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April 30, 2009 at 12:16 PM EDT

DENTSPLY International Inc. Reports 2009 First Quarter Results

YORK, Pa., April 30, 2009 (GLOBE NEWSWIRE) -- DENTSPLY International Inc. (Nasdaq:XRAY) today announced sales and earnings for the three months ended March 31, 2009. Net sales in the first quarter of 2009 decreased 9.6% to $506.9 million compared to $560.8 million reported for the first quarter of 2008. Net sales, excluding precious metal content, were $465.7 million, a 6.2% decrease compared to 2008. The change in net sales, excluding precious metal content, was driven by currency translation, which reduced sales by 6.9%, offset by 0.7% growth on a constant currency basis which includes acquisitions.

DENTSPLY's net income for the first quarter of 2009 was $61.7 million, or $0.41 per diluted share, compared to $0.45 per diluted share in the first quarter of 2008. Net income in the first quarter of 2009 included the net of tax impact of restructuring, impairment and other costs of $1.0 million, a $1.1 million net of tax impact for recent acquisition-related activities and a net charge for income tax-related adjustments of $0.3 million. These items, in aggregate, reduced earnings on a net basis by $0.02 per diluted share in the first quarter of 2009. The first quarter of 2008 included the net of tax impact of restructuring costs of $0.1 million and a net charge to income tax expense of $0.6 million, which in the aggregate, reduced earnings per diluted share by less than $0.01. For a reconciliation of the non-GAAP measure to earnings per share calculated according to GAAP, see the attached table.

Bret Wise, Chairman and Chief Executive Officer, stated, "We are pleased to be able to deliver what we believe are solid results in a slowing global economy and dental market. In this environment, we are striking a balance between cost containment and continuing investment in technologies and marketing that will position us for growth in coming years. We achieved sales growth, excluding precious metal content, on a constant currency basis in the first quarter and solid profitability, despite the significant headwind from the economy. Our global diversification, depth of product lines and the strength of our balance sheet provide a solid foundation to further build upon our market position throughout economic cycles. Given current global economic conditions, we are slightly modifying our full year 2009 earnings per diluted share guidance to $1.80 to $1.90 on a non-GAAP basis, excluding restructuring and other costs, recent acquisition-related activities and income tax-related adjustments."

ADDITIONAL INFORMATION

A conference call has been scheduled for Friday, May 1, 2009 at 8:30 AM Eastern Time. A live broadcast is available through Shareholder.com by accessing DENTSPLY's website at www.dentsply.com. In order to participate in the call, dial (877) 874-1568 (for domestic calls) and (719) 325-4812 (for international calls). The Conference ID # is 7529411. At that time, you will be able to discuss the first quarter earnings with DENTSPLY's Chairman and Chief Executive Officer, Mr. Bret Wise; President and Chief Operating Officer, Mr. Chris Clark; and Senior Vice President and Chief Financial Officer, Mr. William Jellison.

A rebroadcast of the conference call will be available to the public on-line at the DENTSPLY website www.dentsply.com. You may also access a dial-in replay for one week following the call at (888) 203-1112 (for domestic calls) or (719) 457-0820 (for international calls), Passcode # 7529411.

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 implants, impression materials, orthodontic appliances, dental cutting instruments, infection control products, and dental injectable anesthetics. 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.

The DENTSPLY International Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4306

This press release contains forward-looking information (within the meaning of the Private Securities Litigation Reform Act of 1995) regarding future events or the future financial performance of the Company that involve substantial risks and uncertainties. Actual events or results may differ materially from those in the projections or other forward-looking information 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, uncertainty with respect to governmental actions with respect to dental products, outcome of litigation, continued support of our products by influential dental professionals, and changes in the general economic environment that could affect our business. Changes in such assumptions or factors could produce significantly different results. For an additional description of risk factors, please refer to the Company's Annual Report on Form 10-K and its subsequent periodic reports on Forms 10-Q filed with the Securities and Exchange Commission.

NON-GAAP FINANCIAL MEASURES

In addition to the results reported in accordance with accounting principles generally accepted in the United States ("GAAP"), the Company provided adjusted operating income, adjusted net income and adjusted earnings per diluted share. These adjusted amounts consist of GAAP amounts excluding (1) restructuring and other costs, (2) acquisition-related charges and (3) income tax-related adjustments. Adjusted earnings per diluted share is calculated by dividing adjusted net income by diluted weighted-average shares outstanding. The Company also provided an operational tax rate, which is the Company's effective tax rate, a GAAP measure, adjusted for certain one-time charges. Adjusted operating income, adjusted net income, adjusted earnings per diluted share and operating tax rate are considered measures not calculated in accordance with GAAP, and therefore are non-GAAP measures. These non-GAAP measures may differ from other companies.

