DENTSPLY International Reports Record Results for the Third Quarter
(Thomson Reuters ONE) -
For further information contact:
Derek Leckow
Vice President
Investor Relations
(717) 849-7863
* Third quarter net sales grew 20.1% on a constant currency basis excluding
precious metals
* Earnings per share of $0.37 on a GAAP reported basis compared to $0.42 in
the prior year
* Adjusted third quarter EPS grew 10.9% to $0.51 vs. $0.46 in the prior year
period
York, PA - October 25, 2012 - DENTSPLY International Inc. (NASDAQ: XRAY) today
announced sales and earnings for the three months ended September 30, 2012. Net
sales in the third quarter of 2012 increased 12.3% to $695.7 million from $619.8
million in the third quarter of 2011. Net sales, excluding precious metals
content, of $647.1 million increased 14.8% from $563.8 million in the third
quarter of 2011. Constant currency net sales growth, excluding precious metals
content, in the third quarter was 20.1%, driven by acquisitions and internal
sales growth in each of the U.S., Europe, and Rest of World categories.
Net income attributable to DENTSPLY International for the third quarter of 2012
was $53.4 million, or $0.37 per diluted share, compared to $60.6 million, or
$0.42 per diluted share in the third quarter of 2011. On an adjusted basis,
excluding certain items, earnings increased to $0.51 per diluted share from
$0.46 per diluted share in the third quarter of 2011. A reconciliation of the
non-GAAP measure to earnings per share calculated on a GAAP basis is provided in
the attached table.
Bret Wise, Chairman and Chief Executive Officer, stated "DENTSPLY continues to
execute well in a global dental market that is relatively stable despite
challenging economic trends. We are pleased with our internal growth rate and
margin improvement for the third quarter and believe that our business overall
continues to outperform the dental market. Based on the company's performance
to date and our outlook for the remainder of the year, we are updating our full-
year adjusted earnings expectations to a range of $2.19 to $2.24 from the prior
range of $2.18 to $2.24."
Additional Information
A conference call is scheduled to begin today at 8:30 a.m. (Eastern Time). A
live webcast will be accessible via a link on DENTSPLY's web site at
www.dentsply.com. Supplemental materials for reference during the call will be
available for download in the investor relations section of DENTSPLY's web site.
In order to participate in the call, dial (888) 224-1005 for domestic calls, or
(913) 312-1453 for international calls. The Conference ID # is 6417967. At
that time, you will be able to discuss third quarter 2012 results 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 online at the DENTSPLY
web site. 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), Replay Passcode # 6417967.
DENTSPLY International Inc. is a leading manufacturer and distributor of dental
and other healthcare products. The Company believes it is the world's largest
manufacturer of professional dental products. For over 110 years, DENTSPLY's
commitment to innovation and professional collaboration has enhanced its
portfolio of branded consumables and small equipment. Headquartered in the
United States, the Company has global operations with sales in more than 120
countries. Visit www.dentsply.com for more information about DENTSPLY and its
products.
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 and medical markets, the timing, success and
market reception for our new and existing products, uncertainty with respect to
governmental actions with respect to dental and medical products, outcome of
litigation, continued support of our products by influential dental and medical
professionals, our ability to successfully integrate acquisitions, risks
associated with foreign currency exchange rates, and changes in the general
economic environment that could affect the 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
most recent 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 US GAAP, the Company
provides adjusted net income attributable to DENTSPLY International and adjusted
earnings per diluted common share. These adjusted amounts consist of US GAAP
amounts excluding, net of tax (1) acquisition related costs, (2) restructuring
and other costs, (3) amortization of purchased intangible assets, (4)
Orthodontic business continuity costs, (5) income related to credit risk
adjustments, (6) certain fair value adjustments at an unconsolidated affiliated
company, and (7) income tax related adjustments. Adjusted earnings per diluted
common share is calculated by dividing adjusted net income attributable to
DENTSPLY International by diluted weighted-average common shares outstanding.
