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July 29, 2009 at 11:38 AM EDT

DENTSPLY International Inc. Reports Second Quarter 2009 Sales and Earnings

YORK, Pa., July 29, 2009 (GLOBE NEWSWIRE) -- DENTSPLY International Inc. (Nasdaq:XRAY) today announced sales and earnings for the three months ended June 30, 2009. Net sales in the second quarter of 2009 decreased 7.0% to $553.2 million compared to $594.8 million reported for the second quarter of 2008. Net sales, without precious metal content, decreased 5.6% to $511.9 million in the second quarter of 2009. The change in net sales, excluding precious metal content, was driven by currency translation, which reduced sales by 6.1%, offset by 0.5% growth on a constant currency basis which includes acquisitions.

Net income for the second quarter of 2009 was $ 70.2 million, or $0.47 per diluted share, compared to $0.52 per diluted share in the second quarter of 2008. Net income in the second quarter of 2009 included the net of tax impact of restructuring and other costs of $2.2 million, a net of tax impact for recent acquisition-related activities of $0.5 million and a net charge for income tax-related adjustments of $0.2 million, which in aggregate reduced earnings per share on a net basis by less than $.02 per diluted share. The second quarter of 2008 included a net of tax interest benefit resulting from the provisions of SFAS 157 "Fair Value Measurements" of $1.1 million, the net of tax impact of restructuring and other costs of $0.9 million, and a net charge for income tax-related adjustments of $1.0 million, which in aggregate reduced earnings per share on a net basis by less than $.01 per diluted share. For a reconciliation of GAAP and non-GAAP measures, see the attached table.

Bret Wise, Chairman and Chief Executive Officer, stated "We are pleased to have once again delivered constant currency sales growth, excluding precious metals content. Despite a difficult economic environment, our businesses continue to execute well and our earnings and cash flow are solid. This affirms the resilience of the global dental market and the strength of our business model. While uncertainty continues to surround the global economy, based on our results to date and current outlook, we are confirming our full year earnings per diluted share guidance of $1.80 to $1.90, on a non-GAAP basis."

ADDITIONAL INFORMATION

A conference call has been scheduled for Thursday, July 30, 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) 397-0235 (for domestic calls) and (719) 325-4854 (for international calls). The Conference ID # is 7450415. At that time, you will be able to discuss the second 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 # 7450415.

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 are 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       SIX MONTHS ENDED
                              JUNE 30,                JUNE 30,
                       ----------------------  ----------------------
                          2009        2008       2009         2008
                       ----------  ----------  ----------  ----------

 NET SALES             $  553,216  $  594,847  $1,060,165  $1,155,629
 NET SALES -
  Ex Precious
  Metal Content           511,911     542,273     977,561   1,038,521

 COST OF PRODUCTS SOLD    266,245     279,361     506,225     554,900
                       ----------  ----------  ----------  ----------

 GROSS PROFIT             286,971     315,486     553,940     600,729
  % OF NET SALES             51.9%       53.0%       52.3%       52.0%
  % OF NET SALES -
   Ex Precious
   Metal Content             56.1%       58.2%       56.7%       57.8%

 SELLING, GENERAL
  & ADMINISTRATIVE
  EXPENSES                185,138     200,867     364,366     384,869

 RESTRUCTURING,
  IMPAIRMENT AND
  OTHER COSTS               3,125       1,458       4,695       1,662
                       ----------  ----------  ----------  ----------

 INCOME FROM OPERATIONS    98,708     113,161     184,879     214,198
  % OF NET SALES             17.8%       19.0%       17.4%       18.5%
  % OF NET SALES -
   Ex Precious
   Metal Content             19.3%       20.9%       18.9%       20.6%

 NET INTEREST AND OTHER
  NON OPERATING EXPENSE     3,688       3,165       8,799       9,329
                       ----------  ----------  ----------  ----------


 PRE-TAX INCOME            95,020     109,996     176,080     204,869

 INCOME TAXES              24,440      31,297      45,571      58,015
                       ----------  ----------  ----------  ----------

 NET INCOME            $   70,580  $   78,699  $  130,509  $  146,854
  % OF NET SALES             12.8%       13.2%       12.3%       12.7%
  % OF NET SALES -
   Ex Precious
   Metal Content             13.8%       14.5%       13.4%       14.1%

 LESS: NET INCOME (LOSS)
  ATTRIBUTABLE TO THE
  NON-CONTROLLING
  INTERESTS                   381          51      (1,433)         26
                       ----------  ----------  ----------  ----------

 NET INCOME
  ATTRIBUTABLE
  TO DENTSPLY
  INTERNATIONAL        $   70,199  $   78,648  $  131,942  $  146,828
                       ==========  ==========  ==========  ==========
  % OF NET SALES             12.7%       13.2%       12.4%       12.7%
  % OF NET SALES -
   Ex Precious
   Metal Content             13.7%       14.5%       13.5%       14.1%

