Exhibit 99.1
National Dentex Corporation Announces Sales and Earnings
for the Third Quarter 2005
WAYLAND, Mass.--(BUSINESS WIRE)--Oct. 28, 2005--National Dentex
Corporation (NASDAQ: NADX), one of the largest owner/operators of
dental laboratories in the United States, today announced sales and
earnings for the third quarter ended September 30, 2005. Sales for the
quarter totaled $33,343,000 compared with $27,395,000 a year earlier,
an increase of 21.7%. Net income for the quarter was $1,379,000 or
$.25 per share on a diluted basis, an increase of 47.5% versus
$935,000 or $.17 per share on a diluted basis in 2004.
For the nine months ended September 30, 2005, sales were
$101,504,000 compared to $84,154,000 for the same period in 2004, an
increase of 20.6%. Net income increased 26.6%, to $5,745,000 or $1.03
per diluted share from $4,538,000 or $.83 per share on a diluted basis
in 2004.
David Brown, President and CEO stated: "Operationally, I am
pleased to report that we experienced significant margin improvements
in the third quarter with respect to gross profit and operating
income. Our price adjustments earlier in the year and our focus on
improving internal efficiencies through technical training and
management development programs helped us achieve these positive
results. Together with the promising performance from our recent
acquisitions, these operational efforts have helped to offset the cost
pressures we continue to incur in an extremely challenging economic
environment, which have been aggravated by increases in our costs for
providing employee benefits and complying with new and more
comprehensive securities and accounting regulatory requirements. We
plan on continuing to focus on improving our internal efficiencies and
containing our costs of doing business. We believe that this focus on
cost containment will allow us to better leverage future sales growth
to more profitably operate our growing network of laboratories."
About National Dentex
National Dentex Corporation serves an active customer base of over
22,000 dentists through 45 dental laboratories located in 30 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.
Safe Harbor Statement
This press release contains forward-looking statements within the
meaning of the federal securities laws, including statements regarding
our future financial performance, acquisition activity, marketplace
competitiveness, opportunities, and expected courses of action, 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 and other developments that directly or indirectly affect
consumer decisions as to whether and when to have dental procedures
performed; National Dentex's ability to acquire new laboratories and
its capacity to integrate and successfully operate previously acquired
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;
competition from other dental laboratories, including increased
competition from dental laboratories located in foreign countries with
lower labor and benefits costs, such as China; compliance with
evolving federal securities, accounting, and marketplace rules and
regulations applicable to publicly-traded companies on the Nasdaq
National Market; and other risks indicated from time to time in
National Dentex's filings with the Securities and Exchange Commission.
National Dentex Corporation
Earnings Results
(Unaudited)
(In Thousands, except per share data)
Quarter Ended Nine Months Ended
September 30, September 30,
-------------------- --------------------
2004 2005 2004 2005
-------------------- --------------------
Net Sales $27,395 $33,343 $84,154 $101,504
Cost of Goods Sold 16,734 19,800 49,894 58,055
-------------------- --------------------
Gross Profit 10,661 13,543 34,260 43,449
Operating Expenses 8,979 11,037 26,381 33,129
-------------------- --------------------
Operating Income 1,682 2,506 7,879 10,320
Other Expense 112 73 287 362
Interest (Income) Expense 11 191 28 540
-------------------- --------------------
Income Before Tax 1,559 2,242 7,564 9,418
Income Taxes 624 863 3,026 3,673
-------------------- --------------------
Net Income $935 $1,379 $4,538 $5,745
==================== ====================
Weighted Average
Shares Outstanding:
- Basic 5,194 5,334 5,175 5,310
- Diluted 5,492 5,578 5,447 5,564
Net Income per Share:
- Basic $0.18 $0.26 $0.88 $1.08
- Diluted $0.17 $0.25 $0.83 $1.03
National Dentex Corporation
Selected Balance Sheet Data
(Unaudited)
(In thousands)
December 31, September 30,
2004 2005
---------------------------
Cash and Equivalents $ 2,216 $ 3,065
Accounts Receivable - net 12,992 14,573
Current Assets 23,527 27,937
Current Liabilities 9,777 15,973
--------- ----------
Working Capital 13,750 11,964
Total Assets 81,831 117,464
Long Term Obligations 5,171 27,091
Stockholders' Equity $ 66,883 $ 74,400
CONTACT: National Dentex Corporation
Richard F. Becker, 508-358-4422
Executive Vice President, Treasurer & CFO