Adjusted net income attributable to DENTSPLY International and adjusted
earnings per diluted common share are considered measures not calculated in
accordance with US GAAP, and therefore are non-US GAAP measures. These non-US
GAAP measures may differ from other companies. Income tax related adjustments
may include the impact to adjust the interim effective income tax rate to the
expected annual effective tax rate.
The Company believes that the presentation of adjusted net income attributable
to DENTSPLY International and adjusted earnings per diluted common share
provides important supplemental information to management and investors seeking
to understand the Company's financial condition and results of operations. The
non-US GAAP financial information should not be considered in isolation from, or
as a substitute for, measures of financial performance prepared in accordance
with US GAAP.
DENTSPLY INTERNATIONAL INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
Three Months Ended Nine Months Ended
September 30, September 30,
--------------------------- ------------------------------
2012 2011 2012 2011
------------- ------------- --------------- --------------
Net sales $ 695,734 $ 619,759 $ 2,175,141 $ 1,799,705
Net sales, excluding
precious metal
content 647,120 563,751 2,011,225 1,654,746
Cost of products
sold 331,619 322,111 1,010,807 887,222
------------- ------------- --------------- --------------
Gross profit 364,115 297,648 1,164,334 912,483
% of Net sales 52.3 % 48.0 % 53.5 % 50.7 %
% of Net sales,
excluding precious
metal content 56.3 % 52.8 % 57.9 % 55.1 %
Selling, general and
administrative
expenses 260,352 231,493 860,740 643,244
Restructuring and
other costs 15,097 26,353 18,862 33,849
------------- ------------- --------------- --------------
Operating income 88,666 39,802 284,732 235,390
% of Net sales 12.7 % 6.4 % 13.1 % 13.1 %
% of Net sales,
excluding precious
metal content 13.7 % 7.1 % 14.2 % 14.2 %
Net interest and
other expense 12,885 20,826 40,173 29,985
------------- ------------- --------------- --------------
Income before income
taxes 75,781 18,976 244,559 205,405
Provision for
(benefit from)
income taxes 18,960 (40,627 ) 48,550 1,042
Equity in net (loss)
income attributable
to unconsolidated
affiliated company (2,529 ) 1,597 (5,448 ) 1,690
------------- ------------- --------------- --------------
Net income 54,292 61,200 190,561 206,053
% of Net sales 7.8 % 9.9 % 8.8 % 11.4 %
% of Net sales,
excluding precious
metal content 8.4 % 10.9 % 9.5 % 12.5 %
Less: Net income
attributable to
noncontrolling
interests 928 603 3,148 2,136
------------- ------------- --------------- --------------
Net income
attributable to
DENTSPLY
International $ 53,364 $ 60,597 $ 187,413 $ 203,917
------------- ------------- --------------- --------------
% of Net sales 7.7 % 9.8 % 8.6 % 11.3 %
% of Net sales,
excluding precious
metal content 8.2 % 10.7 % 9.3 % 12.3 %
Earnings per common
share:
Basic $ 0.38 $ 0.43 $ 1.32 $ 1.44
Dilutive $ 0.37 $ 0.42 $ 1.30 $ 1.42
Cash dividends
declared per common
share $ 0.055 $ 0.050 $ 0.165 $ 0.150
Weighted average
common shares
outstanding:
Basic 141,843 141,349 141,767 141,337
Dilutive 143,884 143,395 143,885 143,578
DENTSPLY INTERNATIONAL INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
September 30, December 31,
2012 2011
--------------- --------------
Assets
Current Assets:
Cash and cash equivalents $ 56,075 $ 77,128
Accounts and notes receivable-trade, net 467,296 427,709
Inventories, net 415,922 361,762
Prepaid expenses and other current assets 189,685 146,304
--------------- --------------
Total Current Assets 1,128,978 1,012,903
Property, plant and equipment, net 602,670 591,445
Identifiable intangible assets, net 841,751 791,100
Goodwill, net 2,207,413 2,190,063
Other noncurrent assets, net 196,610 169,887
--------------- --------------
Total Assets $ 4,977,422 $ 4,755,398
--------------- --------------
Liabilities and Equity
Current liabilities $ 940,720 $ 724,073
Long-term debt 1,237,244 1,490,010
Deferred income taxes 319,834 249,822
Other noncurrent liabilities 318,757 407,342
--------------- --------------
Total Liabilities 2,816,555 2,871,247
Total DENTSPLY International Equity 2,122,071 1,848,077
Noncontrolling interests 38,796 36,074
--------------- --------------
Total Equity 2,160,867 1,884,151
--------------- --------------
Total Liabilities and Equity $ 4,977,422 $ 4,755,398
--------------- --------------
DENTSPLY INTERNATIONAL INC.
