LONDON, UK / ACCESSWIRE / September 29, 2017 / Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for Dynatronics Corp. (NASDAQ: DYNT), following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/'symbol=DYNT. The Company announced on September 27, 2017, that it has agreed to acquire substantially all the assets of Bird & Cronin, Inc., a Minneapolis manufacturer of orthopedic soft goods and specialty patient care products. Post the closure of the transaction, Bird & Cronin will be operated as a wholly-owned subsidiary of Dynatronics. For immediate access to our complimentary reports, including today's coverage, register for free now at:
http://protraderdaily.com/register/
At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on DYNT. Go directly to your stock of interest and access today's free coverage at:
http://protraderdaily.com/optin/'symbol=DYNT
The Announcement
The purchase price for the transaction is about $14.5 million, payable in cash and stock of Dynatronics, with an additional contingent payment payable after 12 months on the basis of post-closing revenues of Bird & Cronin. The payment is structured in the form of $9.1 million through cash while the issuance of $3.6 million will be through the shares of Dynatronics' Series D Preferred stock.
The Company has agreed to pay initially between $0.5 million and $1.5 million in cash to the seller, where about $0.9 million in cash and $0.4 million in stock will be subject to a holdback, with 50% of the holdback being released in one year from the closing date and the other 50% would be released about two years from the closing date.
The Hausmann Acquisition
Dynatronics announced the agreement to acquire Hausmann Industries ("Hausmann") on March 22, 2017, for about $10.0 million in cash, subject to adjustments. Pro-forma combined sales for Dynatronics and Hausmann for the 12-month period ended December 31, 2015, was about $45 million, where Hausmann's products accounted for about 32% of the combined revenues.
Hausmann is based in New Jersey, and manufactures laminated treatment tables and wood products, which are complementary to the Company's existing portfolio of solid wood and custom design treatment tables. Hausmann primarily sells to third-party dealers and generates a lower gross margin percentage that historically reported by Dynatronics, but resulted in lower selling costs.
Q4 FY17 Results
Dynatronics also announced its Q4 FY17 results and full-year FY17 results for the period ended June 30, 2017. During Q4 FY17, the Company successfully bought and integrated Hausmann, followed by the Bird & Cronin acquisition. According to the Company, the Hausmann acquisition, coupled with Bird & Cronin and the legacy of the Dynatronics business, enhances its competitive position and places the Company to further implement its growth strategy.
For full-year FY17, Dynatronics reported an increase in net sales of 17.6% to $35.8 million versus $30.4 million for FY16. The profit for FY17 rose 11.1% to $11.5 million representing 32.2% of sales versus 34.0% of the reported sales for FY16. The acquisition of the assets of Hausmann during Q4 FY17 has led to increases in net sales and gross profits, according to the Company, where the Hausmann operations accounted for $3.8 million of the sales increase and about $1.1 million increase in the gross profits during both Q4 FY17 and full-year FY17.
Last Close Stock Review
On Thursday, September 28, 2017, Dynatronics' stock closed the trading session at $2.25, dropping 1.28% from its previous closing price of $2.28. A total volume of 60.82 thousand shares were exchanged during the session, which was above the 3-month average volume of 9.71 thousand shares. The stock currently has a market cap of $8.01 million.
Pro-Trader Daily:
Pro-Trader Daily (Pro-TD) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. PRO-TD has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles, and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.
PRO-TD has not been compensated; directly or indirectly; for producing or publishing this document.
PRESS RELEASE PROCEDURES:
The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer") represented by a credentialed financial analyst [for further information on analyst credentials, please email contact@protraderdaily.com. Rohit Tuli, a CFA® charter-holder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by PRO-TD. PRO-TD is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.
NO WARRANTY
PRO-TD, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. PRO-TD, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, PRO-TD, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.
NOT AN OFFERING
This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither PRO-TD nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://protraderdaily.com/disclaimer/.
CONTACT
For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:
Email: contact@protraderdaily.com
Phone number: (917) 341.4653
Office Address: Mainzer Landstrasse 50 Frankfurt am Main, Germany 60325
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.
SOURCE: Pro-Trader Daily
