The company was founded in 1982 as H&M Laboratories Services Inc., which acquired six full-service dental labs and related branch laboratories from Healthco Inc. In 1983, the company changed its name to National Dentex Corp. and acquired 20 additional full-service dental labs and related branch labs from Lifemark Corp. Today, the company owns and operates 31 dental labs, consisting of 26 full-service dental labs and five branch labs located in 22 states throughout the U.S.

National Dentex has been consistently profitable over the last five years, earning between $1.00 and $1.50 a share since 1996. For the six months ended this June 30, the company earned 90 cents a share compared to 78 cents a share on a diluted basis for the same period in 1999. Sales were $38.8 million compared to $35.3 million, an increase of about 10 percent. 

The company’s products are produced by trained technicians working primarily in dental labs in accordance with work orders and cases — consisting of impressions, models and occlusal registrations of a patient’s teeth — provided by the dentist. Dentists are the direct purchasers of the company’s products. The firm’s dental labs perform numerous quality-control checks throughout the production cycle to improve the quality of its products and to make certain the design and appearance satisfy the needs of the dentist and the patient. The company’s branch dental labs are smaller in size and offer a limited number of products. When a branch receives an order that it cannot fill, it refers the business to its affiliated full-service dental lab. The company’s products are grouped into the three main categories: restorative products, reconstructive products, and cosmetic products.

Restorative products sold by National Dentex’s dental labs consist primarily of crowns and bridges. A crown replaces the part of a tooth that is visible, and is usually made of gold or porcelain. A bridge is a restoration of one or more missing teeth and is permanently attached to natural teeth or roots.

Reconstructive products sold by the company’s dental labs consist primarily of partial dentures and full dentures. Partial dentures are removable dental prostheses that replace missing teeth and associated structures. Full dentures are dental prostheses that substitute for the total loss of teeth and associated structures. The company also sells precision attachments, which connect a crown and an artificial prosthesis, and implants, which are fixtures anchored securely in the bone of the mouth to which a crown, partial or full denture is secured by means of screws or clips.

Cosmetic products sold by the company’s dental labs consist primarily of porcelain veneers and ceramic crowns. Porcelain veneers are thin coverings of porcelain cemented to the front of a tooth, to enhance personal appearance. Ceramic crowns are crowns made from ceramic materials that most closely replicate natural teeth. The company also sells composite inlays and onlays, which replace silver fillings for a more natural appearance, and orthodontic appliances, which are products fabricated to move existing teeth to enhance function and appearance.

National Dentex has taken quite a bite out of the profitable business of design, fabrication, marketing and sale of custom dental prosthetic appliances to and for dentists. While revenue growth for this company may not have you champing at the bit, the company’s profitability is simply mouth watering. 

Robert J. Oftring is president of Oftring & Co. Inc. in Worcester. He can be reached at (508) 791-7111 or at rjo@oftring.com. Information contained in this article was obtained from sources believed to be reliable. The author and/or his company may or may not have holdings in the companies profiled here. This article cannot be deemed a recommendation to buy or sell stock in the company profiled here.