Dentsply Sirona Reports Fourth Quarter and Full Year 2019 Results
- Reported Q419 revenues of
$1,112 million , up 4.9% as compared to prior year and up 8.4% on an internal sales growth basis - Q419 EPS of
$0.46 vs.$0.01 in Q418. Q419 non-GAAP EPS of$0.73 vs.$0.58 in Q418 - Q419 operating income increased 67% YoY to
$137 million and operating income margin was 12.4%. Q419 non-GAAP operating income grew 26% YoY to$222 million and non-GAAP operating income margin was 20.2% - Q419 cash flow from operations of
$299 million , up 48% as compared to prior year - Company announces FY20 non-
GAAP EPS Guidance Range of$2.55 to$2.80
Q419 and FY19 Operating Summary (GAAP)
($ in millions, except per share data and percentages) | Q419 | Q418 | YoY % | FY19 | FY18 | YoY % | ||||||||||||
1,112 | 1,060 | 4.9 | % | 4,029 | 3,986 | 1.1 | % | |||||||||||
Operating income | 137 | 82 | 67.0 | % | 361 | (958 | ) | NM | ||||||||||
Operating income % | 12.4 | % | 7.8 | % | 9.1 | % | NM | |||||||||||
Net income | 102 | 2 | NM | 263 | (1,011 | ) | NM | |||||||||||
Diluted EPS ($) | 0.46 | 0.01 | NM | 1.17 | (4.51 | ) | NM |
Q419 and FY19 Operating Summary (non-GAAP)[1]
($ in millions, except per share data and percentages) | Q419 | Q418 | YoY % | FY19 | FY18 | YoY % | ||||||||||||
1,102 | 1,051 | 4.8 | % | 3,988 | 3,956 | 0.8 | % | |||||||||||
Internal sales growth[3] | 8.4 | % | 5.7 | % | ||||||||||||||
Operating income | 222 | 176 | 26.3 | % | 742 | 614 | 20.8 | % | ||||||||||
Operating income % | 20.2 | % | 16.8 | % | 18.6 | % | 15.5 | % | ||||||||||
Net income | 164 | 130 | 25.8 | % | 550 | 455 | 21.0 | % | ||||||||||
Diluted EPS ($) | 0.73 | 0.58 | 25.9 | % | 2.45 | 2.01 | 21.9 | % |
[1] Non-GAAP net sales, internal sales growth, non-GAAP operating income, non-GAAP net income, non-GAAP EPS and Free Cash Flow results are non-GAAP financial measures which exclude certain items. Please refer to the tables at the end of this release for a reconciliation between GAAP and non-GAAP measures.
[2] Excludes currency fluctuations, acquisition related adjustments and precious metals.
[3] The Company defines “internal sales growth" as constant currency sales growth excluding the impacts of precious metals, net acquisitions and divestitures and discontinued products.
Cash Flow and Liquidity
Operating cash flow in the fourth quarter was
Segment Results
Consumables Segment
Fourth quarter 2019 sales were
Technologies & Equipment Segment
Fourth quarter 2019 sales were
Fiscal Year 2020 Outlook
The Company introduced its FY20 non-GAAP guidance range of
2020 Guidance | |
Revenue | |
Organic Sales Growth[1] | 3%-4% |
Portfolio shaping/M&A revenue impact from already completed activities | - |
Foreign currency FY20 impact | - |
Adjusted operating income margin[2] | 19.5%-20.5% |
Non-GAAP effective tax rate[2] | 24.5%-25.5% |
Adjusted earnings per share[2] | |
2020 Diluted Shares for Calculating non-GAAP EPS | 222M to 224M |
Our FY20 annual guidance incorporates a Q120 revenue impact from Coronavirus of between |
[1] Organic revenue growth adjusts reported revenue growth for currency translation, discontinued products and the impact of M&A.
[2]
Recent Announcements & Additional Highlights
CEREC Primemill Launch - An innovative inoffice milling and grinding unit that is designed to save dentists time at every step of the procedure. CEREC Primemill increases the attractiveness of the CEREC system and adds significant economic value for the dental practitioner. CEREC Primemill has a Super Fast milling mode which reduces the time required to mill a zirconia crown, down from around 12 minutes with older milling units, to as little as 5 minutes with CEREC Primemill.
SureSmile 2020 Educational Digital Summit - At the SureSmile annual
Conference Call/Webcast Information
Dentsply Sirona’s management team will host an investor conference call and live webcast on
Investors can access the webcast via a link on Dentsply Sirona’s web site at www.dentsplysirona.com. For those planning to participate on the call, please dial +1-877-370-7637 for domestic calls, or +1-629-228-0723 for international calls. The Conference ID # is 2579259. A replay of the conference call will be available online on the
About
Contact Information:
Investors:
Vice President, Investor Relations
+1-717-849-7863
John.Sweeney@dentsplysirona.com
Forward-Looking Statements and Associated Risks
Information included or incorporated by reference in this Presentation contains or may contain forward-looking statements. These forward-looking statements include, among other things, statements about the completion of expected financial results referred to herein, and/or statements about the Company’s plans, objectives, expectations (financial or otherwise) or intentions, including the Company's 2020 guidance.
