YOUNG INNOVATIONS INC

CIK:0000949874|SEC Filings

Earnings Per Share

9 Months Ended

Sep. 30, 2012

10. EARNINGS PER SHARE:

Basic earnings per share (Basic EPS) is computed by dividing net income by the weighted average number of shares of Common Stock outstanding during the period. Diluted earnings per share (Diluted EPS) includes the dilutive effect of stock options, if any, using the treasury stock method. The following table sets forth the computation of basic and diluted earnings per share:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2012		2011		2012		2011
	(unaudited)				(unaudited)
Net income	$	4,297	$	4,100	$	12,898	$	12,138
Weighted average shares outstanding for basic earnings per share		7,905		8,018		7,887		8,013
Dilutive effect of stock options		9		23		4		52
Weighted average shares outstanding for diluted earnings per share		7,914		8,041		7,891		8,065
Basic earnings per share	$	0.54	$	0.51	$	1.63	$	1.51
Diluted earnings per share	$	0.54	$	0.51	$	1.63	$	1.51

Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011
Cash flows from operating activities:
Net income	$ 12,898	$ 12,138
Adjustments to reconcile net income to net cash flows from operating activities:
Depreciation and amortization	2,941	3,054
Share based compensation expense	1,367	1,389
Deferred income taxes	(160)	67
Excess tax benefit from share exercises	(97)	(963)
Gain on private equity investment fund	(694)	(545)
Gain on sale of building		(360)
Changes in assets and liabilities:
Trade accounts receivable	(962)	(1,613)
Inventories	(467)	(336)
Other current assets	66	64
Other assets	12	216
Accounts payable and accrued liabilities	1,467	492
Total adjustments	3,473	1,465
Net cash flows from operating activities	16,371	13,603
Cash flows from investing activities:
Payments for acquisitions of business and intangible assets, net of cash acquired		(55)
Purchases of property, plant and equipment	(1,497)	(2,301)
Proceeds from sale of building		431
Proceeds from private equity investment	1,008	778
Net cash flows from investing activities	(489)	(1,147)
Cash flows from financing activities:
Payments on long-term debt	(1,100)	(16,582)
Borrowings on long-term debt	450	10,482
Payments on long-term secured borrowings	(9)	(34)
Excess tax benefit from share exercises	97	963
Proceeds from stock options exercised	3,252	2,230
Purchase of treasury stock	(3,615)	(5,263)
Payment of cash dividends	(947)	(987)
Net cash flows from financing activities	(1,872)	(9,191)
Effect of exchange rate changes on cash and cash equivalents	(3)	(6)
Net change in cash and cash equivalents	14,007	3,259
Cash and cash equivalents, beginning of period	1,031	741
Cash and cash equivalents, end of period	$ 15,038	$ 4,000

Condensed Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011
Current assets:
Cash and cash equivalents	$ 15,038	$ 1,031
Trade accounts receivable, net of allowance for doubtful accounts of $248 and $250 in 2012 and 2011, respectively	13,004	12,066
Inventories	17,625	17,161
Other current assets	4,676	4,729
Total current assets	50,343	34,987
Property, plant and equipment, net	31,134	32,272
Goodwill	80,248	80,254
Other intangible assets	10,817	11,130
Other assets	813	1,143
Total assets	173,355	159,786
Current liabilities:
Accounts payable and accrued liabilities	10,470	9,134
Total current liabilities	10,470	9,134
Long-term debt		650
Long-term secured borrowing		9
Deferred income taxes	19,374	19,534
Other noncurrent liabilities	202	206
Total liabilities	30,046	29,533
Stockholders' equity:
Common stock, voting, $.01 par value, 25,000 shares authorized, 10,219 shares issued in 2012 and 2011;7916 shares outstanding in 2012 and 7868 shares outstanding in 2011	102	102
Additional paid-in capital	25,643	24,708
Retained earnings	170,601	158,647
Common stock in treasury, at cost; and 2303 shares in 2012 and 2,351 in 2011, respectively	(52,750)	(52,924)
Accumulated other comprehensive loss	(287)	(280)
Total stockholders' equity	143,309	130,253
Total liabilities and stockholders' equity	$ 173,355	$ 159,786