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October 28, 2009 at 12:08 PM EDT

DENTSPLY International Reports Third Quarter 2009 Sales and Earnings

YORK, Pa., Oct. 28, 2009 (GLOBE NEWSWIRE) -- DENTSPLY International Inc. (Nasdaq:XRAY) today announced sales and earnings for the three months ended September 30, 2009. Net sales in the third quarter of 2009 increased 0.2% to $531.0 million compared to $530.0 million reported for the third quarter of 2008. Net sales, without precious metal content, increased 1.1% to $493.6 million in the third quarter of 2009. The change in net sales, excluding precious metal content, was driven by an increase of 2.5% in constant currency including acquisitions, partially offset by currency translation, which reduced sales by 1.4% in the period.

Net income for the third quarter of 2009 was $67.5 million, or $0.45 per diluted share, compared to $0.44 per diluted share in the third quarter of 2008. Net income in the third quarter of 2009 included the net of tax impact of restructuring and other costs of $0.8 million, a net of tax impact for recent acquisition-related activities of $0.1 million and a net benefit for income tax-related adjustments of $2.6 million, which in aggregate increased earnings per share on a net basis by $0.01 per diluted share. The third quarter of 2008 included an $11.4 million net of tax charge for restructuring and other costs, and a net benefit for income tax-related adjustments of $8.2 million, which combined, reduced earnings per share on a net basis by $0.02 per diluted share. For a reconciliation of GAAP and non-GAAP measures, see the attached table.

"We are pleased to report solid sales and earnings performance for the quarter, as well as excellent cash flow generation, despite the continuing macroeconomic challenges impacting the global dental market," said Bret W. Wise, Chairman and CEO. "The global dental market appears to be in the early stages of a recovery, although it is likely to be gradual and vary across geographic regions and product categories. Given the current market conditions, we are tightening the range of our full year earnings guidance to $1.81 to $1.86 per diluted share, measured on a non-GAAP basis."

ADDITIONAL INFORMATION

A conference call has been scheduled for Thursday, October 29, 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 (888) 811-5436 (for domestic calls) and (913) 312-1381 (for international calls). The Conference ID # is 9055234. At that time, you will be able to discuss the third 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 # 9055234.

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 OPERATIONS
                 (IN THOUSANDS EXCEPT PER SHARE DATA)

                          THREE MONTHS ENDED       NINE MONTHS ENDED
                             SEPTEMBER 30,           SEPTEMBER 30,
                         --------------------   ----------------------
                           2009        2008        2009        2008
                         ---------  ---------   ----------  ----------

 NET SALES               $ 531,032  $ 529,953   $1,591,197  $1,685,582
 NET SALES - Ex
  Precious Metal
  Content                  493,646    488,086    1,471,207   1,526,607

 COST OF PRODUCTS
  SOLD                     258,051    249,770      764,276     804,670
                         ---------  ---------   ----------  ---------- 

 GROSS PROFIT              272,981    280,183      826,921     880,912
  % OF NET SALES              51.4%      52.9%        52.0%       52.3%
  % OF NET SALES -
   Ex Precious Metal
   Content                    55.3%      57.4%        56.2%       57.7%

 SELLING, GENERAL &
  ADMINISTRATIVE
  EXPENSES                 178,841    180,729      543,207     565,599

 RESTRUCTURING,
  IMPAIRMENTS AND
  OTHER COSTS                1,210     18,539        5,905      20,202
                         ---------  ---------   ----------  ----------

 INCOME FROM
  OPERATIONS                92,930     80,915      277,809     295,111
  % OF NET SALES              17.5%      15.3%        17.5%       17.5%
  % OF NET SALES -
   Ex Precious Metal
   Content                    18.8%      16.6%        18.9%       19.3%

 NET INTEREST AND
  OTHER NON
  OPERATING EXPENSE          5,078      5,645       13,877      14,973
                         ---------  ---------   ----------  ----------


 PRE-TAX INCOME             87,852     75,270      263,932     280,138

 INCOME TAXES               19,999      9,204       65,570      67,219
                         ---------  ---------   ----------  ----------

 NET INCOME              $  67,853   $ 66,066    $ 198,362  $  212,919
  % OF NET SALES             12.8%      12.5%        12.5%        12.6%
  % OF NET SALES -
   Ex Precious Metal
   Content                    13.7%      13.5%        13.5%       13.9%

 LESS: NET INCOME
  (LOSS) ATTRIBUTABLE
   TO THE
   NON-CONTROLLING
   INTERESTS                   370         19       (1,062)         45
                         ---------  ---------   ----------  ----------

