Young Innovations, Inc. Announces Results for the Quarter and Six-Months Ended June 30, 2010
ST. LOUIS, July 20 /PRNewswire-FirstCall/ -- Young Innovations, Inc. (Nasdaq: YDNT) today announced results for the second quarter and the six-months ended June 30, 2010.
Sales for the second quarter of 2010 were $25.8 million, an increase of 4.6% over the $24.6 million reported for the second quarter of 2009. Income from operations increased 5.5% to $5.7 million from $5.4 million in the prior year. Net income for the second quarter increased 11.1% to $3.7 million from $3.3 million in 2009. Diluted earnings per share for the second quarter of 2010 were $0.46, an increase of 9.5% over the $0.42 reported in the prior year quarter. Diluted earnings per share were affected by equity compensation expense of $0.03 and $0.04 for the quarters ended June 30, 2010 and 2009 respectively, while diluted shares outstanding for the quarter increased 1.3% to 8.0 million.
For the six months ended June 30, 2010, sales were $50.6 million, increasing 4.5% from the $48.4 million reported in the prior year period. Income from operations increased 6.8% to $11.1 million from $10.4 million in the prior year six-month period. Net income was $7.3 million, increasing 11.9% from $6.5 million in the prior year. Diluted earnings per share were $0.90 for the six months ended June 30, 2010, an increase of 9.8% from $0.82 in the same period of 2009. Diluted earnings per share were affected by equity compensation expense of $0.07 for the six months ended June 30, 2010 and 2009, respectively, while diluted shares outstanding for the six months ended June 30, 2010 increased 2.1% to 8.1 million.
We were pleased with the overall strength of our sales in the quarter. We continued to experience solid demand for our consumable product offering. Furthermore, sales of our diagnostic products showed strong growth for the first time since 2008. A stronger US dollar negatively impacted sales by $100,000 in the quarter.
The management team demonstrated increased focus and improved execution in the quarter. Our new products and marketing activities continue to gain momentum in the market. Favorable product mix and improved operating efficiencies generated improvement in profitability.
While we remain cautious about the economy, in general, and the unemployment rate, in particular, we are encouraged by our performance in the second quarter and the first half of the year. We continued to strengthen the Company's balance sheet during the quarter as we further reduced bank debt to roughly $6 million. As our organization continues to develop we are becoming increasingly confident about our ability to capitalize on the many opportunities for growth we see before us.
Young Innovations develops, manufactures and markets supplies and equipment used by dentists, dental hygienists, dental assistants and consumers. The Company's consumables product offering includes disposable and metal prophy angles, prophy cups and brushes, dental micro-applicators, moisture control products, infection control products, dental handpieces (drills) and related components, endodontic systems, orthodontic toothbrushes, flavored examination gloves, children's toothbrushes, and children's toothpastes. In addition, the Company offers a line of diagnostic products that includes panoramic X-ray machines and related supplies. The Company believes it is a leading U.S. manufacturer or distributor of prophy angles and cups, liquid surface disinfectants, dental micro-applicators and obturation units designed for warm, vertical condensation.
Investors are cautioned that this press release as well as other reports and oral statements by Company officials may contain certain forward-looking statements as defined in the Private Securities Litigation and Reform Act of 1995. Forward-looking statements include statements which are predictive in nature, which depend upon or refer to future events or conditions and which include words such as "expects," "anticipates," "intends," "plans," "believes," "estimates," or similar expressions. These statements are not guarantees of future performance and the Company makes no commitment to update or disclose any revisions to forward-looking statements, or any facts, events or circumstances after the date hereof that may bear upon forward-looking statements. Because such statements involve risks and uncertainties, actual actions and strategies and the timing and expected results thereof may differ materially from those expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, those disclosed in the Company's Annual Report on Form 10-K and other reports filed with the Securities and Exchange Commission.
