EXHIBIT 99.1
National Dentex Corporation Announces Sales and Earnings for
the Third Quarter 2007
WAYLAND, Mass.--(BUSINESS WIRE)--Nov. 5, 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 third quarter ended September 30, 2007. Sales for the
quarter totaled $41,204,000, compared with $34,613,000 for the third
quarter of 2006, an increase of 19.0%. Net income for the quarter was
$1,308,000 or $.23 per share on a diluted basis, increasing from
$925,000 or $.16 per share on a diluted basis in 2006.
For the nine months ended September 30, 2007, sales were
$128,981,000 compared to $109,518,000 for the same period in 2006, an
increase of 17.8%. Net income for the nine month period increased to
$5,970,000 or $1.05 per diluted share from $5,394,000 or $.94 per
share on a diluted basis in 2006.
David Brown, President and CEO stated: "Sales growth of 17.8% in
the nine months ended September 30, 2007, and 19.0% for the third
quarter, continues to be driven by our 2006 late year acquisitions.
Internal sales, meaning sales at laboratories owned over one year,
were down 1.2% for the nine months, but down only 0.9% for the
quarter, or $305,000. We have been focusing throughout the year on
leveraging our labor and benefit costs, our major expense component,
by implementing new technology and undertaking other measures to
enhance productivity and are starting to see very favorable results in
doing so. While our internal sales for the most recent quarter were
down $305,000, our labor and benefit costs for the same period and for
those same laboratories were down $1,121,000. As a result, third
quarter operating income increased $1,111,000 or 57.7% and net income
increased $383,000 or 41.4% over the same quarter in 2006."
Mr. Brown concluded, "In addition to this focus on internal
operations we remain committed to our acquisition strategy and will
continue to search out opportunities to add laboratories which will
enhance our position as the leading operator of high quality dental
laboratories in the United States."
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 Nine Months Ended
September 30, September 30,
--------------- -----------------
2006 2007 2006 2007
------- ------- -------- --------
Net Sales $34,613 $41,204 $109,518 $128,981
Cost of Goods Sold 21,145 23,713 63,831 72,869
------- ------- -------- --------
Gross Profit 13,468 17,491 45,687 56,112
Operating Expenses 11,543 14,455 35,456 43,681
------- ------- -------- --------
Operating Income 1,925 3,036 10,231 12,431
Other Expense 158 219 596 616
Interest (Income) Expense 278 690 848 2,172
------- ------- -------- --------
Income Before Tax 1,489 2,127 8,787 9,643
Income Taxes 564 819 3,393 3,673
------- ------- -------- --------
Net Income $ 925 $ 1,308 $ 5,394 $ 5,970
======= ======= ======== ========
Weighted Average Shares Outstanding:
- Basic 5,509 5,548 5,477 5,530
- Diluted 5,755 5,701 5,752 5,660
Net Income per Share:
- Basic $ 0.17 $ 0.24 $ 0.98 $ 1.08
- Diluted $ 0.16 $ 0.23 $ 0.94 $ 1.05
National Dentex Corporation
Selected Balance Sheet Data
(Unaudited)
(In thousands)
December 31, September 30,
2006 2007
------------ -------------
Cash and Equivalents $ 648 $ 1,814
Accounts Receivable - net 17,938 17,388
Current Assets 29,052 31,829
Current Liabilities 22,820 23,296
------------ -------------
Working Capital 6,232 8,533
Total Assets 148,490 152,135
Long Term Obligations 42,876 38,866
Stockholders' Equity $ 82,794 $ 89,973
CONTACT: National Dentex Corporation
Richard F. Becker, 508-358-4422
Executive Vice President, Treasurer