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February 4, 2009 at 12:20 PM EST

DENTSPLY International Inc. Reports Full Year And Fourth Quarter Results

YORK, Pa., Feb. 4, 2009 (GLOBE NEWSWIRE) -- DENTSPLY International Inc. (Nasdaq:XRAY) today announced sales and earnings for the three months and year ended December 31, 2008.

FINANCIAL RESULTS

Year Ended December 31, 2008

Net sales for the full 2008 year increased 9.1% to $2,193.7 million compared to $2,009.8 million in 2007. Sales, excluding precious metals, increased 9.6% for the year. The increase in sales for the year primarily resulted from strong growth in the specialty product areas of endodontics, implants and orthodontics. Acquisitions and favorable foreign exchange impacts also benefited sales growth for the full year.

Net income for 2008 was $283.9 million, or $1.87 per diluted share, compared to $259.7 million or $1.68 per diluted share in 2007. This represents an 11.3% increase in diluted earnings per share. Net income for the full-year of 2008 included charges, net of tax, for restructuring and other related items of $19.8 million, or ($0.13) per diluted share. Net Income also included a net reduction to income tax expense of $17.1 million, $0.11 per diluted share, related to the resolution of certain tax matters and a $1.1 million or $0.01 per diluted share, interest benefit, net of tax from the adoption of Statement of Financial Accounting No. 157 (SFAS 157). The net income in 2007 included charges, net of tax, for restructuring and other related items of $6.7 million, ($0.04) per diluted share, and a net reduction of income tax expense of $9.9 million, $0.06 per diluted share, related to the resolution of certain tax matters.

For comparability analysis, net income, excluding restructuring and other related items, tax adjustments and the benefits of the adoption of SFAS 157 for the years ending 2008 and 2007 (a non-GAAP measure), was $285.5 million or $1.88 per diluted share for 2008, compared to $256.4 million or $1.66 per diluted share in 2007, an increase of 13.3% in diluted earnings per share. A reconciliation of this non-GAAP measure to earnings per share on a GAAP basis is provided in the following table.

Three Months Ended December 31, 2008

Net sales in the fourth quarter of 2008 decreased 6.2% to $508.1 million compared to $541.5 million reported in the fourth quarter of 2007. Net sales, excluding precious metal content, decreased 4.5% in the fourth quarter of 2008. The lower sales levels were impacted by the significant strengthening of the U.S. dollar during the quarter, which reduced sales by 4.5%, as well as slowing of dental demand in certain regions as underlying economic activity declined. Sales of specialty products in the aggregate continued to experience positive growth in the quarter, however slowed from double-digit sales growth earlier in the year.

Net income for the fourth quarter of 2008 was $71.0 million, or $0.47 per diluted share, compared to net income of $70.0 million, or $0.45 per diluted share, in the fourth quarter of 2007. Net income in the fourth quarter of 2008 includes charges, net of tax, for restructuring and other related items of $7.3 million, or ($0.05) per diluted share. The fourth quarter of 2008 also includes a net reduction to income tax expense of $10.5 million, $0.07 per diluted share, from the resolution of certain tax matters. The fourth quarter of 2007 included charges, net of tax, for restructuring and other related items of $1.0 million, ($0.01) per diluted share, and a net reduction of income tax expense of $2.5 million, $0.02 per diluted share, related to the resolution of certain tax matters.

On an adjusted basis, earnings, excluding restructuring and other related items and tax adjustments, which constitutes a non-GAAP measure, were $67.8 million or $0.45 per diluted share in the fourth quarter of 2008, compared to $68.5 million or $0.44 per diluted share in the fourth quarter of 2007, an increase of 2.3% in earnings per diluted share. For a reconciliation of this non-GAAP measure to earnings per share on a GAAP basis, see the following table.

2008 Results & 2009 Outlook

Bret Wise, Chairman and Chief Executive Officer, commented, "We are pleased to have delivered strong growth in both sales and earnings in 2008, despite the challenges presented by the world economy in the fourth quarter. DENTSPLY is well positioned, with continued strong cash flows and a favorable liquidity position, to prosper throughout economic cycles. We continue to focus on investing in growth opportunities in the global dental market while managing our cost structure to ensure flexibility in our operating model as we move into 2009. As a result, we expect that earnings per diluted share will range from $1.85 to $1.95 for the full year 2009."

