ST. LOUIS, Oct. 20 /PRNewswire-FirstCall/ -- Young Innovations, Inc. (Nasdaq: YDNT) today announced record sales and earnings per share for the third quarter and the nine-months ended September 30, 2010.
Sales for the third quarter of 2010 were $26.4 million, an increase of 6.5% over the $24.8 million reported for the third quarter of 2009. Income from operations for the third quarter increased 7.6% to $6.1 million from $5.7 million in the prior year quarter. Net income for the third quarter increased 12.8% to $3.9 million from $3.5 million in the third quarter of 2009. Diluted earnings per share for the third quarter of 2010 were $0.49, an increase of 14.0% over the $0.43 reported in the prior year quarter. Diluted earnings per share were affected by equity compensation expense of $0.04 and $0.03 in the third quarter of 2010 and 2009 respectively, and diluted shares outstanding for the quarter were 8.0 million for the quarter, unchanged from the prior year quarter.
For the nine months ended September 30, 2010, sales were $77.0 million, increasing 5.2% from the $73.2 million reported in the prior year period. Income from operations increased 7.1% to $17.2 million for the nine months ended September 30, 2010 from $16.0 million in the prior year period. Net income was $11.2 million for the nine months ended September 30, 2010, increasing 12.2% from $10.0 million in the prior year period. Diluted earnings per share were $1.39 for the nine months ended September 30, 2010, an increase of 11.2% from $1.25 in the prior year period. Diluted earnings per share were affected by equity compensation expense of $0.11 and $0.10 for the nine months ended September 30, 2010 and 2009, respectively, while diluted shares outstanding for the nine months ended September 30, 2010 increased 1.2% to 8.0 million from the prior year period.
We are pleased with the overall strength of our sales in the quarter. Our diagnostic product line continued to strengthen during the third quarter as sales increased for the second consecutive quarter. Demand for our consumables products also remained strong, posting solid increases over the prior year quarter. A stronger U.S. dollar negatively impacted sales by approximately $145,000.
We remain focused on executing our strategy for growth. We added resources to support and enhance our sales and marketing efforts. We increased the operating efficiency of the business through process automation and consolidating our Brownsville, Texas facility into our Earth City operation. We also continued to make progress on our new product development program. During the quarter, we launched a pink disposable prophy angle in support of breast cancer awareness and added a fluoride varnish to our Zooby line of children's themed preventive products.
We are pleased with our employees' successful execution of our strategy during difficult economic times. The Company's balance sheet continued to strengthen as bank debt was further reduced to roughly $4.2 million by the end of the third quarter. We will continue to invest in systems, product development, and processes in order to maximize opportunities for growth.
The company also announced that on October 19, 2010 the Board of Directors declared a quarterly dividend of $0.04 per share, payable by the Company on December 15, 2010 to all shareholders of record on November 15, 2010.
A conference call has been scheduled for Thursday, October 21, 2010 at 1:00 P.M. Central Time and can be accessed through InterCall at http://tinyurl.com/Quarter32010 or the Company's website, www.ydnt.com.
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.
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SOURCE Young Innovations, Inc.