DENTSPLY International Reports Record Third Quarter 2013 Results
(Thomson Reuters ONE) -
* Third quarter adjusted earnings per diluted share increased 12% to $0.57
compared to $0.51
* Adjusted operating margin expanded 60 basis points to 17.9% from 17.3% in
the prior year third quarter
* Operating cash flow improved by 31% to $126 million for the third quarter
and grew 28% to $258 million through nine months
York, PA - October 29, 2013 - DENTSPLY International Inc. (NASDAQ: XRAY) today
announced record sales and earnings for the three months ended September
30, 2013.
Net sales in the third quarter of 2013 grew 1.2% to $704.0 million compared to
$695.7 million in the third quarter of 2012. Excluding precious metals content,
net sales in the third quarter of 2013 of $669.4 million grew 3.4% from $647.1
million in the third quarter of 2012. Constant currency net sales growth,
excluding precious metals content, in the third quarter was 2.7%, reflecting
strong internal growth in the U.S. and Rest of World geographic regions and
continued slightly positive internal growth in Europe.
Net income attributable to DENTSPLY International for the third quarter of 2013
was $79.9 million, or $0.55 per diluted share, compared to $53.4 million, or
$0.37 per diluted share in the third quarter of 2012. On an adjusted basis,
excluding certain items, earnings grew 12% to $0.57 per diluted share for the
third quarter of 2013 from $0.51 in the same period in 2012. A reconciliation
of the US GAAP measure to earnings per share calculated on a non-US GAAP basis
is provided in the attached table.
DENTSPLY's Chairman and Chief Executive Officer Bret Wise commented, "DENTSPLY
made solid progress in the third quarter, achieving growth in each major
geographic region and in each of our principal product categories. This
growth, combined with strong improvement in adjusted operating margins and lower
interest costs, drove record earnings for the third quarter. Market conditions
are generally consistent with what we had anticipated earlier in the year, and
thus we are maintaining our expectations for fiscal 2013 adjusted earnings per
diluted share in the range of $2.33 to $2.38."
Additional Information
A conference call is scheduled to begin today at 8:30 a.m. (Eastern Time).
Supplemental materials for reference during the call will be available for
download in the investor relations section of DENTSPLY's web site, at
www.dentsply.com.
A live webcast will be accessible via a link on DENTSPLY's web site at
www.dentsply.com. In order to participate in the call, dial (877) 874-1588 for
domestic calls, or (719) 325-4772 for international calls. The Conference ID #
is 7195173. At that time, you will be able to discuss third quarter 2013
results with DENTSPLY's Chairman and Chief Executive Officer, Bret Wise,
President and Chief Financial Officer, Chris Clark, and Executive Vice President
and Chief Operating Officer, Jim Mosch.
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 # 7195173
DENTSPLY International Inc. is a leading manufacturer and distributor of dental
and other consumable medical device products. The Company believes it is the
world's largest manufacturer of consumable dental products for the professional
dental market. 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 and/or governmental enforcement actions, volatility in the capital
markets or changes in our credit ratings, continued support of our products by
influential dental and medical professionals, our ability to successfully
integrate acquisitions, risks associated with foreign currency exchange rates,
risks associated with our competitors' introduction of generic or private label
products, our ability to accurately predict dealer and customer inventory
levels, our ability to successfully realize the benefits of any cost reduction
or restructuring efforts, our ability to obtain a supply of certain finished
goods and raw materials from third parties and changes in the general economic
environment that could affect the business. Changes in such assumptions or
factors could produce significantly different results.
For additional information regarding the factors that may cause actual results
to differ materially from these forward-looking statements, 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-US 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. The Company discloses adjusted net income
attributable to DENTSPLY International to allow investors to evaluate the
performance of the Company's operations exclusive of certain items that impact
the comparability of results from period to period and certain large non-cash
charges related to purchased intangible assets. The Company believes that this
information is helpful in understanding underlying operating trends and cash
flow generation. The adjusted net income attributable to DENTSPLY International
consists of net income attributable to DENTSPLY International adjusted to
exclude the impact of the following:
(1) Acquisition related costs. These adjustments include costs related to
integrating recently acquired businesses and specific costs related to the
consummation of the acquisition process. These costs 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 and other costs, including legal settlements. These
adjustments include both costs and income that 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. Following
a significant acquisition in 2011, the Company began recording large non-cash
charges related to the values attributed to purchased intangible assets. These
charges have been excluded from adjusted net income attributed to DENTSPLY
International to allow investors to evaluate and understand operating trends
excluding these large non-cash charges.
