DENTSPLY SIRONA Inc. (“Dentsply Sirona”) (Nasdaq: XRAY), the Dental
Solutions Company, today announced its financial results for the
three months ended March 31, 2019.
First Quarter 2019 Financial Results
Reported net sales of $946.2 million declined 1.0% in the first
quarter of 2019 and were up 3.9% on an internal sales growth
basis. In the United States, revenues increased by 7.4% and
were up 6.4% on an internal basis. Rest of World revenues
declined 0.8% on a reported basis but increased 8.1% on an internal
sales growth basis. European revenues declined 7.0% with
foreign exchange accounting for 6.7% of the European revenue
decline. On an internal sales growth basis, European revenues
declined by 0.1%.
Net income attributable to Dentsply Sirona for the first quarter
of 2019 was $39.2 million, or $0.17 per diluted share, compared
$81.2 million, or $0.35 per diluted share in the first quarter of
2018. On an adjusted basis, excluding certain items, non-US
GAAP net earnings per diluted share were $0.49 compared to $0.45 in
the first quarter of 2018. A reconciliation of the non-US
GAAP measures to earnings per share calculated on a US GAAP basis
is provided in the attached tables.
Don Casey, Chief Executive Officer, commented: "Dentsply
Sirona delivered solid financial results in the first quarter of
2019, with internal sales growth of 3.9% and a one hundred ten
basis point year-over-year improvement in our adjusted operating
income margin. This translated into Adjusted EPS of $0.49, an
increase of 9% as compared to the prior year period. The
highlight of the quarter was our strong performance at the biannual
International Dental Show in Cologne, where we introduced a variety
of new products and received an excellent reception to our
innovative, Primescan dental CAD CAM digital impression system. Our
first quarter results clearly demonstrate that Dentsply Sirona is
beginning to benefit from the comprehensive restructuring program
that we put in place in November 2018 and we are confident that the
program will continue to drive significant value for our
shareholders as we move forward."
2019 Guidance [2]
The Company narrowed the range for 2019 Adjusted Earnings Per
Share guidance, and now expects to achieve Adjusted EPS in the
range of $2.30 to $2.40, as compared to the previous guidance range
of $2.25 to $2.40. The 2019 guidance incorporates the
following assumptions:
- Portfolio shaping initiatives that have already been executed
reduce 2019 revenues by approximately $70 million.
- At current exchange rates, currency is anticipated to be a 2.7%
headwind to 2019 revenues, reducing 2019 reported revenues by
approximately $110 million.
- Internal sales growth of 4% to 5%. 2019 internal revenues
benefit from absence of dealer destocking and 2019 new product
introductions.
- Reported revenues of $3.95 to $4.05 billion.
- Operating expenses below 2018 levels.
- Non-US GAAP effective tax rate of 24%.
[1] Non-US GAAP adjusted EPS, net sales
excluding precious metal, constant currency growth and internal
growth and results are non-US GAAP financial measures that exclude
certain items. Please refer to the disclosure at the end of the
release. For a reconciliation of constant currency growth to
internal revenue growth please see supplemental tables at the end
of the release.
[2] Our guidance is presented on a non-US GAAP basis, as it does
not include the impact of prospective acquisitions, acquisitions
announced but not yet closed and other non-US GAAP items, including
restructuring costs, many of which are difficult to predict.
Therefore, we cannot provide a full reconciliation of these
measures. The Company is unable at this time to address the
probable significance of all of the unavailable information.
Conference Call/Webcast
InformationDentsply Sirona’s management team will host an
investor conference call and live webcast on May 3rd, at 8:30 am
EST. A presentation will also be available on
www.dentsplysirona.com in the Investors section.
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 +1-1-629-228-0723 for international calls. The
Conference ID # is 3225899. A replay of the conference call
will be available online on the Dentsply Sirona web site, and a
dial-in replay will be available for one week following the call at
+1-855-859-2056 (for domestic calls) or +1-404-537-3406 (for
international calls), replay passcode # 3225899.
About Dentsply SironaDentsply
Sirona is the world’s largest manufacturer of professional dental
products and technologies, with a 132-year history of innovation
and service to the dental industry and patients worldwide.
