Exhibit 99.1
National Dentex Corporation Announces Fourth Quarter and Full Year 2005 Results
WAYLAND, Mass.--(BUSINESS WIRE)--March 1, 2006--National Dentex
Corporation (NASDAQ: NADX), one of the largest owner/operators of
dental laboratories in the United States, today announced its results
for the fourth quarter and year ended December 31, 2005. Sales for the
quarter totaled $34,339,000 compared with $27,599,000 a year earlier,
an increase of 24.4%. Net income for the quarter was $1,344,000 or
$.24 per share on a diluted basis compared to $621,000 or $.11 per
share on a diluted basis in 2004.
For the full year ended December 31, 2005, sales increased 21.6%
to $135,843,000 compared to $111,753,000 for the same period in 2004.
Net income increased 37.4% to $7,089,000 or $1.27 per share on a
diluted basis from $5,159,000 or $.94 per share on a diluted basis for
the comparable period of 2004.
Commenting on today's announcements, David Brown, President and
CEO, stated: "We have for several years worked diligently at
positioning National Dentex as a leader in the industry from the
perspective of both our clients and other dental laboratories, through
the Reliance(TM) program and our participation in industry-wide
organizations and initiatives. The results of 2005 show returns along
both fronts of our strategy. Our sales growth of 24.4% for the quarter
and 21.6% for the year included internal sales growth, measured as
sales at dental laboratories owned for both the years ended December
31, 2005 and 2004, of 6.1% for the quarter and 3.7% for the year. On
both a quarterly and an annual basis, these sales growth figures
represent improvements over results obtained over the past several
years. We have worked extremely hard at training our technical team to
respond timely to our clients' needs. We continue to believe that our
future growth depends on maintaining and growing this existing base of
our business by ensuring we meet or exceed the expectations of our
clients."
Mr. Brown added: "From an acquisition point of view we have aimed
to position National Dentex as a leader in our industry that truly
values its employees and is focused on providing high client service.
As our achievements in these areas are more widely acknowledged in our
industry, we continue to look for business opportunities with
companies that share this commitment to employees and client service.
Our acquisitions in 2005 of Green Dental Laboratories and Wornson
Polzin Dental Laboratory are examples of laboratories that we believe
embrace this commitment, and thereby have helped further strengthen
our industry position in the eyes of clients and other companies."
Mr. Brown concluded: "While we are happy with the results we
obtained last year, we are not content to rest on our laurels, and
remain committed to exploring ways in which we can build on our
existing platform and further enhance our position as a leader in our
industry."
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
(In Thousands, except per share data)
Quarter Twelve Months
Ended Ended
December 31, December 31,
---------------- ------------------
2004 2005 2004 2005
---------------- ------------------
Net Sales $27,599 $34,339 $111,753 $135,843
Cost of Goods Sold 17,059 20,325 66,953 78,380
---------------- ------------------
Gross Profit 10,540 14,014 44,800 57,463
Operating Expenses 9,375 11,600 35,755 44,729
---------------- ------------------
Operating Income 1,165 2,414 9,045 12,734
Other Expense 117 284 405 646
Interest (Income) Expense 14 125 42 665
---------------- ------------------
Income Before Tax 1,034 2,005 8,598 11,423
Income Taxes 413 661 3,439 4,334
---------------- ------------------
Net Income $621 $1,344 $5,159 $7,089
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Weighted Average
Shares Outstanding:
- Basic 5,220 5,405 5,187 5,333
- Diluted 5,516 5,684 5,465 5,601
Net Income per Share:
- Basic $.12 $.25 $.99 $1.33
- Diluted $.11 $.24 $.94 $1.27
National Dentex Corporation
Selected Balance Sheet Data
(In thousands)
December December
31, 31,
2004 2005
---------- ----------
Cash and Equivalents $2,216 $401
Accounts Receivable - net 12,992 15,064
Current Assets 23,527 25,301
Current Liabilities 9,777 14,684
Working Capital 13,750 10,617
Total Assets 81,831 117,119
Long Term Obligations 5,171 26,361
Stockholders' Equity $66,883 $76,074
CONTACT: National Dentex Corporation
Richard F. Becker, 508-358-4422
Executive Vice President, Treasurer & CFO