Dentsply Sirona Reports Fourth Quarter and Full Year 2023 Results, Provides Full Year 2024 Outlook, Raises Dividend
- FY23 net sales of
$3,965 million increased 1.1%, organic sales increased 2.2% - FY23 GAAP net income (loss) of
($132) million or ($0.62 ) per share, adjusted EPS of$1.83 - Q4 net sales of
$1,012 million increased 2.9%, organic sales increased 1.9% - Q4 GAAP net income of
$67 million or$0.32 per share, adjusted EPS of$0.44 - FY24 outlook: organic sales flat to up 1.5%; adjusted EPS of
$2.00 to$2.10
Full year 2023 net sales of
Fourth quarter net sales of
“We delivered on our outlook with three of our four segments posting year-over-year growth in the fourth quarter and full year 2023,” said
Q4 23 and FY 23 Summary Results (GAAP)
(in millions, except per share amount and percentages) | Q4 23 | Q4 22 | YoY | FY 23 | FY 22 | YoY | ||||||
2.9% | 1.1% | |||||||||||
Gross Profit | 1.0% | (1.9%) | ||||||||||
Gross Margin | 51.6% | 52.6% | 52.6% | 54.2% | ||||||||
Net Income (Loss) Attributable to |
( |
NM | ( |
( |
NM | |||||||
Diluted Earnings (Loss) Per Share | ( |
NM | ( |
( |
NM | |||||||
NM - not meaningful | ||||||||||||
Percentages are based on actual values and may not recalculate due to rounding. | ||||||||||||
Q4 23 and FY 23 Summary Results (Non-GAAP)[1]
(in millions, except per share amount and percentages) | Q4 23 | Q4 22 | YoY | FY 23 | FY 22 | YoY | ||||||
2.9% | 1.1% | |||||||||||
Organic Sales Growth % | 1.9% | 2.2% | ||||||||||
Adjusted EBITDA | 0.7% | (9.8%) | ||||||||||
Adjusted EBITDA Margin | 17.1% | 17.5% | 17.4% | 19.5% | ||||||||
Adjusted EPS | (4.0%) | (12.8%) | ||||||||||
[1] Organic sales growth, adjusted EBITDA, and adjusted EPS are Non-GAAP financial measures which exclude certain items. Please refer to "Non-GAAP Financial Measures" below for a description of these measures and to the tables at the end of this release for a reconciliation between GAAP and Non-GAAP measures. | ||||||||||||
Percentages are based on actual values and may not recalculate due to rounding. | ||||||||||||
Q4 23 and FY 23 Segment Results
Net Sales Growth % | Organic Sales Growth % | |||||
Q4 23 | FY 23 | Q4 23 | FY 23 | |||
Connected Technology Solutions | (7.0%) | (4.1%) | (8.3%) | (2.8%) | ||
Essential Dental Solutions | 4.5% | 2.8% | 3.4% | 3.6% | ||
Orthodontic and Implant Solutions | 10.3% | 3.4% | 10.6% | 5.1% | ||
21.1% | 6.6% | 16.9% | 7.3% | |||
Total | 2.9% | 1.1% | 1.9% | 2.2% | ||
Q4 23 and FY 23 Geographic Results
Net Sales Growth % | Organic Sales Growth % | |||||
Q4 23 | FY 23 | Q4 23 | FY 23 | |||
(0.4%) | 3.2% | (1.2%) | 3.0% | |||
5.3% | (0.6%) | 2.7% | (0.2%) | |||
Rest of World | 4.3% | 0.7% | 5.4% | 5.1% | ||
Total | 2.9% | 1.1% | 1.9% | 2.2% | ||
Cash Flow and Liquidity
Operating cash flow in the fourth quarter of 2023 was
Quarterly Cash Dividend
The Company's Board of Directors approved a 14% increase in the Company's quarterly dividend rate, from the previous rate of
Full Year 2024 Outlook
The 2024 outlook includes anticipated net sales in the range of
Other 2024 outlook assumptions are included in the fourth quarter 2023 earnings presentation posted on the Investors section of the
Conference Call/Webcast Information
Dentsply Sirona’s management team will host an investor conference call and live webcast on
For those planning to participate on the call, please register at https://register.vevent.com/register/BI780eb31a2a894c20ae60990011145ed8. A webcast replay of the conference call will be available on the Investors section of the Company’s website following the call.
