Dynatronics Corporation · OTC:DYNTQ
Dynatronics — Q3 FY2022 Earnings Presentation
18 slides from Dynatronics's earnings presentation, May 12, 2022
Slide 1: Dynatronics Corporation
Dynatronics Corporation Transformation To Accelerate Growth | Growing Sales Above The Market May 12,2022 | NASDAQ:DYNT > Dynatronics, BIRDE CRON’
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 — Third Quarter FY '22
KEY TAKEAWAYS — THIRD QUARTER FY ‘22 Confident in long-term growth G Now growing sales above the market, after several years of below market growth Clear customer strategy rewarding loyalty across all brands. Q3 FY '22 sales and Q4 ‘22 sales guidance are the fourth and fifth consecutive quarters of
Slide 4: +20% Annual Sales Growth Guidance in FY '22
+20% ANNUAL SALES GROWTH GUIDANCE IN FY ’22 Quarterly Sales Annual Sales 5 consecutive quarters of net sales growth exc the market and our baseline sal Raised guidance midpoint to $44.5M in FY ‘22, 20% organic net sales growth in FY ‘22 Up +20% Organic “$44.5M “$9.25M Baseline’ FY '22E® FY '23E Base
Slide 5: Gross Margin Target >40%
GROSS MARGIN TARGET >40% Gross Margin (GAAP) + Gross margin (GM) expansion is short-term focus >40% consolidated GM is long term target = Delivering higher GM: ~ Shifted focus to higher margin, differentiated products that we manufacture ~ Scale: Continue to grow sales faster than the '5% to 6% mark
Slide 6: Guidance for FY '22 Details
GUIDANCE FOR FY ’22 DETAILS Pt Ss + Net sales of $44.0 to $45.0 in FY '22, assuming continued growth in procedure volume and related site visits despite the impact of the COVID-19 global pandemic and supply chain challenges. The FY ’22 net sales midpoint of $44.5M is a 20.3% improvement relative to
Slide 7: Well-Positioned to Execute Our Near and Long-Term Growth Strategies
WELL-POSITIONED TO EXECUTE OUR NEAR AND LONG-TERM GROWTH STRATEGIES + Improve long-term margins through consolidations and financial dis: + Timely commercial launch of new products focused on growth markets + Optimize manufacturing and supply chain + Rationalize product portfolio and pricing for att
Slide 8: Dynatronics Net Sales Growth > Market Growth
DYNATRONICS NET SALES GROWTH > MARKET GROWTH DYNT Organic ..-Bolstered by DYNT Net Sales Growth > Market Growth... Inorganic Opportunities Higher Growth | t 5% to 6%! Product Innovations Market Growth | Win Market Share Organic Market Growth is 5% to 6% 15% to 6% is the estimated growth of selective
Slide 9: How We Win Market Share
HOW WE WIN MARKET SHARE Grow net sales faster than the 5% to 6% market growth rate Proven playbook: Listen to dealers and customers and deliver to them * Strong reputation for quality products and delivery experience Commercial * Consistently differentiated experience to our dealers and customers Ex
Slide 10: Q3 FY '22 New Products to Drive Faster Long-Term Growth
Q3 FY ’22 NEW PRODUCTS TO DRIVE FASTER LONG-TERM GROWTH Ramped-up cadence of product innovations utilizing dealer and customer feedback New Product Category For Us! Building a Comprehensive Portfolio of Metal Tables ‘Three Hausmann™ metal tables in our new Mammoth product line launched in January 20
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. John Krier Previous Afiiatons GBREG. Deloitte. Chief Executive Officer ‘Appointed Dynatronics CEO in July 2020. Prior to that was VP, Marketin
Slide 12: Dynatronics Is in Attractive, Growing Markets
DYNATRONICS IS IN ATTRACTIVE, GROWING MARKETS Selective Target Rehabilitation Favorable and Bracing Markets +4.9B' Market Trends r a Demographics demand for rehabilitation support systems AGR procing 65% £ eee Aging but active population, rising obesity, —a0 63% cAGR, $ in billions and higher focus
Slide 13: 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 RIGHT SIZED TARGET Revenue between SSM - $30M ENHANCED PORTFOLIO Products fo adjacent mark on existing or cet segment Acquisition PROFITA
Slide 14: Q3 FY '22 Financial and Operations Highlights
Q3 FY ‘22 FINANCIAL AND OPERATIONS HIGHLIGHTS Financial Highlights: + 14% increase in net sales to $10.3M in Q3 FY '22 relative to continued product net sales baseline in FY ‘21. Our net sales guidance midpoint is $11.35M in Q4 FY ‘22, up 15.8% relative to $9.8M continued product sales in the same p
Slide 15: Investment Highlights of Dynatronics
INVESTMENT HIGHLIGHTS OF DYNATRONICS Dynatronics is growing net sales above the market Expanding + 5% to 6% U.S. market growth. Significant U.S. TAM of +$4.9 billion Product Poutolo + Pure play focus on rehabilitation and bracing markets ving G Markets + Exciting new product pipeline: launched six n
Slide 16: Investor Relations Contacts
Dynatronics Corporation Investor Relations Contacts Skyler Black Jeff Christensen Dynatronics Darrow Associates ir@dynatronics.com ichristensen@darrowir.com > Dynatronics, BIRDE CRON’
Slide 17: 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 Headquatiers Eagan, MN 52 Week Share Price Range + Driving change and results
Slide 18: Capitalization / Ownership
CAPITALIZATION / OWNERSHIP Share count as of March 31, 2022 Common Shares Outstanding 17,946,416 8% Convertible Preferred Stock 3,351,000 Total Shares 2 6 Market Cap of Equity (including convertible preferred stock)” $ 14,049,905 Debt? $0 Less: Cash 2,500,000 Net Bank Debt as of 3/31/2022 $ (2,500,0