DENTSPLY SIRONA Inc. (“Dentsply Sirona” or the "Company") (Nasdaq:
XRAY) today announced its financial results for the third quarter
of 2021.
Third quarter net sales of $1,069 million increased 19.4%,
compared to $895 million in the third quarter of 2020. Net income
for the third quarter of 2021 was $103 million, or $0.47 per
diluted share, compared to $53 million, or $0.25 per diluted share
in the third quarter of 2020. Non-GAAP net earnings per diluted
share increased to $0.68 compared to $0.67 in the third quarter of
2020. A reconciliation of the Non-GAAP measures to earnings per
share calculated on a GAAP basis is provided in the attached
table.
“In the third quarter we delivered strong results in an
environment still impacted by the pandemic. Organic sales grew over
21%, driven by continued recovery in the dental market and robust
demand from our recent product launches. Our teams have also done a
commendable job navigating supply chain bottlenecks to deliver
products to our customers," said Don Casey, Chief Executive
Officer. "In the quarter, we continued to accelerate investments in
new products and software that will drive both short and long-term
growth."
Q3 21 Summary Results (GAAP)
(in millions, except per share amount and
percentages) |
|
Q3 21 |
|
Q3 20 |
|
YoY |
Net
Sales |
|
1,069 |
|
895 |
|
19.4% |
Operating Income (loss) |
|
159 |
|
82 |
|
94.6% |
Operating Income (loss) % |
|
14.9% |
|
9.1% |
|
|
Diluted EPS |
|
0.47 |
|
0.25 |
|
90.8% |
* Percentages are based on actual values and may
not recalculate due to rounding.
Q3 21 Summary Results (Non-GAAP)[1]
(in millions, except per share amount and
percentages) |
|
Q3 21 |
|
Q3 20 |
|
YoY |
Net Sales |
|
1,069 |
|
895 |
|
19.4% |
Organic Sales Growth % |
|
|
|
|
|
21.1% |
Operating Income |
|
216 |
|
197 |
|
9.4% |
Operating Income % |
|
20.2% |
|
22.0% |
|
|
Diluted EPS |
|
0.68 |
|
0.67 |
|
1.8% |
[1] Organic sales growth, Non-GAAP operating income, and
Non-GAAP EPS are Non-GAAP financial measures which exclude certain
items. Please refer to "Non-GAAP Financial Measures" below for a
description of these measures and to the tables at the end of this
release for a reconciliation between GAAP and Non-GAAP
measures.
* Percentages are based on actual values and may
not recalculate due to rounding.
Segment Results
ConsumablesThird quarter 2021
net sales were $440 million, up 12.4% versus prior year. On an
organic basis, net sales increased by 15.9% as compared to prior
year. Currency favorably impacted sales by 1.3%, while divestitures
and discontinued products negatively impacted sales by 4.8%. Sales
across all product categories grew in the quarter.
Technologies &
EquipmentThird quarter 2021 net sales were $629 million,
up 24.8% versus prior year. On an organic basis, net sales
increased by 25.3% as compared to prior year. Currency favorably
impacted sales by 1.2%, acquisitions increased sales by 7.7%, and
divestitures and discontinued products negatively impacted sales by
9.4%. Sales across all product categories grew in the quarter.
Cash Flow and Liquidity
Operating cash flow in the third quarter of 2021 were
$172 million, as compared to $207 million in the prior
year. In the third quarter, the Company paid $24 million in
dividends, resulting in a total of $158 million returned to
shareholders year-to-date. At September 30, 2021, the Company
had $281 million of cash available on its balance sheet.
Fiscal Year 2021 Outlook
Based on the results of the third quarter and the continued
gradual recovery of the global dental market, we are raising our
fiscal year 2021 earnings outlook and tightening our revenue
outlook to the top of the previous range. We expect revenues to be
in the $4.25 billion to $4.3 billion range, up approximately 27-30%
on a reported basis and 22-25% on an organic basis. Our Non-GAAP
EPS outlook for FY2021 is now $2.87 to $2.92.
A list of the 2021 planning assumptions are included in the Q3
FY2021 Earnings Presentation posted in the investor relations
section of the Dentsply Sirona web site at www.dentsplysirona.com.
The Company does not provide forward-looking estimates on a GAAP
basis as certain information is not available and cannot be
reasonably estimated.
