DENTSPLY International Inc. Reports 2009 First Quarter Results
YORK, Pa., April 30, 2009 (GLOBE NEWSWIRE) -- DENTSPLY International Inc. (Nasdaq:XRAY) today announced sales and earnings for the three months ended March 31, 2009. Net sales in the first quarter of 2009 decreased 9.6% to $506.9 million compared to $560.8 million reported for the first quarter of 2008. Net sales, excluding precious metal content, were $465.7 million, a 6.2% decrease compared to 2008. The change in net sales, excluding precious metal content, was driven by currency translation, which reduced sales by 6.9%, offset by 0.7% growth on a constant currency basis which includes acquisitions.
DENTSPLY's net income for the first quarter of 2009 was $61.7 million, or $0.41 per diluted share, compared to $0.45 per diluted share in the first quarter of 2008. Net income in the first quarter of 2009 included the net of tax impact of restructuring, impairment and other costs of $1.0 million, a $1.1 million net of tax impact for recent acquisition-related activities and a net charge for income tax-related adjustments of $0.3 million. These items, in aggregate, reduced earnings on a net basis by $0.02 per diluted share in the first quarter of 2009. The first quarter of 2008 included the net of tax impact of restructuring costs of $0.1 million and a net charge to income tax expense of $0.6 million, which in the aggregate, reduced earnings per diluted share by less than $0.01. For a reconciliation of the non-GAAP measure to earnings per share calculated according to GAAP, see the attached table.
Bret Wise, Chairman and Chief Executive Officer, stated, "We are pleased to be able to deliver what we believe are solid results in a slowing global economy and dental market. In this environment, we are striking a balance between cost containment and continuing investment in technologies and marketing that will position us for growth in coming years. We achieved sales growth, excluding precious metal content, on a constant currency basis in the first quarter and solid profitability, despite the significant headwind from the economy. Our global diversification, depth of product lines and the strength of our balance sheet provide a solid foundation to further build upon our market position throughout economic cycles. Given current global economic conditions, we are slightly modifying our full year 2009 earnings per diluted share guidance to $1.80 to $1.90 on a non-GAAP basis, excluding restructuring and other costs, recent acquisition-related activities and income tax-related adjustments."
ADDITIONAL INFORMATION
A conference call has been scheduled for Friday, May 1, 2009 at 8:30 AM Eastern Time. A live broadcast is available through Shareholder.com by accessing DENTSPLY's website at www.dentsply.com. In order to participate in the call, dial (877) 874-1568 (for domestic calls) and (719) 325-4812 (for international calls). The Conference ID # is 7529411. At that time, you will be able to discuss the first 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 rebroadcast of the conference call will be available to the public on-line 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), Passcode # 7529411.
DENTSPLY designs, develops, manufactures and markets a broad range of products for the dental market. The Company believes that it is the world's leading manufacturer and distributor of dental prosthetics, precious metal dental alloys, dental ceramics, endodontic instruments and materials, prophylaxis paste, dental sealants, ultrasonic scalers, and crown and bridge materials; the leading United States manufacturer and distributor of dental handpieces, dental x-ray film holders, film mounts and bone substitute/grafting materials; and a leading worldwide manufacturer or distributor of dental implants, impression materials, orthodontic appliances, dental cutting instruments, infection control products, and dental injectable anesthetics. The Company distributes its dental products in over 120 countries under some of the most well-established brand names in the industry.
DENTSPLY is committed to the development of innovative, high quality, cost-effective new products for the dental market.
The DENTSPLY International Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4306
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, and changes in the general economic environment that could affect our 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 Annual Report on 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 and adjusted earnings per diluted share. These adjusted amounts consist of GAAP amounts excluding (1) restructuring and other costs, (2) acquisition-related charges and (3) income tax-related adjustments. Adjusted earnings per diluted share is calculated by dividing adjusted net income by diluted weighted-average shares outstanding. The Company also provided an operational tax rate, which is the Company's effective tax rate, a GAAP measure, adjusted for certain one-time charges. Adjusted operating income, adjusted net income, 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 other companies.
The Company believes that the presentation of adjusted operating income, adjusted net income, 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 INCOME
(IN THOUSANDS EXCEPT PER SHARE DATA)
THREE MONTHS ENDED
MARCH 31,
------------------
2009 2008
-------- --------
NET SALES $506,949 $560,782
NET SALES - Ex Precious Metal Content 465,650 496,248
COST OF PRODUCTS SOLD 239,980 275,539
-------- --------
GROSS PROFIT 266,969 285,243
% OF NET SALES 52.7% 50.9%
% OF NET SALES - Ex Precious Metal Content 57.3% 57.5%
SELLING, GENERAL &
ADMINISTRATIVE EXPENSES 179,228 184,002
RESTRUCTURING, IMPAIRMENT AND OTHER COSTS 1,570 204
-------- --------
INCOME FROM OPERATIONS 86,171 101,037
% OF NET SALES 17.0% 18.0%
% OF NET SALES - Ex Precious Metal Content 18.5% 20.4%
NET INTEREST AND OTHER NON OPERATING EXPENSE 5,110 6,164
-------- --------
PRE-TAX INCOME 81,061 94,873
INCOME TAXES 21,131 26,718
-------- --------
NET INCOME $ 59,930 $ 68,155
% OF NET SALES 11.8% 12.2%
% OF NET SALES - Ex Precious Metal Content 12.9% 13.7%
LESS: NET INCOME (LOSS) ATTRIBUTABLE
TO THE NON-CONTROLLING INTERESTS (1,813) (25)
-------- --------
-------- --------
NET INCOME ATTRIBUTABLE TO DENTSPLY INTERNATIONAL $ 61,743 $ 68,180
======== ========
% OF NET SALES 12.2% 12.2%
% OF NET SALES - Ex Precious Metal Content 13.3% 13.7%
EARNINGS PER SHARE
-BASIC $ 0.42 $ 0.45
-DILUTIVE $ 0.41 $ 0.45
DIVIDENDS PER SHARE $ 0.050 $ 0.045
WEIGHTED AVERAGE NUMBER OF COMMON SHARES
OUTSTANDING
-BASIC 148,514 149,945
-DILUTIVE 149,705 152,983
DENTSPLY INTERNATIONAL INC.
