EX-99 2 ex991.txt EXHIBIT 99.1 NEWS For Further Information Contact: Bret W. Wise FOR IMMEDIATE RELEASE Senior Vice President and Chief Financial Officer (717) 849-4718 Dentsply International Inc. Reports Record First Quarter 2004 Sales and Earnings York, PA - April 27, 2004 -- DENTSPLY International Inc. (NASDAQ-XRAY) today announced record sales and earnings for the quarter ended March 31, 2004. Net sales increased 11.9% to $415.4 million compared to $371.2 million reported for the first quarter of 2003. Net sales, excluding precious metal content, increased 13.3% in the first quarter of 2004, reflecting an improvement in the rate of organic growth and the benefit of currency translation. Net income for the first quarter of 2004 was $88.8 million, or $1.09 per diluted share. Income from continuing operations for the quarter was $45.8 million, $0.56 per diluted share, an increase of 19.1% compared to income from continuing operations of $37.4 million, $0.47 per diluted share in 2003. The 2004 period includes pretax charges of $0.7 million relating to restructuring activities to consolidate the Company's United States laboratory businesses and a reduction in income taxes of $1.2 million related to tax matters from prior periods. The results for 2004 also include $0.53 per diluted share from discontinued operations, consisting primarily of the net gain on the sale of the Company's Gendex equipment business which was completed in February 2004. Gary K. Kunkle, Vice Chairman and Chief Executive Officer commented that, "We are pleased by the record performance in the first quarter of 2004, particularly the improvement in overall sales growth. Our growth throughout Europe was exceptional and we benefited from a return to strong growth in Asia. While our sales growth in the United States remains below historic levels, market indicators suggest an improvement in this country as we move through the year." Mr. Kunkle also said, "In the first quarter we completed the relocation of our distribution center in Europe without disruption of deliveries to customers. This should allow us to improve future deliveries and customer service levels throughout the European Community where we have experienced significant growth over the past two years. The Company also expects to complete the consolidation of the U.S. laboratory businesses in the second quarter of 2004. We continue to see opportunities to grow earnings through combining resources and lowering costs. These conditions, combined with an outlook for stronger sales growth, position us well for another record year in 2004." DENTSPLY Conference Call Information DENTSPLY will hold a conference call on Wednesday, April 28, 2004 at 8:30 AM Eastern Time. To access the call, dial (877) 885-5820 (for domestic calls) and (706) 643-9578 (for international calls). This conference call will be broadcast live on the Internet at www.dentsply.com. An audio replay of the conference call will be available for two weeks. To access the replay, please dial (800) 642-1687 (for domestic calls) and (706) 645-9291 (for international calls). Call I.D.: 6651354. DENTSPLY designs, develops, manufactures and markets a broad range of products for the dental market. The Company believes that it is the world's leading manufacturer and distributor of dental prosthetics, precious metal dental alloys, dental ceramics, endodontic instruments and materials, prophylaxis paste, dental sealants, ultrasonic scalers, and crown and bridge materials; the leading United States manufacturer and distributor of dental handpieces, dental x-ray film holders, film mounts and bone substitute/grafting materials; and a leading worldwide manufacturer or distributor of dental injectible