Young Innovations, Inc. Announces Record Sales and EPS for the Quarter Ended March 31, 2010

ST. LOUIS, April 21 /PRNewswire-FirstCall/ -- Young Innovations, Inc. (Nasdaq: YDNT) today announced record sales and earnings per share for the quarter ended March 31, 2010.

Sales for the first quarter of 2010 were $24.8 million, an increase of $1.0 million or 4.3% from the $23.8 million reported in the first quarter of 2009. Income from operations increased 8.2% to $5.4 million in the first quarter of 2010 from $5.0 million in the first quarter of 2009. Net income increased 12.8% to $3.6 million compared with $3.2 million in the first quarter of 2009. Diluted earnings per share increased 10.0% in the first quarter of 2010 to $0.44 from $0.40 in the prior year quarter. Diluted earnings per share were affected by equity compensation expense of $0.04 for the quarter ending March 31, 2010, as compared to $0.03 in the first quarter of 2009.

Overall demand for our products remained stable in the first quarter. Increased sales of consumable products were somewhat offset by weaker results in our diagnostic product line. Given the ongoing high unemployment rates in the U.S., the Company believes that the increased strength of consumable product sales may be more a function of timing of orders than a reflection of general market growth. A weaker U.S. dollar provided a benefit to sales of approximately $118,000. The improvement in operating margin was primarily the result of solid expense management.

We are pleased overall with the company's first quarter performance. Our new product initiatives continue to progress, and our sales and marketing organization continues to strengthen. Our outlook remains cautious as economic conditions, in general, and the unemployment rate, in particular, will continue to impact the dental industry. However, we believe that having reduced debt by $5.5 million to $8.5 million at the end of the first quarter, the company is well positioned to capitalize on future growth opportunities.

A conference call has been scheduled for Thursday, April 22, 2010 at 11:00 A.M. Central Time and can be accessed through InterCall at http://tinyurl.com/yiq110 or on 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 guaranties 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.

SOURCE Young Innovations, Inc.