DENTSPLY SIRONA Inc. (“Dentsply Sirona” or the "Company") (Nasdaq:
XRAY) today announced its financial results for the second quarter
of 2021.
Second quarter net sales of $1,067 million increased 117.3%,
compared to $491 million in the second quarter of 2020. Net income
for the second quarter of 2021 was $99 million, or $0.45 per
diluted share, compared to a net loss of ($95) million, or ($0.44)
per diluted share in the second quarter of 2020. Non-GAAP net
earnings per diluted share increased to $0.71 compared to ($0.18)
in the second 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.
“Our second-quarter performance closes out a strong first half
of the fiscal year," said Dentsply Sirona Chief Executive Officer
Don Casey. "Our financial results reflect the resilience of the
dental market and demonstrate our team's ability to execute
operationally and financially. As we turn our attention to
investing for future growth, we are confident that the underlying
fundamentals of our business are strong and that we are well
positioned. Additionally, we remain committed to completing our
restructuring goals on time and on budget.”
Q2 21 Summary Results (GAAP)
(in millions, except per share amount and
percentages) |
|
Q2 21 |
|
Q2 20 |
|
YoY |
Net
Sales |
|
1,067 |
|
491 |
|
117.3% |
Operating Income (loss) |
|
155 |
|
(104) |
|
NM |
Operating Income (loss) % |
|
14.5% |
|
(21.2%) |
|
|
Diluted EPS |
|
0.45 |
|
(0.44) |
|
NM |
NM - not meaningful
Q2 21 Summary Results (Non-GAAP)[1]
(in millions, except per share amount and
percentages) |
|
Q2 21 |
|
Q2 20 |
|
YoY |
Net Sales |
|
1,067 |
|
491 |
|
117.3% |
Organic Sales Growth % |
|
|
|
|
|
104.6% |
Operating Income |
|
219 |
|
(42) |
|
NM |
Operating Income % |
|
20.5% |
|
(8.6%) |
|
|
Diluted EPS |
|
0.71 |
|
(0.18) |
|
NM |
[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.
Segment Results
ConsumablesSecond quarter 2021
net sales were $445 million, up 138.0% versus prior year. On an
organic basis, net sales increased by 135.3% as compared to prior
year. Currency favorably impacted sales by 11.2%, while
divestitures and discontinued products negatively impacted sales by
8.5%. Sales across all product categories rebounded in the
quarter.
Technologies &
EquipmentSecond quarter 2021 net sales were $622 million,
up 104.6% versus prior year. On an organic basis, net sales
increased by 85.2% as compared to prior year. Currency favorably
impacted sales by 10.4%, acquisitions increased sales by 19.0%, and
divestitures and discontinued products negatively impacted sales by
10.0%. Sales across all product categories rebounded in the
quarter.
Cash Flow and Liquidity
Operating cash flows in the second quarter of 2021 were
$214 million, as compared to $175 million in the prior
year. In the second quarter, the Company paid $22 million in
dividends, resulting in a total of $134 million returned to
shareholders in the first six months of 2021. During the second
quarter, the Company also funded the Propel Orthodontics
acquisition for $132 million. At June 30, 2021, the Company
had $332 million of cash available on its balance sheet.
Fiscal Year 2021 Outlook
Based on the results of the second quarter and the continued
gradual recovery of the global dental market, we are reaffirming
the fiscal year 2021 outlook. We expect revenues to be in the $4.1B
to $4.3B range, up approximately 23-28% on a reported basis and
18-25% on an organic basis. Our Non-GAAP EPS outlook for FY2021 is
$2.75 to $2.90 and we expect to be at the upper end of the
range.
A list of the 2021 planning assumptions are included in the Q2
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
- Quarterly Cash Dividend Declared - Dentsply
Sirona's Board of Directors declared a quarterly cash dividend of
$0.11 per share of common stock. The dividend is payable on October
8, 2021 to holders of record as of September 24, 2021.
