DENTSPLY International Inc. Reports Record Second Quarter 2008 Sales and Earnings
* Diluted EPS Increased by 23.8%
* Full Year Diluted EPS Guidance Increased
YORK, Pa., July 29, 2008 (GLOBE NEWSWIRE) -- DENTSPLY International Inc. (Nasdaq:XRAY) today announced record sales and earnings for the three months ended June 30, 2008.
FINANCIAL RESULTS
Three Months Ended June 30, 2008
Net sales in the second quarter of 2008 increased 17.2% to $594.8 million compared to $507.4 million reported for the second quarter of 2007. Net sales, without precious metal content, increased 17.3% to $542.3 million in the second quarter of 2008, compared to $462.1 million in 2007, reflecting strong growth in international markets, the strength of international currencies and the benefit of acquisitions completed in 2007. Each of our four business segments experienced double digit total sales growth in the quarter.
Net income for the second quarter of 2008 was $78.6 million, or $0.52 per diluted share, an increase of 23.8% compared to $0.42 per diluted share in the second quarter of 2007. Net income in the second quarter of 2008 included a net of tax interest benefit resulting from the provisions of SFAS 157 "Fair Value Measurements" of $1.1 million, the net of tax impact of restructuring and other costs of $0.9 million, and a net charge for income tax-related adjustments of $1.0 million, which in aggregate reduced earnings per share on a net basis by less than $.01 per diluted share. The second quarter of 2007 included the net of tax impact of restructuring costs of $2.0 million and a net charge to income tax expense of $0.6 million, which in the aggregate reduced earnings per diluted share by $.02.
Net income on a non-GAAP basis, (excluding an interest benefit from the provisions of SFAS 157, restructuring and other costs, and income tax-related adjustments), was $79.4 million or $0.52 per diluted share in the second quarter of 2008 compared to $68.0 million or $0.44 per diluted share in the second quarter of 2007. This represents an 18.2% increase in earnings per diluted share on an adjusted non-GAAP basis. For a reconciliation of GAAP and non-GAAP measures, see the attached table.
2008 Second Quarter Results & 2008 Full Year Outlook
Bret Wise, Chairman and Chief Executive Officer, stated, "We are pleased that the strength of our diversified dental consumable portfolio and our broad global platform have once again allowed us to deliver record sales and earnings performance. Our businesses are growing rapidly in many international markets allowing us to make expanded investments in research and development, as well as in sales force expansion in markets with high growth potential."
Mr. Wise went on to state, "Our strong year-to-date performance, new product launches, and current business and market assessment provide us with increased confidence in our earnings growth for 2008. We are increasing our full year guidance from the $1.83 to $1.88 earnings per diluted share, provided earlier in the year, to $1.86 to $1.91 per diluted share for the full year 2008." Guidance for 2008 excludes income tax related adjustments, restructuring and other costs, and the benefit from the provisions of SFAS 157.
ADDITIONAL INFORMATION
A conference call has been scheduled for Wednesday, July 30, 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 8304625. If you would like to participate in this call, dial (888) 271-8596 (for domestic calls), and (913) 312-9330 (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), Passcode # 8304625.
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 SIX MONTHS ENDED
JUNE 30, JUNE 30,
----------------------------------------------
2008 2007 2008 2007
---------- ---------- ---------- ----------
NET SALES $ 594,847 $ 507,362 $1,155,629 $ 980,226
NET SALES - Ex
Precious Metal
Content 542,272 462,108 1,038,521 885,374
COST OF PRODUCTS
SOLD 279,361 238,578 554,900 465,164
---------- ---------- ---------- ----------
GROSS PROFIT 315,486 268,784 600,729 515,062
% OF NET SALES 53.0% 53.0% 52.0% 52.5%
% OF NET SALES -
Ex Precious Metal
Content 58.2% 58.2% 57.8% 58.2%
SELLING, GENERAL &
ADMINISTRATIVE
EXPENSES 200,867 172,084 384,869 336,161
RESTRUCTURING AND
OTHER OPERATING
COSTS 1,458 3,207 1,662 4,197
---------- ---------- ---------- ----------
INCOME FROM
OPERATIONS 113,161 93,493 214,198 174,704
% OF NET SALES 19.0% 18.4% 18.5% 17.8%
% OF NET SALES -
Ex Precious Metal
Content 20.9% 20.2% 20.6% 19.7%
NET INTEREST AND
OTHER NON
OPERATING EXPENSE
(INCOME) 3,216 (2,133) 9,355 (4,388)
---------- ---------- ---------- ----------
PRE-TAX INCOME 109,945 95,626 204,843 179,092
INCOME TAXES 31,297 30,193 58,015 55,187
---------- ---------- ---------- ----------
NET INCOME $ 78,648 $ 65,433 $ 146,828 $ 123,905
% OF NET SALES 13.2% 12.9% 12.7% 12.6%
% OF NET SALES -
Ex Precious Metal
Content 14.5% 14.2% 14.1% 14.0%
EARNINGS PER SHARE
-BASIC $ 0.53 $ 0.43 $ 0.98 $ 0.82
-DILUTIVE $ 0.52 $ 0.42 $ 0.96 $ 0.80
DIVIDENDS PER SHARE$ 0.045 $ 0.040 $ 0.090 $ 0.080
WEIGHTED AVERAGE
NUMBER OF COMMON
SHARES
OUTSTANDING
-BASIC 148,851 152,000 149,394 152,016
-DILUTIVE 151,790 154,873 152,371 154,723
DENTSPLY INTERNATIONAL INC.
