Dynatronics Corporation · OTC:DYNTQ
Dynatronics — Q2 FY2023 Earnings Presentation
17 slides from Dynatronics's earnings presentation, Feb 9, 2023
Slide 1: Confident in Long-Term Differentiated Strategy
Dynatronics Corporation Confident in Long-Term Differentiated Strategy February 9,2023. | NASDAQ:DYNT »> Dynatronics, BIRDE, CRONIN’
Slide 2: Safe Harbor
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 sta
Slide 3: Key Takeaways: Q2 FY '23
KEY TAKEAWAYS: Q2 FY ‘23 Confident in revenue growth trajectory and gross margin expansion 01 02 03 7th consecutive quarter of organic revenue growth at or above market growth rate percentages + Demonstrated execution with a clean balance sheet Gross Margin at 28.1% an 8.4% improvement over prior ye
Slide 4: Financial Results — Q2 FY '23 and YTD FY '23
FINANCIAL RESULTS — Q2 FY ’23 AND YTD FY ‘23 Confident in strategic direction and none of the macro-economic challenges change the fundamental opportunity for Dynatronics to win Financial Results (USD Million) Q2 FY 23 YTD FY ‘23 Financial Drivers Net Sales $10.9 $22.9 + Macro-economic headwinds imp
Slide 5: +5% Annual Sales Growth Guidance in FY '23
+5% ANNUAL SALES GROWTH GUIDANCE IN FY ’23 Annual Sales Quarterly Sales Guidance midpoint of $46.5M in FY 23 of 7 consecutive quarters Represents 5% organic net sales growth of net sales growth at or above the market growth rate of approximately 3% Up ~5% Up ~20% Organic $12.3M $12.1M Organic.) $11.
Slide 6: Significant Progress to Gross Margin Target >40%
SIGNIFICANT PROGRESS TO GROSS MARGIN TARGET >40% + Six-Point Gross Margin Improvement Plan: Gross Margin (GAAP) 30.2% A u, COVID-19 FY'21 QUFY'22 Q2FY'22 Q3FY'22 Q4FY'22 QIFY'23 Q2FY'23 FY'23E Gross margin includes impact of COVID-19 and supply chain challenges in each quarter of FY ‘22 and continue
Slide 7: Guidance for FY '23 Details
GUIDANCE FOR FY ‘23 DETAILS Pet SO + 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. Gross Margin: + Anticipate gross margin expansion in FY ’23 relative to FY ‘22. The Company will provide gross margin g
Slide 8: Well-Positioned to Execute
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 operating efficiencies and financial discipline + Timely commercial launch of new products focused
Slide 9: New Product Percentage of Sales
NEW PRODUCT PERCENTAGE OF SALES Standing start of 0% in January 2021 to ~6% YTD is a good start; however, we pian to move faster in product releases + The Dynatronics team started at 0% at the Actual: Quarterly New Product Percentage of Sales beginning of our transformation in 2020 7.00% on our Vita
Slide 10: How We Win Market Share
HOW WE WIN MARKET SHARE Grow net sales faster than the 3% to 4% market growth rate Proven playbook: Listen to dealers and customers and deliver to them Superior ‘* Strong reputation for quality products and delivery experience Commercial * Consistently differentiated experience to our dealers and cu
Slide 11: Reverse Stock Split
REVERSE STOCK SPLIT ‘C EFFECTIVE 5:00PM ET ON FEBRUARY 1, 2023 ‘Gj 1-FOR-5 SPLIT AS APPROVED BY THE BOARD AND SHAREHOLDERS OUTSTANDING SHARES OF COMMON STOCK mY REDUCED FROM APPROXIMATELY 19.6 MILLION TO APPROXIMATELY 3.9 MILLION In the case of fractional shares, shares were rounded up, with no cash
Slide 12: Investment Highlight of Dynatronics
INVESTMENT HIGHLIGHT OF DYNATRONICS Differentiated strategy, strong management team, confident in long-term strategy x + 3% U.S. market growth. Significant U.S. TAM of +$3.5 billion eA - Pure play focus on rehabilitation and bracing markets + Exciting new product pipeline: launched nine new products
Slide 13: Investor Relations Contacts
Dynatronics Corporation Investor Relations Contacts Dynatronics [email protected] »> Dynatronics, BIRDE, CRONIN’
Slide 14: Focused Leadership
FOCUSED LEADERSHIP Proven commercial success and business transformations in medical device markets. New talent helping to drive growth and win market share. 14 Functional Leaders John Krier ‘Sarah Mealman Pmedtronic GD Matt Papke Finance @BRES. Marketing President and Chief i Executive Officer Deto
Slide 15: Dynatronics at a Glance
DYNATRONICS AT A GLANCE + Provider of high-quality restorative medical device products to the KEY STATISTICS orthopedic and rehabilitation industry designed to accelerate achieving optimal health — favorable market trends Headquarters Eagan, MN 52 Week Share Price Range + Driving change and results
Slide 16: Capitalization / Ownership
CAPITALIZATION / OWNERSHIP Share count as of February 2, 2023 Common Shares Outstanding 3,918,600 8% Convertible Preferred Stock” 670,200 Total Shares 388,800 Market Cap of Equity (including convertible preferred stock)” $ — 10,691,904 Debt $0 Less: Cash 700,000 Net Bank Debt as of 12/31/2022 $ (700
Slide 17: Cap Table Comparison
CAP TABLE COMPARISON Pre and post reverse stock split capitalization table for comparison DYNT Capitalization Table Pre-reverse stock split # of Common DYNT Shares Outstanding Shares Equivalent Common Shares Outstanding 19,593,210 Convertible Preferred Stock - AU” 1,992,000 Convertible Preferred Sto