Exhibit 99.1
National Dentex Corporation Announces First Quarter Results
WAYLAND, Mass.--(BUSINESS WIRE)--April 28, 2004--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, 2004. For the quarter, the Company reported $27,928,000
in sales with net income of $1,705,000 or $.48 per share on a diluted basis.
Sales for the same quarter of the prior fiscal year were $23,965,000 with net
income of $1,332,000 or $.39 per share on a diluted basis.
David Brown, President and CEO, commented: "We are encouraged by the
improved results of the first quarter of 2004. Not only have the laboratories we
acquired in 2003 been integrated into our system, but our internal sales have
stabilized and begun to grow. This combination produced a 16% increase in sales
versus the first quarter of 2003. This growth, coupled with our continued
emphasis on cost containment, particularly labor and related benefits, resulted
in a 28% increase in net income. These results and our improved operating
margins reflect the leverage that increased sales through the Reliance(TM)
program can bring to the Company. We believe that as the economic conditions
continue to improve, our laboratories, with their proven ability to deliver
outstanding service, superior quality and prompt delivery will continue to build
on that leverage.
"We did not close on any acquisitions in the quarter but have continued to
actively pursue potential candidates. We expect that the discussions we recently
have had, as well as new ones just begun, will eventually result in the addition
of more quality dental laboratories to our expanding network.
"We will continue our efforts in the balance of 2004 with the same energy
and attention as exerted in the first quarter. In the face of the past industry
slowdown, we worked diligently at coordinating our internal focus on
efficiencies while expanding our external presence through the Reliance(TM)
program. We continue to believe that through these efforts we have distinguished
ourselves as a true value-added resource to our dentist partners. As these
relationships continue to take hold and expand, we remain committed to utilizing
them to build a sustained and profitable growth for National Dentex and its
shareholders."
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.
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,
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2003 2004
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Net Sales $ 23,965 $ 27,928
Cost of Goods Sold 14,410 16,330
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Gross Profit 9,555 11,598
Operating Expenses 7,345 8,678
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Operating Income 2,210 2,920
Other Expense 52 67
Interest (Income) Expense (9) 11
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Income Before Tax 2,167 2,842
Income Taxes 835 1,137
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Net Income $ 1,332 $ 1,705
============== ==============
Weighted Average Shares Outstanding:
- Basic 3,403 3,435
- Diluted 3,446 3,587
Net Income per Share:
- Basic $ 0.39 $ 0.50
- Diluted $ 0.39 $ 0.48
National Dentex Corporation
Selected Balance Sheet Data
(In thousands)
December 31, 2003 March 31, 2004
----------------- ----------------
Cash and Equivalents $ 1,835 $ 1,232
Accounts Receivable - net 11,914 13,482
Current Assets 21,930 23,107
Current Liabilities 9,678 10,656
Working Capital 12,252 12,451
Total Assets 72,233 75,203
Long Term Obligations 2,415 2,556
Stockholders' Equity $ 60,140 $ 61,991
CONTACT: National Dentex Corporation
Richard F. Becker, 508-358-4422