anesthetics, impression materials, orthodontic appliances, dental cutting instruments and dental implants. The Company distributes its dental products in over 120 countries under some of the most well established brand names in the industry. DENTSPLY is committed to the development of innovative, high quality, cost-effective new products for the dental market. This press release contains forward-looking statements regarding future events or the future financial performance of the company. Actual events or results may differ materially from those in the projections or other forward-looking statements set forth herein as a result of certain risk factors. These risk factors include without limitation; the continued strength of dental markets, the timing, success and market reception for our new and existing products, and changes in the general economic environment that could affect our business. For an additional description of risk factors, please refer to the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission. DENTSPLY INTERNATIONAL INC. CONSOLIDATED STATEMENTS OF INCOME (IN THOUSANDS EXCEPT PER SHARE DATA)
THREE MONTHS ENDED March 31, ------------------------------ 2004 2003 ------------- -------------- NET SALES $415,381 $371,236 NET SALES - Ex Precious Metals $359,004 $316,886 COST OF PRODUCTS SOLD 210,524 188,474 GROSS PROFIT 204,857 182,762 % OF NET SALES 49.3% 49.2% % OF NET SALES - Ex Precious Metals 57.1% 57.7% SELLING, GENERAL & ADMINISTRATIVE EXPENSES 134,027 122,238 RESTRUCTURING (INCOME)/COSTS 724 0 ------------- -------------- INCOME FROM OPERATIONS 70,106 60,524 % OF NET SALES 16.9% 16.3% % OF NET SALES - Ex Precious Metals 19.5% 19.1% NET INTEREST AND OTHER EXPENSE (INCOME) 5,496 5,318 ------------- -------------- PRE-TAX INCOME FROM CONTINUING OPERATIONS 64,610 55,206 INCOME TAXES 18,842 17,767 ------------- -------------- INCOME FROM CONTINUING OPERATIONS 45,768 37,439 % OF NET SALES 11.0% 10.1% % OF NET SALES - Ex Precious Metals 12.7% 11.8% INCOME FROM DISCONTINUED OPERATIONS, NET OF TAX (INCLUDING GAIN ON SALE IN 2004 OF $43,031) 43,064 828 ------------- -------------- NET INCOME $88,832 $38,267 ============= ============== EARNINGS PER SHARE - BASIC: CONTINUING OPERATIONS $0.57 $0.48 DISCONTINUED OPERATIONS $0.54 $0.01 ------------- -------------- TOTAL EARNINGS PER SHARE $1.11 $0.49 ============= ============== EARNINGS PER SHARE - DILUTIVE: CONTINUING OPERATIONS $0.56 $0.47 DISCONTINUED OPERATIONS $0.53 $0.01 ------------- -------------- TOTAL EARNINGS PER SHARE $1.09 $0.48 ============= ============== DIVIDENDS PER SHARE $0.0525 $0.0460 WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING -BASIC 79,922 78,442 -DILUTIVE 81,501 80,007
DENTSPLY INTERNATIONAL INC. CONDENSED BALANCE SHEETS (IN THOUSANDS) MARCH 31, DECEMBER 31, 2004 2003 ASSETS CURRENT ASSETS: CASH AND CASH EQUIVALENTS $ 287,710 $ 163,755 ACCOUNTS AND NOTES RECEIVABLE-TRADE, NET 248,387 241,385 INVENTORIES, NET 207,836 205,587 OTHER CURRENT ASSETS 89,711 88,463 ASSETS HELD FOR SALE -- 28,262 TOTAL CURRENT ASSETS 833,644 727,452 PROPERTY,PLANT AND EQUIPMENT, NET 374,567 376,211 GOODWILL, NET 957,119 963,264 IDENTIFIABLE INTANGIBLES ASSETS, NET 241,837 246,475 OTHER NONCURRENT ASSETS, NET 108,116 114,736 ASSETS HELD FOR SALE -- 17,449 TOTAL ASSETS $2,515,283 $2,445,587 LIABILITIES AND STOCKHOLDERS' EQUITY: CURRENT LIABILITIES $ 322,702 $ 337,684 LIABILITIES OF DISCONTINUED OPERATIONS -- 1,269 LONG-TERM DEBT 787,467 790,202 OTHER LIABILITIES 143,394 142,704 DEFERRED INCOME TAXES 47,792 51,241 TOTAL LIABILITIES 1,301,355 1,323,100 MINORITY INTEREST IN CONSOLIDATED SUBSIDIARIES 313 418 STOCKHOLDERS' EQUITY 1,213,615 1,122,069 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $2,515,283 $2,445,587