- Share Repurchase Program Authorization - On
July 28, 2021, Dentsply Sirona’s Board of Directors authorized an
increase to the share repurchase program bringing the total to $1
billion.
- Environmental, Social and Governance ("ESG") Impact
- As a global leader in the dental health sector, we are
striving to become an ESG leader. In April 2021, we launched our
Sustainability web site and published our Environmental Scorecard
and Sustainability Fact Sheet. In May 2021 we announced our
partnership with FDI World Dental Federation as one of five
industry founding partners to lead the new Sustainability in
Dentistry initiative. In Q3 2021, we plan to publish our inaugural
Sustainability Report. Further information on our ESG efforts can
be found on our Sustainability website located in the investor
relations section of www.dentsplysirona.com.
- Dentsply Sirona World 2021 - After a
successful virtual DS World in 2020, the “Ultimate Dental
Experience” will once again welcome guests in Las Vegas, Nevada.
The event will take place September 23-25, 2021, at Caesars Forum
and will also include a virtual option. This year’s meeting will
feature educational tracks with pertinent information to help
attendees navigate current challenges and prepare to take advantage
of the opportunities that digital dentistry offers.
Conference Call/Webcast InformationDentsply
Sirona’s management team will host an investor conference call and
live webcast on August 5, 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 4184820. 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 # 4184820.
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 June 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 June 30, |
|
Six Months Ended June 30, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
|
|
|
|
|
|
|
Net sales |
$ |
1,067 |
|
|
$ |
491 |
|
|
$ |
2,094 |
|
|
$ |
1,365 |
|
|
|
|
|
|
|
|
|
Cost of products sold |
469 |
|
|
315 |
|
|
917 |
|
|
721 |
|
|
|
|
|
|
|
|
|
Gross profit |
598 |
|
|
176 |
|
|
1,177 |
|
|
644 |
|
|
|
|
|
|
|
|
|
Selling, general, and
administrative expenses |
398 |
|
|
261 |
|
|
783 |
|
|
620 |
|
|
|
|
|
|
|
|
|
Research and development
expenses |
40 |
|
|
18 |
|
|
77 |
|
|
52 |
|
|
|
|
|
|
|
|
|
Goodwill impairment |
— |
|
|
— |
|
|
— |
|
|
157 |
|
|
|
|
|
|
|
|
|
Restructuring and other
costs |
5 |
|
|
1 |
|
|
8 |
|
|
44 |
|
|
|
|
|
|
|
|
|
Operating income (loss) |
155 |
|
|
(104 |
) |
|
309 |
|
|
(229 |
) |
|
|
|
|
|
|
|
|
Net interest and other expense
(income), net |
21 |
|
|
16 |
|
|
26 |
|
|
21 |
|
|
|
|
|
|
|
|
|
Income (loss) before income
taxes |
134 |
|
|
(120 |
) |
|
283 |
|
|
(250 |
) |
|
|
|
|
|
|
|
|
Provision (benefit) for income
taxes |
35 |
|
|
(24 |
) |
|
67 |
|
|
(14 |
) |
|
|
|
|
|
|
|
|
Net income (loss) |
99 |
|
|
(96 |
) |
|
216 |
|
|
(236 |
) |
|
|
|
|
|
|
|
|
Less: Net loss attributable to