About
Contact Information:
Investors:
Vice President, Investor Relations
+1-704-591-8631
InvestorRelations@dentsplysirona.com
Press:
Marion Par-Weixlberger
Vice President,
+43 676 848414588
marion.par-weixlberger@dentsplysirona.com
Forward-Looking Statements and Associated Risks
This Press Release contains statements that do not directly and exclusively relate to historical facts which constitute forward-looking statements, including, statements and projections concerning, among other things, the expected timing, benefits and costs associated with the Company’s restructuring plan described in this Press Release. The Company’s forward-looking statements represent current expectations and beliefs and involve risks and uncertainties. Actual results may differ significantly from those projected or suggested in any forward-looking statements and no assurance can be given that the results described in such forward-looking statements will be achieved. Investors are cautioned not to place undue reliance on such forward-looking statements which speak only as of the date they are made. The forward-looking statements are subject to numerous assumptions, risks and uncertainties and other factors that could cause actual results to differ materially from those described in such statements, many of which are outside of our control. The Company does not undertake any obligation to release publicly any revisions to such forward-looking statements to reflect events or circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Any number of factors could cause the Company’s actual results to differ materially from those contemplated by any forward-looking statements, including, but not limited to, the risks associated with the following: the Company’s ability to remain profitable in a very competitive marketplace, which depends upon the Company’s ability to differentiate its products and services from those of competitors; the Company’s failure to realize assumptions and projections which may result in the need to record additional impairment charges; the effect of changes to the Company’s distribution channels for its products and the failure of significant distributors of the Company to effectively manage their inventories; the Company’s ability to control costs and failure to realize expected benefits of cost reduction and restructuring efforts and the Company’s failure to anticipate and appropriately adapt to changes or trends within the rapidly changing dental industry. Investors should carefully consider these and other relevant factors, including those risk factors in Part I, Item 1A, (“Risk Factors”) in the Company’s most recent Form 10-K, including any amendments thereto, and any updating information which may be contained in the Company’s other filings with the
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
(In millions, except per share amounts and percentages) | |||||||||||||||
(unaudited) | |||||||||||||||
Three Months Ended | Year Ended | ||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||
Net sales | $ | 1,012 | $ | 983 | $ | 3,965 | $ | 3,922 | |||||||
Cost of products sold | 490 | 466 | 1,879 | 1,795 | |||||||||||
Gross profit | 522 | 517 | 2,086 | 2,127 | |||||||||||
Selling, general, and administrative expenses | 409 | 402 | 1,613 | 1,589 | |||||||||||
Research and development expenses | 43 | 43 | 184 | 174 | |||||||||||
— | 6 | 307 | 1,287 | ||||||||||||
Restructuring and other costs | (3 | ) | 1 | 67 | 14 | ||||||||||
Operating income (loss) | 73 | 65 | (85 | ) | (937 | ) | |||||||||
Other income and expenses: | |||||||||||||||
Interest expense, net | 20 | 20 | 81 | 65 | |||||||||||
Other (income) expense, net | (4 | ) | 37 | 9 | 53 | ||||||||||
Income (loss) before income taxes | 57 | 8 | (175 | ) | (1,055 | ) | |||||||||
(Benefit) provision for income taxes | (15 | ) | 23 | (43 | ) | (105 | ) | ||||||||
Net income (loss) | 72 | (15 | ) | (132 | ) | (950 | ) | ||||||||
Less: Net loss attributable to noncontrolling interests | 5 | — | — | — | |||||||||||
Net income (loss) attributable to |
$ | 67 | $ | (15 | ) | $ | (132 | ) | $ | (950 | ) | ||||
Net income (loss) per common share attributable to |
|||||||||||||||
Basic | $ | 0.32 | $ | (0.07 | ) | $ | (0.62 | ) | $ | (4.41 | ) | ||||
Diluted | $ | 0.32 | $ | (0.07 | ) | $ | (0.62 | ) | $ | (4.41 | ) | ||||
Weighted average common shares outstanding: | |||||||||||||||
