DENTSPLY International Reports Results for Third Quarter 2011

October 27, 2011

- Record net sales for the third quarter increased 14.4% and 14.0% excluding precious metals
- Earnings per diluted share of $0.42 on a GAAP basis, and $0.46 on an adjusted basis
- Astra Tech acquisition completed ahead of schedule
- Increasing fiscal 2011 earnings guidance

York, PA - October 27, 2011 -- DENTSPLY International Inc. (NASDAQ-XRAY) today announced financial results for the three months ended September 30, 2011.  Net sales in the third quarter of 2011 increased 14.4% to $619.8 million compared to $541.8 million reported for the third quarter of 2010.   Net sales, excluding precious metal content, were $563.8 million, a 14.0% increase compared to $494.3 million in the third quarter of 2010.  The net sales growth, excluding precious metal content, was primarily the result of the acquisition of Astra Tech, which was completed on August 31, 2011.  The company also had positive impacts from foreign currency exchange rates and internal sales growth excluding orthodontic and Japanese sales.  

Net income attributable to DENTSPLY for the third quarter of 2011 was $60.6 million, or $0.42 per diluted share, representing a 4.5% decline compared to $0.44 per diluted share in the third quarter of 2010.  Earnings per diluted share in the third quarter of 2011, on an adjusted basis and excluding amortization of acquired intangible assets and other non-GAAP adjustments, were $0.46, essentially the same as the third quarter of 2010 despite the significant headwind from the orthodontic supply disruption in Japan.  A reconciliation of the non-GAAP measure to earnings per share calculated on a GAAP basis is presented on the attached table.

Bret Wise, Chairman and Chief Executive Officer, stated, "We are pleased to report another quarter of strong performance despite the orthodontic supply disruption in Japan.  We are also excited to have closed the Astra Tech transaction during the quarter allowing us to begin the integration process earlier than we originally anticipated. We are pleased with the early assessment coming out of our integration efforts."  

Mr. Wise went on to state, "Based upon our performance to date, our outlook for a stable global dental market, and increased confidence in the contribution from Astra Tech, we are increasing our guidance for adjusted earnings per diluted share in 2011 to a range of $2.01 to $2.07 per share from a comparable previous range of $1.96 to $2.04 per diluted share."  

As shown below, this adjusted EPS guidance range excludes all amortization related to purchased intangible assets including $0.04 per diluted share from acquisitions completed prior to July 1, 2011.

Previous FY2011 Non-GAAP EPS guidance $1.92 - $2.00
   
Amortization of acquired intangible assets* $0.04
   
Previous FY2011 non-GAAP EPS guidance, adjusted $1.96 - $2.04
   
New FY2011 non-GAAP EPS guidance $2.01 -$2.07
    
* Beginning in the third quarter of 2011 the Company updated its definition
of adjusted earnings to exclude amortization of acquired intangible assets.

ADDITIONAL INFORMATION

A conference call has also been scheduled for today, Thursday, October 27, 2011 at 8:30 a.m. (Eastern Time).  At that time, you will be able to discuss the third quarter earnings with DENTSPLY's Chairman and Chief Executive Officer, Mr. Bret Wise; President and Chief Operating Officer, Mr. Chris Clark; and Senior Vice President and Chief Financial Officer, Mr. William Jellison.   A live broadcast is available by accessing DENTSPLY's website at www.dentsply.com.  In order to participate in the call, dial (888) 727-7721 (for domestic calls) and (913) 312-1462 (for international calls).  The Conference ID # is 4131409.  

A rebroadcast of the conference call will be available to the public online at the DENTSPLY website www.dentsply.com.  You may also access a dial-in replay for one week following the call at (888)
203-1112 (for domestic calls) or (719) 457-0820 (for international calls), pass code #4131409.  

