DENTSPLY SIRONA Inc. (“Dentsply Sirona” or the "Company") (Nasdaq:
XRAY) today announced its preliminary financial results for the
first quarter of 2022.
First quarter net sales of $965 million decreased
(6.1%), compared to $1,027 million in the first quarter of 2021.
Net income for the first quarter of 2022 was $65 million, or $0.30
per diluted share, compared to $117 million, or $0.53 per diluted
share in the first quarter of 2021. Adjusted earnings per diluted
share decreased to $0.52 compared to $0.72 in the first quarter of
2021. A reconciliation of Non-GAAP measures (including organic
sales, adjusted operating income and margin, adjusted EPS, and
adjusted EBITDA) to GAAP measures is provided
below.
“The first quarter was a challenging quarter, and
our financial performance and revised outlook reflect the impact of
larger-than-expected macroeconomic headwinds and
lower-than-expected performance in the United States. Despite these
challenges, organic growth in Europe was robust, demand remains
strong, and our teams are working diligently to reduce lead times
to address supply chain challenges," said John Groetelaars, Interim
Chief Executive Officer. "We are confident in our ability to
address these transient headwinds and we have high conviction about
our future. Dental remains an attractive market. We have a healthy
innovation pipeline, leading digital capabilities, and a
well-positioned portfolio which will drive sustainable growth
long-term."
Q1 22 Summary Results (GAAP)
(in millions, except per share amount and
percentages) |
|
Q1 22 |
|
Q1 21 |
|
YoY |
Net Sales |
|
965 |
|
1,027 |
|
(6.1%) |
Operating Income |
|
93 |
|
154 |
|
(39.5%) |
Operating Income % |
|
9.7% |
|
15.0% |
|
|
Diluted EPS |
|
0.30 |
|
0.53 |
|
(43.8%) |
* Percentages are based on actual values and may
not recalculate due to rounding.
Q1 22 Summary Results
(Non-GAAP)[1]
(in millions, except per share amount and
percentages) |
|
Q1 22 |
|
Q1 21 |
|
YoY |
Net Sales |
|
965 |
|
1,027 |
|
(6.1%) |
Organic Sales Growth % |
|
|
|
|
|
(1.4%) |
Adj. Operating Income |
|
153 |
|
219 |
|
(30.0%) |
Adj. Operating Income % |
|
15.9% |
|
21.3% |
|
|
Adj. EPS |
|
0.52 |
|
0.72 |
|
(27.5%) |
[1] Organic sales growth, adjusted operating
income, and adjusted 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
Technologies &
EquipmentFirst quarter 2022 net sales were $565 million,
down (5.4%) versus prior year. On an organic basis, net sales
decreased by (0.5%) as compared to prior year. Currency negatively
impacted sales by (5.3%) and acquisitions increased sales by 0.4%.
The decline in organic sales was driven by supply chain constraints
and a weaker sales performance in the U.S., partially offset by
continued growth in dentist-directed clear aligners and
Implants.
ConsumablesFirst quarter 2022
net sales were $400 million, down (7.1%) versus prior year. On an
organic basis, net sales decreased by (2.7%) as compared to prior
year. Currency negatively impacted sales by (3.7%), while
divestitures and discontinued products negatively impacted sales by
(0.7%). The decline in organic sales was driven by a weaker sales
performance in the U.S., the impact of COVID-19 variants on sales
volumes in certain markets, supply chain constraints, and a tough
comparison to the prior year due to the COVID-19 rebound; partially
offset by increased pricing and demand for Endodontic
Consumables.
Cash Flow and Liquidity
Operating cash flow in the first quarter of 2022
was $93 million, as compared to $49 million in the prior
year. In the first quarter of 2022, the Company paid $24 million in
dividends and executed share repurchases of $150 million, resulting
in a total of $174 million returned to shareholders. At
March 31, 2022, the Company had $374 million of cash available
on its balance sheet.
