Dentsply Sirona Reports Solid First Quarter 2019 Results

5/3/19

YORK, Pa., May 03, 2019 (GLOBE NEWSWIRE) -- DENTSPLY SIRONA Inc. (Nasdaq: XRAY), the Dental Solutions Company, today announced its financial results for the three months ended March 31, 2019.

First Quarter 2019 Financial Results

Reported net sales of $946.2 million declined 1.0% in the first quarter of 2019 and were up 3.9% on an internal sales growth basis. In the United States, revenues increased by 7.4% and were up 6.4% on an internal basis. Rest of World revenues declined 0.8% on a reported basis but increased 8.1% on an internal sales growth basis. European revenues declined 7.0% with foreign exchange accounting for 6.7% of the European revenue decline. On an internal sales growth basis, European revenues declined by 0.1%.

Net income attributable to Dentsply Sirona for the first quarter of 2019 was $39.2 million, or $0.17 per diluted share, compared $81.2 million, or $0.35 per diluted share in the first quarter of 2018. On an adjusted basis, excluding certain items, non-US GAAP net earnings per diluted share were $0.49 compared to $0.45 in the first quarter of 2018. A reconciliation of the non-US GAAP measures to earnings per share calculated on a US GAAP basis is provided in the attached tables.

Don Casey, Chief Executive Officer, commented: "Dentsply Sirona delivered solid financial results in the first quarter of 2019, with internal sales growth of 3.9% and a one hundred ten basis point year-over-year improvement in our adjusted operating income margin. This translated into Adjusted EPS of $0.49, an increase of 9% as compared to the prior year period. The highlight of the quarter was our strong performance at the biannual International Dental Show in Cologne, where we introduced a variety of new products and received an excellent reception to our innovative, Primescan dental CAD CAM digital impression system. Our first quarter results clearly demonstrate that Dentsply Sirona is beginning to benefit from the comprehensive restructuring program that we put in place in November 2018 and we are confident that the program will continue to drive significant value for our shareholders as we move forward."

2019 Guidance [2]

The Company narrowed the range for 2019 Adjusted Earnings Per Share guidance, and now expects to achieve Adjusted EPS in the range of $2.30 to $2.40, as compared to the previous guidance range of $2.25 to $2.40. The 2019 guidance incorporates the following assumptions:

  • Portfolio shaping initiatives that have already been executed reduce 2019 revenues by approximately $70 million.
  • At current exchange rates, currency is anticipated to be a 2.7% headwind to 2019 revenues, reducing 2019 reported revenues by approximately $110 million.
  • Internal sales growth of 4% to 5%. 2019 internal revenues benefit from absence of dealer destocking and 2019 new product introductions.
  • Reported revenues of $3.95 to $4.05 billion.
  • Operating expenses below 2018 levels.
  • Non-US GAAP effective tax rate of 24%.

[1] Non-US GAAP adjusted EPS, net sales excluding precious metal, constant currency growth and internal growth and results are non-US GAAP financial measures that exclude certain items. Please refer to the disclosure at the end of the release. For a reconciliation of constant currency growth to internal revenue growth please see supplemental tables at the end of the release.

[2] Our guidance is presented on a non-US GAAP basis, as it does not include the impact of prospective acquisitions, acquisitions announced but not yet closed and other non-US GAAP items, including restructuring costs, many of which are difficult to predict. Therefore, we cannot provide a full reconciliation of these measures. The Company is unable at this time to address the probable significance of all of the unavailable information.

About Dentsply Sirona

Dentsply Sirona is the world’s largest manufacturer of professional dental products and technologies, with a 132-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. Dentsply Sirona’s worldwide headquarters is located in York, Pennsylvania. 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.