Dynatronics today announced financial results for its fiscal 2018 second quarter ended December 31, 2017.
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| [13-February-2018] |
| COTTONWOOD HEIGHTS, Utah, Feb. 13, 2018 /PRNewswire/ -- Dynatronics Corporation (NASDAQ:DYNT) today announced financial results for its fiscal 2018 second quarter ended December 31, 2017. Net sales for the quarter increased $9.4 million, or 107.5 percent, to $18.1 million, compared to $8.7 million in the same period of the prior year. Gross profit for the quarter increased $2.7 million, or 87.7 percent, to $5.8 million. The increase in net sales and gross profit were attributable to our acquisitions of Hausmann and Bird & Cronin in the past year. These acquired operations contributed sales of $4.4 million and $5.7 million, respectively, and gross profit of $1.1 million and $2.1 million, respectively, in the quarter. Revenue from the legacy operation declined approximately $700,000, primarily attributable to a single order in 2017 not repeating in 2018. Gross margin for the quarter was 31.9 percent, compared to 35.3 percent in the same period of the prior year. As with sales and gross profit, the gross margin reflects the consolidation of all operations for the first time. “With the acquisitions of Hausmann and Bird & Cronin, we more than doubled our sales over the prior year’s quarter,” emphasized Kelvyn H. Cullimore Jr., Dynatronics’ CEO. “The integrations of both Hausmann and Bird & Cronin have gone smoothly as we expected and are generating positive cash flow for the consolidated operations.” Net income for the quarter ended December 31, 2017 was approximately $14,000, compared to a net loss of $95,000 for the quarter ended December 31, 2016. The improvement in net income is attributable primarily to gross profit contributed from the acquisitions of Hausmann and Bird & Cronin, partially offset by the selling, general and administrative costs from those operations. In the quarter, we recorded $325,000 in expenses related to an abandoned R&D project and we incurred $100,000 in acquisition costs. Depreciation, amortization, and other non-cash expenses were $362,000 in the quarter. Net loss applicable to common stockholders for the quarter ended December 31, 2017 was approximately $1,315,000 compared to a loss of $560,000 for the quarter ended December 31, 2016. Net loss applicable to common stockholders recognizes a deemed dividend of $1,024,000 related to the issuance and partial conversion of the Series C Preferred Stock issued in October 2017. This deemed dividend is a non-cash accounting charge that does not result in the payment of dividends in cash or stock. We also paid dividends of $105,000 in cash and incurred $200,000 of accrued dividends subsequently paid with shares of our common stock. The increase in dividends in the quarter as compared with the prior year period is attributable to the issuance of additional preferred shares in December 2016, April 2017, and October 2017. “This quarter is a significant milestone in that it reflects, for the first time, the full impact of both of the acquired operations,” explained Mr. Cullimore. “We are confident in our strategy and will continue to execute on organic growth and strategic acquisitions. With the foundation established by these two recent acquisitions, the investments we are continuing to make in seasoned executive leaders, and our partnership with Prettybrook Partners, we believe we are gaining momentum in all of our divisions.” Dynatronics has scheduled a conference call for investors on February 13, 2018, at 4:30 PM EST. Those wishing to participate should call (877) 407-8033 or (201) 689-8033 for international callers. The following is a summary of the financial results for the quarters ended December 31, 2017 and 2015 and as of December 31, 2017 and June 30, 2016:
Summary Selected Financial Data Statement of Operations Highlights In thousands, except per share amounts Quarter Ended Six Months Ended December 31, December 31, ------------ ------------ 2017 2016 2017 2016 ---- ---- ---- ---- Net sales $18,085 $8,713 $30,883 $16,876 Cost of sales 12,315 5,640 20,773 11,008 Gross profit $5,770 $3,073 $10,109 $5,868 Selling, general, and admin. expenses $5,110 $2,851 $8,933 $5,616 Research and development expenses 553 309 805 588 Other expense, net 92 8 159 45 Loss before income taxes $14 ($95) $213 ($381) Income tax (provision) benefit 0 0 0 0 Net income (loss) $14 ($95) $213 ($381) === ==== ==== ===== Deemed dividend on 8% convertible preferred stock ($1,024) ($376) ($1,024) ($376) Preferred stock dividend, cash (105) 0 (105) 0 8% convertible preferred stock dividend (201) (89) (388) (178) ---- --- ---- ---- Net loss attributable to common stockholders ($1,315) ($560) ($1,303) ($935) Net loss attributable to common stockholders per share - basic (0.23) (0.19) (0.25) (0.33) Weighted-average common shares outstanding 5,735,159 2,881,111 5,241,604 2,861,299
Balance Sheet Highlights In thousands, except per share amounts Dec. 31, 2017 June 30, 2017 --------- ------------- Cash and cash equivalents $3,652 $255 Trade accounts receivable 7,222 5,281 Inventories, net 11,605 7,398 Prepaid & other 1,033 537 Total current assets $23,513 $13,471 Accounts payable $4,451 $2,335 Accrued payroll and benefits expense 1,359 1,473 Accrued expenses 714 657 Other current liabilities 1,155 1,001 Line of credit 6,743 2,172 Total current liabilities $14,422 $7,637
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Company Codes: NASDAQ-SMALL:DYNT |
