ST. LOUIS, July 23 Young Innovations, Inc.(Nasdaq: YDNT) today announced results for the quarter and six-months endedJune 30, 2008.
Sales for the second quarter of 2008 were $25.9 million, increasing 4.3%over the $24.8 million reported for the second quarter of 2007. Income fromoperations decreased 11.1% to $5.2 million from $5.8 million in the prioryear. Net income for the second quarter decreased 10.7% to $3.1 million from$3.5 million in 2007. Diluted earnings per share for the second quarter of2008 were $0.38, an increase of 2.7% over the $0.37 reported in the prior yearquarter. Diluted earnings per share were affected by equity compensationexpense of $0.03 and $0.02 for quarters ended June 30, 2008 and 2007,respectively. Diluted shares outstanding for the quarter declined 12% to 8.2million, which was primarily due to the repurchase of one million shares bythe Company in August 2007.
For the six months ended June 30, 2008, sales were $50.3 million,increasing 5.4% over the $47.7 million reported in the prior year period.Income from operations decreased 7.7% to $9.7 million from $10.5 million inthe prior year six-month period. Net income was $5.9 million, decreasing 5.7%from $6.3 million in the prior year. Diluted earnings per share were $0.72for the six months ended June 30, 2008, an increase of 5.9% from $0.68 in thesame period of 2007. Diluted earnings per share were affected by equitycompensation expense of $0.06 and $0.03 for the six months ended June 30, 2008and 2007, respectively. Diluted shares outstanding for the six months endedJune 30, 2008 declined 11% to 8.2 million, which was primarily due to therepurchase of one million shares by the Company in August 2007.
The sales increase this quarter reflects solid overall demand for ourproducts and strong sales in our home care product lines driven in part by apreannounced July 1, 2008 price increase. A weaker U.S. dollar also provideda benefit to sales of approximately $270,000. Our selling, general, andadministrative expenses increased relative to the prior year, primarily due toongoing investments in sales and marketing and higher equity compensationexpense. Interest expense increased as a result of higher debt levelsprimarily related to the August 2007 repurchase of one million shares inaddition to continued stock buy-back activity during the quarter.
The Company completed its second facility consolidation this year, withtwo additional facility consolidations expected prior to the end of the year.We also plan to introduce several new products in the next two quarters, andwe continue to evaluate acquisitions and other opportunities to expand ourproduct offering.
Overall, we are satisfied with the progress we made in the second quarterwhile we remain mindful of the overall economic environment as well ascontinued uncertainty with regard to dealer ordering patterns. As we enterthe second half of the year, we are focused on successfully introducingseveral new products, increasing the effectiveness of our sales and marketingefforts and completing the remaining facility consolidations.
The Company also announced that on July 20, 2008 the Board of Directorsdeclared a quarterly dividend of $0.04 per share payable on September 15, 2008to all shareholders of record on August 15, 2008.
A conference call has been scheduled for Thursday, July 24, 2008 at 11:00A.M. Central Time and can be accessed through InterCall athttp://audioevent.mshow.com/345989/ or on the Company's website,http://www.ydnt.com.
Young Innovations develops, manufactures, and markets supplies andequipment used by dentists, dental hygienists, dental assistants, andconsumers. The Company's product offering includes disposable and metalprophy angles, prophy cups and brushes, dental micro-applicators, panoramicX-ray machines, moisture control products, infection control produc