 EARNINGS PER SHARE
    -BASIC             $     0.47  $     0.53  $     0.89  $     0.98
    -DILUTIVE          $     0.47  $     0.52  $     0.88  $     0.96

 DIVIDENDS PER SHARE   $    0.050  $    0.045  $    0.100  $    0.090

 WEIGHTED AVERAGE
  NUMBER OF COMMON
  SHARES OUTSTANDING
    -BASIC                148,577     148,851     148,546     149,394
    -DILUTIVE             150,057     151,790     149,822     152,371


                      DENTSPLY INTERNATIONAL INC.
                       CONDENSED BALANCE SHEETS
                            (IN THOUSANDS)

                                          JUNE 30,       DEC. 31,
                                            2009           2008
                                         ----------     ----------
 ASSETS

 CURRENT ASSETS:

   CASH AND CASH EQUIVALENTS             $  251,871     $  203,991
   SHORT TERM INVESTMENTS                        36            258
   ACCOUNTS AND NOTES
    RECEIVABLE-TRADE, NET                   357,546        319,260
   INVENTORIES, NET                         309,431        306,125
   OTHER CURRENT ASSETS                     113,621        120,228
                                         ----------     ----------
     TOTAL CURRENT ASSETS                 1,032,505        949,862

 PROPERTY, PLANT AND EQUIPMENT, NET         429,935        432,276
 IDENTIFIABLE INTANGIBLE ASSETS, NET        122,696        103,718
 GOODWILL, NET                            1,267,898      1,277,026
 OTHER NONCURRENT ASSETS, NET                45,445         67,518
                                                        ----------

 TOTAL ASSETS                            $2,898,479     $2,830,400
                                         ==========     ==========

 LIABILITIES AND STOCKHOLDERS' EQUITY:

 CURRENT LIABILITIES                     $  590,493     $  359,962
 LONG-TERM DEBT                             145,949        423,679
 DEFERRED INCOME TAXES                       70,508         69,049
 OTHER LIABILITIES                          287,407        318,297
                                         ----------     ----------
    TOTAL LIABILITIES                     1,094,357      1,170,987

 STOCKHOLDERS' EQUITY                     1,732,618      1,587,722
 NON-CONTROLLING INTERESTS                   71,504         71,691
                                         ----------     ----------

 TOTAL LIABILITIES AND
  STOCKHOLDERS' EQUITY                   $2,898,479     $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 June 30, 2009
                                                        Percentage
                                                          of Net
                                                          Sales,
                                                            Ex
                                          Operating      Precious
                                           Income         Metal
                                          (Expense)      Content
                                          --------       --------

 Income from Operations                   $ 98,708           19.3%

 Restructuring, Impairment and
  Other Costs                                3,125            0.6%

 Recent Acquisition-Related Activities       1,173            0.2%
                                          --------       --------

 Adjusted Non-GAAP Operating Earnings     $103,006           20.1%
                                          ========       ========


 Three Months Ended June 30, 2008
                                                        Percentage
                                                          of Net
                                                          Sales,
                                                            Ex
                                          Operating      Precious
                                           Income         Metal
                                          (Expense)      Content
                                          --------       --------

 Income from Operations                   $113,161           20.9%

 Restructuring, Impairment and
  Other Costs                                1,458            0.2%
                                          --------       --------

 Adjusted Non-GAAP Operating Earnings     $114,619           21.1%
                                          ========       ========


                      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 June 30, 2009
                                           Income         Diluted
                                         (Expense)       Per Share
                                          --------       --------
 Net Income Attributable to DENTSPLY
  International                           $ 70,199       $   0.47

 Restructuring, Impairment and Other
  Costs, Net of Tax and Non-Controlling
  Interests                                  2,185           0.01

 Recent Acquisition-Related Activities,
  Net of Tax and Non-Controlling
  Interests                                    519           0.00

 Income Tax-Related Adjustments                212           0.00

 Rounding                                       --           0.01
                                          --------       --------

 Adjusted Non-GAAP Earnings               $ 73,115       $   0.49
                                          ========       ========



 Three Months Ended June 30, 2008
                                          Income         Diluted
                                         (Expense)      Per Share
                                          --------       --------

 Net Income Attributable to
  DENTSPLY International                  $ 78,648       $   0.52

 Non-performance risk adjustments
  on derivatives                            (1,129)         (0.01)

 Restructuring and Other Costs,
  Net of Tax                                   905           0.00

 Income Tax-Related Adjustments              1,018           0.01

 Adjusted Non-GAAP Earnings               $ 79,442       $   0.52
                                          ========       ========


                     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.

