Dynatronics Corporation Reports Fourth Quarter and Fiscal Year 2023 Financial Results and Update on CEO Succession Plan

Dynatronics Corporation (NASDAQ: DYNT) (“Dynatronics” or the “Company”), a leading manufacturer of athletic training, physical therapy, and rehabilitation products, today reported financial results for its fourth quarter and fiscal year ended June 30, 2023, and provided additional details on the previously announced CEO succession plan.

CEO Succession Plan

Effective October 1, 2023, Brian Baker will assume the roles of Chief Executive Officer and Board Member as part of the Company’s executive transition plan announced in May 2023. John Krier, the Company’s current Chief Executive Officer and Chief Financial Officer will remain as an executive consultant and Interim Chief Financial Officer while the Company continues the search for a permanent Chief Financial Officer.

Key Financial Highlights

Q4 FY ’23 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 $8.4 million.
• Gross profit margin of 14.7%.
• Net loss of $2.4 million.

FY ’23 Financial Highlights

• Total net sales of $40.6 million.
• Gross profit margin of 25.0%.
• Net loss of $5.0 million.

Notable Balance Sheet Highlights

• Net cash of $0.6 million.
• As of September 15, 2023, $1.8 million drawn, with $2.6 million available on previously announced working capital asset-based line of credit established on August 1, 2023.
• Proceeds from line of credit used for $2.0 million reduction in accounts payable as of September 15, 2023, compared to June 30, 2023.

Guidance for FY ’24

Dynatronics reiterates its previous net sales guidance for FY ’24 of $34 million to $37 million. The Company expects the distribution of net sales across the quarters in FY ’24 to align with historical trends, 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.

Selling, general, and administrative expenses are anticipated to be 29% to 33% of net sales in FY ’24.

The Company’s financial guidance for FY ’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.

Fiscal Year 2024 Priorities

The Company also reiterates its goals to strengthen customer relationships, while improving operating profitability and financial flexibility.

For the complete press release, 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