Attached files
file | filename |
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EXCEL - IDEA: XBRL DOCUMENT - YOUNG INNOVATIONS INC | Financial_Report.xls |
EX-31.1 - CERTIFICATION--ALFRED BRENNAN - YOUNG INNOVATIONS INC | dex311.htm |
EX-32.1 - CERTIFICATION--A. BRENNAN & A. HERBST - YOUNG INNOVATIONS INC | dex321.htm |
EX-31.2 - CERTIFICATION--ARTHUR HERBST - YOUNG INNOVATIONS INC | dex312.htm |
Table of Contents
Form 10-Q
YOUNG INNOVATIONS INC - YDNT
Filed: August 9, 2011 (period: June 30, 2011)
Quarterly report which provides a continuing view of a companys financial position
Table of Contents
10-Q - June 30, 2011
Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended June 30, 2011
OR
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to
Commission file number 000-23213
YOUNG INNOVATIONS, INC.
(Exact name of registrant as specified in its charter)
Missouri | 43-1718931 | |
(State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) | |
13705 Shoreline Court East Earth City, Missouri |
63045 | |
(Address of principal executive offices) | (Zip Code) |
(314) 344-0010
(Registrants telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ¨ No ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See definitions of large accelerated filer, accelerated filer and smaller reporting company in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filer | ¨ | Accelerated filer | x | |||
Non-accelerated filer | ¨ | Smaller reporting company | ¨ |
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act) Yes ¨ No x
Number of shares outstanding of the registrants Common Stock at July 31, 2011:
8,026,000 shares of Common Stock, $0.01 par value per share
Table of Contents
FINANCIAL INFORMATION
YOUNG INNOVATIONS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)
June 30, 2011 |
December 31, 2010 |
|||||||
(unaudited) | ||||||||
Assets | ||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 1,100 | $ | 741 | ||||
Trade accounts receivable, net of allowance for doubtful accounts of $238 and $246 in 2011 and 2010, respectively |
13,255 | 11,721 | ||||||
Inventories |
16,773 | 17,260 | ||||||
Other current assets |
4,662 | 4,861 | ||||||
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|
|
|
|||||
Total current assets |
35,790 | 34,583 | ||||||
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|
|
|
|||||
Property, plant and equipment, net |
32,610 | 33,162 | ||||||
Goodwill |
80,378 | 80,289 | ||||||
Other intangible assets |
11,333 | 11,579 | ||||||
Other assets |
1,553 | 2,012 | ||||||
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|
|
|||||
Total assets |
$ | 161,664 | $ | 161,625 | ||||
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Liabilities and Stockholders Equity | ||||||||
Current liabilities: |
||||||||
Accounts payable and accrued liabilities |
$ | 9,372 | $ | 10,700 | ||||
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|
|
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Total current liabilities |
9,372 | 10,700 | ||||||
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|
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Long-term debt |
| 6,100 | ||||||
Long-term secured borrowing |
53 | 56 | ||||||
Deferred income taxes |
17,460 | 17,417 | ||||||
Other noncurrent liabilities |
244 | 248 | ||||||
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|
|
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Total liabilities |
27,129 | 34,521 | ||||||
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|
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Stockholders equity: |
||||||||
Common stock, voting, $.01 par value, 25,000 shares authorized, 10,219 shares issued in 2011 and 2010 |
102 | 102 | ||||||
Additional paid-in capital |
23,994 | 24,190 | ||||||
Retained earnings |
158,826 | 151,458 | ||||||
Common stock in treasury, at cost; and 2,216 shares in 2011 and 2,248 in 2010, respectively |
(48,454 | ) | (48,484 | ) | ||||
Accumulated other comprehensive (loss) income |
67 | (162 | ) | |||||
|
|
|
|
|||||
Total stockholders equity |
134,535 | 127,104 | ||||||
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|
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Total liabilities and stockholders equity |
$ | 161,664 | $ | 161,625 | ||||
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|
|
The accompanying notes are an integral part of these statements.
2
Table of Contents
YOUNG INNOVATIONS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
(unaudited)
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Net sales |
$ | 27,326 | $ | 25,778 | $ | 53,351 | $ | 50,559 | ||||||||
Cost of goods sold |
12,178 | 11,182 | 23,740 | 22,161 | ||||||||||||
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|||||||||
Gross profit |
15,148 | 14,596 | 29,611 | 28,398 | ||||||||||||
Selling, general and administrative expenses |
8,945 | 8,903 | 17,641 | 17,298 | ||||||||||||
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Income from operations |
6,203 | 5,693 | 11,970 | 11,100 | ||||||||||||
Interest expense, net |
(54 | ) | (82 | ) | (128 | ) | (183 | ) | ||||||||
Other income, net |
34 | 65 | 468 | 148 | ||||||||||||
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Income before provision for income taxes |
6,183 | 5,676 | 12,310 | 11,065 | ||||||||||||
Provision for income taxes |
2,146 | 1,975 | 4,273 | 3,807 | ||||||||||||
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Net income |
$ | 4,037 | $ | 3,701 | $ | 8,037 | $ | 7,258 | ||||||||
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Basic earnings per share |
$ | .50 | $ | 0.46 | $ | 1.00 | $ | .91 | ||||||||
Diluted earnings per share |
$ | .50 | $ | 0.46 | $ | 1.00 | $ | .90 | ||||||||
Basic weighted average shares outstanding |
8,012 | 7,971 | 8,011 | 7,978 | ||||||||||||
Diluted weighted average shares outstanding |
8,064 | 8,039 | 8,069 | 8,050 |
The accompanying notes are an integral part of these statements.
