DYNTQ 8-K
DYNATRONICS CORP (DYNTQ)
8-K
2021-02-11
For: 2021-02-11
View Original
Added on
April 06, 2026
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_____________________________________
FORM 8-K
CURRENT REPORT
Pursuant
to Section 13 or 15(d) of the Securities Exchange Act of
1934
Date of
Report (Date of earliest event reported): February 11, 2021
__________________________________________
Dynatronics Corporation
(Exact
name of registrant as specified in its charter)
__________________________________________
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Utah
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0-12697
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87-0398434
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(State
or other jurisdiction of incorporation)
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Commission
File Number
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(IRS
Employer Identification Number)
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1200 Trapp Rd, Eagan, Minnesota
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55121
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(Address
of principal executive offices)
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(Zip
Code)
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(801) 568-7000
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(Registrant's
telephone number, including area code)
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Check
the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant
under any of the following provisions:
☐ Written
communications pursuant to Rule 425 under the Securities Act (17
CFR 230.425)
☐ Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
☐ Pre-commencement communications
pursuant to Rule 14(d)-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
☐ Pre-commencement communications
pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
Securities
registered pursuant to Section 12(b) of the Act:
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Title of each class
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Trading Symbol(s)
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Name of each exchange on which registered
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Common
stock, no par value
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DYNT
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The
Nasdaq Capital Market
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Indicate
by check mark whether the registrant is an emerging growth company
as defined in Rule 405 of the Securities Act of 1933 (§230.405
of this chapter) or Rule 12b-2 of the Securities Exchange Act of
1934 (§240.12b-2 of this chapter).
Emerging
growth company ☐
If an
emerging growth company, indicate by check mark if the registrant
has elected not to use the extended transition period for complying
with any new or revised financial accounting standards provided
pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial
Condition
On
February 11, 2021, Dynatronics Corporation (the "Company") issued a press release
reporting, among other things, financial results relating to the
quarter ended December 31, 2020. Also,
as previously announced by a press release issued on January 29,
2021, on February 11, 2021, the Company held a conference call and
slide presentation in which executives of the Company reviewed
the fiscal 2021 second quarter results. A replay will be
available through February 18, 2021, by dialing
877-481-4010, using passcode 39738. The full text of the press release is
furnished herewith as Exhibit 99.1. The slide presentation that
accompanied the earnings conference call is furnished as Exhibit
99.2.
The
information under this Item 2.02 and in Exhibits 99.1 and 99.2, is
being “furnished” and is not being “filed”
for purposes of Section 18 of the Securities Exchange Act of 1934
and is not to be incorporated by reference into any filing of the
registrant under the Securities Act of 1933, whether made before or
after the date hereof, regardless of any general incorporation
language in any such filing, except as shall be expressly set forth
by specific reference in such a filing.
Item
9.01 Financial Statements and Exhibits
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Exhibit Number
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Description
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Press
Release dated February 11, 2021
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Slide
Presentation accompanying investor conference call held February
11, 2021
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SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.
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DYNATRONICS
CORPORATION
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Date: February 11,
2021
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By:
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/s/
John
Krier
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Name:
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John
Krier
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Title:
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Chief Executive
Officer
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Exhibit 99.1
Dynatronics Reports Second Quarter Results
Eagan, MN (February 11, 2021) – Dynatronics
Corporation (NASDAQ:DYNT), a leading manufacturer of
athletic training, physical therapy, and rehabilitation products,
today announced financial results for its second quarter of fiscal
year 2021 for the period ended December 31, 2020.
Fiscal Q2 2021 Financial Highlights
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Net sales of $12
million were steady with net sales of $12 million in the prior
quarter
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Selling, general,
and administrative expenses of $3.9 million were 7% lower compared
to the prior quarter
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Generated $1.5
million in positive operating cash flow, representing 34% gain over
the prior quarter
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Zero balance on our
line of credit and a borrowing base of approximately $5.4 million
as of the end of Fiscal Q2 2021
Subsequent to the Quarter’s End
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Announced launch of
two new Hausmann tables with initial orders
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Received
notification from NASDAQ that DYNT shares have regained compliance
with minimum bid price listing requirements
CEO Commentary
“Over
the last two quarters, we have taken a number of decisive actions
to stabilize and strengthen our business to take advantage of the
growth markets we serve,” said John Krier, President and CEO
of Dynatronics Corporation. “We generated over $1 million in
operating cash flow for the second consecutive quarter, reduced our
operating expenses, and added top-notch leadership experience to
the team. We introduced two new products in January, and we expect
additional product launches focusing on our growth
markets.”
“Our
fiscal year 2021 second quarter results reflect continued
challenges due to COVID-19, including customers operating with
reduced capacity and operating hours, higher delivery and shipment
costs and extended handling times. Despite these challenges, we are
excited to transition the company to a more stable and predictable
financial model that better leverages our brands and our customer
base as it takes advantage of growth opportunities. We are
expecting some continued volatility ahead as we optimize the
business to emphasize higher margins and stable cash flow
generation,” concluded Mr. Krier.
Financial Review
Net
sales for the quarter ended December 31, 2020 were $12.0 million, a
decrease of $3.2 million, or 21%, compared to $15.2 million in the
same period of the prior year. Gross profit decreased $1.2 million,
or 27%, to $3.3 million, or 28% of net sales. The decrease in net
sales and gross profit were primarily attributable to COVID-19
precautions and associated impacts of the pandemic on changes to
the mix of sales driven by changes in elective procedures. Gross
margin for the quarter was 27.9% compared to 30.2% in the same
period of the prior year.