DENTSPLY International Inc. believes it is the world's largest designer, developer, manufacturer and marketer of professional dental products.  The Company has also expanded, through the Astra Tech acquisition, in consumable medical devices.  The Company is headquartered in the United States and operates in more than 120 other countries, principally through its foreign subsidiaries.  

This press release contains forward-looking information (within the meaning of the Private Securities Litigation Reform Act of 1995) regarding future events or the future financial performance of the Company that involve substantial risks and uncertainties.  Actual events or results may differ materially from those in the projections or other forward-looking information set forth herein as a result of certain risk factors. These risk factors include, without limitation; the continued strength of dental markets, the timing, success and market reception for our new and existing products, uncertainty with respect to governmental actions  with respect to dental products, outcome of litigation, continued support of our products by influential dental professionals, our ability to successfully integrate Astra Tech, risks associated with foreign currency exchange rates, and changes in the general economic environment that could affect the business.  Changes in such assumptions or factors could produce significantly different results.  

For an additional description of risk factors, please refer to the Company's most recent Form 10-K and its subsequent periodic reports on Forms 10-Q filed with the Securities and Exchange Commission.

Non-GAAP Financial Measures

In addition to the results reported in accordance with accounting principles generally accepted in the United States ("GAAP"), the Company provided adjusted operating income, adjusted net income attributable to DENTSPLY International and adjusted earnings per diluted share.  These adjusted amounts consist of GAAP amounts excluding (1) acquisition related costs and the expensing of purchase price adjustments, (2) restructuring and other costs, (3) amortization on purchased intangibles from acquisitions, (4) Orthodontic business continuity costs, (5) certain fair value adjustments at an unconsolidated affiliated company, and (6) income tax related adjustments.   Adjusted earnings per diluted share are calculated by dividing adjusted net income attributable to DENTSPLY International by diluted weighted-average shares outstanding.   Income tax related adjustments may include the impact to adjust the interim effective income tax rate to the expected annual effective income tax rate.

Adjusted operating income, adjusted net income attributable to DENTSPLY International, adjusted earnings per diluted share and operating tax rate are considered measures not calculated in accordance with GAAP, and therefore are non-GAAP measures.  These non-GAAP measures may differ from those of other companies.

The Company believes that the presentation of adjusted operating income, adjusted net income attributable to DENTSPLY International, adjusted earnings per diluted share and operating tax rate provides important supplemental information to management and investors seeking to understand the Company's financial condition and results of operations.  The non-GAAP financial information should not be considered in isolation from, or as a substitute for, measures of financial performance prepared in accordance with GAAP.

DENTSPLY INTERNATIONAL INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)

Three Months Ended Nine Months Ended
September 30, September 30,
2011 2010 2011 2010
Net sales   $ 619,759   $ 541,815   $ 1,799,705   $   1,652,845
Net sales, excluding precious metal content 563,751 494,345   1,654,746 1,510,501
Cost of products sold   322,111   269,001 887,222 810,399
Gross profit 297,648 272,814 912,483 842,446
 % of Net sales 48.0% 50.4% 50.7% 51.0%
 % of Net sales, excluding precious metal content 52.8% 55.2% 55.1% 55.8%
Selling, general and
administrative expenses 231,493 182,057 643,244 552,474
Restructuring and other costs 26,353 338 33,849 5,261
Operating income 39.802 90,419 235,390 284,711
 % of Net sales 6.4% 16.7% 13.1% 17.2%
 % of Net sales, excluding precious metal content 7.1% 18.3% 14.2% 18.8%
Net interest and other expense 20,826 5,316 29,985 17,775
Income before income taxes 18,976 85,103 205,405 266,936
(Benefit) Provision for income taxes  (40,627) 21,288 1,042 67,585
Equity in net income attributable
to unconsolidated affilated company 1,597 - 1,690 -
Net income 61,200 63,815 206,053 199,351
 % of Net sales 9.9% 11.8% 11.4% 12.1%
 % of Net sales, excluding precious metal content 10.9% 12.9% 12.5% 13.2%
Less: Net income attributable
to the noncontrolling interests 603 162 2,136 1,470
Net income attributable to DENTSPLY International $ 60,597 $ 63,653 $ 203,917 $ 197,881
 % of Net sales 9.8% 11.7% 11.3% 12.0%
 % of Net sales, excluding precious metal content 10.7% 12.9% 12.3% 13.1%
Earnings per common share:
   Basic $ 0.43 $ 0.45 $ 1.44 $ 1.37
   Dilutive $ 0.42 $ 0.44 $ 1.42 $ 1.35
Cash dividends declared per common share $ 0.05 $ 0.05 $ 0.15 $ 0.15
Weighted average common share outstanding:
   Basic 141,349 142,501 141,337 144,670
   Dilutive 143,395 144,063 143,578 146,679

