DENTSPLY International Inc. Reports Fourth Quarter and Fiscal 2011 Results
* Record net sales, excluding precious metals, increased 30% for the quarter
and 15% for the year
* Fiscal 2011 earnings per diluted share of $1.70 on a GAAP basis and $2.03 on
an adjusted basis
* Fiscal 2012 adjusted EPS expected to be in the range of $2.22 to $2.30 per
diluted share
York, PA - February 16, 2012 - DENTSPLY International Inc. (NASDAQ: XRAY) today
announced sales and earnings for the three months and year ended December
31, 2011.
Fourth Quarter Results
Net sales in the fourth quarter of 2011 were a record $738.0 million, a 29.9%
increase from $568.2 million in the fourth quarter of 2010. Net sales,
excluding precious metals content, of $677.8 million increased 30.0% from $521.3
million in the fourth quarter of 2010. Net sales growth was largely driven by
acquisitions, but also by solid internal sales growth excluding the orthodontic
and Japanese businesses that were impacted by the March, 2011 natural disaster
in Japan.
Net income attributable to DENTSPLY International for the fourth quarter of
2011 was $40.6 million, or $0.28 per diluted share, compared to $0.47 per
diluted share in the fourth quarter of 2010. On an adjusted basis, excluding
amortization of intangible assets and other non-GAAP adjustments, earnings of
$0.51 per diluted share were slightly lower than $0.52 per diluted share in the
fourth quarter of 2010. Earnings in the fourth quarter of 2011 reflect the
orthodontic supply outage and the weakening of European currencies during the
quarter. A reconciliation of the non-GAAP measure to earnings per share
calculated on a GAAP basis is provided on the attached table.
Full Year Results
Net sales for the full year 2011 were a record $2.537 billion, a 14.3% increase
over the prior year. Net sales in 2011, excluding precious metal content, were
$2.333 billion, a 14.8% increase over 2010. Fiscal 2011 net sales were aided by
acquisitions, currency and strengthened internal growth excluding orthodontics
and Japan.
Lesen Sie auch
Net income attributable to DENTSPLY International for 2011 was $244.5 million,
or $1.70 per diluted share, compared to $265.7 million, or $1.82 per diluted
share for 2010. On an adjusted basis, excluding amortization of intangible
assets and other non-GAAP adjustments, earnings of $2.03 per diluted share
increased 4.6% from $1.94 per diluted share in 2010. A reconciliation of this
non-GAAP measure to earnings per share on a GAAP basis is provided on the
attached table.
2012 Outlook
Bret Wise, Chairman and Chief Executive Officer, stated, "We are pleased to
report record sales and adjusted earnings for 2011. Our portfolio of new
products has been particularly strong, driving market share gains across
numerous categories. The global dental market continued to improve in 2011,
particularly in the United States where there has been a notable strengthening
in underlying demand. Looking ahead to 2012, we expect continued improvement in
many of our key markets, despite economic volatility in Europe. Given these
factors, we expect adjusted earnings to improve in 2012 to a range of $2.22 to
$2.30 per diluted share."
Additional Information
A conference call has been scheduled for today, Thursday, February 16, 2012 at
8:30 a.m. (Eastern Time). A live broadcast will be accessible on DENTSPLY´s
website www.dentsply.com. In order to participate in the call, dial (888)
220-8474 (for domestic calls) and (913) 312-1466 (for international calls). The
Conference ID # is 3931344. At that time, you will be able to discuss the
fourth quarter and fiscal 2011 earnings 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 to the public online at
the DENTSPLY website www.dentsply.com. 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), Passcode # 3931344.
