Union Dental Provides Shareholder Update
26 March 2009 - 10:30PM
Marketwired
Union Dental Holdings, Inc. (PINKSHEETS: UDHI) --
http://www.uniondental.com/ir -- a national provider of a suite of
dental services to union members and dentists, has released this
update in an effort to provide its shareholders with a greater
understanding of its business plan and its corporate strategy over
the coming year.
Union Dental consists of two primary businesses:
1. The Union Dental Network (the "Dental Network"). The Dental Network
was an idea conceived by our CEO more than 20 years ago. The idea
was simple: to provide union members with excellent dental care by
networking large numbers of dentists in various locations all over
the country. In order to execute on this idea, Union Dental would
need to convince both unions and dentists to participate. Twenty
years later, Union Dental has attracted the likes of the
Communications Workers of America (CWA), the International
Brotherhood of Electrical Workers (IBEW) the United Association of
Plumbers and Pipe Fitters (UA), National Federation of Public and
Private Employees (NFOPAPE), Fraternal Order of Police (FOP),
International Association of Fire Fighters (IAFF) and The
Association of Flight Attendants - Communications Workers of America
(AFA-CWA). These groups comprise some of the largest unions in
America. In terms of membership, our unions under contract number
120 of the 1,200 local CWA labor unions. Of the 120 local labor
unions and their 120,000 membership together with their families has
dental services purchasing power in excess of $192,000,000 per year.
CWA alone has approximately 3,200,000 insured offering much room for
expansion.
As a result of the purchasing power of our union worker customers,
we have been able to build networks of dentists all over America.
Today, there are a total of 1,900 dental providers that participate
in our Dental Network. Each dentist pays an annual fee of up to
$5,000 in order to control "areas of exclusivity" for a particular
group of union worker customers.
Union Dental believes that going forward, the Dental Network will be
successful and grow as long as it can execute on a four prong
strategy.
-- Union Dental has expanded and moved into its new Coral
Springs facility where they have become a Total Service
Provider (TSP) and offers patients all aspects of dentistry
including General Dentistry, Periodontics, Pedodontics,
Implants, Endodontics, Orthodontics, Cosmetic Dentistry, Oral
Surgery and Sedation Dentistry
-- Union Dental will continue to cherish its relationships with
the unions in America and build additional relationships with
local, regional and national unions.
-- The purchasing power of the Dental Network's union member
customers will make it easier for Union Dental to execute on
the second prong of the strategy -- to bring on additional
dentists. Over the course of the next 12 to 24 months, the
Company hopes to add approximately 1,000 new dentists to the
Dental Network.
-- The last part of the strategy is to cross sell our dentists
and provide them with access to additional union worker
customers by buying additional "areas of exclusivity." This
is to say that when we already have an established network in
a locale, and we add a new union for that same locale,
approximately 90% of the existing dentists pay an
additional fee to gain access to the new union worker
customer base. The ability to attract new dentists to the
Dental Network with relatively minimal marketing costs is
very powerful.
2. Union Dental has its own dental facility with 12 operatories and
a full service laboratory to make all prosthetics for the dental
industry. The Company intends to add local labor unions like the
Fraternal Order of Police and the National Federation of Public
and Private Employees to use the Coral Springs facility. In this
manner, UDHI can compile insurance reimbursement records of
insurance companies, providing these policies to union members.
Once UDHI has complete documentation of the reimbursements, it will
be able to sign additional union contracts in other local areas and
it will offer these unions and services to all dentists in the local
network. The initial plan will start in Broward County then expand
to the other adjacent counties in Florida before "rolling out" the
plan nationwide in the next 24 months.
About Union Dental Holdings, Inc., Direct Dental Services, Inc.
and Union Dental Corp.
Direct Dental Services and Union Dental Corp. are wholly owned
subsidiaries. Direct Dental Services provides dentists with "areas
of exclusivity" to participate with various unions including the
Communications Workers of America (CWA) and the International
Brotherhood of Electrical Workers (IBEW), United Association of
Plumbers and Pipe Fitters (UA) and The Association of Flight
Attendants - Communications Workers of America (AFA-CWA). Direct
Dental Services receives annual management fees from the dentists
in exchange for practicing in these "areas of exclusivity" where
CWA and IBEW members use the dentists' services. Union Dental
manages a dental practice in Coral Springs, Florida.
WEBSITE: www.uniondental.com/ir
"Safe-Harbor" Statement: Under the Private Securities Litigation
Reform Act of 1995. This press release may contain forward-looking
information within the meaning of Section 21E of the Securities
Exchange Act of 1934, as amended (the "Exchange Act"), including
all statements that are not statements of historical fact regarding
the intent, belief or current expectations of the Company, its
directors or its officers with respect to, among other things: (i)
the Company's financing plans; (ii) trends affecting the Company's
financial condition or results of operations; (iii) the Company's
growth strategy and operating strategy; and (iv) the declaration
and payment of dividends. The words "may," "would," "will,"
"expect," "estimate," "anticipate," "believe," "intend," and
similar expressions and variations thereof are intended to identify
forward-looking statements. Investors are cautioned that any such
forward-looking statements are not guarantees of future performance
and involve risks and uncertainties, many of which are beyond the
Company's ability to control, and that actual results may differ
materially from those projected in the forward-looking statements
as a result of various factors.
CONTACT INFORMATION: Dr. George D. Green President Email
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