Recent Announcements & Additional
Highlights
- DS Implants launched - With a digital base,
historical product strength and signature workflows supported by
ongoing education and training, DS Implants was launched.
Successful brands like Simplant, OSSIX, Atlantis and MIS will be
harmonized as part of the implants restage. Three completely
connected, seamless signature workflows will take full advantage of
digital dentistry for excellent outcomes and patient satisfaction.
DS Implants also include new innovation with PrimeTaper, a
self-tapping implant with a tapered design that can be inserted
safely and easily with a unique double thread, enabling long-term
bone stability.
- ProTaper Ultimate launched - In September, the
Company launched ProTaper Ultimate, the first major endodontic
platform innovation launched in the Endodontic business in more
than 5 years. ProTaper Ultimate is a solution combining the latest
generation of ProTaper files, enhanced disinfection, and dedicated
obturation along with a new bioceramic sealer that work seamlessly
together. This new endodontic system is designed for Endodontic
specialists and General Practitioners who frequently perform both
complex and routine procedures and need a system that can handle
all types of anatomies.
- Dentsply Sirona World 2021 - In September,
dental professionals traveled to Las Vegas for the highly
anticipated return of the “Ultimate Dental Experience”. Dentsply
Sirona World 2021 included more than 7,000 registrants and offered
participants opportunities to network with fellow professionals,
access to nearly 120 expert speakers across a wide range of dental
topics, and individualized learning tracks on Dentsply Sirona’s
latest connected technologies. More than 150 hours of clinical
education was offered across the weekend’s activities.
- Environmental, Social and Governance ("ESG") Impact
- As a global leader in the dental health sector, we are
striving to become an ESG leader. In September, we launched our new
Sustainability strategy titled 'Beyond. Taking Action for a
Brighter World' and published our inaugural Sustainability Report.
Further information on our ESG efforts can be found on our
Sustainability website located in the Investors section of
www.dentsplysirona.com.
Conference Call/Webcast InformationDentsply
Sirona’s management team will host an investor conference call and
live webcast on November 4, 2021 at 8:30 am ET. A presentation
related to the call will be available on the Investors section of
the Company’s website at https://investor.dentsplysirona.com.
Investors can access the live webcast on the Investors section
of the Company’s website at https://investor.dentsplysirona.com.
For those planning to participate on the call, please dial
+1-877-370-7637 for domestic calls, or +1-629-228-0723 for
international calls. The conference ID # is 1256029. A replay of
the conference call will be available on the Investors section of
the Company’s website at https://investor.dentsplysirona.com, and a
dial-in replay will be available for one week following the call at
+1-855-859-2056 (for domestic calls) or +1-404-537-3406 (for
international calls), replay conference ID # 1256029.
About Dentsply SironaDentsply
Sirona is the world’s largest manufacturer of professional dental
products and technologies, with a 134-year history of innovation
and service to the dental industry and patients worldwide. Dentsply
Sirona develops, manufactures, and markets a comprehensive
solutions offering including dental and oral health products as
well as other consumable medical devices under a strong portfolio
of world class brands. As The Dental Solutions Company, Dentsply
Sirona’s products provide innovative, high-quality and effective
solutions to advance patient care and deliver better, safer and
faster dentistry. The Company’s shares of common stock are listed
in the United States on Nasdaq under the symbol XRAY. Visit
www.dentsplysirona.com for more information about Dentsply Sirona
and its products.
Contact
Information:Investors:Andrea DaleyVice President, Investor
Relations+1-704-805-1293InvestorRelations@dentsplysirona.com
Forward-Looking Statements and
Associated Risks
All statements in this press release that do not directly and
exclusively relate to historical facts constitute “forward-looking
statements.” These statements represent current expectations and
beliefs, and no assurance can be given that the results described
in such statements will be achieved. Such statements are subject to
numerous assumptions, risks, uncertainties and other factors that
could cause actual results to differ materially from those
described in such statements, many of which are outside of our
control. Furthermore, many of these risks and uncertainties are
currently amplified by and may continue to be amplified by or may,
in the future, be amplified by, the novel coronavirus (“COVID-19”)
pandemic and the impact of varying private and governmental
responses that affect our customers, employees, vendors and the
economies and communities where they operate. For a written
description of these factors, see the section titled “Risk Factors”
in Dentsply Sirona’s Annual Report on Form 10-K for the fiscal year
ended December 31, 2020 and any updating information in subsequent
SEC filings including the Company's Quarterly Report on Form 10-Q
for the quarterly period ending September 30, 2021. No
assurance can be given that any expectation, belief, goal or plan
set forth in any forward-looking statement can or will be achieved,
and readers are cautioned not to place undue reliance on such
statements which speak only as of the date they are made. We do not
undertake any obligation to update or release any revisions to any
forward-looking statement or to report any events or circumstances
after the date of this press release or to reflect the occurrence
of unanticipated events.