(In thousands)
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, to the non-GAAP financial measures.
Three Months Ended September
30, 2012
Percentage of Net Sales,
Operating Income Excluding Precious Metal
(Loss) Content
--------------------- ---------------------------
Operating Income $ 88,666 13.7 %
Restructuring and Other Costs 15,457 2.3 %
Amortization of Purchased
Intangible Assets 9,313 1.4 %
Orthodontics Business
Continuity Costs 110 - %
Acquisition-Related
Activities (1,893 ) (0.1 )%
--------------------- ---------------------------
Adjusted Non-GAAP Operating
Income $ 111,653 17.3 %
--------------------- ---------------------------
Three Months Ended September
30, 2011
Percentage of Net Sales,
Operating Income Excluding Precious Metal
(Loss) Content
--------------------- ---------------------------
Operating Income $ 39,802 7.1 %
Acquisition-Related
Activities 35,530 6.3 %
Restructuring and Other Costs 14,826 2.6 %
Amortization of Purchased
Intangible Assets 5,490 1.0 %
Orthodontics Business
Continuity Costs 1,321 0.2 %
--------------------- ---------------------------
Adjusted Non-GAAP Operating
Income $ 96,969 17.2 %
--------------------- ---------------------------
DENTSPLY INTERNATIONAL INC.
(In thousands)
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, to the non-GAAP financial measures.
Nine Months Ended September
30, 2012
Percentage of Net Sales,
Operating Income Excluding Precious Metal
(Loss) Content
--------------------- ---------------------------
Operating Income $ 284,732 14.2 %
Amortization of Purchased
Intangible Assets 37,359 1.8 %
Restructuring and Other Costs 20,097 1.0 %
Acquisition-Related
Activities 10,544 0.6 %
Orthodontics Business
Continuity Costs 1,071 - %
--------------------- ---------------------------
Adjusted Non-GAAP Operating
Income $ 353,803 17.6 %
--------------------- ---------------------------
Nine Months Ended September
30, 2011
Percentage of Net Sales,
Operating Income Excluding Precious Metal
(Loss) Content
--------------------- ---------------------------
Operating Income $ 235,390 14.2 %
Acquisition-Related
Activities 41,521 2.5 %
Restructuring and Other Costs 16,330 1.0 %
Amortization of Purchased
Intangible Assets 10,003 0.6 %
Orthodontics Business
Continuity Costs 2,041 0.1 %
--------------------- ---------------------------
Adjusted Non-GAAP Operating
Income $ 305,285 18.4 %
--------------------- ---------------------------
DENTSPLY INTERNATIONAL INC.
(In thousands, except per share amounts)
Earnings Summary:
The following tables present the reconciliation of reported GAAP net income
attributable to DENTSPLY International and on a per share basis to the non-
GAAP financial measures.
