DENTSPLY International Inc. Reports Third Quarter 2004 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 record sales and earnings for the quarter ended September 30, 2004. 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 4.0% to $390.6 million compared to $375.5 million reported for the third quarter of 2003. Net sales, excluding precious metal content, increased 5.1% in the third quarter of 2004. Net income for the third quarter of 2004 was $46.7 million, ($.57 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). 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 was $46.3 million ($.57 per diluted share) in the 2004 quarter compared to $40.3 million ($.50 per diluted share) in the 2003 third quarter, a 14.0% increase 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. The third quarter of 2004 includes pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern charges of $2.1 million related to restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). activities and a reduction of income taxes of $2.9 million related to tax matters from prior periods. For the nine months ended September 30, 2004, net sales increased 7.9% and sales excluding precious metal content increased 8.5%. Earnings from continuing operations were $1.73 per diluted share in the first nine months of 2004, a 14.6% increase compared to the 2003 period. The results for the nine months ended September 2004 includes pretax charges of $3.2 million related to restructuring activities and a reduction of income taxes of $4.1 million related to tax matters from prior periods. Gary K. Kunkle, Vice Chairman and Chief Executive Officer, commented that, "During the third quarter we saw slowing trends in our sales in certain regions of two key markets, the 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. and Europe. We believe that these trends are short term and will not continue into 2005. Despite the temporary slow down in these regions, we are pleased to continue to deliver record earnings performance based on strong brand recognition for our key products and continued investment in new product innovations." Mr. Kunkle also stated that, "We are also pleased to announce that we continue to gain access to new technologies that have exciting opportunities in dentistry dentistry, treatment and care of the teeth and associated oral structures. Dentistry is mainly concerned with tooth decay, disease of the supporting structures, such as the gums, and faulty positioning of the teeth. . We recently completed an agreement with Doxa AB to develop and commercialize products within the dental field based upon Doxa's bioactive bi·o·ac·tive adj. Of or relating to a substance that has an effect on living tissue. bioactive having an effect on or eliciting a response from living tissue. ceramic technology. The Doxa technology is designed to induce chemical integration between the material and dentition dentition, kind, number, and arrangement of the teeth of humans and other animals. During the course of evolution, teeth were derived from bony body scales similar to the placoid scales on the skin of modern sharks. or bone structure. This is a perfect example of the kind of technology investment we are prepared to make in order to meet the future needs of dentistry. We have also accelerated our collaboration with Georgia Tech on several new potential product innovations, and during October we launched our new dental anesthetic anesthetic Agent that produces a local or general loss of sensation, including pain, and therefore is useful in surgery and dentistry. General anesthesia induces loss of consciousness, most often using hydrocarbons (e.g. , Oraqix. In total, we have launched eighteen new products through three quarters and expect to launch seven more new products during the fourth quarter of 2004." DENTSPLY will hold a conference call on Wednesday, October 27, 2004 at 8:30 AM Eastern Time. To access the call, dial 877-885-5820 (for domestic calls) and 706-643-9578 (for international calls). 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). Call I.D.: 8763464. 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 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 injectible 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 statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. regarding future events or the future financial performance of the company. Actual events or results may differ materially from those in the projections or other forward-looking statements 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, and changes in the general economic environment that could affect our business. 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. filed with the Securities and Exchange Commission.
DENTSPLY INTERNATIONAL INC.