DENTSPLY SIRONA INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS (unaudited)(In millions, except per share
amounts)
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
|
|
|
|
|
|
|
Net sales |
$ |
1,069 |
|
|
$ |
895 |
|
|
$ |
3,163 |
|
|
$ |
2,260 |
|
|
|
|
|
|
|
|
|
Cost of products sold |
478 |
|
|
453 |
|
|
1,395 |
|
|
1,174 |
|
|
|
|
|
|
|
|
|
Gross profit |
591 |
|
|
442 |
|
|
1,768 |
|
|
1,086 |
|
|
|
|
|
|
|
|
|
Selling, general, and
administrative expenses |
394 |
|
|
315 |
|
|
1,177 |
|
|
935 |
|
|
|
|
|
|
|
|
|
Research and development
expenses |
35 |
|
|
27 |
|
|
112 |
|
|
79 |
|
|
|
|
|
|
|
|
|
Goodwill impairment |
— |
|
|
— |
|
|
— |
|
|
157 |
|
|
|
|
|
|
|
|
|
Restructuring and other
costs |
3 |
|
|
18 |
|
|
11 |
|
|
62 |
|
|
|
|
|
|
|
|
|
Operating income (loss) |
159 |
|
|
82 |
|
|
468 |
|
|
(147 |
) |
|
|
|
|
|
|
|
|
Net interest and other expense
(income), net |
21 |
|
|
15 |
|
|
47 |
|
|
36 |
|
|
|
|
|
|
|
|
|
Income (loss) before income
taxes |
138 |
|
|
67 |
|
|
421 |
|
|
(183 |
) |
|
|
|
|
|
|
|
|
Provision (benefit) for income
taxes |
35 |
|
|
13 |
|
|
102 |
|
|
(1 |
) |
|
|
|
|
|
|
|
|
Net income (loss) |
103 |
|
|
54 |
|
|
319 |
|
|
(182 |
) |
|
|
|
|
|
|
|
|
Less: Net (loss) income
attributable to noncontrolling interest |
— |
|
|
1 |
|
|
— |
|
|
— |
|
|
|
|
|
|
|
|
|
Net income (loss) attributable
to Dentsply Sirona |
$ |
103 |
|
|
$ |
53 |
|
|
$ |
319 |
|
|
$ |
(182 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per common
share attributable to Dentsply Sirona: |
|
|
|
|
|
|
|
Basic |
$ |
0.47 |
|
|
$ |
0.25 |
|
|
$ |
1.46 |
|
|
$ |
(0.83 |
) |
Diluted |
$ |
0.47 |
|
|
$ |
0.25 |
|
|
$ |
1.45 |
|
|
$ |
(0.83 |
) |
|
|
|
|
|
|
|
|
Weighted average common shares
outstanding: |
|
|
|
|
|
|
|
Basic |
218.6 |
|
|
218.5 |
|
|
218.6 |
|
|
219.4 |
|
Diluted |
220.5 |
|
|
219.2 |
|
|
220.7 |
|
|
219.4 |
|
|
|
|
|
|
|
|
|
DENTSPLY SIRONA INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)(In millions)
|
September 30, 2021 |
|
December 31, 2020 |
|
|
|
|
Assets |
|
|
|
Current Assets: |
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
281 |
|
|
$ |
438 |
|
Accounts and notes receivables-trade, net |
748 |
|
|
673 |
|
Inventories, net |
532 |
|
|
466 |
|
Prepaid expenses and other current assets |
243 |
|
|
214 |
|
|
|
|
|
Total Current Assets |
1,804 |
|
|
1,791 |
|
|
|
|
|
Property, plant, and
equipment |
771 |
|
|
791 |
|
Operating lease right-of-use
assets, net |
183 |
|
|
176 |
|
Identifiable intangible
assets, net |
2,402 |
|
|
2,504 |
|
Goodwill |
4,000 |
|
|
3,986 |
|
Other noncurrent assets |
128 |
|
|
94 |
|
|
|
|
|
Total Assets |
$ |
9,288 |
|
|
$ |
9,342 |
|
|
|
|
|
Liabilities and
Equity |
|
|
|
Current Liabilities: |
|
|
|
Accounts payable |
$ |
276 |
|
|
$ |
305 |
|
Accrued liabilities |
641 |
|
|
653 |
|
Income taxes payable |
58 |
|
|
60 |
|
Notes payable and current portion of long-term debt |
151 |
|
|
299 |
|
|
|
|
|
Total Current Liabilities |
1,126 |
|
|
1,317 |
|
|
|
|
|
Long-term debt |
1,925 |
|
|
1,978 |
|
Operating lease
liabilities |
139 |
|
|
130 |
|
Deferred income taxes |
413 |
|
|
393 |
|
Other noncurrent
liabilities |
