Young Innovations, Inc. (Nasdaq: YDNT) today announced record sales and earnings per share for the quarter ended March 31, 2010.
Sales for the first quarter of 2010 were $24.8 million, an increase of $1.0 million or 4.3% from the $23.8 million reported in the first quarter of 2009. Income from operations increased 8.2% to $5.4 million in the first quarter of 2010 from $5.0 million in the first quarter of 2009. Net income increased 12.8% to $3.6 million compared with $3.2 million in the first quarter of 2009. Diluted earnings per share increased 10.0% in the first quarter of 2010 to $0.44 from $0.40 in the prior year quarter. Diluted earnings per share were affected by equity compensation expense of $0.04 for the quarter ending March 31, 2010, as compared to $0.03 in the first quarter of 2009.
Overall demand for our products remained stable in the first quarter. Increased sales of consumable products were somewhat offset by weaker results in our diagnostic product line. Given the ongoing high unemployment rates in the U.S., the Company believes that the increased strength of consumable product sales may be more a function of timing of orders than a reflection of general market growth. A weaker U.S. dollar provided a benefit to sales of approximately $118,000. The improvement in operating margin was primarily the result of solid expense management.
We are pleased overall with the company's first quarter performance. Our new product initiatives continue to progress, and our sales and marketing organization continues to strengthen. Our outlook remains cautious as economic conditions, in general, and the unemployment rate, in particular, will continue to impact the dental industry. However, we believe that having reduced debt by $5.5 million to $8.5 million at the end of the first quarter, the company is well positioned to capitalize on future growth opportunities.