noncontrolling interest |
— |
|
|
(1 |
) |
|
— |
|
|
(1 |
) |
|
|
|
|
|
|
|
|
Net income (loss) attributable
to Dentsply Sirona |
$ |
99 |
|
|
$ |
(95 |
) |
|
$ |
216 |
|
|
$ |
(235 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per common
share attributable to Dentsply Sirona: |
|
|
|
|
|
|
|
Basic |
$ |
0.45 |
|
|
$ |
(0.44 |
) |
|
$ |
0.99 |
|
|
$ |
(1.07 |
) |
Diluted |
$ |
0.45 |
|
|
$ |
(0.44 |
) |
|
$ |
0.98 |
|
|
$ |
(1.07 |
) |
|
|
|
|
|
|
|
|
Weighted average common shares
outstanding: |
|
|
|
|
|
|
|
Basic |
218.4 |
|
|
218.7 |
|
|
218.6 |
|
|
219.8 |
|
Diluted |
220.7 |
|
|
218.7 |
|
|
220.8 |
|
|
219.8 |
|
|
|
|
|
|
|
|
|
DENTSPLY SIRONA INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)(In millions)
|
June 30, 2021 |
|
December 31, 2020 |
|
|
|
|
Assets |
|
|
|
Current Assets: |
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
332 |
|
|
$ |
438 |
|
Accounts and notes receivables-trade, net |
678 |
|
|
673 |
|
Inventories, net |
539 |
|
|
466 |
|
Prepaid expenses and other current assets |
236 |
|
|
214 |
|
|
|
|
|
Total Current Assets |
1,785 |
|
|
1,791 |
|
|
|
|
|
Property, plant, and
equipment |
769 |
|
|
791 |
|
Operating lease right-of-use
assets, net |
184 |
|
|
176 |
|
Identifiable intangible
assets, net |
2,488 |
|
|
2,504 |
|
Goodwill |
4,033 |
|
|
3,986 |
|
Other noncurrent assets |
119 |
|
|
94 |
|
|
|
|
|
Total Assets |
$ |
9,378 |
|
|
$ |
9,342 |
|
|
|
|
|
Liabilities and
Equity |
|
|
|
Current Liabilities: |
|
|
|
Accounts payable |
$ |
281 |
|
|
$ |
305 |
|
Accrued liabilities |
621 |
|
|
653 |
|
Income taxes payable |
44 |
|
|
60 |
|
Notes payable and current portion of long-term debt |
305 |
|
|
299 |
|
|
|
|
|
Total Current Liabilities |
1,251 |
|
|
1,317 |
|
|
|
|
|
Long-term debt |
1,946 |
|
|
1,978 |
|
Operating lease
liabilities |
139 |
|
|
130 |
|
Deferred income taxes |
415 |
|
|
393 |
|
Other noncurrent
liabilities |
550 |
|
|
554 |
|
|
|
|
|
Total Liabilities |
4,301 |
|
|
4,372 |
|
|
|
|
|
Total Equity |
5,077 |
|
|
4,970 |
|
|
|
|
|
Total Liabilities and Equity |
$ |
9,378 |
|
|
$ |
9,342 |
|
|
|
|
|
DENTSPLY SIRONA INC. AND
SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)(In millions)
|
Six Months Ended June 30, |
|
2021 |
|
2020 |
Cash flows from
operating activities: |
|
|
|
Net income (loss) |
$ |
216 |
|
|
$ |
(236 |
) |
Adjustments to reconcile net
income (loss) to net cash provided by operating activities: |
|
|
|
Depreciation |
64 |
|
|
65 |
|
Amortization of intangible assets |
112 |
|
|
94 |
|
Deferred income taxes |
(6 |
) |
|
(32 |
) |
Stock based compensation expense |
32 |
|
|
19 |
|
Goodwill impairment |
— |
|
|
157 |
|
Indefinite-lived intangible asset impairment |
— |
|
|
39 |
|
Other non-cash expense |
20 |
|
|
4 |
|
(Gain) loss on sale of non-strategic businesses and product
lines |
(13 |
) |
|
— |
|