The Company’s forward-looking statements involve risks and uncertainties. Actual results may differ significantly from those projected or suggested in any forward-looking statements. The Company does not undertake any obligation to release publicly any revisions to such forward-looking statements to reflect events or circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Any number of factors could cause the Company’s actual results to differ materially from those contemplated by any forward-looking statements, including, but not limited to, the risks associated with the following:
- the Company may be unable to execute key strategic activities due to competing priorities and strategies of its distribution partners and other factors
- the Company's ability to protect its technology infrastructure from cyber-attacks and other disruptions
- the Company's ability to maintain effective internal controls during periods of restructuring and organizational changes
- a significant failure or disruption in service within the Company’s operations or the operations of key distributors
- the Company’s failure to attract and retain talented employees, or to manage succession and retention for its key executives
- the Company's ability to successfully implement its cost reduction and restructuring plans
- the Company's ability to remain profitable in a very competitive marketplace, which depends upon the Company's ability to differentiate its products and services from those of competitors
- results in pending and future litigation, investigations or other proceedings which could subject the Company to significant monetary damages or penalties and/or require us to change our business practices, or the costs incurred in connection with such proceedings
- other risks described from time to time in the Company’s filings with the
SEC
You should carefully consider these and other relevant factors, including those risk factors in Item 1A, “Risk Factors” of the Company's Form 10-K for the year ended
Non-GAAP Financial Measures
The discussion below summarizes the Company's sales growth which excludes precious metal content, into the following components: (1) constant currency sales growth by segment and geographic region and (2) internal sales growth by segment and geographic region. These disclosures of net sales growth provide the reader with sales results on a comparable basis between periods. These principal measurements are not calculated in accordance with accounting principles generally accepted in
The Company defines “constant currency” sales growth as the increase or decrease in net sales from period to period excluding precious metal content and the impact of changes in foreign currency exchange rates. This impact is calculated by comparing current-period revenues to prior-period revenues, with both periods converted at the
Management believes that the presentation of net sales, excluding precious metal content, provides useful information to investors because a portion of Dentsply Sirona’s net sales comprises of sales of precious metals generated through sales of the Company’s precious metal dental alloy products, which are used by third parties to construct crown and bridge materials. Due to the fluctuations of precious metal prices and because the cost of the precious metal content of the Company’s sales is largely passed through to customers and has minimal effect on earnings,
In addition to the results reported in accordance with GAAP, the Company provides adjusted net income attributable to
Adjusted non-GAAP net income and adjusted EPS are important internal measures for the Company. Senior management receives a monthly analysis of operating results that includes adjusted non-GAAP net income and adjusted EPS and the performance of the Company is measured on this basis along with other performance metrics.
The adjusted net income attributable to
(1) Business combination related costs and fair value adjustments. These adjustments include costs related to integrating and consummating mergers and recently acquired businesses, as well as costs, gains and losses related to the disposal of businesses or significant product lines. In addition, this category includes the roll off to the consolidated statements of operations of fair value adjustments related to business combinations, except for amortization expense noted below. These items are irregular in timing and as such may not be indicative of past and future performance of the Company and are therefore excluded to allow investors to better understand underlying operating trends.
(2) Restructuring program related costs and other costs. These adjustments include costs related to the implementation of restructuring initiatives as well as certain other costs. These costs can include, but are not limited to, severance costs, facility closure costs, lease and contract terminations costs, related professional service costs, duplicate facility and labor costs associated with specific restructuring initiatives, as well as, legal settlements and impairments of assets. These items are irregular in timing, amount and impact to the Company’s financial performance. As such, these items may not be indicative of past and future performance of the Company and are therefore excluded for the purpose of understanding underlying operating trends.
(3) Amortization of purchased intangible assets. This adjustment excludes the periodic amortization expense related to purchased intangible assets. Amortization expense has been excluded from adjusted net income attributed to
(4) Credit risk and fair value adjustments. These adjustments include both the cost and income impacts of adjustments in certain assets and liabilities including the Company’s pension obligations, that are recorded through net income which are due solely to the changes in fair value and credit risk. These items can be variable and driven more by market conditions than the Company’s operating performance. As such, these items may not be indicative of past and future performance of the Company and therefore are excluded for comparability purposes.
(5) Gain on sale of marketable securities. This adjustment represents the gain on the sale of marketable securities held by the Company. The gain has been excluded from adjusted net income attributed to
(6) Income tax related adjustments. These adjustments include both income tax expenses and income tax benefits that are representative of income tax adjustments mostly related to prior periods, as well as the final settlement of income tax audits, and discrete tax items resulting from the implementation of restructuring initiatives and the vesting and exercise of employee share-based compensation. These adjustments are irregular in timing and amount and may significantly impact the Company’s operating performance. As such, these items may not be indicative of past and future performance of the Company and therefore are excluded for comparability purposes.