(4) Income related to credit risk and fair value adjustments. These adjustments
include both the cost and income impacts of adjustments in certain assets and
liabilities 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) Certain fair value adjustments related to an unconsolidated affiliated
company. This adjustment represents the fair value adjustment of the
unconsolidated affiliated company's convertible debt instrument held by the
Company. The affiliate is accounted for under the equity method of accounting.
The fair value adjustment is driven by open market pricing of the affiliate's
equity instruments, which has a high degree of variability and may not be
indicative of the operating performance of the affiliate or the Company.
(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. 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 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 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,
--------------------------- ------------------------------
2013 2012 2013 2012
------------- ------------- --------------- --------------
Net sales $ 704,018 $ 695,734 $ 2,197,112 $ 2,175,141
Net sales, excluding
precious metal content 669,425 647,120 2,058,029 2,011,225
Cost of products sold 327,601 331,619 1,017,539 1,010,807
------------- ------------- --------------- --------------
Gross profit 376,417 364,115 1,179,573 1,164,334
% of Net sales 53.5 % 52.3 % 53.7 % 53.5 %
% of Net sales,
excluding precious
metal content 56.2 % 56.3 % 57.3 % 57.9 %
Selling, general and
administrative
expenses 269,165 260,352 852,763 860,740
Restructuring and
other costs 2,231 15,097 5,065 18,862
------------- ------------- --------------- --------------
Operating income 105,021 88,666 321,745 284,732
% of Net sales 14.9 % 12.7 % 14.6 % 13.1 %
% of Net sales,
excluding precious
metal content 15.7 % 13.7 % 15.6 % 14.2 %
Net interest and other
expense 10,885 12,885 40,337 40,173
------------- ------------- --------------- --------------
Income before income
taxes 94,136 75,781 281,408 244,559
Provision for income
taxes 13,187 18,960 39,599 48,550
Equity in net (loss)
earnings of
unconsolidated
affiliated company (83 ) (2,529 ) 320 (5,448 )
------------- ------------- --------------- --------------
Net income 80,866 54,292 242,129 190,561
% of Net sales 11.5 % 7.8 % 11.0 % 8.8 %
% of Net sales,
excluding precious
metal content 12.1 % 8.4 % 11.8 % 9.5 %
Less: Net income
attributable to
noncontrolling
interests 1,015 928 3,366 3,148
------------- ------------- --------------- --------------
Net income
attributable to
DENTSPLY International $ 79,851 $ 53,364 $ 238,763 $ 187,413
------------- ------------- --------------- --------------
% of Net sales 11.3 % 7.7 % 10.9 % 8.6 %
% of Net sales,
excluding precious
metal content 11.9 % 8.2 % 11.6 % 9.3 %
Earnings per common
share:
Basic $ 0.56 $ 0.38 $ 1.67 $ 1.32
Dilutive $ 0.55 $ 0.37 $ 1.65 $ 1.30
Cash dividends
declared per common
share $ 0.0625 $ 0.0550 $ 0.1875 $ 0.1650
Weighted average
common shares
outstanding:
Basic 142,421 141,843 142,705 141,767
Dilutive 144,698 143,884 144,952 143,885
DENTSPLY INTERNATIONAL INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
September 30, December 31,
2013 2012
--------------- --------------
Assets
Current Assets:
Cash and cash equivalents $ 50,658 $ 80,132
Accounts and notes receivable-trade, net 502,370 442,412
Inventories, net 448,277 402,940
Prepaid expenses and other current assets 151,840 185,612
--------------- --------------
Total Current Assets 1,153,145 1,111,096
Property, plant and equipment, net 628,509 614,705
Identifiable intangible assets, net 800,470 830,642
Goodwill, net 2,218,136 2,210,953
Other noncurrent assets, net 209,719 204,901
--------------- --------------
Total Assets $ 5,009,979 $ 4,972,297
--------------- --------------
Liabilities and Equity
Current liabilities $ 777,561 $ 927,780
Long-term debt 1,164,794 1,222,035
Deferred income taxes 226,668 232,641
Other noncurrent liabilities 361,938 340,398
--------------- --------------
Total Liabilities 2,530,961 2,722,854
Total DENTSPLY International Equity 2,438,441 2,208,698
Noncontrolling interests 40,577 40,745
--------------- --------------
Total Equity 2,479,018 2,249,443
--------------- --------------
Total Liabilities and Equity $ 5,009,979 $ 4,972,297
--------------- --------------
DENTSPLY INTERNATIONAL INC.
