DENTSPLY SIRONA Inc. (“Dentsply Sirona” or the "Company") (Nasdaq:
XRAY) today announced its financial results for the third quarter
of 2024.
Third quarter net sales of $951 million increased 0.5% (organic
sales increased 1.3%) compared to the third quarter of 2023.
Foreign currency changes negatively impacted third quarter 2024 net
sales by ($8) million. Net loss was ($494) million, or ($2.46) per
share, compared to a net loss of ($266) million, or ($1.25) per
share in the third quarter of 2023. Non-cash charges for the
impairment of goodwill were ($495) million net of tax, or ($2.46)
per share in the third quarter of 2024, versus ($302) million net
of tax, or ($1.42) per share in the third quarter of 2023. Adjusted
earnings per diluted share were $0.50, compared to $0.49 in the
third quarter of 2023. A reconciliation of Non-GAAP measures
(including organic sales, adjusted EBITDA and margin, adjusted EPS,
adjusted free cash flow conversion, and segment adjusted operating
income) to GAAP measures is provided below.
“Third quarter organic growth was driven by favorable timing in
Essential Dental Solutions of approximately $20 million related to
stocking orders in anticipation of U.S. ERP deployment, and higher
sales in CAD/CAM, which benefited from the launch of our new
scanner, Primescan 2. Due to ongoing market pressures impacting
equipment in the U.S., as well as the evolving landscape with Byte,
we are lowering our full year organic sales outlook.” said Simon
Campion, President and Chief Executive Officer. “We continue to
transform Dentsply Sirona and pivot quickly where needed. While we
have more work to do, we now have multiple initiatives contributing
positively to profitability and strengthening our Company’s
foundation for the long term.”
Q3 24 Summary Results (GAAP)
(in millions, except per share amount and
percentages) |
|
Q3 24 |
|
Q3 23 |
|
YoY |
Net Sales |
|
$951 |
|
$947 |
|
0.5% |
Gross Profit |
|
$495 |
|
$495 |
|
0.2% |
Gross Margin |
|
52.1% |
|
52.2% |
|
|
Net Loss Attributable to
Dentsply Sirona |
|
($494) |
|
($266) |
|
NM |
Diluted Loss Per Share
[1] |
|
($2.46) |
|
($1.25) |
|
NM |
|
Q3 24 Summary Results (Non-GAAP)[2]
(in millions, except per share amount and
percentages) |
|
Q3 24 |
|
Q3 23 |
|
YoY |
Net Sales |
|
$951 |
|
$947 |
|
0.5% |
Organic Sales Growth % |
|
|
|
|
|
1.3% |
Adjusted EBITDA |
|
$170 |
|
$171 |
|
(1.8%) |
Adjusted EBITDA Margin |
|
17.9% |
|
18.3% |
|
|
Adjusted EPS |
|
$0.50 |
|
$0.49 |
|
3.0% |
NM - not meaningfulPercentages are based on actual values and
may not reconcile due to rounding.[1] Because the Company recorded
net losses in the third quarter of 2024 and 2023, no potential
dilutive common shares were used in the computation of diluted loss
per common share as the effect would have been antidilutive.[2]
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.
Q3 24 Segment Results
|
|
Net Sales Growth % |
|
Organic Sales Growth % |
|
|
|
|
|
Connected Technology
Solutions |
|
(2.3%) |
|
(1.4%) |
Essential Dental
Solutions |
|
6.6% |
|
7.5% |
Orthodontic and Implant
Solutions |
|
(4.6%) |
|
(3.9%) |
Wellspect Healthcare |
|
(0.4%) |
|
—% |
Total |
|
0.5% |
|
1.3% |
|
|
|
|
|
Q3 24 Geographic Results
|
|
Net Sales Growth % |
|
Organic Sales Growth % |
|
|
|
|
|
United States |
|
5.0% |
|
5.1% |
Europe |
|
(1.8%) |
|
(2.0%) |
Rest of
World |
|
(3.0%) |
|
0.6% |
Total |
|
0.5% |
|
1.3% |
|
|
|
|
|
Cash Flow and Liquidity
Operating cash flow in the third quarter of 2024 was $141
million, compared to $134 million in the prior year, primarily as a
result of the favorable timing of accounts payable and improved
inventory management. In the third quarter of 2024, the Company
paid $33 million in dividends and executed share repurchases of
$100 million, resulting in a total of $345 million returned to
shareholders through dividends and share repurchases in the first
nine months of 2024. The Company had $296 million of cash and cash
equivalents as of September 30, 2024.
