FORM 8-K
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report April 27, 2004
(Date of earliest event reported)
DENTSPLY INTERNATIONAL INC
(Exact name of Company as specified in charter)
Delaware 0-16211 39-1434669
(State of Incorporation) (Commission (IRS Employer
File Number) Identification No.)
221 West Philadelphia Street, York, Pennsylvania 17405
(Address of principal executive offices) (Zip Code)
(717) 845-7511
(Company's telephone number including area code)
Item 7. Financial Statements and Exhibits
(a) Financial Statements - Not applicable.
(b) Exhibits:
99.1 The Dentsply International Inc. first quarter 2004 sales
and earnings release issued April 27, 2004 as referenced
in Item 12.
Item 12. - Disclosure of Results of Operations and Financial
Condition
The following information is furnished pursuant to Item 12,
"Disclosure of Results of Operations and Financial Condition."
On April 27, 2004, the Company issued a press release
disclosing its first quarter 2004 sales and earnings. This
earnings release references net sales excluding precious metal
content. Due to the fluctuations of precious metal prices and
because the precious metal content of the Company's sales is
largely a pass-through to customers and has minimal effect on
earnings, the Company reports sales both with and without
precious metal content to show the Company's performance
independent of precious metal price volatility and to enhance
comparability of performance between periods. A copy of the
Company's press release is attached hereto as Exhibit (99.1) and
is hereby incorporated by reference.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the Company has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
DENTSPLY INTERNATIONAL INC
(Company)
/s/ Bret W. Wise
Bret W. Wise
Senior Vice President and
Chief Financial Officer
Date: April 28, 2004
NEWS
For Further
Information
Contact:
Bret W. Wise FOR IMMEDIATE RELEASE
Senior Vice President and
Chief Financial Officer
(717) 849-4718
Dentsply International Inc.
Reports Record First Quarter 2004 Sales and Earnings
York, PA - April 27, 2004 -- DENTSPLY International Inc.
(NASDAQ-XRAY) today announced record sales and earnings for the
quarter ended March 31, 2004. Net sales increased 11.9% to
$415.4 million compared to $371.2 million reported for the first
quarter of 2003. Net sales, excluding precious metal content,
increased 13.3% in the first quarter of 2004, reflecting an
improvement in the rate of organic growth and the benefit of
currency translation.
Net income for the first quarter of 2004 was $88.8 million, or
$1.09 per diluted share. Income from continuing operations for
the quarter was $45.8 million, $0.56 per diluted share, an
increase of 19.1% compared to income from continuing operations
of $37.4 million, $0.47 per diluted share in 2003. The 2004
period includes pretax charges of $0.7 million relating to
restructuring activities to consolidate the Company's United
States laboratory businesses and a reduction in income taxes of
$1.2 million related to tax matters from prior periods. The
results for 2004 also include $0.53 per diluted share from
discontinued operations, consisting primarily of the net gain on
the sale of the Company's Gendex equipment business which was
completed in February 2004.
Gary K. Kunkle, Vice Chairman and Chief Executive Officer
commented that, "We are pleased by the record performance in the
first quarter of 2004, particularly the improvement in overall
sales growth. Our growth throughout Europe was exceptional and
we benefited from a return to strong growth in Asia. While our
sales growth in the United States remains below historic levels,
market indicators suggest an improvement in this country as we
move through the year."
Mr. Kunkle also said, "In the first quarter we completed the
relocation of our distribution center in Europe without
disruption of deliveries to customers. This should allow us to
improve future deliveries and customer service levels throughout
the European Community where we have experienced significant
growth over the past two years. The Company also expects to
complete the consolidation of the U.S. laboratory businesses in
the second quarter of 2004. We continue to see opportunities to
grow earnings through combining resources and lowering costs.
These conditions, combined with an outlook for stronger sales
growth, position us well for another record year in 2004."
DENTSPLY Conference Call Information
DENTSPLY will hold a conference call on Wednesday, April 28, 2004
at 8:30 AM Eastern Time. To access the call, dial (877) 885-5820
(for domestic calls) and (706) 643-9578 (for international
calls). This conference call will be broadcast live on the
Internet at www.dentsply.com. An audio replay of the conference
call will be available for two weeks. To access the replay,
please dial (800) 642-1687 (for domestic calls) and (706)
645-9291 (for international calls). Call I.D.: 6651354.
