ST. LOUIS, Oct. 21 Young Innovations, Inc. (Nasdaq: YDNT) today announced results for the third quarter and the nine-months ended September 30, 2009.
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Sales for the third quarter of 2009 were $24.8 million, a decrease of 0.5% over the $24.9 million reported for the third quarter of 2008. Income from operations for the third quarter increased 8.5% to $5.7 million from $5.2 million in the prior year quarter. Net income for the third quarter increased 10.4% to $3.5 million from $3.1 million in 2008. Diluted earnings per share for the third quarter of 2009 were $0.43, an increase of 10.3% over the $0.39 reported in the prior year quarter. Diluted earnings per share were affected by equity compensation expense of $0.03 and diluted shares outstanding for the quarter were 8.0 million for the quarter, both unchanged from the third quarter of 2008.
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For the nine months ended September 30, 2009, sales were $73.2 million, decreasing 2.7% from the $75.2 million reported in the prior year period. Income from operations increased 7.5% to $16.0 million from $14.9 million in the prior year nine-month period. Net income was $10.0 million, increasing 9.7% from $9.1 million in the prior year. Diluted earnings per share were $1.25 for the nine months ended September 30, 2009, an increase of 12.6% from $1.11 in the same period of 2008. Diluted earnings per share were affected by equity compensation expense of $0.10 and $0.08 for the nine months ended September 30, 2009 and 2008, respectively, while diluted shares outstanding for the nine months ended September 30, 2009 declined 2.6% to 7.9 million.
Total sales for the third quarter remained stable, as increased demand for our consumable products offset continued weakness in our diagnostic product line. Our consumable products, which include preventive, infection control, endodontic, micro-applicator and home care product lines, posted healthy gains for the quarter. Our diagnostic product line continues to be affected by the weak economy and tight credit markets. Third quarter gross and operating margins increased due to improved production efficiencies, favorable product mix, and continued benefits of facility consolidations.
During the quarter, we implemented a new customer management system and dedicated new resources to customer retention. Increased manufacturing productivity, inventory reductions, and software enhancements contributed to improvements in operating efficiency. Our continued focus on new product development resulted in several additions to our infection control and home care product lines.
Overall, we are pleased to have delivered increased profitability in a challenging economic environment. The investments made over the past few years created an organization that continues to develop and strengthen. We are optimistic about our prospects for future growth.
The company also announced that on October 19, 2009 the Board of Directors declared a quarterly dividend of $0.04 per share payable by the Company on December 15, 2009 to all shareholders of record on November 13, 2009.
A conference call has been scheduled for Thursday, October 22, 2009 at 11:00 A.M. Central Time and can be accessed through InterCall at http://tinyurl.com/yiq309e 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 Statements of Income (In thousands, except earnings per share data) (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2009 2008 Change 2009 2008 Change ---- ---- ------ ---- ---- ------ Net Sales $24,805 $24,922 -0.5% $73,206 $75,220 -2.7% Cost of Goods Sold $10,857 11,759 -7.7% $32,264 35,328 -8.7% ------- ------ ---- ------- ------ ---- Gross Profit $13,948 $13,163 6.0% $40,942 $39,892 2.6% % of Net Sales 56.2% 52.8% 55.9% 53.0% Selling, General and Administrative Expense $8,298 7,955 4.3% $24,899 24,962 -0.3% % of Net Sales 33.5% 31.9% 34.0% 33.2% Income from Operations 5,650 5,208 8.5% 16,043 14,930 7.5% % of Net Sales 22.8% 20.9% 21.9% 19.8% Interest expense, net 172 324 506 1,069 Other expense (income), net 53 (18) 95 (383) Income Before Taxes 5,425 4,902 10.7% 15,442 14,244 8.4% Provision for Income Taxes 1,951 1,754 5,482 5,164 Net Income $3,474 $3,148 10.4% $9,960 $9,080 9.7% % of Net Sales 14.0% 12.6% 13.6% 12.1% Basic Earnings Per Share $0.44 $0.40 10.0% $1.27 $1.13 12.4% Basic Weighted Average Shares Outstanding 7,912 7,915 7,866 8,062 Earnings Per Share (Diluted) $0.43 $0.39 10.3% $1.25 $1.11 12.6% Diluted Weighted Average Shares Outstanding 8,040 8,013 7,939 8,153 Young Innovations, Inc. Consolidated Balance Sheet September 30, 2009 and December 31, 2008 (in thousands, except per share data) (Unaudited) September 30 December 31 Assets 2009 2008 ---- ---- Current assets Cash $495 $667 Accounts receivable, net 11,115 10,421 Inventories 15,662 16,486 Other current assets 4,704 4,759 ----- ----- Total current assets 31,976 32,333 ------ ------ Property, plant and equipment, net 33,542 32,905 Goodwill 80,393 80,334 Other intangible assets 11,948 10,602 Other assets 3,014 3,402 ----- ----- Total assets $160,873 $159,576 ======== ======== Liabilities and Equity Current liabilities Accounts payable and accrued liabilities $11,064 $8,840 ------- ------ Total current liabilities 11,064 8,840 ------ ----- Long-term debt 17,628 29,349 Long-term secured borrowing 798 1,281 Deferred income taxes 14,033 13,829 Other noncurrent liabilities 293 - --- --- Total liabilities 43,816 53,299 ------ ------ Stockholders' equity Common stock 102 102 Additional paid-in capital 23,533 25,336 Retained earnings 142,546 133,531 Common stock in treasury, at cost (49,304) (52,673) Accumulated other comprehensive income (loss) 180 (19) --- --- Total stockholders' equity 117,057 106,277 Total liabilities and stockholders' equity $160,873 $159,576 ======== ========
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