Dentsply International Inc. Announces Record 1999 Year End and Fourth Quarter Results.Business Editors YORK York, former name of Toronto, Canada York, Ont.: see Toronto, Ont., Canada. York, city, England York, city (1991 pop. 123,126) and district, North Yorkshire, N England, at the confluence of the Ouse and Foss rivers. , Pa.--(BUSINESS WIRE)--Jan. 20, 2000 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 year ended December 31, 1999. Sales increased 4.5% to $830.9 million from $795.1 million in 1998. Net income for 1999 was $89.9 million, or $1.70 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. earnings per common share, an increase of 13.3% from $1.50 in 1998, excluding pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern 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). and other costs of $71.5 million in 1998. Diluted earnings per common share of $1.70 in 1999 compared to $.65 in 1998, including the restructuring and other costs. Sales for the fourth quarter ended December 31, 1999 were $221.6 million, up slightly from $220.3 million in the year earlier quarter. Net income for the fourth quarter set a new record of $28.5 million or $.54 diluted earnings per common share, an increase of 17.4% compared to $.46 in the year earlier quarter, excluding restructuring costs in 1998. Including the 1998 restructuring charge restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. , there was a diluted loss per common share of $.04 in the fourth quarter of 1998 compared to $.54 diluted earnings per common share in the same period of 1999. John C. Miles II, Chairman and Chief Executive Officer, said &uot;We are pleased with our record performance for 1999. This was a year of many accomplishments including the completion of two restructuring projects, improved inventory turns, improvements in manufacturing processes, substantially improved cash flow, completion of the worldwide Information Technology System and a heavy launch of new products. Sales, however, were adversely impacted during the year by foreign currency exchange rates, a soft German market and the effects of dealer consolidations. We believe both the soft German market and the effects of dealer consolidations are behind us. We therefore expect a strong and successful year in 2000 as we work towards maximizing top line sales growth and continue to work on operating initiatives to improve operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: and positively impact key balance sheet measurements.&uot; 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 , 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 x-ray X-ray Electromagnetic radiation of extremely short wavelength (100 nanometres to 0.001 nanometre) produced by the deceleration of charged particles or the transitions of electrons in atoms. equipment, 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 United States manufacturer or distributor of impression materials, orthodontic orthodontic (ôr´th  dän´tik),adj appliances, dental cutting instruments, intraoral in·tra·o·ral adj. Within the mouth. intraoral (in´tr cameras and dental operatory software systems. The Company distributes its dental products in over 100 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. concerning sales and earnings expectations and other matters. Actual results could differ materially from these expectations as a result of certain risk factors. For a detailed description of these risk factors, please refer to the Company's Annual Report on Form 10K for the year ended December 31, 1998.
DENTSPLY INTERNATIONAL INC.
CONSOLIDATED STATEMENTS OF INCOME
(IN THOUSANDS, EXCEPT PER SHARE DATA)
THREE MONTHS ENDED TWELVE MONTHS ENDED
DECEMBER 31, DECEMBER 31,
% %
1999 1998 CHANGE 1999 1998 CHANGE
-------- -------- ------ -------- -------- ------
NET SALES $221,599 $220,295 0.6% $830,864 $795,122 4.5%
COST OF PRODUCTS
SOLD 106,976 106,171 0.8% 398,887 378,699 5.3%
-------- -------- -------- --------
GROSS PROFIT 114,623 114,124 0.4% 431,977 416,423 3.7%
% OF NET SALES 51.7% 51.8% 52.0% 52.4%
SELLING, GENERAL
AND
ADMINISTRATIVE
EXPENSE 70,363 71,594 (1.7)% 282,360 275,071 2.6%
RESTRUCTURING AND
OTHER COSTS - 42,500 N/C - 71,500 N/C
-------- -------- -------- --------
OPERATING INCOME 44,260 30 N/C 149,617 69,852 114.2%
% OF NET SALES 20.0% 0.0% 18.0% 8.8%
NET INTEREST AND
OTHER EXPENSE 1,217 4,394 (72.3)% 11,598 14,751 (21.4)%
-------- -------- -------- --------
INCOME BEFORE
INCOME TAXES 43,043 (4,364) N/C 138,019 55,101 150.5%
PROVISION FOR
INCOME TAXES 14,584 (1,981) N/C% 48,156 20,276 137.5%
-------- -------- -------- --------
NET INCOME $ 28,459 $ (2,383) N/C $ 89,863 $ 34,825 158.0%
% OF NET SALES 12.8% (1.1)% 10.8% 4.4%
EARNINGS PER
COMMON SHARE
- BASIC $ .54 $ (.04) N/C $ 1.70 $ .65 161.5%
- DILUTED $ .54 $ (.04) N/C $ 1.70 $ .65 161.5%
CASH DIVIDENDS
DECLARED
PER COMMON
SHARE $ .0625 $ .0563 11.1% $ .2313 $ .2100 10.1%
WEIGHTED AVERAGE
COMMON SHARES
OUTSTANDING
- BASIC 52,813 52,498 0.6% 52,754 53,330 (1.1)%
- DILUTED 52,902 52,672 0.4% 52,911 53,597 (1.3)%
N/C - not calculable
DENTSPLY INTERNATIONAL INC.
CONDENSED BALANCE SHEETS
(IN THOUSANDS)
DECEMBER 31, DECEMBER 31,
1999 1998
----------- -----------
ASSETS
CURRENT ASSETS:
CASH AND CASH EQUIVALENTS $ 7,276 $ 8,690
ACCOUNTS AND NOTES RECEIVABLE-TRADE, NET 127,911 134,218
INVENTORIES 135,672 139,235
OTHER CURRENT ASSETS 43,555 40,309
-------- --------
TOTAL CURRENT ASSETS 314,414 322,452
PROPERTY, PLANT AND EQUIPMENT, NET 180,153 158,998
OTHER NONCURRENT ASSETS, NET 363,617 413,872
-------- --------
TOTAL ASSETS $858,184 $895,322
-------- --------
LIABILITIES AND STOCKHOLDERS' EQUITY:
CURRENT LIABILITIES $175,584 $194,376
LONG-TERM DEBT 145,312 217,491
OTHER LIABILITIES 65,918 66,916
MINORITY INTERESTS IN CONSOLIDATED
SUBSIDIARIES 2,498 2,738
STOCKHOLDERS' EQUITY 468,872 413,801
-------- --------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $858,184 $895,322
-------- --------
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