Dentsply Sirona develops, manufactures, and markets a comprehensive
solutions offering including dental and oral health products as
well as other consumable medical devices under a strong portfolio
of world class brands. As The Dental Solutions Company,
Dentsply Sirona’s products provide innovative, high-quality and
effective solutions to advance patient care and deliver better,
safer and faster dentistry. Dentsply Sirona’s worldwide
headquarters is located in York, Pennsylvania. The Company’s
shares of common stock are listed in the United States on Nasdaq
under the symbol XRAY. Visit www.dentsplysirona.com for more
information about Dentsply Sirona and its products.
Contact Information:
Investors:John Sweeney, CFA, IRCVice President,
Investor
Relations+1-717-849-7863John.Sweeney@dentsplysirona.com
Forward-Looking Statements and
Associated Risks
Information the Company has included or
incorporated by reference in this Form 10-K, and information which
may be contained in other filings with the U. S. Securities and
Exchange Commission (the “SEC”) as well as press releases or other
public statements, contains or may contain forward-looking
statements. These forward-looking statements include, among
other things, statements about the completion of the year-end
financial statement audit and 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 2019 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 preliminary nature of the financial results contained in
this release
- 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
- the Company’s failure to anticipate and appropriately adapt to
changes or trends within the rapidly changing dental
industry
- the effect of changes in the Company’s management and
personnel
- changes in applicable laws, rules or regulations, or their
interpretation or enforcement, or the enactment of new laws, rules
or regulations, which apply to the Company’s business practices
(past, present or future) or require the Company to spend
significant resources for compliance
- a significant failure or disruption in service within the
Company’s operations or the operations of key
distributors
- 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
- the Company’s failure to attract and retain talented employees,
or to manage succession and retention for its Chief Executive
Officer or other key executives
- the Company’s failure to successfully integrate the business
operations or achieve the anticipated benefits from any acquired
businesses
- the Company’s failure to execute on, or other issues arising
under, certain key client contracts
- the impact of the Company’s debt service obligations on the
availability of funds for other business purposes, the terms of and
required compliance with covenants relating to the Company’s
indebtedness and its access to the credit markets in
general
- general economic conditions
- 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 Part I, Item 1A,
“Risk Factors” of this Form 10-K and any other information included
or incorporated by reference in this Report, and information which
may be contained in the Company’s other filings with the SEC, when
reviewing any forward-looking statement. Investors should
understand it is impossible to predict or identify all such factors
or risks. As such, you should not consider either foregoing
lists, or the risks identified in the Company’s SEC filings, to be
a complete discussion of all potential risks or uncertainties
associated with an investment in the company.
Non-US GAAP Financial
Measures
The principal measurements used by the Company
in evaluating its business are: (1) constant currency sales growth
by segment and geographic region; (2) internal sales growth by
segment and geographic region; and (3) adjusted operating income
and margins of each reportable segment, which excludes the impacts
of purchase accounting, corporate expenses, and certain other items
to enhance the comparability of results period to period.
These principal measurements are not calculated in accordance with
accounting principles generally accepted in the United States;
therefore, these items represent non-US GAAP measures. These
non-US GAAP measures may differ from other companies and should not
be considered in isolation from, or as a substitute for, measures
of financial performance prepared in accordance with US GAAP.
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 U.S. dollar to local currency foreign
exchange rate for each month of the prior period, for the
currencies in which the Company does business. The Company
defines “internal” sales growth as constant currency sales growth
excluding the impacts of net acquisitions and divestitures, Merger
accounting impacts and discontinued products.
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 is comprised 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, Dentsply Sirona reports net 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. The Company
uses its cost of precious metal purchased as a proxy for the
precious metal content of sales, as the precious metal content of
sales is not separately tracked and invoiced to customers.
The Company believes that it is reasonable to use the cost of
precious metal content purchased in this manner since precious
metal dental alloy sale prices are typically adjusted when the
prices of underlying precious metals change.
In addition to the results reported in
accordance with US GAAP, the Company provides adjusted net income
attributable to Dentsply Sirona and adjusted earnings per diluted
common share (“adjusted EPS”). The Company discloses adjusted
net income attributable to Dentsply Sirona 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 may not be indicative of past or future performance
of the normal operations of the Company and certain large non-cash
charges related to intangible assets either purchased or acquired
through a business combination. The Company believes that
this information is helpful in understanding underlying operating
trends and cash flow generation.
