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Investors Press Release 02 - 2000 2nd Qtr
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NATIONAL DENTEX CORPORATION ANNOUNCES SECOND QUARTER 2000 RESULTS NATIONAL DENTEX CORPORATION, WAYLAND, MASSACHUSETTS, July 26, 2000- National Dentex Corporation (NASDAQ: NADX), the largest owner/operator of dental laboratories in the United States, today announced that second quarter sales increased 9.0% compared to the same period in 1999. Sales for the quarter ended June 30, 2000 totaled $19,866,000 compared with $18,233,000 a year earlier. Net income for the quarter increased to $1,757,000 or $.49 per share on a diluted basis from $1,553,000 or $.44 per share on a diluted basis. For the six months ended June 30, 2000, sales were $38,826,000 compared to the first half of 1999 of $35,245,000, an increase of 10.2%. Net income was $3,210,000 or $.90 per share on a diluted basis compared to $2,763,000 or $.78 per share on a diluted basis for the same period 1999. David Brown, President, stated: "During the first half we have, as mentioned in our first quarter release, reaped the benefits of a newly revamped field management team charged with focusing each laboratory on improving internal efficiencies. Internal growth for the six months was 7.6% on a per day basis, the highest level of growth since 1995. In addition to these very positive sales increases, improvements in productivity have helped drive net income before amortization, interest and taxes up $614,000 or 11.9%. I believe that while this is, and will remain, an ongoing process, we are well positioned to continue the momentum. "In addition, we continue to review potential acquisitions as an additional source of growth. We are in discussions with a number of candidates, both stand alone facilities in new markets, as well as combinations involving our existing laboratories. We feel very strongly that the efforts extended in this area will ultimately add high quality dental laboratories to our network." National Dentex Corporation serves an active customer base of over 10,000 dentists through dental laboratories located in 22 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. This press release contains forward-looking statements within the meaning of the federal securities laws. The Company’s actual results could be materially different as a result of a number of factors, including general economic conditions, the Company’s ability to acquire and successfully operate additional laboratories, governmental regulation of health care, trends in the dental industry towards managed care, increases in labor and material costs and other risks indicated from time to time in the Company’s filings with the Securities and Exchange Commission. Earnings Results (In Thousands, except per share data) | | Quarter Ended | | Six Months Ended | | | June 30, | | June 30, | | | 1999 | 2000 | | 1999 | 2000 | | | | | | | | Net Sales | $ 17,146 | $ 15,801 | | $ 52,391 | $ 47,651 | | | | | | | | Net Laboratory Operating Income | 2,847 | 2,590 | | 9,474 | 8,633 | | | 16.6% | 16.4% | | 18.1% | 18.1% | | | | | | | | Field Support and Corporate Overhead | 665 | 679 | | 2,139 | 1,994 | | | | | | | | Income Before Amortization and Interest | 2,182 | 1,911 | | 7,335 | 6,639 | | | | | | | | Amortization | 339 | 285 | | 992 | 836 | Interest | (84) | (63) | | (204) | (119) | | | | | | | | Income Before Tax | 1,927 | 1,689 | | 6,547 | 5,922 | | | | | | | | Income Taxes | 762 | 673 | | 2,619 | 2,357 | | | | | | | | Net Income | $ 1,165 | $ 1,016 | | $ 3,928 | $ 3,565 | | | | | | | | Weighted Average Shares Outstanding: | | | | | | - Basic | 3,550 | 3,493 | | 3,542 | 3,480 | - Diluted | 3,578 | 3,556 | | 3,563 | 3,572 | | | | | | | | Net Income per Share: | | | | | | - Basic | $ 0.33 | $ 0.29 | | $ 1.11 | $ 1.02 | - Diluted | $ 0.33 | $ 0.29 | | $ 1.10 | $ 1.00 |
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