560 |
|
|
554 |
|
|
|
|
|
Total Liabilities |
4,163 |
|
|
4,372 |
|
|
|
|
|
Total Equity |
5,125 |
|
|
4,970 |
|
|
|
|
|
Total Liabilities and Equity |
$ |
9,288 |
|
|
$ |
9,342 |
|
|
|
|
|
DENTSPLY SIRONA INC. AND
SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)(In millions)
|
Nine Months Ended September 30, |
|
2021 |
|
2020 |
Cash flows from
operating activities: |
|
|
|
Net income (loss) |
$ |
319 |
|
|
$ |
(182 |
) |
Adjustments to reconcile net
income (loss) to net cash provided by operating activities: |
|
|
|
Depreciation |
94 |
|
|
104 |
|
Amortization of intangible assets |
167 |
|
|
143 |
|
Deferred income taxes |
(11 |
) |
|
(53 |
) |
Stock based compensation expense |
54 |
|
|
36 |
|
Goodwill impairment |
— |
|
|
157 |
|
Indefinite-lived intangible asset impairment |
— |
|
|
39 |
|
Other non-cash expense |
12 |
|
|
9 |
|
(Gain) loss on sale of non-strategic businesses and product
lines |
(14 |
) |
|
— |
|
Changes in operating assets and liabilities, net of
acquisitions: |
|
|
|
Accounts and notes receivable-trade, net |
(98 |
) |
|
149 |
|
Inventories, net |
(82 |
) |
|
74 |
|
Prepaid expenses and other current assets |
(27 |
) |
|
50 |
|
Other noncurrent assets |
(12 |
) |
|
8 |
|
Accounts payable |
(39 |
) |
|
(65 |
) |
Accrued liabilities |
41 |
|
|
(73 |
) |
Income taxes |
11 |
|
|
(10 |
) |
Other noncurrent liabilities |
20 |
|
|
(14 |
) |
Net cash provided by
operating activities |
435 |
|
|
372 |
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
Capital expenditures |
(101 |
) |
|
(60 |
) |
Cash paid for acquisitions of
businesses and equity investments, net of cash acquired |
(248 |
) |
|
(2 |
) |
Cash received on sale of
non-strategic businesses or product lines |
27 |
|
|
— |
|
Cash received on derivative
contracts |
1 |
|
|
58 |
|
Cash paid on derivative
contracts |
— |
|
|
(1 |
) |
Proceeds from sale of
property, plant, and equipment |
2 |
|
|
— |
|
Net cash used in
investing activities |
(319 |
) |
|
(5 |
) |
|
|
|
|
Cash flows from
financing activities: |
|
|
|
Proceeds (repayments) on
short-term borrowings, net |
147 |
|
|
(1 |
) |
Cash paid for treasury
stock |
(90 |
) |
|
(140 |
) |
Cash dividends paid |
(68 |
) |
|
(66 |
) |
Cash paid for acquisition of
noncontrolling interest of consolidated subsidiary |
— |
|
|
(2 |
) |
Proceeds from long-term
borrowings, net of deferred financing costs |
15 |
|
|
1,449 |
|
Repayments on long-term
borrowings, net |
(297 |
) |
|
(701 |
) |
Deferred financing costs |
— |
|
|
(6 |
) |
Proceeds from exercised stock
options |
47 |
|
|
6 |
|
Cash paid on derivative
contracts |
— |
|
|
(31 |
) |
Other financing activities,
net |
(11 |
) |
|
(4 |
) |
Net cash (used in)
provided by financing activities |
(257 |
) |
|
504 |
|
|
|
|
|
Effect of exchange rate
changes on cash and cash equivalents |
(16 |
) |
|
(4 |
) |
Net (decrease) increase in
cash and cash equivalents |
(157 |
) |
|
867 |
|
Cash and cash equivalents at
beginning of period |
438 |
|
|
405 |
|
Cash and cash equivalents at
end of period |
$ |
281 |
|
|
$ |
1,272 |
|
|
|
|
|
Non-GAAP Financial Measures
In addition to results determined in accordance with U.S.
