DENTSPLY International Inc. Reports Record Third Quarter 2008 Sales and Earnings
YORK, Pa., Oct. 28, 2008 (GLOBE NEWSWIRE) -- DENTSPLY International Inc. (Nasdaq:XRAY) today announced record sales and earnings for the three months ended September 30, 2008.
FINANCIAL RESULTS
Three Months Ended September 30, 2008
Net sales in the third quarter of 2008 increased 8.6% to $530.0 million compared to $488.1 million reported for the third quarter of 2007. Net sales, without precious metal content, increased 9.6% to $488.1 million in the third quarter of 2008, as we continued to benefit from a balanced portfolio of dental products with a diversified geographic mix, favorable exchange impact and acquisition growth.
Net income for the third quarter of 2008 was $66.0 million, or $0.44 per diluted share, compared to $0.42 per diluted share in the third quarter of 2007. Net income in the third quarter of 2008 included an $11.4 million net of tax charge for restructuring and other costs, and a net benefit for income tax-related adjustments of $8.2 million, which combined, reduced earnings per share on a net basis by $.02 per diluted share. The third quarter of 2007 included the net of tax impact of restructuring and other costs of $3.0 million and a net benefit for income tax-related adjustments of $7.8 million, which combined, benefited earnings per diluted share by $.03.
Net income on a non-GAAP basis, (excluding restructuring and other costs, and income tax-related adjustments), was $69.3 million or $0.46 per diluted share in the third quarter of 2008 compared to $61.0 million or $0.39 per diluted share in the third quarter of 2007. This represents a 17.9% 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 Third Quarter Results & 2008 Full Year Outlook
Bret Wise, Chairman and Chief Executive Officer, stated, "We are very pleased to once again deliver record top and bottom line results in the third quarter. We continue to benefit from our role as a key diversified player in the global dental industry, which generally has less volatility than broader markets. We believe our global market position and financial strength in today's economic environment will allow us to develop a stronger presence in the worldwide dental market as we move forward."
Mr. Wise went on to state, "While we acknowledge that economic volatility is making global markets more unpredictable, our strong and consistent year-to-date performance, new product launches, and current assessment of business and market conditions continue to give us confidence in our business model. We are reconfirming our 2008 guidance of $1.86 to $1.91 for earnings per diluted share. 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, October 29, 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 1471266. If you would like to participate in this call, dial (877) 719-9799 (for domestic calls), and (719)325-4820 (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 # 1471266.
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 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 NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
------------------------------------------
2008 2007 2008 2007
-------- -------- ---------- ----------
NET SALES $529,953 $488,103 $1,685,582 $1,468,329
NET SALES - Ex
Precious Metal
Content 488,086 445,332 1,526,607 1,330,706
COST OF PRODUCTS
SOLD 249,770 235,113 804,670 700,277
-------- -------- ---------- ----------
GROSS PROFIT 280,183 252,990 880,912 768,052
% OF NET SALES 52.9% 51.8% 52.3% 52.3%
% OF NET SALES - Ex
Precious Metal
Content 57.4% 56.8% 57.7% 57.7%
SELLING, GENERAL &
ADMINISTRATIVE
EXPENSES 180,729 165,708 565,599 501,869
RESTRUCTURING AND
OTHER COSTS 18,539 4,692 20,202 8,889
-------- -------- ---------- ----------
INCOME FROM
OPERATIONS 80,915 82,590 295,111 257,294
% OF NET SALES 15.3% 16.9% 17.5% 17.5%
% OF NET SALES - Ex
Precious Metal
Content 16.6% 18.5% 19.3% 19.3%
NET INTEREST AND
OTHER NON OPERATING
EXPENSE (INCOME) 5,664 745 15,018 (3,643)
-------- -------- ---------- ----------
PRE-TAX INCOME 75,251 81,845 280,093 260,937
INCOME TAXES 9,204 16,126 67,219 71,313
-------- -------- ---------- ----------
NET INCOME $ 66,047 $ 65,719 $ 212,874 $ 189,624
% OF NET SALES 12.5% 13.5% 12.6% 12.9%
% OF NET SALES - Ex
Precious Metal
Content 13.5% 14.8% 13.9% 14.2%
EARNINGS PER SHARE
-BASIC $ 0.44 $ 0.43 $ 1.43 $ 1.25
-DILUTIVE $ 0.44 $ 0.42 $ 1.40 $ 1.23
DIVIDENDS PER SHARE $ 0.045 $ 0.040 $ 0.135 $ 0.120
WEIGHTED AVERAGE
NUMBER OF COMMON
SHARES OUTSTANDING
-BASIC 148,775 151,632 149,186 151,886
-DILUTIVE 151,697 154,736 152,137 154,735
DENTSPLY INTERNATIONAL INC.