(In thousands)
Supplemental Summary Cash Flow Information:
Nine Months Ended September 30, 2013 and 2012
Nine Months Ended
September 30,
2013 2012
------------- ------------
Net Cash Provided by Operating Activities $ 258,266 $ 202,065
------------- ------------
Net Cash Used in Investing Activities $ 161,891 $ 80,300
------------- ------------
Net Cash Used in Financing Activities $ 124,650 $ 145,585
------------- ------------
Depreciation $ 61,545 $ 59,509
------------- ------------
Amortization $ 34,700 $ 37,289
------------- ------------
Capital Expenditures $ 73,500 $ 64,859
------------- ------------
Cash Dividends Paid $ 25,895 $ 23,561
------------- ------------
DENTSPLY INTERNATIONAL INC.
(In thousands)
Operating Income Summary:
The following tables present the reconciliation of reported US GAAP
operating income in total and on a percentage of net sales, excluding
precious metal content, to the non-US GAAP financial measures.
Three Months Ended September
30, 2013
Percentage of Net Sales,
Operating Income Excluding Precious Metal
(Loss) Content
--------------------- ----------------------------
Operating Income $ 105,021 15.7 %
Amortization of Purchased
Intangible Assets 11,237 1.7 %
Restructuring and Other Costs,
including Legal Settlements 2,285 0.3 %
Acquisition-Related Activities 1,173 0.2 %
--------------------- ----------------------------
Adjusted Non-US GAAP Operating
Income $ 119,716 17.9 %
--------------------- ----------------------------
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 2.4 %
Amortization of Purchased
Intangible Assets 9,313 1.4 %
Orthodontic Business
Continuity Costs 110 - %
Acquisition-Related Activities (1,893 ) (0.2 )%
--------------------- ----------------------------
Adjusted Non-US GAAP Operating
Income $ 111,653 17.3 %
--------------------- ----------------------------
DENTSPLY INTERNATIONAL INC.
(In thousands)
Operating Income Summary:
The following tables present the reconciliation of reported US GAAP
operating income in total and on a percentage of net sales, excluding
precious metal content, to the non-US GAAP financial measures.
Nine Months Ended September
30, 2013
Percentage of Net Sales,
Operating Income Excluding Precious Metal
(Loss) Content
--------------------- ----------------------------
Operating Income $ 321,745 15.6 %
Amortization of Purchased
Intangible Assets 34,652 1.7 %
Restructuring and Other Costs,
including Legal Settlements 5,343 0.3 %
Acquisition-Related Activities 4,442 0.2 %
--------------------- ----------------------------
Adjusted Non-US GAAP Operating
Income $ 366,182 17.8 %
--------------------- ----------------------------
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 1.9 %
Restructuring and Other Costs 20,097 1.0 %
Acquisition-Related Activities 10,544 0.5 %
Orthodontics Business
Continuity Costs 1,071 - %
--------------------- ----------------------------
Adjusted Non-US GAAP Operating
Income $ 353,803 17.6 %
--------------------- ----------------------------
DENTSPLY INTERNATIONAL INC.
(In thousands, except per share amounts)
Earnings Summary:
The following tables present the reconciliation of reported US GAAP net income
attributable to DENTSPLY International and on a per common share basis to the
non-US GAAP financial measures.
Three Months Ended September
30, 2013
Net Per Diluted
Income Common Share
------------ -------------------------------
Net Income Attributable to DENTSPLY
International $ 79,851 $ 0.55
Amortization of Purchased Intangible
Assets, Net of Tax 7,851 0.06
Restructuring and Other Costs,
including Legal Settlements, Net of
Tax 1,961 0.01
Acquisition Related Activities, Net
of Tax 744 0.01
Credit Risk and Fair Value
Adjustments to Outstanding
Derivatives, Net of Tax (488 ) -
Gain on Fair Value Adjustments
related to an Unconsolidated
Affiliated Company, Net of Tax (829 ) (0.01 )
Income Tax-Related Adjustments (6,882 ) (0.05 )
------------ -------------------------------
Adjusted Non-US GAAP Net Income
Attributable to DENTSPLY
International $ 82,208 $ 0.57
------------ -------------------------------
Three Months Ended September
30, 2012
Net Per Diluted
Income Common 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
related to 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-US GAAP Net Income
Attributable to DENTSPLY
International $ 74,067 $ 0.51
------------ -------------------------------
DENTSPLY INTERNATIONAL INC.
(In thousands, except per share amounts)
Earnings Summary:
The following tables present the reconciliation of reported US GAAP net income
attributable to DENTSPLY International and on a per common share basis to the
non-US GAAP financial measures.
