YORK, Pa., Oct. 31, 2007 (PRIME NEWSWIRE) -- DENTSPLY International Inc. (Nasdaq:XRAY) today announced record sales and earnings for the three months ended September 30, 2007.
FINANCIAL RESULTS
Three Months Ended September 30, 2007
Net sales in the third quarter of 2007 increased 12.0% to $488.1 million compared to $435.7 million reported for the third quarter of 2006. Net sales, without precious metal content, increased 12.8% to $445.3 million in the third quarter of 2007, compared to $394.8 million in the same period in 2006. Net sales without precious metal content, in the third quarter of 2007, reflects strong international sales, recent acquisitions, and the strength of international currencies, especially the Euro and the Swiss Franc. Sales of specialty products, including implants, endodontic, and orthodontic products, all enjoyed double-digit internal growth in the period.
Net income for the third quarter of 2007 was $65.7 million, or $0.42 per diluted share, an increase of 35.5% compared to $0.31 per diluted share in the third quarter of 2006. Net income in the third quarter of 2007 was reduced by restructuring and other costs, net of tax, of $3.0 million ($0.02 per diluted share), and was increased by net income tax adjustments of $7.8 million ($0.05 per diluted share). The third quarter of 2006 was increased by restructuring benefits net of tax, of $0.6 million, and was reduced by income tax adjustments of $3.4 million ($0.02 per diluted share).
Earnings on a non-GAAP basis, (excluding restructuring and other costs, and income tax-related adjustments), were $61.0 million or $0.39 per diluted share in the third quarter of 2007 compared to $52.2 million or $0.33 per diluted share in the third quarter of 2006. This represents an 18.2% increase in earnings per diluted share on an adjusted non-GAAP basis. For a reconciliation of GAAP and non-GAAP measures, see the attached table.
Bret Wise, Chairman and Chief Executive Officer, stated "We are pleased with our results in 2007 and believe that our broad product mix, focused on an attractive global dental market, positions us well for the future. We are seeing strength across many of our businesses, particularly in our international operations and our specialty businesses, including implants, orthodontics and endodontics. Our overall growth profile is also beginning to benefit from increased acquisition activity and strategic reinvestment of our strong cash flow generation."
Mr. Wise also commented that, "Given the results year-to-date, we are pleased to once again increase our earnings guidance for the full year 2007 to $1.62 - $1.66, from our previous guidance of $1.60 - $1.64 per diluted share, excluding income tax-related adjustments, and restructuring and other costs."
ADDITIONAL INFORMATION
A conference call has been scheduled for Thursday, November 1, 2007 at 8:30 AM Eastern Time. A live broadcast is available through Shareholder.com by accessing DENTSPLY's website at www.dentsply.com. The Conference ID # is 6349635. In order to participate in the call, dial (888) 221-9576 (for domestic calls) and (913) 312-1483 (for international calls). At that time, you will be able to discuss the Third Quarter Earnings with DENTSPLY's Management.
An on-line rebroadcast, as well as a transcript of the conference call will be available to the public following the conference call at the DENTSPLY website: www.dentsply.com. A replay will be available for one week following the conference call at (888) 203-1112 (for domestic calls) and (719) 457-0820 (for international calls), Passcode # 6349635.
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.primenewswire.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
DENTSPLY believes that the non-GAAP financial information provided in this release may be useful to investors for comparison purposes because the Company has historically provided similar information. 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 INCOME
(IN THOUSANDS EXCEPT PER SHARE DATA)
THREE MONTHS ENDED NINE MONTHS ENDED
September 30, September 30,
-------------------- ------------------------
2007 2006 2007 2006
--------- --------- ----------- -----------
NET SALES $ 488,103 $ 435,725 $ 1,468,329 $ 1,339,165
NET SALES - Ex-Precious
Metals 445,332 394,845 1,330,706 1,201,784
COST OF PRODUCTS SOLD 235,113 209,814 700,277 650,964
GROSS PROFIT 252,990 225,911 768,052 688,201
% OF NET SALES 51.8% 51.8% 52.3% 51.4%
% OF NET SALES -
Ex-Precious Metals 56.8% 57.2% 57.7% 57.3%
SELLING, GENERAL &
ADMINISTRATIVE EXPENSES 165,708 148,521 501,869 446,878
RESTRUCTURING AND OTHER
OPERATING COSTS
(INCOME) 4,692 (1,149) 8,889 6,184
--------- --------- ----------- -----------
INCOME FROM OPERATIONS 82,590 78,539 257,294 235,139
% OF NET SALES 16.9% 18.0% 17.5% 17.6%
% OF NET SALES -
Ex-Precious Metals 18.5% 19.9% 19.3% 19.6%
NET INTEREST AND OTHER
NON-OPERATING EXPENSE
(INCOME) 745 54 (3,643) (621)
--------- --------- ----------- -----------
PRE-TAX INCOME 81,845 78,485 260,937 235,760
INCOME TAXES 16,126 29,036 71,313 76,991
--------- --------- ----------- -----------
NET INCOME 65,719 49,449 189,624 158,769
% OF NET SALES 13.5% 11.3% 12.9% 11.9%
% OF NET SALES -
Ex-Precious Metals 14.8% 12.5% 14.2% 13.2%
EARNINGS PER SHARE
-BASIC $ 0.43 $ 0.32 $ 1.25 $ 1.02
-DILUTIVE $ 0.42 $ 0.31 $ 1.23 $ 1.00
DIVIDENDS PER SHARE $ 0.0400 $ 0.0350 $ 0.1200 $ 0.1050
WEIGHTED AVERAGE NUMBER
OF COMMON SHARES
OUTSTANDING
-BASIC 151,632 153,968 151,886 156,246
-DILUTIVE 154,736 157,153 154,735 159,344
DENTSPLY INTERNATIONAL INC.
