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Young Innovations, Inc. Announces Record Sales and EPS for the Quarter and Six-Months Ended June 30, 2012

July 23, 2012

ST. LOUIS, July 23, 2012 /PRNewswire/ — Young Innovations, Inc. (NASDAQ – YDNT) today announced record sales and earnings per share for the second quarter and the six-months ended June 30, 2012.

Sales for the second quarter of 2012 were $28.1 million, an increase of 2.7% over the $27.3 million reported for the second quarter of 2011. Income from operations increased 5.8% to $6.6 million from $6.2 million in the prior year. Net income for the second quarter increased 8.4% to $4.4 million from $4.0 million for the second quarter of 2011. Diluted earnings per share for the second quarter of 2012 were $0.56, an increase of 12.0% over the $0.50 reported in the prior year quarter.

For the six months ended June 30, 2012, sales were $54.8 million, increasing 2.7% from the $53.4 million reported in the prior year period. Income from operations increased 5.6% to $12.6 million from $12.0 million in the prior year six-month period. Net income was $8.6 million, increasing 7.0% from $8.0 million in the prior year six-month period. Diluted earnings per share were $1.09 for the six months ended June 30, 2012, an increase of 9.0% from $1.00 in the same period of 2011.

We are pleased with the Company’s sales performance in the quarter. Strong growth of our diagnostic product line and solid demand for our consumables products drove a healthy overall increase for the second quarter. A stronger US dollar negatively impacted sales in the second quarter by $217,000. During the quarter, the Company also recognized a gain from its investment in a private equity fund of $208,000 which was recorded as “other income.” In the second quarter of 2011, the Company recorded a gain of $50,000 from this same fund.

During the second quarter, we focused on several key initiatives to drive future growth. We implemented targeted marketing campaigns and promotional activity to support several recently introduced products. We also continued to make progress in the development of new products across the business. Furthermore, we invested in new equipment and systems upgrades to support future growth. Finally, we ended the quarter with $9.1 million of cash on our balance sheet, up from $5.2 million on March 31, 2012. While we remain cautious due to ongoing global economic uncertainty, we are encouraged by our progress in the first half of the year.

A conference call has been scheduled for Tuesday, July 24, 2012 at 11:00 A.M. Central Time and can be accessed through InterCall at http://tinyurl.com/YI-Quarter22012 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                                       Six Months Ended
                              June 30,                                                June 30,
                            2012                    2011          Change                      2012     2011  Change
                            ----                    ----          ------                      ----     ----  ------

    Net Sales            $28,054                 $27,326                     2.7%          $54,808  $53,351         2.7%
    Cost of Goods Sold   $12,453                 $12,178                     2.3%          $24,215  $23,740         2.0%
                         -------                 -------                     ---           -------  -------         ---
    Gross Profit         $15,601                 $15,148                     3.0%          $30,593  $29,611         3.3%
    % of Net Sales          55.6%                   55.4%                                     55.8%    55.5%

    Selling, General and
     Administrative
     Expense              $9,040                  $8,945                     1.1%          $17,958  $17,641         1.8%
    % of Net Sales          32.2%                   32.7%                                     32.8%    33.1%

    Income from
     Operations            6,561                   6,203                     5.8%           12,635   11,970         5.6%
    % of Net Sales          23.4%                   22.7%                                     23.1%    22.4%

    Interest expense,
     net                     (58)                    (54)                                     (113)    (128)
    Other income
     (expense), net          248                      34                                       742      468

    Income Before Taxes    6,751                   6,183                     9.2%           13,264   12,310         7.7%

    Provision for Income
     Taxes                 2,374                   2,146                                     4,664    4,273

    Net Income            $4,377                  $4,037                     8.4%           $8,600   $8,037         7.0%
    % of Net Sales          15.6%                   14.8%                                     15.7%    15.1%

    Basic Earnings Per
     Share                 $0.56                   $0.50                    12.0%            $1.09    $1.00         9.0%

    Basic Weighted
     Average Shares
     Outstanding           7,868                   8,012                                     7,877    8,011

    Earnings Per Share
     (Diluted)             $0.56                   $0.50                    12.0%            $1.09    $1.00         9.0%

    Diluted Weighted
     Average Shares
     Outstanding           7,872                   8,064                                     7,882    8,069

                                                         YI Consolidated
                                                    Consolidated Balance Sheet
                                               June 30, 2012 and December 31, 2011
                                                        (In Thousands USD)

                                                                         (Unaudited)
                                                                           June 30             December 31
    Assets                                                                                2012                 2011
                                                                                          ----                 ----
    Current assets
             Cash                                                                     $9,084               $1,031
             Accounts receivable, net                                                 12,858               12,066
             Inventories                                                              16,596               17,161
             Other current assets                                                      4,783                4,729

    Total current assets                                                              43,321               34,987
                                                                                      ------               ------

    Property, plant and equipment, net                                                31,515               32,272
    Goodwill                                                                          80,226               80,254
    Intangible assets                                                                 10,888               11,130
    Other assets                                                                         819                1,143
                                                                                         ---                -----

    Total assets                                                                    $166,769             $159,786
                                                                                    ========             ========

                    Liabilities and Equity
    Current liabilities
              Accounts payable and accrued
              liabilities                                                             $9,641               $9,134
    Total current liabilities                                                          9,641                9,134
                                                                                       -----                -----

    Long-term debt                                                                         -                  650
    Long-term secured borrowing                                                            7                    9
    Deferred income taxes                                                             19,333               19,534
    Other noncurrent liabilities                                                         203                  206
    Total liabilities                                                                 29,184               29,533
                                                                                      ------               ------

    Stockholders' equity
             Common stock                                                                102                  102
             Additional paid-in capital                                               24,679               24,708
             Retained earnings                                                       166,619              158,647
             Common stock in treasury, at cost                                       (53,453)             (52,924)
              Accumulated other comprehensive
              (loss)                                                                    (362)                (280)
    Total stockholders' equity                                                       137,585              130,253
                                                                                     -------              -------

    Total liabilities and stockholders'
     equity                                                                         $166,769             $159,786
                                                                                    ========             ========

SOURCE Young Innovations, Inc.


Source: PR Newswire