Young Innovations, Inc. Announces Results for the Quarter and Six-Months Ended June...

Young Innovations, Inc. Announces Results for the Quarter and Six-Months Ended
June 30, 2008 and Declares Quarterly Dividend

ST. LOUIS, July 23 /PRNewswire-FirstCall/ -- Young Innovations, Inc.
(Nasdaq: YDNT) today announced results for the quarter and six-months ended
June 30, 2008.
Sales for the second quarter of 2008 were $25.9 million, increasing 4.3%
over the $24.8 million reported for the second quarter of 2007. Income from
operations decreased 11.1% to $5.2 million from $5.8 million in the prior
year. Net income for the second quarter decreased 10.7% to $3.1 million from
$3.5 million in 2007. Diluted earnings per share for the second quarter of
2008 were $0.38, an increase of 2.7% over the $0.37 reported in the prior year
quarter. Diluted earnings per share were affected by equity compensation
expense of $0.03 and $0.02 for quarters ended June 30, 2008 and 2007,
respectively. Diluted shares outstanding for the quarter declined 12% to 8.2
million, which was primarily due to the repurchase of one million shares by
the Company in August 2007.
For the six months ended June 30, 2008, sales were $50.3 million,
increasing 5.4% over the $47.7 million reported in the prior year period.
Income from operations decreased 7.7% to $9.7 million from $10.5 million in
the prior year six-month period. Net income was $5.9 million, decreasing 5.7%
from $6.3 million in the prior year. Diluted earnings per share were $0.72
for the six months ended June 30, 2008, an increase of 5.9% from $0.68 in the
same period of 2007. Diluted earnings per share were affected by equity
compensation expense of $0.06 and $0.03 for the six months ended June 30, 2008
and 2007, respectively. Diluted shares outstanding for the six months ended
June 30, 2008 declined 11% to 8.2 million, which was primarily due to the
repurchase of one million shares by the Company in August 2007.
The sales increase this quarter reflects solid overall demand for our
products and strong sales in our home care product lines driven in part by a
preannounced July 1, 2008 price increase. A weaker U.S. dollar also provided
a benefit to sales of approximately $270,000. Our selling, general, and
administrative expenses increased relative to the prior year, primarily due to
ongoing investments in sales and marketing and higher equity compensation
expense. Interest expense increased as a result of higher debt levels
primarily related to the August 2007 repurchase of one million shares in
addition to continued stock buy-back activity during the quarter.
The Company completed its second facility consolidation this year, with
two additional facility consolidations expected prior to the end of the year.
We also plan to introduce several new products in the next two quarters, and
we continue to evaluate acquisitions and other opportunities to expand our
product offering.
Overall, we are satisfied with the progress we made in the second quarter
while we remain mindful of the overall economic environment as well as
continued uncertainty with regard to dealer ordering patterns. As we enter
the second half of the year, we are focused on successfully introducing
several new products, increasing the effectiveness of our sales and marketing
efforts and completing the remaining facility consolidations.
The Company also announced that on July 20, 2008 the Board of Directors
declared a quarterly dividend of $0.04 per share payable on September 15, 2008
to all shareholders of record on August 15, 2008.
A conference call has been scheduled for Thursday, July 24, 2008 at 11:00
A.M. Central Time and can be accessed through InterCall at
http://audioevent.mshow.com/345989/ or on the Company's website,
http://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 Six Months Ended
June 30, June 30,
2008 2007 Change 2008 2007 Change

Net Sales $25,903 $24,826 4.3% $50,298 $47,709 5.4%
Cost of Goods Sold 12,112 11,247 7.7% 23,569 21,775 8.2%
Gross Profit $13,791 $13,579 1.6% $26,729 $25,934 3.1%
% of Net Sales 53.2% 54.7% 53.1% 54.4%

Selling, General and
Administrative Expense $8,639 $7,783 11.0% $17,007 $15,404 10.4%
% of Net Sales 33.4% 31.4% 33.8% 32.3%

Income from Operations $5,152 $5,796 -11.1% $9,722 $10,530 -7.7%
% of Net Sales 19.9% 23.3% 19.3% 22.1%

Interest expense, net $326 $157 $745 $403
Other (income) expense,
net (40) 62 (365) 18

Income Before Taxes 4,866 5,577 -12.7% 9,342 10,109 -7.6%

Provision for Income
Taxes 1,765 2,105 3,410 3,816

Net Income $3,101 $3,472 -10.7% $5,932 $6,293 -5.7%
% of Net Sales 12.0% 14.0% 11.8% 13.2%

Basic Earnings Per
Share $0.38 $0.38 0.0% $0.73 $0.69 5.8%

Basic Weighted Average
Shares Outstanding 8,080 9,125 8,136 9,095

Earnings Per Share
(Diluted) $0.38 $0.37 2.7% $0.72 $0.68 5.9%

Diluted Weighted
Average Shares
Outstanding 8,154 9,272 8,226 9,249

Young Innovations, Inc.
Consolidated Balance Sheet
June 30, 2008 and December 31, 2007
(In Thousands)

(Unaudited)
June 30 December 31
Assets 2008 2007
Current assets
Cash $783 $528
Accounts receivable, net 12,949 13,074
Inventories 15,127 14,381
Other current assets 4,497 4,878
Total current assets 33,356 32,861

Property, plant and equipment, net 33,149 32,992
Goodwill 80,483 77,511
Intangible assets 10,868 11,133
Other assets 4,113 4,271

Total assets $161,969 $158,768

Liabilities and Equity
Current liabilities
Accounts payable and accrued
liabilities $10,249 $7,370
Total current liabilities 10,249 7,370

Long-term debt 34,195 36,646
Long-term secured borrowing 1,936 -
Deferred income taxes 11,611 11,414
Total liabilities 57,991 55,430

Stockholders' equity
Common stock 102 102
Additional paid-in capital 24,613 25,024
Retained earnings 127,910 122,631
Common stock in treasury, at
cost (48,989) (44,595)
Accumulated other comprehensive
income 342 176
Total stockholders' equity 103,978 103,338

Total liabilities and stockholders'
equity $161,969 $158,768

SOURCE Young Innovations, Inc.

Alfred E. Brennan, Chief Executive Officer, or Arthur L. Herbst, Jr.,
President & Chief Financial Officer, +1-312-644-6400, both of Young
Innovations, Inc.