YOUNG INNOVATIONS, INC. 
By 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
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SOURCE Young Innovations, Inc.
