DENTSPLY International Inc. Reports Second Quarter 2005 Sales and Earnings.YORK, Pa. -- DENTSPLY International Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :XRAY) today announced sales and earnings for the quarter ended June 30, 2005. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight increased 4.8% to $444.8 million compared to $424.4 million reported for the second quarter of 2004. Net sales, excluding precious metal content, increased 7.4% in the second quarter of 2005. Solid sales in a number of product areas and through most geographic regions continued to drive the business forward. The German market remained weak from the impact of the changes in reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. for dental procedures, however began showing some signs of improvement. Net income from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the for the second quarter of 2005 was $57.9 million, or $0.71 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, an increase of 18.3% in diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of from continuing operations compared to income from continuing operations of $49.2 million, or $0.60 per diluted share in the second quarter of 2004. The second quarter includes a net reduction of income tax expense of $1.8 million ($0.02 per diluted share) related to the settlement of audits of tax returns associated with prior periods. Gary Kunkle, Chairman and Chief Executive Officer, stated that, "Our continuous flow of new products remains a driving force in growing our businesses around the world. We have made considerable progress in our major product categories and markets during the second quarter. The German market, however, remains weak relative to 2004, but has shown significant improvement versus the first quarter of 2005." Mr. Kunkle also stated, "We are very pleased with the progress we have made during this period. This gives us further confidence in re-confirming our year-end 2005 earnings guidance of $2.59-2.63 per dilutive share. The Company is also anticipating taking advantage of repatriating foreign earnings under Section 965 of the Internal Revenue Code The Internal Revenue Code is the body of law that codifies all federal tax laws, including income, estate, gift, excise, alcohol, tobacco, and employment taxes. These laws constitute title 26 of the U.S. Code (26 U.S.C.A. § 1 et seq. . However, we are still finalizing our plans which include the size and timing of any repatriation Repatriation The process of converting a foreign currency into the currency of one's own country. Notes: If you are American, converting British Pounds back to U.S. dollars is an example of repatriation. . The tax impact of this potential repatriation is not included in our current earnings guidance for the year." DENTSPLY will hold a conference call on Wednesday, July 27, 2005 at 8:30 AM Eastern Time. To access the call, dial 877-885-5820 (for domestic calls) and 706-643-9578 (for international calls). Conference I.D.: 7802293. This conference call will be broadcast live on the Internet at: www.dentsply.com. An audio replay of the conference call will be available for two weeks. To access the replay, please dial 800-642-1687 (for domestic calls) and 706-645-9291 (for international calls). 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 pros·thet·ics n. The branch of medicine or surgery that deals with the production and application of artificial body parts. pros , precious metal dental alloys This is a list of alloys for which an article exists in Wikipedia (or is proposed but not yet written). They are grouped by base metal, in order of increasing atomic number. Within these headings they are in no particular order. , dental ceramics, endodontic Endodontic Pertaining to the inside structures of the tooth, including the dental pulp and tooth root, and the periapical tissue surrounding the root. Mentioned in: Root Canal Treatment endodontic instruments and materials, prophylaxis prophylaxis (prō'fĭlăk`sĭs), measures designed to prevent the occurrence of disease or its dissemination. Some examples of prophylaxis are immunization against serious diseases such as smallpox or diphtheria; quarantine to confine paste, dental sealants Dental sealants are a dental treatment consisting of applying a plastic material to one or more teeth, for the intended purpose of preventing dental caries (cavities) or other forms of tooth decay. , ultrasonic ultrasonic /ul·tra·son·ic/ (-son´ik) beyond the upper limit of perception by the human ear; relating to sound waves having a frequency of more than 20,000 Hz. ul·tra·son·ic adj. 1. scalers, and crown and bridge materials; the leading United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. manufacturer and distributor of dental handpieces, dental x-ray film Noun 1. X-ray film - photographic film used to make X-ray pictures bitewing - a dental X-ray film that can be held in place by the teeth during radiography holders, film mounts and bone substitute/grafting materials; and a leading worldwide manufacturer or distributor of dental injectable in·ject·a·ble adj. Capable of being injected. Used of a drug. n. A drug or medicine that can be injected. anesthetics Anesthetics Drugs or methodologies used to make a body area free of sensation or pain. Mentioned in: Appendectomy , impression materials, orthodontic orthodontic (ôr´th  dän´tik),adj appliances, dental cutting instruments and dental implants dental implant n. An artificial tooth that is anchored in the gums or jawbone to replace a missing tooth. dental implant . 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 The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and 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, outcome of litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called 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 Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and its subsequent periodic reports on Forms 10-Q filed with the Securities and Exchange Commission.