CONDENSED BALANCE SHEETS
(IN THOUSANDS)
MARCH 31, DECEMBER 31,
2009 2008
----------- -----------
ASSETS
CURRENT ASSETS:
CASH AND CASH EQUIVALENTS $ 226,299 $ 203,991
SHORT TERM INVESTMENTS 187 258
ACCOUNTS AND NOTES RECEIVABLE-TRADE, NET 327,514 319,260
INVENTORIES, NET 314,089 306,125
OTHER CURRENT ASSETS 116,800 120,228
----------- -----------
TOTAL CURRENT ASSETS 984,889 949,862
PROPERTY, PLANT AND EQUIPMENT, NET 416,393 432,276
IDENTIFIABLE INTANGIBLE ASSETS, NET 124,958 103,718
GOODWILL, NET 1,206,008 1,277,026
OTHER NONCURRENT ASSETS, NET 28,541 67,518
----------- -----------
TOTAL ASSETS $ 2,760,789 $ 2,830,400
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY:
CURRENT LIABILITIES $ 343,707 $ 359,962
LONG-TERM DEBT 460,842 423,679
DEFERRED INCOME TAXES 59,031 69,049
OTHER LIABILITIES 217,612 318,297
----------- -----------
TOTAL LIABILITIES 1,081,192 1,170,987
STOCKHOLDERS' EQUITY 1,614,146 1,587,722
NON-CONTROLLING INTERESTS 65,451 71,691
----------- -----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 2,760,789 $ 2,830,400
=========== ===========
DENTSPLY INTERNATIONAL INC.
(IN THOUSANDS EXCEPT PER SHARE DATA)
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 basis to the non-GAAP financial
measures.
Three Months Ended March 31, 2009 Percentage
of Net Sales,
Operating Ex Precious
Income (Expense) Metal Content
--------------- --------------
Income from Operations $ 86,171 18.5%
Restructuring, Impairment and
Other Costs 1,570 0.3%
Recent Acquisition-Related Activities 2,604 0.6%
--------------- --------------
Adjusted Non-GAAP Operating Earnings $ 90,345 19.4%
=============== ==============
Three Months Ended March 31, 2008 Percentage
of Net Sales,
Operating Ex Precious
Income (Expense) Metal Content
--------------- --------------
Income from Operations $101,037 20.4%
Restructuring, Impairment
and Other Costs 204 0.0%
--------------- --------------
Adjusted Non-GAAP Operating Earnings $101,241 20.4%
=============== ==============
DENTSPLY INTERNATIONAL INC.
(IN THOUSANDS EXCEPT PER SHARE DATA)
Earnings Summary:
The following tables present the reconciliation of reported GAAP net
income in total and on a per share basis to the non-GAAP financial
measures.
Three Months Ended March 31, 2009
Income Diluted
(Expense) Per Share
--------- ---------
Net Income Attributable to DENTSPLY
International $ 61,743 $ 0.41
Restructuring, Impairment and Other Costs, Net
of Tax and Non-Controlling Interests 996 0.01
Recent Acquisition-Related Activities, Net of
Tax and Non-Controlling Interests 1,119 0.01
Income Tax-Related Adjustments 282 0.00
--------- ---------
Adjusted Non-GAAP Earnings $ 64,140 $ 0.43
========= =========
Three Months Ended March 31, 2008
Income Diluted
(Expense) Per Share
--------- ---------
Net Income Attributable to DENTSPLY
International $ 68,180 $ 0.45
Restructuring, Impairment and Other Costs, Net
of Tax and Non-Controlling Interests 129 0.00
Income Tax-Related Adjustments 637 0.00
--------- ---------
Adjusted Non-GAAP Earnings $ 68,946 $ 0.45
========= =========
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 pre-tax income to the non-GAAP
financial measure.
Three Months Ended March 31, 2009
Percentage
Pre-tax Income of Pre-tax
Income Taxes Income
---------- ---------- ----------
As Reported - GAAP Operating
Results $ 81,061 $ (21,131) 26.1%
Restructuring, Impairment and
Other Costs 1,570 (574)
Recent Acquisition-Related
Activities 2,604 (739)
Income Tax-Related Adjustments 282
---------- ---------- ----------
As Adjusted - Non-GAAP Operating
Results $ 85,235 $ (22,162) 26.0%
Three Months Ended March 31, 2008
Percentage
Pre-tax Income of Pre-tax
Income Taxes Income
---------- ---------- ----------
As Reported - GAAP Operating
Results $ 94,873 $ (26,718) 28.2%
Restructuring, Impairment and
Other Costs 204 (75)
Income Tax-Related Adjustments 637
---------- ---------- ----------
As Adjusted - Non-GAAP Operating
Results $ 95,077 $ (26,156) 27.5%
CONTACT: DENTSPLY International Inc.
William R. Jellison, Senior Vice President and Chief
Financial Officer
(717) 849-4243