Net
loss for the quarter ended December 31, 2020 was approximately $0.7
million, compared to a net loss of $0.1 million for the same
quarter of the prior fiscal year. The company experienced positive
cash flow from operating activities of $1.5 million in the second
quarter of fiscal year 2021.
Outlook
Due to
continued uncertainty resulting from the ongoing COVID-19 pandemic,
Dynatronics will not provide guidance for fiscal year
2021.
Conference Call
Dynatronicswill
hold a conference call for investors on February 11, 2021 at 8:30
AM ET to discuss the results. Interested persons may access the
live call by dialing 888-506-0062 (U.S./Canada callers) or
973-528-0011 (international callers). It is recommended that
participants call or log on 10 minutes ahead of the scheduled start
time to ensure proper connection. Accompanying slides will be
available with webcast registration or on the Dynatronics website
in the investor relations section.
About Dynatronics Corporation
Dynatronics
Corporation 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®, Dynatron
Solaris®, Hausmann™, Physician’s
Choice®,
and PROTEAM™, among others. More information is available at
www.dynatronics.com.
Forward Looking Statements
This
press release contains forward-looking statements within the
meaning of Section 27A of the Securities Act and Section 21E of the
Securities Exchange Act. Those statements include references to the
company’s expectations and similar statements. Such
forward-looking statements reflect the views of management at the
time such statements are made. These statements include
references to our financial guidance, expected revenues, gross
profit, and selling, general, and administrative expenses. These
forward-looking statements are subject to a number of risks,
uncertainties, estimates, and assumptions that may cause actual
results to differ materially from current expectations including
uncertainties involving the impact of the COVID-19
pandemic. The contents of this release should be considered in
conjunction with the risk factors, warnings, and cautionary
statements contained in the company’s most recent filings
with the Securities and Exchange Commission, including the
company’s Annual Report on Form 10-K for the fiscal year
ended June 30, 2020, which was filed on September 24, 2020.
Dynatronics does not undertake to update its forward-looking
statements, whether as a result of new information, future events,
or otherwise.
Summary Financial Results
Following
is a summary of operating results for the periods ended December
31, 2020 and 2019, the balance sheet highlights at December 31,
2020 and June 30, 2020 and the operating cash flow for quarters
ended December 31, 2020 and 2019.
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Summary
Selected Financial Data
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Statement
of Operation Highlights
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In thousands, except share and per share amounts
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Quarter Ended
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Six Months Ended
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December 31,
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December 31,
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2020
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2019
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2020
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2019
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Net
sales
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$11,968
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$15,197
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$24,101
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$31,587
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Cost
of sales
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8,627
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10,611
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16,858
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21,847
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Gross
profit
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3,341
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4,586
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7,243
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9,740
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27.9%
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30.2%
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30.1%
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30.8%
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Selling,
general, and admin. expenses
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3,938
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4,618
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8,183
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9,543
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Other
(expense) income, net
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(66)
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(105)
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(100)
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(236)
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Income
tax provision
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(10)
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-
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(10)
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-
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Net
loss
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$(673)
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$(137)
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$(1,050)
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$(39)
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Deemed
dividend on convertible preferred stock and accretion of
discount
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(51)
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(109)
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(51)
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(109)
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Convertible
preferred stock dividend, in common stock
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(182)
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(202)
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(376)
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(369)
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Net
loss attributable to common stockholders
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$(906)
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$(448)
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$(1,477)
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$(517)
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Net
loss attributable to common stockholders per common share - basic
and diluted
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$(0.06)
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$(0.05)
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$(0.10)
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$(0.06)
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Weighted-average
common shares outstanding - basic and diluted
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14,601,186
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9,023,406
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14,340,774
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8,800,184
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Balance Sheet Highlights
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In thousands
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December 31,
2020
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June 30,
2020
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Cash
and cash equivalents
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$3,610
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$2,316
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Trade
accounts receivable, net
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5,068
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4,894
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Inventories,
net
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6,141
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8,372
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Prepaid
& other
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3,297
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493
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Total
current assets
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$18,116
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$16,075
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Accounts
payable
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$4,827
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$3,014
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Accrued
payroll and benefits expense
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1,476
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1,205
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Accrued
expenses
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1,372
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768
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Other
current liabilities
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3,345
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1,679
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Line
of credit
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-
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1,013
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Total
current liabilities
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$11,020
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$7,679
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Operating
Cash Flow Highlights
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In thousands
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Quarter Ended
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Six Months Ended
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December 31,
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December 31,
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2020
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2019
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2020
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2019
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Net
loss
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$(673)
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$(138)
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$(1,051)
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$(39)
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Depreciation
and amortization
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368
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400
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756
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802
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Stock
based compensation
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51
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58
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98
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188
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Receivables
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541
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315
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(174)
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507
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Inventory
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(237)
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(254)
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986
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144
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Prepaid
and other assets
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(361)
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(103)
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(681)
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(118)
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Accounts
payable, accrued expenses, and other liabilities
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1,818
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646
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2,698
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1,432
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Net
cash provided by operating activities
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$1,507
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$924
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$2,632
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$2,916
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Contact:
Dynatronics
Corporation
Investor
Relations
Skyler
Black
(801)
676-7201
Darrow
Associates
Peter
Seltzberg, Managing Director
(516)
419-9915
For
additional information, please visit: www.dynatronics.com
Connect
with Dynatronics on LinkedIn
Exhibit
99.2
