Dynatronics Corporation · OTC:DYNTQ
Dynatronics — Q4 FY2022 Earnings Presentation
16 slides from Dynatronics's earnings presentation, Sep 22, 2022
Slide 1: Growing Sales Above The Market | Margin Expansion Developing
EXHIBIT 99.2 Growing Sales Above The Market l Margin Expansion Developing September 22, 2022 | NASDAQ:DYNT Dynatronics Corporation
Slide 2: Safe Harbor
This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Those statements include references to the company’s expectations and similar statements. Such forward-looking statements refl
Slide 3: Key takeaways – Fourth Quarter FY '22
Key takeaways – Fourth Quarter FY ‘22 Confident in revenue growth trajectory and gross margin expansion The company continues to expect volatility due to the challenges related to the broader economic environment and the COVID-19 global pandemic, including higher raw material, delivery and shipment
Slide 4: Q4 FY '22 and Full-year FY '22 Financial and Operations Highlights
Q4 FY ‘22 and Full-year FY ‘22 Financial and Operations Highlights Financial Highlights: 14.3% increase in net sales to $11.2M in Q4 FY ’22 relative to continued product net sales in FY ‘21. Annual net sales of $44.3M in FY ‘22, up 19.7% relative to $37M continued product net sales baseline set in A
Slide 5: Annual sales growth guidance in FY '23
+5% Annual sales Growth guidance in FY ’23 Baseline1 Organic Q4 FY ’21 Organic Quarterly Sales Q1 FY ’222 Baseline1 Organic FY ’222 Organic Annual Sales Net sales distribution across the quarters in FY ‘22 aligned with historical trends: higher in the first and fourth quarters, and lower in the seco
Slide 6: Significant progress to gross margin
Significant progress to gross margin Target >40% Gross Margin (GAAP) Gross margin includes impact of COVID-19 and supply chain challenges in each quarter of FY ’22 and continued volatility expected in FY ‘23. 27.0% 29.8% 19.8% 22.4% >40% FY ’21 Q1 FY ’22 Q2 FY ’22 Q3 FY ’22 Q4 FY ’22E FY ’23E Gross
Slide 7: Guidance for FY '23 Details
Net Sales:: Net sales of $45.0 to $48.0M in FY ’23. The FY ’23 net sales midpoint of $46.5M is a 5% improvement relative to the $44.3M net sales in FY ‘22. guidance for FY ‘23 Details Gross Margin: The company continues to expect volatility due to the challenges related to the broader economic envir
Slide 8: Well-positioned to execute our near and long-term growth strategies
Well-positioned to execute our near and long-term growth strategies Deliver commercial success, emphasizing quality for cost and a differentiated customer experience Improve long-term margins through consolidations and financial discipline Timely commercial launch of new products focused on growth m
Slide 9: Dynatronics Net Sales Growth > Market Growth
Dynatronics Net Sales Growth > Market Growth 3% to 4%1 Market Growth Higher Growth Organic Market Growth is 3% to 4% Win Market Share Product Innovations Synergistic M&A DYNT Organic Net Sales Growth > Market Growth… …Bolstered by DYNT Inorganic Opportunities 1 3% to 4% is the estimated growth of se
Slide 10: How we win market share
How we win market share Proven playbook: Listen to dealers and customers and deliver to them Strong reputation for quality products and delivery experience Consistently differentiated experience to our dealers and customers New dealers and customers. Brand awareness Superior economic value: volume-t
Slide 11: Focused Leadership
Focused Leadership Proven commercial success and business transformations in medical device markets. New talent helping to drive growth and win market share. Previous Affiliations Previous Affiliations Previous Affiliations Previous Affiliations Previous Affiliations Previous Affiliations Previous A
Slide 12: M&A Strategy
M&A Strategy Acquisition growth opportunities in a fragmented market to add scale with an accomplished M&A team and demonstrated ability to successfully integrate
Slide 13: Investment highlights of Dynatronics
investment highlights of Dynatronics Up 19.7% YOY net sales growth in FY ’22 from continued product net sales baseline. Underpenetrated (˜10%) customer base + share gain opportunity + value creating M&A strategy Gross margin of 23.4% in Q4 FY ‘22, 3.6-point increase since Q2. >40% gross margin is lo
Slide 14: Investor Relations Contacts
Dynatronics [email protected] Investor Relations Contacts Dynatronics Corporation
Slide 15: Dynatronics at a Glance
Dynatronics at a Glance + Thousands of Private Practice Therapists and Athletic Trainers Provider of high-quality restorative medical device products to the orthopedic and rehabilitation industry designed to accelerate achieving optimal health – favorable market trends Driving change and results to
Slide 16: Capitalization / Ownership
Capitalization / Ownership Convertible one for one into Common; 8% annual dividend payable in cash or stock at company preference Share price of $0.62 on 9/15/22 Includes Line of Credit only Share count as of June 30, 2022