Basic | 210.0 | 215.1 | 212.0 | 215.5 | |||||||||||
Diluted | 210.9 | 215.1 | 212.0 | 215.5 | |||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
(In millions) | |||||||
(unaudited) | |||||||
Assets | |||||||
Current Assets: | |||||||
Cash and cash equivalents | $ | 334 | $ | 365 | |||
Accounts and notes receivable-trade, net | 695 | 632 | |||||
Inventories, net | 624 | 627 | |||||
Prepaid expenses and other current assets | 320 | 269 | |||||
Total Current Assets | 1,973 | 1,893 | |||||
Property, plant and equipment, net | 800 | 761 | |||||
Operating lease right-of-use assets, net | 178 | 200 | |||||
Identifiable intangible assets, net | 1,705 | 1,903 | |||||
2,438 | 2,688 | ||||||
Other noncurrent assets | 276 | 198 | |||||
Total Assets | $ | 7,370 | $ | 7,643 | |||
Liabilities and Equity | |||||||
Current Liabilities: | |||||||
Accounts payable | $ | 305 | $ | 279 | |||
Accrued liabilities | 749 | 727 | |||||
Income taxes payable | 49 | 46 | |||||
Notes payable and current portion of long-term debt | 322 | 118 | |||||
Total Current Liabilities | 1,425 | 1,170 | |||||
Long-term debt | 1,796 | 1,826 | |||||
Operating lease liabilities | 125 | 149 | |||||
Deferred income taxes | 228 | 287 | |||||
Other noncurrent liabilities | 502 | 399 | |||||
Total Liabilities | 4,076 | 3,831 | |||||
Total Equity | 3,294 | 3,812 | |||||
Total Liabilities and Equity | $ | 7,370 | $ | 7,643 | |||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(In millions) | |||||||
(unaudited) | |||||||
Year Ended |
|||||||
2023 | 2022 | ||||||
Cash flows from operating activities: | |||||||
Net (loss) income | $ | (132 | ) | $ | (950 | ) | |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||||||
Depreciation | 132 | 119 | |||||
Amortization of intangible assets | 211 | 209 | |||||
291 | 1,187 | ||||||
Indefinite-lived intangible asset impairment | 16 | 100 | |||||
Deferred income taxes | (130 | ) | (228 | ) | |||
Stock based compensation expense | 46 | 59 | |||||
Restructuring and other costs | 33 | (10 | ) | ||||
Equity in earnings from unconsolidated affiliates | 4 | 36 | |||||
Other non-cash (income) expense | (5 | ) | 60 | ||||
Loss (gain) on sale or disposal of non-strategic businesses and product lines | — | 3 | |||||
Changes in operating assets and liabilities, net of acquisitions: | |||||||
Accounts and notes receivable-trade, net | (58 | ) | 85 | ||||
Inventories, net | 6 | (141 | ) | ||||
Prepaid expenses and other current assets | (58 | ) | (33 | ) | |||
Other noncurrent assets | 4 | 1 | |||||
Accounts payable | 14 | 30 | |||||
Accrued liabilities | (16 | ) | 4 | ||||
Income taxes | (11 | ) | (15 | ) | |||
Other noncurrent liabilities | 30 | 1 | |||||
Net cash provided by operating activities | $ | 377 | $ | 517 | |||
Cash flows from investing activities: | |||||||
Cash received on sale of non-strategic businesses or product lines | 13 | — | |||||
Capital expenditures | (149 | ) | (149 | ) | |||
Cash received on derivative contracts | 39 | 13 | |||||
Proceeds from sale of property, plant and equipment | 7 | — | |||||
Other investing activities, net | 1 | (2 | ) | ||||
Net cash used in investing activities | $ | (89 | ) | $ | (138 | ) | |
Cash flows from financing activities: | |||||||
Proceeds from long-term borrowings | — | 6 | |||||
Repayments on long-term borrowings | (7 | ) | (2 | ) | |||
Net borrowings (repayments) on short-term borrowings | 126 | (64 | ) | ||||
Proceeds from exercised stock options | — | 6 | |||||
Cash paid for treasury stock | (300 | ) | (150 | ) | |||
Cash dividends paid | (116 | ) | (104 | ) | |||
Other financing activities, net | (10 | ) | (21 | ) | |||
Net cash used in financing activities | $ | (307 | ) | $ | (329 | ) | |
Effect of exchange rate changes on cash and cash equivalents | (12 | ) | (24 | ) | |||
Net (decrease) increase in cash and cash equivalents | (31 | ) | 26 | ||||
Cash and cash equivalents at beginning of period | 365 | 339 | |||||
Cash and cash equivalents at end of period | $ | 334 | $ | 365 | |||
Supplemental disclosures of cash flow information: | |||||||
Interest paid, net of amounts capitalized | $ | 97 | $ | 70 | |||
Income taxes paid, net of refunds | 177 | 122 | |||||
Non-cash investing activities: | |||||||
Change in accounts payable related to capital expenditures | $ | 6 | $ | (6 | ) | ||
Non-GAAP Financial Measures
In addition to results determined in accordance with