Three Months Ended September
30, 2012
Income Diluted
(Expense) Per Share
------------ ------------------------------
Net Income Attributable to DENTSPLY
International $ 53,364 $ 0.37
Restructuring and Other Costs, Net
of Tax 10,909 0.08
Amortization of Purchased
Intangible Assets, Net of Tax 5,159 0.04
Income Tax-Related Adjustments 4,039 0.03
Loss on Fair Value Adjustments at
an Unconsolidated Affiliated
Company, Net of Tax 1,687 0.01
Orthodontics Business Continuity
Costs, Net of Tax 70 -
Acquisition-Related Activities, Net
of Tax (1,161 ) (0.01 )
Rounding - (0.01 )
------------ ------------------------------
Adjusted Non-GAAP Net Income
Attributable to DENTSPLY
International $ 74,067 $ 0.51
------------ ------------------------------
Three Months Ended September
30, 2011
Income Diluted
(Expense) Per Share
------------ ------------------------------
Net Income Attributable to DENTSPLY
International $ 60,597 $ 0.42
Acquisition -Related Activities,
Net of Tax 36,122 0.25
Restructuring and Other Costs, Net
of Tax 9,530 0.07
Amortization of Purchased
Intangible Assets, Net of Tax 3,838 0.03
Orthodontics Business Continuity
Costs, Net of Tax 866 -
Gain on Fair Value Adjustments at
an Unconsolidated Affiliated
Company, Net of Tax (1,800 ) (0.01 )
Income Tax-Related Adjustments (42,950 ) (0.30 )
------------ ------------------------------
Adjusted Non-GAAP Net Income
Attributable to DENTSPLY
International $ 66,203 $ 0.46
------------ ------------------------------
DENTSPLY INTERNATIONAL INC.
(In thousands, except per share amounts)
Earnings Summary:
The following tables present the reconciliation of reported GAAP net income
attributable to DENTSPLY International and on a per share basis to the non-
GAAP financial measures.
Nine Months Ended September
30, 2012
Income Diluted
(Expense) Per Share
------------- ------------------------------
Net Income Attributable to
DENTSPLY International $ 187,413 $ 1.30
Amortization of Purchased
Intangible Assets, Net of Tax 25,148 0.17
Restructuring and Other Costs, Net
of Tax 14,063 0.10
Acquisition-Related Activities,
Net of Tax 6,630 0.05
Loss on Fair Value Adjustments at
an Unconsolidated Affiliated
Company, Net of Tax 5,280 0.04
Orthodontics Business Continuity
Costs, Net of Tax 692 -
Income Tax-Related Adjustments (1,375 ) (0.01 )
------------- ------------------------------
Adjusted Non-GAAP Net Income
Attributable to DENTSPLY
International $ 237,851 $ 1.65
------------- ------------------------------
Nine Months Ended September
30, 2011
Income Diluted
(Expense) Per Share
------------- ------------------------------
Net Income Attributable to
DENTSPLY International $ 203,917 $ 1.42
Acquisition-Related Activities,
Net of Tax 42,363 0.30
Restructuring and Other Costs, Net
of Tax 10,403 0.07
Amortization of Purchased
Intangible Assets, Net of Tax 6,844 0.05
Orthodontics Business Continuity
Costs, Net of Tax 1,308 0.01
Gain on Fair Value Adjustments at
an Unconsolidated Affiliated
Company, Net of Tax (2,059 ) (0.01 )
Credit Risk Adjustment to
Outstanding Derivatives, Net of
Tax (783 ) (0.01 )
Income Tax-Related Adjustments (43,733 ) (0.31 )
------------- ------------------------------
Adjusted Non-GAAP Net Income
Attributable to DENTSPLY
International $ 218,260 $ 1.52
------------- ------------------------------
DENTSPLY INTERNATIONAL INC.
(In thousands, except per share amounts)
Operating Tax Rate
Summary:
The following tables present the reconciliation of reported GAAP effective tax
rate as a percentage of income before income taxes to the non-GAAP financial
measure.