Goodwill Impairment
In the third quarter of 2024, the Company recorded a non-cash
charge for the impairment of goodwill of ($495) million net of tax
within the Orthodontic and Implant Solutions segment. The decline
in fair value for this reporting unit was driven by sustained
macroeconomic pressures, legislative trends impacting Byte,
weakened demand and competitive pressures in implants, and lower
expected volumes of lab materials.
2024 Outlook
The Company is revising its 2024 outlook due to market pressures
impacting U.S. equipment, legislative changes affecting the
direct-to-consumer aligner business model, and the voluntary
suspension of sales, marketing, and shipments of Byte Aligners and
Impression Kits. The revised outlook includes expected net sales in
the range of $3.79 billion to $3.83 billion, and organic sales are
expected to be in the range of (3.5%) to (2.5%) year-over-year.
Adjusted EPS is expected to be in the range of $1.82 to $1.86. The
outlook does not include potential adjustments or impacts of
additional Byte remediation measures or decisions made by the
Company.
Other 2024 outlook assumptions are included in the third quarter
2024 earnings presentation posted on the Investors section of the
Dentsply Sirona website at https://investor.dentsplysirona.com. The
Company does not provide forward-looking estimates on a GAAP basis
as certain information, which may include, but is not limited to,
restructuring charges, transformation-related costs, impairment
charges, certain tax adjustments, and other significant items, is
not available without unreasonable effort and cannot be reasonably
estimated. The exact amounts of these charges or credits are not
currently determinable but may be significant.
Conference Call/Webcast InformationDentsply
Sirona’s management team will host an investor conference call and
live webcast on November 7, 2024, at 8:30 am ET. A live webcast of
the investor conference call and a presentation related to the call
will be available on the Investors section of the Company’s website
at https://investor.dentsplysirona.com.
For those planning to participate on the call, please register
at
https://register.vevent.com/register/BI2ff7dbae32e04372ac0f7b84f2806925.
A webcast replay of the conference call will be available on the
Investors section of the Company’s website following the call.
About Dentsply SironaDentsply Sirona is the
world’s largest manufacturer of professional dental products and
technologies, with over a century of innovation and service to the
dental industry and patients worldwide. Dentsply Sirona develops,
manufactures, and markets a comprehensive solutions offering
including dental and oral health products as well as other
consumable medical devices under a strong portfolio of world-class
brands. Dentsply Sirona’s products provide innovative, high-quality
and effective solutions to advance patient care and deliver better
and safer dental care. Dentsply Sirona’s headquarters is located in
Charlotte, North Carolina. The Company’s shares are listed in the
United States on Nasdaq under the symbol XRAY. Visit
www.dentsplysirona.com for more information about Dentsply Sirona
and its products.
Contact
Information:Investors:Andrea DaleyVice President, Investor
Relations+1-704-591-8631InvestorRelations@dentsplysirona.com
Press:Marion Par-WeixlbergerVice President,
Public Relations & Corporate Communications+43 676
848414588marion.par-weixlberger@dentsplysirona.com
Forward-Looking Statements and
Associated Risks
All statements in this Press Release that do not directly and
exclusively relate to historical facts constitute “forward-looking
statements.” Such statements are subject to numerous assumptions,
risks, 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, including
those described in Part I, Item 1A, “Risk Factors” of the Company's
Annual Report on Form 10-K for the fiscal year ended December 31,
2023 and Part II, Item 1A, "Risk Factors" of the Company's
Quarterly Report on Form 10-Q for the fiscal quarter ended
September 30, 2024, and other factors which may be described in the
Company’s other filings with the Securities and Exchange Commission
(the “SEC”). No assurance can be given that any expectation,
belief, goal or plan set forth in any forward-looking statement can
or will be achieved, and readers are cautioned not to place undue
reliance on such statements which speak only as of the date they
are made. We do not undertake any obligation to update or release
any revisions to any forward-looking statement or to report any
events or circumstances after the date of this Press Release or to
reflect the occurrence of unanticipated events. Investors should
understand it is not possible to predict or identify all such
factors or risks. As such, you should not consider the risks
identified in the Company’s SEC filings to be a complete discussion
of all potential risks or uncertainties associated with an
investment in the Company.