Guidance for 2009 excludes restructuring and other costs, the reversal of the inventory step-up from our recent acquisitions and income tax related adjustments.

ADDITIONAL INFORMATION

A conference call has been scheduled for Thursday, February 5, 2009 at 8:30 AM Eastern Time. A live broadcast is available through Shareholder.com by accessing DENTSPLY's website at www.dentsply.com. The Conference ID # is 1666438. If you would like to participate in this call, dial (877) 795-3646 (for domestic calls), and (719) 325-4798 (for international calls). An on-line rebroadcast will be available to the public following the call at the DENTSPLY website: www.dentsply.com. A replay will also be available for one week following the conference call at (888) 203-1112 (for domestic calls) and (719) 457-0820 (for international calls), Passcode # 1666438.

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

DENTSPLY believes that the non-GAAP financial information provided in this release and on the earnings conference call, may be useful to investors for comparison purposes because the Company has historically provided similar information. For an additional description of non-GAAP financial information, please refer to the Company's Annual Report on Form 10-K and its subsequent periodic reports on Forms 10Q filed with the Securities and Exchange Commission. 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     TWELVE MONTHS ENDED
                            DECEMBER 31,            DECEMBER 31,
                       ----------------------------------------------

                          2008        2007        2008        2007
                       ----------  ----------  ----------  ----------

 NET SALES             $  508,141  $  541,504  $2,193,723  $2,009,833
 NET SALES - Ex
  Precious Metal
  Content                 467,194     489,193   1,993,800   1,819,899

 COST OF PRODUCTS SOLD    237,109     268,773   1,041,779     969,050
                       ----------  ----------  ----------  ----------

 GROSS PROFIT             271,032     272,731   1,151,944   1,040,783
  % OF NET SALES             53.3%       50.4%       52.5%       51.8%
  % OF NET SALES - Ex
   Precious Metal
   Content                   58.0%       55.8%       57.8%       57.2%

 SELLING, GENERAL &
 ADMINISTRATIVE
  EXPENSES                173,569     173,496     739,168     675,365

 RESTRUCTURING AND
  OTHER COSTS              12,153       1,638      32,355      10,527
                       ----------  ----------  ----------  ----------

 INCOME FROM OPERATIONS    85,310      97,597     380,421     354,891
  % OF NET SALES             16.8%       18.0%       17.3%       17.7%
  % OF NET SALES - Ex
   Precious Metal
   Content                   18.3%       20.0%       19.1%       19.5%

 NET INTEREST AND OTHER
  NON OPERATING EXPENSE
  (INCOME)                  9,932         399      24,949      (3,244)
                       ----------  ----------  ----------  ----------

 PRE-TAX INCOME            75,378      97,198     355,472     358,135

 INCOME TAXES               4,383      27,168      71,603      98,481
                       ----------  ----------  ----------  ----------

 NET INCOME            $   70,995  $   70,030  $  283,869  $  259,654
  % OF NET SALES             14.0%       12.9%       12.9%       12.9%
  % OF NET SALES - Ex
   Precious Metal
   Content                   15.2%       14.3%       14.2%       14.3%

 EARNINGS PER SHARE
    -BASIC             $     0.48  $     0.46  $     1.90  $     1.71
    -DILUTIVE          $     0.47  $     0.45  $     1.87  $     1.68

 DIVIDENDS PER SHARE   $    0.050  $    0.045  $    0.185  $    0.165


 WEIGHTED AVERAGE
  NUMBER OF COMMON
  SHARES OUTSTANDING
    -BASIC                148,720     151,173     149,069     151,707
    -DILUTIVE             150,234     154,538     151,679     154,721


                    DENTSPLY INTERNATIONAL INC.
                     CONDENSED BALANCE SHEETS
                         (IN THOUSANDS)

                                              DECEMBER 31, DECEMBER 31,
                                                 2008         2007
                                              ----------   ----------
 ASSETS

 CURRENT ASSETS:


