DENTSPLY International Reports Third Quarter 2009 Sales and Earnings
YORK, Pa., Oct. 28, 2009 (GLOBE NEWSWIRE) -- DENTSPLY International Inc. (Nasdaq:XRAY) today announced sales and earnings for the three months ended September 30, 2009. Net sales in the third quarter of 2009 increased 0.2% to $531.0 million compared to $530.0 million reported for the third quarter of 2008. Net sales, without precious metal content, increased 1.1% to $493.6 million in the third quarter of 2009. The change in net sales, excluding precious metal content, was driven by an increase of 2.5% in constant currency including acquisitions, partially offset by currency translation, which reduced sales by 1.4% in the period.
Net income for the third quarter of 2009 was $67.5 million, or $0.45 per diluted share, compared to $0.44 per diluted share in the third quarter of 2008. Net income in the third quarter of 2009 included the net of tax impact of restructuring and other costs of $0.8 million, a net of tax impact for recent acquisition-related activities of $0.1 million and a net benefit for income tax-related adjustments of $2.6 million, which in aggregate increased earnings per share on a net basis by $0.01 per diluted share. 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 $0.02 per diluted share. For a reconciliation of GAAP and non-GAAP measures, see the attached table.
"We are pleased to report solid sales and earnings performance for the quarter, as well as excellent cash flow generation, despite the continuing macroeconomic challenges impacting the global dental market," said Bret W. Wise, Chairman and CEO. "The global dental market appears to be in the early stages of a recovery, although it is likely to be gradual and vary across geographic regions and product categories. Given the current market conditions, we are tightening the range of our full year earnings guidance to $1.81 to $1.86 per diluted share, measured on a non-GAAP basis."
ADDITIONAL INFORMATION
A conference call has been scheduled for Thursday, October 29, 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 (888) 811-5436 (for domestic calls) and (913) 312-1381 (for international calls). The Conference ID # is 9055234. At that time, you will be able to discuss the third 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 # 9055234.
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 OPERATIONS
(IN THOUSANDS EXCEPT PER SHARE DATA)
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
-------------------- ----------------------
2009 2008 2009 2008
--------- --------- ---------- ----------
NET SALES $ 531,032 $ 529,953 $1,591,197 $1,685,582
NET SALES - Ex
Precious Metal
Content 493,646 488,086 1,471,207 1,526,607
COST OF PRODUCTS
SOLD 258,051 249,770 764,276 804,670
--------- --------- ---------- ----------
GROSS PROFIT 272,981 280,183 826,921 880,912
% OF NET SALES 51.4% 52.9% 52.0% 52.3%
% OF NET SALES -
Ex Precious Metal
Content 55.3% 57.4% 56.2% 57.7%
SELLING, GENERAL &
ADMINISTRATIVE
EXPENSES 178,841 180,729 543,207 565,599
RESTRUCTURING,
IMPAIRMENTS AND
OTHER COSTS 1,210 18,539 5,905 20,202
--------- --------- ---------- ----------
INCOME FROM
OPERATIONS 92,930 80,915 277,809 295,111
% OF NET SALES 17.5% 15.3% 17.5% 17.5%
% OF NET SALES -
Ex Precious Metal
Content 18.8% 16.6% 18.9% 19.3%
NET INTEREST AND
OTHER NON
OPERATING EXPENSE 5,078 5,645 13,877 14,973
--------- --------- ---------- ----------
PRE-TAX INCOME 87,852 75,270 263,932 280,138
INCOME TAXES 19,999 9,204 65,570 67,219
--------- --------- ---------- ----------
NET INCOME $ 67,853 $ 66,066 $ 198,362 $ 212,919
% OF NET SALES 12.8% 12.5% 12.5% 12.6%
% OF NET SALES -
Ex Precious Metal
Content 13.7% 13.5% 13.5% 13.9%
LESS: NET INCOME
(LOSS) ATTRIBUTABLE
TO THE
NON-CONTROLLING
INTERESTS 370 19 (1,062) 45
--------- --------- ---------- ----------
NET INCOME
ATTRIBUTABLE TO
DENTSPLY
INTERNATIONAL $ 67,483 $ 66,047 $ 199,424 $ 212,874
========= ========= ========== ==========
% OF NET SALES 12.7% 12.5% 12.5% 12.6%
% OF NET SALES -
Ex Precious Metal
Content 13.7% 13.5% 13.6% 13.9%
EARNINGS PER SHARE
-BASIC $ 0.45 $ 0.44 $ 1.34 $ 1.43
-DILUTIVE $ 0.45 $ 0.44 $ 1.33 $ 1.40
DIVIDENDS PER SHARE $ 0.050 $ 0.045 $ 0.150 $ 0.135
WEIGHTED AVERAGE
NUMBER OF COMMON
SHARES OUTSTANDING
-BASIC 148,547 148,775 148,546 149,186
-DILUTIVE 150,638 151,697 150,077 152,137
DENTSPLY INTERNATIONAL INC.