generally accepted accounting principles (“US GAAP”) the Company
provides certain measures in this press release, described below,
which are not calculated in accordance with US GAAP and therefore
represent Non-GAAP measures. These Non-GAAP measures may differ
from those used by other companies and should not be considered in
isolation from, or as a substitute for, measures of financial
performance prepared in accordance with US GAAP. The Company
discloses these measures to allow investors to evaluate the
performance of the Company’s operations exclusive of certain items
that impact the comparability of results from period to period and
which may not be indicative of past or future performance of the
normal operations of the Company. The Company believes that this
information is helpful in understanding underlying operating
results including net sales, operating income, and net income.
Organic Sales
The Company defines "organic sales" as the increase or decrease
in net sales excluding: (1) net sales from acquired and divested
businesses recorded prior to the first anniversary of the
acquisition or divestiture, (2) net sales attributable to
discontinued product lines in both the current and prior year
periods, and (3) the impact of foreign currency translation, which
is calculated by translating current period sales using the
comparable prior periods currency conversion rates. Organic sales
is an important internal measure for the Company. The Company's
senior management receives a monthly analysis of operating results
that includes organic sales and the performance of the Company is
measured on this metric along with other performance metrics.
Adjusted Net Income (Loss) and Adjusted Earnings (Loss)
Per Diluted Common Share
The adjusted net income (loss) attributable to Dentsply Sirona
consists of net income (loss) attributable to Dentsply Sirona
adjusted to exclude the following:
(1) Business combination related
costs and fair value adjustments. These adjustments include costs
related to consummating and integrating new businesses, as well as
net gains and losses related to the disposed businesses. In
addition, this category includes the subsequent impact roll-off to
the consolidated statements of operations which results from fair
value adjustments related to business combinations, except for
amortization expense of purchased intangible assets noted below.
Although the Company is regularly engaged in activities to find and
act on opportunities for strategic growth and enhancement of
product offerings, the costs associated with these activities may
vary significantly between periods based on the timing, size and
complexity of acquisitions and as such may not be indicative of
past and future performance of the Company. They are therefore
excluded to allow investors to better understand underlying
operating trends.
(2) Restructuring program related
costs and other costs. These adjustments include costs related to
the implementation of restructuring initiatives as well as certain
other costs. These costs can include, but are not limited to,
severance costs, facility closure costs, lease and contract
termination costs and related professional service costs, duplicate
facility and labor costs associated with specific restructuring
initiatives. Other costs include legal settlements, impairments of
assets, and changes in accounting principle recorded within the
period. The Company's restructuring programs usually require
several years to fully implement and the Company is continually
seeking to take actions that could enhance its efficiency. While
restructuring charges are recurring, they are subject to
significant fluctuations from period to period due to the varying
levels of restructuring activity and the inherent imprecision in
the estimates used to recognize the impairment of assets and the
wide variety of costs and taxes associated with severance and
termination benefits in the countries in which the restructuring
actions occur.
(3) Amortization of purchased
intangible assets. This adjustment excludes the periodic
amortization expense related to purchased intangible assets
recorded in purchase accounting. Although these costs contribute to
revenue generation and will recur in future periods, their amounts
are significantly impacted by the timing and size of
acquisitions.
(4) Credit risk and fair value
adjustments. These adjustments include both the cost and income
impacts of adjustments in certain assets and liabilities including
the Company’s pension obligations, that are recorded through net
income which are related to the changes in fair value and credit
risk. Although this non-service component of pension expense is a
recurring item, it is subject to significant fluctuations from
period to period due to changes in actuarial assumptions, global
financial markets (including stock market returns and interest rate
changes), plan changes, settlements, curtailments, and other
changes in facts and circumstances. These items can be variable and
driven more by market conditions than the Company’s operating
performance.