Full Year 2022 Outlook
Based on the results of the first quarter and a
challenging macroeconomic environment, we are updating our 2022
outlook. The revised outlook for 2022 includes organic sales growth
of 2% to 3%, with net sales in the range of $4.1 billion to $4.2
billion. Adjusted operating income margin is expected to be greater
than 17% for the full year. Adjusted EPS is estimated to be in the
range of $2.35 to $2.55.
Further 2022 outlook assumptions are included in
the Q1 2022 Earnings Presentation posted on the Investors section
of the Dentsply Sirona website at
https://investor.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
- Leadership Update -
Appointed John Groetelaars, who serves on Dentsply Sirona’s Board
of Directors, as Interim Chief Executive Officer; and Barbara Bodem
as Interim Chief Financial Officer. The search process is underway
for a permanent CEO and CFO. In the search, the Board is focused on
identifying permanent leadership that can bring executional
expertise and operating discipline to leverage the underlying
strengths of Dentsply Sirona’s strong foundation and position in
the dental market.
- Share Repurchase Program
- In March, Dentsply Sirona announced a $150 million
accelerated share repurchase program. At March 31, 2022, $770
million of authorization remained under the $1 billion share
repurchase program.
- SureSmile Launches -
In March, Dentsply Sirona introduced SureSmile VPro, SureSmile
Retainers and SureSmile Whitening Kit as part of its clear aligner
treatment offerings in the U.S. The latest additions are part of
the brand’s ongoing commitment to provide doctors with clear
aligner solutions for a comprehensive treatment approach.
- DS Core - In May,
Dentsply Sirona introduced DS Core, a cloud-based solution powered
by the collaboration between Dentsply Sirona and Google Cloud.
Dentsply Sirona also introduced two new service offerings: DS Core
Create and DS Core Care.
- Partnership with the Platform
for Better Oral Health in Europe - As part of its
sustainability strategy “Beyond: Taking action for a brighter
world,” Dentsply Sirona has expanded its successful engagement for
better oral health and healthy smiles, by joining the Platform for
Better Oral Health in Europe as a corporate partner.
The amounts set forth above in this press release
reflect preliminary financial results. These preliminary financial
results are based upon information available to management as of
the date of this press release. The Company’s actual results may
differ from these results due to final adjustments and developments
that may arise or information that may become available between now
and the time the Company’s financial results for the three months
period ended March 31, 2022 are finalized and included in the
Company’s Form 10-Q for the three months period ended March 31,
2022. During the course of the Audit and Finance Committee’s
investigation, the Company may identify items that could cause its
actual results to be different from these preliminary financial
results. The Company’s independent registered public accounting
firm has not audited, reviewed, compiled or performed any
procedures with respect to the preliminary financial results, nor
have they expressed any opinion or any other form of assurance on
such results or their achievability, and assume no responsibility
for, and disclaim any association with, such results.
Other Corporate Developments
The Company today has filed a Form 12b-25,
Notification of Late Filing, with the U.S. Securities and Exchange
Commission (SEC). As noted in the Form 12b-25, the Audit and
Finance Committee of the Company’s Board of Directors commenced an
internal investigation regarding certain financial reporting
matters. The investigation is ongoing, and the Company cannot
predict the duration or outcome of the investigation. As a result,
the Company has not yet finalized its financial statements or its
assessment of the impact of the investigation on its historical
financial statements or for the financial statements for the three
months ended March 31, 2022, and is therefore unable to file the
Form 10-Q on a timely basis. For additional information, please
refer to the Form 12b-25.
Conference Call/Webcast
InformationDentsply Sirona’s management team will host an
investor conference call and live webcast on May 10, 2022 at
8:30 am ET. The live webcast of the investor conference call and a
presentation related to the call will be available on the Investors
section of the Company’s website at
https://investor.dentsplysirona.com.
For those planning to participate on the call,
please dial +1-866-777-2509 for domestic calls, or +1-412-317-5413
for international calls. A replay of the conference call will be
available online on the Dentsply Sirona website, and a dial-in
replay will be available for one week following the call at
+1-877-344-7529 (for domestic calls) or +1-412-317-0088 (for
international calls), replay conference ID # 6490428.
