ST. LOUIS, Feb. 6 /PRNewswire-FirstCall/ -- Young Innovations, Inc. today announced record net income and diluted earnings per share for the year ended December 31, 2005.
Sales for the fourth quarter of 2005 were $21.6 million, a decrease of $0.5 million or 2.1% from the $22.1 million reported in the fourth quarter of 2004. Net income from continuing operations increased 0.7% to $4.1 million, compared with $4.1 million in the fourth quarter of 2004. Diluted earnings per share from continuing operations increased 2.3% in the fourth quarter of 2005 to $0.45 from $0.44 in the prior year quarter.
Sales for the year ended December 31, 2005 were $84.8 million, up 7.0% from $79.2 million in the prior year. Net income from continuing operations for fiscal year 2005 was $15.3 million, up 16.8% from $13.1 million in the prior year. Diluted earnings per share from continuing operations were $1.65 for the twelve months ended December 31, 2005, an increase of 17.9% from $1.40 in 2004. The results for the 12 months ended December 31, 2005 include a tax benefit of $0.3 million or $.03 per share recognized in the third quarter of 2005.
The decline in sales in the fourth quarter was primarily attributable to two issues: 1) the suspension in the third quarter of manufacturing and sales of certain chemical products, which account for approximately $2.4 million in annual sales, and 2) a drop off in sales of diagnostic equipment in the last month of the fourth quarter. The Company generated positive earnings growth as a result of solid expense control and reduced management compensation consistent with our results.
We plan to begin to re-introduce the currently suspended fluoride products in the third quarter of 2006. Accordingly, sales and earnings growth are expected to be stronger in the second half of the year. We also expect sales trends of diagnostic products to return to historical levels.
Commenting on the year, Alfred E. Brennan, Chief Executive Officer, said, "The management team exhibited flexibility during the year, as the Company generated another year of record results. While we continue to expect some volatility in our results, we remain enthusiastic about the growth prospects of the business. For 2006, we believe sales will be in the $86 to $90 million range and earnings per share will be between $1.70 and $1.75."
On January 30, 2006, the Board of Directors declared a quarterly dividend of $0.04 per share, payable March 15, 2006 to shareholders of record on February 15, 2006.
A conference call has been scheduled for Tuesday, February 7 at 10:00 A.M. Central Time and can be accessed through InterCall at http://audioevent.mshow.com/288045/ or on the Company's website, http://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, 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 the leading manufacturer and distributor of prophy angles and cups (used in teeth cleaning and polishing procedures) in the United States. The Company also believes it is the leading provider of panoramic X-ray equipment and dental surface disinfectants in the United States.
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.
Condensed Consolidated Statements of Income
(In Thousands, Except Earnings Per Share Data)
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
2005 2004 Change 2005 2004 Change
Net Sales $21,610 $22,078 -2.1% $84,766 $79,201 7.0%
Cost of Goods Sold 9,922 9,971 -0.5% 38,851 35,851 8.4%
Gross Profit 11,688 12,107 -3.5% 45,915 43,350 5.9%
% of Net Sales 54.1% 54.8% 54.2% 54.7%
Selling, General and
Administrative Expense 5,140 5,495 -6.5% 22,090 22,219 -0.6%
% of Net Sales 23.8% 24.9% 26.1% 28.1%
Income from Continuing
Operations 6,548 6,612 -1.0% 23,825 21,131 12.7%
% of Net Sales 30.3% 29.9% 28.1% 26.7%
Other Income, Net 134 48 485 144
Income Before Taxes 6,682 6,660 0.3% 24,310 21,275 14.3%
Provision for Income
Taxes 2,542 2,547 8,972 8,138
Net Income from
Continuing Operations 4,140 4,113 0.7% 15,338 13,137 16.8%
Net Income from
Discontinued
Operations 698 797
Net Income $4,140 $4,811 -13.9% $15,338 $13,934 10.1%
% of Net Sales 19.2% 21.8% 18.1% 17.6%
Basic Earnings Per
Share $0.46 $0.53 -13.2% $1.71 $1.54 11.0%
Basic Earnings Per
Share from
Continuing
Operations $0.46 $0.45 2.2% $1.71 $1.45 17.9%
Basic Earnings Per
Share from
Discontinued
Operations $- $0.08 $- $0.09
Basic Weighted Average
Shares Outstanding 8,914 9,050 8,957 9,040
Diluted Earnings Per
Share $0.45 $0.51 -11.8% $1.65 $1.48 11.5%
Diluted Earnings Per
Share from
Continuing
Operations $0.45 $0.44 2.3% $1.65 $1.40 17.9%
Diluted Earnings Per
Share from
Discontinued
Operations $- $0.07 $- $0.08
Diluted Weighted
Average Shares
Outstanding 9,256 9,400 9,312 9,409
Young Innovations, Inc.
Consolidated Balance Sheet
December 31, 2005 and December 31, 2004
(In Thousands)
(Unaudited)
December 31 December 31
Assets 2005 2004
Current assets
Cash $10,227 $2,552
Accounts receivable, net 9,538 9,976
Inventories 10,796 10,942
Other current assets 3,796 3,640
Total current assets 34,357 27,110
Property, plant and equipment, net 21,567 22,137
Other assets 2,401 1,860
Intangible assets 7,074 6,105
Goodwill 52,690 52,617
Total assets $118,089 $109,829
Liabilities and Equity
Current liabilities
Accounts payable and accrued
liabilities $6,171 $7,639
Net liabilities for discontinued
operations - 43
Total current liabilities 6,171 7,682
Deferred income taxes 8,354 7,010
Stockholders' equity
Common stock 90 90
Deferred stock compensation (262) (598)
Additional paid-in capital 29,184 29,033
Retained earnings 97,767 83,884
Common stock in treasury, at cost (23,215) (17,272)
Total stockholders' equity 103,564 95,137
Total liabilities and stockholders'
equity $118,089 $109,829
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