CONDENSED BALANCE SHEETS
(IN THOUSANDS)
SEPTEMBER 30, DECEMBER 31,
2009 2008
------------ ------------
ASSETS
CURRENT ASSETS:
CASH AND CASH EQUIVALENTS $ 333,368 $ 203,991
SHORT TERM INVESTMENTS 37 258
ACCOUNTS AND NOTES RECEIVABLE-
TRADE, NET 356,976 319,260
INVENTORIES, NET 311,666 306,125
OTHER CURRENT ASSETS 125,056 120,228
------------ ------------
TOTAL CURRENT ASSETS 1,127,103 949,862
PROPERTY, PLANT AND EQUIPMENT, NET 445,365 432,276
IDENTIFIABLE INTANGIBLE ASSETS, NET 119,344 103,718
GOODWILL, NET 1,308,824 1,277,026
OTHER NONCURRENT ASSETS, NET 66,473 67,518
------------ ------------
TOTAL ASSETS $ 3,067,109 $ 2,830,400
============ ============
LIABILITIES AND STOCKHOLDERS'
EQUITY:
CURRENT LIABILITIES $ 603,652 $ 359,962
LONG-TERM DEBT 154,842 423,679
DEFERRED INCOME TAXES 77,838 69,049
OTHER LIABILITIES 328,326 318,297
------------ ------------
TOTAL LIABILITIES 1,164,658 1,170,987
STOCKHOLDERS' EQUITY 1,827,255 1,587,722
NON-CONTROLLING INTERESTS 75,196 71,691
------------ ------------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $ 3,067,109 $ 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 September 30, 2009 Percentage
Operating of Net Sales,
Income Ex Precious
(Expense) Metal Content
------------- -------------
Income from Operations $ 92,930 18.8%
Restructuring, Impairments and
Other Costs 1,210 0.3%
Recent Acquisition-Related
Activities 243 0.0%
------------- -------------
Adjusted Non-GAAP Operating
Earnings $ 94,383 19.1%
============= =============
Three Months Ended September 30, 2008 Percentage
Operating of Net Sales,
Income Ex Precious
(Expense) Metal Content
------------- -------------
Income from Operations $ 80,915 16.6%
Restructuring, Impairments and
Other Costs 18,539 3.8%
------------- -------------
Adjusted Non-GAAP Operating
Earnings $ 99,454 20.4%
============= =============
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 September 30, 2009
Income Diluted
(Expense) Per Share
----------- -----------
Net Income Attributable to DENTSPLY
International $ 67,483 $ 0.45
Restructuring, Impairment and Other
Costs, Net of Tax and
Non-Controlling Interests 843 0.01
Recent Acquisition-Related Activities,
Net of Tax and Non-Controlling
Interests 131 0.00
Income Tax-Related Adjustments (2,570) (0.02)
----------- -----------
Adjusted Non-GAAP Earnings $ 65,887 $ 0.44
=========== ===========
Three Months Ended September 30, 2008
Income Diluted
(Expense) Per Share
----------- -----------
Net Income Attributable to DENTSPLY
International $ 66,047 $ 0.44
Restructuring and Other Costs, Net of
Tax and Non-Controlling Interests 11,398 0.07
Income Tax-Related Adjustments (8,169) (0.05)
----------- -----------
Adjusted Non-GAAP Earnings $ 69,276 $ 0.46
=========== ============
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, 2009
Percentage
Operating of Net Sales,
Income Ex Precious
(Expense) Metal Content
------------- -------------
Income from Operations $ 277,809 18.9%
Restructuring, Impairments and Other
Costs 5,905 0.4%
Recent Acquisition-Related Activities 4,020 0.3%
------------- -------------
Adjusted Non-GAAP Operating Earnings $ 287,734 19.6%
============= =============
Nine Months Ended September 30, 2008
Percentage
