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8-K - OCTOBER 21, 2009 - YOUNG INNOVATIONS INCy48794_8k102109.htm

FOR IMMEDIATE RELEASE

 

Contacts:

 

Alfred E. Brennan, Chief Executive Officer

Arthur L. Herbst, Jr., President & Chief Financial Officer

 

(312) 644-6400

 

 

Young Innovations, Inc. Announces Results for the Quarter and Nine-Months Ended September 30, 2009 and Declares Quarterly Dividend

St. Louis, MO., October 21, 2009Young Innovations, Inc. (NASDAQ – YDNT) today announced results for the third quarter and the nine-months ended September 30, 2009.

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.

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.

- MORE -

 


 

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

 

 

 


 

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