Exhibit 99.1
National Dentex Corporation Announces First Quarter Results
WAYLAND, Mass.--(BUSINESS WIRE)--May 2, 2007--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, 2007. For the quarter, the
Company reported $43,343,000 in sales with net income of $2,244,000,
or $.40 per share on a diluted basis. Sales for the same quarter of
the prior fiscal year were $36,789,000 and net income was $2,149,000
or $.38 per share on a diluted basis.
David Brown, President and CEO, commented: "Coming off a very
challenging 2006 we are pleased with our start to 2007. Our financial
performance this past quarter, particularly in gross profit margin
improvement, we believe reflects some early returns on our recent
efforts to better leverage labor requirements with new technology. We
plan on continuing our ongoing efforts to reevaluate and optimize our
mix of labor and technology and thereby further improve our financial
performance throughout 2007. In this regard, we are focusing attention
on operational initiatives at all of our laboratories, seeking to
further improve execution throughout our system, and ensuring that our
entire organization consistently anticipates, meets, and exceeds our
clients' needs and expectations. 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
24,000 dentists through 48 dental laboratories located in 31 states
and one Canadian province. 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 sales revenues, 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 results and acquisition activity
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 on terms and conditions acceptable to it 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 benefit costs, such as China; National Dentex's
ability to attract, retain and motivate qualified personnel
particularly at a time of corporate realignment; 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 Global 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 and subsequently filed Quarterly Reports on
Form 10-Q.
National Dentex Corporation
Earnings Results
(Unaudited)
(In Thousands, except per share data)
Quarter Ended
March 31,
-----------------
2006 2007
-------- --------
Net Sales $36,789 $43,343
Cost of Goods Sold 20,861 24,283
-------- --------
Gross Profit 15,928 19,060
Operating Expenses 11,967 14,540
-------- --------
Operating Income 3,961 4,520
Other Expense 211 175
Interest Expense 289 727
-------- --------
Income Before Tax 3,461 3,618
Income Taxes 1,312 1,374
-------- --------
Net Income $2,149 $2,244
======== ========
Weighted Average
Shares Outstanding:
- Basic 5,430 5,510
- Diluted 5,727 5,635
Net Income per Share:
- Basic $0.40 $0.41
- Diluted $0.38 $0.40
National Dentex Corporation
Selected Balance Sheet Data
(Unaudited)
(In thousands)
December March
31, 31,
2006 2007
----------------
Cash and Equivalents $648 $1,800
Accounts Receivable - net 17,938 19,329
Current Assets 29,052 32,721
Current Liabilities 22,820 25,637
----------------
Working Capital 6,232 7,084
Total Assets 148,490 151,439
Long Term Liabilities 42,876 40,655
Stockholders' Equity $82,794 $85,147
CONTACT: NATIONAL DENTEX CORPORATION
Richard F. Becker, 508-358-4422
Executive Vice President, and Treasurer