3
Table of Contents
YOUNG INNOVATIONS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(unaudited)
Six Months Ended June 30, |
||||||||
2011 | 2010 | |||||||
Cash flows from operating activities: |
||||||||
Net income |
$ | 8,037 | $ | 7,258 | ||||
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|
|
|||||
Adjustments to reconcile net income to net cash flows from operating activities: |
||||||||
Depreciation and amortization |
2,114 | 2,132 | ||||||
Share based compensation expense |
925 | 856 | ||||||
Deferred income taxes |
43 | | ||||||
Excess tax benefit from share exercises |
(503 | ) | (392 | ) | ||||
Gain on private equity investment fund |
(490 | ) | | |||||
Gain on sale of building |
(360 | ) | | |||||
Changes in assets and liabilities: |
||||||||
Trade accounts receivable |
(1,470 | ) | (456 | ) | ||||
Inventories |
537 | 472 | ||||||
Other current assets |
229 | 125 | ||||||
Other assets |
173 | 374 | ||||||
Accounts payable and accrued liabilities |
(981 | ) | 1,677 | |||||
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|
|
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Total adjustments |
217 | 4,788 | ||||||
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|
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Net cash flows from operating activities |
8,254 | 12,046 | ||||||
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|
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Cash flows from investing activities: |
||||||||
Payments for acquisitions of intangible assets |
(55 | ) | | |||||
Purchases of property, plant and equipment |
(1,223 | ) | (1,832 | ) | ||||
Proceeds from sale of building |
431 | | ||||||
Proceeds from private equity investment |
778 | | ||||||
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|
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Net cash flows from investing activities |
(69 | ) | (1,832 | ) | ||||
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Cash flows from financing activities: |
||||||||
Payments on long-term debt |
(16,582 | ) | (33,038 | ) | ||||
Borrowings on long-term debt |
10,482 | 25,001 | ||||||
Payments of long-term secured borrowings |
(34 | ) | (245 | ) | ||||
Excess tax benefit/ (deficit) from share exercises |
503 | 392 | ||||||
Proceeds from stock options exercised |
761 | 1,020 | ||||||
Purchase of treasury stock |
(2,329 | ) | (2,154 | ) | ||||
Payment of cash dividends |
(666 | ) | (628 | ) | ||||
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Net cash flows from financing activities |
(7,865 | ) | (9,652 | ) | ||||
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Effect of exchange rate changes on cash and cash equivalents |
39 | (224 | ) | |||||
Net change in cash and cash equivalents |
359 | 338 | ||||||
Cash and cash equivalents, beginning of period |
741 | 67 | ||||||
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Cash and cash equivalents, end of period |
$ | 1,100 | $ | 405 | ||||
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The accompanying notes are an integral part of these statements.
4
Table of Contents
YOUNG INNOVATIONS, INC. AND SUBSIDIARIES
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2011
(In thousands, except per share data)
GENERAL:
This report includes information in a condensed format and should be read in conjunction with the audited consolidated financial statements and footnotes included in our Annual Report on Form 10-K for the year ended December 31, 2010. The results of operations for the three and six months ended June 30, 2011 are not necessarily indicative of the results expected for the full year or any other interim period.
The accompanying condensed consolidated financial statements have been prepared in conformity with generally accepted accounting principles for interim financial information and with the instructions for Form 10-Q and Article 10 of Regulation S-X. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed, or omitted, pursuant to the rules of the Securities and Exchange Commission. In our opinion, the statements include all adjustments necessary (which are of a normal recurring nature) for the fair presentation of the results of the interim periods presented.
The balance sheet information at December 31, 2010 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements.
1. | ORGANIZATION: |
Young Innovations, Inc. and its subsidiaries (the Company) develops, manufactures and markets supplies and equipment used by dentists, dental hygienists, dental assistants and consumers. The Companys product offerings include disposable and metal prophylaxis (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, childrens toothbrushes, and childrens toothpastes. The Companys manufacturing and distribution facilities are located in Missouri, Illinois, California, Indiana, Wisconsin and Ireland.
2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: |
Principles of Consolidation
The condensed consolidated financial statements include the accounts of Young Innovations, Inc. and its direct and indirect wholly owned subsidiaries. All significant intercompany accounts and transactions are eliminated in consolidation.
Use of Estimates
The preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reported period. Actual results could differ from those estimates. Some of the more significant estimates include allowances for doubtful accounts, inventory valuation reserves, rebate accruals, warranty reserves, liabilities for incentive compensation, and uncertain income tax positions.
5
Table of Contents
Revenue Recognition
Revenue from the sale of products is recorded at the time title passes, generally when the products are shipped, as the Companys shipping terms are customarily FOB shipping point. Revenue from the rental of equipment to others is recognized on a month-to-month basis as the revenue is earned. The Company generally requires payment within 30 days from the date of invoice and offers cash discounts for early payment. For certain acquired businesses that offer different terms, the Company migrates these customers to the terms referred above over time.
The Company offers discounts to its distributors if certain conditions are met. Customer allowances, volume discounts and rebates, and other short-term incentive programs are recorded as a reduction in reported revenues at the time of sale. The Company reduces product revenue for the estimated redemption of annual rebates on certain current product sales. Customer allowances and rebates are estimated based on historical experience and known trends.
The policy with respect to sales returns generally provides that a customer may not return inventory, except at the Companys option. The Company generally warrants its products against defects, and its most generous policy provides a two-year parts and labor warranty on X-ray machines. The Company owns X-ray equipment rented on a month-to-month basis to customers.
The Company complies with the disclosure requirements of ASC Topic 605, Revenue Recognition (that is, gross versus net presentation) for tax receipts on the face of its income statements. The scope of this guidance includes any tax assessed by a governmental authority that is directly imposed on a revenue-producing transaction between a seller and a customer and may include, but is not limited to, sales, use, value added, and some excise taxes (gross receipts taxes are excluded). The Company presents such taxes on a net basis.
Fair Value of Financial Instruments
Financial instruments consist principally of cash, accounts receivable, notes receivable, accounts payable and debt. The estimated fair value of these instruments approximates their carrying value. Due to the short term nature of the notes receivable, book value approximates fair value.
