Exhibit 99.1
National Dentex Corporation Announces Sales and Earnings
for the Second Quarter 2007
WAYLAND, Mass.--(BUSINESS WIRE)--Aug. 3, 2007--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 six months and second
quarter ended June 30, 2007. Sales for the quarter totaled $44,434,000 compared
with $38,116,000 a year earlier, an increase of 16.6%. Net income for the
quarter was $2,417,000 or $.43 per share on a diluted basis compared to
$2,320,000 or $.40 per share on a diluted basis in 2006.
For the six months ended June 30, 2007, sales were $87,777,000 compared to
$74,905,000 for the same period in 2006, an increase of 17.2%. Net income for
the six months of 2007 increased to $4,661,000 or $.82 per share on a diluted
basis from $4,469,000 or $.78 per share on a diluted basis in the year-ago
period.
David Brown, President and CEO stated: "We believe that the productivity
initiatives we began implementing during the first quarter of 2007 are beginning
to contribute positively to our operating results. During the quarter net income
increased $97,000 or 4.2%. Significantly, however, operating income increased
$530,000 or 12.2% over the same quarter in 2006. This brings the increase in net
income and operating income for the six months 2007 versus 2006 to $192,000 or
4.3% and $1,089,000 or 13.1%, respectively. We believe these trends will
continue as we persist in our efforts to better manage our labor requirements as
we implement and leverage new technology. Sales in the first half of 2007, while
up 17.2% were driven by our acquisitions from 2006. Internal sales, or sales at
laboratories owned over one year, declined 1.3%. We continue to aggressively
pursue acquisitions and remain focused on capitalizing on our Company's
strengths. To do this we intend to continue to differentiate our laboratories
through their local presence and their commitment to unsurpassed service, high
quality products and prompt delivery."
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, net income, operating income, operating results, 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 Six Months Ended
June 30, June 30,
--------------- ----------------
2006 2007 2006 2007
------- ------- -------- -------
Net Sales $38,116 $44,434 $74,905 $87,777
Cost of Goods Sold 21,825 24,873 42,686 49,156
------- ------- -------- -------
Gross Profit 16,291 19,561 32,219 38,621
Operating Expenses 11,946 14,686 23,913 29,226
------- ------- -------- -------
Operating Income 4,345 4,875 8,306 9,395
Other Expense 227 223 438 398
Interest (Income) Expense 281 754 570 1,481
------- ------- -------- -------
Income Before Tax 3,837 3,898 7,298 7,516
Income Taxes 1,517 1,481 2,829 2,855
------- ------- -------- -------
Net Income $ 2,320 $ 2,417 $ 4,469 $ 4,661
======= ======= ======== =======
Weighted Average
Shares Outstanding:
- Basic 5,493 5,536 5,462 5,523
- Diluted 5,774 5,666 5,750 5,654
Net Income per Share:
- Basic $ 0.42 $ 0.44 $ 0.82 $ 0.84
- Diluted $ 0.40 $ 0.43 $ 0.78 $ 0.82
National Dentex Corporation
Selected Balance Sheet Data
(Unaudited)
(In thousands)
December 31, June 30,
2006 2007
------------ --------
Cash and Equivalents $ 648 $ 570
Accounts Receivable - net 17,938 18,613
Current Assets 29,052 30,834
Current Liabilities 22,820 22,904
------------ --------
Working Capital 6,232 7,930
Total Assets 148,490 150,496
Long Term Obligations 42,876 39,418
Stockholders' Equity $ 82,794 $ 88,174
CONTACT: National Dentex Corporation
Richard F. Becker, 508-358-4422
Executive Vice President, Treasurer