Management believes that these Non-GAAP measures are helpful as they provide a measure of the results of operations, and are frequently used by investors and analysts to evaluate the Company’s performance exclusive of certain items that impact the comparability of results from period to period, and which may not be indicative of past or future performance of the Company.
Organic Sales
The Company defines "organic sales" as the reported net sales adjusted for: (1) net sales from acquired businesses recorded prior to the first anniversary of the acquisition; (2) net sales attributable to disposed businesses or discontinued product lines in both the current and prior year periods; and (3) the impact of foreign currency changes, which is calculated by translating current period net sales using the comparable prior period's foreign currency exchange rates.
Adjusted Operating Income (Loss) and Margin
Adjusted operating income is computed by excluding the following items from operating income (loss) as reported in accordance with US GAAP:
(1) Business combination related costs and fair value adjustments. These adjustments include costs related to consummating and integrating acquired businesses, as well as net gains and losses related to disposed businesses. In addition, this category includes the post-acquisition roll-off of fair value adjustments recorded related to business combinations, except for amortization expense of purchased intangible assets noted below. Although the Company is regularly engaged in activities to find and act on opportunities for strategic growth and enhancement of product offerings, the costs associated with these activities may vary significantly between periods based on the timing, size and complexity of acquisitions and as such may not be indicative of past and future performance of the Company.
(2) Restructuring related charges and other costs. These adjustments include costs related to the implementation of restructuring initiatives, including but not limited to, severance costs, facility closure costs, and lease and contract termination costs, as well as related professional service costs associated with these restructuring initiatives and global transformation activity. The Company is continually seeking to take actions that could enhance its efficiency; consequently, restructuring charges may recur but are subject to significant fluctuations from period to period due to the varying levels of restructuring activity, and as such may not be indicative of past and future performance of the Company. Other costs include gains and losses on the sale of property, charges related to legal settlements, executive separation costs, write-offs of inventory as a result of product rationalization, and changes in accounting principles recorded within the period. This category also includes costs related to investigations and associated remediation activities which primarily include legal, accounting and other professional service fees, as well as turnover and other employee-related costs.
(3)
(4) Amortization of purchased intangible assets. This adjustment excludes the periodic amortization expense related to purchased intangible assets, which are recorded at fair value. Although these costs contribute to revenue generation and will recur in future periods, their amounts are significantly impacted by the timing and size of acquisitions, and as such may not be indicative of the future performance of the Company.
(5) Fair value and credit risk adjustments. These adjustments include the non-cash mark-to-market changes in fair value associated with pension assets and obligations, the credit risk component of hedging instruments, and equity-method investments. Although these adjustments are recurring in nature, they are subject to significant fluctuations from period to period due to changes in the underlying assumptions and market conditions. The non-service component of pension expense is a recurring item, however it is subject to significant fluctuations from period to period due to changes in actuarial assumptions, interest rates, plan changes, settlements, curtailments, and other changes in facts and circumstances. As such, these items may not be indicative of past and future performance of the Company.
Adjusted operating margin is calculated by dividing adjusted operating income by net sales.