Changes in operating assets and liabilities, net of
acquisitions: |
|
|
|
Accounts and notes receivable-trade, net |
(17 |
) |
|
269 |
|
Inventories, net |
(77 |
) |
|
(1 |
) |
Prepaid expenses and other current assets |
(22 |
) |
|
33 |
|
Other noncurrent assets |
(8 |
) |
|
6 |
|
Accounts payable |
(28 |
) |
|
(89 |
) |
Accrued liabilities |
(10 |
) |
|
(140 |
) |
Income taxes |
(8 |
) |
|
(15 |
) |
Other noncurrent liabilities |
8 |
|
|
(9 |
) |
Net cash provided by
operating activities |
263 |
|
|
164 |
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
Capital expenditures |
(66 |
) |
|
(39 |
) |
Cash paid for acquisitions of
businesses and equity investments, net of cash acquired |
(241 |
) |
|
— |
|
Cash received on sale of
non-strategic businesses or product lines |
27 |
|
|
— |
|
Cash received on derivative
contracts |
— |
|
|
58 |
|
Proceeds from sale of
property, plant, and equipment |
1 |
|
|
1 |
|
Net cash (used in)
provided by investing activities |
(279 |
) |
|
20 |
|
|
|
|
|
Cash flows from
financing activities: |
|
|
|
Proceeds (repayments) on
short-term borrowings, net |
6 |
|
|
(1 |
) |
Cash paid for treasury
stock |
(90 |
) |
|
(140 |
) |
Cash dividends paid |
(44 |
) |
|
(44 |
) |
Proceeds from long-term
borrowings, net of deferred financing costs |
13 |
|
|
1,442 |
|
Repayments on long-term
borrowings, net |
— |
|
|
(701 |
) |
Proceeds from exercised stock
options |
45 |
|
|
6 |
|
Cash paid on derivative
contracts |
— |
|
|
(31 |
) |
Other financing activities,
net |
(8 |
) |
|
(3 |
) |
Net cash (used in)
provided by financing activities |
(78 |
) |
|
528 |
|
|
|
|
|
Effect of exchange rate
changes on cash and cash equivalents |
(12 |
) |
|
(8 |
) |
Net (decrease) increase in
cash and cash equivalents |
(106 |
) |
|
704 |
|
Cash and cash equivalents at
beginning of period |
438 |
|
|
405 |
|
Cash and cash equivalents at
end of period |
$ |
332 |
|
|
$ |
1,109 |
|
|
|
|
|
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 acquired 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 June 30, 2021 |
|
Q2 2021 Change |
|
Three Months Ended June 30, 2020 |
(in
millions, except percentages) |
|
Technologies & Equipment |
Consumables |
Total |
|
Technologies & Equipment |
Consumables |
Total |
|
Technologies & Equipment |
Consumables |
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
|
$ |
622 |
|
$ |
445 |
|
$ |
1,067 |
|
|
104.6 |
% |
|
138.0 |
% |
|
117.3 |
% |
|
|
$ |
304 |
|
$ |
187 |
|
$ |
491 |
|
Foreign exchange impact |
|
|
|
|
|
10.4 |
% |
|
11.2 |
% |
|
10.7 |
% |
|
|
|
|
|
Acquisitions |
|
|
|
|
|
19.0 |
% |
|
— |
% |
|
11.9 |
% |
|
|
|
|
|
Divestitures and discontinued
products |
|
|
|
|
|
(10.0 |
%) |
|
(8.5 |
%) |
|
(9.9 |
%) |
|
|
|
|
|
Organic
sales |
|
|
|
|
|
85.2 |
% |
|
135.3 |
% |
|
104.6 |
% |
|
|
|
|
|
A reconciliation of reported net sales to organic sales by