Adjusted net income and adjusted EPS are
important internal measures for the Company. Senior management
receives a monthly analysis of operating results that includes
adjusted 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 Dentsply Sirona consists
of net income attributable to Dentsply Sirona adjusted to exclude
the following:
(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
Dentsply Sirona to allow investors to evaluate and understand
operating trends excluding these large non-cash charges.
(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 Dentsply Sirona to allow
investors to evaluate and understand operating trends excluding
this gain.
(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 earnings per diluted common share is
calculated by dividing adjusted net (loss) income attributable to
Dentsply Sirona by diluted weighted-average common shares
outstanding. Adjusted net income attributable to Dentsply
Sirona 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 SIRONA INC. AND
SUBSIDIARIESCONSOLIDATED STATEMENTS OF
OPERATIONS(In millions, except per share amounts and
percentages)(unaudited)
|
Three Months Ended March
31, |
|
2019 |
|
|
2018 |
|
|
|
|
|
Net sales |
$ |
946.2 |
|
|
$ |
956.1 |
|
Net sales, excluding
precious metal content |
935.0 |
|
|
945.8 |
|
|
|
|
|
Cost of products
sold |
446.5 |
|
|
442.0 |
|
|
|
|
|
Gross profit |
499.7 |
|
|
514.1 |
|
% of Net
sales |
52.8 |
% |
|
53.8 |
% |
% of Net
sales, excluding precious metal content |
53.4 |
% |
|
54.4 |
% |
|
|
|
|
Selling, general and
administrative expenses |
431.9 |
|
|
435.2 |
|
|
|
|
|
Restructuring and other
costs |
20.5 |
|
|
10.2 |
|
|
|
|
|
Operating income |
47.3 |
|
|
68.7 |
|
% of Net
sales |
5.0 |
% |
|
7.2 |
% |
% of Net
sales, excluding precious metal content |
5.1 |
% |
|
7.3 |
% |
|
|
|
|
Net interest and other
expense (income) |
(6.5 |
) |
|
(26.1 |
) |
|
|
|
|
Income (loss) before
income taxes |
53.8 |
|
|
94.8 |
|
|
|
|
|
Provision (benefit) for
income taxes |
14.6 |
|
|
13.7 |
|
|
|
|
|
Net income |
39.2 |
|
|
81.1 |
|
% of Net
sales |
4.1 |
% |
|
8.5 |
% |
% of Net
sales, excluding precious metal content |
4.2 |
% |
|
8.6 |
% |
|
|
|
|
Less: Net (loss) income
attributable to noncontrolling interest |
— |
|
|
(0.1 |
) |
|
|
|
|
Net income attributable
to Dentsply Sirona |
$ |
39.2 |
|
|
$ |
81.2 |
|
|
|
|
|
% of Net
sales |
4.1 |
% |
|
8.5 |
% |
% of Net
sales, excluding precious metal content |
4.2 |
% |
|
8.6 |
% |
|
|
|
|
Net income per common
share attributable to Dentsply Sirona: |
|
|
|
Basic |
$ |
0.18 |
|
|
$ |
0.36 |
|
Diluted |
$ |
0.17 |
|
|
$ |
0.35 |
|
|
|
|
|
Weighted average common
shares outstanding: |
|
|
|
Basic |
223.3 |
|
|
227.2 |
|
Diluted |
225.0 |
|
|
229.9 |
|
|
|
|
|
DENTSPLY SIRONA INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE
SHEETS(In millions)(unaudited)
|
March 31, 2019 |