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 Astra Tech, 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 and expensing of
purchase price adjustments at an unconsolidated affiliated company, (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 Twelve Months Ended
December 31, December 31,
--------------------------- ------------------------------
2011 2010 2011 2010
------------- ------------- --------------- --------------
Net sales $ 738,013 $ 568,169 $ 2,537,718 $ 2,221,014
Net sales, excluding
precious metal content 677,843 521,256 2,332,589 2,031,757
Cost of products sold 377,056 280,458 1,264,278 1,090,856
------------- ------------- --------------- --------------
Gross profit 360,957 287,711 1,273,440 1,130,158
% of Net sales 48.9 % 50.6 % 50.2 % 50.9 %
% of Net sales,
excluding precious
metal content 53.3 % 55.2 % 54.6 % 55.6 %
Selling, general and
administrative
expenses 293,603 186,426 936,847 738,901
Restructuring and
other costs 2,016 5,723 35,865 10,984
------------- ------------- --------------- --------------
Operating income 65,338 95,562 300,728 380,273
% of Net sales 8.9 % 16.8 % 11.9 % 17.1 %
% of Net sales,
excluding precious
metal content 9.6 % 18.3 % 12.9 % 18.7 %
Net interest and other
expense 14,632 4,842 44,617 22,617
------------- ------------- --------------- --------------
Income before income
taxes 50,706 90,720 256,111 357,656
Provision for income
taxes 9,974 21,640 11,016 89,225
Equity in net income
(loss) attributable
to unconsolidated
affiliated company 661 (1,096 ) 2,351 (1,096 )
------------- ------------- --------------- --------------
Net income 41,393 67,984 247,446 267,335
% of Net sales 5.6 % 12.0 % 9.8 % 12.0 %
% of Net sales,
excluding precious
metal content 6.1 % 13.0 % 10.6 % 13.2 %
Less: Net income
attributable to
noncontrolling
interests 790 157 2,926 1,627
------------- ------------- --------------- --------------
Net income
attributable to
DENTSPLY International $ 40,603 $ 67,827 $ 244,520 $ 265,708
------------- ------------- --------------- --------------
% of Net sales 5.5 % 11.9 % 9.6 % 12.0 %
% of Net sales,
excluding precious
metal content 6.0 % 13.0 % 10.5 % 13.1 %
Earnings per common
share:
Basic $ 0.29 $ 0.48 $ 1.73 $ 1.85
Dilutive $ 0.28 $ 0.47 $ 1.70 $ 1.82
Cash dividends
declared per common
share $ 0.055 $ 0.050 $ 0.205 $ 0.200
Weighted average
common shares
outstanding:
Basic 141,532 141,934 141,386 143,980
Dilutive 143,578 143,937 143,553 145,985
DENTSPLY INTERNATIONAL INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
December 31, December 31,
2011 2010
--------------- --------------
Assets
Current Assets:
Cash and cash equivalents $ 77,128 $ 540,038
Accounts and notes receivable-trade, net 427,709 344,796
Inventories, net 361,762 308,738
Prepaid expenses and other current assets 146,304 121,473
--------------- --------------
Total Current Assets 1,012,903 1,315,045
Property, plant and equipment, net 591,445 423,105
Identifiable intangible assets, net 791,100 78,743
Goodwill, net 2,199,582 1,303,055
Other noncurrent assets, net 169,887 138,003
--------------- --------------
Total Assets $ 4,764,917 $ 3,257,951
--------------- --------------
Liabilities and Equity
Current liabilities $ 724,073 $ 360,091
Long-term debt 1,490,010 604,015
Deferred income taxes 249,822 72,489
Other noncurrent liabilities 407,342 311,444
--------------- --------------
Total Liabilities 2,871,247 1,348,039
Total DENTSPLY International Equity 1,857,596 1,839,386
Noncontrolling interests 36,074 70,526
--------------- --------------
Total Equity 1,893,670 1,909,912
--------------- --------------
Total Liabilities and Equity $ 4,764,917 $ 3,257,951
--------------- --------------
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
December 31, 2011
Percentage of Net
Sales, Excluding
Operating Income Precious Metal
(Loss) Content
--------------------- ----------------------
Operating Income $ 65,338 9.6 %
Acquisition-Related
Activities 29,348 4.4 %
Amortization on
Purchased Intangible
Assets:
Prior to July 1, 2011 2,195 0.3 %
Astra Tech 8,799 1.3 %
Restructuring and Other
Costs 1,553 0.2 %
Orthodontics Business
Continuity Costs 1,246 0.2 %
--------------------- ----------------------
Adjusted Non-GAAP
Operating Income $ 108,479 16.0 %
--------------------- ----------------------
Three Months Ended
December 31, 2010
Percentage of Net
Sales, Excluding
Operating Income Precious Metal
