DENTSPLY International Inc. Reports Record 2008 First Quarter Sales and Earnings
Earnings Per Diluted Share Increase 18.4%
YORK, Pa., April 30, 2008 (GLOBE NEWSWIRE) -- DENTSPLY International Inc. (Nasdaq:XRAY) today announced record sales and earnings for the three months ended March 31, 2008. Net sales in the first quarter of 2008 increased 18.6% to $560.8 million compared to $472.9 million reported for the first quarter of 2007. Net sales, without precious metal content, were $496.2 million, a 17.2% increase compared to 2007. Net sales, in the first quarter of 2008, were positively affected by strong internal growth, acquisitions, and from the strength of international currencies against the U.S. dollar.
Net income for the first quarter of 2008 was $68.2 million, or $0.45 per diluted share, an increase of 18.4% compared to $0.38 per diluted share in the first quarter of 2007. No meaningful adjustments on a non-GAAP basis occurred in either quarterly period. 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 report a strong start to 2008, reflecting the benefits of both our broad product portfolio and geographic platform, as well as continued execution against our strategic initiatives. The long-term prospects for growth, in the global dental market, remain attractive and we are accelerating investment in several areas, despite softer economic conditions in the United States. Our first quarter sales and earnings performance provide us with increased confidence in our full year 2008 guidance of 5.5%-6.5% internal growth and earnings per diluted share of $1.83 to $1.88."
ADDITIONAL INFORMATION
A conference call has been scheduled for Thursday, May 1, 2008 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 8546355. If you would like to participate in this call, dial (800) 239-9838 (for domestic calls), and (913) 312-0392 (for international calls). An on-line rebroadcast, as well as a transcript of the call, will be available to the public following the call at the DENTSPLY website: www.dentsply.com. A replay will be available for one week following the conference call at (888) 203-1112 (for domestic calls) and (719) 457-0820 (for international calls), Pass-code # 8546355.
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.primenewswire.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 may be useful to investors for comparison purposes because the Company has historically provided similar information. 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,
2008 2007
--------- ---------
NET SALES $ 560,782 $ 472,864
NET SALES - Ex Precious Metals Content 496,248 423,266
COST OF PRODUCTS SOLD 275,539 226,586
GROSS PROFIT 285,243 246,278
% OF NET SALES 50.9% 52.1%
% OF NET SALES - Ex Precious Metals Content 57.5% 58.2%
SELLING, GENERAL & ADMINISTRATIVE EXPENSES 184,002 164,077
RESTRUCTURING AND OTHER OPERATING (INCOME) COSTS 204 990
--------- ---------
INCOME FROM OPERATIONS 101,037 81,211
% OF NET SALES 18.0% 17.2%
% OF NET SALES - Ex Precious Metals Content 20.4% 19.2%
NET INTEREST AND OTHER NON OPERATING (INCOME)
EXPENSE 6,139 (2,255)
--------- ---------
PRE-TAX INCOME 94,898 83,466
INCOME TAXES 26,718 24,994
--------- ---------
NET INCOME $ 68,180 $ 58,472
% OF NET SALES 12.2% 12.4%
% OF NET SALES - Ex Precious Metals Contents 13.7% 13.8%
EARNINGS PER SHARE
-BASIC $ 0.45 $ 0.38
-DILUTIVE $ 0.45 $ 0.38
DIVIDENDS PER SHARE $ 0.045 $ 0.040
WEIGHTED AVERAGE NUMBER OF COMMON SHARES
OUTSTANDING
-BASIC 149,945 152,031
-DILUTIVE 152,983 154,564
DENTSPLY INTERNATIONAL INC.
CONDENSED BALANCE SHEETS
(IN THOUSANDS)
March 31, DECEMBER 31,
2008 2007
----------- -----------
ASSETS
CURRENT ASSETS:
CASH AND CASH EQUIVALENTS $ 90,660 $ 169,384
SHORT TERM INVESTMENTS 254,003 146,939
ACCOUNTS AND NOTES RECEIVABLE-TRADE, NET 356,629 307,622
INVENTORIES, NET 280,932 258,032
OTHER CURRENT ASSETS 111,107 100,045
----------- -----------
TOTAL CURRENT ASSETS 1,093,331 982,022
PROPERTY,PLANT AND EQUIPMENT, NET 402,009 371,409
IDENTIFIABLE INTANGIBLE ASSETS, NET 76,695 76,167
GOODWILL, NET 1,181,197 1,127,420
OTHER NONCURRENT ASSETS, NET 161,773 118,551
----------- -----------
TOTAL ASSETS $ 2,915,005 $ 2,675,569
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY:
CURRENT LIABILITIES $ 297,040 $ 312,411
LONG-TERM DEBT 586,811 482,063
OTHER LIABILITIES 442,909 304,146
DEFERRED INCOME TAXES 68,000 60,547
----------- -----------
TOTAL LIABILITIES 1,394,760 1,159,167
MINORITY INTEREST IN CONSOLIDATED
SUBSIDIARIES 304 296
STOCKHOLDERS' EQUITY 1,519,941 1,516,106
----------- -----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 2,915,005 $ 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 metals content basis to the non-GAAP financial measures.
Three Months Ended March 31, 2008 Percentage
Operating of Net Sales,
Income Ex Precious
(Expense) Metals Content
-------------- --------------
Income from Operations $ 101,037 20.4%
Restructuring Costs 204 0.0%
-------------- --------------
Adjusted Non-GAAP Operating Earnings $ 101,241 20.4%
============== ==============
Three Months Ended March 31, 2007 Percentage
Operating of Net Sales,
Income Ex Precious
(Expense) Metals Content
-------------- --------------
Income from Operations $ 81,211 19.2%
Restructuring Costs 990 0.2%
-------------- --------------
Adjusted Non-GAAP Operating Earnings $ 82,201 19.4%
============== ==============
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, 2008
Income Diluted
(Expense) Per Share
--------- ---------
Net Income $ 68,180 $ 0.45
Restructuring Costs, Net of Tax 129 0.00
Income Tax Related Adjustments 637 0.00
--------- ---------
Adjusted Non-GAAP Earnings $ 68,946 $ 0.45
========= =========
Three Months Ended March 31, 2007
Income Diluted
(Expense) Per Share
--------- ---------
Net Income $ 58,472 $ 0.38
Restructuring Costs, Net of Tax 656 0.00
Income Tax Related Adjustments (232) (0.00)
--------- ---------
Adjusted Non-GAAP Earnings $ 58,896 $ 0.38
========= =========
CONTACT: DENTSPLY International Inc.
William R. Jellison, Senior Vice President and Chief
Financial Officer
(717) 849-4243