Adjusted Gross Profit
Adjusted gross profit is computed by excluding from gross profit the impact any of the above adjustments that affect either sales or cost of sales.
Adjusted Net Income (Loss)
Adjusted net income (loss) consists of net income (loss) as reported in accordance with US GAAP, adjusted to exclude the items identified above, as well as the related income tax impacts of those items. Additionally, net income is adjusted for other tax-related adjustments such as: discrete adjustments to valuation allowances and other uncertain tax positions, final settlement of income tax audits, discrete tax items resulting from the implementation of restructuring initiatives and the windfall or shortfall relating to exercise of employee share-based compensation, any difference between the interim and annual effective tax rate, and adjustments relating to prior periods.
These adjustments are irregular in timing, and the variability in amounts may not be indicative of past and future performance of the Company and therefore are excluded for comparability purposes.
Adjusted EBITDA and Margin
In addition to the adjustments described above in arriving at adjusted net income, adjusted EBITDA is computed by further excluding any remaining interest expense, net, income tax expense, depreciation and amortization.
Adjusted EBITDA margin is calculated by dividing adjusted EBITDA by net sales.
Adjusted Earnings (Loss) Per Diluted Share
Adjusted earnings (loss) (EPS) per diluted share is computed by dividing adjusted earnings (losses) attributable to
Adjusted Free Cash Flow Conversion
The Company defines adjusted free cash flow as net cash provided by operating activities minus capital expenditures during the same period, and adjusted free cash flow conversion is defined as adjusted free cash flow divided by adjusted net income (loss). Management believes this Non-GAAP measure is important for use in evaluating the Company’s financial performance as it measures our ability to efficiently generate cash from our business operations relative to earnings. It should be considered in addition to, rather than as a substitute for, net income (loss) as a measure of our performance or net cash provided by operating activities as a measure of our liquidity.
(In millions, except percentages) | |||||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||
A reconciliation of reported net sales to organic sales by geographic region is as follows: | |||||||||||||||||||||||||||
Three Months Ended |
Q4 2023 Change | Three Months Ended |
|||||||||||||||||||||||||
(in millions, except percentages) | ROW | Total | ROW | Total | ROW | Total | |||||||||||||||||||||
Net sales | $ | 368 | $ | 397 | $ | 247 | $ | 1,012 | (0.4 | %) | 5.3 | % | 4.3 | % | 2.9 | % | $ | 369 | $ | 376 | $ | 238 | $ | 983 | |||
Foreign exchange impact | 0.8 | % | 2.6 | % | (1.1 | %) | 1.0 | % | |||||||||||||||||||
Organic sales | (1.2 | %) | 2.7 | % | 5.4 | % | 1.9 | % | |||||||||||||||||||
Percentages are based on actual values and may not recalculate due to rounding. | |||||||||||||||||||||||||||
Year Ended |
2023 Change | Year Ended |
|||||||||||||||||||||||||
(in millions, except percentages) | ROW | Total | ROW | Total | ROW | Total | |||||||||||||||||||||
Net sales | $ | 1,437 | $ | 1,550 | $ | 978 | $ | 3,965 | 3.2 | % | (0.6 | %) | 0.7 | % | 1.1 | % | $ | 1,392 | $ | 1,559 | $ | 971 | $ | 3,922 | |||
Foreign exchange impact | 0.2 | % | (0.4 | %) | (4.4 | %) | (1.1 | %) | |||||||||||||||||||
Organic sales | 3.0 | % | (0.2 | %) | 5.1 | % | 2.2 | % | |||||||||||||||||||
Percentages are based on actual values and may not recalculate due to rounding. | |||||||||||||||||||||||||||
A reconciliation of reported net sales to organic sales by segment is as follows: | |||||||||||||||||||||||||||||||||