About Dentsply SironaDentsply
Sirona is the world’s largest manufacturer of professional dental
products and technologies, with a century 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. Dentsply Sirona’s products provide innovative, high-quality
and effective solutions to advance patient care and deliver better
and safer dental care. Dentsply Sirona's headquarters is located in
Charlotte, North Carolina. 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.comForward-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, 2021 and any updating information in
subsequent SEC filings including the Company's Quarterly Report on
Form 10-Q for the quarterly period ending March 31, 2022. 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(in millions, except per share
amounts)(unaudited)
|
Three Months Ended March 31, |
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
Net sales |
$ |
965 |
|
|
$ |
1,027 |
|
Cost of products sold |
|
450 |
|
|
|
448 |
|
|
|
|
|
Gross profit |
|
515 |
|
|
|
579 |
|
Selling, general, and administrative expenses |
|
374 |
|
|
|
382 |
|
Research and development expenses |
|
45 |
|
|
|
40 |
|
Restructuring and other costs |
|
3 |
|
|
|
3 |
|
|
|
|
|
Operating income |
|
93 |
|
|
|
154 |
|
|
|
|
|
Other income and expenses: |
|
|
|
Interest expense, net |
|
12 |
|
|
|
14 |
|
Other expense (income), net |
|
(2 |
) |
|
|
(9 |
) |
|
|
|
|
Income before income taxes |
|
83 |
|
|
|
149 |
|
Provision for income taxes |
|
18 |
|
|
|
32 |
|
|
|
|
|
Net income |
|
65 |
|
|
|
117 |
|
|
|
|
|
Less: Net income attributable to noncontrolling interest |
|
— |
|
|
|
— |
|
|
|
|
|
Net income attributable to Dentsply Sirona |
$ |
65 |
|
|
$ |
117 |
|
|
|
|
|
Net income per common share attributable to Dentsply Sirona: |
|
|
|
Basic |
$ |
0.30 |
|
|
$ |
0.53 |
|
Diluted |
$ |
0.30 |
|
|
$ |
0.53 |
|
|
|
|
|
Weighted average common shares outstanding: |
|
|
|
Basic |
|
217.0 |
|
|
|
218.8 |
|
Diluted |
|
217.8 |
|
|
|
219.9 |
|
|
|
|
|
|
|
|
|
DENTSPLY SIRONA INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE
SHEETS(in millions)(unaudited)
|
March 31, 2022 |
|
December 31, 2021 |
|
|
|
|
Assets |
|
|
|
Current Assets: |
|
|
|
Cash and cash equivalents |
$ |
374 |
|
|
$ |
339 |
|
Accounts and notes receivables-trade, net |
|
707 |
|
|
|
747 |
|
Inventories, net |
|
541 |
|
|
|
504 |
|
Prepaid expenses and other current assets |
|
264 |
|
|
|
247 |
|
Total Current Assets |
|
1,886 |
|
|
|
1,837 |
|
|
|
|
|
Property, plant, and equipment, net |
|
771 |
|
|
|
773 |
|
Operating lease right-of-use assets, net |
|
204 |
|
|
|
193 |
|
Identifiable intangible assets, net |
|
2,228 |
|
|
|
2,319 |
|
Goodwill |
|
3,944 |
|
|
|
3,976 |
|
Other noncurrent assets |
|
127 |
|
|
|
122 |
|
Total Assets |
$ |
9,160 |
|
|
$ |
9,220 |
|
|
|
|
|
Liabilities and Equity |
|
|
|
Current Liabilities: |
|
|
|
Accounts payable |
$ |
285 |
|
|
$ |
268 |
|
Accrued liabilities |
|
618 |
|
|
|
679 |
|
Income taxes payable |
|
53 |
|
|
|
57 |
|
Notes payable and current portion of long-term debt |
|
347 |
|
|
|
182 |
|
Total Current Liabilities |
|
1,303 |
|
|
|
1,186 |
|
|
|
|
|
Long-term debt |
|
1,872 |
|
|
|
1,913 |
|
Operating lease liabilities |
|
157 |
|
|
|
145 |
|
Deferred income taxes |
|
406 |
|
|
|
408 |
|
Other noncurrent liabilities |
|
516 |
|
|
|
525 |
|
Total Liabilities |
|
4,254 |
|
|
|
4,177 |
|
|
|
|
|
Total Equity |
|
4,906 |
|
|
|
5,043 |
|
|
|
|
|
Total Liabilities and Equity |
