ST. LOUIS, Oct. 19, 2011 /PRNewswire/ -- Young Innovations, Inc. (NASDAQ: YDNT) today announced record earnings per share for the third quarter and record sales and EPS for the nine-months ended September 30, 2011.
Sales for the third quarter of 2011 were $26.2 million, a decrease of 0.9% from the $26.4 million reported for the third quarter of 2010. Income from operations for the third quarter increased 2.8% to $6.3 million from $6.1 million in the prior year quarter. Net income for the third quarter increased 4.6% to $4.1 million from $3.9 million in the third quarter of 2010. Diluted earnings per share for the third quarter of 2011 were $0.51, an increase of 4.1% over the $0.49 reported in the prior year quarter. Diluted earnings per share were affected by equity compensation expense of $0.04 in both the third quarter of 2011 and 2010. Diluted shares outstanding were 8.0 million for the 2011 quarter, unchanged from the prior year quarter.
For the nine months ended September 30, 2011, sales were $79.5 million, increasing 3.3% from the $77.0 million reported in the prior year period. Income from operations increased 6.1% to $18.2 million for the nine months ended September 30, 2011 from $17.2 million in the prior year period. Net income was $12.1 million for the nine months ended September 30, 2011, increasing 8.6% from $11.2 million in the prior year period. Diluted earnings per share were $1.51 for the nine months ended September 30, 2011, an increase of 8.6% from $1.39 in the prior year period. Diluted earnings per share were affected by equity compensation expense of $0.11 for both the nine months ended September 30, 2011 and 2010. Diluted shares outstanding for the nine months ended September 30, 2011 increased 0.3% to 8.1 million from the prior year period.
During the quarter, demand for consumables was negatively affected by the ongoing weak economy, as well as the timing of orders from OEM and international customers. We continued to experience a solid increase in demand for our diagnostic product line. Despite relatively flat sales performance, we are pleased with the overall strength of our earnings in the quarter. A weaker U.S. dollar positively impacted sales by approximately $136,000.
We remained focused on executing our strategy for growth during the quarter. We enhanced our sales capacity and made significant progress toward future product launches. We also took steps to consolidate a number of administrative and light assembly operations into our Algonquin facility.
We are pleased with the efforts of our employees to make significant improvements in operating results in an uncertain economic environment. We are confident that continued investments in key initiatives and our strong balance sheet have well-positioned the Company for future growth.
The company also announced that on October 18, 2011 the Board of Directors declared a quarterly dividend of $0.04 per share, payable on December 15, 2011 to all shareholders of record on November 15, 2011.
A conference call has been scheduled for Thursday, October 20, 2011 at 11:00 A.M. Central Time and can be accessed through InterCall at http://tinyurl.com/YI-Quarter32011 or 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 consumables product offering includes disposable and metal prophy angles, prophy cups and brushes, dental micro-applicators, 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. In addition, the Company offers a line of diagnostic products that includes panoramic X-ray machines and related supplies. 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 guarantees 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) | ||||||||||
(In Thousands USD) | ||||||||||
Three Months Ended | Nine Months Ended | |||||||||
September 30, | September 30, | |||||||||
2011 | 2010 | Change | 2011 | 2010 | Change | |||||
Net Sales | $ 26,197 | $ 26,423 | -0.9% | $ 79,548 | $ 76,982 | 3.3% | ||||
Cost of Goods Sold | $ 11,585 | $ 11,841 | -2.2% | $ 35,325 | $ 34,003 | 3.9% | ||||
Gross Profit | $ 14,612 | $ 14,582 | 0.2% | $ 44,223 | $ 42,979 | 2.9% | ||||
% of Net Sales | 55.8% | 55.2% | 55.6% | 55.8% | ||||||
Selling, General and Administrative Expense | $ 8,359 | $ 8,501 | -1.7% | $ 26,000 | $ 25,799 | 0.8% | ||||
% of Net Sales | 31.9% | 32.2% | 32.7% | 33.5% | ||||||
Income from Operations | 6,253 | 6,081 | 2.8% | 18,223 | 17,180 | 6.1% | ||||
% of Net Sales | 23.9% | 23.0% | 22.9% | 22.3% | ||||||
Interest expense, net | (49) | (81) | (177) | (263) | ||||||
Other income (expense), net | 100 | (62) | 568 | 86 | ||||||
Income Before Taxes | 6,304 | 5,938 | 6.2% | 18,614 | 17,003 | 9.5% | ||||
Provision for Income Taxes | 2,204 | 2,019 | 6,477 | 5,826 | ||||||
Net Income | $ 4,100 | $ 3,919 | 4.6% | $ 12,137 | $ 11,177 | 8.6% | ||||
% of Net Sales | 15.7% | 14.8% | 15.3% | 14.5% | ||||||
Basic Earnings Per Share | $ 0.51 | $ 0.49 | 4.1% | $ 1.51 | $ 1.40 | 7.9% | ||||
Basic Weighted Average Shares Outstanding | 8,018 | 7,953 | 8,013 | 7,969 | ||||||
Earnings Per Share (Diluted) | $ 0.51 | $ 0.49 | 4.1% | $ 1.51 | $ 1.39 | 8.6% | ||||
Diluted Weighted Average Shares Outstanding | 8,041 | 8,013 | 8,065 | 8,038 | ||||||
YI Consolidated | |||||
Consolidated Balance Sheet | |||||
September 30, 2011 and December 31, 2010 | |||||
(In Thousands USD) | |||||
(Unaudited) | |||||
September 30 | December 31 | ||||
Assets | 2011 | 2010 | |||
Current assets | |||||
Cash | $ 4,000 | $ 741 | |||
Accounts receivable, net | 13,340 | 11,721 | |||
Inventories | 17,598 | 17,260 | |||
Other current assets | 4,805 | 4,861 | |||
Total current assets | 39,743 | 34,583 | |||
Property, plant and equipment, net | 32,726 | 33,162 | |||
Goodwill | 80,300 | 80,289 | |||
Intangible assets | 11,260 | 11,579 | |||
Other assets | 1,508 | 2,012 | |||
Total assets | $ 165,537 | $ 161,625 | |||
Liabilities and Equity | |||||
Current liabilities | |||||
Accounts payable and accrued liabilities | $ 10,236 | $ 10,700 | |||
Total current liabilities | 10,236 | 10,700 | |||
Long-term debt | - | 6,100 | |||
Long-term secured borrowing | 22 | 56 | |||
Deferred income taxes | 17,484 | 17,417 | |||
Other noncurrent liabilities | 240 | 248 | |||
Total liabilities | 27,982 | 34,521 | |||
Stockholders' equity | |||||
Common stock | 102 | 102 | |||
Additional paid-in capital | 24,084 | 24,190 | |||
Retained earnings | 162,607 | 151,458 | |||
Common stock in treasury, at cost | (49,090) | (48,484) | |||
Accumulated other comprehensive income | (148) | (162) | |||
Total stockholders' equity | 137,555 | 127,104 | |||
Total liabilities and stockholders' equity | $ 165,537 | $ 161,625 | |||
SOURCE Young Innovations, Inc.