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 injectible anesthetics,
impression materials, orthodontic appliances, dental cutting
instruments and dental implants. 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.
This press release contains forward-looking statements regarding
future events or the future financial performance of the
company. Actual events or results may differ materially from
those in the projections or other forward-looking statements 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, and changes in the general economic
environment that could affect our business.
For an additional description of risk factors, please refer to
the Company's Annual Report on Form 10-K filed with the
Securities and Exchange Commission.
DENTSPLY INTERNATIONAL INC.
CONSOLIDATED STATEMENTS OF INCOME
(IN THOUSANDS EXCEPT PER SHARE DATA)
THREE MONTHS ENDED
March 31,
------------------------------
2004 2003
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NET SALES $415,381 $371,236
NET SALES - Ex Precious Metals $359,004 $316,886
COST OF PRODUCTS SOLD 210,524 188,474
GROSS PROFIT 204,857 182,762
% OF NET SALES 49.3% 49.2%
% OF NET SALES - Ex Precious Metals 57.1% 57.7%
SELLING, GENERAL &
ADMINISTRATIVE EXPENSES 134,027 122,238
RESTRUCTURING (INCOME)/COSTS 724 0
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INCOME FROM OPERATIONS 70,106 60,524
% OF NET SALES 16.9% 16.3%
% OF NET SALES - Ex Precious Metals 19.5% 19.1%
NET INTEREST AND
OTHER EXPENSE (INCOME) 5,496 5,318
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PRE-TAX INCOME FROM CONTINUING OPERATIONS 64,610 55,206
INCOME TAXES 18,842 17,767
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INCOME FROM CONTINUING OPERATIONS 45,768 37,439
% OF NET SALES 11.0% 10.1%
% OF NET SALES - Ex Precious Metals 12.7% 11.8%
INCOME FROM DISCONTINUED OPERATIONS, NET OF TAX
(INCLUDING GAIN ON SALE IN 2004 OF $43,031) 43,064 828
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NET INCOME $88,832 $38,267
============= ==============
EARNINGS PER SHARE - BASIC:
CONTINUING OPERATIONS $0.57 $0.48
DISCONTINUED OPERATIONS $0.54 $0.01
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TOTAL EARNINGS PER SHARE $1.11 $0.49
============= ==============
EARNINGS PER SHARE - DILUTIVE:
CONTINUING OPERATIONS $0.56 $0.47
DISCONTINUED OPERATIONS $0.53 $0.01
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TOTAL EARNINGS PER SHARE $1.09 $0.48
============= ==============
DIVIDENDS PER SHARE $0.0525 $0.0460
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING
-BASIC 79,922 78,442
-DILUTIVE 81,501 80,007
DENTSPLY INTERNATIONAL INC.
CONDENSED BALANCE SHEETS
(IN THOUSANDS)
MARCH 31, DECEMBER 31,
2004 2003
ASSETS
CURRENT ASSETS:
CASH AND CASH EQUIVALENTS $ 287,710 $ 163,755
ACCOUNTS AND NOTES RECEIVABLE-TRADE, NET 248,387 241,385
INVENTORIES, NET 207,836 205,587
OTHER CURRENT ASSETS 89,711 88,463
ASSETS HELD FOR SALE -- 28,262
TOTAL CURRENT ASSETS 833,644 727,452
PROPERTY,PLANT AND EQUIPMENT, NET 374,567 376,211
GOODWILL, NET 957,119 963,264
IDENTIFIABLE INTANGIBLES ASSETS, NET 241,837 246,475
OTHER NONCURRENT ASSETS, NET 108,116 114,736
ASSETS HELD FOR SALE -- 17,449
TOTAL ASSETS $2,515,283 $2,445,587
LIABILITIES AND STOCKHOLDERS' EQUITY:
CURRENT LIABILITIES $ 322,702 $ 337,684
LIABILITIES OF DISCONTINUED OPERATIONS -- 1,269
LONG-TERM DEBT 787,467 790,202
OTHER LIABILITIES 143,394 142,704
DEFERRED INCOME TAXES 47,792 51,241
TOTAL LIABILITIES 1,301,355 1,323,100
MINORITY INTEREST IN CONSOLIDATED SUBSIDIARIES 313 418
STOCKHOLDERS' EQUITY 1,213,615 1,122,069
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $2,515,283 $2,445,587