DENTSPLY International Inc. Reports Second Quarter 2009 Sales and Earnings
YORK, Pa., July 29, 2009 (GLOBE NEWSWIRE) -- DENTSPLY International Inc. (Nasdaq:XRAY) today announced sales and earnings for the three months ended June 30, 2009. Net sales in the second quarter of 2009 decreased 7.0% to $553.2 million compared to $594.8 million reported for the second quarter of 2008. Net sales, without precious metal content, decreased 5.6% to $511.9 million in the second quarter of 2009. The change in net sales, excluding precious metal content, was driven by currency translation, which reduced sales by 6.1%, offset by 0.5% growth on a constant currency basis which includes acquisitions.
Net income for the second quarter of 2009 was $ 70.2 million, or $0.47 per diluted share, compared to $0.52 per diluted share in the second quarter of 2008. Net income in the second quarter of 2009 included the net of tax impact of restructuring and other costs of $2.2 million, a net of tax impact for recent acquisition-related activities of $0.5 million and a net charge for income tax-related adjustments of $0.2 million, which in aggregate reduced earnings per share on a net basis by less than $.02 per diluted share. 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. For a reconciliation of GAAP and non-GAAP measures, see the attached table.
Bret Wise, Chairman and Chief Executive Officer, stated "We are pleased to have once again delivered constant currency sales growth, excluding precious metals content. Despite a difficult economic environment, our businesses continue to execute well and our earnings and cash flow are solid. This affirms the resilience of the global dental market and the strength of our business model. While uncertainty continues to surround the global economy, based on our results to date and current outlook, we are confirming our full year earnings per diluted share guidance of $1.80 to $1.90, on a non-GAAP basis."
ADDITIONAL INFORMATION
A conference call has been scheduled for Thursday, July 30, 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) 397-0235 (for domestic calls) and (719) 325-4854 (for international calls). The Conference ID # is 7450415. At that time, you will be able to discuss the second 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 # 7450415.
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 are 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 SIX MONTHS ENDED
JUNE 30, JUNE 30,
---------------------- ----------------------
2009 2008 2009 2008
---------- ---------- ---------- ----------
NET SALES $ 553,216 $ 594,847 $1,060,165 $1,155,629
NET SALES -
Ex Precious
Metal Content 511,911 542,273 977,561 1,038,521
COST OF PRODUCTS SOLD 266,245 279,361 506,225 554,900
---------- ---------- ---------- ----------
GROSS PROFIT 286,971 315,486 553,940 600,729
% OF NET SALES 51.9% 53.0% 52.3% 52.0%
% OF NET SALES -
Ex Precious
Metal Content 56.1% 58.2% 56.7% 57.8%
SELLING, GENERAL
& ADMINISTRATIVE
EXPENSES 185,138 200,867 364,366 384,869
RESTRUCTURING,
IMPAIRMENT AND
OTHER COSTS 3,125 1,458 4,695 1,662
---------- ---------- ---------- ----------
INCOME FROM OPERATIONS 98,708 113,161 184,879 214,198
% OF NET SALES 17.8% 19.0% 17.4% 18.5%
% OF NET SALES -
Ex Precious
Metal Content 19.3% 20.9% 18.9% 20.6%
NET INTEREST AND OTHER
NON OPERATING EXPENSE 3,688 3,165 8,799 9,329
---------- ---------- ---------- ----------
PRE-TAX INCOME 95,020 109,996 176,080 204,869
INCOME TAXES 24,440 31,297 45,571 58,015
---------- ---------- ---------- ----------
NET INCOME $ 70,580 $ 78,699 $ 130,509 $ 146,854
% OF NET SALES 12.8% 13.2% 12.3% 12.7%
% OF NET SALES -
Ex Precious
Metal Content 13.8% 14.5% 13.4% 14.1%
LESS: NET INCOME (LOSS)
ATTRIBUTABLE TO THE
NON-CONTROLLING
INTERESTS 381 51 (1,433) 26
---------- ---------- ---------- ----------
NET INCOME
ATTRIBUTABLE
TO DENTSPLY
INTERNATIONAL $ 70,199 $ 78,648 $ 131,942 $ 146,828
========== ========== ========== ==========
% OF NET SALES 12.7% 13.2% 12.4% 12.7%
% OF NET SALES -
Ex Precious
Metal Content 13.7% 14.5% 13.5% 14.1%
EARNINGS PER SHARE
-BASIC $ 0.47 $ 0.53 $ 0.89 $ 0.98
-DILUTIVE $ 0.47 $ 0.52 $ 0.88 $ 0.96
DIVIDENDS PER SHARE $ 0.050 $ 0.045 $ 0.100 $ 0.090
WEIGHTED AVERAGE
NUMBER OF COMMON
SHARES OUTSTANDING
-BASIC 148,577 148,851 148,546 149,394
-DILUTIVE 150,057 151,790 149,822 152,371
DENTSPLY INTERNATIONAL INC.
