DENTSPLY
NEWS
For further
Information
Contact:
Bret W. Wise FOR IMMEDIATE RELEASE
Senior Vice President and
Chief Financial Officer
(717) 849-4718
DENTSPLY INTERNATIONAL INC.
REPORTS RECORD THIRD QUARTER
SALES AND EARNINGS
York, PA - October 21, 2003 -- DENTSPLY International Inc. (NASDAQ -XRAY)
today announced sales for the third quarter 2003 were $400.4 million, an
increase of 9.4% compared to $366.0 million in the third quarter 2002. Sales
excluding precious metal content rose 9.1% to $353.7 million compared to
$324.1 million in the 2002 period. Net income for the third quarter 2003 was
$41.3 million, an increase of 15.5% over the prior period and earnings per
diluted share were $.51, a 13.3% increase over 2002. The third quarter of
2002 included a $.01 per diluted share gain from an insurance settlement for
a fire at one of DENTSPLY's European facilities.
Sales for the nine months ended September 30, 2003 were $1,214.6 million, a
10.2% increase compared to $1,101.9 million for the 2002 period. Sales
excluding precious metal content rose 10.6% to $1,067.2 million in the nine
months ended September 30, 2003. Net income for the nine month period in
2003 was $123.8 million, a 17.1% increase over the prior period and earnings
per diluted share were $1.54, a 16.7% increase compared to 2002.
John C. Miles, II, Chairman and Chief Executive Officer, commented that "We
are pleased that the results through the third quarter have positioned the
Company for another successful year. During this quarter, the Company has
been very active in preparing new products that we expect to launch in the
fourth quarter, including an electric handpiece, LED curing light, a new
dental implant surface treatment, dust-free investments, and several other
line extensions throughout our product portfolio. In addition, we continue
to proceed with the regulatory steps necessary to bring Oraqix, our
revolutionary new anesthetic product, to market early in 2004. Product
innovation will continue to be a primary driver of our growth in 2004 and
beyond."
DENTSPLY Conference Call Information:
DENTSPLY will hold a conference call on Wednesday, October 22, 2003 at 8:30
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. 2969348.
A transcript of the conference call will also be available through the
Company's web site five days after the call.
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 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 NINE MONTHS ENDED
September 30, September 30,
------------------------------ ------------------------------
2003 2002 2003 2002
-------------- ------------- -------------- -------------
NET SALES $400,420 $366,037 $1,214,556 $1,101,918
NET SALES - ex PM $353,689 $324,070 $1,067,195 $964,856
COST OF PRODUCTS SOLD 209,186 187,105 628,141 569,074
GROSS PROFIT 191,234 178,932 586,415 532,844
% OF NET SALES 47.8% 48.9% 48.3% 48.4%
% OF NET SALES - ex PM 54.1% 55.2% 54.9% 55.2%
SELLING, GENERAL &
ADMINISTRATIVE EXPENSES 125,887 118,554 388,032 352,753
RESTRUCTURING (INCOME)/COSTS 0 (778) 0 (2,779)
-------------- ------------- -------------- -------------
INCOME FROM OPERATIONS 65,347 61,156 198,383 182,870
% OF NET SALES 16.3% 16.7% 16.3% 16.6%
% OF NET SALES - ex PM 18.5% 18.9% 18.6% 19.0%
NET INTEREST AND
OTHER EXPENSE (INCOME) 4,202 9,261 15,035 24,975
-------------- ------------- -------------- -------------
PRE-TAX INCOME 61,145 51,895 183,348 157,895
INCOME TAXES 19,831 16,129 59,549 52,213
-------------- ------------- -------------- -------------
NET INCOME $41,314 $35,766 $123,799 $105,682
% OF NET SALES 10.3% 9.8% 10.2% 9.6%
% OF NET SALES - ex PM 11.7% 11.0% 11.6% 11.0%
EARNINGS PER SHARE-BASIC $0.52 $0.46 $1.57 $1.35
-DILUTIVE $0.51 $0.45 $1.54 $1.32
DIVIDENDS PER SHARE $0.0525 $0.0460 $0.1445 $0.1380
WEIGHTED AVERAGE
NUMBER OF COMMON
SHARES OUTSTANDING-BASIC 78,999 78,247 78,712 78,120
-DILUTIVE 81,007 80,127 80,458 79,949
DENTSPLY INTERNATIONAL INC.
CONDENSED BALANCE SHEETS
(IN THOUSANDS)
SEPTEMBER 30, DECEMBER 31,
2003 2002
ASSETS
CURRENT ASSETS:
CASH AND CASH EQUIVALENTS $ 91,010 $ 25,652
ACCOUNTS AND NOTES RECEIVABLE-TRADE, NET 242,937 221,262
INVENTORIES, NET 230,054 214,492
OTHER CURRENT ASSETS 79,813 79,595
TOTAL CURRENT ASSETS 643,814 541,001
PROPERTY,PLANT AND EQUIPMENT, NET 359,425 313,178
GOODWILL, NET 953,403 898,497
IDENTIFIABLE INTANGIBLES ASSETS, NET 235,859 236,009
OTHER NONCURRENT ASSETS, NET 139,904 98,348
TOTAL ASSETS $2,332,405 $2,087,033
LIABILITIES AND STOCKHOLDERS' EQUITY:
CURRENT LIABILITIES $ 407,704 $ 365,745
LONG-TERM DEBT 783,392 769,823
OTHER LIABILITIES 91,717 87,239
DEFERRED INCOME TAXES 14,630 27,039
TOTAL LIABILITIES 1,297,443 1,249,846
MINORITY INTEREST IN CONSOLIDATED SUBSIDIARIES 607 1,259
STOCKHOLDERS' EQUITY 1,034,355 835,928
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $2,332,405 $2,087,033