CONDENSED BALANCE SHEETS
(IN THOUSANDS)
JUNE 30, DECEMBER 31,
2008 2007
---------- ----------
ASSETS
CURRENT ASSETS:
CASH AND CASH EQUIVALENTS $ 113,454 $ 169,384
SHORT TERM INVESTMENTS 309,797 146,939
ACCOUNTS AND NOTES RECEIVABLE-TRADE, NET 371,489 307,622
INVENTORIES, NET 282,795 258,032
OTHER CURRENT ASSETS 104,552 100,045
---------- ----------
TOTAL CURRENT ASSETS 1,182,087 982,022
PROPERTY,PLANT AND EQUIPMENT, NET 405,603 371,409
IDENTIFIABLE INTANGIBLE ASSETS, NET 76,347 76,167
GOODWILL, NET 1,178,627 1,127,420
OTHER NONCURRENT ASSETS, NET 150,544 118,551
---------- ----------
TOTAL ASSETS $2,993,208 $2,675,569
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY:
CURRENT LIABILITIES $ 325,561 $ 312,411
LONG-TERM DEBT 576,649 482,063
OTHER LIABILITIES 411,744 304,146
DEFERRED INCOME TAXES 69,727 60,547
---------- ----------
TOTAL LIABILITIES 1,383,681 1,159,167
MINORITY INTEREST IN CONSOLIDATED
SUBSIDIARIES 337 296
STOCKHOLDERS' EQUITY 1,609,190 1,516,106
---------- ----------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $2,993,208 $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.
Three Months Ended June 30, 2008 Percentage
of Net
Sales, Ex
Operating Precious
Income Metal
(Expense) Content
---------- ----------
Income from Operations $ 113,161 20.9%
Restructuring Costs 1,458 0.2%
---------- ----------
Adjusted Non-GAAP Operating Earnings $ 114,619 21.1%
========== ==========
Three Months Ended June 30, 2007 Percentage
of Net
Sales, Ex
Operating Precious
Income Metal
(Expense) Content
---------- ----------
Income from Operations $ 93,493 20.2%
Restructuring Costs 3,207 0.7%
---------- ----------
Adjusted Non-GAAP Operating Earnings $ 96,700 20.9%
========== ==========
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 June 30, 2008 Diluted
Income Per
(Expense) Share
-------- --------
Net Income $ 78,648 $ 0.52
Provisions of SFAS 157, Net of Tax (1,129) (0.01)
Restructuring Costs, Net of Tax 905 (0.00)
Income Tax Related Adjustments 1,018 0.01
-------- --------
Adjusted Non-GAAP Earnings $ 79,442 $ 0.52
======== ========
Three Months Ended June 30, 2007
Diluted
Income Per
(Expense) Share
-------- --------
Net Income $ 65,433 $ 0.42
Restructuring Costs, Net of Tax 2,022 0.01
Income Tax Related Adjustments 588 0.01
-------- --------
Adjusted Non-GAAP Earnings $ 68,043 $ 0.44
======== ========
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.
Six Months Ended June 30, 2008
Percentage
of Net
Sales, Ex
Operating Precious
Income Metal
(Expense) Content
---------- ----------
Income from Operations $ 214,198 20.6%
Restructuring Costs 1,662 0.2%
---------- ----------
Adjusted Non-GAAP Operating Earnings $ 215,860 20.8%
========== ==========
Six Months Ended June 30, 2007
Percentage
of Net
Sales, Ex
Operating Precious
Income Metal
(Expense) Content
---------- ----------
Income from Operations $ 174,704 19.7%
Restructuring Costs 4,197 0.5%
---------- ----------
Adjusted Non-GAAP Operating Earnings $ 178,901 20.2%
========== ==========
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.
Six Months Ended June 30, 2008
Income Diluted
(Expense) Per Share
--------- ---------
Net Income $ 146,828 $ 0.96
Provisions of SFAS 157, Net of Tax (1,129) (0.01)
Restructuring Costs, Net of Tax 1,034 0.01
Income Tax Related Adjustments 1,655 0.01
--------- ---------
Adjusted Non-GAAP Earnings $ 148,388 $ 0.97
========= =========
Six Months Ended June 30, 2007
Income Diluted
(Expense) Per Share
--------- ---------
Net Income $ 123,905 $ 0.80
Restructuring Costs, Net of Tax 2,678 0.02
Income Tax Related Adjustments 356 0.00
--------- ---------
Adjusted Non-GAAP Earnings $ 126,939 $ 0.82
========= =========
CONTACT: DENTSPLY International Inc.
William R. Jellison, Senior Vice President and
Chief Financial Officer
(717) 849-4243