Young Innovations, Inc. Announces Record Sales and EPS for the Quarter and Nine-Months Ended September 30, 2010 and Declares Quarterly Dividend

Oct 20, 2010, 18:38 ET from Young Innovations, Inc.

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.

Young Innovations, Inc.

Consolidated Statements of Income

(In thousands, except earnings per share data)

(Unaudited)

(In Thousands USD)

Three Months Ended

Nine Months Ended

September 30,

September 30,

2010

2009

Change

2010

2009

Change

Net Sales

$ 26,423

$ 24,805

6.5%

$ 76,982

$ 73,206

5.2%

Cost of Goods Sold

$ 11,841

10,857

9.1%

$ 34,003

32,264

5.4%

Gross Profit

$ 14,582

$ 13,948

4.5%

$ 42,979

$ 40,942

5.0%

% of Net Sales

55.2%

56.2%

55.8%

55.9%

Selling, General and Administrative Expense

$   8,501

8,298

2.4%

$ 25,799

24,899

3.6%

% of Net Sales

32.2%

33.5%

33.5%

34.0%

Income from Operations

6,081

5,650

7.6%

17,180

16,043

7.1%

% of Net Sales

23.0%

22.8%

22.3%

21.9%

Interest expense, net

81

172

263

506

Other (income) expense, net

62

53

(86)

95

Income Before Taxes

5,938

5,425

9.5%

17,003

15,442

10.1%

Provision for Income Taxes

2,019

1,951

5,826

5,482

Net Income

$   3,919

$   3,474

12.8%

$ 11,177

$   9,960

12.2%

% of Net Sales

14.8%

14.0%

14.5%

13.6%

Basic Earnings Per Share

$     0.49

$     0.44

11.4%

$     1.40

$     1.27

10.2%

Basic Weighted Average Shares Outstanding

7,953

7,912

7,969

7,866

Earnings Per Share (Diluted)

$     0.49

$     0.43

14.0%

$     1.39

$     1.25

11.2%

Diluted Weighted Average Shares Outstanding

8,013

8,040

8,038

7,939

Young Innovations, Inc.

Consolidated Balance Sheet

September 30, 2010 and December 31, 2009

(in thousands, except per share data)

(Unaudited)

September 30

December 31

Assets

2010

2009

Current assets

Cash

$                339

$                67

Accounts receivable, net

13,401

11,397

Inventories

15,911

14,816

Other current assets

4,641

4,849

Total current assets

34,292

31,129

Property, plant and equipment, net

33,435

33,668

Goodwill

80,312

80,374

Other intangible assets

11,697

12,097

Other assets

2,136

2,732

Total assets

$         161,872

$       160,000

Liabilities and Equity

Current liabilities

Accounts payable and accrued liabilities

$           10,827

$           8,377

Total current liabilities

10,827

8,377

Long-term debt

4,200

13,979

Long-term secured borrowing

166

550

Deferred income taxes

15,886

15,947

Other noncurrent liabilities

261

282

Total liabilities

31,340

39,135

Stockholders' equity

Common stock

102

102

Additional paid-in capital

23,747

23,985

Retained earnings

156,020

145,756

Common stock in treasury, at cost

(49,219)

(49,090)

Accumulated other comprehensive income (loss)

(118)

112

Total stockholders' equity

130,532

120,865

Total liabilities and stockholders' equity

$         161,872

$       160,000

SOURCE Young Innovations, Inc.



RELATED LINKS

http://www.ydnt.com