Young Innovations Inc. (YDNT, Financial) filed Quarterly Report for the period ended 2011-06-30.
Young Innovations Inc. has a market cap of $211.3 million; its shares were traded at around $26.89 with a P/E ratio of 13.7 and P/S ratio of 2.1. The dividend yield of Young Innovations Inc. stocks is 0.6%. Young Innovations Inc. had an annual average earning growth of 4.8% over the past 10 years. GuruFocus rated Young Innovations Inc. the business predictability rank of 2.5-star.
Net sales increased $2,792 or 5.5% to $53,351 in the first six months of 2011 from $50,559 in the first six months of 2010. Sales growth for the first six months was attributed to the strong increase in sales of diagnostic equipment and solid gains from our consumable products. Consumable products include preventive, infection control, endodontic, micro-applicators and home care product lines. A weaker U.S. dollar positively impacted international sales by approximately $216 due to foreign currency exposure.
Gross profit increased $1,213 or 4.3% to $29,611 in the first six months of 2011 compared to $28,398 in the first six months of 2010. The gross margin percentage of 55.5% in the first six months of 2011 decreased from 56.2% in first six months of 2010. The increase in gross margin dollars was a result of higher sales volume, while the change in gross margin percentage is primarily attributable to the mix of products sold.
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 $8,254 and $12,046 for the first six months of 2011 and 2010, respectively. Operating cash flow decreased in 2011 when compared to 2010 primarily due to a decrease in accounts payable as a result of the timing of vendor payments and an increase in accounts receivable resulting from increased sales. The timing of collections did not adversely impact the aging of receivables. Net capital expenditures for property, plant and equipment were $1,223 and $1,832 for the six months of 2011 and 2010, respectively. Total cash flow benefited from an increase in net income, the sale of a building in Brownsville, Texas, as well as the sale of a portfolio company of the Companys private equity investment fund.
The Company maintains a credit agreement with a borrowing capacity of $60,000, which expires in July 2012. Borrowings under the agreement bear interest at rates ranging from LIBOR + 2.0% to LIBOR + 2.5%, or Prime, depending on the Companys level of indebtedness. Commitment fees for this agreement range from .25% to .5% of the unused balance. The agreement is unsecured and contains various financial and other covenants. As of June 30, 2011, the Company was in compliance with all of these covenants. During the six months ended June 30, 2011 the Company borrowed under the credit facility to finance investments in facilities and for working capital needs. At June 30, 2011 the Company had $0 in outstanding borrowings under this agreement and $60,000 available for borrowing. Management believes through its operating cash flows as well as borrowing capabilities, the Company has adequate liquidity and capital resources to meet its needs on a short and long-term basis.
A theoretical 100 basis point increase in interest rates would have resulted in approximately $18 and $72 of additional interest expense in the three month periods ended June 30, 2011 and 2010 and $31 and $100 for the six month periods ended June 30, 2011 and 2010, respectively. Alternatively, a 100 basis point decrease in interest rates would have reduced interest expense by approximately $18 and $72 in the three month periods ended June 30, 2011 and 2010, and $31 and $100 for the six months ended June 30, 2011 and 2010, respectively.
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Young Innovations Inc. has a market cap of $211.3 million; its shares were traded at around $26.89 with a P/E ratio of 13.7 and P/S ratio of 2.1. The dividend yield of Young Innovations Inc. stocks is 0.6%. Young Innovations Inc. had an annual average earning growth of 4.8% over the past 10 years. GuruFocus rated Young Innovations Inc. the business predictability rank of 2.5-star.
Highlight of Business Operations:
Net sales increased $1,548 or 6.0% to $27,326 in the second quarter of 2011 from $25,778 in the second quarter of 2010. The sales increase was driven by strong growth of our diagnostic product line as well as healthy gains from our consumables products in the second quarter. Consumable products include preventive, infection control, endodontic, micro-applicators and home care product lines. A weaker U.S. dollar positively impacted international sales by approximately $226 due to foreign currency exposure.Net sales increased $2,792 or 5.5% to $53,351 in the first six months of 2011 from $50,559 in the first six months of 2010. Sales growth for the first six months was attributed to the strong increase in sales of diagnostic equipment and solid gains from our consumable products. Consumable products include preventive, infection control, endodontic, micro-applicators and home care product lines. A weaker U.S. dollar positively impacted international sales by approximately $216 due to foreign currency exposure.
Gross profit increased $1,213 or 4.3% to $29,611 in the first six months of 2011 compared to $28,398 in the first six months of 2010. The gross margin percentage of 55.5% in the first six months of 2011 decreased from 56.2% in first six months of 2010. The increase in gross margin dollars was a result of higher sales volume, while the change in gross margin percentage is primarily attributable to the mix of products sold.
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 $8,254 and $12,046 for the first six months of 2011 and 2010, respectively. Operating cash flow decreased in 2011 when compared to 2010 primarily due to a decrease in accounts payable as a result of the timing of vendor payments and an increase in accounts receivable resulting from increased sales. The timing of collections did not adversely impact the aging of receivables. Net capital expenditures for property, plant and equipment were $1,223 and $1,832 for the six months of 2011 and 2010, respectively. Total cash flow benefited from an increase in net income, the sale of a building in Brownsville, Texas, as well as the sale of a portfolio company of the Companys private equity investment fund.
The Company maintains a credit agreement with a borrowing capacity of $60,000, which expires in July 2012. Borrowings under the agreement bear interest at rates ranging from LIBOR + 2.0% to LIBOR + 2.5%, or Prime, depending on the Companys level of indebtedness. Commitment fees for this agreement range from .25% to .5% of the unused balance. The agreement is unsecured and contains various financial and other covenants. As of June 30, 2011, the Company was in compliance with all of these covenants. During the six months ended June 30, 2011 the Company borrowed under the credit facility to finance investments in facilities and for working capital needs. At June 30, 2011 the Company had $0 in outstanding borrowings under this agreement and $60,000 available for borrowing. Management believes through its operating cash flows as well as borrowing capabilities, the Company has adequate liquidity and capital resources to meet its needs on a short and long-term basis.
A theoretical 100 basis point increase in interest rates would have resulted in approximately $18 and $72 of additional interest expense in the three month periods ended June 30, 2011 and 2010 and $31 and $100 for the six month periods ended June 30, 2011 and 2010, respectively. Alternatively, a 100 basis point decrease in interest rates would have reduced interest expense by approximately $18 and $72 in the three month periods ended June 30, 2011 and 2010, and $31 and $100 for the six months ended June 30, 2011 and 2010, respectively.
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