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 Second Quarter 2004 Sales and Earnings
York, PA - July 26, 2004 -- DENTSPLY International Inc.
(NASDAQ-XRAY) today announced record sales and earnings for the
quarter ended June 30, 2004. Net sales increased 7.8% to $425.3
million compared to $394.5 million reported for the second
quarter of 2003. Net sales, excluding precious metal content,
increased 7.3% in the second quarter of 2004.
Net income for the second quarter of 2004 was $49.0 million, or
$.60 per diluted share. Income from continuing operations was
$49.2 million ($.60 per diluted share) in the 2004 quarter
compared to $43.5 million ($.54 per diluted share) in the 2003
second quarter, a 11.1% increase in diluted earnings per share
from continuing operations.
For the six months ended June 30, 2004, net sales increased 9.8%
and sales excluding precious metal content increased 10.2%.
Earnings from continuing operations were $1.16 per diluted share
in the first six months of 2004, a 14.9% increase compared to the
2003 period.
Gary K. Kunkle, Vice Chairman and Chief Executive Officer
commented that, "We are pleased to report record sales and
earnings for the second quarter of 2004. We are also encouraged
by an improvement in sales growth in the United States and Asia
in the second quarter. At the midpoint in the year, we are on
track to meet our revenue growth targets for the year and expect
to meet or exceed the earnings targets established at the
beginning of the year."
Mr. Kunkle also said, "This quarter we made substantial progress
toward the completion of and preparation for the start-up of our
new anesthetic filling plant in Chicago. We expect to commence
commercial production at this facility in the fourth quarter of
2004. In addition, we have a full pipeline of new product
introductions scheduled for the second half of 2004, including
the launch of our new non-injectible anesthetic Oraqix(TM).
These actions will position us well for continued growth in 2005."
DENTSPLY Conference Call Information
DENTSPLY will hold a conference call on Tuesday, July 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, 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 handpieces, 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 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 filed with the
Securities and Exchange Commission.
DENTSPLY INTERNATIONAL INC.
CONSOLIDATED STATEMENTS OF INCOME
(IN THOUSANDS EXCEPT PER SHARE DATA)
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
----------------------------- ------------------------------
2004 2003 2004 2003
------------- ------------- -------------- --------------
NET SALES $ 425,325 $ 394,478 $ 840,706 $ 765,714
NET SALES - Ex Precious Metals 373,787 348,198 732,791 665,084
COST OF PRODUCTS SOLD 212,424 196,403 422,948 384,877
GROSS PROFIT 212,901 198,075 417,758 380,837
% OF NET SALES 50.1% 50.2% 49.7% 49.7%
% OF NET SALES - Ex Precious Metals 57.0% 56.9% 57.0% 57.3%
SELLING, GENERAL &
ADMINISTRATIVE EXPENSES 135,003 128,235 269,030 250,473
RESTRUCTURING COSTS 333 - 1,057 -
------------- ------------- -------------- --------------
INCOME FROM OPERATIONS 77,565 69,840 147,671 130,364
% OF NET SALES 18.2% 17.7% 17.6% 17.0%
% OF NET SALES - Ex Precious Metals 20.8% 20.1% 20.2% 19.6%
NET INTEREST AND OTHER EXPENSE 5,214 5,529 10,710 10,847
------------- ------------- -------------- --------------
PRE-TAX INCOME 72,351 64,311 136,961 119,517
INCOME TAXES 23,129 20,861 41,971 38,628
------------- ------------- -------------- --------------
INCOME FROM CONTINUING OPERATIONS 49,222 43,450 94,990 80,889
% OF NET SALES 11.6% 11.0% 11.3% 10.6%
% OF NET SALES - Ex Precious Metals 13.2% 12.5% 13.0% 12.2%
INCOME (LOSS) FROM DISCONTINUED OPERATIONS,
NET OF TAX (INCLUDING GAIN ON SALE IN 2004 OF $43,031) (179) 768 42,885 1,596
------------- ------------- -------------- --------------
NET INCOME $ 49,043 $ 44,218 $ 137,875 $ 82,485
============= ============= ============== ==============
EARNINGS PER SHARE - BASIC:
CONTINUING OPERATIONS $ 0.61 $ 0.55 $ 1.18 $ 1.03
DISCONTINUED OPERATIONS - 0.01 0.54 0.02
------------- ------------- -------------- --------------
TOTAL EARNINGS PER SHARE $ 0.61 $ 0.56 $ 1.72 $ 1.05
============= ============= ============== ==============
EARNINGS PER SHARE - DILUTIVE:
CONTINUING OPERATIONS $ 0.60 $ 0.54 $ 1.16 $ 1.01
DISCONTINUED OPERATIONS - 0.01 0.53 0.02
------------- ------------- -------------- --------------
TOTAL EARNINGS PER SHARE $ 0.60 $ 0.55 $ 1.69 $ 1.03
============= ============= ============== ==============
DIVIDENDS PER SHARE $ 0.0525 $ 0.0460 $ 0.1050 $ 0.0920
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING
-BASIC 80,493 78,688 80,208 78,566
-DILUTIVE 82,089 80,327 81,796 80,168
DENTSPLY INTERNATIONAL INC.
CONDENSED BALANCE SHEETS
(IN THOUSANDS)
JUNE 30, DECEMBER 31,
2004 2003
--------- -----------
ASSETS
CURRENT ASSETS:
CASH AND CASH EQUIVALENTS $ 344,401 $ 163,755
ACCOUNTS AND NOTES RECEIVABLE-TRADE, NET 245,439 241,385
INVENTORIES, NET 203,179 205,587
OTHER CURRENT ASSETS 89,576 88,463
ASSETS HELD FOR SALE -- 28,262
TOTAL CURRENT ASSETS 882,595 727,452
PROPERTY,PLANT AND EQUIPMENT, NET 376,225 376,211
GOODWILL, NET 947,047 963,264
IDENTIFIABLE INTANGIBLES ASSETS, NET 239,692 246,475
OTHER NONCURRENT ASSETS, NET 89,641 114,736
ASSETS HELD FOR SALE -- 17,449
TOTAL ASSETS $2,535,200 $2,445,587
LIABILITIES AND STOCKHOLDERS' EQUITY:
CURRENT LIABILITIES $ 304,960 $ 327,752
LIABILITIES OF DISCONTINUED OPERATIONS -- 1,269
LONG-TERM DEBT 771,345 790,202
OTHER LIABILITIES 134,943 137,016
DEFERRED INCOME TAXES 67,184 66,861
---------- ----------
TOTAL LIABILITIES 1,278,432 1,323,100
MINORITY INTEREST IN CONSOLIDATED SUBSIDIARIES 181 418
STOCKHOLDERS' EQUITY 1,256,587 1,122,069
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $2,535,200 $2,445,587