Dynatronics Announces Fiscal 2016 Second Quarter Financial Results

COTTONWOOD HEIGHTS, Utah, Feb. 16, 2016

Net sales for the quarter were $7.5 million, a 2.4 percent increase compared to $7.3 million in the same period of the prior year. Gross margin for the quarter was 35.8 percent, compared to 33.7 percent for the quarter ended December 31, 2014, reflecting a greater percentage of sales of proprietary therapeutic products which carry higher-than-average margins. 

"While we are in the early stages of our growth initiatives, they showed promising results this quarter," commented Kelvyn H. Cullimore Jr., chairman and chief executive officer. "Our sales team delivered double-digit growth in sales of our top-selling SolarisPlus product line which is the centerpiece of our organic growth strategy.  These high-margin proprietary products drove gross profit up by 8.7 percent in the quarter."

Net sales for the six months ended December 31, 2015, were $14.9 million, a 2.4 percent increase compared to $14.5 million in the same period of the prior year. Gross margin for the six-month period improved to 34.9 percent, compared to 34.7 percent for the six-month period ended December 31, 2014. 

"We continue to benefit from a better market environment today, compared to the past several years," commented Larry K. Beardall, executive vice president of sales. "New initiatives incentivizing sales of our core modalities accounted for much of the increased sales during the quarter.  Those initiatives encouraged sales representatives to expand efforts into new accounts and markets.  In addition, the incentives promoted renewed contact with dormant former customers. 

"Internationally, the recent regulatory approvals in Singapore and Peru extend our geographical reach," added Beardall. "We anticipate obtaining regulatory approvals in other foreign markets, including China and Mexico, later this year."

Net loss for the quarter ended December 31, 2015, was $124,681, compared to $133,543 for the quarter ended December 31, 2014. Net loss applicable to common shareholders for the quarter ended December 31, 2015, was $205,181, compared to $133,543 for the quarter ended December 31, 2014. Net loss for the six months ended December 31, 2015, was $306,243, compared to $92,619 for the six months ended December 31, 2014. Net loss applicable to common shareholders for the six months ended December 31, 2015, was $467,243, compared to $92,619 for the six months ended December 31, 2014. Net loss applicable to common shareholders recognizes the accrued dividends on preferred stock during the current quarter and six-month periods, which totaled $80,500 and $161,000, respectively and was payable in common stock.