Dynatronics Announces 57% increase in Top Line Sales for Fiscal 2018 First Quarter

COTTONWOOD HEIGHTS, Utah, Nov. 14, 2017

Net sales for the quarter increased 56.8 percent to $12.8 million, compared to $8.2 million in the same period of the prior year.  Gross profit for the quarter increased 55.3 percent to $4.3 million representing 33.9 percent of sales, compared to $2.8 million, or 34.2 percent of sales, for the quarter ended September 30, 2016.  The year-over-year increase in net sales was driven primarily by our acquisition of Hausmann Industries in April 2017, which contributed $4.7 million of revenue in the quarter.

"The 56.8 percent increase in sales for the quarter reflects the execution of the acquisition strategy we have outlined to our shareholders," explained Kelvyn Cullimore, Jr., chairman and CEO.  "During the next several quarters we will continue to see the positive impact of our acquisition strategy through the addition of Hausmann sales as well as sales from our acquisition of Bird & Cronin that closed on October 2, 2017."

Net income for the quarter ended September 30, 2017, was $199,000, compared to a net loss of $286,000 for the quarter ended September 30, 2016.  The $484,000 improvement in net income was primarily attributable to a $1,545,000 increase in gross profit attributable to Hausmann.  Selling, general and administrative expenses also increased during the period by $1,058,000.  Hausmann accounted for $950,000 of these increases while transaction costs of $212,000 associated with the Bird and Cronin acquisition also contributed to increased expenses for the quarter. 

Net income applicable to common stockholders for the quarter ended September 30, 2017, was $12,000 compared to a loss of $375,000 for the quarter ended September 30, 2016.  Net income applicable to common stockholders includes the dividends accrued on preferred stock during the quarter, which totaled $187,000 and were subsequently paid in common stock.

"The acquisitions of Hausmann and Bird & Cronin demonstrate our ability to execute our strategic plan and are a key indicator of Dynatronics' very promising future," stated Kelvyn H. Cullimore Jr., chairman and CEO.  "We also consummated a strategic selling alliance with Zimmer MedizinSysteme GmbH, which we expect to further leverage our U.S. commercial infrastructure.  We continue to work diligently to stimulate organic growth, complete value-enhancing acquisitions, and increase the company's cash flow.  We remain committed to delivering greater value to our shareholders and customers."