geographic region is as follows:
|
|
Three Months Ended June 30, 2021 |
|
Q2 2021 Change |
|
Three Months Ended June 30, 2020 |
(in
millions, except percentages) |
|
U.S. |
Europe |
ROW |
Total |
|
U.S. |
Europe |
ROW |
Total |
|
U.S. |
Europe |
ROW |
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
|
$ |
366 |
|
$ |
431 |
|
$ |
270 |
|
$ |
1,067 |
|
|
179.4 |
% |
99.5 |
% |
87.5 |
% |
117.3 |
% |
|
$ |
131 |
|
$ |
216 |
|
$ |
144 |
|
$ |
491 |
|
Foreign exchange impact |
|
|
|
|
|
|
1.8 |
% |
15.6 |
% |
11.4 |
% |
10.7 |
% |
|
|
|
|
|
Acquisitions |
|
|
|
|
|
|
43.6 |
% |
— |
% |
0.8 |
% |
11.9 |
% |
|
|
|
|
|
Divestitures and discontinued
products |
|
|
|
|
|
|
(11.8 |
%) |
(7.9 |
%) |
(10.9 |
%) |
(9.9 |
%) |
|
|
|
|
|
Organic
sales |
|
|
|
|
|
|
145.8 |
% |
91.8 |
% |
86.2 |
% |
104.6 |
% |
|
|
|
|
|
DENTSPLY SIRONA INC. AND
SUBSIDIARIES(In millions, except
percentages)(unaudited)
For the three months ended June 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 |
|
|
|
|
|
|
|
ADJUSTED NON-GAAP |
(in
millions, except per share amounts and percentages) |
Three Months Ended June 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 June 30, 2021 |
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT |
$ |
598 |
|
32 |
|
(5 |
) |
1 |
|
— |
|
— |
|
— |
|
$ |
28 |
|
$ |
626 |
|
% OF NET SALES |
56.0 |
% |
|
|
|
|
|
|
|
58.7 |
% |
SELLING, GENERAL, AND
ADMINISTRATIVE EXPENSES |
398 |
|
(24 |
) |
(4 |
) |
(3 |
) |
— |
|
— |
|
— |
|
(31 |
) |
367 |
|
% OF NET SALES |
37.3 |
% |
|
|
|
|
|
|
|
34.4 |
% |
RESEARCH AND DEVELOPMENT
EXPENSES |
40 |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
40 |
|
RESTRUCTURING AND OTHER
COSTS |
5 |
|
— |
|
(5 |
) |
— |
|
— |
|
— |
|
— |
|
(5 |
) |
— |
|
OPERATING INCOME |
155 |
|
56 |
|
4 |
|
4 |
|
— |
|
— |
|
— |
|
64 |
|
219 |
|
% OF NET SALES |
14.5 |
% |
|
|
|
|
|
|
|
20.5 |
% |
OTHER INCOME AND EXPENSE |
21 |
|
— |
|
— |
|
(4 |
) |
(3 |
) |
— |
|
— |
|
(7 |
) |
14 |
|
INCOME BEFORE INCOME
TAXES |
134 |
|
56 |
|
4 |
|
8 |
|
3 |
|
— |
|
— |
|
71 |
|
205 |
|
PROVISION FOR INCOME
TAXES |
35 |
|
— |
|
— |
|
— |
|
— |
|
17 |
|
(3 |
) |
14 |
|
49 |
|
% OF PRE-TAX INCOME |
26.1 |
% |
|
|
|
|
|
|
|
23.9 |
% |
LESS: NET INCOME ATTRIBUTABLE
TO NONCONTROLLING INTERESTS |
— |
|
|
|
|
|
|
|
— |
|
— |
|
NET INCOME ATTRIBUTABLE TO
DENTSPLY SIRONA |
$ |
99 |
|
|
|
|
|
|
|
$ |
57 |
|
$ |
156 |
|
% OF NET SALES |
9.3 |
% |
|
|
|
|
|
|
|
14.6 |
% |
EARNINGS PER SHARE -
DILUTED |
$ |
0.45 |
|
|
|
|
|
|
|
$ |
0.26 |
|
$ |
0.71 |
|
For the three months ended June 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 |
|
Professional services costs |
|
Other |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
Cost of products sold |
|
$ |
— |
|
|
$ |
(1 |
) |
|
$ |
— |
|
|
$ |
(4 |
) |
|
$ |
(5 |
) |
Selling, general, and
administrative expenses |
|
3 |
|
|
— |
|
|
1 |