 Six Months Ended June, 2009
                                                       Percentage
                                                          of Net
                                                          Sales,
                                                            Ex
                                          Operating      Precious
                                           Income          Metal
                                          (Expense)       Content
                                          --------       --------

 Income from Operations                   $184,879           18.9%

 Restructuring, Impairment and
  Other Costs                                4,695            0.5%

 Recent Acquisition-Related Activities       3,777            0.4%
                                          --------       --------

 Adjusted Non-GAAP Operating Earnings     $193,351           19.8%
                                          ========       ========

 Six Months Ended June 30, 2008
                                                        Percentage
                                                          of Net
                                                          Sales,
                                                            Ex
                                          Operating      Precious
                                           Income          Metal
                                          (Expense)       Content
                                          --------       --------

 Income from Operations                   $214,198           20.6%

 Restructuring, Impairment and
  Other Costs                                1,662            0.2%
                                          --------       --------

 Adjusted Non-GAAP Operating Earnings     $215,860           20.8%
                                          ========       ========


                         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.

 Six Months Ended June 30, 2009
                                                  Income       Diluted
                                                 (Expense)    Per Share
                                                 ----------  ----------
 Net Income Attributable to DENTSPLY
  International                                  $ 131,942   $    0.88

 Restructuring, Impairment and Other Costs,
  Net of Tax and Non-Controlling Interests           3,181        0.02

 Recent Acquisition-Related Activities, Net of
  Tax and Non-Controlling Interests                  1,638        0.01

 Income Tax-Related Adjustments                        495        0.00

 Rounding                                               --        0.01
                                                 ----------  ----------

 Adjusted Non-GAAP Earnings                      $ 137,256   $    0.92
                                                 ==========  ==========


 Six Months Ended June 30, 2008

                                                  Income       Diluted
                                                 (Expense)    Per Share
                                                 ----------  ----------
 Net Income Attributable to DENTSPLY
  International                                  $ 146,828    $   0.96
                                                 
 Non-performance risk adjustments on             
  derivatives                                       (1,129)      (0.01)
                                                 
 Restructuring, Impairment and Other Costs,      
  Net of Tax and Non-Controlling Interests           1,034        0.01
                                                 
 Income Tax-Related Adjustments                      1,655        0.01
                                                 ----------  ----------
                                                 
 Adjusted Non-GAAP Earnings                      $ 148,388   $    0.97
                                                 ==========  ==========
                                                

                    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 June 30, 2009
                                                          Percentage
                                 Pre-tax       Income     of Pre-tax
                                 Income         Taxes       Income
                                ----------   ----------   ----------

 As Reported - GAAP Operating
  Results                       $  95,020    $ (24,440)        25.7%

 Restructuring, Impairment and
  Other Costs                       3,125         (940)

 Recent Acquisition-Related
  Activities                        1,173         (308)

 Income Tax-Related 
  Adjustments                                      212
                                ----------   ----------   ----------

 As Adjusted - Non-GAAP
  Operating Results             $  99,318    $ (25,476)        25.7%



 Three Months Ended June 30, 2008
                                                          Percentage
                                  Pre-tax      Income     of Pre-tax
                                  Income       Taxes       Income
                                ----------   ----------   ----------

 As Reported - GAAP Operating
  Results                       $ 109,996    $ (31,297)        28.5%

 Non-performance risk
  adjustments on derivatives       (1,839)         710

 Restructuring, Impairment and
  Other Costs                       1,458         (553)

 Income Tax-Related
  Adjustments                                    1,018
                                ----------   ----------   ----------

 As Adjusted - Non-GAAP
  Operating Results             $ 109,615    $ (30,122)        27.5%



                     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

 Six Months Ended June 30, 2009
                                                          Percentage
                                 Pre-tax      Income      of Pre-tax
                                  Income       Taxes        Income
                                ----------   ----------   ----------

 As Reported - GAAP Operating
  Results                       $ 176,080    $ (45,571)        25.9%

 Restructuring, Impairment and
  Other Costs                       4,695       (1,514)

 Recent Acquisition-Related
  Activities                        3,777       (1,047)

 Income Tax-Related 
  Adjustments                                      495
                                ----------   ----------   ----------

 As Adjusted - Non-GAAP
  Operating Results             $ 184,552    $ (47,637)        25.8%


 Six Months Ended June 30, 2008
                                                          Percentage
                                  Pre-tax     Income      of Pre-tax
                                  Income       Taxes        Income
                                ----------   ----------   ----------
 As Reported - GAAP Operating
  Results                       $ 204,869    $ (58,015)        28.3%

 Non-performance risk
  adjustments on derivatives       (1,839)         710

 Restructuring, Impairment and
  Other Costs                       1,662         (628)

 Income Tax-Related 
  Adjustments                                    1,655
                                ----------   ----------   ----------

 As Adjusted - Non-GAAP
  Operating Results             $ 204,692    $ (56,278)        27.5%

 
CONTACT:  DENTSPLY International Inc.
          William R. Jellison, Senior Vice President and 
           Chief Financial Officer
          (717) 849-4243
}