Income Taxes
The Company uses an estimated annual effective income tax rate to compute the quarterly tax provision pursuant to the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 270, Interim Reporting, and ASC 740, Income Taxes. Calculation of the estimated annual effective income tax rate requires significant judgment and is affected by, among others, variances in expected operating income for the year, projections of income earned and taxed in foreign jurisdictions, variances in non-deductible expenses, and changes in tax rates. The year-to-date effect of the change is recorded in the current period when the Companys estimate of the annual effective income tax rate changes.
The Company accounts for uncertain tax positions in accordance with the provisions of ASC 740, Income Taxes. As of June 30, 2011 and December 31, 2010, the Company had $34 of unrecognized tax benefits. The entire amount of unrecognized tax benefits would favorably impact the effective income tax rate if recognized. Penalties and interest related to unrecognized tax benefits are included in income tax expense. As of June 30, 2011 and December 31, 2010, the Company had accrued $18 of penalties and interest related to uncertain tax positions. For the six months ended June 30, 2011 and 2010, the Company did not record any interest and penalties.
The Company decreased the amount of unrecognized tax benefits during the six months ended June 30, 2010 by approximately $46, due to a change in measurement of uncertain tax position recognized in a prior year.
The Company is not aware of any other tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly increase or decrease within the next twelve months.
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Table of Contents
The Company has provided a deferred tax liability for United States income taxes on the undistributed earnings of its foreign subsidiary that will not be permanently invested. For 2011, the Company anticipates that a portion of the earnings from its foreign subsidiary will remain permanently invested, as the funds will be used for facility expansion.
The Company and its subsidiaries are subject to domestic, federal, and state income taxes as well as foreign income taxes. With certain exceptions, the Company is no longer subject to U.S. federal, state, and local or non-U.S. income tax examinations by tax authorities for years prior to 2006.
Interest Expense, net
Interest expense, net includes interest paid related to borrowings on the Companys credit facility and secured borrowing, as well as interest income earned on various investments and notes receivable. For the three months ended June 30, 2011 and 2010, interest income totaled $11 and $40, and $24 and $75 for the six months ended June 30, 2011 and 2010 respectively. For the three months ended June 30, 2011 and 2010, interest expense totaled $65 and $122, and $152 and $258, for the six months ended June 30, 2011 and 2010, respectively.
Other Income, net
Other income, net includes foreign currency transaction gain/loss and other miscellaneous income, all of which are not directly related to the Companys primary business.
The Company recognized other income of approximately $440 during the first quarter of 2011 and $53 during the second quarter of 2011 from the sale of a portfolio company of its private equity investment.
Supplemental Cash Flow Information
Cash flows from operating activities include $2,960 and $3,397 for the payment of federal, state, and foreign income taxes and $108 and $152 for the payment of interest or loan charges for the six months ended June 30, 2011 and 2010, respectively.
Foreign Currency Translation
The translation of financial statements into U.S dollars has been performed in accordance with ASC 830 Foreign Currency Matters. The local currency for all entities included in the condensed consolidated financial statements has been designated as the functional currency. Non-U.S. dollar denominated assets and liabilities have been translated into U.S. dollars at the rate of exchange prevailing at the balance sheet date. Revenues and expenses have been translated at the weighted average of exchange rates in effect during the quarter. Translation adjustments are recorded in accumulated other comprehensive income (loss). Net currency transaction gains included in other income, net were $1 and $66 for the three months ended June 30, 2011 and 2010, respectively, and $1 and $126 for the six months ended June 30, 2011 and 2010, respectively.
Reclassification
Certain prior year amounts have been reclassified to conform to current year presentation.
3. | INVESTMENTS: |
On February 21, 2006, the Company invested in a private equity investment fund. At June 30, 2011, the Company has an unfunded capital commitment of up to $300. As of June 30, 2011, the total capital commitment paid by the Company was $1,950. The Company accounts for its investment using the cost method.
During the first quarter of 2011, the Company recognized other income of approximately $440 from the sale of a portion of its private equity investment, which reduced the carrying value of the investment by $260 to $1,411. Additionally, the Company recognized other income of approximately $53 during the second quarter of 2011 from an additional sale of a portion of its private equity investment, which reduced the carrying value by $25 to $1,386.
The Company may receive additional amounts in the future related to excess funds being released from escrow or a potential additional earn-out based on financial performance.
4. | NOTES RECEIVABLE: |
The Company offers various financing options to its X-ray equipment customers, including notes payable to the Company. The X-ray equipment is used to secure the notes. The Company earned $0 and $22 of financing revenue from sales of equipment for the three and six months ended June 30, 2011. The Company earned $20 and $20 during the three and six months ended June 30, 2010. These transactions are recorded as a sale upon the transfer of title to the purchaser, which generally occurs at the time of shipment, at an amount equal to the sales price of non-financed sales. Interest on these notes was accrued as earned and recorded as interest income.
7
Table of Contents
On January 16, 2008, the Company transferred a majority of its X-ray equipment loans to a third party for a cash payment of $3,519. The Company subsequently transferred $4,154 of the notes receivable portfolio for a purchase price of $4,140. Of the purchase price, $621 is subject to a recourse holdback pool that has been established with respect to the limited recourse the third party has on the loans. On May 5, 2008, the Company transferred additional X-ray equipment loans to a third party for a cash payment of $235. There was an additional $42 subject to a recourse holdback pool. As the transactions do not qualify as sales of assets under ASC Topic 860 Transfers and Servicing the transactions have been treated as financing and the loans remain on the Companys balance sheet. As the third party receives payments on the transferred notes, the Company reduces the corresponding notes receivable and secured borrowing balances. As of June 30, 2011, the residual amount of notes receivable transferred to a third party was $350, of which $295 is classified as a short-term notes receivable and $55 as a long-term notes receivable. A corresponding long-term and short-term liability has been recorded, net of the recourse holdback pool of $9, on the Companys balance sheet.
8
Table of Contents
Notes receivable consist of the following:
June 30, 2011 |
December 31, 2010 |
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Notes receivable, short-term |
$ | 433 | $ | 593 | ||||
Notes receivable, long-term |
86 | 262 | ||||||
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Total notes receivable |
$ | 519 | $ | 855 | ||||
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Notes receivable are included in other current assets and other assets in the accompanying condensed consolidated balance sheets.