Nine Months Ended September 30, 2013
Net Per Diluted
Income Common Share
------------- ------------------------------
Net Income Attributable to DENTSPLY
International $ 238,763 $ 1.65
Amortization of Purchased Intangible
Assets, Net of Tax 24,229 0.17
Restructuring and Other Costs,
including Legal Settlements, Net of
Tax 4,462 0.03
Acquisition Related Activities, Net
of Tax 2,843 0.02
Credit Risk and Fair Value
Adjustments to Outstanding
Derivatives, Net of Tax 2,702 0.02
Gain on Fair Value Adjustments
related to an Unconsolidated
Affiliated Company, Net of Tax (1,347 ) (0.01 )
Income Tax-Related Adjustments (18,388 ) (0.13 )
------------- ------------------------------
Adjusted Non-US GAAP Net Income
Attributable to DENTSPLY
International $ 253,264 $ 1.75
------------- ------------------------------
Nine Months Ended September 30, 2012
Net Per Diluted
Income Common 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
related to 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-US GAAP Net Income
Attributable to DENTSPLY
International $ 237,851 $ 1.65
------------- ------------------------------
DENTSPLY INTERNATIONAL INC.
(In thousands)
Operating Tax Rate
Summary:
The following tables present the reconciliation of reported US GAAP
effective tax rate as a percentage of income before income taxes to the
non-US GAAP financial measure.
Three Months Ended
September 30, 2013
Pre-tax Income Tax Benefit Percentage of Pre-
Income (Expense) Tax Income
------------- ---------------------- --------------------
As Reported - US GAAP
Operating Results $ 94,136 $ (13,187 ) 14.0 %
Amortization of
Purchased Intangible
Assets 11,237 (3,386 )
Restructuring and Other
Costs, including Legal
Settlements 2,285 (324 )
Acquisition-Related
Activities 1,173 (429 )
Gain on Fair Value
Adjustments related to
an Unconsolidated
Affiliated Company (8 ) 2
Credit Risk and Fair
Value Adjustments to
Outstanding Derivatives (794 ) 306
Income Tax-Related
Adjustments - (6,882 )
------------- ---------------------- --------------------
As Adjusted - Non-US
GAAP Operating Results $ 108,029 $ (23,900 ) 22.1 %
------------- ----------------------
Three Months Ended
September 30, 2012
Pre-tax Income Tax Benefit Percentage of Pre-
Income (Expense) Tax Income
------------- ---------------------- --------------------
As Reported - US GAAP
Operating Results $ 75,781 $ (18,960 ) 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 )
Gain on Fair Value
Adjustments related to
an Unconsolidated
Affiliated Company (407 ) 123
Acquisition-Related
Activities (1,893 ) 732
Income Tax-Related
Adjustments - 4,039
------------- ---------------------- --------------------
As Adjusted - Non-US
GAAP Operating Results $ 98,362 $ (22,809 ) 23.2 %
------------- ----------------------
DENTSPLY INTERNATIONAL INC.
(In thousands)
Operating Tax Rate
Summary:
The following tables present the reconciliation of reported US GAAP
effective tax rate as a percentage of income before income taxes to the
non-US GAAP financial measure.
Nine Months Ended
September 30, 2013
Pre-tax Income Tax Benefit Percentage of Pre-
Income (Expense) Tax Income
------------- ---------------------- --------------------
As Reported - US GAAP
Operating Results $ 281,408 $ (39,599 ) 14.1 %
Amortization of
Purchased Intangible
Assets 34,652 (10,423 )
Restructuring and Other
Costs, including Legal
Settlements 5,343 (881 )
Acquisition-Related
Activities 4,442 (1,599 )
Credit Risk and Fair
Value Adjustments to
Outstanding Derivatives 4,401 (1,699 )
Gain on Fair Value
Adjustments related to
an Unconsolidated
Affiliated Company (20 ) 6
Income Tax-Related
Adjustments - (18,388 )
------------- ---------------------- --------------------
As Adjusted - Non-US
GAAP Operating Results $ 330,226 $ (72,583 ) 22.0 %
------------- ----------------------
Nine Months Ended
September 30, 2012
Pre-tax Income Tax Benefit Percentage of Pre-
Income (Expense) Tax Income
------------- ---------------------- --------------------
As Reported - US 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 related to
an Unconsolidated
Affiliated Company (229 ) 69
Income Tax-Related
Adjustments - (1,375 )
------------- ---------------------- --------------------
As Adjusted - Non-US
GAAP Operating Results $ 313,402 $ (72,395 ) 23.1 %
------------- ----------------------
For further information contact:
Derek Leckow
Vice President
Investor Relations
(717) 849-7863
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(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#1738744]
Unternehmensinformation / Kurzprofil:
Datum: 29.10.2013 - 12:01 Uhr
Sprache: Deutsch
News-ID 310418
Anzahl Zeichen: 40898
contact information:
Town:
York, Pennsylvania
Kategorie:
Business News
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