Adjusted EPS is calculated by dividing adjusted non-GAAP net income by diluted weighted-average common shares outstanding. The "adjusted EPS" and "adjusted non-GAAP net income" measurements are not calculated in accordance with accounting principles generally accepted in
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||
(In millions, except per share amounts and percentages) | ||||||||||||||||||
(unaudited) | ||||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||||
Net sales | $ | 1,111.5 | $ | 1,059.7 | $ | 4,029.2 | $ | 3,986.3 | ||||||||||
Net sales, excluding precious metal content | 1,102.0 | 1,050.0 | 3,988.1 | 3,949.1 | ||||||||||||||
Cost of products sold | 500.9 | 534.9 | 1,864.1 | 1,918.5 | ||||||||||||||
Gross profit | 610.6 | 524.8 | 2,165.1 | 2,067.8 | ||||||||||||||
Selling, general and administrative expenses | 461.4 | 433.2 | 1,723.5 | 1,719.1 | ||||||||||||||
— | — | — | 1,085.8 | |||||||||||||||
Restructuring and other costs | 12.6 | 9.8 | 80.7 | 221.0 | ||||||||||||||
Operating income (loss) | 136.6 | 81.8 | 360.9 | (958.1 | ) | |||||||||||||
Net interest and other expense | (0.9 | ) | 4.4 | 15.5 | 0.3 | |||||||||||||
Income (loss) before income taxes | 137.5 | 77.4 | 345.4 | (958.4 | ) | |||||||||||||
Provision for income taxes | 35.0 | 75.9 | 82.3 | 52.5 | ||||||||||||||
Net income (loss) | 102.5 | 1.5 | 263.1 | (1,010.9 | ) | |||||||||||||
Less: Net income (loss) attributable to noncontrolling interests | 0.2 | (0.3 | ) | 0.2 | 0.1 | |||||||||||||
Net income (loss) attributable to |
$ | 102.3 | $ | 1.8 | $ | 262.9 | $ | (1,011.0 | ) | |||||||||
Net income (loss) per common share attributable to |
||||||||||||||||||
Basic | $ | 0.46 | $ | 0.01 | $ | 1.18 | $ | (4.51 | ) | |||||||||
Diluted | $ | 0.46 | $ | 0.01 | $ | 1.17 | $ | (4.51 | ) | |||||||||
Weighted average common shares outstanding: | ||||||||||||||||||
Basic | 222.7 | 228.6 | 223.1 | 224.3 | ||||||||||||||
Diluted | 223.5 | 228.6 | 224.4 | 224.3 | ||||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
(In millions) | |||||||
(unaudited) | |||||||
Assets | |||||||
Current Assets: | |||||||
Cash and cash equivalents | $ | 404.9 | $ | 309.6 | |||
Accounts and notes receivable-trade, net | 782.0 | 701.9 | |||||
Inventories, net | 561.7 | 598.9 | |||||
Prepaid expenses and other current assets, net | 251.3 | 277.6 | |||||
Total Current Assets | 1,999.9 | 1,888.0 | |||||
Property, plant and equipment, net | 802.4 | 870.6 | |||||
Operating lease right-of-use assets, net | 159.3 | — | |||||
Identifiable intangible assets, net | 2,176.3 | 2,420.3 | |||||
3,396.5 | 3,431.3 | ||||||
Other noncurrent assets, net | 68.5 | 76.8 | |||||
Total Assets | $ | 8,602.9 | $ | 8,687.0 | |||
Liabilities and Equity | |||||||
Current liabilities: | |||||||
Accounts payable | 307.9 | 283.9 | |||||
Accrued liabilities | 629.2 | 578.9 | |||||
Income taxes payable | 56.1 | 58.1 | |||||
Notes payable and current portion of long-term debt | 2.3 | 92.4 | |||||
Total Current Liabilities | 995.5 | 1,013.3 | |||||
Long-term debt | 1,433.1 | 1,564.9 | |||||
Operating lease liabilities | 119.5 | — | |||||
Deferred income taxes | 479.6 | 552.8 | |||||
Other noncurrent liabilities | 480.3 | 423.0 | |||||
Total Liabilities | 3,508.0 | 3,554.0 | |||||
Total Equity | 5,094.9 | 5,133.0 | |||||
Total Liabilities and Equity | $ | 8,602.9 | $ | 8,687.0 | |||
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions) (unaudited)
Year Ended |
|||||||||
2019 | 2018 | ||||||||
Cash flows from operating activities: | |||||||||
Net Income (loss) | $ | 263.1 | $ | (1,010.9 | ) | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||
Depreciation | 133.2 | 132.9 | |||||||
Amortization of intangible assets | 189.6 | 197.9 | |||||||
Amortization of deferred financing costs | 2.7 | 2.7 | |||||||
Fixed asset impairment | 33.4 | — | |||||||
— | 1,085.8 | ||||||||
Indefinite lived intangible asset impairment | 5.3 | 179.2 | |||||||
Definite-lived intangible asset impairment | 3.8 | — | |||||||
Deferred income taxes | (37.4 | ) | (62.0 | ) | |||||
Stock based compensation expense | 66.2 | 21.0 | |||||||