5. | INVENTORIES: |
Inventories consist of the following:
June 30, 2011 |
December 31, 2010 |
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Finished products |
$ | 8,310 | $ | 9,374 | ||||
Work in process |
2,871 | 2,663 | ||||||
Raw materials and supplies |
5,592 | 5,223 | ||||||
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Total inventories |
$ | 16,773 | $ | 17,260 | ||||
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6. | PROPERTY, PLANT AND EQUIPMENT: |
Property, plant and equipment consist of the following:
June 30, 2011 |
December 31, 2010 |
|||||||
Land |
$ | 3,411 | $ | 3,449 | ||||
Buildings and improvements |
22,547 | 22,720 | ||||||
Machinery and equipment |
28,864 | 28,055 | ||||||
Equipment rented to others |
3,735 | 4,510 | ||||||
Construction in progress |
1,465 | 1,476 | ||||||
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$ | 60,022 | $ | 60,210 | |||||
Accumulated depreciation |
(27,412 | ) | (27,048 | ) | ||||
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Total property, plant and equipment, net |
$ | 32,610 | $ | 33,162 | ||||
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7. | GOODWILL AND INTANGIBLE ASSETS: |
Goodwill activity is as follows:
Balance at December 31, 2010 |
$ | 80,289 | ||
Foreign currency translation |
89 | |||
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Balance at June 30, 2011 |
$ | 80,378 | ||
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9
Table of Contents
As of June 30, 2011 | ||||||||||||
Gross Carrying Amount |
Accumulated Amortization |
Net Carrying Amount |
||||||||||
Amortized intangible assets |
||||||||||||
License agreements |
$ | 2,944 | $ | 548 | $ | 2,396 | ||||||
Core technology |
739 | 251 | 488 | |||||||||
Trademarks |
50 | 2 | 48 | |||||||||
Patents |
2,270 | 1,406 | 864 | |||||||||
Product formulas |
430 | 108 | 322 | |||||||||
Customer relationships |
813 | 584 | 229 | |||||||||
Non-compete agreements |
519 | 390 | 129 | |||||||||
Supplier relationships |
399 | 399 | | |||||||||
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Total |
$ | 8,164 | $ | 3,688 | $ | 4,476 | ||||||
Intangible assets not subject to amortization |
||||||||||||
Trademarks |
$ | 6,857 | $ | | $ | 6,857 | ||||||
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Total |
$ | 6,857 | $ | | $ | 6,857 | ||||||
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Total intangible assets |
$ | 15,021 | $ | 3,688 | $ | 11,333 | ||||||
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As of December 31, 2010 | ||||||||||||
Gross Carrying Amount |
Accumulated Amortization |
Net Carrying Amount |
||||||||||
Amortized intangible assets |
||||||||||||
License agreements |
$ | 2,944 | $ | 448 | $ | 2,496 | ||||||
Core technology |
739 | 229 | 510 | |||||||||
Patents |
2,265 | 1,301 | 964 | |||||||||
Product formulas |
430 | 103 | 327 | |||||||||
Customer relationships |
813 | 549 | 264 | |||||||||
Non-compete agreements |
519 | 371 | 148 | |||||||||
Supplier relationships |
399 | 386 | 13 | |||||||||
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Total |
$ | 8,109 | $ | 3,387 | $ | 4,722 | ||||||
Intangible assets not subject to amortization |
||||||||||||
Trademarks |
$ | 6,857 | $ | | $ | 6,857 | ||||||
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Total |
$ | 6,857 | $ | | $ | 6,857 | ||||||
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Total intangible assets |
$ | 14,966 | $ | 3,387 | $ | 11,579 | ||||||
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|
The costs of other intangible assets with finite lives are amortized over their expected useful lives using the straight-line method. The amortization lives are as follows: 10 to 25 years for patents, certain trademarks, license agreements and core technology; 40 years for product formulations; and 5 to 8 years for supplier and customer relationships. Non-compete agreements are amortized over the length of the signed agreement. The weighted average life for amortizable intangible assets is 16 years. Aggregate amortization expense for the three months ended June 30, 2011 and 2010 was $131 and $150, respectively, and $277 and $300 for the six months ended June 30, 2011 and 2010, respectively. Estimated amortization expense for each of the next five years is as follows:
For the year ending 12/31/11 |
$541 | |
For the year ending 12/31/12 |
$476 | |
For the year ending 12/31/13 |
$476 | |
For the year ending 12/31/14 |
$402 | |
For the year ending 12/31/15 |
$286 |
10
Table of Contents
8. | CREDIT ARRANGEMENTS AND NOTES PAYABLE: |
On May 21, 2009, the Company renewed its credit facility. The credit facility reduced the aggregate commitment from $75,000 to $60,000 and expires in July 2012. The Company has $60,000 available under the line of credit at June 30, 2011. Borrowings under the arrangement bear interest at rates ranging from LIBOR + 2.00% to LIBOR + 2.50% or Prime + .50% to Prime + 1.00%, depending on the Companys level of indebtedness. Commitment fees for this arrangement range from .25% to .50% of the unused balance. The agreement is unsecured and contains various financial and other covenants. As of June 30, 2011 and December 31, 2010, the Company was in compliance with these covenants.
Long-term debt was as follows:
June 30, 2011 |
December 31, 2010 |
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Revolving credit facility due 2012 with a weighted-average interest rate of 0% and 2.65% at June 30, 2011 and December 31, 2010, respectively |
$ | | $ | 6,100 | ||||
Less - current portion |
| | ||||||
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$ | | $ | 6,100 | |||||
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On July 22, 2011, the Company entered into a new Credit Agreement with J.P. Morgan Chase to replace the existing agreement with Bank of America. The new five-year Agreement provides for an unsecured revolving credit facility with an aggregate commitment of $70,000.
