Dynatronics Corporation · OTC:DYNTQ
Dynatronics — Q3 FY2021 Earnings Presentation
16 slides from Dynatronics's earnings presentation, May 13, 2021
Slide 1: Business and Product Portfolio Optimization
Dynatronics Corporation Business and Product Portfolio Optimization Driving Change and Delivering Results May 13,2021 | NASDAQ:DYNT > Dynatronics, EIRDE, 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: Up-Leveled Leadership
UP-LEVELED LEADERSHIP John Krier Norm Roegner President & Chief Executive Officer Chief Financial Officer Background Background Appointed CEO in July 2020 John joined Dynatronics as CFO in March 2020, and prior to that VP, ‘Commercial Operations at Breg since 2014, long-standing customer and partner
Slide 4: Dynatronics Is in Attractive, Growing Markets
DYNATRONICS IS IN ATTRACTIVE, GROWING MARKETS Favorable Selected Rehabilitation Market Trends and Bracing Markets ($B)! ho ONE ‘Aging population, obesity, higher focus on ons Demographi wellzes accelerating depend for Ta CASE. $ in billions rehabilitation support systems eho Value-Based Physicians a
Slide 5: 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 + Timely commercial launch of new products focused on growth markets + Rationalize product portfolio and pricing for attractive grow
Slide 6: Business and Product Portfolio Optimization
BUSINESS AND PRODUCT PORTFOLIO OPTIMIZATION PLAN UPDATE ANNOUNCED ON APRIL 22, 2021 Sales and Marketing Platform to Focus on Growth Markets + Focus the team on therapeutic modalities, treatment furniture and orthopedic bracing products, manufactured by the company + Eliminate ~1,600 (low-margin, unp
Slide 7: Focus on Strategic Growth Markets
FOCUS ON STRATEGIC GROWTH MARKETS Previously Moving Forward Strategic Focus Distributed and manufactured products, mixed Active product management, exclusively focused on manufactured brands, ssales channels, complex operations, inconsistent ‘emphasis on margin expansion and expanding differentiatio
Slide 8: Business Optimization Plan — On Track
BUSINESS OPTIMIZATION PLAN — ON TRACK New, experienced leadership team, driving on-going change and delivering results. More to come across all of these areas. INITIATIVES Growth Through Strategic Recruitment Recruiting leadershi ~ VP, Global Operations and ‘Supply Chain = Director. Stratogic Accoun
Slide 9: 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 Reveni Products focused es ENHANCED PORTFOLIO adjacent market se: Acquisition Targets: VALUE BUYER WITH FOCUSED CRITER
Slide 10: Third Quarter FY'21
THIRD QUARTER FY’21 D nue and profit growth, * Advanced business and product portfolio = GAAP net income improved to $118k, up. optimization plan. Actions target higher from net loss of $1.1M in same quarter last ‘gross margin, operating income, cash flow year ‘rom operations, and EBITDA in FY'22 re
Slide 11: Financial Outlook
FINANCIAL OUTLOOK Revenues and Margins: + The eliminations announced today are expected to result in approximately $11 million in annualized net sales reduction, but with increased gross margin, operating income and EBITDA, in FY ‘22 results relative to FY ‘21. Manufacturing Footprint: + In addition
Slide 12: Investment Highlights
INVESTMENT HIGHLIGHTS (NASDAQ: DYNT) NECN - Well-respected brands standing the test of time in each market Products + Relevant product portfolio serving our growth markets Growth Hanae + Enhanced management focus exclusively on our manufactured brands + Dynatronics is building an accomplished transf
Slide 13: Investor Relations Contacts
Dynatronics Corporation Investor Relations Contacts Skyler Black Peter Seltzberg Dynatronics _ Darrow Associates ir@dynatronics.com pseltzberg@darrowir.com EBRDE CRON
Slide 14: Up-Leveled Leadership
UP-LEVELED LEADERSHIP Is Creating Significant Transformative Opportunities Brian Baker 25+ yoars of experience in | MikeShoup es medical-device industry S__—_—_—_— prior to that, was leading Board Member and Active Consultant =, Quality & Regulatory QARA at Salter Labs ‘Specializes in driving Former
Slide 15: Dynatronics at a Glance
DYNATRONICS AT A GLANCE + Provider of high-quality restorative medical device products to the orthopedic and rehabilitation industry — favorable market + Optimization and operating leverage to deliver a compelling and durable business model, demonstrating strong financial performance from emerging s
Slide 16: Capitalization / Ownership
CAPITALIZATION / OWNERSHIP Share count as of March 31, 2021 Common Shares Outstanding 17,205,108 8% Convertible Preferred Stock'") 3,351,000 Total Shares 20,556,108 Market Cap of Equity (including convertible preferred stock)” $ 23,639,524 Debt”) $0 Less: Cash 4,500,000 Net Bank Debt as of 3/31/2021