CONDENSED BALANCE SHEETS
(IN THOUSANDS)
JUNE 30, DEC. 31,
2009 2008
---------- ----------
ASSETS
CURRENT ASSETS:
CASH AND CASH EQUIVALENTS $ 251,871 $ 203,991
SHORT TERM INVESTMENTS 36 258
ACCOUNTS AND NOTES
RECEIVABLE-TRADE, NET 357,546 319,260
INVENTORIES, NET 309,431 306,125
OTHER CURRENT ASSETS 113,621 120,228
---------- ----------
TOTAL CURRENT ASSETS 1,032,505 949,862
PROPERTY, PLANT AND EQUIPMENT, NET 429,935 432,276
IDENTIFIABLE INTANGIBLE ASSETS, NET 122,696 103,718
GOODWILL, NET 1,267,898 1,277,026
OTHER NONCURRENT ASSETS, NET 45,445 67,518
----------
TOTAL ASSETS $2,898,479 $2,830,400
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY:
CURRENT LIABILITIES $ 590,493 $ 359,962
LONG-TERM DEBT 145,949 423,679
DEFERRED INCOME TAXES 70,508 69,049
OTHER LIABILITIES 287,407 318,297
---------- ----------
TOTAL LIABILITIES 1,094,357 1,170,987
STOCKHOLDERS' EQUITY 1,732,618 1,587,722
NON-CONTROLLING INTERESTS 71,504 71,691
---------- ----------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $2,898,479 $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 June 30, 2009
Percentage
of Net
Sales,
Ex
Operating Precious
Income Metal
(Expense) Content
-------- --------
Income from Operations $ 98,708 19.3%
Restructuring, Impairment and
Other Costs 3,125 0.6%
Recent Acquisition-Related Activities 1,173 0.2%
-------- --------
Adjusted Non-GAAP Operating Earnings $103,006 20.1%
======== ========
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, Impairment and
Other Costs 1,458 0.2%
-------- --------
Adjusted Non-GAAP Operating Earnings $114,619 21.1%
======== ========
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.