Operating of Net Sales,
Income Ex Precious
(Expense) Metal Content
------------- -------------
Income from Operations $ 295,111 19.3%
Restructuring, Impairments and Other
Costs 20,202 1.4%
------------- -------------
Adjusted Non-GAAP Operating Earnings $ 315,313 20.7%
============= =============
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, 2009
Income Diluted
(Expense) Per Share
------------- -------------
Net Income Attributable to DENTSPLY
International $ 199,424 $ 1.33
Restructuring, Impairment and Other
Costs, Net of Tax and Non-Controlling
Interests 1,770 0.01
Recent Acquisition-Related Activities,
Net of Tax and Non-Controlling
Interests 4,024 0.02
Income Tax-Related Adjustments (2,076) (0.01)
------------- -------------
Adjusted Non-GAAP Earnings $ 203,142 $ 1.35
============= =============
Nine Months Ended September 30, 2008
Income Diluted
(Expense) Per Share
------------- -------------
Net Income Attributable to DENTSPLY
International $ 212,874 $ 1.40
Restructuring, Impairment and Other
Costs, Net of Tax and Non-Controlling
Interests 12,432 0.08
Non-performance Risk Adjustments on
Derivatives (1,129) (0.01)
Income Tax-Related Adjustments (6,513) (0.04)
------------- -------------
Adjusted Non-GAAP Earnings $ 217,664 $ 1.43
============= =============
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 September 30, 2009
Percentage
Pre-tax Income of Pre-tax
Income Taxes Income
---------- ---------- ----------
As Reported - GAAP Operating
Results $ 87,852 $ (19,999) 22.8%
Restructuring, Impairment and
Other Costs 1,210 (492)
Recent Acquisition-Related
Activities 243 (24)
Income Tax-Related Adjustments (2,570)
---------- ---------- ----------
As Adjusted - Non-GAAP
Operating Results $ 89,305 $ (23,085) 25.8%
Three Months Ended September 30, 2008
Percentage
Pre-tax Income of Pre-tax
Income Taxes Income
---------- ---------- ----------
As Reported - GAAP Operating
Results $ 75,270 $ (9,204) 12.2%
Restructuring, Impairment and
Other Costs 18,539 (7,141)
Income Tax-Related Adjustments (8,169)
---------- ---------- ----------
As Adjusted - Non-GAAP Operating
Results $ 93,809 $ (24,514) 26.1%
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.
Nine Months Ended September 30, 2009
Percentage
Pre-tax Income of Pre-tax
Income Taxes Income
---------- ---------- ----------
As Reported - GAAP Operating
Results $ 263,932 $ (65,570) 24.8%
Restructuring, Impairment and
Other Costs 5,905 (2,006)
Recent Acquisition-Related
Activities 4,020 (1,070)
Income Tax-Related Adjustments (2,076)
---------- ---------- ----------
As Adjusted - Non-GAAP
Operating Results $ 273,857 $ (70,722) 25.8%
Nine Months Ended September 30, 2008
Percentage
Pre-tax Income of Pre-tax
Income Taxes Income
---------- ---------- ----------
As Reported - GAAP Operating
Results $ 280,138 $ (67,219) 24.0%
Restructuring, Impairment and
Other Costs 20,202 (7,770)
Non-performance Risk Adjustments
on Derivatives (1,839) 710
Income Tax-Related Adjustments (6,513)
---------- ---------- ----------
As Adjusted - Non-GAAP
Operating Results $ 298,501 $ (80,792) 27.1%
CONTACT: DENTSPLY International Inc.
William R. Jellison, Senior Vice President and
Chief Financial Officer
(717) 849-4243