DENTSPLY INTERNATIONAL INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)

September 30, December 31,
2011 2010
Assets
Current Assets:
  Cash and cash equivalents $ 81,866 $ 540,038
  Accounts and notes receivable-trade, net 475,947 344,796
  Inventories, net 391,528 308,738
  Prepaid expenses and other current assets 140,264 121,473
     Total Current Assets 1,089,605 1,315,045
Property, plant and equipment, net 569,853 423,105
Identifiable intangible assets, net 808,038 78,743
Goodwill, net 2,208,906 1,303,055
Other noncurrent assets, net 157,309 138,003
     Total Assets $      4,833,711   $ 3,257,951
Liabilities and Equity
Current liabilities $ 512,689 $ 360,091
Long-term debt 1,793,979 604,015
Deferred income taxes 242,162 72,489
Other noncurrent liabilities 394,467 311,444
     Total Liabilities 2,943,297      1,348,039
Total DENTSPLY International Equity 1,853,692 1,839,386
Noncontrolling interests 36,722 70,526
     Total Equity 1,890,414 1,909,912
     Total Liabilities and Equity $ 4,833,711 $ 3,257,951

DENTSPLY INTERNATIONAL INC.
(In thousands, except per share amounts)

Operating Income Summary:

The following tables present the reconciliation of reported GAAP operating income in total and on a percentage of net sales, excluding precious metal content, to the non-GAAP financial measures.

Three Months Ended September 30, 2011 Percentage
Operating of Net Sales,
Income
(Expense) 		Ex Precious Metal
Content
Income from Operations $   39,802 7.1%
Acquisition Related Activities 35,530 6.3%
Restructuring and Other Costs 14,826 2.6%
Amortization on Purchased
  Intangibles from Acquisitions:
Prior to July 1, 2011 2,136 0.4%
Astra Tech 3,354 0.6%
Orthodontics Business Continuity Costs 1,321 0.2%
Adjusted Non-GAAP Operating Earnings $ 96,969 17.2%
Three Months Ended September 30, 2010 Percentage
Operating of Net Sales,
Income
(Expense) 		Ex Precious Metal
Content
Income from Operations $ 90,419 18.3%
Amortization on Purchased
  Intangibles from Acquisitions 2,218 0.5%
Acquisition Related Activities 1,714 0.3%
Restructuring and Other Costs 338 0.1%
Adjusted Non-GAAP Operating Earnings $ 94,689 19.2%

DENTSPLY INTERNATIONAL INC.
(In thousands, except per share amounts)

Earnings Summary:

The following tables present the reconciliation of reported GAAP net income attributable to DENTSPLY International and on a per share basis to the non-GAAP financial measures.

