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NEWS
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Information
Contact:
Bret W. Wise FOR IMMEDIATE RELEASE
Senior Vice President and
Chief Financial Officer
(717) 849-4718
DENTSPLY International INC.
REPORTS RECORD FIRST QUARTER SALES AND EARNINGS
York, PA - April 22, 2003 -- DENTSPLY International Inc. (NASDAQ
-XRAY) today announced record sales and earnings for the first
quarter of 2003. Sales increased 11.6% to $396.2 million
compared to $354.9 million in 2002 while sales excluding precious
metals rose 11.9% to $341.8 million.
Net income for the first quarter of 2003 was $38.3 million, an
increase of 15.6% compared to the 2002 period. Diluted earnings
per share was $.48 for the quarter, a 14.3% increase compared to
the $.42 per share reported in 2002. The 2002 quarter included a
$2.0 million benefit from the reversal of a restructuring reserve
which added $.02 per share to earnings in the 2002 period.
John C. Miles, II, Chairman and Chief Executive Officer, commented
that "the Company is continuing to benefit from several new
product introductions. Both our Cercon Smart Ceramic restorative
product and our Eclipse Prosthetic Resin System are experiencing
rapid growth and strong support from dentists and laboratory
customers. In January we introduced our Aquasil Ultra impression
material in the United States and have already successfully
converted approximately 8,000 new users to this revolutionary
material - a spectacular product launch. In addition, our new
In-Ovation-R and Mystique orthodontic brackets are experiencing
extraordinary growth. Most importantly, DENTSPLY has a very full
product pipeline and numerous new products that we expect to
commercialize in the second and third quarters of this year. The
success of our existing products combined with the potential of
upcoming product introductions positions us very well for
continued growth driven by product innovation."
DENTSPLY Conference Call Information:
DENTSPLY will hold a conference call on Wednesday, April 23, 2003
at 10:00 a.m. (TZ: Eastern). To access the call, please dial
domestic (877) 885-5820 and international (706) 643-9578. 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
domestic (800) 642-1687 and international (706) 645-9291. Call
I.D. : 9498761.
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 x-ray
equipment, dental handpieces, intraoral cameras, dental x-ray film
holders, film mounts and bone substitute/grafting materials; and a
leading worldwide manufacturer or distributor of dental injectible
anesthetics, impression materials, orthodontic appliances, dental
cutting instruments and dental implants. 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 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 ability to continue to generate sufficient
cash flow to pay down debt as planned, the continued strength of
dental markets, the timing, success and market reception for our
new product introductions, 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 filed with the Securities and
Exchange Commission.
DENTSPLY INTERNATIONAL INC.
CONSOLIDATED STATEMENTS OF INCOME
(IN THOUSANDS EXCEPT PER SHARE DATA)
THREE MONTHS ENDED
March 31
-----------------------
2003 2002
---------- ---------
NET SALES $ 396,187 $ 354,868
NET SALES - ex Precious Metals 341,838 305,568
COST OF PRODUCTS SOLD 206,116 185,496
GROSS PROFIT 190,071 169,372
% OF NET SALES 48.0% 47.7%
% OF NET SALES - ex Precious Metals 55.6% 55.4%
SELLING, GENERAL &
ADMINISTRATIVE EXPENSES 128,061 114,416
RESTRUCTURING (INCOME)/COSTS 0 (1,957)
--------- ---------
INCOME FROM OPERATIONS 62,010 56,913
% OF NET SALES 15.7% 16.0%
% OF NET SALES - ex Precious Metals 18.1% 18.6%
NET INTEREST AND
OTHER EXPENSE 5,290 6,697
--------- ---------
PRE-TAX INCOME 56,720 50,216
INCOME TAXES 18,453 17,120
--------- ---------
NET INCOME $ 38,267 $ 33,096
% OF NET SALES 9.7% 9.3%
% OF NET SALES - ex Precious Metals 11.2% 10.8%
EARNINGS PER SHARE-BASIC $ 0.49 $ 0.42
-DILUTIVE $ 0.48 $ 0.42
DIVIDENDS PER SHARE $ 0.046 $ 0.046
WEIGHTED AVERAGE
NUMBER OF COMMON
SHARES OUTSTANDING-BASIC 78,442 77,947
-DILUTIVE 80,007 79,621
DENTSPLY INTERNATIONAL INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
MARCH 31, 2003 DECEMBER 31, 2002
--------------- ----------------
ASSETS
CURRENT ASSETS:
CASH AND CASH EQUIVALENTS $ 46,178 $ 25,652
ACCOUNTS AND NOTES RECEIVABLE-TRADE, NET 228,857 221,262
INVENTORIES, NET 228,903 214,492
OTHER CURRENT ASSETS 73,914 79,595
TOTAL CURRENT ASSETS 577,852 541,001
PROPERTY,PLANT AND EQUIPMENT, NET 329,014 313,178
GOODWILL, NET 918,840 898,497
IDENTIFIABLE INTANGIBLES ASSETS, NET 238,094 236,009
OTHER ASSETS, NET 125,098 98,348
TOTAL ASSETS $2,188,898 $2,087,033
LIABILITIES AND STOCKHOLDERS' EQUITY:
CURRENT LIABILITIES $ 370,871 $ 365,745
LONG-TERM DEBT 797,627 769,823
OTHER NONCURRENT LIABILITIES 91,845 87,239
DEFERRED INCOME TAXES 30,707 27,039
TOTAL LIABILIITIES 1,291,050 1,249,846
MINORITY INTEREST IN CONSOLIDATED SUBSIDIARIES 1,335 1,259
STOCKHOLDERS' EQUITY 896,513 835,928
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $2,188,898 $2,087,033