 NET INCOME
  ATTRIBUTABLE TO
  DENTSPLY
  INTERNATIONAL          $  67,483  $  66,047   $  199,424  $  212,874
                         =========  =========   ==========  ==========
  % OF NET SALES              12.7%      12.5%        12.5%       12.6%
  % OF NET SALES -
   Ex Precious Metal
   Content                    13.7%      13.5%        13.6%       13.9%

 EARNINGS PER SHARE
    -BASIC               $    0.45  $    0.44   $     1.34  $     1.43
    -DILUTIVE            $    0.45  $    0.44   $     1.33  $     1.40

 DIVIDENDS PER SHARE     $   0.050  $   0.045   $    0.150  $    0.135

 WEIGHTED AVERAGE
  NUMBER OF COMMON
  SHARES OUTSTANDING
    -BASIC                 148,547    148,775      148,546     149,186
    -DILUTIVE              150,638    151,697      150,077     152,137


                     DENTSPLY INTERNATIONAL INC.
                       CONDENSED BALANCE SHEETS
                            (IN THOUSANDS)


                                          SEPTEMBER 30,   DECEMBER 31,
                                              2009            2008
                                          ------------    ------------
 ASSETS

 CURRENT ASSETS:

  CASH AND CASH EQUIVALENTS               $    333,368    $    203,991
  SHORT TERM INVESTMENTS                            37             258
  ACCOUNTS AND NOTES RECEIVABLE-
   TRADE, NET                                  356,976         319,260
  INVENTORIES, NET                             311,666         306,125
  OTHER CURRENT ASSETS                         125,056         120,228
                                          ------------    ------------
   TOTAL CURRENT ASSETS                      1,127,103         949,862

 PROPERTY, PLANT AND EQUIPMENT, NET            445,365         432,276
 IDENTIFIABLE INTANGIBLE ASSETS, NET           119,344         103,718
 GOODWILL, NET                               1,308,824       1,277,026
 OTHER NONCURRENT ASSETS, NET                   66,473          67,518
                                          ------------    ------------

 TOTAL ASSETS                             $  3,067,109    $  2,830,400
                                          ============    ============


 LIABILITIES AND STOCKHOLDERS'
  EQUITY:

 CURRENT LIABILITIES                      $    603,652    $    359,962
 LONG-TERM DEBT                                154,842         423,679
 DEFERRED INCOME TAXES                          77,838          69,049
 OTHER LIABILITIES                             328,326         318,297
                                          ------------    ------------
   TOTAL LIABILITIES                         1,164,658       1,170,987

 STOCKHOLDERS' EQUITY                        1,827,255       1,587,722
 NON-CONTROLLING INTERESTS                      75,196          71,691
                                          ------------    ------------
 TOTAL LIABILITIES AND STOCKHOLDERS'
  EQUITY                                  $  3,067,109    $  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 September 30, 2009                    Percentage
                                            Operating    of Net Sales,
                                             Income       Ex Precious
                                            (Expense)    Metal Content
                                         -------------   -------------

  Income from Operations                 $      92,930            18.8%

  Restructuring, Impairments and
   Other Costs                                   1,210             0.3%

  Recent Acquisition-Related
   Activities                                      243             0.0%
                                         -------------   -------------

  Adjusted Non-GAAP Operating
   Earnings                              $      94,383            19.1%
                                         =============   =============



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

  Income from Operations                 $      80,915            16.6%

  Restructuring, Impairments and
   Other Costs                                  18,539             3.8%
                                         -------------   -------------

  Adjusted Non-GAAP Operating
   Earnings                              $      99,454            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 September 30, 2009

                                              Income         Diluted
                                             (Expense)      Per Share
                                            -----------    -----------

 Net Income Attributable to DENTSPLY
  International                             $    67,483    $      0.45

 Restructuring, Impairment and Other
   Costs, Net of Tax and
   Non-Controlling Interests                        843           0.01

 Recent Acquisition-Related Activities,
  Net of Tax and Non-Controlling
  Interests                                         131           0.00

 Income Tax-Related Adjustments                  (2,570)         (0.02)
                                            -----------    -----------

 Adjusted Non-GAAP Earnings                 $    65,887    $      0.44
                                            ===========    ===========



 Three Months Ended September 30, 2008

                                              Income         Diluted
                                             (Expense)      Per Share
                                            -----------    -----------

 Net Income Attributable to DENTSPLY
  International                             $    66,047    $      0.44

 Restructuring and Other Costs, Net of
  Tax and Non-Controlling Interests              11,398           0.07

 Income Tax-Related Adjustments                  (8,169)         (0.05)
                                            -----------    -----------

       Adjusted Non-GAAP Earnings           $    69,276   $       0.46
                                            ===========   ============


                      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.