  CASH AND CASH EQUIVALENTS                   $  203,991   $  169,384
  SHORT TERM INVESTMENTS                             258      146,939
  ACCOUNTS AND NOTES RECEIVABLE-TRADE, NET       319,260      307,622
  INVENTORIES, NET                               306,125      258,032
  OTHER CURRENT ASSETS                           120,228      100,045
                                              ----------   ----------
   TOTAL CURRENT ASSETS                          949,862      982,022

 PROPERTY,PLANT AND EQUIPMENT, NET               432,276      371,409
 IDENTIFIABLE INTANGIBLE ASSETS, NET             103,718       76,167
 GOODWILL, NET                                 1,277,026    1,127,420
 OTHER NONCURRENT ASSETS, NET                     67,518      118,551
                                              ----------   ----------

 TOTAL ASSETS                                 $2,830,400   $2,675,569
                                              ==========   ==========

 LIABILITIES AND STOCKHOLDERS' EQUITY:

 CURRENT LIABILITIES                          $  359,962   $  312,411
 LONG-TERM DEBT                                  423,679      482,063
 OTHER LIABILITIES                               318,297      304,146
 DEFERRED INCOME TAXES                            69,049       60,547
                                              ----------   ----------
     TOTAL LIABILITIES                         1,170,987    1,159,167

 MINORITY INTEREST IN CONSOLIDATED
  SUBSIDIARIES                                    71,691          296
 STOCKHOLDERS' EQUITY                          1,587,722    1,516,106
                                              ----------   ----------

 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY   $2,830,400   $2,675,569
                                              ==========   ==========

                   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.

                                                        Percentage
 Three Months Ended December 31, 2008                  of Net Sales,
                                      Operating         Ex Precious
                                   Income (Expense)    Metal Content
                                   ----------------  ----------------

 Income from Operations            $         85,310             18.3%

 Restructuring and Other Costs                9,867              2.1%

 In-process Research & Development            2,286              0.5%
                                   ----------------  ----------------

 Adjusted Non-GAAP Operating
  Earnings                         $         97,463             20.9%
                                   ================  ================

 Three Months Ended December 31, 2007
                                                        Percentage
                                                       of Net Sales,
                                      Operating         Ex Precious
                                   Income (Expense)    Metal Content
                                   ----------------  ----------------

 Income from Operations            $         97,597             20.0%

 Restructuring and Other Costs                1,638              0.3%
                                   ----------------  ----------------

 Adjusted Non-GAAP Operating
  Earnings                         $         99,235             20.3%
                                   ================  ================

                    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 December 31, 2008                    
                                              Income      Diluted
                                             (Expense)   Per Share
                                             ---------   ---------
 Net Income                                  $  70,995   $    0.47

 Restructuring and Other Costs, Net of Tax       6,344        0.04

 In-process Research & Development from
  acquisitions, Net of Tax                         994        0.01

 Income Tax Related Adjustments                (10,541)      (0.07)
                                             ---------   ---------

 Adjusted Non-GAAP Earnings                  $  67,792   $    0.45
                                             =========   =========

                                     
                                                                     
 Three Months Ended December 31, 2007                                
                                              Income      Diluted
                                             (Expense)   Per Share
                                             ---------   ---------   
 Net Income                                  $  70,030   $    0.45
                                                                     
 Restructuring and Other Costs, Net of Tax         965        0.01
                                                                     
 Income Tax Related Adjustments                 (2,493)      (0.02)
                                             ---------   ---------
                                                                     
 Adjusted Non-GAAP Earnings                  $  68,502   $    0.44
                                             =========   =========

                        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 December 31, 2008   
                                                            Percentage
                                                               of
                                   Pre-tax      Income       Pre-tax
                                   Income        Taxes        Income
                                  ---------    ---------    ---------
 As Reported - GAAP Operating
  Results                         $  75,378    $  (4,383)       5.8%

 Restructuring and Other Costs        9,868       (3,524)

 In-process Research & Development    1,623         (629)

 Income Tax Related Adjustments                  (10,541)
                                  ---------    ---------    ---------
 As Adjusted - Non-GAAP Operating
  Results                         $ 86,869     $ (19,077)       22.0%