Young Innovations, Inc. | ||||||||||
Consolidated Statements of Income | ||||||||||
(In thousands, except earnings per share data) | ||||||||||
(Unaudited) | ||||||||||
(In Thousands USD) | ||||||||||
Three Months Ended | Six Months Ended | |||||||||
June 30, | June 30, | |||||||||
2010 | 2009 | Change | 2010 | 2009 | Change | |||||
Net Sales | $ 25,778 | $ 24,637 | 4.6% | $ 50,559 | $ 48,401 | 4.5% | ||||
Cost of Goods Sold | $ 11,182 | 10,953 | 2.1% | $ 22,161 | 21,407 | 3.5% | ||||
Gross Profit | $ 14,596 | $ 13,684 | 6.7% | $ 28,398 | $ 26,994 | 5.2% | ||||
% of Net Sales | 56.6% | 55.5% | 56.2% | 55.8% | ||||||
Selling, General and Administrative Expense | $ 8,903 | 8,286 | 7.4% | $ 17,298 | 16,601 | 4.2% | ||||
% of Net Sales | 34.5% | 33.6% | 34.2% | 34.3% | ||||||
Income from Operations | 5,693 | 5,398 | 5.5% | 11,100 | 10,393 | 6.8% | ||||
% of Net Sales | 22.1% | 21.9% | 22.0% | 21.5% | ||||||
Interest expense, net | 82 | 180 | 183 | 334 | ||||||
Other (income) expense, net | (65) | 55 | (148) | 42 | ||||||
Income Before Taxes | 5,676 | 5,163 | 9.9% | 11,065 | 10,017 | 10.5% | ||||
Provision for Income Taxes | 1,975 | 1,832 | 3,807 | 3,531 | ||||||
Net Income | $ 3,701 | $ 3,331 | 11.1% | $ 7,258 | $ 6,486 | 11.9% | ||||
% of Net Sales | 14.4% | 13.5% | 14.4% | 13.4% | ||||||
Basic Earnings Per Share | $ 0.46 | $ 0.42 | 9.5% | $ 0.91 | $ 0.82 | 11.0% | ||||
Basic Weighted Average Shares Outstanding | 7,971 | 7,873 | 7,978 | 7,842 | ||||||
Earnings Per Share (Diluted) | $ 0.46 | $ 0.42 | 9.5% | $ 0.90 | $ 0.82 | 9.8% | ||||
Diluted Weighted Average Shares Outstanding | 8,039 | 7,934 | 8,050 | 7,885 | ||||||
Young Innovations, Inc. | |||||
Consolidated Balance Sheet | |||||
June 30, 2010 and December 31, 2009 | |||||
(in thousands, except per share data) | |||||
(Unaudited) | |||||
June 30 | December 31 | ||||
Assets | 2010 | 2009 | |||
Current assets | |||||
Cash | $ 405 | $ 67 | |||
Accounts receivable, net | 11,575 | 11,397 | |||
Inventories | 14,248 | 14,816 | |||
Other current assets | 5,283 | 4,849 | |||
Total current assets | 31,511 | 31,129 | |||
Property, plant and equipment, net | 33,445 | 33,668 | |||
Goodwill | 80,200 | 80,374 | |||
Other intangible assets | 11,797 | 12,097 | |||
Other assets | 2,266 | 2,732 | |||
Total assets | $ 159,219 | $ 160,000 | |||
Liabilities and Equity | |||||
Current liabilities | |||||
Accounts payable and accrued liabilities | $ 9,601 | $ 8,377 | |||
Total current liabilities | 9,601 | 8,377 | |||
Long-term debt | 5,942 | 13,979 | |||
Long-term secured borrowing | 305 | 550 | |||
Deferred income taxes | 15,886 | 15,947 | |||
Other noncurrent liabilities | 264 | 282 | |||
Total liabilities | 31,998 | 39,135 | |||
Stockholders' equity | |||||
Common stock | 102 | 102 | |||
Additional paid-in capital | 23,323 | 23,985 | |||
Retained earnings | 152,416 | 145,756 | |||
Common stock in treasury, at cost | (48,231) | (49,090) | |||
Accumulated other comprehensive income (loss) | (389) | 112 | |||
Total stockholders' equity | 127,221 | 120,865 | |||
Total liabilities and stockholders' equity | $ 159,219 | $ 160,000 | |||
SOURCE Young Innovations, Inc.
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