Three Months Ended September 30, 2011
Income Diluted
(Expense) Per Share
Net Income Attributable to DENTSPLY International $   60,597 $   0.42
Acquisition Related Activities, Net of Tax 36,122 0.25
Restructuring and Other Costs, Net of Tax and 9,530 0.07
  Non-Controlling Interests
Amortization on Purchased
  Intangibles from Acquisitions, Net of Tax:
   Prior to July 1, 2011 1,423 0.01
   Astra Tech 2,415 0.02
Orthodontics Business Continuity Costs, Net of Tax 866 -
Gain on Fair Value Adjustments at an Unconsolidated
  Affiliated Company, Net of Tax  (1,800)  (0.01)
Income Tax-Related Adjustments  (42,950)  (0.30)
Adjusted Non-GAAP Net Income Attributable
  to DENTSPLY International   $ 66,203   $ 0.46
Three Months Ended September 30, 2010
Income Diluted
(Expense) Per Share
Net Income Attributable to DENTSPLY International $   63,653 $   0.44
Amortization on Purchased
  Intangibles from Acquisitions, Net of Tax 1,471 0.01
Acquisition Related Activities, Net of Tax and
  Non-Controlling Interests 1,283 0.01
Restructuring and Other Costs, Net of Tax and
  Non-Controlling Interests 240 -
Income Tax-Related Adjustments  (320) -
Adjusted Non-GAAP Net Income Attributable
  to DENTSPLY International $ 66,327 $ 0.46

DENTSPLY INTERNATIONAL INC.
(In thousands)

Operating Tax Rate Summary:

The following tables present the reconciliation of reported GAAP effective tax rate as a percentage of income before income taxes to the non-GAAP financial measure.

Three Months Ended September 30, 2011
Percentage
Pre-tax
Income		 Income Tax
Benefit (Expense)		 of Pre-tax
Income
As Reported - GAAP Operating Results $   18,976   $   40,627 (214,1)%
Acquisition Related Activities 47,558  (11,436)
Restructuring and Other Costs 14,825  (5,136)
Amortization on Purchased
  Intangibles from Acquisitions:
    Prior to July 1, 2011 2,136  (713)
    Astra Tech 3,354  (939)
Orthodontics Business Continuity Costs 1,322  (456)
Gain on Fair Value Adjustments at an Unconsolidated
  Affiliated Company  (393) 119
Income Tax-Related Adjustments -    (42,950)
As Adjusted - Non-GAAP Operating Results $ 87,778 $  (20,884) 23.8%
Three Months Ended September 30, 2010 Percentage
Pre-tax
Income		 Income Tax
Benefit (Expense)		 of Pre-tax
Income
As Reported - GAAP Operating Results $ 85,103 $  (21,288) 25.0%
Amortization on Purchased
  Intangibles from Acquisitions 2,218  (747)
Acquisition Related Activities 1,714  (431)
Restructuring and Other Costs 338  (102)
Income Tax-Related Adjustments -  (320)
As Adjusted - Non-GAAP Operating Results $   89,373 $  (22,888) 25.6%

DENTSPLY INTERNATIONAL INC.
(In thousands, except per share amounts)

Operating Income Summary:

The following tables present the reconciliation of reported GAAP operating income in total and on a percentage of net sales, excluding precious metal content, to the non-GAAP financial measures.

Nine Months Ended September 30, 2011 Percentage
Operating of Net Sales,
Income
(Expense)		 Ex Precious Metal
Content
Income from Operations $    235,390 14.2%
Acquisition Related Activities 41,521 2.5%
Restructuring and Other Costs 16,330 1.0%
Amortization on Purchased
  Intangibles from Acquisitions:
Prior to July 1, 2011 6,649 0.4%
Astra Tech 3,354 0.2%
Orthodontics Business Continuity Costs 2,041 0.1%
Adjusted Non-GAAP Operating Income $ 305,285 18.4%
Nine Months Ended September 30, 2010 Percentage
Operating of Net Sales,
Income
(Expense)		 Ex Precious Metal
Content
Income from Operations $    284,711 18.8%
Amortization on Purchased
  Intangibles from Acquisitions 6,787 0.5%
Restructuring and Other Costs 5,261 0.4%
Recent Acquisition-Related Activities 2,232 0.1%
Adjusted Non-GAAP Operating Income $ 298,991 19.8%

DENTSPLY INTERNATIONAL INC.
(In thousands, except per share amounts)

Earnings Summary:

The following tables present the reconciliation of reported GAAP net income attributable to DENTSPLY International and on a per share basis to the non-GAAP financial measures.