CONDENSED BALANCE SHEETS
(IN THOUSANDS)
SEPTEMBER 30, DECEMBER 31,
2008 2007
------------- ------------
ASSETS
CURRENT ASSETS:
CASH AND CASH EQUIVALENTS $ 54,205 $ 169,384
SHORT TERM INVESTMENTS 190,545 146,939
ACCOUNTS AND NOTES RECEIVABLE-
TRADE, NET 345,477 307,622
INVENTORIES, NET 278,761 258,032
OTHER CURRENT ASSETS 103,108 100,045
----------- -----------
TOTAL CURRENT ASSETS 972,096 982,022
PROPERTY,PLANT AND EQUIPMENT, NET 386,885 371,409
IDENTIFIABLE INTANGIBLE ASSETS, NET 68,466 76,167
GOODWILL, NET 1,145,212 1,127,420
OTHER NONCURRENT ASSETS, NET 88,652 118,551
----------- -----------
TOTAL ASSETS $ 2,661,311 $ 2,675,569
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY:
CURRENT LIABILITIES $ 338,047 $ 312,411
LONG-TERM DEBT 401,685 482,063
OTHER LIABILITIES 271,618 304,146
DEFERRED INCOME TAXES 63,187 60,547
----------- -----------
TOTAL LIABILITIES 1,074,537 1,159,167
MINORITY INTEREST IN CONSOLIDATED
SUBSIDIARIES 355 296
STOCKHOLDERS' EQUITY 1,586,419 1,516,106
----------- -----------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $ 2,661,311 $ 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 September 30, 2008
Percentage
Operating of Net Sales,
Ex Precious
Income (Expense) Metal Content
---------------- -------------
Income from Operations $ 80,915 16.6%
Restructuring and Other Costs 18,539 3.8%
--------- ---------
Adjusted Non-GAAP Operating Earnings $ 99,454 20.4%
========= =========
Three Months Ended September 30, 2007
Percentage
Operating of Net Sales,
Ex Precious
Income (Expense) Metals Content
---------------- -------------
Income from Operations $ 82,590 18.5%
Restructuring and Other Costs 4,692 1.1%
--------- ---------
Adjusted Non-GAAP Operating Earnings $ 87,282 19.6%
========= =========
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 September 30, 2008
Income Diluted
(Expense) Per Share
---------- ----------
Net Income $ 66,047 $ 0.44
Restructuring and Other Costs, Net of Tax 11,398 0.07
Income Tax Related Adjustments (8,169) (0.05)
--------- --------
Adjusted Non-GAAP Earnings $ 69,276 $ 0.46
========= ========
Three Months Ended September 30, 2007
Income Diluted
(Expense) Per Share
---------- ----------
Net Income $ 65,719 $ 0.42
Restructuring and Other Costs, Net of Tax 3,032 0.02
Income Tax Related Adjustments (7,756) (0.05)
--------- --------
Adjusted Non-GAAP Earnings $ 60,995 $ 0.39
========= ========
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.
Nine Months Ended September 30, 2008
Percentage
Operating of Net Sales,
Ex Precious
Income (Expense) Metal Content
---------------- -------------
Income from Operations $ 295,111 19.4%
Restructuring and Other Costs 20,202 1.3%
--------- ---------
Adjusted Non-GAAP Operating Earnings $ 315,313 20.7%
========= =========
Nine Months Ended September 30, 2007
Percentage
Operating of Net Sales,
Ex Precious
Income (Expense) Metals Content
---------------- -------------
Income from Operations $ 257,294 19.3%
Restructuring and Other Costs 8,889 0.7%
--------- ---------
Adjusted Non-GAAP Operating Earnings $ 266,183 20.0%
========= =========
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.
Nine Months Ended September 30, 2008
Income Diluted
(Expense) Per Share
---------- ----------
Net Income $ 212,874 $ 1.40
Provisions of SFAS 157, Net of Tax (1,129) (0.01)
Restructuring and Other Costs, Net of Tax 12,432 0.08
Income Tax Related Adjustments (6,513) (0.04)
--------- --------
Adjusted Non-GAAP Earnings $ 217,664 $ 1.43
========= ========
Nine Months Ended September 30, 2007
Income Diluted
(Expense) Per Share
---------- ----------
Net Income $ 189,624 $ 1.23
Restructuring and Other Costs, Net of Tax 5,709 0.04
Income Tax Related Adjustments (7,400) (0.05)
Rounding -- (0.01)
--------- --------
Adjusted Non-GAAP Earnings $ 187,933 $ 1.21
========= ========
CONTACT: DENTSPLY International Inc.
William R. Jellison, Senior Vice President
and Chief Financial Officer
(717) 849-4243