ST. LOUIS, July 21 Young Innovations, Inc. (Nasdaq: YDNT) today announced record earnings for the second quarter and for the first six-months ended June 30, 2009.
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Sales for the second quarter of 2009 were $24.6 million, a decrease of 4.9% over the $25.9 million reported for the second quarter of 2008. Income from operations increased 4.8% to $5.4 million from $5.2 million in the prior year. Net income for the second quarter increased 7.4% to $3.3 million from $3.1 million in 2008. Diluted earnings per share for the second quarter of 2009 were $0.42, an increase of 10.5% over the $0.38 reported in the prior year quarter. Diluted earnings per share were affected by equity compensation expense of $0.04 and $0.03 for quarters ended June 30, 2009 and 2008, respectively, while diluted shares outstanding for the quarter declined 2.7% to 7.9 million.
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For the six months ended June 30, 2009, sales were $48.4 million, decreasing 3.8% from the $50.3 million reported in the prior year period. Income from operations increased 6.9% to $10.4 million from $9.7 million in the prior year six-month period. Net income was $6.5 million, increasing 9.3% from $5.9 million in the prior year. Diluted earnings per share were $0.82 for the six months ended June 30, 2009, an increase of 13.9% from $0.72 in the same period of 2008. Diluted earnings per share were affected by equity compensation expense of $0.07 and $0.06 for the six months ended June 30, 2009 and 2008, respectively, while diluted shares outstanding for the six months ended June 30, 2009 declined 4.1% to 7.9 million.
Sales of our consumable products continued to be stable in the second quarter despite the challenging economic environment, while demand for our diagnostic products remained weak. Consumable product sales, which include preventive, infection control, endodontic, micro-applicator and home care product lines, were roughly equivalent to the prior year quarter. Sales of diagnostic products were approximately $1.1 million less than the prior year quarter. In addition, the strong US Dollar had a negative impact of approximately $286,000 on overall sales. Gross and operating margins increased in the second quarter, due in part to the benefits of operating efficiencies implemented last year, price increases in the second half of 2008, and favorable product mix.
Throughout the second quarter, we remained focused on our core operating strategies. In order to enhance and expand customer relationships, we completed the design and development of a new customer management system. Operating improvements made during the quarter included redesigned workflow and new automation in two key facilities. During the quarter we also continued to expand our product offerings with noted progress in strengthening our infection control product line.
Overall, we are pleased with the second quarter results. We are encouraged by the continued improvements in operating results despite the weak economic environment. We believe the investments we have made over the last few years to strengthen the Company have provided an excellent foundation for future growth.
A conference call has been scheduled for Wednesday, July 22, 2009 at 11:00 A.M. Central Time and can be accessed through InterCall at http://tinyurl.com/ydnt2QTR09 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 product offering includes disposable and metal prophy angles, prophy cups and brushes, dental micro-applicators, panoramic X-ray machines, 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. 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.
Young Innovations, Inc. Consolidated Balance Sheet June 30, 2009 and December 31, 2008 (in thousands, except per share data) (Unaudited) June 30 December 31 Assets 2009 2008 ---- ---- Current assets Cash $557 $667 Accounts receivable, net 11,061 10,421 Inventories 16,282 16,486 Other current assets 5,014 4,759 ----- ----- Total current assets 32,914 32,333 ------ ------ Property, plant and equipment, net 33,536 32,905 Goodwill 80,352 80,334 Other Intangible assets 12,080 10,602 Other assets 3,184 3,402 ----- ----- Total assets $162,066 $159,576 ======== ======== Liabilities and Equity Current liabilities Accounts payable and accrued liabilities $9,990 $8,840 ------ ------ Total current liabilities 9,990 8,840 ----- ----- Long-term debt 23,702 29,349 Long-term secured borrowing 1,003 1,281 Deferred income taxes 13,966 13,829 Other liabilities 257 - --- --- Noncurrent liabilities 48,918 53,299 ------ ------ Stockholders' equity Common stock 102 102 Additional paid-in capital 23,145 25,336 Retained earnings 139,389 133,531 Common stock in treasury, at cost (49,548) (52,673) Accumulated other comprehensive income (loss) 60 (19) -- --- Total stockholders' equity 113,148 106,277 Total liabilities and stockholders' equity $162,066 $159,576 ======== ======== Young Innovations, Inc. Consolidated Statements of Income (in thousands, except earnings per share data) (Unaudited) Three Months Ended Six Months Ended June 30, June 30, 2009 2008 Change 2009 2008 Change ---- ---- ------ ---- ---- ------ Net Sales $24,637 $25,903 -4.9% $48,401 $50,298 -3.8% Cost of Goods Sold 10,953 12,112 -9.6% 21,407 23,569 -9.2% ------ ------ ---- ------ ------ ---- Gross Profit 13,684 13,791 -0.8% 26,994 26,729 1.0% % of Net Sales 55.5% 53.2% 55.8% 53.1% Selling, General and Administrative Expense 8,286 8,639 -4.1% 16,601 17,007 -2.4% % of Net Sales 33.6% 33.4% 34.3% 33.8% Income from Operations 5,398 5,152 4.8% 10,393 9,722 6.9% % of Net Sales 21.9% 19.9% 21.5% 19.3% Interest expense, net 180 326 334 745 Other income, net 55 (40) 42 (365) Income Before Taxes 5,163 4,866 6.1% 10,017 9,342 7.2% Provision for Income Taxes 1,832 1,765 3,531 3,410 Net Income $3,331 $3,101 7.4% $6,486 $5,932 9.3% % of Net Sales 13.5% 12.0% 13.4% 11.8% Basic Earnings Per Share $0.42 $0.38 10.5% $0.82 $0.73 12.3% Basic Weighted Average Shares Outstanding 7,874 8,080 7,842 8,136 Earnings Per Share (Diluted) $0.42 $0.38 10.5% $0.82 $0.72 13.9% Diluted Weighted Average Shares Outstanding 7,935 8,154 7,885 8,226
SOURCE Young Innovations, Inc.