Three Months Ended |
Q4 2023 Change | Three Months Ended |
|||||||||||||||||||||||||||||||
(in millions, except percentages) | Connected Technology Solutions | Essential Dental Solutions | Orthodontic and Implant Solutions | Total | Connected Technology Solutions | Essential Dental Solutions | Orthodontic and Implant Solutions | Total | Connected Technology Solutions | Essential Dental Solutions | Orthodontic and Implant Solutions | Total | |||||||||||||||||||||
Net sales | $ | 319 | $ | 358 | $ | 259 | $ | 76 | $ | 1,012 | (7.0 | %) | 4.5 | % | 10.3 | % | 21.1 | % | 2.9 | % | $ | 344 | $ | 343 | $ | 234 | $ | 62 | $ | 983 | |||
Foreign exchange impact | 1.3 | % | 1.1 | % | (0.3 | %) | 4.2 | % | 1.0 | % | |||||||||||||||||||||||
Organic sales | (8.3 | %) | 3.4 | % | 10.6 | % | 16.9 | % | 1.9 | % | |||||||||||||||||||||||
Percentages are based on actual values and may not recalculate due to rounding. | |||||||||||||||||||||||||||||||||
Year Ended |
2023 Change | Year Ended |
|||||||||||||||||||||||||||||||
(in millions, except percentages) | Connected Technology Solutions | Essential Dental Solutions | Orthodontic and Implant Solutions | Total | Connected Technology Solutions | Essential Dental Solutions | Orthodontic and Implant Solutions | Total | Connected Technology Solutions | Essential Dental Solutions | Orthodontic and Implant Solutions | Total | |||||||||||||||||||||
Net sales | $ | 1,169 | $ | 1,468 | $ | 1,040 | $ | 288 | $ | 3,965 | (4.1 | %) | 2.8 | % | 3.4 | % | 6.6 | % | 1.1 | % | $ | 1,219 | $ | 1,427 | $ | 1,006 | $ | 270 | $ | 3,922 | |||
Foreign exchange impact | (1.3 | %) | (0.8 | %) | (1.7 | %) | (0.7 | %) | (1.1 | %) | |||||||||||||||||||||||
Organic sales | (2.8 | %) | 3.6 | % | 5.1 | % | 7.3 | % | 2.2 | % | |||||||||||||||||||||||
Percentages are based on actual values and may not recalculate due to rounding. | |||||||||||||||||||||||||||||||||
(In millions, except per share amounts and percentages) | |||||||||||||||
(unaudited) | |||||||||||||||
For the three months ended |
|||||||||||||||
(in millions, except percentages and per share data) | Gross Profit | Operating Income |
Net Income Attributable to (a) |
Diluted EPS | |||||||||||
GAAP | $ | 522 | $ | 73 | $ | 67 | $ | 0.32 | |||||||
Non-GAAP Adjustments: | |||||||||||||||
Amortization of Purchased Intangible Assets | 30 | 52 | 37 | 0.18 | |||||||||||
Restructuring Related Charges and Other Costs | 6 | 16 | 14 | 0.06 | |||||||||||
Business Combination Related Costs and Fair Value Adjustments | — | 2 | 3 | 0.01 | |||||||||||
Income Tax Related Adjustments | — | — | (28 | ) | (0.13 | ) | |||||||||
Adjusted Non-GAAP | $ | 558 | $ | 143 | $ | 93 | $ | 0.44 | |||||||
GAAP Margin | 7.2 | % | |||||||||||||
Adjusted Non-GAAP Margin | 14.1 | % | |||||||||||||
(a) The total tax expense associated with the Non-GAAP adjustments above was |
|||||||||||||||
Percentages are based on actual values and may not reconcile due to rounding. | |||||||||||||||
(In millions, except per share amounts and percentages) | |||||||||||||||
(unaudited) | |||||||||||||||
For the three months ended |
|||||||||||||||
(in millions, except percentages and per share data) | Gross Profit | Operating Income |
Net (Loss) Income Attributable to (a) |
Diluted EPS | |||||||||||
GAAP | $ | 517 | $ | 65 | $ | (15 | ) | $ | (0.07 | ) | |||||
Non-GAAP Adjustments: | |||||||||||||||
Amortization of Purchased Intangible Assets | 29 | 50 | 36 | 0.17 | |||||||||||
Restructuring Related Charges and Other Costs | 6 | 30 | 22 | 0.10 | |||||||||||
— | 6 | 12 | 0.06 | ||||||||||||
Business Combination Related Costs and Fair Value Adjustments | — | 3 | 4 | 0.02 | |||||||||||
Fair Value and Credit Risk Adjustments | — | — | 18 | 0.08 | |||||||||||