9. | SHARE-BASED COMPENSATION: |
The Company adopted the 1997 Stock Option Plan (the 1997 Plan) in November 1997 and amended the Plan in 1999 and 2001. A total of 1,725 shares of Common Stock were reserved for issuance under this plan which is administered by the compensation committee of the Board of Directors (Compensation Committee). The Company adopted the 2006 Long-Term Incentive Plan (the 2006 Plan) effective in May 2006. The 2006 Plan is intended to be a successor to the 1997 Plan. A total of 700 shares were authorized for grant under the 2006 Plan. Awards under the 2006 Plan may be stock options, stock appreciation rights, restricted stock, restricted stock units, and other equity awards.
Any employee of the Company or its affiliates, any consultant whom the Compensation Committee determines is significantly responsible for the Companys success and future growth and profitability, and any member of the Board of Directors, may be eligible to receive awards under the 2006 Plan. The purpose of the 2006 Plan is to: (a) attract and retain highly competent persons as employees, directors, and consultants of the Company; (b) provide additional incentives to such employees, directors, and consultants by aligning their interests with those of the Companys shareholders; and (c) promote the success of the Company. The Compensation Committee establishes vesting schedules for each option issued under the Plan. Under the 1997 Plan, outstanding options generally vested over a period of up to four years while non-vested equity shares vested over five years. Under the 2006 Plan, outstanding options generally vest over a period of up to three years while non-vested equity shares vest over one, two, three, four and five year periods. All outstanding options expire ten years from the date of grant under the 1997 Plan and five years from the date of grant under the 2006 Plan.
Stock Options
During the three months ended June 30, 2011 and 2010, the Company recorded pre-tax compensation expense of $0 and $13 related to the Companys stock option shares, and $6 and $50 for the six months ended June 30, 2011 and 2010, respectively. The total aggregate intrinsic value of options exercised during the three months ended June 30, 2011 and 2010 was $168 and $751, respectively, and $404 and $953 for the six months ended June 30, 2011, and 2010, respectively.
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Payments received upon the exercise of stock options for the three months ended June 30, 2011 and 2010 totaled $302 and $808, respectively, and $761 and $1,020 for the six months ended June 30, 2011, and 2010. The related excess tax benefit realized related to these exercises was $143 and $270 for the three months ended, June 30, 2011 and 2010, and $503 and $392 for the six months ended June 30, 2011 and 2010, respectively. The Company issues shares from treasury upon share option exercises.
The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model. There were no stock options granted during the three or six months ended June 30, 2011 or 2010.
The following table summarizes stock option activity for the six months ended June 30, 2011:
Options |
Shares (000) |
Weighted-Average Exercise Price |
Weighted-Average Remaining Contractual Term |
Aggregate Intrinsic Value ($000) |
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Outstanding at January 1, 2011 |
577 | $ | 28.08 | |||||||||||||
Granted |
| | ||||||||||||||
Exercised |
(54 | ) | $ | 14.15 | ||||||||||||
Forfeited or expired |
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Outstanding at June 30, 2011 |
523 | $ | 29.51 | 2.41 | $ | 1,661 | ||||||||||
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Exercisable at June 30, 2011 |
523 | $ | 29.51 | 2.41 | $ | 1,661 | ||||||||||
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The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between the Companies closing stock price on the last trading day of the second quarter of 2011 and the exercise price, multiplied by the number of in-the-money options).
Non-Vested Equity Shares
Under the 2006 Plan, non-vested equity share units and restricted stock may be awarded or sold to participants under terms and conditions established by the Compensation Committee. The Company calculates compensation cost for restricted stock grants to employees and non-employee directors by using the fair market value of its Common Stock at the date of grant and the number of shares issued. This compensation cost is amortized over the applicable vesting period. The Company recorded pre-tax compensation expense of $472 and $402, during the three months ended June 30, 2011 and 2010, respectively, and $919 and $806 during the six months ended June 30, 2011 and 2010, respectively, related to the Companys non-vested equity shares. As of June 30, 2011, there was approximately $3,564 of unrecognized compensation cost related to non-vested equity shares which will be amortized over the weighted-average remaining requisite service period of 1.59 years. The Company issues share grants from treasury.
The following table details the status and changes in non-vested equity shares for the six months ended June 30, 2011:
Shares (000) |
Weighted-Average Grant Date Fair Value |
|||||||
Non-vested equity shares, January 1, 2011 |
193 | $ | 21.62 | |||||
Granted |
56 | 30.31 | ||||||
Vested |
(71 | ) | 23.07 | |||||
Forfeited |
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Non-vested equity shares, June 30, 2011 |
178 | $ | 23.75 | |||||
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10. | Comprehensive Income: |
Comprehensive income for the three and six months ended June 30, 2011 and 2010 was computed as follows:
Three Months Ended June 30, |
Six Months Ended June 30, |
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2011 | 2010 | 2011 | 2010 | |||||||||||||
Net income |
$ | 4,037 | $ | 3,701 | $ | 8,037 | $ | 7,258 | ||||||||
Foreign currency translation adjustments, net of tax |
49 | (266 | ) | 229 | (501 | ) | ||||||||||
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Comprehensive income |
$ | 4,086 | $ | 3,435 | $ | 8,266 | $ | 6,757 | ||||||||
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11. | RELATED-PARTY TRANSACTIONS: |
The Company has an employment agreement with George E. Richmond, the Companys Vice Chairman and principal stockholder. On February 25, 2010, the Company increased his annual salary from $50 to $100 which was effective January 1, 2010. This increase was offset by the termination of the consulting agreement between Mr. Richmond and the Company effective until December 31, 2009, which had paid him $50 each year. The Company paid him $25 during the three months ended June 30, 2011 and $50 for the six months ended June 30, 2011.
