SALT LAKE CITY, Feb. 15, 2011 /PRNewswire/ -- Dynatronics Corporation (Nasdaq: DYNT) today announced that its board of directors has approved a $1 million open market share repurchase program of the company's common stock.
"This decision reflects the confidence of management and our board of directors in the future of the company and our commitment to increasing shareholder value," said Kelvyn H. Cullimore, president of Dynatronics. "Based on recent announcements of contract awards with large group purchasing organizations and other anticipated opportunities, we expect to see revenues continue to grow over the next two years. Based on this outlook and other factors, this newly authorized $1 million share repurchase plan provides us with the flexibility, when market conditions warrant, to reduce our outstanding shares and offset potential future dilution from awards under our equity-based compensation plans." Since January 3, 2011, the Company repurchased approximately 72,000 shares under a prior formal plan of repurchase.
Dynatronics expects to make the discretionary purchases with cash from operating activities and amounts available from its line of credit. At the present price of $.90 per share, the full repurchase would buy approximately 1,111,000 shares of stock, or approximately 8 percent of the company's outstanding shares. The purchases will be made at the discretion of management over an indefinite period and the program can be terminated at any time. The company is not obligated to make any purchases under the plan. Cullimore continued, "In authorizing this repurchase plan, our board of directors has expressed its judgment that a share repurchase program at this time is in the best interests of the company and its shareholders, and does not expect it to impact the company's ability to execute its growth plans."
Dynatronics manufactures, markets and distributes advanced-technology medical devices, orthopedic soft goods and supplies, treatment tables and rehabilitation equipment for the physical therapy, pain management, sports medicine, chiropractic, podiatry, plastic surgery, dermatology and other medical, cosmetic and aesthetic markets.
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