DENTSPLY INTERNATIONAL INC.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED, IN THOUSANDS EXCEPT PER SHARE DATA)
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
------------------- -------------------
2005 2004 2005 2004
--------- --------- --------- ---------
NET SALES $444,834 $424,408 $851,809 $838,767
NET SALES - Ex Precious Metals 400,759 373,181 770,095 731,770
COST OF PRODUCTS SOLD 217,551 212,352 415,585 422,819
GROSS PROFIT 227,283 212,056 436,224 415,948
% OF NET SALES 51.1% 50.0% 51.2% 49.6%
% OF NET SALES - Ex Precious
Metals 56.7% 56.8% 56.6% 56.8%
SELLING, GENERAL &
ADMINISTRATIVE EXPENSES 146,376 134,158 284,924 267,220
RESTRUCTURING (INCOME) COSTS (228) 333 40 1,057
--------- --------- --------- ---------
INCOME FROM OPERATIONS 81,135 77,565 151,260 147,671
% OF NET SALES 18.2% 18.3% 17.8% 17.6%
% OF NET SALES - Ex Precious
Metals 20.2% 20.8% 19.6% 20.2%
NET INTEREST AND OTHER EXPENSE 682 5,214 457 10,710
--------- --------- --------- ---------
PRE-TAX INCOME 80,453 72,351 150,803 136,961
INCOME TAXES 22,560 23,129 43,861 41,971
--------- --------- --------- ---------
INCOME FROM CONTINUING
OPERATIONS 57,893 49,222 106,942 94,990
% OF NET SALES 13.0% 11.6% 12.6% 11.3%
% OF NET SALES - Ex Precious
Metals 14.4% 13.2% 13.9% 13.0%
(LOSS) INCOME FROM
DISCONTINUED OPERATIONS, NET
OF TAX (INCLUDING GAIN ON
SALE IN 2004 OF $43,031) - (179) - 42,885
--------- --------- --------- ---------
NET INCOME $ 57,893 $ 49,043 $106,942 $137,875
========= ========= ========= =========
EARNINGS PER SHARE - BASIC:
CONTINUING OPERATIONS $ 0.72 $ 0.61 $ 1.33 $ 1.18
DISCONTINUED OPERATIONS - - - 0.54
--------- --------- --------- ---------
TOTAL EARNINGS PER SHARE $ 0.72 $ 0.61 $ 1.33 $ 1.72
========= ========= ========= =========
EARNINGS PER SHARE - DILUTIVE:
CONTINUING OPERATIONS $ 0.71 $ 0.60 $ 1.31 $ 1.16
DISCONTINUED OPERATIONS - - - 0.53
--------- --------- --------- ---------
TOTAL EARNINGS PER SHARE $ 0.71 $ 0.60 $ 1.31 $ 1.69
========= ========= ========= =========
DIVIDENDS PER SHARE $ 0.0600 $ 0.0525 $ 0.1200 $ 0.1050
WEIGHTED AVERAGE NUMBER OF
COMMON SHARES OUTSTANDING
-BASIC 80,137 80,493 80,418 80,208
-DILUTIVE 81,608 82,089 81,941 81,796
DENTSPLY INTERNATIONAL INC.
CONDENSED BALANCE SHEETS
(UNAUDITED, IN THOUSANDS)
JUNE 30, DECEMBER 31,
2005 2004
----------- ------------
ASSETS
CURRENT ASSETS:
CASH AND CASH EQUIVALENTS $ 365,675 $ 506,369
ACCOUNTS AND NOTES RECEIVABLE-TRADE, NET 264,637 238,873
INVENTORIES, NET 224,224 213,709
OTHER CURRENT ASSETS 92,592 97,458
----------- ------------
TOTAL CURRENT ASSETS 947,128 1,056,409
PROPERTY,PLANT AND EQUIPMENT, NET 378,114 407,527
GOODWILL, NET 954,802 996,262
IDENTIFIABLE INTANGIBLES ASSETS, NET 239,052 258,084
OTHER NONCURRENT ASSETS, NET 53,226 79,863
----------- ------------
TOTAL ASSETS $2,572,322 $ 2,798,145
=========== ============
LIABILITIES AND STOCKHOLDERS' EQUITY:
CURRENT LIABILITIES $ 373,409 $ 404,607
LONG-TERM DEBT 658,077 779,940
OTHER LIABILITIES 108,145 110,829
DEFERRED INCOME TAXES 64,381 58,196
----------- ------------
TOTAL LIABILITIES 1,204,012 1,353,572
MINORITY INTEREST IN CONSOLIDATED
SUBSIDIARIES 603 600
STOCKHOLDERS' EQUITY 1,367,707 1,443,973
----------- ------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $2,572,322 $ 2,798,145
=========== ============
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