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12. | EARNINGS PER SHARE: |
Basic earnings per share (Basic EPS) is computed by dividing net income by the weighted average number of shares of Common Stock outstanding and total number of shares of restricted stock during the period. Diluted earnings per share (Diluted EPS) includes the dilutive effect of stock options, if any, using the treasury stock method. The following table sets forth the computation of basic and diluted earnings per share:
Three Months Ended June 30, |
Six Months Ended June 30, |
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2011 | 2010 | 2011 | 2010 | |||||||||||||
(unaudited) | (unaudited) | |||||||||||||||
Net income |
$ | 4,037 | $ | 3,701 | $ | 8,037 | $ | 7,258 | ||||||||
Weighted average shares outstanding for basic earnings per share |
8,012 | 7,971 | 8,011 | 7,978 | ||||||||||||
Dilutive effect of stock options |
52 | 68 | 58 | 72 | ||||||||||||
Weighted average shares outstanding for diluted earnings per share |
8,064 | 8,039 | 8,069 | 8,050 | ||||||||||||
Basic earnings per share |
$ | .50 | $ | 0.46 | $ | 1.00 | $ | 0.91 | ||||||||
Diluted earnings per share |
$ | .50 | $ | 0.46 | $ | 1.00 | $ | 0.90 |
13. | COMMITMENTS AND CONTINGENCIES: |
In certain circumstances, the Company provides recourse for loans for X-ray equipment purchases by customers. Certain banks require the Company to provide recourse to finance X-ray equipment for new dentists and other customers with credit histories that are not consistent with the banks lending criteria. In the event that a bank requires recourse on a given loan, the Company would assume the banks security interest in the equipment securing the loan. As of June 30, 2011 and December 31, 2010, no equipment financed with various lenders were subject to recourse. Recourse on a given loan is generally for the life of the loan. Based on the Companys past experience with respect to these arrangements, it is the opinion of management that the fair value of the recourse provided is minimal and not material to the results of operations or financial position of the Company.
The Company and its subsidiaries, from time to time, are parties to various legal proceedings arising in the normal course of business. Management believes that none of these proceedings, if determined adversely, would have a material adverse effect on the Companys financial position, results of operations or liquidity.
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The policy with respect to sales returns generally provides that a customer may not return inventory except at the Companys option, with the exception of X-ray machines. Historically, the level of product returns has not been significant. The Company generally warrants its products against defects, and its most generous policy provides a two-year parts and labor warranty on X-ray machines. The accrual for warranty costs was $344 and $284 at June 30, 2011 and 2010, respectively. The following is a roll forward of the Companys warranty accrual:
Six Months Ended June 30, |
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2011 | 2010 | |||||||
Balance, December 31 |
$ | 293 | $ | 292 | ||||
Accruals for warranties issued during the period |
192 | 87 | ||||||
Warranty settlements made during the period |
(141 | ) | (95 | ) | ||||
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Balance, June 30 |
$ | 344 | 284 | |||||
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14. | SUBSEQUENT EVENTS: |
On July 19, 2011, the Board declared a quarterly dividend of $0.04 per share, payable by the Company on September 15, 2011 to the holders of record on August 15, 2011.
Additionally, on July 19, 2011, the Board announced a share repurchase program authorizing the purchase of up to 500 shares, which will expire on July 31, 2012.
On July 22, 2011, the Company entered into a new Credit Agreement with J.P. Morgan Chase to replace the existing agreement with Bank of America. The new five-year Agreement provides for an unsecured revolving credit facility with an aggregate commitment of $70,000.
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Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations.
Critical Accounting Policies
The SEC has requested that all registrants include in their MD&A a description of their most critical accounting policies, the judgments and uncertainties affecting the application of those policies, and the likelihood that materially different amounts would be reported under different conditions using different assumptions. The SEC indicated that a critical accounting policy is one which is both important to the portrayal of the companys financial condition and results and requires managements most difficult, subjective or complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain. The Company believes that the following accounting policies fit this definition:
Allowance for doubtful accounts Accounts receivable balances are subject to credit risk. Management has reserved for expected credit losses, sales returns and allowances, and discounts based upon past experience, as well as knowledge of current customer information. The Company believes that its reserves are adequate. It is possible, however, that the accuracy of our estimation process could be impacted by unforeseen circumstances. The Company continuously reviews its reserve balance and refines the estimates to reflect any changes in circumstances.
Inventory The Company values inventory at the lower of cost or market on a first-in, first-out (FIFO) basis. Inventory values are based upon standard costs, which approximate actual costs. Management regularly reviews inventory quantities on hand and records a write-down for excess or obsolete inventory based primarily on estimated product demand and other information related to the inventory, including planned introduction of new products and changes in technology. If demand for the Companys products is significantly different than managements expectations, the value of inventory could be materially impacted. Inventory write-downs are included in cost of goods sold.
Goodwill and other intangible assets In accordance with Accounting Standards Codification (ASC) Topic 350, Intangibles- Goodwill and Other, goodwill and other intangible assets with indefinite useful lives are reviewed by management for impairment at least annually, or whenever events or changes in circumstances indicate the carrying amount may not be recoverable. If indicators of impairment are present, the determination of the amount of impairment would be based on managements judgment as to the future operating cash flows to be generated from the assets. ASC Topic 350 also requires that intangible assets with estimable useful lives be amortized over their respective estimated useful lives to their estimated residual values, and reviewed for impairment in accordance with ASC Topic 360, Property, Plant, and Equipment.
Revenue Recognition - Revenue from the sale of products is recorded at the time title passes, generally when the products are shipped, as the Companys shipping terms are customarily FOB shipping point.
The Company generally requires payment within 30 days from the date of invoice and offers cash discounts for early payment. For certain acquired businesses that offer different terms, the Company migrates these customers to the terms referred above over time.
The Company offers discounts to its distributors if certain conditions are met. Customer allowances, volume discounts and rebates, and other short-term incentive programs are recorded as a reduction in reported revenues at the time of sale. The Company reduces product revenue for the estimated redemption of annual rebates on certain current product sales. Customer allowances and rebates are estimated based on historical experience and known trends.
The policy with respect to sales returns generally provides that a customer may not return inventory except at the Companys option. Historically, the level of product returns has not been significant. The Company generally warrants its products against defects, and its most generous policy provides a two-year parts and labor warranty on X-ray machines. The Company owns X-ray equipment rented on a month-to-month basis to customers.
