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 Second Quarter 2004 Sales and Earnings York, PA - July 26, 2004 -- DENTSPLY International Inc. (NASDAQ-XRAY) today announced record sales and earnings for the quarter ended June 30, 2004. Net sales increased 7.8% to $425.3 million compared to $394.5 million reported for the second quarter of 2003. Net sales, excluding precious metal content, increased 7.3% in the second quarter of 2004. Net income for the second quarter of 2004 was $49.0 million, or $.60 per diluted share. Income from continuing operations was $49.2 million ($.60 per diluted share) in the 2004 quarter compared to $43.5 million ($.54 per diluted share) in the 2003 second quarter, a 11.1% increase in diluted earnings per share from continuing operations. For the six months ended June 30, 2004, net sales increased 9.8% and sales excluding precious metal content increased 10.2%. Earnings from continuing operations were $1.16 per diluted share in the first six months of 2004, a 14.9% increase compared to the 2003 period. Gary K. Kunkle, Vice Chairman and Chief Executive Officer commented that, "We are pleased to report record sales and earnings for the second quarter of 2004. We are also encouraged by an improvement in sales growth in the United States and Asia in the second quarter. At the midpoint in the year, we are on track to meet our revenue growth targets for the year and expect to meet or exceed the earnings targets established at the beginning of the year." Mr. Kunkle also said, "This quarter we made substantial progress toward the completion of and preparation for the start-up of our new anesthetic filling plant in Chicago. We expect to commence commercial production at this facility in the fourth quarter of 2004. In addition, we have a full pipeline of new product introductions scheduled for the second half of 2004, including the launch of our new non-injectible anesthetic Oraqix(TM). These actions will position us well for continued growth in 2005." DENTSPLY Conference Call Information DENTSPLY will hold a conference call on Tuesday, July 27, 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.: 8763464. 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 SIX MONTHS ENDED JUNE 30, JUNE 30, ----------------------------- ------------------------------ 2004 2003 2004 2003 ------------- ------------- -------------- -------------- NET SALES $ 425,325 $ 394,478 $ 840,706 $ 765,714 NET SALES - Ex Precious Metals 373,787 348,198 732,791 665,084 COST OF PRODUCTS SOLD 212,424 196,403 422,948 384,877 GROSS PROFIT 212,901 198,075 417,758 380,837 % OF NET SALES 50.1% 50.2% 49.7% 49.7% % OF NET SALES - Ex Precious Metals 57.0% 56.9% 57.0% 57.3% SELLING, GENERAL & ADMINISTRATIVE EXPENSES 135,003 128,235 269,030 250,473 RESTRUCTURING COSTS 333 - 1,057 - ------------- ------------- -------------- -------------- INCOME FROM OPERATIONS 77,565 69,840 147,671 130,364 % OF NET SALES 18.2% 17.7% 17.6% 17.0% % OF NET SALES - Ex Precious Metals 20.8% 20.1% 20.2% 19.6% NET INTEREST AND OTHER EXPENSE 5,214 5,529 10,710 10,847 ------------- ------------- -------------- -------------- PRE-TAX INCOME 72,351 64,311 136,961 119,517 INCOME TAXES 23,129 20,861 41,971 38,628 ------------- ------------- -------------- -------------- INCOME FROM CONTINUING OPERATIONS 49,222 43,450 94,990 80,889 % OF NET SALES 11.6% 11.0% 11.3% 10.6% % OF NET SALES - Ex Precious Metals 13.2% 12.5% 13.0% 12.2% INCOME (LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAX (INCLUDING GAIN ON SALE IN 2004 OF $43,031) (179) 768 42,885 1,596 ------------- ------------- -------------- -------------- NET INCOME $ 49,043 $ 44,218 $ 137,875 $ 82,485 ============= ============= ============== ============== EARNINGS PER SHARE - BASIC: CONTINUING OPERATIONS $ 0.61 $ 0.55 $ 1.18 $ 1.03 DISCONTINUED OPERATIONS - 0.01 0.54 0.02 ------------- ------------- -------------- -------------- TOTAL EARNINGS PER SHARE $ 0.61 $ 0.56 $ 1.72 $ 1.05 ============= ============= ============== ============== EARNINGS PER SHARE - DILUTIVE: CONTINUING OPERATIONS $ 0.60 $ 0.54 $ 1.16 $ 1.01 DISCONTINUED OPERATIONS - 0.01 0.53 0.02 ------------- ------------- -------------- -------------- TOTAL EARNINGS PER SHARE $ 0.60 $ 0.55 $ 1.69 $ 1.03 ============= ============= ============== ============== DIVIDENDS PER SHARE $ 0.0525 $ 0.0460 $ 0.1050 $ 0.0920 WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING -BASIC 80,493 78,688 80,208 78,566 -DILUTIVE 82,089 80,327 81,796 80,168
DENTSPLY INTERNATIONAL INC. CONDENSED BALANCE SHEETS (IN THOUSANDS)
JUNE 30, DECEMBER 31, 2004 2003 --------- ----------- ASSETS CURRENT ASSETS: CASH AND CASH EQUIVALENTS $ 344,401 $ 163,755 ACCOUNTS AND NOTES RECEIVABLE-TRADE, NET 245,439 241,385 INVENTORIES, NET 203,179 205,587 OTHER CURRENT ASSETS 89,576 88,463 ASSETS HELD FOR SALE -- 28,262 TOTAL CURRENT ASSETS 882,595 727,452 PROPERTY,PLANT AND EQUIPMENT, NET 376,225 376,211 GOODWILL, NET 947,047 963,264 IDENTIFIABLE INTANGIBLES ASSETS, NET 239,692 246,475 OTHER NONCURRENT ASSETS, NET 89,641 114,736 ASSETS HELD FOR SALE -- 17,449 TOTAL ASSETS $2,535,200 $2,445,587 LIABILITIES AND STOCKHOLDERS' EQUITY: CURRENT LIABILITIES $ 304,960 $ 327,752 LIABILITIES OF DISCONTINUED OPERATIONS -- 1,269 LONG-TERM DEBT 771,345 790,202 OTHER LIABILITIES 134,943 137,016 DEFERRED INCOME TAXES 67,184 66,861 ---------- ---------- TOTAL LIABILITIES 1,278,432 1,323,100 MINORITY INTEREST IN CONSOLIDATED SUBSIDIARIES 181 418 STOCKHOLDERS' EQUITY 1,256,587 1,122,069 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $2,535,200 $2,445,587