COTTONWOOD HEIGHTS, Utah, Nov. 14, 2016 /PRNewswire/ -- Dynatronics Corporation (NASDAQ:DYNT) today announced financial results for its fiscal 2017 first quarter ended September 30, 2016.
Net sales for the quarter increased 10.3 percent to $8.2 million, compared to $7.4 million in the same period of the prior year. Gross profit for the quarter increased 11.3 percent representing 34.2 percent of sales, compared to 33.9 percent of sales for the quarter ended September 30, 2015. Gross margin during the current quarter was positively impacted by a greater proportion of sales through our sales force of direct and contract sales representatives.
"The 10.3 percent increase in sales for the quarter is reflective of the investment we have made in expanding our network of sales coverage and providing tools to focus our sales team on key revenue drivers," explained Jeff Gephart, senior vice president of sales at Dynatronics. "During the next several quarters we will continue to refine our sales management methods to better achieve our short- and long-term objectives of sales growth, margin growth, and expanded coverage in the markets we serve."
Net loss for the quarter ended September 30, 2016, was $286,000, compared to a net loss of $182,000 for the quarter ended September 30, 2015. The increase in net loss is attributable primarily to 1) higher expenses related to our Tennessee operation where we implemented a change in management personnel, and 2) increased expenses in sales and marketing related primarily to hiring additional sales management and new marketing initiatives, and 3) higher professional fees.
Net loss applicable to common stockholders for the quarter ended September 30, 2016, was $375,000 compared to a loss of $262,000 for the quarter ended September 30, 2015. Net loss applicable to common stockholders recognizes the dividend accrued on preferred stock during the quarter, which totaled $89,000 and was payable in common stock.
"We continue to see the market respond favorably to the investments we have made to strengthen our sales and marketing organization," stated Kelvyn H. Cullimore Jr., chairman and CEO. "We are making strides in organizing and implementing management practices to create a more scalable platform, and we are seeing the initial results of those investments. While some of those investments are adding costs, we are confident they are also helping build the platform for long-term growth."
Dynatronics has scheduled a conference call for investors on November 14, 2016, at 4:00 PM ET. Those wishing to participate should call (877) 471-2694 and use the passcode 19071861.
The following is a summary of the financial results as of September 30, 2016 and June 30, 2016 and for the quarters ended September 30, 2016 and 2015:
Summary Selected Financial Data
Statement of Operations Highlights
In thousands, except per share amounts
Cost of sales
Selling, general, and admin. expenses
Research and development expenses
Other expense, net
Loss before income taxes
Income tax (provision) benefit
8% convertible preferred stock dividend
Net loss attributable to common stockholders
Net loss attributable to common stockholders per share - basic
Weighted-average common shares outstanding
Balance Sheet Highlights
In thousands, except per share amounts
Sept. 30, 2016
June 30, 2016
Cash and cash equivalents
Trade accounts receivable
Prepaid & other
Total current assets
Accrued payroll and benefits expense
Other current liabilities
Total current liabilities
About Dynatronics Corporation
Dynatronics manufactures, markets and sells advanced-technology medical devices, orthopedic soft goods and supplies, treatment tables and rehabilitation equipment for the physical therapy, sports medicine, chiropractic and podiatry markets. More information is available at www.dynatronics.com.
Safe Harbor Notification
This press release contains forward-looking statements. Those statements include references to the company's expectations and similar statements. Forward-looking statements in this press release include statements regarding expansion into new markets. 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, inventory risks due to shifts in market demand, 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.
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SOURCE Dynatronics Corporation