Income Tax Related Adjustments | — | — | 22 | 0.10 | |||||||||||
Adjusted Non-GAAP | $ | 552 | $ | 154 | $ | 99 | $ | 0.46 | |||||||
GAAP Margin | 6.6 | % | |||||||||||||
Adjusted Non-GAAP Margin | 15.7 | % | |||||||||||||
Weighted average common shares outstanding used in calculating diluted GAAP net loss per common share | 215.1 | ||||||||||||||
Weighted average common shares outstanding used in calculating diluted Non-GAAP net income per common share | 215.5 | ||||||||||||||
(a) The total tax expense associated with the Non-GAAP adjustments above was immaterial. | |||||||||||||||
Percentages are based on actual values and may not reconcile due to rounding. | |||||||||||||||
(In millions, except per share amounts and percentages) | |||||||||||||||
(unaudited) | |||||||||||||||
For the year ended |
|||||||||||||||
(in millions, except percentages and per share data) | Gross Profit | Operating (Loss) Income |
Net (Loss) Income Attributable to (a) |
Diluted EPS | |||||||||||
GAAP | $ | 2,086 | $ | (85 | ) | $ | (132 | ) | $ | (0.62 | ) | ||||
Non-GAAP Adjustments: | |||||||||||||||
Amortization of Purchased Intangible Assets | 121 | 211 | 154 | 0.73 | |||||||||||
Restructuring Related Charges and Other Costs | 18 | 123 | 95 | 0.44 | |||||||||||
— | 307 | 302 | 1.42 | ||||||||||||
Business Combination Related Costs and Fair Value Adjustments | 2 | 15 | 14 | 0.07 | |||||||||||
Fair Value and Credit Risk Adjustments | — | — | — | — | |||||||||||
Income Tax Related Adjustments | — | — | (44 | ) | (0.21 | ) | |||||||||
Adjusted Non-GAAP | $ | 2,227 | $ | 571 | $ | 389 | $ | 1.83 | |||||||
GAAP Margin | (2.1 | %) | |||||||||||||
Adjusted Non-GAAP Margin | 14.4 | % | |||||||||||||
Weighted average common shares outstanding used in calculating diluted GAAP net loss per common share | 212.0 | ||||||||||||||
Weighted average common shares outstanding used in calculating diluted Non-GAAP net income per common share | 213.1 | ||||||||||||||
(a) The total tax expense associated with the Non-GAAP adjustments above was |
|||||||||||||||
Percentages are based on actual values and may not reconcile due to rounding. | |||||||||||||||
(In millions, except per share amounts and percentages) | |||||||||||||||
(unaudited) | |||||||||||||||
For the year ended |
|||||||||||||||
(in millions, except percentages and per share data) | Gross Profit | Operating (Loss) Income |
Net (Loss) Income Attributable to (a) |
Diluted EPS | |||||||||||
GAAP | $ | 2,127 | $ | (937 | ) | $ | (950 | ) | $ | (4.41 | ) | ||||
Non-GAAP Adjustments: | |||||||||||||||
Amortization of Purchased Intangible Assets | 121 | 209 | 153 | 0.71 | |||||||||||
Restructuring Related Charges and Other Costs | 7 | 92 | 73 | 0.36 | |||||||||||
— | 1,287 | 1,104 | 5.10 | ||||||||||||
Business Combination Related Costs and Fair Value Adjustments | 1 | 6 | 6 | 0.03 | |||||||||||
Fair Value and Credit Risk Adjustments | — | — | 33 | 0.15 | |||||||||||
Income Tax Related Adjustments | — | — | 33 | 0.15 | |||||||||||
Adjusted Non-GAAP | $ | 2,256 | $ | 657 | $ | 452 | $ | 2.09 | |||||||
GAAP Margin | (23.9 | %) | |||||||||||||
Adjusted Non-GAAP Margin | 16.8 | % | |||||||||||||
Weighted average common shares outstanding used in calculating diluted GAAP net loss per common share | 215.5 | ||||||||||||||
Weighted average common shares outstanding used in calculating diluted Non-GAAP net income per common share | 215.9 | ||||||||||||||
(a) The total tax expense associated with the Non-GAAP adjustments above was |
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Percentages are based on actual values and may not reconcile due to rounding. | |||||||||||||||
(In millions, except per share amounts and percentages) | ||||||||
