YORK, Pa., Feb. 5, 2008 (PRIME NEWSWIRE) -- DENTSPLY International Inc. (Nasdaq:XRAY) today announced record sales and earnings for the three months and year ended December 31, 2007.
FINANCIAL RESULTS
Three Months Ended December 31, 2007
Net sales in the fourth quarter of 2007 increased 14.9% to $541.5 million compared to $471.3 million reported in the fourth quarter of 2006. Net sales, excluding precious metal content, increased 16.1% in the fourth quarter of 2007. Sales of specialty products, including implants, endodontics, and orthodontic products enjoyed double-digit sales growth in the quarter. Sales growth reflects the impact of improved organic growth, the benefit of acquisitions completed in 2007, and additional exchange impact associated with the weaker U.S. dollar.
Net income for the fourth quarter of 2007 was $70.0 million, or $0.45 per diluted share, compared to a net income of $64.9 million, or $0.42 per diluted share, in the fourth quarter of 2006. Net income in the fourth quarter of 2007 includes charges, net of tax, for restructuring and other related items of $1.0 million, ($0.01) per diluted share. The fourth quarter of 2007 also includes a net reduction to income tax expense of $2.5 million, $0.02 per diluted share, from the resolution of certain tax matters. The fourth quarter of 2006 included charges, net of tax, for restructuring and other related items of $1.0 million, ($0.01) per diluted share, and a net reduction of income tax expense of $8.8 million, $0.06 per diluted share, related to the resolution of certain tax matters.
On an adjusted basis, earnings, excluding restructuring and other related items and tax adjustments, which constitute a non-GAAP measure, were $68.5 million or $0.44 per diluted share in the fourth quarter of 2007, compared to $57.1 million or $0.37 per diluted share in the fourth quarter of 2006, an increase of 18.9% in earnings per diluted share. For a reconciliation of this non-GAAP measure to earnings per share calculated according to GAAP, see the attached table.
Year Ended December 31, 2007
Sales hit a new milestone in 2007, exceeding $2 billion for the first time. Sales increased 11.0% to $2,009.8 million compared to $1,810.5 million in 2006. Sales, excluding precious metals, increased 12.1% for the year.
Net income for 2007 was $259.7 million, or $1.68 per diluted share, compared to $223.7 million or $1.41 per diluted share in 2006. This represents a 19.1% increase in diluted earnings per share.
The 2007 earnings of $259.7 million, or $1.68 per diluted share included the following items:
1. Restructuring and other related expenses of $10.5 million
($6.7 million after-tax) or ($0.04) per diluted share.
2. Net reduction of income tax expense of $9.9 million $0.06 per
diluted share related to changes in statutory tax rates in
Germany and the favorable resolution of certain tax matters.
The 2006 earnings of $223.7 million, or $1.41 per diluted share, included the following items:
1. Restructuring and other related expenses of $7.8 million
($5.0 million after-tax) or ($0.03) per diluted share.
2. Net reduction of income tax expense of $4.8 million $0.03 per
diluted share related to the resolution of certain tax
matters.
For comparability analysis, net income, excluding restructuring and other related items and tax adjustments for the years ending 2007 and 2006 (a non-GAAP measure), was $256.4 million or $1.66 per diluted share for 2007, compared to $224.0 million or $1.42 per diluted share in 2006, an increase of 16.9% in diluted earnings per share. A reconciliation of this non-GAAP measure to earnings per share calculated according to GAAP is provided in the attached table.
2007 Results & 2008 Outlook
Bret Wise, Chairman and Chief Executive Officer, commented, "We are pleased with the acceleration of our sales growth and earnings performance in 2007, as many of the strategic initiatives implemented in 2006 and 2007 began to contribute to results. During the year, we achieved an important milestone with sales exceeding $2 billion for the first time, just six years after first reaching $1 billion in sales. Our broad product portfolio, focus on consumables, and global footprint position us well for future success. Despite the volatility in the broader global markets, we remain confident in our ability to grow and experience another year of solid performance in 2008. For full year 2008, we believe that internal sales growth will range from 5.5% - 6.5% and total sales growth should approach or exceed 10% as we continue to benefit from acquisitions and current foreign exchange rates. We also anticipate earnings for 2008 to be in the range of $1.83 to $1.88 per diluted share."
