ST. LOUIS, July 25 /PRNewswire-FirstCall/ -- Young Innovations, Inc. today announced results for the quarter and six months ended June 30, 2007.
Sales for the second quarter were $24.8 million, increasing 15.7% over the $21.5 million reported for the second quarter of 2006. Income from operations increased 4.7% to $5.8 million from $5.5 million in the prior year. Net income of $3.5 million is unchanged from prior year. Diluted earnings per share for the second quarter of 2007 were $0.37, a decrease of 5.1% over the $0.39 reported in the prior year quarter. Diluted earnings per share were affected by equity compensation expense of $0.02 and $0.01 for the quarters ended June 30, 2007 and 2006, respectively.
For the six months ended June 30, 2007, sales were $47.7 million, increasing 13.2% from the prior year period. Income from operations for the six months ended June 30, 2007 decreased 5.3% to $10.5 million from $11.1 million in the prior year. Net income was $6.3 million, decreasing 11.8% from $7.1 million in the year earlier six-month period. Diluted earnings per share were $0.68 for the six months ended June 30, 2007, a decrease of 12.8% from $0.78 in the same period of 2006. Diluted earnings per share were affected by equity compensation expense of $0.03 and $0.01 for the six months ended June 30, 2007 and 2006, respectively.
The results for the quarter were affected by the acquisition of the assets of Microbrush, Inc. and Microbrush International, Ltd. (collectively "Microbrush"), completed on July 31, 2006, and August 18, 2006, respectively. Microbrush contributed approximately $3.8 million in sales in the second quarter of 2007, and approximately $7.4 million in sales for the six months ended June 30, 2007.
Commenting on the quarter, Alfred E. Brennan, Chief Executive Officer, said, "During the second quarter, we made progress in our consolidation efforts and experienced solid sales and operating performance in several of our core product lines. In general, business trends showed nice improvement over the first quarter. However, we continue to expect volatility in our business overall, and in our panoramic X-ray product line in particular. As previously disclosed, as a result of the expected volatility, we are not providing earnings guidance at this time."
On July 24, 2007, the Board of Directors declared a quarterly dividend of $0.04 per share, payable on September 14, 2007 to shareholders of record on August 15, 2007.
A conference call has been scheduled for Thursday, July 26 at 11:00 A.M. Central Time and can be accessed through InterCall at http://audioevent.mshow.com/334622/ 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, 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 the leading manufacturer and distributor of prophy angles and cups (used in teeth cleaning and polishing procedures), liquid surface disinfectants, obturation units, and dental micro-applicators in the United States. The Company also believes it is the leading distributor of panoramic X-ray equipment 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 Six Months Ended
June 30, June 30,
2007 2006 Change 2007 2006 Change
Net Sales $24,826 $21,466 15.7% $47,709 $42,149 13.2%
Cost of Goods Sold 11,247 9,881 13.8% 21,775 19,086 14.1%
Gross Profit 13,579 11,585 17.2% 25,934 23,063 12.4%
% of Net Sales 54.7% 54.0% 54.4% 54.7%
Selling, General and
Administrative Expense 7,783 6,050 28.6% 15,404 11,944 29.0%
% of Net Sales 31.4% 28.2% 32.3% 28.3%
Income from Operations 5,796 5,535 4.7% 10,530 11,119 -5.3%
% of Net Sales 23.3% 25.8% 22.1% 26.4%
Interest Expense
(Income), Net 157 (161) 403 (303)
Other Expense (Income),
Net 62 (27) 18 (80)
Income Before Taxes 5,577 5,723 -2.6% 10,109 11,502 -12.1%
Provision for Income
Taxes 2,105 2,175 3,816 4,367
Net Income $3,472 $3,548 -2.1% $6,293 $7,135 -11.8%
% of Net Sales 14.0% 16.5% 13.2% 16.9%
Basic Earnings Per
Share $0.38 $0.40 -5.0% $0.69 $0.80 -13.8%
Basic Weighted Average
Shares Outstanding 9,125 8,937 9,095 8,930
Diluted Earnings Per
Share $0.37 $0.39 -5.1% $0.68 $0.78 -12.8%
Diluted Weighted
Average Shares
Outstanding 9,272 9,170 9,249 9,176
Young Innovations, Inc.
Consolidated Balance Sheet
June 30, 2007 and December 31, 2006
(In Thousands)
(Unaudited)
June 30 December 31
Assets 2007 2006
Current assets
Cash $346 $1,017
Accounts receivable, net 12,933 13,057
Inventories 14,646 14,111
Other current assets 4,304 5,546
Total current assets 32,229 33,731
Property, plant and equipment, net 32,530 29,178
Goodwill 78,437 78,233
Intangible assets 10,779 11,140
Other assets 4,366 4,306
Total assets $158,341 $156,588
Liabilities and Equity
Current liabilities
Accounts payable and accrued
liabilities $7,682 $7,749
Total current liabilities 7,682 7,749
Long-term debt 18,000 21,810
Deferred income taxes 10,086 9,531
Total liabilities 35,768 39,090
Stockholders' equity
Common stock 90 90
Additional paid-in capital 27,167 29,214
Retained earnings 116,653 111,089
Common stock in treasury, at
cost (21,405) (22,939)
Accumulated other comprehensive
income 68 44
Total stockholders' equity 122,573 117,498
Total liabilities and stockholders'
equity $158,341 $156,588
