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Dentsply Sirona Reports First Quarter 2016 Results | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
By: Nasdaq / GlobeNewswire - 06 May 2016 | Back to overview list |
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York, PA, May 6, 2016 - DENTSPLY SIRONA Inc. ("Dentsply Sirona") (NASDAQ: XRAY), The Dental Solutions Company TM , today announced its financial results for the three months ended March 31, 2016. First Quarter 2016 vs. First Quarter 2015 Financial Results Reported net sales of $772.6 million increased 17.7% compared to $656.3 million in the first quarter of 2015, with the consolidation of one month of Sirona. Sales (excluding precious metals) of the combined businesses 1 grew 6.5% at constant currency exchange rates during the full three month period ending March 31, 2016. Excluding a 1.7% benefit from net acquisitions and a 0.7% unfavorable impact from discontinued products, internal sales growth of our combined businesses was 5.5%. Sales (excluding precious metals) were negatively impacted by approximately 2.6% due to the strengthening of the U.S. dollar over the prior year period. On a geographic basis, U.S. reported net sales of $279.7 million increased 16.2% compared to $240.7 million in the first quarter of 2015, with the consolidation of one month of Sirona. Sales (excluding precious metals) of the combined businesses grew 8.8% on a constant currency basis during the full three month period ending March 31, 2016. This includes a benefit of 3.6% from net acquisitions and was unfavorably impacted by discontinued products by approximately 0.5%, which results in internal growth of 5.7%. Reported net sales in Europe increased 10.3% to $311.2 million compared to $282.2 million in the first quarter of 2015, with the consolidation of one month of Sirona. Sales (excluding precious metals) in Europe of the combined businesses grew 3.2% on a constant currency basis during the full three month period ending March 31, 2016. This includes an unfavorable impact of discontinued products of approximately 0.9%, which results in internal growth of 4.1%. Net sales (excluding precious metals) were negatively impacted by approximately 2.8% due to the strengthening of the U.S. dollar over the prior year period. Reported net sales in Rest of World increased 36.2% to $181.7 million compared to $133.4 million in the first quarter of 2015, with the consolidation of one month of Sirona. Sales (excluding precious metals) in Rest of World of the combined businesses grew 8.4% on a constant currency basis during the full three month period ending March 31, 2016. This includes a benefit of 1.4% from net acquisitions and was unfavorably impacted by discontinued products by approximately 0.4%, which results in internal growth of 7.5%. Net sales (excluding precious metals), were negatively impacted by approximately 5.6% due to the strengthening of the U.S. dollar over the prior year period. The Company, post-merger, has been organized into two reporting segments: Dental and Healthcare Consumables and Technologies. Dental and Healthcare Consumables is responsible for the worldwide design, manufacture, sales and distribution of the Company's preventive, restorative, instruments, endodontic, and laboratory dental products, as well as consumable medical device products. Technologies is responsible for the worldwide design, manufacture, sales and distribution of the Company's dental implants, CAD/CAM systems, imaging systems, treatment centers and orthodontic products. In the Dental and Healthcare Consumables segment, net sales increased by 1.8% to $488.8 million in the first quarter of 2016. This increase reflects the consolidation of Sirona for one month. Sales of our combined businesses for Dental and Healthcare Consumables grew 3.9% on a constant currency basis during the full three month period ending March 31, 2016. This includes a benefit of 0.7% from net acquisitions and was unfavorably impacted by discontinued products by approximately 1.2%, which results in internal growth of 4.5%. Net sales, excluding precious metal content, were negatively impacted by approximately 2.8% due to the strengthening of the U.S. dollar over the prior year period. Reported net sales for Technologies, increased by 61.1% to $283.8 million in the first quarter of 2016. This increase reflects the consolidation of Sirona for one month. For the full three month period ending March 31, 2016, sales of the combined businesses for Technologies grew 9.6% on a constant currency basis, and internal sales growth of the combined businesses was 6.8%, excluding a 2.8% benefit from net acquisitions. Net sales, excluding precious metal content, were negatively impacted by approximately 2.3% due to the strengthening of the U.S. dollar over the prior year period. Net income attributable to Dentsply Sirona for the first quarter of 2016 was $125.0 million, or $0.70 per diluted share, compared to $64.0 million, or $0.45 per diluted share in the first quarter of 2015. On an adjusted basis, excluding certain items, net earnings per diluted share grew 16.9% to $0.69 compared to $0.59 in the first quarter of 2015. A reconciliation of the non-GAAP measure to earnings per share calculated on a US-GAAP basis is provided in the attached table. Jeffrey T. Slovin, Dentsply Sirona's Chief Executive Officer commented: "I am very pleased that our combined management team, our 15,000 employees and our business partners came together to deliver strong first quarter results. With the merger completed, Dentsply Sirona, The Dental Solutions Company TM will focus on empowering dental professionals to deliver better, safer and faster dental care and create significant value for practitioners, labs, patients and shareholders around the globe." Mr. Slovin continued: "We are in the early days of our new company, but are committed to accelerating growth and returning capital to shareholders. During the quarter we delivered 5.5% internally generated sales growth and leveraged our operations to deliver 16.9% adjusted EPS growth. We raised our dividend and repurchased $500 million of common stock, consistent with the announcement we made at the time of the merger. Overall, the team is energized about the opportunity. We have much work ahead, and are off to a good start." Guidance for 2016 Management anticipates adjusted EPS for 2016 in the range of $2.70 to $2.80. Mr. Slovin concluded: "In 2016, we expect constant currency revenue growth of 4% to 6%, driven by growth in both of our segments, and strong underlying net income growth." Conference Call/Webcast Information Dentsply Sirona will host a conference call at 8:30 a.m. (Eastern Time) on May 6, 2016 with a live webcast to discuss these financial results. Supplemental materials for reference during the call will be available for download in the investor relations section of Dentsply Sirona's web site, at www.dentsplysirona.com. Investors can access the webcast via a link on Dentsply Sirona's web site at www.dentsplysirona.com. For those planning to participate on the call, please dial (888) 471-3842 for domestic calls, or (719) 457-2662 for international calls. The Conference ID # is 7393848. A replay of the conference call will be available online at the Dentsply Sirona web site, and a dial-in replay will be available for one week following the call at (888) 203-1112 (for domestic calls) or (719) 457-0820 (for international calls), Replay Passcode # 7393848.
