DELAWARE		04-3297858
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

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Part I.		Financial Information
Item 1		Financial Statements
		Consolidated Balance Sheets at December 31, 2001 and September 30, 2002 (unaudited)		3
		Consolidated Statements of Earnings for the Three Months and Nine Months Ended September 30, 2001 and 2002 (unaudited)		4
		Consolidated Statement of Stockholders’ Equity for the Nine Months Ended September 30, 2002 (unaudited)		5
		Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2001 and 2002 (unaudited)		6
		Notes to Interim Consolidated Financial Statements		7
Item 2		Management’s Discussion and Analysis of Financial Condition and Results of Operations		12
Item 3		Quantitative and Qualitative Disclosures About Market Risk		21
Item 4		Controls and Procedures		21
Part II.		Other Information
Item 1.		Legal Proceedings		22
Item 2.		Changes in Securities and Use of Proceeds		22
Item 3.		Defaults Upon Senior Securities		22
Item 4.		Submission of Matters to a Vote of Security Holders		22
Item 5.		Other Information		22
Item 6.		Exhibits and Reports on Form 8-K		22
Signatures				23

		December 31, 2001				September 30, 2002
						(unaudited)
ASSETS
Current assets:
Cash and cash equivalents		$	1,540			$	786
Accounts receivable, net			250				739
Receivables due from affiliated dental groups			19,366				18,775
Income taxes receivable			821				—
Inventories			1,816				1,927
Prepaid expenses and other receivables			1,972				2,375
Deferred income taxes			486				486
Total current assets			26,251				25,088
Property and equipment, net			29,605				30,651
Non-current assets:
Goodwill, net			2,704				5,017
Intangible assets, net			85,146				84,383
Other assets			629				687
Total non-current assets			88,479				90,087
Total assets		$	144,335			$	145,826
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	7,608			$	7,280
Accrued compensation, benefits and taxes			3,686				4,445
Accrued expenses			3,981				4,199
Accrued special charges			256				62
Current maturities of debt			1,597				1,561
Total current liabilities			17,128				17,547
Non-current liabilities:
Long-term debt			54,840				51,919
Deferred income tax			10,324				10,324
Other liabilities			267				342
Total non-current liabilities			65,431				62,585
Total liabilities			82,559				80,132
Stockholders’ equity:
Preferred stock, par value $0.01 per share, 1,000,000 shares authorized, no shares issued or outstanding			—				—
Common stock, par value $0.01 per share, 25,000,000 shares authorized, 7,754,893 and 7,821,867 shares issued and 7,172,393 and 7,239,367 shares outstanding at December 31, 2001 and September 30, 2002, respectively			78				78
Additional paid-in capital			47,606				47,924
Retained earnings			17,966				21,566
Treasury stock, at cost, 582,500 shares			(3,874	)			(3,874	)
Total stockholders’ equity			61,776				65,694
Commitments and contingencies
Total liabilities and stockholders’ equity		$	144,335			$	145,826

		Three Months Ended September 30,						Nine Months Ended September 30,
		2001			2002			2001			2002
Net Revenue		$	34,888		$	37,465		$	106,732		$	109,035
Operating expenses:
Salaries and benefits			16,094			17,088			48,601			48,457
Lab fees and dental supplies			5,539			6,088			17,184			18,043
Office occupancy			4,248			4,681			12,319			13,528
Other operating expenses			2,978			3,342			9,094			9,785
General corporate expenses			1,370			1,415			4,475			4,301
Depreciation			1,259			1,287			3,889			3,719
Amortization of goodwill and intangible assets			1,024			1,016			3,065			3,001
Special charges			—			—			1,004			—
Total operating expenses			32,512			34,917			99,631			100,834
Earnings from operations			2,376			2,548			7,101			8,201
Interest expense, net			1,042			755			3,470			2,341
Earnings before income taxes			1,334			1,793			3,631			5,860
Income taxes			543			693			1,462			2,260
Net earnings		$	791		$	1,100		$	2,169		$	3,600
Net earnings per common share:
Basic		$	0.11		$	0.15		$	0.30		$	0.50
Diluted		$	0.11		$	0.15		$	0.30		$	0.48
Weighted average common shares outstanding:
Basic			7,162			7,230			7,186			7,213
Diluted			7,304			7,460			7,351			7,436

		Number of Shares
		Common Stock Issued		Common Stock in Treasury			Common Stock			Additional Paid–in Capital			Retained Earnings			Treasury Stock at Cost				Total Stockholders’ Equity
Balance at December 31, 2001		7,755		(582	)		$	78		$	47,606		$	17,966		$	(3,874	)		$	61,776
Issuance of common stock for employee stock purchase plan		55		—				—			239			—			—				239
Issuance of common stock for exercised stock options, including tax benefit of $10,000		11		—				—			79			—			—				79
Net earnings		—		—				—			—			3,600			—				3,600
Balance at September 30, 2002		7,821		(582	)		$	78		$	47,924		$	21,566		$	(3,874	)		$	65,694