National Dentex Corporation (NASDAQ: NADX), one of the largest owner/operators of dental laboratories in the United States, today announced its results for the fourth quarter and year ended December 31, 2009. For the full year ended December 31, 2009, National Dentex reported sales of $161,195,000, a 6.1% decline from reported sales of $171,674,000 for the same period in 2008. Net income for 2009 increased to $5,877,000, or $1.02 per diluted share, from a net loss of $877,000, or a $.16 loss per diluted share, for fiscal 2008. Non-GAAP net income was $6,141,000 for fiscal 2009, or $1.07 per diluted share, compared to $5,240,000 for fiscal 2008, or $.93 per diluted share. Non-GAAP net income excludes non-cash goodwill impairment charges, including the tax effect. National Dentex recorded non-cash goodwill impairment charges of $6,950,000 in the fourth quarter of 2008 and $264,000 in the third quarter of 2009. These charges were taken with respect to certain laboratories in connection with management’s assessment of goodwill on its balance sheet and did not affect the Company’s cash flow. A reconciliation of Non-GAAP net income to net income is included at the end of this press release.
For the fourth quarter of 2009, National Dentex reported sales of $38,174,000, which was 7.5% lower than the fourth quarter sales in 2008 of $41,264,000. Net income for the quarter was $429,000, or $.07 per diluted share, compared to a net loss of $5,286,000, or a loss of $.93 per diluted share in 2008. Non-GAAP net income was $429,000, or $.07 per diluted share, for the fourth quarter of 2009 compared to $831,000, or $.15 per diluted share, for the same period in 2008. The difference is primarily attributable to a tax credit related to research activities from tax year 2002, recorded in the fourth quarter of 2008 as a result of the expiration of the final statute of limitations for IRS modification. The after tax effect on net income in the fourth quarter of 2008 for this item was $468,000, or $.08 per diluted share.