$ |
9,160 |
|
|
$ |
9,220 |
|
|
|
|
|
DENTSPLY SIRONA INC. AND
SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH
FLOWS(in millions)(unaudited)
|
Three Months Ended March 31, |
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
Cash flows from operating activities: |
|
|
|
Net income |
$ |
65 |
|
|
$ |
117 |
|
|
|
|
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
Depreciation |
|
29 |
|
|
|
32 |
|
Amortization of intangible assets |
|
55 |
|
|
|
56 |
|
Deferred income taxes |
|
(13 |
) |
|
|
(3 |
) |
Stock based compensation expense |
|
11 |
|
|
|
13 |
|
Other non-cash (income) expense |
|
(1 |
) |
|
|
19 |
|
Gain 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 |
|
32 |
|
|
|
11 |
|
Inventories, net |
|
(39 |
) |
|
|
(50 |
) |
Prepaid expenses and other current assets, net |
|
(16 |
) |
|
|
(27 |
) |
Other noncurrent assets |
|
3 |
|
|
|
(13 |
) |
Accounts payable |
|
18 |
|
|
|
(17 |
) |
Accrued liabilities |
|
(47 |
) |
|
|
(81 |
) |
Income taxes |
|
2 |
|
|
|
(8 |
) |
Other noncurrent liabilities |
|
(6 |
) |
|
|
13 |
|
Net cash provided by operating activities |
|
93 |
|
|
|
49 |
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
Capital expenditures |
|
(44 |
) |
|
|
(30 |
) |
Cash paid for acquisitions of businesses and equity investments,
net of cash acquired |
|
— |
|
|
|
(92 |
) |
Cash received on sale of non-strategic businesses or product
lines |
|
— |
|
|
|
19 |
|
Cash received on derivative contracts |
|
1 |
|
|
|
— |
|
Net cash used in investing activities |
|
(43 |
) |
|
|
(103 |
) |
|
|
|
|
Cash flows from financing activities: |
|
|
|
Cash paid for accelerated share repurchase |
|
(150 |
) |
|
|
— |
|
Proceeds on short-term borrowings |
|
163 |
|
|
|
30 |
|
Cash paid for treasury stock |
|
— |
|
|
|
(90 |
) |
Cash dividends paid |
|
(24 |
) |
|
|
(22 |
) |
Proceeds from long-term borrowings, net of deferred financing
costs |
|
5 |
|
|
|
4 |
|
Repayments on long-term borrowings, net |
|
(2 |
) |
|
|
— |
|
Proceeds from exercised stock options |
|
5 |
|
|
|
33 |
|
Other financing activities, net |
|
(7 |
) |
|
|
(8 |
) |
Net cash used in financing activities |
|
(10 |
) |
|
|
(53 |
) |
Effect of exchange rate changes on cash and cash equivalents |
|
(5 |
) |
|
|
(13 |
) |
Net increase (decrease) in cash and cash equivalents |
|
35 |
|
|
|
(120 |
) |
Cash and cash equivalents at beginning of period |
|
339 |
|
|
|
438 |
|
Cash and cash equivalents at end of period |
$ |
374 |
|
|
$ |
318 |
|
|
|
|
|
|
|
|
|
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. These
Non-GAAP measures are used by the Company to measure its
performance and may differ from those used by other companies.
Management believes that these Non-GAAP measures
are helpful as they provide another measure of the results of
operations, and are frequently used by investors and analysts to
evaluate the Company’s performance 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
Company.
Organic Sales
The Company defines "organic sales" as the reported
net sales adjusted for: (1) net sales from acquired businesses
recorded prior to the first anniversary of the acquisition, (2) net
sales attributable to disposed businesses or discontinued product
lines in both the current and prior year periods, and (3) the
impact of foreign currency changes, which is calculated by
translating current period net sales using the comparable prior
period's currency exchange rates.