|
December 31, 2018 |
|
|
|
|
Assets |
|
|
|
Current Assets: |
|
|
|
|
|
|
|
Cash and cash
equivalents |
$ |
225.4 |
|
$ |
309.6 |
Accounts
and notes receivable-trade, net |
658.5 |
|
701.9 |
Inventories, net |
618.2 |
|
598.9 |
Prepaid
expenses and other current assets, net |
293.5 |
|
277.6 |
|
|
|
|
Total
Current Assets |
1,795.6 |
|
1,888.0 |
|
|
|
|
Property, plant and
equipment, net |
853.9 |
|
870.6 |
Operating lease
right-of-use assets, net |
163.9 |
|
— |
Identifiable intangible
assets, net |
2,324.7 |
|
2,420.3 |
Goodwill, net |
3,399.2 |
|
3,431.3 |
Other noncurrent
assets, net |
67.2 |
|
76.8 |
|
|
|
|
Total
Assets |
$ |
8,604.5 |
|
$ |
8,687.0 |
|
|
|
|
Liabilities and
Equity |
|
|
|
Current
Liabilities: |
|
|
|
Accounts
payable |
$ |
269.0 |
|
$ |
283.9 |
Accrued
liabilities |
511.1 |
|
578.9 |
Income
taxes payable |
69.8 |
|
58.1 |
Notes
payable and current portion of long-term debt |
20.7 |
|
92.4 |
|
|
|
|
Total
Current Liabilities |
870.6 |
|
1,013.3 |
|
|
|
|
Long-term debt |
1,545.1 |
|
1,564.9 |
Operating lease
liabilities |
125.5 |
|
— |
Deferred income
taxes |
535.1 |
|
552.8 |
Other noncurrent
liabilities |
418.7 |
|
423.0 |
|
|
|
|
Total
Liabilities |
3,495.0 |
|
3,554.0 |
|
|
|
|
Total
Equity |
5,109.5 |
|
5,133.0 |
|
|
|
|
Total
Liabilities and Equity |
$ |
8,604.5 |
|
$ |
8,687.0 |
|
|
|
|
DENTSPLY SIRONA INC. AND
SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH
FLOWS(In millions)(unaudited)
|
Three Months Ended March 31, |
|
2019 |
|
|
2018 |
|
Cash flows from
operating activities: |
|
|
|
Net income |
$ |
39.2 |
|
|
$ |
81.1 |
|
Adjustments to
reconcile net income to net cash provided by operating
activities: |
|
|
|
Depreciation |
34.9 |
|
|
33.3 |
|
Amortization of intangible assets |
48.2 |
|
|
49.9 |
|
Amortization of deferred financing costs |
0.7 |
|
|
0.7 |
|
Deferred
income taxes |
(6.0 |
) |
|
(16.8 |
) |
Stock
based compensation expense |
9.2 |
|
|
9.3 |
|
Restructuring and other costs - non-cash |
9.7 |
|
|
3.3 |
|
Indefinite-lived intangible asset impairment |
5.3 |
|
|
— |
|
Other
non-cash (income) expense |
(7.8 |
) |
|
14.0 |
|
Loss on
disposal of property, plant and equipment |
(0.1 |
) |
|
0.5 |
|
Gain on
divestiture of noncontrolling interest |
(8.7 |
) |
|
— |
|
Gain on
sale of equity security |
— |
|
|
(44.1 |
) |
Changes
in operating assets and liabilities, net of acquisitions: |
|
|
|
Accounts
and notes receivable-trade, net |
36.5 |
|
|
87.5 |
|
Inventories, net |
(31.5 |
) |
|
(64.7 |
) |
Prepaid
expenses and other current assets, net |
(16.3 |
) |
|
(5.6 |
) |
Other
noncurrent assets, net |
4.8 |
|
|
(2.9 |
) |
Accounts
payable |
(11.3 |
) |
|
(3.9 |
) |
Accrued
liabilities |
(90.1 |
) |
|
(77.4 |
) |
Income
taxes |
12.3 |
|
|
(14.1 |
) |
Other
noncurrent liabilities |
0.3 |
|
|
5.0 |
|
Net cash
provided by operating activities |
29.3 |
|
|
55.1 |
