribution of net sales across the quarters in fiscal year ’24 to align with historical trends, which are highest in the first quarter, lower in the second and third quarters, with a bounce back in the fourth quarter.

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 29% to 33% of net sales in fiscal year ’24.

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.

For full results click here.

About Dynatronics Corporation

Dynatronics (NASDAQ:DYNT) 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, pain management, and athletic training. Through its distribution channels, Dynatronics markets and sells to orthopedists, physical therapists, chiropractors, athletic trainers, sports medicine practitioners, clinics, hospitals, and consumers. The Company’s products are marketed under a portfolio of high-quality, well-known industry brands including Bird & Cronin®, Solaris™, Hausmann®, Physician’s Choice®, and PROTEAM™, among others. More information is available at www.dynatronics.com.

Source: Dynatronics Corporation