Restructuring and other costs - non-cash | 16.1 | 22.5 | |||||||
Other non-cash (income) expense | (20.3 | ) | 3.4 | ||||||
Loss on disposal of property, plant and equipment | 3.6 | 4.6 | |||||||
Gain on sale of equity security | — | (44.1 | ) | ||||||
Gain on divestiture of noncontrolling interest | (8.7 | ) | — | ||||||
Loss on sale on non-strategic businesses and product lines | 2.0 | — | |||||||
Changes in operating assets and liabilities, net of acquisitions: | |||||||||
Accounts and notes receivable-trade, net | (91.4 | ) | 23.5 | ||||||
Inventories, net | 13.7 | (19.9 | ) | ||||||
Prepaid expenses and other current assets, net | 13.0 | (27.1 | ) | ||||||
Other noncurrent assets, net | (8.5 | ) | (12.7 | ) | |||||
Accounts payable | 26.1 | 7.1 | |||||||
Accrued liabilities | 45.3 | 0.3 | |||||||
Income taxes | (15.8 | ) | 12.1 | ||||||
Other noncurrent liabilities | (2.2 | ) | (16.5 | ) | |||||
Net cash provided by operating activities | 632.8 | 499.8 | |||||||
Cash flows from investing activities: | |||||||||
Capital expenditures | (122.9 | ) | (182.5 | ) | |||||
Cash paid for acquisitions of businesses and equity investments, net of cash acquired | (3.2 | ) | (130.5 | ) | |||||
Cash received on sale of non-strategic businesses or product lines | 11.6 | — | |||||||
Cash received on derivative contracts | 40.3 | 8.0 | |||||||
Cash paid on derivatives contracts | — | (2.4 | ) | ||||||
Expenditures for identifiable intangible assets | — | (5.5 | ) | ||||||
Purchase of short-term time investments | — | (3.7 | ) | ||||||
Liquidation of short-term investments | 1.0 | — | |||||||
Proceeds from sale of equity securities | — | 54.1 | |||||||
Proceeds from sale of property, plant and equipment, net | 4.8 | 9.2 | |||||||
Net cash used in investing activities | (68.4 | ) | (253.3 | ) | |||||
Cash flows from financing activities: | |||||||||
Net (repayments) borrowings on short-term borrowings | (68.5 | ) | 60.4 | ||||||
Cash paid for treasury stock | (260.0 | ) | (250.2 | ) | |||||
Cash dividends paid | (80.9 | ) | (78.6 | ) | |||||
Proceeds from long-term borrowings, net of deferred financing costs | 118.9 | 0.1 | |||||||
Repayments on long-term borrowings | (251.2 | ) | (9.4 | ) | |||||
Proceeds from exercised stock options | 108.8 | 27.9 | |||||||
Cash paid for contingent consideration on prior acquisitions | (33.2 | ) | — | ||||||
Net cash used in financing activities | (466.1 | ) | (249.8 | ) | |||||
Effect of exchange rate changes on cash and cash equivalents | (3.0 | ) | (7.7 | ) | |||||
Net increase (decrease) in cash and cash equivalents | 95.3 | (11.0 | ) | ||||||
Cash and cash equivalents at beginning of period | 309.6 | 320.6 | |||||||
Cash and cash equivalents at end of period | $ | 404.9 | $ | 309.6 | |||||
Supplemental disclosures of cash flow information: | |||||||||
Interest paid, net of amounts capitalized | $ | 30.2 | $ | 35.1 | |||||
Income taxes paid | $ | 112.1 | $ | 104.7 | |||||
Non-cash investing activities | |||||||||
Property, plant and equipment in accounts payable at end of period | $ | 13.8 | $ | 14.6 | |||||
Exchange of inventory for naming rights | $ | 3.2 | $ | — | |||||
Reconciliations of Non-GAAP Financial Measures
CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except per share amounts and percentages)
(unaudited)
Three Months Ended |
|||||||||||
(in millions, except percentages) | 2019 | 2018 | Variance % | ||||||||
$ | 1,111.5 | $ | 1,059.7 | 4.9 | % | ||||||
Less: precious metal content of sales | 9.5 | 9.7 | (2.1 | %) | |||||||
Net sales, excluding precious metal content | 1,102.0 | 1,050.0 | 5.0 | % | |||||||
Acquisition related adjustments (a) | — | 1.1 | NM | ||||||||
Non-GAAP, net sales, excluding precious metal content | 1,102.0 | 1,051.1 | 4.8 | % | |||||||
Foreign exchange impact | (1.8 | %) | |||||||||
Constant currency growth | 6.6 | % | |||||||||
Acquisitions | (1.1 | %) | |||||||||
Discontinued products | (0.7 | %) | |||||||||
Internal sales growth | 8.4 | % |
(a) Represents an adjustment to reflect deferred revenue that was eliminated under business combination accounting standards.