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
Capital
expenditures |
(33.9 |
) |
|
(35.8 |
) |
Purchase of short term
investments |
(0.8 |
) |
|
— |
|
Cash paid for
acquisitions of businesses and equity investments, net of cash
acquired |
— |
|
|
(6.7 |
) |
Cash received for sale
of business |
(1.0 |
) |
|
— |
|
Cash received on
derivative contracts |
22.7 |
|
|
— |
|
Cash paid on derivative
contracts |
— |
|
|
(2.4 |
) |
Expenditures for
identifiable intangible assets |
— |
|
|
(3.3 |
) |
Proceeds from sale of
property, plant and equipment, net |
0.3 |
|
|
3.0 |
|
Net cash used
in investing activities |
(12.7 |
) |
|
(45.2 |
) |
|
|
|
|
Cash flows from
financing activities: |
|
|
|
Repayments on
short-term borrowings |
(67.9 |
) |
|
(7.8 |
) |
Cash dividends
paid |
(19.5 |
) |
|
(19.8 |
) |
Cash paid for
contingent consideration on prior acquisitions |
(30.6 |
) |
|
— |
|
Proceeds from long-term
borrowings |
0.9 |
|
|
0.1 |
|
Repayments on long-term
borrowings |
(1.9 |
) |
|
(0.2 |
) |
Proceeds from exercise
of stock options |
19.8 |
|
|
8.3 |
|
Net cash used
in financing activities |
(99.2 |
) |
|
(19.4 |
) |
|
|
|
|
Effect of exchange rate
changes on cash and cash equivalents |
(1.6 |
) |
|
6.0 |
|
Net decrease in cash
and cash equivalents |
(84.2 |
) |
|
(3.5 |
) |
Cash and cash
equivalents at beginning of period |
309.6 |
|
|
320.6 |
|
Cash and cash
equivalents at end of period |
$ |
225.4 |
|
|
$ |
317.1 |
|
|
|
|
|
DENTSPLY SIRONA INC. AND
SUBSIDIARIES(In millions, except
percentages)(unaudited)
A reconciliation of reported net sales to non-US
GAAP net sales, excluding precious metal content, is as
follows:
|
|
Three Months Ended March 31, |
|
|
(in millions, except
percentages) |
|
2019 |
|
2018 |
|
Variance % |
|
|
|
|
|
|
|
Net
sales |
|
$ |
946.2 |
|
$ |
956.1 |
|
(1.0 |
) |
% |
Less:
precious metal content of sales |
|
11.2 |
|
10.3 |
|
8.7 |
|
% |
Net sales, excluding
precious metal content |
|
935.0 |
|
945.8 |
|
(1.1 |
) |
% |
Foreign exchange
impact |
|
|
|
|
|
(4.7 |
) |
% |
Constant currency
growth |
|
|
|
|
|
3.6 |
|
% |
Acquisitions |
|
|
|
|
|
0.6 |
|
% |
Discontinued
products |
|
|
|
|
|
(0.9 |
) |
% |
Internal sales
growth |
|
|
|
|
|
3.9 |
|
% |
|
Three Months Ended March 31, 2019 |
|
Q1 2019 Growth |
|
Three Months Ended March 31, 2018 |
(in millions, except
percentages) |
US |
Europe |
ROW |
Total |
|
US |
Europe |
ROW |
Total |
|
US |
Europe |
ROW |
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
sales |
$ |
313.4 |
$ |
395.8 |
$ |
237.0 |
$ |
946.2 |
|
7.4 |
|
% |
(7.0 |
) |
% |
(0.8 |
) |
% |
(1.0 |
) |
% |
|
$ |
291.8 |
$ |
425.5 |
$ |
238.8 |
$ |
956.1 |
Less:
precious metal content of sales |
1.5 |
8.9 |
0.8 |
11.2 |
|
|
|
|
|
|
1.3 |
8.1 |
0.9 |
10.3 |
Net sales, excluding
precious metal content |
311.9 |
386.9 |
236.2 |
935.0 |
|
7.4 |
|
% |
(7.3 |
) |
% |
(0.7 |
) |
