Exhibit 99.1
National Dentex Corporation Announces First Quarter Results
WAYLAND, Mass.--(BUSINESS WIRE)--April 27, 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 first quarter ended March 31, 2006. For the quarter, the
Company reported $36,789,000 in sales, an increase of 15.2% from the
first quarter of 2005. Net income for the quarter was $2,149,000, or
$.38 per share on a diluted basis, up 20.8% from the first quarter of
2005. In the same quarter of the prior fiscal year sales were
$31,946,000 and net income was $1,779,000 or $.32 per share on a
diluted basis. Sales and net income for the first quarter of the prior
fiscal year include only one month of results of operations of Green
Dental Laboratories, Inc., which National Dentex acquired on March 1,
2005.
David Brown, President and CEO, commented: "As we enter the second
quarter of 2006 we remain focused on our Reliance(TM) laboratories,
which are committed to delivering a superior client experience. We
also remain committed to providing our industry-leading technical
expertise to our clients and to giving them and their practices the
solutions they need. We believe that our new products, new
technologies, practice support and continuing education all help
differentiate us in the marketplace for dental laboratory products and
services and that our superior service will create a preference for
our laboratories and help us build a long-term loyal client base. We
believe that our approach also helps us by constantly bringing us
closer to our clients so that we can better understand, and ultimately
better cater to, their needs and preferences. Our acquisition program
will continue to search out opportunities to add laboratories to our
family of existing laboratories that are capable and committed to
providing this enhanced level of client service."
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;
National Dentex's ability to attract, retain and motivate qualified
personnel; changes in the cost or availability of raw materials,
particularly precious metals like gold, platinum and palladium; any
impairment in the carrying value of goodwill or other acquired
intangibles; 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, particularly under Item 1A, "Risk Factors" of
National Dentex's most recently filed Annual Report on Form 10-K.
National Dentex Corporation
Earnings Results
(Unaudited)
(In Thousands, except per share data)
Quarter Ended March 31,
------------------------------
2005 2006
--------------- -------------
Net Sales $31,946 $36,789
Cost of Goods Sold 18,018 20,861
--------------- -------------
Gross Profit 13,928 15,928
Operating Expenses 10,764 11,967
--------------- -------------
Operating Income 3,164 3,961
Other Expense 128 211
Interest Expense 71 289
--------------- -------------
Income Before Tax 2,965 3,461
Income Taxes 1,186 1,312
--------------- -------------
Net Income $1,779 $2,149
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Weighted Average
Shares Outstanding:
- Basic 5,272 5,430
- Diluted 5,557 5,727
Net Income per Share:
- Basic $0.34 $0.40
- Diluted $0.32 $0.38
National Dentex Corporation
Selected Balance Sheet Data
(Unaudited)
(In thousands)
December 31, March 31,
2005 2006
---------------------------
Cash and Equivalents $401 $2,419
Accounts Receivable - net 15,064 16,085
Current Assets 25,810 28,131
Current Liabilities 14,684 15,672
---------------------------
Working Capital 11,126 12,459
Total Assets 117,119 119,242
Long Term Liabilities 26,361 24,677
Stockholders' Equity $76,074 $78,893
CONTACT: National Dentex Corporation
Richard F. Becker, 508-358-4422
Executive Vice President, Treasurer & CFO