(Loss) Content
--------------------- ----------------------
Operating Income $ 95,562 18.3 %
Restructuring and Other
Costs 5,723 1.1 %
Amortization on
Purchased Intangible
Assets 2,258 0.4 %
Recent Acquisition-
Related Activities 454 0.1 %
--------------------- ----------------------
Adjusted Non-GAAP
Operating Income $ 103,997 19.9 %
--------------------- ----------------------
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 December
31, 2011
Income Diluted
Per
(Expense) Share
------------ ----------
Net Income Attributable to DENTSPLY
International $ 40,603 $ 0.28
Acquisition -Related Activities,
Net of Tax and Non-Controlling
Interests 20,361 0.14
Amortization on Purchased
Intangible Assets, Net of Tax:
Prior to July 1, 2011 1,465 0.01
Astra Tech 6,119 0.04
Income Tax-Related Adjustment 2,677 0.02
Restructuring and Other Costs, Net
of Tax and Non-Controlling
Interests 993 0.01
Orthodontics Business Continuity
Costs, Net of Tax 820 0.01
Gain on Fair Value Adjustments at
an Unconsolidated Affiliated
Company, Net of Tax (426 ) -
------------ ----------
Adjusted Non-GAAP Net Income
Attributable to DENTSPLY
International $ 72,612 $ 0.51
------------ ----------
Three Months Ended December
31, 2010
Income Diluted
Per
(Expense) Share
------------ ----------
Net Income Attributable to DENTSPLY
International $ 67,827 $ 0.47
Restructuring and Other Costs, Net
of Tax and Non-Controlling
Interests 3,889 0.03
Amortization on Purchased
Intangible Assets, Net of Tax 1,497 0.01
Loss on Fair Value Adjustments at
an Unconsolidated Affiliated
Company, Net of Tax 1,131 0.01
Recent Acquisition-Related
Activities, Net of Tax and Non-
Controlling Interests 481 -
Income Tax-Related Adjustments 404 -
------------ ----------
Adjusted Non-GAAP Net Income
Attributable to DENTSPLY
International $ 75,229 $ 0.52
------------ ----------
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
December 31, 2011
Pre-tax Income Tax Benefit Percentage of Pre-
Income (Expense) Tax Income
------------ ---------------------- --------------------
As Reported - GAAP
Operating Results $ 50,706 $ (9,974 ) 19.7 %
Acquisition-Related
Activities 29,348 (8,987 )
Amortization on
Purchased Intangible
Assets:
Prior to July 1, 2011 2,195 (729 )
Astra Tech 8,799 (2,680 )
Restructuring and Other
Costs 1,553 (563 )
Orthodontics Business
Continuity Costs 1,246 (426 )
Loss on Fair Value
Adjustments at an
Unconsolidated
Affiliated Company 8 (3 )
Income Tax-Related
Adjustments - 2,722
------------ ---------------------- --------------------
As Adjusted - Non-GAAP
Operating Results $ 93,855 $ (20,640 ) 22.0 %
------------ ----------------------
Three Months Ended
December 31, 2010
Pre-tax Income Tax Benefit Percentage of Pre-
Income (Expense) Tax Income
------------ ---------------------- --------------------
As Reported - GAAP
Operating Results $ 90,720 $ (21,640 ) 23.9 %
Restructuring and Other
Costs 5,723 (1,832 )
Amortization on
Purchased Intangible
Assets 2,257 (760 )
Recent Acquisition-
Related Activities 454 27
Income Tax-Related
Adjustments - 758
------------ ---------------------- --------------------
As Adjusted - Non-GAAP
Operating Results $ 99,154 $ (23,447 ) 23.6 %
------------ ----------------------
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.
Twelve Months Ended
December 31, 2011
Percentage of Net
Sales, Excluding
Operating Income Precious Metal
(Loss) Content
--------------------- ----------------------
Operating Income $ 300,728 12.9 %
Acquisition-Related
Activities 70,870 3.0 %
Restructuring and Other
Costs 17,883 0.8 %
Amortization on
Purchased Intangible
Assets:
Prior to July 1, 2011 8,843 0.4 %
Astra Tech 12,153 0.5 %
Orthodontics Business
Continuity Costs 3,287 0.1 %
--------------------- ----------------------
Adjusted Non-GAAP
Operating Income $ 413,764 17.7 %
--------------------- ----------------------
Twelve Months Ended
December 31, 2010
Percentage of Net
Sales, Excluding
Operating Income Precious Metal
(Loss) Content
--------------------- ----------------------
Operating Income $ 380,273 18.7 %
Restructuring and Other
Costs 10,984 0.6 %
Amortization on
Purchased Intangible
Assets 9,045 0.4 %
Recent Acquisition-
Related Activities 2,686 0.1 %
--------------------- ----------------------
Adjusted Non-GAAP
Operating Income $ 402,988 19.8 %
--------------------- ----------------------
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.