About Dentsply Sirona:
Contact Information:
Joshua Zable
Derek Leckow
Forward Looking Statements:
Additional information regarding these and other risk factors and uncertainties that may affect the Company's business and may cause actual results to differ materially from these forward-looking statements, please refer to the Company's most recently filed Annual Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other documents filed from time to time with the SEC. The Company does not give any assurance (1) that it will achieve its expectations, or (2) concerning any result or the timing thereof, in each case, with respect to any regulatory action, administrative proceedings, government investigations, litigation, warning letters, consent decree, cost reductions, business strategies, earnings or revenue trends or future financial results.
Non-US GAAP Financial Measures
Adjusted net income and adjusted EPS are important internal measures for the Company. Senior management receives a monthly analysis of operating results that includes adjusted net income and adjusted EPS and the performance of the Company is measured on this basis along with other performance metrics. The adjusted net income attributable to Dentsply Sirona consists of net income attributable to Dentsply Sirona adjusted to exclude the net of tax impact of the following: (1) Business combination related costs and fair value adjustments. These adjustments include costs related to integrating and consummating mergers and recently acquired businesses, as well as costs, gains and losses related to the disposal of businesses or product lines. In addition, this category includes the roll off to the consolidated statement of operations of fair value adjustments related to business combinations, except for amortization expense noted below. These items are irregular in timing and as such may not be indicative of past and future performance of the Company and are therefore excluded to allow investors to better understand underlying operating trends. (2) Restructuring, 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 terminations costs, related professional service costs, duplicate facility and labor costs associated with specific restructuring initiatives, as well as, legal settlements and impairments of assets. These items are irregular in timing, amount and impact to the Company's financial performance. As such, these items may not be indicative of past and future performance of the Company and are therefore excluded for the purpose of understanding underlying operating trends. (3) Amortization of purchased intangible assets. This adjustment excludes the periodic amortization expense related to purchased intangible assets. Amortization expense has been excluded from adjusted net income attributed to Dentsply Sirona to allow investors to evaluate and understand operating trends excluding these large non-cash charges. (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 due solely to the changes in fair value and credit risk. These items can be variable and driven more by market conditions than the Company's operating performance. As such, these items may not be indicative of past and future performance of the Company and therefore are excluded for comparability purposes. (5) Certain fair value adjustments related to an unconsolidated affiliated company. This adjustment represents the fair value adjustment of the unconsolidated affiliated company's convertible debt instrument held by the Company. The affiliate is accounted for under the equity method of accounting. The fair value adjustment is driven by open market pricing of the affiliate's equity instruments, which has a high degree of variability and may not be indicative of the operating performance of the affiliate or the Company. (6) 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. These adjustments are irregular in timing and amount and may significantly impact the Company's operating performance. As such, these items may not be indicative of past and future performance of the Company and therefore are excluded for comparability purposes. Adjusted earnings per diluted common share is calculated by dividing adjusted net income attributable to Dentsply Sirona by diluted weighted-average common shares outstanding. Adjusted net income attributable to Dentsply Sirona and adjusted earnings per diluted common share are considered measures not calculated in accordance with US GAAP, and therefore are non-US GAAP measures. These non-US GAAP measures may differ from other companies. Income tax related adjustments may include the impact to adjust the interim effective income tax rate to the expected annual effective tax rate. The non-US GAAP financial information should not be considered in isolation from, or as a substitute for, measures of financial performance prepared in accordance with US GAAP. The Company defines "constant currency sales growth" as the increase or decrease in net sales from period to period excluding precious metal content and the impact of changes in foreign currency exchange rates. This impact is calculated by comparing current-period revenues to prior-period revenues, with both periods converted at the U.S. dollar to local currency average foreign exchange rate for each month of the prior period, for the currencies in which the Company does business. The Company defines "internal sales growth" as constant currency sales growth excluding the impacts of net acquisitions and divestitures, merger accounting impacts and discontinued products.
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Copyright 2016 Nasdaq / GlobeNewswire | Back to overview list |