ADDITIONAL INFORMATION
A conference call has been scheduled for Wednesday, February 6, 2008 at 8:30 a.m. Eastern Time. A live broadcast is available through Shareholder.com by accessing DENTSPLY's website at www.dentsply.com. The Conference ID # is 7468500. In order to participate in the call, dial (888) 259-8552 (for domestic calls) and (913) 312-0838 (for international calls). At that time, you will be able to discuss the Fourth 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 # 7468500.
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.
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.
The DENTSPLY International Inc. logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=4306
DENTSPLY INTERNATIONAL INC.
CONSOLIDATED STATEMENTS OF INCOME
(IN THOUSANDS EXCEPT PER SHARE DATA)
THREE MONTHS ENDED TWELVE MONTHS ENDED
DECEMBER 31, DECEMBER 31,
----------------------- -----------------------
2007 2006 2007 2006
----------- ----------- ----------- -----------
NET SALES $ 541,504 $ 471,331 $2,009,833 $1,810,496
NET SALES -
Ex-Precious Metals 489,193 421,290 1,819,899 1,623,074
COST OF PRODUCTS SOLD 268,773 230,521 969,050 881,485
GROSS PROFIT 272,731 240,810 1,040,783 929,011
% OF NET SALES 50.4% 51.1% 51.8% 51.3%
% OF NET SALES -
Ex-Precious Metals 55.8% 57.2% 57.2% 57.2%
SELLING, GENERAL &
ADMINISTRATIVE
EXPENSES 173,496 159,532 675,365 606,410
RESTRUCTURING AND
OTHER OPERATING
COSTS 1,638 1,623 10,527 7,807
----------- ----------- ----------- -----------
INCOME FROM OPERATIONS 97,597 79,655 354,891 314,794
% OF NET SALES 18.0% 16.9% 17.7% 17.4%
% OF NET SALES -
Ex-Precious Metals 20.0% 18.9% 19.5% 19.4%
NET INTEREST AND
OTHER NON-OPERATING
EXPENSE (INCOME) 399 578 (3,244) (43)
----------- ----------- ----------- -----------
PRE-TAX INCOME 97,198 79,077 358,135 314,837
INCOME TAXES 27,168 14,128 98,481 91,119
----------- ----------- ----------- -----------
NET INCOME 70,030 64,949 259,654 223,718
% OF NET SALES 12.9% 13.8% 12.9% 12.4%
% OF NET SALES -
Ex-Precious Metals 14.3% 15.4% 14.3% 13.8%
EARNINGS PER SHARE
-BASIC $ 0.46 $ 0.43 $ 1.71 $ 1.44
-DILUTIVE $ 0.45 $ 0.42 $ 1.68 $ 1.41
DIVIDENDS PER SHARE $ 0.0450 $ 0.0400 $ 0.1650 $ 0.1450
WEIGHTED AVERAGE
NUMBER OF COMMON
SHARES OUTSTANDING
-BASIC 151,173 152,211 151,707 155,229
-DILUTIVE 154,538 155,033 154,721 158,271
DENTSPLY INTERNATIONAL INC.