Three Months Ended |
Q4 2019 Growth | Three Months Ended |
|||||||||||||||||||||||||||||||||
(in millions, except percentages) | US | ROW | Total | US | ROW | Total | US | ROW | Total | ||||||||||||||||||||||||||
Net sales | $ | 393.0 | $ | 434.8 | $ | 283.7 | $ | 1,111.5 | 24.6 | % | (6.5 | %) | 1.5 | % | 4.9 | % | $ | 315.4 | $ | 464.9 | $ | 279.4 | $ | 1,059.7 | |||||||||||
Less: precious metal content of sales | 1.2 | 7.5 | 0.8 | 9.5 | 1.2 | 7.7 | 0.8 | 9.7 | |||||||||||||||||||||||||||
Net sales, excluding precious metal content | 391.8 | 427.3 | 282.9 | 1,102.0 | 24.7 | % | (6.5 | %) | 1.5 | % | 5.0 | % | 314.2 | 457.2 | 278.6 | 1,050.0 | |||||||||||||||||||
Acquisition related adjustments (a) | — | — | — | — | 1.1 | — | — | 1.1 | |||||||||||||||||||||||||||
Non-GAAP, net sales, excluding precious metal content | $ | 391.8 | $ | 427.3 | $ | 282.9 | $ | 1,102.0 | 24.3 | % | (6.5 | %) | 1.5 | % | 4.8 | % | $ | 315.3 | $ | 457.2 | $ | 278.6 | $ | 1,051.1 | |||||||||||
Foreign exchange impact | — | % | (2.9 | %) | (1.7 | %) | (1.8 | %) | |||||||||||||||||||||||||||
Constant currency growth | 24.3 | % | (3.6 | %) | 3.2 | % | 6.6 | % | |||||||||||||||||||||||||||
Acquisitions | (2.7 | %) | (0.2 | %) | (0.6 | %) | (1.1 | %) | |||||||||||||||||||||||||||
Discontinued Products | (0.5 | %) | (0.5 | %) | (1.3 | %) | (0.7 | %) | |||||||||||||||||||||||||||
Internal sales growth | 27.5 | % | (2.9 | %) | 5.1 | % | 8.4 | % |
(a) Represents an adjustment to reflect deferred revenue that was eliminated under business combination accounting standards.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except per share amounts and percentages)
(unaudited)
Year Ended |
2019 Growth | Year Ended |
|||||||||||||||||||||||||||||||||
(in millions, except percentages) | US | ROW | Total | US | ROW | Total | US | ROW | Total | ||||||||||||||||||||||||||
Net sales | $ | 1,372.9 | $ | 1,614.0 | $ | 1,042.3 | $ | 4,029.2 | 7.7 | % | (3.1 | %) | (0.4 | %) | 1.1 | % | $ | 1,274.3 | $ | 1,665.9 | $ | 1,046.1 | $ | 3,986.3 | |||||||||||
Less: precious metal content of sales | 5.7 | 32.1 | 3.3 | 41.1 | 5.1 | 28.7 | 3.4 | 37.2 | |||||||||||||||||||||||||||
Net sales, excluding precious metal content | 1,367.2 | 1,581.9 | 1,039.0 | 3,988.1 | 7.7 | % | (3.4 | %) | (0.4 | %) | 1.0 | % | 1,269.2 | 1,637.2 | 1,042.7 | 3,949.1 | |||||||||||||||||||
Acquisition related adjustments (a) | — | — | — | — | 6.4 | — | — | 6.4 | |||||||||||||||||||||||||||
Non-GAAP, net sales, excluding precious metal content | $ | 1,367.2 | $ | 1,581.9 | $ | 1,039.0 | $ | 3,988.1 | 7.2 | % | (3.4 | %) | (0.4 | %) | 0.8 | % | $ | 1,275.6 | $ | 1,637.2 | $ | 1,042.7 | $ | 3,955.5 | |||||||||||
Foreign exchange impact | (0.1 | %) | (5.3 | %) | (4.2 | %) | (3.3 | %) | |||||||||||||||||||||||||||
Constant currency growth | 7.3 | % | 1.9 | % | 3.8 | % | 4.1 | % | |||||||||||||||||||||||||||
Acquisitions | (1.3 | %) | (0.1 | %) | (0.3 | %) | (0.6 | %) | |||||||||||||||||||||||||||
Discontinued Products | (0.4 | %) | (0.8 | %) | (2.2 | %) | (1.0 | %) | |||||||||||||||||||||||||||
Internal sales growth | 9.0 | % | 2.8 | % | 6.3 | % | 5.7 | % |
(a) Represents an adjustment to reflect deferred revenue that was eliminated under business combination accounting standards.
