| Young Innovations, Inc. | |||
| Proposed Ticker: | YUNG | 13705 Shoreline Court | |
| Exchange: | NASDAQ-National Market | Earth City, MO 63045 | |
| Industry: | Manufacturing (SIC Code 3843) | (314) 344-0010 | |
| # of Employees: | 166 | ||
| Type of Shares: | Common Shares | Filing Date: | 9/4/97 | |
| U.S. Shares Filed: | 2,000,000 | Filing Range: | $10.00 - $12.00 | |
| Non-U.S. Shares Filed: | 0 | Offering Amount: | $22,000,000 | |
| Primary Shares: | 2,000,000 | Expenses: | $450,000 | |
| Secondary Shares: | 0 | Shares Out After: | 6,410,296 |
| Manager | Tier | Phone |
| Robert W. Baird & Company | Lead Manager | (414) 765-3632 |
| Cleary, Gull, Reiland & McDevitt, Inc. | Co-manager | (800) 221-2537 |
| Issuer's Law Firm: | Armstrong, Teasdale, Schlafly & Davis |
| Bank's Law Firm: | McDermott, Will & Emery |
| Auditor: | Arthur Andersen |
| Registrar/Transfer Agent: | UMB Bank N.A. MO |
Dollar amounts in U.S. millions except for per share data | |||||
| 6 Month Ending Financials | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Unaudited Income | Balance Sheet | ||
| 12/31/96 | 6/30/97 | 6/30/96 | 6/30/97 | ||
| Revenue: | $21.58 | $12.14 | $9.04 | Assets: | $31.87 |
| Net Income: | $3.27 | $1.76 | $1.44 | Curr Assets: | $5.15 |
| EPS: | $0.74 | $0.40 | $0.32 | Liabilities: | $19.80 |
| Prior EPS: | $0.71 | $2.35 | $2.28 | Curr Liabilities: | $11.01 |
| Cash Flow/Oper: | $4.47 | -$2.04 | -$1.62 | Equity: | $12.07 |
| Cash Flow/Fin: | $5.27 | -$0.29 | -$0.66 | Cash: | $0.13 |
| Cash Flow/Inv: | -$9.69 | -$0.29 | Working Cap: | -$5.86 | |
| Business Description |
| The company is a leading designer, manufacturer and marketer of single-use supplies, autoclavable instruments and other products used by dental professionals, primarily in preventive dentistry and infection control. The Company has a leading market share in certain segments of the preventive dentistry market which it believes is due to its (i) longstanding reputation for high quality, innovative and reliable products; (ii) widespread name recognition and ability to leverage the Young and Denticator brands; and (iii) consummation of strategic acquisitions. Through the successful implementation of the Company's business strategy and the acquisitions of Lorvic and Denticator, the Company's net sales and income from operations have grown at compound annual rates of 21.4% and 30.7%, respectively, from 1992 through 1996. The Company's disposable and metal prophy angles, cups and brushes (collectively, "Prophy Products"), which are integral components used in the cleaning and polishing of teeth by dental professionals, represented 76.9% of the Company's pro forma net sales in 1996. The Company's branded Prophy Products currently have an estimated domestic market share of 53%, up from 22% in 1990. Additionally, the Company has developed and acquired aspiration and infection control products, as well as complementary preventive products such as pastes, fluorides and fluoride applicators. |
| Competition |
| The markets for the Company's products are highly competitive. The Company believes that the principal competitive factors in all of its markets are product features and reliability, name recognition, distribution network, customer service and, to a lesser extent, price. The relative speed with which the Company can develop, complete testing of, obtain regulatory approval for and sell commercial quantities of new products is also an important competitive factor. Failure of the Company to offer products which either contain features similar to or more desirable than products offered by its competitors or, in certain cases, to meet the prices offered by its competitors, could have a material adverse effect on the business, financial condition and results of operations of the Company. Some of the Company's competitors have greater financial, research, manufacturing and marketing resources than the Company. The Company's inability to compete effectively against existing or future competitors could result in a material adverse effect on the Company's business, financial condition and results of operations. |
| Business Plan |
| The Company's objective is to profitably establish the number one or number two market share position in each of the market segments in which it competes. In order to achieve this objective, the Company's business strategy comprises the following elements: (i) expand its market position in preventive and infection control products by leveraging its strong brand names; (ii) enhance its strong manufacturing capabilities; and (iii) emphasize recurring revenue streams and cash flows from single-use products. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used to repay indebtedness, for working capital needs and for general corporate purposes including potential acquisitions. |
| Name of Shareholder | % Owned Before | % Owned After |
| George E. Richmond | 74.80% | 51.40% |
| Richard G. Richmond | 18.00% | 12.40% |
| Officer Name | Title | Age |
| George E. Richmond | Chairman of the Board, President, Chief Executive Officer and Director | 63 |
| Jose L. Mendoza | President and Chief Executive Officer of Denticator | 51 |
| Richard G. Richmond | Secretary and Director; President of Young Dental | 43 |
| Richard C. Nemanick, Sr. | Senior Vice President of Corporate Affairs of Young Dental; President and Chief Executive Officer of Lorvic | 55 |
| Michael W. Eggleston | Vice President, Treasurer, Chief Financial Officer and Director | 42 |