Exhibit 99
National Dentex Corporation Announces First Quarter Results
WAYLAND, Mass.--(BUSINESS WIRE)--April 25, 2003--National Dentex
Corporation (NASDAQ: NADX), one of the largest owner/operators of
dental laboratories in the United States, today announced its results
for the first quarter ended March 31, 2003. For the quarter, the
Company reported $23,965,000 in sales with net earnings of $1,332,000
or $.39 per share on a diluted basis. Sales for the same quarter of
the prior fiscal year were $23,414,000 with net earnings of $1,569,000
or $.44 per share on a diluted basis.
David Brown, President and CEO, commented: "While first quarter
sales remained relatively flat, net income was adversely impacted by
increased employee benefit costs, particularly health insurance
claims, resulting in the decline quarter to quarter. In spite of these
disappointing short term results we remain confident and optimistic
that the efforts and focus we have put on our NDX Reliance(R) national
marketing program will position us for the remainder of 2003, as we
come out of the economic slowdown being experienced throughout the
United States. As we continue to implement this strategy we become
more and more convinced that this effort will distinguish us as the
dental laboratory of choice by us becoming a value added resource in
the dentist-laboratory relationship.
"We announced, effective March 1st, the acquisition of Nobilium
Dental Laboratory of Houston, Texas, our first acquisition of 2003.
This laboratory, with annual sales of approximately $1,000,000, was
merged into our existing facility in Houston during the month of
March. We continue to actively pursue acquisitions as a way to
strengthen our position as a leading operator of high quality dental
laboratories in the United States."
National Dentex Corporation serves an active customer base of over
16,000 dentists through dental laboratories located in 27 states.
National Dentex's dental laboratories provide a full range of
custom-made dental prosthetic appliances.
This press release contains forward-looking statements within the
meaning of the federal securities laws, including statements regarding
our future financial performance, acquisition activity, and
marketplace competitiveness, that are based on our current
expectations, beliefs, assumptions, estimates, forecasts and
projections about the industry and markets in which National Dentex
operates. The statements contained in this release are not guarantees
of future performance and involve certain risks, uncertainties and
assumptions that are difficult to predict. Therefore, actual outcomes
and results may differ materially from what is expressed in such
forward-looking statements. Important factors that may affect future
operating and financial results include the timing, duration and
effects of adverse changes in overall economic conditions, the
Company's ability to acquire and successfully operate additional
laboratories, governmental regulation of health care, trends in the
dental industry towards managed care, increases in labor, benefits and
material costs, product development risks, technological innovations,
and other risks indicated from time to time in the Company's filings
with the Securities and Exchange Commission.
National Dentex Corporation
Earnings Results
(In thousands, except per share data)
Quarter Ended March 31,
2002 2003
Net Sales $ 23,414 $ 23,965
Net Laboratory
Operating Income 3,854 3,520
16.5% 14.7%
Field Support and
Corporate Overhead 1,051 1,203
Income before
Amortization and Interest 2,803 2,317
Amortization 200 159
Interest Income (34) (9)
Income Before Tax 2,637 2,167
Income Taxes 1,068 835
Net Income $ 1,569 $ 1,332
Weighted Average Shares Outstanding:
- Basic 3,450 3,403
- Diluted 3,596 3,446
Net Income per Share - Basic $ 0.45 $ 0.39
Net Income per Share - Diluted 0.44 0.39
National Dentex Corporation
Selected Balance Sheet Data
(In thousands)
December 31, March 31,
2002 2003
--------------------------
Cash and Cash Equivalents $5,808 $4,134
Accounts Receivable - net 10,484 11,078
Current Assets 24,300 23,586
Current Liabilities 8,801 7,389
Working Capital 15,499 16,197
Total Assets 65,817 65,641
Long Term Liabilities 3,070 2,973
Stockholders' Equity $53,946 $55,279
CONTACT: National Dentex Corporation
Richard F. Becker, 508/358-4422