Nine Months Ended September 30, 2011
Income Diluted
(Expense) Per Share
Net Income Attributable to DENTSPLY International   $    203,917   $    1.42
Acquisition Related Activities, Net of Tax and 42,363 0.30
  Non-Controlling Interests
Restructuring and Other Costs, Net of Tax and 10,403 0.07
  Non-Controlling Interests
Amortization on Purchased
  Intangibles from Acquisitions, Net of Tax:
Prior to July 1, 2011 4,429 0.03
Astra Tech 2,415 0.02
Orthodontics Business Continuity Costs, Net of Tax 1,308 0.01
Gain on Fair Value Adjustments at an Unconsolidated
  Affiliated Company, Net of Tax  (2,059)  (0.01)
Credit Risk Adjustment to Outstanding
  Derivatives, Net of Tax  (783)  (0.01)
Income Tax-Related Adjustments  (43,733)  (0.31)
Adjusted Non-GAAP Net Income Attributable
  to DENTSPLY International $ 218,260 $ 1.52
Nine Months Ended September 30, 2010
Income Diluted
(Expense) Per Share
Net Income Attributable to DENTSPLY International $ 197,881 $ 1.35
Amortization on Purchased
  Intangibles from Acquisitions, Net of Tax 4,491 0.03
Restructuring and Other Costs, Net of Tax and
  Non-Controlling Interests 3,250 0.02
Recent Acquisition-Related Activities, Net of Tax and
  Non-Controlling Interests 1,670 0.01
Credit Risk Adjustment to Outstanding
  Derivatives, Net of Tax 732 0.01
Income Tax-Related Adjustments 670 -
Adjusted Non-GAAP Net Income Attributable
  to DENTSPLY International $ 208,694 $ 1.42

DENTSPLY INTERNATIONAL INC.
(In thousands)

Operating Tax Rate Summary:

The following tables present the reconciliation of reported GAAP effective tax rate as a percentage of income before income taxes to the non-GAAP financial measure.

Nine Months Ended September 30, 2011
Pre-tax
Income		 Income Tax
Benefit (Expense)		 Percentage
of Pre-tax
As Reported - GAAP Operating Results   $ 205,405   $  (1,042) 0.5%
Acquisition Related Activities 53,947  (11,971)
Restructuring and Other Costs 16,331  (5,769)
Amortization on Purchased
  Intangibles from Acquisitions
      Prior to July 1, 2011 6,649  (2,220)
      Astra Tech 3,354  (939)
Orthodontics Business Continuity Costs 2,041  (733)
Gain on Fair Value Adjustments at an
 Unconsolidated Affiliate Company  (392) 119
Credit Risk Adjustment to Outstanding Derivatives  (1,275) 492
Income Tax-Related Adjustments -     (43,733)
As Adjusted - Non-GAAP Operating Results $    286,060 $  (65,796) 23.0%
Nine Months Ended September 30, 2010
Pre-tax
Income		 Income Tax
Benefit (Expense)		 Percentage
of Pre-tax
As Reported - GAAP Operating Results $ 266,936 $  (67,585) 25.3%
Amortization on Purchased
  Intangibles from Acquisitions 6,786  (2,295)
Restructuring and Other Costs 5,261  (1,905)
Recent Acquisition-Related Activities 2,232  (562)
Credit Risk Adjustment to Outstanding Derivatives 1,192  (460)
Income Tax-Related Adjustments - 670
As Adjusted - Non-GAAP Operating Results $ 282,407 $  (72,137) 25.5%

For further information contact:

Derek Leckow
Vice President
Investor Relations
(717) 849-7863

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