Three Months Ended
September 30, 2012
Pre-tax Income Tax Benefit Percentage of Pre-
Income (Expense) Tax Income
------------- --------------------- -------------------
As Reported - GAAP
Operating Results $ 75,782 $ (18,961 ) 25.0 %
Restructuring and Other
Costs 15,458 (4,549 )
Amortization of
Purchased Intangible
Assets 9,313 (4,154 )
Orthodontics Business
Continuity Costs 110 (40 )
Loss on Fair Value
Adjustments at an
Unconsolidated
Affiliated Company (407 ) 123
Acquisition-Related
Activities (1,893 ) 732
Income Tax-Related
Adjustments - 4,041
------------- --------------------- -------------------
As Adjusted - Non-GAAP
Operating Results $ 98,363 $ (22,808 ) 23.2 %
------------- ---------------------
Three Months Ended
September 30, 2011
Pre-tax Income Tax Benefit Percentage of Pre-
Income (Expense) Tax Income
------------- --------------------- -------------------
As Reported - GAAP
Operating Results $ 18,976 $ 40,627 (214.1 )%
Acquisition-Related
Activities 47,558 (11,436 )
Restructuring and Other
Costs 14,825 (5,136 )
Amortization of
Purchased Intangible
Assets 5,490 (1,652 )
Orthodontics Business
Continuity Costs 1,322 (456 )
Gain on Fair Value
Adjustments at an
Unconsolidated
Affiliated Company (393 ) 119
Income Tax-Related
Adjustments - (42,950 )
------------- --------------------- -------------------
As Adjusted - Non-GAAP
Operating Results $ 87,778 $ (20,884 ) 23.8 %
------------- ---------------------
DENTSPLY INTERNATIONAL INC.
(In thousands, except per share amounts)
Operating Tax Rate
Summary:
The following tables present the reconciliation of reported GAAP effective tax
rate as a percentage of income before income taxes to the non-GAAP financial
measure.
Nine Months Ended
September 30, 2012
Pre-tax Income Tax Benefit Percentage of Pre-
Income (Expense) Tax Income
------------- --------------------- -------------------
As Reported - GAAP
Operating Results $ 244,559 $ (48,550 ) 19.9 %
Amortization of
Purchased Intangible
Assets 37,359 (12,211 )
Restructuring and Other
Costs 20,098 (6,035 )
Acquisition-Related
Activities 10,544 (3,914 )
Orthodontics Business
Continuity Costs 1,071 (379 )
Loss on Fair Value
Adjustments at an
Unconsolidated
Affiliated Company (229 ) 69
Income Tax-Related
Adjustments - (1,375 )
------------- --------------------- -------------------
As Adjusted - Non-GAAP
Operating Results $ 313,402 $ (72,395 ) 23.1 %
------------- ---------------------
Nine Months Ended
September 30, 2011
Pre-tax Income Tax Benefit Percentage of Pre-
Income (Expense) Tax Income
------------- --------------------- -------------------
As Reported - GAAP
Operating Results $ 205,405 $ (1,042 ) 0.5 %
Acquisition-Related
Activities 53,947 (11,971 )
Restructuring and Other
Costs 16,331 (5,769 )
Amortization of
Purchased Intangible
Assets 10,003 (3,159 )
Orthodontics Business
Continuity Costs 2,041 (733 )
Gain on Fair Value
Adjustments at an
Unconsolidated
Affiliate Company (392 ) 119
Credit Risk Adjustment
to Outstanding
Derivatives (1,275 ) 492
Income Tax-Related
Adjustments - (43,733 )
------------- --------------------- -------------------
As Adjusted - Non-GAAP
Operating Results $ 286,060 $ (65,796 ) 23.0 %
------------- ---------------------
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(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: DENTSPLY International Inc. via Thomson Reuters ONE
[HUG#1652156]
Unternehmensinformation / Kurzprofil:
Datum: 25.10.2012 - 13:01 Uhr
Sprache: Deutsch
News-ID 196334
Anzahl Zeichen: 35389
contact information:
Town:
York, Pennsylvania
Kategorie:
Business News
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