SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
----------------------------------------------
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report April 25, 2005
(Date of earliest event reported)
DENTSPLY INTERNATIONAL INC
(Exact name of Company as specified in charter)
Delaware 0-16211 39-1434669
(State of Incorporation) (Commission (IRS Employer
File Number) Identification No.)
221 West Philadelphia Street, York, Pennsylvania 17405
(Address of principal executive offices) (Zip Code)
(717) 845-7511
(Company's telephone number including area code)
Item 2.02. - Results of Operations and Financial Condition
The following information is furnished pursuant to Item 2.02,
"Results of Operations and Financial Condition."
On April 25, 2005, the Company issued a press release
disclosing its first quarter 2005 sales and earnings. This
earnings release references net sales excluding precious metal
content, which could be considered a measure not calculated in
accordance with generally accepted accounting principles (a
non-GAAP measure). Due to the fluctuations of precious metal
prices and because the precious metal content of the Company's
sales is largely a pass-through to customers and has minimal
effect on earnings, the Company reports sales both with and
without precious metal content to show the Company's performance
independent of precious metal price volatility and to enhance
comparability of performance between periods. A copy of the
Company's press release is attached hereto as Exhibit (99.1) and
is hereby incorporated by reference.
Item 9.01. Financial Statements and Exhibits
(a) Financial Statements - Not applicable.
(b) Exhibits:
99.1 The Dentsply International Inc. first quarter 2005 sales
and earnings release issued April 25, 2005 as referenced
in Item 2.02.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Company has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
DENTSPLY INTERNATIONAL INC
(Company)
/s/William R. Jellison
William R. Jellison
Senior Vice President and
Chief Financial Officer
Date: April 26, 2005
NEWS
For Further
Information
Contact:
William R. Jellison FOR IMMEDIATE RELEASE
Senior Vice President and
Chief Financial Officer
(717) 849-4243
DENTSPLY International Inc.
Reports First Quarter 2005 Sales and Earnings
York, PA - April 25, 2005 -- DENTSPLY International Inc.
(NASDAQ-XRAY) today announced sales and earnings for the quarter
ended March 31, 2005. Net sales decreased 1.8% to $407.0 million
compared to $414.4 million reported for the first quarter of
2004. Net sales, excluding precious metal content, increased
3.0% in the first quarter of 2005. Sales, in the first quarter
of 2005, were negatively affected by the implementation of
changes in reimbursement for dental procedures in Germany,
however, the balance of the world experienced positive internal
growth.
Net income from continuing operations for the first quarter of
2005 was $49.0 million, or $.60 per diluted share, an increase of
7.1% compared to income from continuing operations of $45.8
million, or $.56 per diluted share in the first quarter of 2004.
Gary Kunkle, Vice Chairman and Chief Executive Officer, commented
that, "The remarkably slow implementation of the dental reform
within Germany has negatively impacted DENTSPLY's first quarter
sales and earnings growth. Both patient confusion and
significant delays in insurance claim processing associated with
the reform has had negative repercussions throughout the German
dental market, impacting the prosthetics market, (the dental lab
industry) the hardest. We do believe, however, that there will be
continued improvement throughout the year as these reforms are
better understood and integrated."
Mr. Kunkle also stated, "Outside of Germany, our growth remains
encouraging, driven by new product introduction and our
initiatives to improve sales force execution. We had the
strongest quarterly growth in the United States that we have
experienced since 2002. We are also very pleased with the
continued growth in acceptance of Oraqix, our new needle-free
local anesthetic for scaling and root planing procedures.
Additionally, Dentsply has received approval of our new
anesthetic manufacturing facility by the regulatory agencies for
the U.K. and Australia, and has recently begun shipping to these
regions. These positive trends along with other initiatives give
us confidence in maintaining our earnings guidance of $2.59 -
$2.63 for 2005."
DENTSPLY will hold a conference call on Tuesday, April 26, 2005
at 8:30 AM Eastern Time. To access the call, dial 877-885-5820
(for domestic calls) and 706-643-9578 (for international calls).