CONSOLIDATED STATEMENTS OF INCOME
(IN THOUSANDS EXCEPT PER SHARE DATA)
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
------------------- -----------------------
2004 2003 2004 2003
--------- --------- ----------- -----------
NET SALES $390,592 $375,503 $1,231,298 $1,141,217
NET SALES - Ex Precious
Metals 345,480 328,771 1,078,271 993,855
COST OF PRODUCTS SOLD 191,548 191,702 614,496 576,579
GROSS PROFIT 199,044 183,801 616,802 564,638
% OF NET SALES 51.0% 48.9% 50.1% 49.5%
% OF NET SALES - Ex
Precious Metals 57.6% 55.9% 57.2% 56.8%
SELLING, GENERAL &
ADMINISTRATIVE EXPENSES 128,825 120,020 397,855 370,493
RESTRUCTURING COSTS 2,108 - 3,165 -
--------- --------- ----------- -----------
INCOME FROM OPERATIONS 68,111 63,781 215,782 194,145
% OF NET SALES 17.4% 17.0% 17.5% 17.0%
% OF NET SALES - Ex
Precious Metals 19.7% 19.4% 20.0% 19.5%
NET INTEREST AND OTHER
EXPENSE 5,543 4,199 16,253 15,046
--------- --------- ----------- -----------
PRE-TAX INCOME 62,568 59,582 199,529 179,099
INCOME TAXES 16,225 19,295 58,196 57,923
--------- --------- ----------- -----------
INCOME FROM CONTINUING
OPERATIONS 46,343 40,287 141,333 121,176
% OF NET SALES 11.9% 10.7% 11.5% 10.6%
% OF NET SALES - Ex
Precious Metals 13.4% 12.3% 13.1% 12.2%
INCOME FROM DISCONTINUED
OPERATIONS, NET OF TAX
(INCLUDING GAIN ON SALE
IN 2004 OF $43,031) 340 1,027 43,225 2,623
--------- --------- ----------- -----------
NET INCOME $ 46,683 $ 41,314 $ 184,558 $ 123,799
========= ========= =========== ===========
EARNINGS PER
SHARE - BASIC:
CONTINUING OPERATIONS $ 0.58 $ 0.51 $ 1.76 $ 1.54
DISCONTINUED OPERATIONS - 0.01 0.54 0.03
--------- --------- ----------- -----------
TOTAL EARNINGS PER SHARE $ 0.58 $ 0.52 $ 2.30 $ 1.57
========= ========= =========== ===========
EARNINGS PER
SHARE - DILUTIVE:
CONTINUING OPERATIONS $ 0.57 $ 0.50 $ 1.73 $ 1.51
DISCONTINUED OPERATIONS - 0.01 0.53 0.03
--------- --------- ----------- -----------
TOTAL EARNINGS PER SHARE $ 0.57 $ 0.51 $ 2.26 $ 1.54
========= ========= =========== ===========
DIVIDENDS PER SHARE $ 0.0525 $ 0.0525 $ 0.1575 $ 0.1445
WEIGHTED AVERAGE NUMBER OF
COMMON SHARES OUTSTANDING
-BASIC 80,495 78,999 80,304 78,712
-DILUTIVE 82,110 81,007 81,910 80,458
DENTSPLY INTERNATIONAL INC.
CONDENSED BALANCE SHEETS
(IN THOUSANDS)
SEPTEMBER 30, DECEMBER 31,
2004 2003
------------- ------------
ASSETS
CURRENT ASSETS:
CASH AND CASH EQUIVALENTS $ 407,350 $ 163,755
ACCOUNTS AND NOTES RECEIVABLE-TRADE, NET 241,869 241,385
INVENTORIES, NET 212,052 205,587
OTHER CURRENT ASSETS 93,687 88,463
ASSETS HELD FOR SALE - 28,262
------------- ------------
TOTAL CURRENT ASSETS 954,958 727,452
PROPERTY,PLANT AND EQUIPMENT, NET 381,091 376,211
GOODWILL, NET 958,065 963,264
IDENTIFIABLE INTANGIBLES ASSETS, NET 237,763 246,475
OTHER NONCURRENT ASSETS, NET 86,160 114,736
ASSETS HELD FOR SALE - 17,449
------------- ------------
TOTAL ASSETS $ 2,618,037 $ 2,445,587
============= ============
LIABILITIES AND STOCKHOLDERS' EQUITY:
CURRENT LIABILITIES $ 315,544 $ 327,752
LIABILITIES OF DISCONTINUED OPERATIONS - 1,269
LONG-TERM DEBT 781,960 790,202
OTHER LIABILITIES 140,726 137,016
DEFERRED INCOME TAXES 66,993 66,861
------------- ------------
TOTAL LIABILITIES 1,305,223 1,323,100
MINORITY INTEREST IN CONSOLIDATED
SUBSIDIARIES 79 418
STOCKHOLDERS' EQUITY 1,312,735 1,122,069
------------- ------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 2,618,037 $ 2,445,587
============= ============
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