Dynatronics Corporation · OTC:DYNTQ
Dynatronics — Q3 FY2023 Earnings Presentation
12 slides from Dynatronics's earnings presentation, May 11, 2023
Slide 1: Reset in the Transformation Journey
Dynatronics Corporation Reset in the Transformation Journey May 11,2023 | NASDAQ:DYNT > Dynatronics, HAUSMANN SYRDE, 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 st
Slide 3: Key Takeaways: Q3 FY '23
01 KEY TAKEAWAYS: Q3 FY ‘23 02 Resetting expectations due to transformation challenges 03 Resetting revenue baseline with a changing customer base + Customer competitive acquisitions and SKU reductions reducing revenue moving forward + FY '23 revenue of $39.5 to $40.5M + Q4 revenue of $7.5 to $8.5M
Slide 4: Financial Results — Q3 FY '23 and YTD FY '23
FINANCIAL RESULTS — Q3 FY ’23 AND YTD FY ‘23 Gross profit and EBITDA improvement on less revenue not enough to overcome net sales disruption Financial Results (USD Million) Q3 FY ’23 Q3 FY’22 YTD FY ‘23 YTD FY ‘22 Net Sales $9.2 $10.3 $32.2 $33.1 Organic Growth (10.5%) 2.5% (2.9%) Gross Profit a2 23
Slide 5: Gross Margin Expansion Remains Key Focus
GROSS MARGIN EXPANSION REMAINS KEY FOCUS Gross Margin (GAAP) FY'21 QUFY'22 Q2FY'22 Q3 FY'22 Q4 FY'22 Qt FY'23 Q2FY'23 Q3FY'23 Future Target, Gross margin includes impact of COVID-19 and supply chain challenges in each quarter of FY "22 and continued volatility in the macro-economic envionment expect
Slide 6: Guidance for FY '23 Details
GUIDANCE FOR FY ‘23 DETAILS + Net sales of $39.5 to $40.5M in FY '23. The FY ‘23 net sales midpoint of $40.0M is a 9.7% reduction relative to the $44.3M net sales in FY ‘22. + Reset baseline sales performance to the approximately $9.25 million continued product net sales per quarter established in A
Slide 7: 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 plan 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 on our Vitality
Slide 8: Investment Highlight of Dynatronics
INVESTMENT HIGHLIGHT OF DYNATRONICS Stable market, disciplined execution providing opportunities for success Expanding Product Portfolio Serving Stable Markets Proven Finan Approximately 0-1% U.S. market growth. Significant U.S. TAM of +$3.5 billion Pure play focus on rehabilitation and bracing mark
Slide 9: Investor Relations Contacts
Dynatronics Corporation Investor Relations Contacts Dynatronics ir@dynatronics.com > Dynatronics, HAUSMANN SYRDE, CRONIN
Slide 10: Focused Leadership
FOCUSED LEADERSHIP Proven commercial success and business transformations in medical device markets. New talent helping to drive growth and win market share. Functional Leaders John Krier OBREG President, Chief Executive Officer, and Deloitte. Brian Baker SeaSpine Chief Operational INTEGRA'R r Offic
Slide 11: Dynatronics at a Glance
DYNATRONICS AT A GLANCE + Provider of high-quality restorative medical device products to the 1" orthopedic and rehabilitation industry designed to accelerate achieving optimal health — favorable market trends Driving change and results to deliver a compelling and durable business model, demonstrati
Slide 12: Capitalization / Ownership
CAPITALIZATION / OWNERSHIP Share count as of May 8, 2023 ‘Common Shares Outstanding 4,044,830 8% Convertible Preferred Stock 670,200 Total Shares 4,715,030 Market Cap of Equity (including convertible preferred stock)” _$ _ 6,648,192 Debt” $0 Less: Cash 700,000 Net Bank Debt as of 3/31/2023 $ ___ (70