Conference I.D.: 4669372. This conference call will be broadcast
live on the Internet at www.dentsply.com. An audio replay of the
conference call will be available for two weeks. To access the
replay, please dial (800) 642-1687 (for domestic calls) and (706)
645-9291 (for international calls).
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 injectible anesthetics,
impression materials, orthodontic appliances, dental cutting
instruments and dental implants. 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.
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, 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.
DENTSPLY INTERNATIONAL INC.
CONSOLIDATED STATEMENTS OF INCOME
(IN THOUSANDS EXCEPT PER SHARE DATA)
THREE MONTHS ENDED
MARCH 31,
--------------------------------
2005 2004
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NET SALES $ 406,975 $ 414,359
NET SALES - Ex Precious Metals 369,336 358,589
COST OF PRODUCTS SOLD 198,034 210,467
GROSS PROFIT 208,941 203,892
% OF NET SALES 51.3% 49.2%
% OF NET SALES - Ex Precious Metals 56.6% 56.9%
SELLING, GENERAL &
ADMINISTRATIVE EXPENSES 138,548 133,062
RESTRUCTURING COSTS 268 724
--------- ---------
INCOME FROM OPERATIONS 70,125 70,106
% OF NET SALES 17.2% 16.9%
% OF NET SALES - Ex Precious Metals 19.0% 19.6%
NET INTEREST AND OTHER (INCOME) EXPENSE (225) 5,496
--------- ---------
PRE-TAX INCOME 70,350 64,610
INCOME TAXES 21,301 18,842
--------- ---------
INCOME FROM CONTINUING OPERATIONS 49,049 45,768
% OF NET SALES 12.1% 11.0%
% OF NET SALES - Ex Precious Metals 13.3% 12.8%
INCOME FROM DISCONTINUED OPERATIONS,
NET OF TAX (INCLUDING GAIN ON SALE IN 2004 OF $43,031) -- 43,064
--------- ---------
NET INCOME $ 49,049 $ 88,832
========= =========
EARNINGS PER SHARE - BASIC:
CONTINUING OPERATIONS $ 0.61 $ 0.57
DISCONTINUED OPERATIONS -- 0.54
--------- ---------
TOTAL EARNINGS PER SHARE $ 0.61 $ 1.11
========= =========
EARNINGS PER SHARE - DILUTIVE:
CONTINUING OPERATIONS $ 0.60 $ 0.56
DISCONTINUED OPERATIONS -- 0.53
--------- ---------
TOTAL EARNINGS PER SHARE $ 0.60 $ 1.09
========= =========
DIVIDENDS PER SHARE $ 0.0600 $ 0.0525
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING
-BASIC 80,703 79,922
-DILUTIVE 82,289 81,501
DENTSPLY INTERNATIONAL INC.
CONDENSED BALANCE SHEETS
(IN THOUSANDS)
MARCH 31, DECEMBER 31,
2005 2004
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ASSETS
CURRENT ASSETS:
CASH AND CASH EQUIVALENTS $ 436,702 $ 506,369
ACCOUNTS AND NOTES RECEIVABLE-TRADE, NET 251,259 238,873
INVENTORIES, NET 224,091 213,709
OTHER CURRENT ASSETS 113,640 97,458
TOTAL CURRENT ASSETS 1,025,692 1,056,409
PROPERTY,PLANT AND EQUIPMENT, NET 396,790 407,527
GOODWILL, NET 977,496 996,262
IDENTIFIABLE INTANGIBLES ASSETS, NET 246,202 258,084
OTHER NONCURRENT ASSETS, NET 50,237 79,863
TOTAL ASSETS $2,696,417 $2,798,145
LIABILITIES AND STOCKHOLDERS' EQUITY:
CURRENT LIABILITIES $ 393,418 $ 404,607
LONG-TERM DEBT 700,900 779,940
OTHER LIABILITIES 111,356 110,829
DEFERRED INCOME TAXES 56,338 58,196
---------- ----------
TOTAL LIABILITIES 1,262,012 1,353,572
MINORITY INTEREST IN CONSOLIDATED SUBSIDIARIES 587 600
STOCKHOLDERS' EQUITY 1,433,818 1,443,973
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $2,696,417 $2,798,145