Three Months Ended |
Q4 2019 Growth | Three Months Ended |
|||||||||||||||||||||||||
(in millions, except percentages) | Technologies & Equipment |
Consumables | Total | Technologies & Equipment |
Consumables | Total | Technologies & Equipment |
Consumables | Total | ||||||||||||||||||
Net sales | $ | 669.5 | $ | 442.0 | $ | 1,111.5 | 12.4 | % | (4.7 | %) | 4.9 | % | $ | 595.9 | $ | 463.8 | $ | 1,059.7 | |||||||||
Less: precious metal content of sales | — | 9.5 | 9.5 | — | 9.7 | 9.7 | |||||||||||||||||||||
Net sales, excluding precious metal content | 669.5 | 432.5 | 1,102.0 | 12.4 | % | (4.8 | %) | 5.0 | % | 595.9 | 454.1 | 1,050.0 | |||||||||||||||
Acquisition related adjustments (a) | — | — | — | 1.1 | — | 1.1 | |||||||||||||||||||||
Non-GAAP, net sales, excluding precious metal content | $ | 669.5 | $ | 432.5 | $ | 1,102.0 | 12.2 | % | (4.8 | %) | 4.8 | % | $ | 597.0 | $ | 454.1 | $ | 1,051.1 | |||||||||
Foreign exchange impact | (1.7 | %) | (1.7 | %) | (1.8 | %) | |||||||||||||||||||||
Constant currency growth | 13.9 | % | (3.1 | %) | 6.6 | % | |||||||||||||||||||||
Acquisitions | (1.9 | %) | — | % | (1.1 | %) | |||||||||||||||||||||
Discontinued Products | (1.4 | %) | — | % | (0.7 | %) | |||||||||||||||||||||
Internal sales growth | 17.2 | % | (3.1 | %) | 8.4 | % |
(a) Represents an adjustment to reflect deferred revenue that was eliminated under business combination accounting standards.
Year Ended |
2019 Growth | Year Ended |
|||||||||||||||||||||||||
(in millions, except percentages) | Technologies & Equipment |
Consumables | Total | Technologies & Equipment |
Consumables | Total | Technologies & Equipment |
Consumables | Total | ||||||||||||||||||
Net sales | $ | 2,283.2 | $ | 1,746.0 | $ | 4,029.2 | 5.3 | % | (4.0 | %) | 1.1 | % | $ | 2,167.7 | $ | 1,818.6 | $ | 3,986.3 | |||||||||
Less: precious metal content of sales | — | 41.1 | 41.1 | — | 37.2 | 37.2 | |||||||||||||||||||||
Net sales, excluding precious metal content | 2,283.2 | 1,704.9 | 3,988.1 | 5.3 | % | (4.3 | %) | 1.0 | % | 2,167.7 | 1,781.4 | 3,949.1 | |||||||||||||||
Acquisition related adjustments (a) | — | — | — | 6.4 | — | 6.4 | |||||||||||||||||||||
Non-GAAP, net sales, excluding precious metal content | $ | 2,283.2 | $ | 1,704.9 | $ | 3,988.1 | 5.0 | % | (4.3 | %) | 0.8 | % | $ | 2,174.1 | $ | 1,781.4 | $ | 3,955.5 | |||||||||
Foreign exchange impact | (3.5 | %) | (3.0 | %) | (3.3 | %) | |||||||||||||||||||||
Constant currency growth | 8.5 | % | (1.3 | %) | 4.1 | % | |||||||||||||||||||||
Acquisitions | (1.1 | %) | — | % | (0.6 | %) | |||||||||||||||||||||
Discontinued Products | (1.9 | %) | — | % | (1.0 | %) | |||||||||||||||||||||
Internal sales growth | 11.5 | % | (1.3 | %) | 5.7 | % |
(a) Represents an adjustment to reflect deferred revenue that was eliminated under business combination accounting standards.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except per share amounts and percentages)
(unaudited)
GAAP | NON-GAAP | |||||||||||||||||||||||||||
Three Months Ended |
Amortization of Purchased Intangible Assets | Restructuring Program Related Costs and Other Costs | Business Combination Related Costs and Fair Value Adjustments | Credit Risk and Fair Value Adjustments | Tax Impact of Non-GAAP Adjustments | Income Tax Related Adjustments | Total Non-GAAP Adjustments | Three Months Ended |