Adjusted Operating Income (Loss) and Margin
Adjusted operating income (loss) is computed by
excluding the following items from operating income:
(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 post-acquisition roll-off
of fair value adjustments recorded 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.
(2) Restructuring
program related costs and other costs. These adjustments include
costs related to the implementation of restructuring initiatives,
including but not limited to, severance costs, facility closure
costs, lease and contract termination costs, and related
professional service 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 is continually seeking to take actions that
could enhance its efficiency, consequently restructuring charges
may recur but 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 as such may not be indicative of past and
future performance of the Company.
(3) Amortization of
purchased intangible assets. This adjustment excludes the periodic
amortization expense related to purchased intangible assets, which
are recorded at fair value 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, and as such may not be indicative of the
future performance of the Company.
(4) Fair value and
credit risk adjustments. These adjustments include the non-cash
mark-to-market changes in fair value associated with pension assets
and obligations and equity-method investments. Although these
adjustments are recurring in nature, they are subject to
significant fluctuations from period to period due to changes in
the underlying assumptions and market conditions. The non-service
component of pension expense is a recurring item, however it is
subject to significant fluctuations from period to period due to
changes in actuarial assumptions, interest rates, plan changes,
settlements, curtailments, and other changes in facts and
circumstances. As such, these items may not be indicative of past
and future performance of the Company.
Adjusted operating margin is calculated by dividing
adjusted operating income by net sales.
Adjusted Net Income (Loss)
Adjusted net income (loss) consists of the reported
net income (loss) in accordance with US GAAP, adjusted to exclude
the items identified above, the related income tax impacts, and
discrete income tax adjustments such as: final settlement of income
tax audits, discrete tax items resulting from the implementation of
restructuring initiatives and the vesting and exercise of employee
share-based compensation, any difference between the interim and
annual effective tax rate, and adjustments relating to prior
periods.
These adjustments are irregular in timing, and the
variability in amounts may not be indicative of past and future
performance of the Company and therefore are excluded for
comparability purposes.
Adjusted Earnings (Loss) Per Diluted Share
Adjusted earnings (loss) (EPS) per diluted share is
computed by dividing diluted adjusted earnings (losses)
attributable to Dentsply Sirona shareholders by the diluted
weighted average number of common shares outstanding.
Adjusted EBITDA
Adjusted EBITDA is computed by excluding interest,
income tax expense, depreciation and amortization, as well as the