Stock compensation - In accordance with ASC Topic 718, Stock Compensation, compensation cost is recognized within the financial statements based on the awards fair-value at the grant date. Stock option fair value is
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calculated by an option pricing model, and is recognized as expense ratably over the requisite service period. The option pricing models require judgmental assumptions including: volatility, forfeiture rates, and expected option life. If any of the assumptions used in the model change significantly, share-based compensation expense may differ in the future from that recorded in the current period. The Company uses the Black-Scholes option pricing model. Compensation expense is also recognized for restricted stock using the fair market value of our Common Stock at the date of grant.
Assets Acquired and Liabilities Assumed in Business Combinations The Company periodically acquires businesses. All business acquisitions completed subsequent to January 1, 2009 are accounted for under the provisions of ASC Topic 805, Business Combinations, which requires an entity to recognize the assets acquired, liabilities assumed, contractual contingencies, and contingent consideration at their fair value on the acquisition date. It further requires that acquisition-related costs be recognized separately from the acquisition and expensed as incurred, restructuring costs generally be expensed in the periods subsequent to the acquisition date, and changes in accounting for deferred tax asset valuation allowances and acquired income tax uncertainties after the measurement period be recorded as income tax expense. The changes related to income taxes also impact the accounting for acquisitions completed prior to the effective date of ASC 805. In addition, acquired in-process research and development is capitalized as an intangible asset and amortized over its estimated useful life. Acquisitions completed prior to this adoption were made using the purchase method. Future acquisitions will be impacted using the provisions of the new accounting standard.
RESULTS OF OPERATIONS (In thousands, except per share data)
Three Months Ended June 30, 2011 Compared to Three Months Ended June 30, 2010
Net Sales
Net sales increased $1,548 or 6.0% to $27,326 in the second quarter of 2011 from $25,778 in the second quarter of 2010. The sales increase was driven by strong growth of our diagnostic product line as well as healthy gains from our consumables products in the second quarter. Consumable products include preventive, infection control, endodontic, micro-applicators and home care product lines. A weaker U.S. dollar positively impacted international sales by approximately $226 due to foreign currency exposure.
Gross Profit
Gross profit increased $552 or 3.8% to $15,148 in the second quarter of 2011 compared to $14,596 in the second quarter of 2010. The gross margin percentage of 55.4% in the second quarter of 2011 decreased from 56.6% in the second quarter of 2010. The increase in gross margin dollars was primarily the result of higher sales volume. The change in gross margin percentage is primarily attributable to the mix of products sold, and the impact of a successful free goods promotion in the 2011 period.
Selling, General, and Administrative Expenses
SG&A expenses slightly increased by $42 or 0.5% to $8,945 in the second quarter of 2011 compared to $8,903 in the second quarter of 2010. During the second quarter of 2011, SG&A was positively impacted by the gain from the sale of the Brownsville, Texas facility, which was offset by increased marketing spending. As a percentage of net sales, SG&A expenses decreased to 32.7% in the second quarter of 2011 compared to 34.5% in the second quarter of 2010, as sales grew faster than expenses.
Income from Operations
Income from operations increased $510 or 9.0% to $6,203 in the second quarter of 2011 compared to $5,693 in the second quarter of 2010. The change was a result of the factors described above.
Interest Expense, net
Interest expense, net decreased $28 to $54 in the second quarter of 2011 from $82 in the second quarter of 2010. The decrease was primarily attributable to lower borrowings throughout the quarter on the Companys credit facility. As of June 30, 2011, all borrowings on the credit facility were extinguished.
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Other Income, net
Other income, net decreased $31 to $34 in the second quarter of 2011, from $65 in the second quarter of 2010. The decrease was attributable to the foreign exchange impact on inventory purchases by the Companys Irish subsidiary, which was offset by a gain from the sale of a portion of the Companys private equity investment.
Provision for Income Taxes
Provision for income taxes increased $171 for the second quarter of 2011 to $2,146 from $1,975 in the second quarter of 2010 as a result of higher pre-tax income. The effective tax rate in the second quarter of 2011 was 34.7% versus 34.8% in the second quarter of 2010. The Companys partial reinvestment of foreign earnings was partly offset by an overall state tax rate increase in 2011.
Six Months Ended June 30, 2011 Compared to Six Months Ended June 30, 2010
Net Sales
Net sales increased $2,792 or 5.5% to $53,351 in the first six months of 2011 from $50,559 in the first six months of 2010. Sales growth for the first six months was attributed to the strong increase in sales of diagnostic equipment and solid gains from our consumable products. Consumable products include preventive, infection control, endodontic, micro-applicators and home care product lines. A weaker U.S. dollar positively impacted international sales by approximately $216 due to foreign currency exposure.
Gross Profit
Gross profit increased $1,213 or 4.3% to $29,611 in the first six months of 2011 compared to $28,398 in the first six months of 2010. The gross margin percentage of 55.5% in the first six months of 2011 decreased from 56.2% in first six months of 2010. The increase in gross margin dollars was a result of higher sales volume, while the change in gross margin percentage is primarily attributable to the mix of products sold.
Selling, General, and Administrative Expenses
SG&A expenses increased $343 or 2.0% to $17,641 in the first six months of 2011 from $17,298 in the first six months of 2010. 2011 SG&A was positively impacted by the gain from sale of the Brownsville, Texas facility, which was mainly offset by increases in marketing spending. As a percent of net sales, SG&A expenses were 33.1% in the first six months of 2011 compared to 34.2% in the first six months of 2010 due to sales increasing faster than expenses.
Income from Operations
Income from operations increased $870 or 7.8% to $11,970 in the first six months of 2011 compared to $11,100 in the first six months of 2010. The change was a result of the items explained above.
Interest Expense, net
Interest expense, net decreased $55 to $128 in the first six months of 2011 from $183 in the first six months of 2010. The decrease was primarily attributable to reduced interest expense resulting from lower borrowings under the Companys credit facility. The borrowings on the credit facility were extinguished as of June 30, 2011.
