Exhibit 99.1
National Dentex Corporation Announces Second Quarter 2003 Results
WAYLAND, Mass.--(BUSINESS WIRE)--July 24, 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 second quarter ended June 30, 2003. Sales for the quarter
totaled $25,182,000 compared with $25,197,000 a year earlier. Net
income for the quarter was $1,650,000 or $.48 per share on a diluted
basis versus $1,871,000 or $.52 per share on a diluted basis in 2002.
For the six months ended June 30, 2003, sales were $49,147,000
compared to $48,611,000 for the same period in 2002. Net income was
$2,982,000 or $.86 per diluted share compared to $3,440,000 or $.95
per share on a diluted basis in 2002.
David Brown, President and CEO stated: "The laboratory segment of
the dental industry, particularly the crown and bridge area, has been
soft throughout 2003. We believe that a portion of this segment can be
temporarily deferred by patients, but in fact is eventually required
and is done. In this environment, in a labor intensive industry such
as ours, we are forced to look at labor costs in order to minimize the
impact of the slowdown in sales growth. We recently completed a review
of staffing at all of our laboratories in order to control this major
expense and its related components. We anticipate that this effort
will begin to impact our operating results in the second half of the
year.
Mr. Brown further added: "Another area we must take advantage of
in this environment is our acquisition program. We are finding our
opportunities to acquire quality laboratories increasing. Several
weeks ago we announced the acquisition of Salem Dental Laboratory in
Cleveland, Ohio, a laboratory with over $2,000,000 of annual revenues
and an outstanding, long term reputation in its marketplace. Also,
this week we signed a letter of intent to acquire another laboratory
of similar size to Salem Dental. This acquisition is subject to the
completion of due diligence and the execution of definitive
agreements, with a closing anticipated on or about September 1, 2003.
Mr. Brown concluded: "With acquisitions such as these, a
continuing focus on cost controls, in particular labor and labor
related costs, and our national marketing campaign, the NDX
Reliance(TM) Program, we believe we will be able to make up the year
to date shortfall in earnings of $.09 per share and produce an annual
earnings per share number for 2003 equal to the $1.66 in 2002. While
this is down from our guidance issued in November 2002, we believe
that this level of performance in light of the current business
climate, will position the Company for future growth opportunities as
industry trends improve."
National Dentex Corporation serves an active customer base of over
18,000 dentists through dental laboratories located in 28 states.
National Dentex's dental laboratories provide a full range of
custom-made dental prosthetic appliances, including dentures, crowns
and fixed bridges, and other dental specialties.
This press release contains forward-looking statements. 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, the Company's actual results
could be materially different from what is expressed in such
forward-looking statements. Important factors that may affect future
operating results include the effects of adverse changes in 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
and material costs and other factors described in our most recent
annual report on Form 10-K and quarterly reports on Form 10-Q filed
with the Securities and Exchange Commission.
National Dentex Corporation
Earnings Results
(In Thousands, except per share data)
Quarter Ended Six Months Ended
June 30, June 30,
2002 2003 2002 2003
Net Sales $25,197 $25,182 $48,611 $49,147
Cost of Goods Sold 14,462 14,876 28,092 29,286
Gross Profit 10,735 10,306 20,519 19,861
Operating Expenses 7,537 7,528 14,688 14,872
Operating Income 3,198 2,778 5,831 4,989
Other Expense 63 75 93 128
Interest Income 10 6 43 15
Income Before Tax 3,145 2,709 5,782 4,876
Income Taxes 1,274 1,059 2,342 1,894
Net Income $1,871 $1,650 $3,440 $2,982
Weighted Average
Shares Outstanding:
- Basic 3,479 3,421 3,465 3,412
- Diluted 3,615 3,464 3,603 3,455
Net Income per Share:
- Basic $0.54 $0.48 $0.99 $0.87
- Diluted $0.52 $0.48 $0.95 $0.86
National Dentex Corporation
Selected Balance Sheet Data
(In thousands)
December 31, June 30,
2002 2003
Cash and Equivalents $5,808 $5,677
Accounts Receivable - net 10,484 11,468
Current Assets 24,300 25,296
Current Liabilities 8,801 8,582
Working Capital 15,499 16,714
Total Assets 65,817 68,355
Long Term Obligations 3,070 2,535
Stockholders' Equity $53,946 $57,238
CONTACT: National Dentex Corporation
Richard F. Becker, 508/358-4422