(unaudited) | ||||||||
A reconciliation of as reported GAAP net income to Adjusted EBITDA for the three months ended |
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Three Months Ended |
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(in millions) | 2023 | 2022 | ||||||
GAAP net income (loss) | $ | 67 | $ | (15 | ) | |||
Interest expense, net | 20 | 20 | ||||||
Income tax (benefit) expense | (15 | ) | 23 | |||||
Depreciation(1) | 32 | 28 | ||||||
Amortization of purchased intangible assets | 52 | 50 | ||||||
Restructuring related charges and other costs | 16 | 30 | ||||||
— | 6 | |||||||
Business combination related costs and fair value adjustments | 2 | 6 | ||||||
Fair value and credit risk adjustments | — | 23 | ||||||
Rounding | (1 | ) | — | |||||
Adjusted EBITDA(2) | $ | 173 | $ | 171 | ||||
Net sales | $ | 1,012 | $ | 983 | ||||
Adjusted EBITDA margin | 17.1 | % | 17.5 | % | ||||
(1) Excludes those depreciation related amounts which were included as part of the Restructuring related charges and other costs and Business combination related costs and fair value adjustments above. | ||||||||
(2) Adjusted EBITDA for Q4 2022 has been updated to reflect the reclassification of |
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A reconciliation of as reported GAAP net income to Adjusted EBITDA for the year ended |
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Year Ended |
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(in millions) | 2023 | 2022 | ||||||
GAAP net loss | $ | (132 | ) | $ | (950 | ) | ||
Interest expense, net | 81 | 65 | ||||||
Income tax benefit | (43 | ) | (105 | ) | ||||
Depreciation(1) | 126 | 116 | ||||||
Amortization of purchased intangible assets | 211 | 209 | ||||||
Restructuring related charges and other costs | 123 | 92 | ||||||
307 | 1,287 | |||||||
Business combination related costs and fair value adjustments | 18 | 9 | ||||||
Fair value and credit risk adjustments | — | 43 | ||||||
Adjusted EBITDA(2) | $ | 691 | $ | 766 | ||||
Net sales | $ | 3,965 | $ | 3,922 | ||||
Adjusted EBITDA margin | 17.4 | % | 19.5 | % | ||||
(1) Excludes those depreciation related amounts which were included as part of the Restructuring related charges and other costs and Business combination related costs and fair value adjustments above. | ||||||||
(2) Adjusted EBITDA for 2022 has been updated to reflect the reclassification of |
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(In millions, except per share amounts and percentages) | ||||||||
(unaudited) | ||||||||
A reconciliation of adjusted free cash flow conversion for the three months ended |
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Three Months Ended |
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(in millions, except percentages) | 2023 | 2022 | ||||||
Net cash provided by operating activities | $ | 160 | $ | 142 | ||||
Capital Expenditures | (40 | ) | (32 | ) | ||||
Adjusted free cash flow | 120 | 110 | ||||||
Adjusted net income | $ | 93 | $ | 99 | ||||
Adjusted free cash flow conversion | 128 | % | 110 | % | ||||
A reconciliation of adjusted free cash flow conversion for the year ended |
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Year Ended |
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(in millions, except percentages) | 2023 | 2022 | ||||||
Net cash provided by operating activities | $ | 377 | $ | 517 | ||||
Capital Expenditures | (149 | ) | (149 | ) | ||||
Adjusted free cash flow | 228 | 368 | ||||||
Adjusted net income | $ | 389 | $ | 452 | ||||
Adjusted free cash flow conversion | 58 | % | 81 | % |
![](https://ml.globenewswire.com/media/NmQ1YTlhZmMtMThmYS00ODUxLWJkMTItMzhmZTcxMDNlMjU1LTEwMjIwNjc=/tiny/DENTSPLY-SIRONA-Inc-.png)
Source: DENTSPLY SIRONA Inc.