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.”
Dyn
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