Three Months Ended June 30, 2009
Income Diluted
(Expense) Per Share
-------- --------
Net Income Attributable to DENTSPLY
International $ 70,199 $ 0.47
Restructuring, Impairment and Other
Costs, Net of Tax and Non-Controlling
Interests 2,185 0.01
Recent Acquisition-Related Activities,
Net of Tax and Non-Controlling
Interests 519 0.00
Income Tax-Related Adjustments 212 0.00
Rounding -- 0.01
-------- --------
Adjusted Non-GAAP Earnings $ 73,115 $ 0.49
======== ========
Three Months Ended June 30, 2008
Income Diluted
(Expense) Per Share
-------- --------
Net Income Attributable to
DENTSPLY International $ 78,648 $ 0.52
Non-performance risk adjustments
on derivatives (1,129) (0.01)
Restructuring and Other Costs,
Net of Tax 905 0.00
Income Tax-Related Adjustments 1,018 0.01
Adjusted Non-GAAP Earnings $ 79,442 $ 0.52
======== ========
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, 2009
Percentage
of Net
Sales,
Ex
Operating Precious
Income Metal
(Expense) Content
-------- --------
Income from Operations $184,879 18.9%
Restructuring, Impairment and
Other Costs 4,695 0.5%
Recent Acquisition-Related Activities 3,777 0.4%
-------- --------
Adjusted Non-GAAP Operating Earnings $193,351 19.8%
======== ========
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, Impairment and
Other Costs 1,662 0.2%
-------- --------
Adjusted Non-GAAP Operating Earnings $215,860 20.8%
======== ========
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, 2009
Income Diluted
(Expense) Per Share
---------- ----------
Net Income Attributable to DENTSPLY
International $ 131,942 $ 0.88
Restructuring, Impairment and Other Costs,
Net of Tax and Non-Controlling Interests 3,181 0.02
Recent Acquisition-Related Activities, Net of
Tax and Non-Controlling Interests 1,638 0.01
Income Tax-Related Adjustments 495 0.00
Rounding -- 0.01
---------- ----------
Adjusted Non-GAAP Earnings $ 137,256 $ 0.92
========== ==========
Six Months Ended June 30, 2008
Income Diluted
(Expense) Per Share
---------- ----------
Net Income Attributable to DENTSPLY
International $ 146,828 $ 0.96
Non-performance risk adjustments on
derivatives (1,129) (0.01)
Restructuring, Impairment and Other Costs,
Net of Tax and Non-Controlling Interests 1,034 0.01
Income Tax-Related Adjustments 1,655 0.01
---------- ----------
Adjusted Non-GAAP Earnings $ 148,388 $ 0.97
========== ==========
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 June 30, 2009
Percentage
Pre-tax Income of Pre-tax
Income Taxes Income
---------- ---------- ----------
As Reported - GAAP Operating
Results $ 95,020 $ (24,440) 25.7%
Restructuring, Impairment and
Other Costs 3,125 (940)
Recent Acquisition-Related
Activities 1,173 (308)
Income Tax-Related
Adjustments 212
---------- ---------- ----------
As Adjusted - Non-GAAP
Operating Results $ 99,318 $ (25,476) 25.7%
Three Months Ended June 30, 2008
Percentage
Pre-tax Income of Pre-tax
Income Taxes Income
---------- ---------- ----------
As Reported - GAAP Operating
Results $ 109,996 $ (31,297) 28.5%
Non-performance risk
adjustments on derivatives (1,839) 710
Restructuring, Impairment and
Other Costs 1,458 (553)
Income Tax-Related
Adjustments 1,018
---------- ---------- ----------
As Adjusted - Non-GAAP
Operating Results $ 109,615 $ (30,122) 27.5%
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
Six Months Ended June 30, 2009
Percentage
Pre-tax Income of Pre-tax
Income Taxes Income
---------- ---------- ----------
As Reported - GAAP Operating
Results $ 176,080 $ (45,571) 25.9%
Restructuring, Impairment and
Other Costs 4,695 (1,514)
Recent Acquisition-Related
Activities 3,777 (1,047)
Income Tax-Related
Adjustments 495
---------- ---------- ----------
As Adjusted - Non-GAAP
Operating Results $ 184,552 $ (47,637) 25.8%
Six Months Ended June 30, 2008
Percentage
Pre-tax Income of Pre-tax
Income Taxes Income
---------- ---------- ----------
As Reported - GAAP Operating
Results $ 204,869 $ (58,015) 28.3%
Non-performance risk
adjustments on derivatives (1,839) 710
Restructuring, Impairment and
Other Costs 1,662 (628)
Income Tax-Related
Adjustments 1,655
---------- ---------- ----------
As Adjusted - Non-GAAP
Operating Results $ 204,692 $ (56,278) 27.5%
CONTACT: DENTSPLY International Inc.
William R. Jellison, Senior Vice President and
Chief Financial Officer
(717) 849-4243