||||||||||||||||||||
$ | 1,111.5 | — | — | — | — | — | — | $ | — | $ | 1,111.5 | |||||||||||||||||
1,102.0 | — | — | — | — | — | — | — | 1,102.0 | ||||||||||||||||||||
GROSS PROFIT | 610.6 | 28.6 | 1.0 | 1.3 | — | — | — | 30.9 | 641.5 | |||||||||||||||||||
% OF |
55.4 | % | 58.2 | % | ||||||||||||||||||||||||
SG&A EXPENSES | 461.4 | (18.1 | ) | (24.1 | ) | (0.1 | ) | — | — | — | (42.3 | ) | 419.1 | |||||||||||||||
% OF |
41.9 | % | 38.0 | % | ||||||||||||||||||||||||
RESTRUCTURING AND OTHER COSTS | 12.6 | — | (12.6 | ) | — | — | — | — | (12.6 | ) | — | |||||||||||||||||
INCOME FROM OPERATIONS | 136.6 | 46.7 | 37.7 | 1.4 | — | — | — | 85.8 | 222.4 | |||||||||||||||||||
% OF |
12.4 | % | 20.2 | % | ||||||||||||||||||||||||
NET INTEREST AND OTHER EXPENSE | (0.9 | ) | — | 6.2 | (2.0 | ) | (1.2 | ) | — | — | 3.0 | 2.1 | ||||||||||||||||
PRE-TAX INCOME | 137.5 | 46.7 | 31.5 | 3.4 | 1.2 | — | — | 82.8 | 220.3 | |||||||||||||||||||
INCOME TAXES | 35.0 | — | — | — | — | 24.6 | (3.5 | ) | 21.1 | 56.1 | ||||||||||||||||||
% OF PRE-TAX INCOME | 25.5 | % | 25.5 | % | ||||||||||||||||||||||||
EARNINGS PER SHARE - DILUTED | $ | 0.46 | $ | 0.27 | $ | 0.73 | ||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except per share amounts and percentages)
(unaudited)
GAAP | NON-GAAP | ||||||||||||||||||||||||||
Three Months Ended |
Amortization of Purchased Intangible Assets | Restructuring Program Related Costs and Other Costs | Business Combination Related Costs and Fair Value Adjustments | Credit Risk and Fair Value Adjustments | Tax Impact of Non-GAAP Adjustments | Income Tax Related Adjustments | Total Non-GAAP Adjustments | Three Months Ended |
|||||||||||||||||||
$ | 1,059.7 | — | — | 1.1 | — | — | — | $ | 1.1 | $ | 1,060.8 | ||||||||||||||||
1,050.0 | — | — | 1.1 | — | — | — | 1.1 | 1,051.1 | |||||||||||||||||||
GROSS PROFIT | 524.8 | 29.5 | 14.8 | 2.6 | — | — | — | 46.9 | 571.7 | ||||||||||||||||||
% OF |
50.0 | % | 54.4 | % | |||||||||||||||||||||||
SG&A EXPENSES | 433.2 | (18.7 | ) | (15.5 | ) | (3.4 | ) | — | — | — | (37.6 | ) | 395.6 | ||||||||||||||
% OF |
41.3 | % | 37.6 | % | |||||||||||||||||||||||
RESTRUCTURING AND OTHER COSTS | 9.8 | — | (9.8 | ) | — | — | — | — | (9.8 | ) | — | ||||||||||||||||
INCOME FROM OPERATIONS | 81.8 | 48.2 | 40.1 | 6.0 | — | — | — | 94.3 | 176.1 | ||||||||||||||||||
% OF |
7.8 | % | 16.8 | % | |||||||||||||||||||||||
NET INTEREST AND OTHER EXPENSE | 4.4 | — | — | (0.2 | ) | 0.9 | — | — | 0.7 | 5.1 | |||||||||||||||||
PRE-TAX INCOME | 77.4 | 48.2 | 40.1 | 6.2 | (0.9 | ) | — | — | 93.6 | 171.0 | |||||||||||||||||
INCOME TAXES | 75.9 | — | — | — | — | 13.8 | (48.8 | ) | (35.0 | ) | 40.9 | ||||||||||||||||
% OF PRE-TAX INCOME | 98.1 | % | 23.9 | % | |||||||||||||||||||||||
EARNINGS PER SHARE - DILUTED | $ | 0.01 | $ | 0.57 | $ | 0.58 | |||||||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except per share amounts and percentages)
(unaudited)
GAAP | NON-GAAP | ||||||||||||||||||||||||||
Twelve Months Ended |
Amortization of Purchased Intangible Assets | Restructuring Program Related Costs and Other Costs | Business Combination Related Costs and Fair Value Adjustments | Credit Risk and Fair Value Adjustments | Tax Impact of Non-GAAP Adjustments | Income Tax Related Adjustments | Total Non-GAAP Adjustments | Twelve Months Ended |
