Exhibit 99.1
National Dentex Corporation Announces Third Quarter 2003 Results
WAYLAND, Mass.--(BUSINESS WIRE)--Oct. 23, 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 third quarter ended September 30, 2003. Sales for the quarter
totaled $24,358,000 compared with $23,364,000 a year earlier, an
increase of 4.3%. Net income for the quarter was $1,277,000 or $.37
per share on a diluted basis compared to $1,303,000 or $.37 per share
on a diluted basis in 2002.
For the nine months ended September 30, 2003, sales were
$73,505,000 compared to $71,975,000 for the same period in 2002, an
increase of 2.1%. Net income was $4,259,000 or $1.23 per share on a
diluted basis compared to $4,743,000 or $1.32 per share on a diluted
basis for the comparable period of 2002.
David L. Brown, President and CEO, stated: "Although the
laboratory segment of the dental industry, particularly the crown and
bridge area, has been soft throughout 2003, in the third quarter we
began to see some slightly positive trends. While there can be no
assurances, we believe the efforts of strengthening our management and
technical teams while continuing the development of our national
marketing program, The NDX Reliance Program(TM), will position us to
take full advantage of the long-term opportunities presented to us as
the economic climate continues to improve.
Mr. Brown further added: "Throughout this year, and particularly
this quarter, we have been extremely successful in implementing our
ongoing acquisition strategy by acquiring four laboratories with in
excess of $8 million in annualized sales. In addition, we have in
place an agreement in principle to acquire another stand alone
facility, which is expected to add approximately $3 million more in
annualized sales. This transaction is subject to completion of due
diligence and the execution of definitive documents, and should close
early in the fourth quarter."
National Dentex Corporation serves an active customer base of over
18,000 dentists through dental laboratories located in 29 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 Nine Months Ended
September 30, September 30,
--------------------------------
2002 2003 2002 2003
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Net Sales $23,364 $24,358 $71,975 $73,505
Cost of Goods Sold 14,054 14,789 42,146 44,075
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Gross Profit 9,310 9,569 29,829 29,430
Operating Expenses 7,144 7,580 21,831 22,452
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Operating Income 2,166 1,989 7,998 6,978
Other Expense 56 90 149 218
Interest Income 13 6 56 21
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Income Before Tax 2,123 1,905 7,905 6,781
Income Taxes 820 628 3,162 2,522
--------------------------------
Net Income $1,303 $1,277 $4,743 $4,259
================================
Weighted Average
Shares Outstanding:
- Basic 3,475 3,428 3,468 3,418
- Diluted 3,541 3,497 3,586 3,464
Net Income per Share:
- Basic $0.37 $0.37 $1.37 $1.25
- Diluted $0.37 $0.37 $1.32 $1.23
National Dentex Corporation
Selected Balance Sheet Data
(In thousands)
December 31, September 30,
2002 2003
--------------------------
Cash and Equivalents $5,808 $3,780
Accounts Receivable - net 10,484 11,216
Current Assets 24,300 22,939
Current Liabilities 8,801 8,239
Working Capital 15,499 14,700
Total Assets 65,817 69,448
Long Term Obligations 3,070 2,602
Stockholders' Equity $53,946 $58,607
CONTACT: National Dentex Corporation
Richard F. Becker, 508/358-4422
Vice President, Treasurer & CFO