(5) Income tax related adjustments.
These adjustments include both income tax expenses and income tax
benefits that are representative of income tax adjustments mostly
related to prior periods, as well as the final settlement of income
tax audits, and discrete tax items resulting from the
implementation of restructuring initiatives and the vesting and
exercise of employee share-based compensation. Income tax related
adjustments may also include the impact to adjust the interim
effective income tax rate to the expected annual effective tax
rate. These adjustments are irregular in timing the variability in
amounts may not be indicative of past and future performance of the
Company and therefore are excluded for comparability purposes.
Both adjusted net income (loss) and adjusted EPS are important
internal measures for the Company. The Company's senior management
receives a monthly analysis of operating results that includes
adjusted net income (loss) and adjusted EPS. The performance of the
Company is measured on these metrics along with other performance
metrics.
Adjusted Operating Income (Loss) and Margin
In addition to reporting operating income (loss) in accordance
with US GAAP, the Company provides adjusted operating income (loss)
and margin. The Company defines "adjusted operating income (loss)"
as operating income (loss) in accordance with US GAAP excluding
certain items noted above which are excluded on a pre-tax basis to
arrive at adjusted operating income (loss), a Non-GAAP measure. The
adjusted operating margin is calculated by dividing adjusted
operating income (loss) by net sales. Both adjusted operating
income (loss) and adjusted operating margin are important internal
measures for the Company. The Company's senior management receives
a monthly analysis of operating results that includes adjusted
operating income (loss) and margin. The performance of the Company
is measured on these metrics along with the adjusted net income
(loss) and adjusted EPS metrics noted above as well as other
performance metrics.
DENTSPLY SIRONA INC. AND
SUBSIDIARIES(In millions, except
percentages)(unaudited)
A reconciliation of reported net sales to organic sales by
segment is as follows:
|
|
Three Months Ended September 30, 2021 |
|
Q3 2021 Change |
|
Three Months Ended September 30, 2020 |
(in
millions, except percentages) |
|
Technologies& Equipment |
Consumables |
Total |
|
Technologies& Equipment |
Consumables |
Total |
|
Technologies& Equipment |
Consumables |
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
|
$ |
629 |
|
$ |
440 |
|
$ |
1,069 |
|
|
24.8 |
% |
|
12.4 |
% |
|
19.4 |
|
% |
|
$ |
504 |
|
$ |
391 |
|
$ |
895 |
|
Foreign exchange impact |
|
|
|
|
|
1.2 |
% |
|
1.3 |
% |
|
1.3 |
% |
|
|
|
|
|
Acquisitions |
|
|
|
|
|
7.7 |
% |
|
— |
% |
|
4.3 |
% |
|
|
|
|
|
Divestitures and discontinued
products |
|
|
|
|
|
(9.4 |
%) |
|
(4.8 |
%) |
|
(7.3 |
%) |
|
|
|
|
|
Organic
sales |
|
|
|
|
|
25.3 |
% |
|
15.9 |
% |
|
21.1 |
% |
|
|
|
|
|
* Percentages are based on actual values and may
not recalculate due to rounding.
A reconciliation of reported net sales to organic sales by
geographic region is as follows:
|
|
Three Months Ended September 30, 2021 |
|
Q3 2021 Change |
|
Three Months Ended September 30, 2020 |
(in
millions, except percentages) |
|
U.S. |
Europe |
ROW |
Total |
|
U.S. |
Europe |
ROW |
Total |
|
U.S. |
Europe |
ROW |
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
|
$ |
399 |
|
$ |
399 |
|
$ |
271 |
|
$ |
1,069 |
|
|
25.3 |
% |
13.6 |
% |
20.1 |
% |
19.4 |
% |
|
$ |
319 |
|
$ |
351 |
|
$ |
225 |
|
$ |
895 |
|
Foreign exchange impact |
|
|
|
|
|
|
(0.1 |
%) |
1.7 |
% |
2.3 |
% |
1.3 |
% |
|
|
|
|
|
Acquisitions |
|
|
|
|
|
|
11.2 |
% |
0.1 |
% |
1.1 |
% |
4.3 |
% |
|
|
|
|
|
Divestitures and discontinued
products |
|
|
|
|
|
|
(5.9 |
%) |
(6.0 |
%) |
(11.1 |
%) |
(7.3 |
%) |
|
|
|
|
|
Organic
sales |
|
|
|
|
|
|
20.1 |
% |
17.8 |
% |
27.8 |
% |
21.1 |
% |
|
|
|
|
|
* Percentages are based on actual values and may
not recalculate due to rounding.