|||||||||||||||||||
$ | 4,029.2 | — | — | — | — | — | — | $ | — | $ | 4,029.2 | ||||||||||||||||
3,988.1 | — | — | — | — | — | — | — | 3,988.1 | |||||||||||||||||||
GROSS PROFIT | 2,165.1 | 115.5 | 25.3 | 5.7 | — | — | — | 146.5 | 2,311.6 | ||||||||||||||||||
% OF |
54.3 | % | 58.0 | % | |||||||||||||||||||||||
SG&A EXPENSES | 1,723.5 | (74.1 | ) | (78.5 | ) | (1.4 | ) | — | — | — | (154.0 | ) | 1,569.5 | ||||||||||||||
% OF |
43.2 | % | 39.4 | % | |||||||||||||||||||||||
RESTRUCTURING AND OTHER COSTS | 80.7 | — | (80.7 | ) | — | — | — | — | (80.7 | ) | — | ||||||||||||||||
INCOME FROM OPERATIONS | 360.9 | 189.6 | 184.5 | 7.1 | — | — | — | 381.2 | 742.1 | ||||||||||||||||||
% OF |
9.1 | % | 18.6 | % | |||||||||||||||||||||||
NET INTEREST AND OTHER EXPENSE | 15.5 | — | 1.2 | (2.4 | ) | (5.3 | ) | — | — | (6.5 | ) | 9.0 | |||||||||||||||
PRE-TAX INCOME | 345.4 | 189.6 | 183.3 | 9.5 | 5.3 | — | — | 387.7 | 733.1 | ||||||||||||||||||
INCOME TAXES | 82.3 | — | — | — | — | 101.7 | (1.0 | ) | 100.7 | 183.0 | |||||||||||||||||
% OF PRE-TAX INCOME | 23.8 | % | 25.0 | % | |||||||||||||||||||||||
EARNINGS PER SHARE - DILUTED | $ | 1.17 | $ | 1.28 | $ | 2.45 | |||||||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except per share amounts and percentages)
(unaudited)
GAAP | NON-GAAP | |||||||||||||||||||||||||||||
Twelve Months Ended |
Amortization of Purchased Intangible Assets | Gain on Sale of |
Restructuring Program Related Costs and Other Costs | Business Combination Related Costs and Fair Value Adjustments | Credit Risk and Fair Value Adjustments | Tax Impact of Non-GAAP Adjustments | Income Tax Related Adjustments | Total Non-GAAP Adjustments | Twelve Months Ended |
|||||||||||||||||||||
$ | 3,986.3 | — | — | — | 6.4 | — | — | — | $ | 6.4 | $ | 3,992.7 | ||||||||||||||||||
3,949.1 | — | — | — | 6.4 | — | — | — | 6.4 | 3,955.5 | |||||||||||||||||||||
GROSS PROFIT | 2,067.8 | 119.2 | — | 21.0 | 12.6 | — | — | — | 152.8 | 2,220.6 | ||||||||||||||||||||
% OF |
52.4 | % | 56.1 | % | ||||||||||||||||||||||||||
SG&A EXPENSES | 1,719.1 | (78.7 | ) | — | (25.3 | ) | (8.7 | ) | — | — | — | (112.7 | ) | 1,606.4 | ||||||||||||||||
% OF |
43.5 | % | 40.6 | % | ||||||||||||||||||||||||||
GOODWILL IMPAIRMENT | 1,085.8 | — | — | (1,085.8 | ) | — | — | — | — | (1,085.8 | ) | — | ||||||||||||||||||
RESTRUCTURING AND OTHER COSTS | 221.0 | — | — | (221.0 | ) | — | — | — | — | (221.0 | ) | — | ||||||||||||||||||
(LOSS) INCOME FROM OPERATIONS | (958.1 | ) | 197.9 | — | 1,353.1 | 21.3 | — | — | — | 1,572.3 | 614.2 | |||||||||||||||||||
% OF |
(24.3 | %) | 15.5 | % | ||||||||||||||||||||||||||
NET INTEREST AND OTHER EXPENSE | 0.3 | — | 44.1 | — | (1.5 | ) | (14.5 | ) | — | — | 28.1 | 28.4 | ||||||||||||||||||
PRE-TAX (LOSS) INCOME | (958.4 | ) | 197.9 | (44.1 | ) | 1,353.1 | 22.8 | 14.5 | — | — | 1,544.2 | 585.8 | ||||||||||||||||||
INCOME TAXES | 52.5 | — | — | — | — | — | 130.2 | (51.5 | ) | 78.7 | 131.2 | |||||||||||||||||||
% OF PRE-TAX (LOSS) INCOME | (5.5 | %) | 22.4 | % | ||||||||||||||||||||||||||
EARNINGS PER SHARE - DILUTED | $ | (4.51 | ) | $ | 6.52 | $ | 2.01 | |||||||||||||||||||||||
Shares used in calculating diluted US GAAP net loss per share | 224.3 | |||||||||||||||||||||||||||||
Shares used in calculating diluted non-US GAAP net income per share | 226.0 |
Source: DENTSPLY SIRONA Inc.