Dynatronics Corporation Reports First Quarter Fiscal Year 2024 Financial Results

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 first quarter of fiscal year 2024 ended September 30, 2023.

CEO Commentary

“We met our sales expectations and were profitable on an EBITDA basis in the first quarter,” said Brian Baker, Chief Executive Officer of Dynatronics. “We must continue to improve our performance and refine our execution, but the early results this year are encouraging. Our teams are committed to meeting our customers’ needs, while focusing on cost reduction and margin expansion opportunities over the long-term.”

Key Financial Results

Q1 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 $9.4 million.
• Gross profit margin of 24.7%.
• Net loss of $0.3 million improved from $0.5 million in Q1 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 September 30, 2023, $1.8 million drawn, with an additional $2.8 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 $0.9 million and funded $0.8 million of prepaid expenses.

Guidance for Fiscal Year ’24

Dynatronics reaffirmed net sales guidance for fiscal year ’24 of $34 million to $37 million. 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 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