DENTSPLY SIRONA INC. AND
SUBSIDIARIES(In millions, except
percentages)(unaudited)
For the three months ended September 30, 2021, a
reconciliation of selected items as reported in the Condensed
Consolidated Statements of Operations to adjusted Non-GAAP items is
as follows:
|
|
|
|
|
|
|
|
|
|
|
GAAP |
|
|
|
|
|
|
|
ADJUSTEDNON-GAAP |
(in
millions, except per share amounts and percentages) |
Three Months Ended September 30, 2021 |
Amortization of Purchased Intangible Assets |
Restructuring Program Related Costs and Other
Costs |
Business Combination Related Costs and Fair Value
Adjustments |
Credit Risk and Fair Value Adjustments |
Tax Impact of Non-GAAP Adjustments |
Income Tax Related Adjustments |
Total Non-GAAP Adjustments |
Three Months Ended September 30, 2021 |
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT |
$ |
591 |
|
34 |
|
— |
|
(1 |
) |
— |
|
— |
|
— |
|
$ |
33 |
|
$ |
624 |
|
% OF NET SALES |
55.3 |
% |
|
|
|
|
|
|
|
58.4 |
% |
SELLING, GENERAL, AND
ADMINISTRATIVE EXPENSES |
394 |
|
(22 |
) |
3 |
|
(2 |
) |
— |
|
— |
|
— |
|
(21 |
) |
373 |
|
% OF NET SALES |
36.8 |
% |
|
|
|
|
|
|
|
34.9 |
% |
RESEARCH AND DEVELOPMENT
EXPENSES |
35 |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
35 |
|
RESTRUCTURING AND OTHER
COSTS |
3 |
|
— |
|
(3 |
) |
— |
|
— |
|
— |
|
— |
|
(3 |
) |
— |
|
OPERATING INCOME |
159 |
|
56 |
|
— |
|
1 |
|
— |
|
— |
|
— |
|
57 |
|
216 |
|
% OF NET SALES |
14.9 |
% |
|
|
|
|
|
|
|
20.2 |
% |
OTHER INCOME AND EXPENSE |
21 |
|
— |
|
— |
|
1 |
|
(2 |
) |
— |
|
— |
|
(1 |
) |
20 |
|
INCOME BEFORE INCOME
TAXES |
138 |
|
56 |
|
— |
|
— |
|
2 |
|
— |
|
— |
|
58 |
|
196 |
|
PROVISION FOR INCOME
TAXES |
35 |
|
— |
|
— |
|
— |
|
— |
|
16 |
|
(5 |
) |
11 |
|
46 |
|
% OF PRE-TAX INCOME |
25.2 |
% |
|
|
|
|
|
|
|
23.4 |
% |
LESS: NET INCOME ATTRIBUTABLE
TO NONCONTROLLING INTERESTS |
— |
|
|
|
|
|
|
|
— |
|
— |
|
NET INCOME ATTRIBUTABLE TO
DENTSPLY SIRONA |
$ |
103 |
|
|
|
|
|
|
|
$ |
47 |
|
$ |
150 |
|
% OF NET SALES |
9.7 |
% |
|
|
|
|
|
|
|
14.0 |
% |
EARNINGS PER SHARE -
DILUTED |
$ |
0.47 |
|
|
|
|
|
|
|
$ |
0.21 |
|
$ |
0.68 |
|
* Percentages are based on actual values and may
not recalculate due to rounding.
