Dynatronics Corporation Reports Third 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 third quarter of fiscal year 2024 ended March 31, 2024.

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. We worked closely with our customers and key distributors to design three new additions to our rehabilitation furniture line. Our new Timber line provides a high-quality, economical solid treatment furniture option and our Titan Premier line introduces new highly functional hi-lo treatment tables. The new Forged line complements our Hausmann legacy ProTeam wood products sold to the athletic training centers. While it is too early to estimate the level of revenue contribution from these new product lines, we are optimistic that they will enhance our existing sales base.”

Key Financial Results

Q3 Fiscal Year ’24 Financial Highlights

Note: All financials referenced in this release are in conformity with U.S. Generally Accepted Accounting Principles and comparisons in this release are to the same period in the prior year unless otherwise noted.

• Total net sales of $7.7 million.
• Gross profit margin of 23.7%.
• Net loss attributable to common stockholders of $0.9 million compared to net loss attributable to common stockholders of $1.4 million in Q3 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 March 31, 2024, $2.4 million drawn, with an additional $1.9 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 $1.7 million and funded $0.4 million of prepaid expenses.

Guidance for Fiscal Year ’24

In terms of guidance for the fiscal year 2024, we estimate net revenue to be $32.5 million to $34 million, due to slower demand in the rehabilitation space and changes to our private label customer relationships.

We are not providing gross margin guidance currently. Given our reductions in revenue expectations, we are seeking improved stabilization in the business before considering reinstituting such guidance.

SG&A is anticipated to be in the range of 30% to 32% of net sales for the fiscal year.

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.

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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