adjustments described above for computing Adjusted Operating
Income.
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 March 31, 2022 |
|
Q1 2022 Change |
|
Three Months Ended March 31, 2021 |
(in millions, except percentages) |
|
Technologies & Equipment |
Consumables |
Total |
|
Technologies & Equipment |
Consumables |
Total |
|
Technologies & Equipment |
Consumables |
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
|
$ |
565 |
$ |
400 |
$ |
965 |
|
(5.4 |
%) |
(7.1 |
%) |
(6.1 |
%) |
|
$ |
597 |
$ |
430 |
$ |
1,027 |
Foreign exchange impact |
|
|
|
|
|
(5.3 |
%) |
(3.7 |
%) |
(4.6 |
%) |
|
|
|
|
Acquisitions |
|
|
|
|
|
0.4 |
% |
— |
% |
0.2 |
% |
|
|
|
|
Divestitures and discontinued products |
|
|
|
|
|
— |
% |
(0.7 |
%) |
(0.3 |
%) |
|
|
|
|
Organic sales |
|
|
|
|
|
(0.5 |
%) |
(2.7 |
%) |
(1.4 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* 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 March 31, 2022 |
|
Q1 2022 Change |
|
Three Months Ended March 31, 2021 |
(in millions, except percentages) |
|
U.S. |
Europe |
ROW |
Total |
|
U.S. |
Europe |
ROW |
Total |
|
U.S. |
Europe |
ROW |
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
|
$ |
299 |
$ |
416 |
$ |
250 |
$ |
965 |
|
(13.7 |
%) |
(0.6 |
%) |
(4.6 |
%) |
(6.1 |
%) |
|
$ |
347 |
$ |
418 |
$ |
262 |
$ |
1,027 |
Foreign exchange impact |
|
|
|
|
|
|
(0.4 |
%) |
(7.4 |
%) |
(5.8 |
%) |
(4.6 |
%) |
|
|
|
|
|
Acquisitions |
|
|
|
|
|
|
0.6 |
% |
— |
% |
0.1 |
% |
0.2 |
% |
|
|
|
|
|
Divestitures and discontinued products |
|
|
|
|
|
|
(0.4 |
%) |
(0.2 |
%) |
(0.3 |
%) |
(0.3 |
%) |
|
|
|
|
|
Organic sales |
|
|
|
|
|
|
(13.5 |
%) |
7.0 |
% |
1.4 |
% |
(1.4 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* 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 March 31, 2022, 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 March 31, 2022 |
Amortization of Purchased Intangible Assets |
Restructuring Program Related Costs and Other
Costs |
Business Combination Related Costs and Fair Value
Adjustments |
Fair Value and Credit Risk Adjustments |
Tax Impact of Non-GAAP Adjustments |
Income Tax Related Adjustments |
Total Non-GAAP Adjustments |
Three Months Ended March 31, 2022 |
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT |
$ |
515 |
|
32 |
|
— |
|
— |
— |
|
— |
— |
|
$ |
32 |
|
$ |
547 |
|
% OF NET SALES |
|
53.3 |
% |
|
|
|
|
|
|
|
|
56.7 |
% |
SELLING, GENERAL, AND
ADMINISTRATIVE EXPENSES |
|
374 |
|
(23 |
) |
(2 |
) |
— |
— |
|
— |
— |
|
|
(25 |
) |
|
349 |
|
% OF NET SALES |
|
38.7 |
% |
|
|
|
|
|
|
|
|
36.2 |
% |
RESEARCH AND DEVELOPMENT
EXPENSES |
|
45 |
|
— |
|
— |
|
— |
— |
|
— |
— |
|
|
— |
|
|
45 |
|
RESTRUCTURING AND OTHER
COSTS |
|
3 |
|
— |
|
(3 |
) |
— |
— |
|
— |
— |
|
|
(3 |
) |
|
— |
|
OPERATING INCOME |
|
93 |
|
55 |
|
5 |
|
— |
— |
|
— |
— |
|
|
60 |
|
|
153 |
|
% OF NET SALES |
|
9.7 |
% |
|
|
|
|
|
|
|
|
15.9 |
% |
OTHER INCOME AND EXPENSE |
|
10 |
|
— |
|
— |
|
— |
(2 |
) |
— |
— |
|
|
(2 |
) |
|
8 |
|
INCOME BEFORE INCOME
TAXES |
|
83 |
|
55 |
|
5 |
|
— |
2 |
|
— |
— |
|
|
62 |
|
|
145 |
|
PROVISION FOR INCOME
TAXES |
|
18 |
|
— |
|
— |
|
— |
— |
|
16 |
(2 |
) |
|
14 |
|
|
32 |
|
% OF PRE-TAX INCOME |