The Company believes that the presentation of adjusted operating income, adjusted net income, adjusted earnings per diluted share and operating tax rate provides important supplemental information to management and investors seeking to understand the Company's financial condition and results of operations. The non-GAAP financial information should not be considered in isolation from, or as a substitute for, measures of financial performance prepared in accordance with GAAP.

                     DENTSPLY INTERNATIONAL INC.
                  CONSOLIDATED STATEMENTS OF INCOME
                 (IN THOUSANDS EXCEPT PER SHARE DATA)

                                                    THREE MONTHS ENDED
                                                         MARCH 31,
                                                    ------------------

                                                      2009      2008
                                                    --------  --------

 NET SALES                                          $506,949  $560,782
 NET SALES - Ex Precious Metal Content               465,650   496,248

 COST OF PRODUCTS SOLD                               239,980   275,539
                                                    --------  --------

 GROSS PROFIT                                        266,969   285,243
  % OF NET SALES                                        52.7%     50.9%
  % OF NET SALES - Ex Precious Metal Content            57.3%     57.5%

 SELLING, GENERAL &
 ADMINISTRATIVE EXPENSES                             179,228   184,002

 RESTRUCTURING, IMPAIRMENT AND OTHER COSTS             1,570       204
                                                    --------  --------

 INCOME FROM OPERATIONS                               86,171   101,037
  % OF NET SALES                                        17.0%     18.0%
  % OF NET SALES - Ex Precious Metal Content            18.5%     20.4%

 NET INTEREST AND OTHER NON OPERATING EXPENSE          5,110     6,164
                                                    --------  --------


 PRE-TAX INCOME                                       81,061    94,873

 INCOME TAXES                                         21,131    26,718
                                                    --------  --------

 NET INCOME                                         $ 59,930  $ 68,155
  % OF NET SALES                                        11.8%     12.2%
  % OF NET SALES - Ex Precious Metal Content            12.9%     13.7%

 LESS: NET INCOME (LOSS) ATTRIBUTABLE
   TO THE NON-CONTROLLING INTERESTS                   (1,813)      (25)
                                                    --------  --------

                                                    --------  --------
 NET INCOME ATTRIBUTABLE TO DENTSPLY INTERNATIONAL  $ 61,743  $ 68,180
                                                    ========  ========
  % OF NET SALES                                        12.2%     12.2%
  % OF NET SALES - Ex Precious Metal Content            13.3%     13.7%

 EARNINGS PER SHARE
  -BASIC                                            $   0.42  $   0.45
  -DILUTIVE                                         $   0.41  $   0.45

 DIVIDENDS PER SHARE                                $  0.050  $  0.045

 WEIGHTED AVERAGE NUMBER OF COMMON SHARES
  OUTSTANDING
  -BASIC                                             148,514   149,945
  -DILUTIVE                                          149,705   152,983



                  DENTSPLY INTERNATIONAL INC.
                    CONDENSED BALANCE SHEETS
                         (IN THOUSANDS)


                                               MARCH 31,  DECEMBER 31,
                                                 2009         2008
                                             -----------  -----------
 ASSETS

 CURRENT ASSETS:

   CASH AND CASH EQUIVALENTS                 $   226,299  $   203,991
   SHORT TERM INVESTMENTS                            187          258
   ACCOUNTS AND NOTES RECEIVABLE-TRADE, NET      327,514      319,260
   INVENTORIES, NET                              314,089      306,125
   OTHER CURRENT ASSETS                          116,800      120,228
                                             -----------  -----------
      TOTAL CURRENT ASSETS                       984,889      949,862

 PROPERTY, PLANT AND EQUIPMENT, NET              416,393      432,276
 IDENTIFIABLE INTANGIBLE ASSETS, NET             124,958      103,718
 GOODWILL, NET                                 1,206,008    1,277,026
 OTHER NONCURRENT ASSETS, NET                     28,541       67,518
                                             -----------  -----------

 TOTAL ASSETS                                $ 2,760,789  $ 2,830,400
                                             ===========  ===========



 LIABILITIES AND STOCKHOLDERS' EQUITY:

 CURRENT LIABILITIES                         $   343,707  $   359,962
 LONG-TERM DEBT                                  460,842      423,679
 DEFERRED INCOME TAXES                            59,031       69,049
 OTHER LIABILITIES                               217,612      318,297
                                             -----------  -----------
     TOTAL LIABILITIES                         1,081,192    1,170,987

 STOCKHOLDERS' EQUITY                          1,614,146    1,587,722
 NON-CONTROLLING INTERESTS                        65,451       71,691
                                             -----------  -----------

 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY  $ 2,760,789  $ 2,830,400
                                             ===========  ===========


                       DENTSPLY INTERNATIONAL INC.
                  (IN THOUSANDS EXCEPT PER SHARE DATA)

 Operating Income Summary:

 The following tables present the reconciliation of reported
 GAAP operating income in total and on a percentage of net sales,
 excluding precious metal content basis to the non-GAAP financial
 measures.