 
 Three Months Ended December 31, 2007
                                                            Percentage
                                                               of
                                   Pre-tax      Income       Pre-tax
                                   Income        Taxes        Income
                                  ---------    ---------    ---------

 As Reported - GAAP Operating 
  Results                         $  97,198    $ (27,168)       28.0%
                                                  
 Restructuring and Other Costs        1,638         (673)
                                                   
 Income Tax Related Adjustments                   (2,493)       
                                  ---------    ---------    ---------
 As Adjusted - Non-GAAP Operating 
  Results                         $  98,836    $ (30,334)       30.7%

                        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.

 Twelve Months Ended December 31, 2008                  Percentage
                                                       of Net Sales,
                                      Operating         Ex Precious
                                   Income (Expense)    Metal Content
                                   ----------------  ----------------

 Income from Operations            $        380,421             19.1%

 Restructuring and Other Costs               30,069              1.5%

 In-process Research & Development            2,286              0.1%
                                   ----------------  ----------------
 Adjusted Non-GAAP Operating 
  Earnings                         $        412,776             20.7%
                                   ================  ================

 Twelve Months Ended December 31, 2007                  Percentage
                                                       of Net Sales,
                                      Operating         Ex Precious
                                   Income (Expense)    Metal Content
                                   ----------------  ----------------

 Income from Operations            $        354,891             19.5%

 Restructuring and Other Costs               10,527              0.6%
                                   ----------------  ----------------
 Adjusted Non-GAAP Operating 
  Earnings                         $        365,418             20.1%
                                   ================  ================

                            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.

 Twelve Months Ended December 31, 2008
                                                Income      Diluted
                                               (Expense)   Per Share
                                               ---------   ---------

 Net Income                                    $ 283,869   $    1.87

 Provisions of SFAS 157, Net of Tax               (1,129)      (0.01)

 Restructuring and Other Costs, Net of Tax        18,775        0.12

 In-process Research & Development from 
  acquisitions, Net of Tax                           994        0.01

 Income Tax Related Adjustments                  (17,055)      (0.11)
                                               ---------   ---------

 Adjusted Non-GAAP Earnings                    $ 285,454   $    1.88
                                               =========   =========

 Twelve Months Ended December 31, 2007
                                                Income      Diluted
                                               (Expense)   Per Share
                                               ---------   ---------
 Net Income                                    $ 259,655   $    1.68

 Restructuring and Other Costs, Net of Tax         6,675        0.04

 Income Tax Related Adjustments                   (9,893)      (0.06)

 Adjusted Non-GAAP Earnings                    $ 256,437   $    1.66
                                               =========   =========

                      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 operational tax rate.

 Twelve Months Ended December 31,
  2008
                                                           Percentage
                                                               of
                                   Pre-tax      Income       Pre-tax
                                   Income        Taxes        Income
                                  ---------    ---------    ---------
 As Reported - GAAP Operating
  Results                         $ 355,472    $ (71,603)       20.1%

 Provisions of SFAS 157, Net of
  Tax                                (1,839)         710

 Restructuring and Other Costs       30,069      (11,294)


 In-process Research &
  Development                         1,623         (629)

 Income Tax Related Adjustments                  (17,055)
                                  ---------    ---------    ---------

 As Adjusted - Non-GAAP Operating
  Results                         $ 385,325    $ (99,871)       25.9%

 Twelve Months Ended December 31,
  2007                                                     Percentage
                                                               of
                                   Pre-tax      Income       Pre-tax
                                   Income        Taxes        Income
                                  ---------    ---------    ---------

 As Reported - GAAP Operating
  Results                         $ 358,136    $ (98,481)       27.5%

 Restructuring and Other Costs       10,527       (3,852)

 Income Tax Related Adjustments                   (9,893)
                                  ---------    ---------    ---------

 As Adjusted - Non-GAAP Operating
  Results                         $ 368,663    $(112,226)       30.4%
CONTACT:  DENTSPLY International Inc. 
          William R. Jellison, Senior Vice President and Chief 
           Financial Officer
          (717) 849-4243
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