CONDENSED BALANCE SHEETS
(IN THOUSANDS)
September 30, December 31,
2007 2006
------------- ------------
ASSETS
CURRENT ASSETS:
CASH AND CASH EQUIVALENTS $ 141,821 $ 65,064
SHORT TERM INVESTMENTS 118,921 79
ACCOUNTS AND NOTES RECEIVABLE-TRADE, NET 326,012 290,791
INVENTORIES, NET 277,057 232,441
OTHER CURRENT ASSETS 110,125 129,816
------------- ------------
TOTAL CURRENT ASSETS 973,936 718,191
PROPERTY, PLANT AND EQUIPMENT, NET 351,566 329,616
IDENTIFIABLE INTANGIBLE ASSETS, NET 71,518 67,648
GOODWILL, NET 1,121,810 995,382
OTHER NONCURRENT ASSETS, NET 96,087 70,513
------------- ------------
TOTAL ASSETS $ 2,614,917 $ 2,181,350
============= ============
LIABILITIES AND STOCKHOLDERS' EQUITY:
CURRENT LIABILITIES $ 322,418 $ 311,434
LONG-TERM DEBT 495,668 367,161
OTHER LIABILITIES 291,199 175,507
------------- ------------
TOTAL LIABILITIES 1,161,002 907,293
MINORITY INTEREST IN CONSOLIDATED
SUBSIDIARIES 280 222
STOCKHOLDERS' EQUITY 1,453,635 1,273,835
------------- ------------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $ 2,614,917 $ 2,181,350
============= ============
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 metals basis to the non-GAAP financial measures.
Three Months Ended September 30, 2007
Percentage
of Net Sales,
Operating Ex-Precious
Income Metals
---------- ----------
Income from Operations $ 82,590 18.5%
Restructuring and Other Costs 4,692 1.1%
--------- ----------
Adjusted Non-GAAP Operating Earnings $ 87,282 19.6%
========== ==========
Three Months Ended September 30, 2006
Percentage
of Net Sales,
Operating Ex-Precious
Income Metals
---------- ----------
Income from Operations $ 78,539 19.9%
Restructuring and Other Income (1,149) -0.3%
---------- ----------
Adjusted Non-GAAP Operating Earnings $ 77,390 19.6%
========== ==========
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, 2007
Adjusted Diluted
Income Per Share
-------- --------
Net Income $ 65,719 $ 0.42
Restructuring and Other Costs, Net of Tax 3,032 0.02
Income Tax Related Adjustments (7,756) (0.05)
-------- --------
Adjusted Non-GAAP Earnings $ 60,995 $ 0.39
======== ========
Three Months Ended September 30, 2006
Adjusted Diluted
Income Per Share
-------- --------
Net Income $ 49,449 $ 0.31
Restructuring and Other Income, Net of Tax (632) (0.00)
Income Tax Related Adjustments 3,362 0.02
-------- --------
Adjusted Non-GAAP Earnings $ 52,179 $ 0.33
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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 metals basis to the non-GAAP financial measures.
Nine Months Ended September 30, 2007
Percentage
of Net Sales,
Operating Ex-Precious
Income Metals
---------- ----------
Income from Operations $ 257,294 19.3%
Restructuring and Other Costs 8,889 0.7%
--------- ----------
Adjusted Non-GAAP Operating Earnings $ 266,183 20.0%
========= ==========
Nine Months Ended September 30, 2006
Percentage
of Net Sales,
Operating Ex-Precious
Income Metals
---------- ----------
Income from Operations $ 235,139 19.6%
Restructuring and Other Costs 6,184 0.5%
---------- ----------
Adjusted Non-GAAP Operating Earnings $ 241,323 20.1%
========== ==========
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, 2007
Adjusted Diluted
Income Per Share
--------- --------
Net Income $ 189,624 $ 1.23
Restructuring and Other Costs, Net of Tax 5,710 0.04
Income Tax Related Adjustments (7,400) (0.05)
Rounding (0.01)
--------- --------
Adjusted Non-GAAP Earnings $ 187,934 $ 1.21
========= ========
Nine Months Ended September 30, 2006
Adjusted Diluted
Income Per Share
--------- --------
Net Income $ 158,769 $ 1.00
Restructuring and Other Costs, Net of Tax 4,060 0.03
Income Tax Related Adjustments 4,011 0.03
Rounding (0.01)
--------- --------
Adjusted Non-GAAP Earnings $ 166,840 $ 1.05
========= ========