Home HealthCare Healthcare Stock in Focus: Dynatronics Corporation (NASDAQ: DYNT)

Healthcare Stock in Focus: Dynatronics Corporation (NASDAQ: DYNT)


On Monday, Shares of Dynatronics Corporation (NASDAQ: DYNT), gained 3.23percent to $3.20. The 52-week range of the share price is from $2.29 – $3.45. The beta value for this stock stands at 0.55 points, while its earnings per share (EPS) was $0.98. The company has total market capitalization of $9.87M and a total of 3.04M outstanding shares.

Dynatronics Corporation (NASDAQ: DYNT) recently declared financial results for its fiscal 2017 3rd- quarter finished March 31, 2017.

For the quarter, net sales raised 4.10 percent to $7.70 M, contrast to $7.40 M in the same period of the prior year.  The raise was driven by a 14.00 percent development in sales of therapeutic modalities, up $243,000.00, and a 13.00 percent raise in sales of distributed capital, up $269,000.00 over the previous year period. Sales within other product categories reduced by $205,000.00 contrast to the 3rd- quarter of 2016.

Gross profit for the quarter raised by 8.70 percent to $2.70 M, or 35.00 percent of net sales, contrast to 33.60 percent of sales for the quarter finished March 31, 2016.  Gross profit and gross margin throughout the quarter were positively influenced by a greater proportion of sales derived from therapeutic modalities, which generate a higher gross margin than the company’s combined average gross margin.

“The $215,000.00 raise in gross profit for the quarter reflects our strategy to focus on our core competency, proprietary capital equipment, with an emphasis on therapeutic modalities,” explained Jeff Gephart, Senior VP of Sales.  “We carry on to refine our sales strategies to attain the best outcomes for our clients and our investors.  We will carry on to concentrate on sales development, margin growth, and extfinished coverage in the markets we serve.”

Selling, general and administrative cost for the quarter were up $533,000.00.  Selling costs accounted for $118,000.00 of the incline and were related mainly to the hiring of extra sales administration and marketing personnel to implement the company’s planned development plans.  General and administrative costs for the quarter included acquisition related expenditures of $486,000.00, numbering legal, accounting, and other professional fees incurred in connection with the company’s acquisition of Hausmann Industries, Inc. which closed on April 3, 2017.

Net loss for the quarter finished March 31, 2017, was approximately $755,000.00, contrast to a net loss of $451,000.00 for the quarter finished March 31, 2016, attributable mainly to the acquisition costs incurred in the quarter.  Net loss applicable to common stockholders for the quarter was approximately $849,000.00, contrast to $531,000.00 for the previous year period, mainly because of the acquisition costs in the present period.  Net loss applicable to common stockholders also includes $94,000.00 of dividends accrued on preferred stock throughout the quarter.  These dividends were paid partially in common stock ($78,000.00) and partially in cash ($16,000.00).

As stated formerly, on March 21, 2017, the company reached a definitive agreement to acquire the assets of Hausmann Industries, Inc., a New Jersey corporation.  Financing for the acquisition was offered by the sale of equity securities in a private offering and borrowings under an asset-based credit facility with Bank of the West.  The acquisition transaction and private offering closed on April 3, 2017.  The credit facility funded on March 31, 2017, adding cash of $2.50 M to boost cash at the end of the period to approximately $3.40 M.  The line of credit gives for spinning credit borrowings by the company in an amount up to the smaller of $8.00 M and a borrowing base computed as offered in the terms of the loa agreement with the bank.  Amounts outstanding bear interest at LIBOR plus 2.250 percent.

“Hausmann is an excellent planned fit for Dynatronics, as it further solidifies our commitment to and presence in the physical therapy and athletic training space,” said Kelvyn Cullimore, Jr., Dynatronics’ Chairman and CEO.  “Our fiscal 2017 3rd- quarter has been one of the most transformative quarters in the company’s history.  With the Hausmann acquisition, we have productively performed on a key part of our development policy and we imagine the attained business combined with Dynatronics will result in the company being cash flow positive,” said Cullimore.  “throughout the quarter, we also hired a new vice president of operations, Cyndi McHenry, who will keep us concentrated on improving manufacturing and enhancing gross margins.”

Dynatronics has planned a conference/discussion call for investors on May 15, 2017, at 4:30 PM ET. Those wishing to participate should call (800) 263-0877 and use the password 3450199.

Analyst recommendation for this stock stands at 1.00.