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

November 09, 2010 | About:

10qk

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Young Innovations Inc. (YDNT) filed Quarterly Report for the period ended 2010-09-30.

Young Innovations Inc. has a market cap of $239.7 million; its shares were traded at around $30.08 with a P/E ratio of 16.4 and P/S ratio of 2.5. The dividend yield of Young Innovations Inc. stocks is 0.5%. 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, Mario Gabelli of GAMCO Investors.

Highlight of Business Operations:

Net sales increased $1,618 or 6.5% to $26,423 in the third quarter of 2010 from $24,805 in the third quarter of 2009. Sales growth in the quarter was attributable to increases both in sales of consumable products and diagnostic equipment. Consumable product sales include preventive, infection control, endodontic, micro-applicator and home care product lines. The increase in diagnostic sales for second consecutive quarter 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 $145.

Gross profit increased $634 or 4.5% to $14,582 in the third quarter of 2010 compared to $13,948 in the third quarter of 2009. Gross margin percentage decreased to 55.2% in 2010 from 56.2% in 2009. The increase in gross margin dollars is a result of higher sales volume, while the decline in gross margin percentage is primarily attributable to the mix of products sold.

Net sales increased $3,776 or 5.2% to $76,982 in the first nine months of 2010 from $73,206 in the first nine months of 2009. Sales growth for the first nine months was attributed to an increase in sales of consumable products and diagnostic product line. Consumable product sales 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. Foreign currency negatively impacted sales by $127 for the nine months ended as the U.S. dollar strengthened for the nine months ended September 30, 2010.

Gross profit increased $2,037 or 5.0% to $42,979 in the first nine months of 2010 compared to $40,942 in the first nine months of 2009. Gross margin remained relatively flat at 55.8% of net sales in the first nine months of 2010 compared to 55.9% in the first nine months of 2009. The increase in gross margin dollars is a result of higher sales volume while the gross margin percentage remained consistent when compared to the prior year.

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 $15,429 and $17,661 for the first nine months of 2010 and 2009, respectively. Net capital expenditures for property, plant and equipment were $2,590 and $3,135 for the nine months of 2010 and 2009, respectively. Operating cash flow decreased in 2010 when compared to 2009 primarily due to an increase in accounts receivable resulting from increased sales. The timing of collections did not adversely impact the aging of receivables. Additionally, planned increases in inventory were made.

Market risks relating to the Company s operations result primarily from changes in interest rates and changes in foreign exchange rates. From time to time, the Company finances acquisitions, capital expenditures and its working capital needs with borrowings under a revolving credit facility. Due to the variable interest rate feature on the debt, the Company is exposed to interest rate risk. A theoretical 100 basis point increase in interest rates would have resulted in approximately $51 and $207 of additional interest expense in the three months ended September 30, 2010 and 2009, respectively, and $91 and $235 in the nine months ended September 30, 2010 and 2009, respectively. Alternatively, a 100 basis point decrease in interest rates would have reduced interest expense by approximately $51 and $207 in the three months ended September 30, 2010 and 2009, respectively, and $91 and $235 in the nine months ended September 30, 2010 and 2009, respectively.

Read the The complete Report

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10qk
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