% |
(1.1 |
) |
% |
|
290.5 |
417.4 |
237.9 |
945.8 |
Foreign exchange
impact |
|
|
|
|
|
(0.1 |
) |
% |
(6.7 |
) |
% |
(7.0 |
) |
% |
(4.7 |
) |
% |
|
|
|
|
|
Constant currency
growth |
|
|
|
|
|
7.5 |
|
% |
(0.6 |
) |
% |
6.3 |
|
% |
3.6 |
|
% |
|
|
|
|
|
Acquisitions |
|
|
|
|
|
1.5 |
|
% |
0.1 |
|
% |
0.4 |
|
% |
0.6 |
|
% |
|
|
|
|
|
Discontinued
products |
|
|
|
|
|
(0.4 |
) |
% |
(0.6 |
) |
% |
(2.2 |
) |
% |
(0.9 |
) |
% |
|
|
|
|
|
Internal sales
growth |
|
|
|
|
|
6.4 |
|
% |
(0.1 |
) |
% |
8.1 |
|
% |
3.9 |
|
% |
|
|
|
|
|
|
Three Months Ended March 31, 2019 |
|
Q1 2019 Growth |
|
Three Months Ended March 31, 2018 |
(in millions, except
percentages) |
Technologies & Equipment |
Consumables |
Total |
|
Technologies & Equipment |
Consumables |
Total |
|
Technologies & Equipment |
Consumables |
Total |
|
|
|
|
|
|
|
|
|
|
|
|
Net
sales |
$ |
520.8 |
$ |
425.4 |
$ |
946.2 |
|
2.1 |
|
% |
(4.6 |
) |
% |
(1.0 |
) |
% |
|
$ |
510.1 |
$ |
446.0 |
$ |
956.1 |
Less:
precious metal content of sales |
— |
11.2 |
11.2 |
|
|
|
|
|
— |
10.3 |
10.3 |
Net sales, excluding
precious metal content |
520.8 |
414.2 |
935.0 |
|
2.1 |
|
% |
(4.9 |
) |
% |
(1.1 |
) |
% |
|
510.1 |
435.7 |
945.8 |
Foreign exchange
impact |
|
|
|
|
(5.1 |
) |
% |
(4.3 |
) |
% |
(4.7 |
) |
% |
|
|
|
|
Constant currency
growth |
|
|
|
|
7.2 |
|
% |
(0.6 |
) |
% |
3.6 |
|
% |
|
|
|
|
Acquisitions |
|
|
|
|
1.0 |
|
% |
— |
|
% |
0.6 |
|
% |
|
|
|
|
Discontinued
products |
|
|
|
|
(1.7 |
) |
% |
— |
|
% |
(0.9 |
) |
% |
|
|
|
|
Internal sales
growth |
|
|
|
|
7.9 |
|
% |
(0.6 |
) |
% |
3.9 |
|
% |
|
|
|
|
DENTSPLY SIRONA INC. AND
SUBSIDIARIESCONSOLIDATED STATEMENTS OF
INCOME(In millions)(unaudited)
|
|
|
|
|
|
|
|
|
|
|
US GAAP |
|
|
|
|
|
|
|
NON-US GAAP |
|
Three Months Ended March 31, 2019 |
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-US GAAP Adjustments |
Income Tax Related Adjustments |
Total Non-US GAAP Adjustments |
Three Months Ended March 31, 2019 |
|
|
|
|
|
|
|
|
|
|
NET SALES |
$ |
946.2 |
|
— |
|
— |
|
— |
|
— |
|
— |
— |
|
$ |
— |
|
$ |
946.2 |
NET SALES-excluding
precious metals |
935.0 |
|
— |
|
— |
|
— |
|
— |
|
— |
— |
|
— |
|
935.0 |
GROSS PROFIT |
499.7 |
|
29.2 |
|
9.6 |
|
— |
|
1.6 |
|
— |
— |
|
40.4 |
|
540.1 |
% OF NET
SALES-excluding precious metals |
53.4 |
% |
|
|
|
|
|
|
|
57.8% |
SG&A EXPENSES |
431.9 |
|
(19.0 |
) |
(17.8 |
) |
— |
|
(0.5 |
) |
— |
— |
|
(37.3 |
) |
394.6 |
% OF NET
SALES-excluding precious metals |
46.2 |
% |
|
|
|
|
|
|
|
42.2% |
RESTRUCTURING AND OTHER
COSTS |
20.5 |
|
— |
|
(20.5 |
) |
— |
|
— |
|
— |
— |
|
(20.5 |
) |
— |
INCOME FROM
OPERATIONS |
47.3 |
|
48.2 |
|
47.9 |
|
— |
|
2.1 |
|
— |
— |
|
98.2 |
|
145.5 |
% OF NET
SALES-excluding precious metals |
5.1 |
% |
|
|
|
|
|
|
|
15.6% |
NET INTEREST AND OTHER
EXPENSE |
(6.5 |
) |
— |
|
9.0 |
|
(1.3 |
) |
(0.2 |
) |
— |
— |
|
7.5 |
|
1.0 |
