Dynatronics Corporation (NASDAQ:DYNT) Q1 2024 Earnings Call Transcript

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Scott Henry: Okay. Well, I think it’s growing around 3% or 4%, but I don’t know either. What about, Brian, now that you’re taking the CEO role again, how do you think of the acquisition opportunities? Would you like to get more aggressive there or how are the – a lot of times there’s a disconnect among the private players and to what the market thinks their values, their company’s worth and what they do? Is that gap closing? You’re just trying to get a sense of the environment and how aggressive or not aggressive Dynatronics may be?

Brian Baker: Right. I believe that acquisitions are still going to be part of our growth strategy. I think it’s more the timing of when we start looking at potential deals. I think right now our focus is let’s stabilize the business. Let’s get the company profitable and then once we’re stabilized and we’re profitable and there is a different dynamic in the business that will allow us to be more opportunistic on acquisitions. So I think it’s just a matter of timing right now, Scott.

Scott Henry: Now, just to pose a question, because I look at a lot of companies all the time and there’s always good days and bad days and businesses get better and then something happens and they get worse and you end up – you rise above and sink below the water level continuously. Sometimes you just got to do an acquisition to get scale, to stay above the water level all the time. How do you think of that about that statement relative to Dynatronics, meaning maybe, yes, there will be good quarters and bad quarters, but maybe you just need to get a little bigger to get to scale?

Brian Baker: Yes. I see where you’re coming from in those comments, Scott, and there is good quarters and bad quarters and you’ve kind of got to look at where the opportunities are coming from and how they fit into your business and how that may help with scale. So we’re keeping our eyes open to what the opportunities are. I don’t want to get too far ahead of myself and say if there was a really good opportunity, we’re going to be positioned well to be able to execute against something. So I don’t want to get into that kind of detail, but I’ll say we’re keeping our eyes open. And right now what our focus is running the business that we currently have and making sure that we’re doing the right things to stabilize it, find those opportunities to grow revenue, get profitable, work on how we service our debt, and that’s what the immediate focus is of the team.

We don’t want to lose sight if there’s a strategic opportunity that we’re not taking that opportunity seriously and assessing for what it is.

Scott Henry: Okay, good. I appreciate that, color. That should do it for me. Good luck, Brian, and as well to John.

John Krier: Thank you, Scott.

Brian Baker: Yes, thanks, Scott.

Operator: Thank you. There are no further questions in the queue. I would like to turn the floor back over to John for any closing comments.

John Krier: Thank you, operator, and thank you all for your interest in Dynatronics. I am pleased to be supporting Brian and Gabe in this transition and look forward to watching the success of the organization in the quarters and years to come. If you have any further questions, please direct them to IR at Dynatronics.com. Have a great day.

Operator: Thank you. The conference has now ended. Please disconnect your lines at this time, and we thank you for your participation.

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