Other Income, net
Other income, net increased $320 to $468 in the first six months of 2011 from $148 in the first six months of 2010. The increase was primarily attributable to a gain from the sale of a portion of the Companys private equity investment.
Provision for Income Taxes
Provision for income taxes increased $466 in the first six months of 2011 to $4,273 from $3,807 in the first six months of 2010 as a result of higher pre-tax income and a slight increase in the effective tax rate. The effective tax rate in the first six months of 2011 was 34.7% compared to 34.4% in the first six months of 2010. The Companys partial reinvestment of foreign earnings was partly offset by an overall state tax rate increase in 2011. Additionally, a one-time tax benefit occurred in the first quarter of 2010, which resulted from a change in measurement of a prior period uncertain tax positions.
Liquidity and Capital Resources
Historically, the Company has financed its operations primarily through cash flow from operating activities and, to a lesser extent, through borrowings under its credit facility. Net cash flow from operating activities was $8,254 and $12,046 for the first six months of 2011 and 2010, respectively. Operating cash flow decreased in 2011 when compared to 2010 primarily due to a decrease in accounts payable as a result of the timing of vendor payments and an increase in accounts receivable resulting from increased sales. The timing of collections did not adversely impact the aging of receivables. Net capital expenditures for property, plant and equipment were $1,223 and $1,832 for the six months of 2011 and 2010, respectively. Total cash flow benefited from an increase in net income, the sale of a building in Brownsville, Texas, as well as the sale of a portfolio company of the Companys private equity investment fund.
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The Company maintains a credit agreement with a borrowing capacity of $60,000, which expires in July 2012. Borrowings under the agreement bear interest at rates ranging from LIBOR + 2.0% to LIBOR + 2.5%, or Prime, depending on the Companys level of indebtedness. Commitment fees for this agreement range from .25% to .5% of the unused balance. The agreement is unsecured and contains various financial and other covenants. As of June 30, 2011, the Company was in compliance with all of these covenants. During the six months ended June 30, 2011 the Company borrowed under the credit facility to finance investments in facilities and for working capital needs. At June 30, 2011 the Company had $0 in outstanding borrowings under this agreement and $60,000 available for borrowing. Management believes through its operating cash flows as well as borrowing capabilities, the Company has adequate liquidity and capital resources to meet its needs on a short and long-term basis.
On July 22, 2011, the Company entered into a new Credit Agreement with J.P. Morgan Chase to replace the existing agreement with Bank of America. The new five-year Agreement provides for an unsecured revolving credit facility with an aggregate commitment of $70,000.
Forward-Looking Statements
Investors are cautioned that this report 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 Companys Annual Report on Form 10-K and other reports filed with the SEC.
Item 3. | Quantitative and Qualitative Disclosures About Market Risk. |
Market risks relating to the Companys operations result primarily from changes in interest rates and changes in foreign exchange rates. From time to time, the Company finances acquisitions, capital expenditures and its working capital needs with borrowings under a revolving credit facility. Due to the variable interest rate feature on the debt, the Company is exposed to interest rate risk.
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A theoretical 100 basis point increase in interest rates would have resulted in approximately $18 and $72 of additional interest expense in the three month periods ended June 30, 2011 and 2010 and $31 and $100 for the six month periods ended June 30, 2011 and 2010, respectively. Alternatively, a 100 basis point decrease in interest rates would have reduced interest expense by approximately $18 and $72 in the three month periods ended June 30, 2011 and 2010, and $31 and $100 for the six months ended June 30, 2011 and 2010, respectively.
Sales of the Companys products in a given foreign country can be affected by fluctuations in the exchange rate. For the six months ended June 30, 2011, the Company sold less than 16% of its products outside of the United States. Of these foreign sales, 44% were denominated in Euros and 3% in Canadian dollars. The Company does not feel that foreign currency movements have a material impact on its financial statements.
The Company does not use derivatives to manage its interest rate or foreign exchange rate risks.
Item 4. | Controls and Procedures. |
Evaluation of Disclosure Controls and Procedures
The Companys Chief Executive Officer and Chief Financial Officer have concluded, based on their evaluation as of the end of the period covered by this report, that our disclosure controls and procedures are effective to ensure that information required to be disclosed in the reports that we file or submit under the Securities Exchange Act of 1934, as amended, is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosure and that the information is recorded, processed, summarized and reported within the time periods specified in the SECs rules and forms.
Changes in Internal Control Over Financial Reporting
There have been no changes in our internal controls over financial reporting that occurred during the quarterly period ended June 30, 2011 that have materially affected, or that are reasonably likely to materially affect, our internal control over financial reporting.
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OTHER INFORMATION
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds. |
ISSUER PURCHASES OF EQUITY SECURITIES (in thousands, except per share data) (1)
Period | Total Number of Shares Purchased |
Average Price Paid per Share |
Total Number of Shares Purchased as Part of Publicly Announced Program |
Maximum Number of Shares that May Yet Be Purchased Under the Program |
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May 2011 |
13 | $ | 29.29 | 13 | 439 | |||||||||||
June 2011 |
30 | 27.59 | 30 | 409 | ||||||||||||
Total Second Quarter 2011 |
43 | 28.15 | 43 | 409 |
(1) | On July 19, 2011, the Board of Directors announced a share repurchase program authorizing the purchase of up to 500 shares. This program replaces an existing authorization that was set to expire July 31, 2011. This new authorization will expire July 31, 2012. |
Item 6. | Exhibits. |
Exhibits.
31.1 | Certification pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
31.2 | Certification pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
32.1 | Certification pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
101.INS | XBRL Instance Document | |
101.SCH | XBRL Taxonomy Extension Schema Document | |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | |
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document |
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Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
YOUNG INNOVATIONS, INC. | ||
/s/ Alfred E. Brennan, Jr. | ||
Date | Alfred E. Brennan, Jr. | |
August 9, 2011 | Chief Executive Officer | |
/s/ Arthur L. Herbst, Jr. | ||
Arthur L. Herbst, Jr. | ||
President and Chief Financial Officer |
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