PRE-TAX INCOME |
53.8 |
|
48.2 |
|
38.9 |
|
1.3 |
|
2.3 |
|
— |
— |
|
90.7 |
|
144.5 |
INCOME TAXES |
14.6 |
|
— |
|
— |
|
— |
|
— |
|
22.6 |
(2.5 |
) |
20.1 |
|
34.7 |
% OF PRE-TAX
INCOME |
27.1 |
% |
|
|
|
|
|
|
|
24.0% |
LESS: NET INCOME
ATTRIBUTABLE TO NON-CONTROLLING INTERESTS |
— |
|
|
|
|
|
|
|
— |
|
— |
NET INCOME ATTRIBUTABLE
TO DENTSPLY SIRONA |
$ |
39.2 |
|
|
|
|
|
|
|
$ |
70.6 |
|
$ |
109.8 |
% OF NET
SALES-excluding precious metals |
4.2 |
% |
|
|
|
|
|
|
|
11.7% |
EARNINGS PER SHARE -
DILUTED |
$ |
0.17 |
|
|
|
|
|
|
|
$ |
0.32 |
|
$ |
0.49 |
DENTSPLY SIRONA INC. AND
SUBSIDIARIESCONSOLIDATED STATEMENTS OF
INCOME(In millions)(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
US GAAP |
|
|
|
|
|
|
|
|
NON-US GAAP |
|
Three Months Ended March 31, 2018 |
Amortization of Purchased Intangible
Assets |
Restructuring Program Related Costs and Other
Costs |
Gain on Sale of Marketable
Securities |
Business Combination Related Costs and Fair
Value Adjustments |
Credit Risk and Fair Value
Adjustments |
Tax Impact of Non-US GAAP Adjustments |
Income Tax Related Adjustments |
Total Non-US GAAP Adjustments |
Three Months Ended March 31, 2018 |
|
|
|
|
|
|
|
|
|
|
|
NET SALES |
$ |
956.1 |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
— |
|
$ |
— |
|
$ |
956.1 |
|
NET SALES-excluding
precious metals |
945.8 |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
— |
|
— |
|
945.8 |
|
GROSS PROFIT |
514.1 |
|
29.9 |
|
— |
|
2.7 |
|
— |
|
1.5 |
|
— |
— |
|
34.1 |
|
548.2 |
|
% OF NET
SALES-excluding precious metals |
54.4 |
% |
|
|
|
|
|
|
|
|
58.0 |
% |
SG&A EXPENSES |
435.2 |
|
(20.1 |
) |
— |
|
(3.0 |
) |
— |
|
(1.5 |
) |
— |
— |
|
(24.6 |
) |
410.6 |
|
% OF NET
SALES-excluding precious metals |
46.0 |
% |
|
|
|
|
|
|
|
|
43.4 |
% |
RESTRUCTURING AND OTHER
COSTS |
10.2 |
|
— |
|
— |
|
(10.2 |
) |
— |
|
— |
|
— |
— |
|
(10.2 |
) |
— |
|
INCOME FROM
OPERATIONS |
68.7 |
|
50.0 |
|
— |
|
15.9 |
|
— |
|
3.0 |
|
— |
— |
|
68.9 |
|
137.6 |
|
% OF NET
SALES-excluding precious metals |
7.3 |
% |
|
|
|
|
|
|
|
|
14.5 |
% |
NET INTEREST AND OTHER
EXPENSE |
(26.1 |
) |
— |
|
44.1 |
|
— |
|
(10.7 |
) |
(0.2 |
) |
— |
— |
|
33.2 |
|
7.1 |
|
PRE-TAX
INCOME |
94.8 |
|
50.0 |
|
(44.1 |
) |
15.9 |
|
10.7 |
|
3.2 |
|
— |
— |
|
35.7 |
|
130.5 |
|
INCOME TAXES |
13.7 |
|
— |
|
— |
|
— |
|
— |
|
— |
|
22.9 |
(8.7 |
) |
14.2 |
|
27.9 |
|
% OF PRE-TAX
INCOME |
14.5 |
% |
|
|
|
|
|
|
|
|
21.4 |
% |
LESS: NET INCOME
ATTRIBUTABLE TO NON-CONTROLLING INTERESTS |
(0.1 |
) |
|
|
|
|
|
|
|
— |
|
(0.1 |
) |
NET INCOME
ATTRIBUTABLE TO DENTSPLY SIRONA |
$ |
81.2 |
|
|
|
|
|
|
|
|
$ |
21.5 |
|
$ |
102.7 |
|
% OF NET
SALES-excluding precious metals |
8.6 |
% |
|
|
|
|
|
|
|
|
10.9 |
% |
EARNINGS PER SHARE -
DILUTED |
$ |
0.35 |
|
|
|
|
|
|
|
|
$ |
0.10 |
|
$ |
0.45 |
|
|
|
|
|
|
|
|
|
|
|
|
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