GuruFocus Premium Membership

Serving Intelligent Investors since 2004. Only 96 cents a day.

Free Trial

Free 7-day Trial
All Articles and Columns »

Young Innovations Inc. Reports Operating Results (10-Q)

August 06, 2010 | About:
10qk

10qk

18 followers
Young Innovations Inc. (YDNT) filed Quarterly Report for the period ended 2010-06-30.

Young Innovations Inc. has a market cap of $212.1 million; its shares were traded at around $26.57 with a P/E ratio of 15.1 and P/S ratio of 2.2. The dividend yield of Young Innovations Inc. stocks is 0.6%. Young Innovations Inc. had an annual average earning growth of 6.6% over the past 10 years. GuruFocus rated Young Innovations Inc. the business predictability rank of 2.5-star.YDNT is in the portfolios of Chuck Royce of Royce& Associates.

Highlight of Business Operations:

Net sales increased $1,141 or 4.6% to $25,778 in the second quarter of 2010 from $24,637 in the second quarter of 2009. Sales growth in the quarter was attributable to increases in sales of consumable products and diagnostic equipment. Consumable products include preventive, infection control, endodontic, micro-applicators and home care product lines. The increase in diagnostic sales reflects a more focused marketing effort in tandem with improved market conditions for capital equipment. A stronger U.S. dollar negatively impacted international sales by approximately $100 due to foreign currency exposure.

Gross profit increased $912 or 6.7% to $14,596 in the second quarter of 2010 compared to $13,684 in the second quarter of 2009. Gross margin percentage increased to 56.6% in 2010 from 55.5% in 2009. The increase in margin percentage is primarily attributable to increases in sales volume of units sold as well as the mix of those products when compared to the 2009.

Income from operations increased $295 or 5.5% to $5,693 in the second quarter of 2010 compared to $5,398 in the second quarter of 2009. The change was a result of the factors described above.

Gross profit increased $1,404 or 5.2% to $28,398 in the first six months of 2010 compared to $26,994 in the first six months of 2009. Gross margin increased to 56.2% of net sales in the first six months of 2010 compared to 55.8% in the first six months of 2009. The increase in margin percentage is primarily attributable to increases in sales volume of units sold as well as the mix of those products when compared to the first six months of 2009

Historically, the Company has financed its operations primarily through cash flow from operating activities and, to a lesser extent, through borrowings under its credit facility. Net cash flow from operating activities was $11,430 and $10,493 for the first six `months of 2010 and 2009, respectively. Net capital expenditures for property, plant and equipment were $1,832 and $2,308 for the six months of 2010 and 2009, respectively. Operating cash flow in 2010 improved due to increased net income and the reduction in inventories due to timing of product sales.

the Company is exposed to interest rate risk. A theoretical 100 basis point increase in interest rates would have resulted in approximately $72 and $264 of additional interest expense in the three month periods ended June 30, 2010 and 2009, and $100 and $265 for the six months ended June 30, 2010 respectively. Alternatively, a 100 basis point decrease in interest rates would have reduced interest expense by approximately $72 and $264 in the three month periods ended June 30, 2010 and 2009, and $100 and $265 for the six months ended June 30, 2010, and 2009, respectively.

Read the The complete Report

About the author:

10qk
GuruFocus - Stock Picks and Market Insight of Gurus

Rating: 3.3/5 (4 votes)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Email Hide