|
21.1 |
% |
|
|
|
|
|
|
|
|
21.9 |
% |
LESS: NET INCOME ATTRIBUTABLE
TO NONCONTROLLING INTERESTS |
|
— |
|
|
|
|
|
|
|
|
— |
|
|
— |
|
NET INCOME ATTRIBUTABLE TO
DENTSPLY SIRONA |
$ |
65 |
|
|
|
|
|
|
|
$ |
48 |
|
$ |
113 |
|
% OF NET SALES |
|
6.8 |
% |
|
|
|
|
|
|
|
|
11.7 |
% |
EARNINGS PER SHARE -
DILUTED |
$ |
0.30 |
|
|
|
|
|
|
|
$ |
0.22 |
|
$ |
0.52 |
|
* 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 March 31, 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 March 31, 2021 |
Amortization of Purchased Intangible Assets |
Restructuring Program Related Costs and Other
Costs |
Business Combination Related Costs and Fair Value
Adjustments |
Fair Value and Credit Risk Adjustments |
Tax Impact of Non-GAAP Adjustments |
Income Tax Related Adjustments |
Total Non-GAAP Adjustments |
Three Months Ended March 31, 2021 |
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT |
$ |
579 |
|
32 |
|
(1 |
) |
1 |
|
— |
|
— |
— |
$ |
32 |
|
$ |
611 |
|
% OF NET SALES |
|
56.4 |
% |
|
|
|
|
|
|
|
|
59.5 |
% |
SELLING, GENERAL, AND
ADMINISTRATIVE EXPENSES |
|
382 |
|
(24 |
) |
(1 |
) |
(5 |
) |
— |
|
— |
— |
|
(30 |
) |
|
352 |
|
% OF NET SALES |
|
37.2 |
% |
|
|
|
|
|
|
|
|
34.3 |
% |
RESEARCH AND DEVELOPMENT
EXPENSES |
|
40 |
|
— |
|
— |
|
— |
|
— |
|
— |
— |
|
— |
|
|
40 |
|
RESTRUCTURING AND OTHER
COSTS |
|
3 |
|
— |
|
(3 |
) |
— |
|
— |
|
— |
— |
|
(3 |
) |
|
— |
|
OPERATING INCOME |
|
154 |
|
56 |
|
3 |
|
6 |
|
— |
|
— |
— |
|
65 |
|
|
219 |
|
% OF NET SALES |
|
15.0 |
% |
|
|
|
|
|
|
|
|
21.3 |
% |
OTHER INCOME AND EXPENSE |
|
5 |
|
— |
|
— |
|
13 |
|
(4 |
) |
— |
— |
|
9 |
|
|
14 |
|
INCOME BEFORE INCOME
TAXES |
|
149 |
|
56 |
|
3 |
|
(7 |
) |
4 |
|
— |
— |
|
56 |
|
|
205 |
|
PROVISION FOR INCOME
TAXES |
|
32 |
|
— |
|
— |
|
— |
|
— |
|
13 |
2 |
|
15 |
|
|
47 |
|
% OF PRE-TAX INCOME |
|
21.5 |
% |
|
|
|
|
|
|
|
|
22.9 |
% |
LESS: NET INCOME ATTRIBUTABLE
TO NON-CONTROLLING INTERESTS |
|
— |
|
|
|
|
|
|
|
|
— |
|
|
— |
|
NET INCOME ATTRIBUTABLE TO
DENTSPLY SIRONA |
$ |
117 |
|
|
|
|
|
|
|
$ |
41 |
|
$ |
158 |
|
% OF NET SALES |
|
11.4 |
% |
|
|
|
|
|
|
|
|
15.4 |
% |
EARNINGS PER SHARE -
DILUTED |
$ |
0.53 |
|
|
|
|
|
|
|
$ |
0.19 |
|
$ |
0.72 |
|
* Percentages are based on actual values and may
not recalculate due to rounding.
A reconciliation of as reported GAAP net income to
Adjusted EBITDA for the three months ended March 31, 2022 and
2021 is as follows:
|
|
Three Months Ended March 31, |
(in millions) |
|
|
2022 |
|
|
2021 |
|
|
|
|
|
|
GAAP net income |
|
$ |
65 |
|
$ |
117 |
|
Interest expense, net |
|
|
12 |
|
|
14 |
|
Income tax expense |
|
|
18 |
|
|
32 |
|
Depreciation(1) |
|
|
28 |
|
|
30 |
|
Amortization of purchased intangible assets |
|
|
55 |
|
|
56 |
|
Restructuring program related costs and other costs |
|
|
5 |
|
|
3 |
|
Business combination related costs and fair value adjustments |
|
|
— |
|
|
(7 |
) |
Fair value and credit risk adjustments |
|
|
2 |
|
|
4 |
|
Adjusted EBITDA |
|
$ |
185 |
|
$ |
249 |
|
|
|
|
|
|
|
|
|
(1) Excludes those depreciation related amounts
which were included as part of the business combination related
adjustments above.
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