 Three Months Ended March 31, 2009                        Percentage
                                                         of Net Sales,
                                         Operating        Ex Precious
                                       Income (Expense)  Metal Content
                                       ---------------  --------------
 Income from Operations                     $ 86,171            18.5%

 Restructuring, Impairment and
  Other Costs                                  1,570             0.3%

 Recent Acquisition-Related Activities         2,604             0.6%
                                       ---------------  --------------
 Adjusted Non-GAAP Operating Earnings       $ 90,345            19.4%
                                       ===============  ==============


 Three Months Ended March 31, 2008                        Percentage
                                                         of Net Sales,
                                         Operating        Ex Precious
                                       Income (Expense)  Metal Content
                                       ---------------  --------------
 Income from Operations                     $101,037            20.4%

 Restructuring, Impairment
  and Other Costs                                204             0.0%
                                       ---------------  --------------
 Adjusted Non-GAAP Operating Earnings       $101,241            20.4%
                                       ===============  ==============


                     DENTSPLY INTERNATIONAL INC.
                 (IN THOUSANDS EXCEPT PER SHARE DATA)

 Earnings Summary:

 The following tables present the reconciliation of reported GAAP net
 income in total and on a per share basis to the non-GAAP financial
 measures.

 Three Months Ended March 31, 2009
                                                   Income     Diluted
                                                  (Expense)  Per Share
                                                  ---------  ---------

 Net Income Attributable to DENTSPLY
  International                                   $  61,743  $    0.41

 Restructuring, Impairment and Other Costs, Net
  of Tax and Non-Controlling Interests                  996       0.01

 Recent Acquisition-Related Activities, Net of
  Tax and Non-Controlling Interests                   1,119       0.01

 Income Tax-Related Adjustments                         282       0.00
                                                  ---------  ---------

 Adjusted Non-GAAP Earnings                       $  64,140  $    0.43
                                                  =========  =========


 Three Months Ended March 31, 2008
                                                   Income     Diluted
                                                  (Expense)  Per Share
                                                  ---------  ---------

 Net Income Attributable to DENTSPLY
  International                                   $  68,180  $    0.45

 Restructuring, Impairment and Other Costs, Net
  of Tax and Non-Controlling Interests                  129       0.00

 Income Tax-Related Adjustments                         637       0.00
                                                  ---------  ---------

 Adjusted Non-GAAP Earnings                       $  68,946  $    0.45
                                                  =========  =========


                     DENTSPLY INTERNATIONAL INC.
                            (IN THOUSANDS)

 Operating Tax Rate Summary:

 The following tables present the reconciliation of reported GAAP
 effective tax rate as a percentage of pre-tax income to the non-GAAP
 financial measure.

 Three Months Ended March 31, 2009
                                                            Percentage
                                     Pre-tax      Income    of Pre-tax
                                      Income      Taxes       Income
                                    ----------  ----------  ----------

 As Reported - GAAP Operating
  Results                           $  81,061   $ (21,131)       26.1%

 Restructuring, Impairment and
  Other Costs                           1,570        (574)

 Recent Acquisition-Related
  Activities                            2,604        (739)

 Income Tax-Related Adjustments                       282
                                    ----------  ----------  ----------

 As Adjusted - Non-GAAP Operating
  Results                           $  85,235   $ (22,162)       26.0%


 Three Months Ended March 31, 2008
                                                            Percentage
                                     Pre-tax      Income    of Pre-tax
                                      Income      Taxes       Income
                                    ----------  ----------  ----------

 As Reported - GAAP Operating
  Results                           $  94,873   $ (26,718)       28.2%

 Restructuring, Impairment and
  Other Costs                             204         (75)

 Income Tax-Related Adjustments                       637
                                    ----------  ----------  ----------

 As Adjusted - Non-GAAP Operating
  Results                           $  95,077   $ (26,156)       27.5%
CONTACT:  DENTSPLY International Inc.
          William R. Jellison, Senior Vice President and Chief 
           Financial Officer
          (717) 849-4243
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