CONDENSED BALANCE SHEETS
(IN THOUSANDS)
DECEMBER 31, DECEMBER 31,
2007 2006
---------- ----------
ASSETS
CURRENT ASSETS:
CASH AND CASH EQUIVALENTS $ 169,384 $ 65,064
SHORT TERM INVESTMENTS 146,939 79
ACCOUNTS AND NOTES RECEIVABLE-TRADE, NET 307,622 290,791
INVENTORIES, NET 258,032 232,441
OTHER CURRENT ASSETS 100,045 129,816
---------- ----------
TOTAL CURRENT ASSETS 982,022 718,191
PROPERTY,PLANT AND EQUIPMENT, NET 371,409 329,616
IDENTIFIABLE INTANGIBLE ASSETS, NET 76,167 67,648
GOODWILL, NET 1,127,420 995,382
OTHER NONCURRENT ASSETS, NET 118,551 70,513
---------- ----------
TOTAL ASSETS $2,675,569 $2,181,350
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY:
CURRENT LIABILITIES $ 312,411 $ 311,434
LONG-TERM DEBT 482,063 367,161
DEFERRED INCOME TAXES 60,547 53,191
OTHER LIABILITIES 304,146 175,507
---------- ----------
TOTAL LIABILITIES 1,159,167 907,293
MINORITY INTEREST IN
CONSOLIDATED SUBSIDIARIES 296 222
STOCKHOLDERS' EQUITY 1,516,106 1,273,835
---------- ----------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $2,675,569 $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 December 31, 2007 Percentage
of Net Sales
Operating Ex-Precious
Income Metals
----------- -----------
Income from Operations $ 97,597 20.0%
Restructuring, Impairment and Other Costs 1,638 0.3%
----------- -----------
Adjusted Non-GAAP Operating Earnings $ 99,235 20.3%
=========== ===========
Three Months Ended December 31, 2006 Percentage
of Net Sales
Operating Ex-Precious
Income Metals
----------- -----------
Income from Operations $ 79,655 18.9%
Restructuring, Impairment and Other Costs 1,623 0.4%
----------- -----------
Adjusted Non-GAAP Operating Earnings $ 81,278 19.3%
=========== ===========
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 December 31, 2007
Adjusted Diluted
Income Per Share
------------ -------------
Net Income $ 70,030 $ 0.45
Restructuring, Impairment and Other Costs,
Net of Tax 965 0.01
Income Tax Related Adjustments (2,493) (0.02)
------------ -------------
Adjusted Non-GAAP Earnings $ 68,502 $ 0.44
============ =============
Three Months Ended December 31, 2006
Adjusted Diluted
Income Per Share
------------ -------------
Net Income $ 64,949 $ 0.42
Restructuring, Impairment and Other Costs,
Net of Tax 958 0.01
Income Tax Related Adjustments (8,776) (0.06)
------------ -------------
Adjusted Non-GAAP Earnings $ 57,131 $ 0.37
============ =============
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.
Twelve Months Ended December 31, 2007
Percentage
of Net Sales
Operating Ex-Precious
Income Metals
----------- -------------
Income from Operations $ 354,891 19.5%
Restructuring, Impairment and Other Costs 10,527 0.6%
----------- -------------
Adjusted Non-GAAP Operating Earnings $ 365,418 20.1%
=========== =============
Twelve Months Ended December 31, 2006
Percentage
of Net Sales
Operating Ex-Precious
Income Metals
----------- -------------
Income from Operations $ 314,794 19.4%
Restructuring, Impairment and Other Costs 7,807 0.5%
----------- -------------
Adjusted Non-GAAP Operating Earnings $ 322,601 19.9%
=========== =============
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.
Twelve Months Ended December 31, 2007
Adjusted Diluted
Income Per Share
---------- -----------
Net Income $ 259,654 $ 1.68
Restructuring, Impairment and Other Costs,
Net of Tax 6,675 0.04
Income Tax Related Adjustments (9,893) (0.06)
---------- -----------
Adjusted Non-GAAP Earnings $ 256,436 $ 1.66
========== ===========
Twelve Months Ended December 31, 2006
Adjusted Diluted
Income Per Share
---------- -----------
Net Income $ 223,718 $ 1.41
Restructuring, Impairment and Other Costs,
Net of Tax 5,017 0.03
Income Tax Related Adjustments (4,765) (0.03)
Rounding 0.01
---------- -----------
Adjusted Non-GAAP Earnings $ 223,970 $ 1.42
========== ===========