|
|
— |
|
|
4 |
|
Restructuring and other
costs |
|
— |
|
|
5 |
|
|
— |
|
|
— |
|
|
5 |
|
Total |
|
$ |
3 |
|
|
$ |
4 |
|
|
$ |
1 |
|
|
$ |
(4 |
) |
|
$ |
4 |
|
DENTSPLY SIRONA INC. AND
SUBSIDIARIES(In millions, except
percentages)(unaudited)
For the three months ended June 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 |
|
|
|
|
|
|
ADJUSTED NON-GAAP |
(in
millions, except per share amounts and percentages) |
Three Months Ended June 30, 2020 |
Amortization of Purchased Intangible Assets |
Restructuring Program Related Costs and Other
Costs |
Business Combination Related Costs and Fair Value
Adjustments |
Tax Impact of Non-GAAP Adjustments |
Income Tax Related Adjustments |
Total Non-GAAP Adjustments |
Three Months Ended June 30, 2020 |
|
|
|
|
|
|
|
|
|
GROSS PROFIT |
$ |
176 |
|
|
29 |
|
1 |
|
1 |
|
— |
|
— |
|
$ |
31 |
|
$ |
207 |
|
|
% OF NET SALES |
35.8 |
% |
|
|
|
|
|
|
42.2 |
% |
SELLING, GENERAL, AND
ADMINISTRATIVE EXPENSES |
261 |
|
|
(18 |
) |
(12 |
) |
— |
|
— |
|
— |
|
(30 |
) |
231 |
|
|
% OF NET SALES |
53.2 |
% |
|
|
|
|
|
|
47.0 |
% |
RESEARCH AND DEVELOPMENT
EXPENSES |
18 |
|
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
18 |
|
|
RESTRUCTURING AND OTHER
COSTS |
1 |
|
|
— |
|
(1 |
) |
— |
|
— |
|
— |
|
(1 |
) |
— |
|
|
OPERATING (LOSS) INCOME |
(104 |
) |
|
47 |
|
14 |
|
1 |
|
— |
|
— |
|
62 |
|
(42 |
) |
|
% OF NET SALES |
(21.2 |
%) |
|
|
|
|
|
|
(8.6 |
%) |
OTHER INCOME AND EXPENSE |
16 |
|
|
— |
|
— |
|
— |
|
— |
|
— |
|
(2 |
) |
14 |
|
|
(LOSS) INCOME BEFORE INCOME
TAXES |
(120 |
) |
|
47 |
|
14 |
|
1 |
|
— |
|
— |
|
64 |
|
(56 |
) |
|
PROVISION FOR INCOME
TAXES |
(24 |
) |
|
— |
|
— |
|
— |
|
17 |
|
(8 |
) |
9 |
|
(15 |
) |
|
% OF PRE-TAX (LOSS)
INCOME |
20.0 |
% |
|
|
|
|
|
|
26.8 |
% |
LESS: NET (LOSS) INCOME
ATTRIBUTABLE TO NON-CONTROLLING INTERESTS |
(1 |
) |
|
|
|
|
|
|
— |
|
(1.0 |
) |
|
NET (LOSS) INCOME ATTRIBUTABLE
TO DENTSPLY SIRONA |
$ |
(95 |
) |
|
|
|
|
|
|
$ |
55 |
|
$ |
(40 |
) |
|
% OF NET SALES |
(19.3 |
%) |
|
|
|
|
|
|
(8.1 |
%) |
EARNINGS PER SHARE -
DILUTED |
$ |
(0.44 |
) |
|
|
|
|
|
|
$ |
0.26 |
|
$ |
(0.18 |
) |
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding used in calculating diluted GAAP net loss
per common share |
|
|
|
218.7 |
Weighted average
common shares outstanding used in calculating diluted Non-GAAP net
income per common share |
|
|
|
218.7 |
For the three months ended June 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) |
|
|
Costs related to restructuring plans |
|
Professional services costs |
|
Total |
|
|
|
|
|
|
|
|
Cost of products sold |
|
|
$ |
1 |
|
|
$ |
— |
|
|
$ |
1 |
|
Selling, general, and
administrative expenses |
|
|
— |
|
|
12 |
|
|
12 |
|
Restructuring and other
costs |
|
|
1 |
|
|
— |
|
|
1 |
|
Total |
|
|
$ |
2 |
|
|
$ |
12 |
|
|
$ |
14 |
|
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