Young Innovations, Inc. Announces Record EPS for the Year
ST. LOUIS, Feb. 3 /PRNewswire-FirstCall/ — Young Innovations, Inc. (Nasdaq: YDNT) today announced record earnings per share for the year ended December 31, 2009.
Sales for the fourth quarter of 2009 were $24.5 million, an increase of $0.6 million, or 2.5%, from the $23.9 million reported in the fourth quarter of 2008. Income from operations increased 13.9% from $4.8 million in the fourth quarter of 2008 to $5.5 million in the fourth quarter of 2009. Net income increased 13.5% to $3.5 million, compared with $3.1 million in the fourth quarter of 2008. Diluted earnings per share increased 10.0% in the fourth quarter of 2009 to $0.44 from $0.40 in the prior year quarter. Diluted earnings per share were affected by equity compensation expense of $0.04 and $0.03 for the quarters ended December 31, 2009 and 2008, respectively.
Sales for the year ended December 31, 2009 were $97.7 million, down 1.4% from $99.1 million in the prior year. Income from operations increased 9.0% from $19.8 million in 2008 to $21.5 million in 2009. Net income for fiscal year 2009 was $13.5 million, up 10.7% from $12.2 million in the prior year. Diluted earnings per share were $1.69 for the twelve months ended December 31, 2009, an increase of 11.9% from $1.51 in 2008. Diluted earnings per share were affected by equity compensation expense of $0.14 and $0.11 for 2009 and 2008, respectively.
Healthy demand for our consumable products, which include preventive, infection control, endodontic, micro-applicator and home care product lines, helped increase sales in the fourth quarter of 2009. Sales of our diagnostic product line declined from the prior year quarter, though at a slower rate than the past few quarters. Gross and operating margins benefited in the fourth quarter from a combination of price increases, favorable product mix, and improved operating efficiencies. Sales for the quarter received a minimal foreign exchange benefit, while for the year, a stronger U.S. dollar negatively impacted sales by approximately $557,000.
During the fourth quarter, we added sales staff at a majority of our product lines in an effort to expand and enhance customer relationships. Work to increase operating efficiencies included improving manufacturing productivity, implementation of software enhancements and ongoing consolidation work. Continued focus on new product development led to additions to our preventive product line as well as additional infection control products to be launched in the first quarter of 2010.
Overall, we are pleased with our ability to achieve growth in earnings throughout the year. We believe our investments to strengthen the company over the last few years have us well-positioned to take advantage of future growth opportunities.
A conference call has been scheduled for Thursday, February 4, 2010 at 11:00 a.m. Central Time and can be accessed through InterCall at http://tinyurl.com/yi4q09 or on 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 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 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 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.
Consolidated Statements of Income
(In Thousands, Except Earnings Per Share Data)
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
2009 2008 Change 2009 2008 Change
---- ---- ------ ---- ---- ------
Net Sales $24,531 $23,923 2.5% $97,737 $99,142 -1.4%
Cost of Goods Sold $10,903 11,519 -5.3% $43,166 46,847 -7.9%
------- ------ ---- ------- ------ ----
Gross Profit $13,628 $12,404 9.9% $54,571 $52,295 4.4%
% of Net Sales 55.6% 51.8% 55.8% 52.7%
Selling, General and
Administrative
Expense $8,135 7,581 7.3% $33,033 32,544 1.5%
% of Net Sales 33.2% 31.7% 33.8% 32.8%
Income from
Operations 5,493 4,823 13.9% 21,538 19,751 9.0%
% of Net Sales 22.4% 20.2% 22.0% 19.9%
Interest expense,
net 158 263 665 1,332
Other (income)
expense, net 38 (82) 133 (466)
Income Before Taxes 5,297 4,642 14.1% 20,740 18,885 9.8%
Provision for Income
Taxes 1,777 1,541 7,259 6,704
Net Income $3,520 $3,101 13.5% $13,481 $12,181 10.7%
% of Net Sales 14.3% 13.0% 13.8% 12.3%
Basic Earnings
Per Share $0.44 $0.40 -10.0% $1.71 $1.52 12.5%
Basic Weighted
Average Shares
Outstanding 7,924 7,812 7,881 7,999
Earnings Per
Share (Diluted) $0.44 $0.40 -10.0% $1.69 $1.51 11.9%
Diluted Weighted
Average Shares
Outstanding 8,059 7,832 7,966 8,069
Young Innovations, Inc.
Consolidated Balance Sheet
December 31, 2009 and December 31, 2008
(In Thousands)
(Unaudited)
December 31 December 31
Assets 2009 2008
---- ----
Current assets
Cash $67 $667
Accounts receivable, net 11,397 10,421
Inventories 14,816 16,486
Other current assets 4,849 4,759
----- -----
Total current assets 31,129 32,333
------ ------
Property, plant and equipment, net 33,668 32,905
Goodwill 80,374 80,334
Other intangible assets 12,097 10,602
Other assets 2,732 3,402
----- -----
Total assets $160,000 $159,576
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Liabilities and Equity
Current liabilities
Accounts payable and accrued
liabilities $8,377 $8,839
------ ------
Total current liabilities 8,377 8,839
----- -----
Long-term debt 13,979 29,349
Long-term secured borrowing 550 1,281
Deferred income taxes 15,947 13,829
Other noncurrent liabilities 282 -
--- ---
Total liabilities 39,135 53,298
------ ------
Stockholders' equity
Common stock 102 102
Additional paid-in capital 23,985 25,337
Retained earnings 145,756 133,531
Common stock in treasury, at cost (49,090) (52,673)
Accumulated other comprehensive
income (loss) 112 (19)
--- ---
Total stockholders' equity 120,865 106,278
Total liabilities and stockholders'
equity $160,000 $159,576
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SOURCE Young Innovations, Inc.