For the three months ended September 30, 2021, the following
table presents the details of the "Restructuring program related
costs and other costs" column in the above table and the affected
line item in the Consolidated Statements of Operations:
(in
millions) |
|
Separation costs related to executives |
|
Costs related to restructuring plans |
|
Total |
|
|
|
|
|
|
|
Selling, general, and administrative expenses |
|
$ |
(4 |
) |
|
$ |
1 |
|
|
$ |
(3 |
) |
Restructuring and other
costs |
|
— |
|
|
3 |
|
|
3 |
|
Total |
|
$ |
(4 |
) |
|
$ |
4 |
|
|
$ |
— |
|
DENTSPLY SIRONA INC. AND
SUBSIDIARIES(In millions, except
percentages)(unaudited)
For the three months ended September 30, 2020, a reconciliation
of selected items as reported in the Condensed Consolidated
Statements of Operations to adjusted Non-GAAP items is as
follows:
|
|
|
|
|
|
|
|
|
|
|
GAAP |
|
|
|
|
|
|
|
ADJUSTEDNON-GAAP |
(in
millions, except per share amounts and percentages) |
Three Months Ended September 30, 2020 |
Amortization of Purchased Intangible Assets |
Restructuring Program Related Costs and Other
Costs |
Business Combination Related Costs and Fair Value
Adjustments |
Credit Risk and Fair Value Adjustments |
Tax Impact of Non-GAAP Adjustments |
Income Tax Related Adjustments |
Total Non-GAAP Adjustments |
Three Months Ended September 30, 2020 |
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT |
$ |
442 |
|
30 |
|
33 |
|
1 |
|
— |
|
— |
|
— |
|
$ |
64 |
|
$ |
506 |
|
% OF NET SALES |
49.4 |
% |
|
|
|
|
|
|
|
56.6 |
% |
SELLING, GENERAL, AND
ADMINISTRATIVE EXPENSES |
315 |
|
(19 |
) |
(14 |
) |
— |
|
— |
|
— |
|
— |
|
(33 |
) |
282 |
|
% OF NET SALES |
35.2 |
% |
|
|
|
|
|
|
|
31.6 |
% |
RESEARCH AND DEVELOPMENT
EXPENSES |
27 |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
27 |
|
RESTRUCTURING AND OTHER
COSTS |
18 |
|
— |
|
(18 |
) |
— |
|
— |
|
— |
|
— |
|
(18 |
) |
— |
|
OPERATING INCOME |
82 |
|
49 |
|
65 |
|
1 |
|
— |
|
— |
|
— |
|
115 |
|
197 |
|
% OF NET SALES |
9.1 |
% |
|
|
|
|
|
|
|
22.0 |
% |
OTHER INCOME AND EXPENSE |
15 |
|
— |
|
— |
|
— |
|
(3 |
) |
|
— |
|
(3 |
) |
12 |
|
INCOME BEFORE INCOME
TAXES |
67 |
|
49 |
|
65 |
|
1 |
|
3 |
|
— |
|
— |
|
118 |
|
185 |
|
PROVISION FOR INCOME
TAXES |
13 |
|
— |
|
— |
|
— |
|
— |
|
31 |
|
(7 |
) |
24 |
|
37 |
|
% OF PRE-TAX INCOME |
18.8 |
% |
|
|
|
|
|
|
|
20.3 |
% |
LESS: NET INCOME ATTRIBUTABLE
TO NON-CONTROLLING INTERESTS |
1 |
|
|
|
|
|
|
|
— |
|
1 |
|
NET INCOME ATTRIBUTABLE TO
DENTSPLY SIRONA |
$ |
53 |
|
|
|
|
|
|
|
$ |
94 |
|
$ |
147 |
|
% OF NET SALES |
6.0 |
% |
|
|
|
|
|
|
|
16.4 |
% |
EARNINGS PER SHARE -
DILUTED |
$ |
0.25 |
|
|
|
|
|
|
|
$ |
0.42 |
|
$ |
0.67 |
|
|
|
|
|
|
|
|
|
|
|
* Percentages are based on actual values and may
not recalculate due to rounding.
For the three months ended September 30, 2020, the
following table presents the details of the "Restructuring program
related costs and other costs" column in the above table and the
affected line item in the Consolidated Statements of
Operations:
(in
millions) |
|
Asset impairments |
|
Costs related to restructuring plans |
|
Professional services costs |
|
Incentive compensation |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
Cost of products sold |
|
$ |
— |
|
|
$ |
33 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
33 |
|
Selling, general, and
administrative expenses |
|
$ |
— |
|
|
1 |
|
|
12 |
|
|
1 |
|
|
14 |
|
Restructuring and other
costs |
|
2 |
|
|
16 |
|
|
— |
|
|
— |
|
|
18 |
|
Total |
|
$ |
2 |
|
|
$ |
50 |
|
|
$ |
12 |
|
|
$ |
1 |
|
|
$ |
65 |
|
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