Twelve Months Ended December
31, 2011
Income Diluted
(Expense) Per Share
----------------- ------------------
Net Income Attributable to
DENTSPLY International $ 244,520 $ 1.70
Acquisition-Related
Activities, Net of Tax and
Non-Controlling Interests 62,723 0.44
Restructuring and Other Costs,
Net of Tax and Non-Controlling
Interests 11,395 0.08
Amortization on Purchased
Intangible Assets, Net of Tax:
Prior to July 1, 2011 5,894 0.04
Astra Tech 8,534 0.06
Orthodontics Business
Continuity Costs, Net of Tax 2,128 0.01
Credit Risk Adjustment to
Outstanding Derivatives, Net
of Tax (783 ) -
Gain on Fair Value Adjustments
at an Unconsolidated
Affiliated Company, Net of Tax (2,486 ) (0.02)
Income Tax-Related Adjustments (41,053 ) (0.28)
----------------- ------------------
Adjusted Non-GAAP Net Income
Attributable to DENTSPLY
International $ 290,872 $ 2.03
----------------- ------------------
Twelve Months Ended December
31, 2010
Income Diluted
(Expense) Per Share
----------------- ------------------
Net Income Attributable to
DENTSPLY International $ 265,708 $ 1.82
Restructuring and Other Costs,
Net of Tax and Non-Controlling
Interests 7,138 0.05
Amortization on Purchased
Intangible Assets, Net of Tax 5,990 0.04
Recent Acquisition-Related
Activities, Net of Tax and
Non-Controlling Interests 2,152 0.01
Loss on Derivative at an
Unconsolidated Affiliated
Company 1,131 0.01
Income Tax-Related Adjustments 1,073 0.01
Credit Risk Adjustment to
Outstanding Derivatives, Net
of Tax 732 -
----------------- ------------------
Adjusted Non-GAAP Net Income
Attributable to DENTSPLY
International $ 283,924 $ 1.94
----------------- ------------------
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.
Twelve Months Ended
December 31, 2011
Income Tax Benefit Percentage of
Pre-tax Income (Expense) Pre-Tax Income
------------------- -------------------- ------------------
As Reported - GAAP
Operating Results $ 256,111 $ (11,016 ) 4.3 %
Acquisition-Related
Activities 83,296 (20,958 )
Restructuring and
Other Costs 17,883 (6,333 )
Amortization on
Purchased Intangible
Assets:
Prior to July 1, 2011 8,843 (2,949 )
Astra Tech 12,153 (3,619 )
Orthodontics Business
Continuity Costs 3,287 (1,159 )
Credit Risk
Adjustment to
Outstanding
Derivatives (1,275 ) 492
Gain on Fair Value
Adjustments at an
Unconsolidated
Affiliated Company (383 ) 116
Income Tax-Related
Adjustments - (41,008 )
------------------- -------------------- ------------------
As Adjusted - Non-
GAAP Operating
Results $ 379,915 $ (86,434 ) 22.8 %
------------------- --------------------
Twelve Months Ended
December 31, 2010
Income Tax Benefit Percentage of
Pre-tax Income (Expense) Pre-Tax Income
------------------- -------------------- ------------------
As Reported - GAAP
Operating Results $ 357,656 $ (89,225 ) 24.9 %
Restructuring and
Other Costs 10,984 (3,737 )
Amortization on
Purchased Intangible
Assets 9,045 (3,056 )
Recent Acquisition-
Related Activities 2,686 (534 )
Credit Risk
Adjustment to
Outstanding
Derivatives 1,192 (460 )
Income Tax-Related
Adjustments - 1,427
------------------- -------------------- ------------------
As Adjusted - Non-
GAAP Operating
Results $ 381,563 $ (95,585 ) 25.1 %
------------------- --------------------
For further information contact:
Derek Leckow
Vice President
Investor Relations
(717) 849-7863
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(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: DENTSPLY International Inc. via Thomson Reuters ONE
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