  Nine Months Ended September 30, 2009
                                                          Percentage
                                            Operating    of Net Sales,
                                             Income       Ex Precious
                                            (Expense)    Metal Content
                                          -------------  -------------

  Income from Operations                  $     277,809           18.9%

  Restructuring, Impairments and Other
   Costs                                          5,905            0.4%

  Recent Acquisition-Related Activities           4,020            0.3%
                                          -------------  -------------

  Adjusted Non-GAAP Operating Earnings    $     287,734           19.6%
                                          =============  =============


  Nine Months Ended September 30, 2008                          

                                                          Percentage
                                            Operating    of Net Sales,
                                             Income       Ex Precious
                                            (Expense)    Metal Content
                                          -------------  -------------



 Income from Operations                   $     295,111           19.3%

 Restructuring, Impairments and Other
  Costs                                          20,202            1.4%
                                          -------------  -------------

 Adjusted Non-GAAP Operating Earnings     $     315,313           20.7%
                                          =============  =============


                     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.

 Nine Months Ended September 30, 2009

                                             Income         Diluted
                                            (Expense)      Per Share
                                          -------------  -------------

 Net Income Attributable to DENTSPLY
  International                           $     199,424  $        1.33

 Restructuring, Impairment and Other
  Costs, Net of Tax and Non-Controlling
  Interests                                       1,770           0.01

 Recent Acquisition-Related Activities,
  Net of Tax and Non-Controlling
  Interests                                       4,024           0.02

 Income Tax-Related Adjustments                  (2,076)         (0.01)
                                          -------------  -------------
 Adjusted Non-GAAP Earnings               $     203,142  $        1.35
                                          =============  =============



 Nine Months Ended September 30, 2008

                                              Income         Diluted
                                            (Expense)       Per Share
                                          -------------  -------------
 Net Income Attributable to DENTSPLY
  International                           $     212,874  $        1.40

 Restructuring, Impairment and Other
  Costs, Net of Tax and Non-Controlling
  Interests                                      12,432           0.08

 Non-performance Risk Adjustments on
  Derivatives                                    (1,129)         (0.01)

 Income Tax-Related Adjustments                  (6,513)         (0.04)
                                          -------------  -------------

 Adjusted Non-GAAP Earnings               $     217,664  $        1.43
                                          =============  =============


                      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 September 30, 2009

                                                            Percentage
                                    Pre-tax      Income     of Pre-tax
                                     Income       Taxes       Income
                                   ----------  ----------   ----------

 As Reported - GAAP Operating
  Results                          $   87,852  $  (19,999)        22.8%

 Restructuring, Impairment and
  Other Costs                           1,210        (492)

 Recent Acquisition-Related
  Activities                              243         (24)

 Income Tax-Related Adjustments                    (2,570)
                                   ----------  ----------   ----------

 As Adjusted - Non-GAAP
  Operating Results                $   89,305  $  (23,085)        25.8%


 Three Months Ended September 30, 2008   

                                                            Percentage
                                    Pre-tax      Income     of Pre-tax
                                     Income       Taxes       Income
                                   ----------  ----------   ----------

 As Reported - GAAP Operating
  Results                          $   75,270  $   (9,204)        12.2%

 Restructuring, Impairment and
  Other Costs                          18,539      (7,141)

 Income Tax-Related Adjustments                    (8,169)
                                   ----------  ----------   ----------

 As Adjusted - Non-GAAP Operating
  Results                          $   93,809  $  (24,514)        26.1%


                     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.

 Nine Months Ended September 30, 2009

                                                            Percentage
                                    Pre-tax      Income     of Pre-tax
                                     Income       Taxes       Income
                                   ----------  ----------   ----------

 As Reported - GAAP Operating
  Results                          $  263,932  $  (65,570)        24.8%

 Restructuring, Impairment and
  Other Costs                           5,905      (2,006)

 Recent Acquisition-Related
  Activities                            4,020      (1,070)

 Income Tax-Related Adjustments                    (2,076)
                                   ----------  ----------   ----------

 As Adjusted - Non-GAAP
  Operating Results                $  273,857  $  (70,722)        25.8%


 Nine Months Ended September 30, 2008

                                                            Percentage
                                    Pre-tax      Income     of Pre-tax
                                     Income       Taxes       Income
                                   ----------  ----------   ----------


 As Reported - GAAP Operating
  Results                          $  280,138  $  (67,219)        24.0%

 Restructuring, Impairment and
  Other Costs                          20,202      (7,770)

 Non-performance Risk Adjustments
  on Derivatives                      (1,839)         710

 Income Tax-Related Adjustments                    (6,513)
                                   ----------  ----------   ----------

 As Adjusted - Non-GAAP
  Operating Results                $  298,501  $  (80,792)        27.1%
CONTACT:  DENTSPLY International Inc.
          William R. Jellison, Senior Vice President and
           Chief Financial Officer
          (717) 849-4243
}