DENTSPLY SIRONA INC. AND
SUBSIDIARIESCONSOLIDATED STATEMENTS OF
OPERATIONS(in millions, except per share
amounts)(unaudited)
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net sales |
$ |
951 |
|
|
$ |
947 |
|
|
$ |
2,888 |
|
|
$ |
2,953 |
|
Cost of products sold |
|
456 |
|
|
|
452 |
|
|
|
1,376 |
|
|
|
1,389 |
|
|
|
|
|
|
|
|
|
Gross profit |
|
495 |
|
|
|
495 |
|
|
|
1,512 |
|
|
|
1,564 |
|
|
|
|
|
|
|
|
|
Selling, general, and
administrative expenses |
|
390 |
|
|
|
372 |
|
|
|
1,204 |
|
|
|
1,204 |
|
Research and development
expenses |
|
40 |
|
|
|
46 |
|
|
|
123 |
|
|
|
141 |
|
Goodwill and intangible asset
impairments |
|
504 |
|
|
|
307 |
|
|
|
510 |
|
|
|
307 |
|
Restructuring and other
costs |
|
23 |
|
|
|
6 |
|
|
|
45 |
|
|
|
70 |
|
|
|
|
|
|
|
|
|
Operating loss |
|
(462 |
) |
|
|
(236 |
) |
|
|
(370 |
) |
|
|
(158 |
) |
|
|
|
|
|
|
|
|
Other income and
expenses: |
|
|
|
|
|
|
|
Interest expense, net |
|
18 |
|
|
|
19 |
|
|
|
53 |
|
|
|
61 |
|
Other (income) expense, net |
|
(2 |
) |
|
|
(5 |
) |
|
|
(10 |
) |
|
|
13 |
|
|
|
|
|
|
|
|
|
Loss before income taxes |
|
(478 |
) |
|
|
(250 |
) |
|
|
(413 |
) |
|
|
(232 |
) |
Provision (benefit) for income
taxes |
|
17 |
|
|
|
16 |
|
|
|
69 |
|
|
|
(28 |
) |
|
|
|
|
|
|
|
|
Net loss |
|
(495 |
) |
|
|
(266 |
) |
|
|
(482 |
) |
|
|
(204 |
) |
|
|
|
|
|
|
|
|
Less: Net loss attributable to
noncontrolling interest |
|
(1 |
) |
|
|
— |
|
|
|
(2 |
) |
|
|
(5 |
) |
|
|
|
|
|
|
|
|
Net loss attributable to
Dentsply Sirona |
$ |
(494 |
) |
|
$ |
(266 |
) |
|
$ |
(480 |
) |
|
$ |
(199 |
) |
|
|
|
|
|
|
|
|
Loss per common share
attributable to Dentsply Sirona: |
|
|
|
|
|
|
|
Basic |
$ |
(2.46 |
) |
|
$ |
(1.25 |
) |
|
$ |
(2.35 |
) |
|
$ |
(0.94 |
) |
Diluted |
$ |
(2.46 |
) |
|
$ |
(1.25 |
) |
|
$ |
(2.35 |
) |
|
$ |
(0.94 |
) |
|
|
|
|
|
|
|
|
Weighted average common shares
outstanding: |
|
|
|
|
|
|
|
Basic |
|
201.0 |
|
|
|
211.8 |
|
|
|
204.7 |
|
|
|
212.7 |
|
Diluted |
|
201.0 |
|
|
|
211.8 |
|
|
|
204.7 |
|
|
|
212.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DENTSPLY SIRONA INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE
SHEETS(in millions)(unaudited)
|
September 30, 2024 |
|
December 31, 2023 |
|
|
|
|
Assets |
|
|
|
Current Assets: |
|
|
|
Cash and cash equivalents |
$ |
296 |
|
$ |
334 |
Accounts and notes receivable-trade, net |
|
671 |
|
|
695 |
Inventories, net |
|
619 |
|
|
624 |
Prepaid expenses and other current assets |
|
335 |
|
|
320 |
Total Current Assets |
|
1,921 |
|
|
1,973 |
|
|
|
|
Property, plant, and equipment, net |
|
817 |
|
|
800 |
Operating lease right-of-use assets, net |
|
150 |
|
|
178 |
Identifiable intangible assets, net |
|
1,538 |
|
|
1,705 |
Goodwill |
|
1,937 |
|
|
2,438 |
Other noncurrent assets |
|
263 |
|
|
276 |
Total Assets |
$ |
6,626 |
|
$ |
7,370 |
|
|
|
|
Liabilities and
Equity |
|
|
|
Current Liabilities: |
|
|
|
Accounts payable |
$ |
297 |
|
$ |
305 |
Accrued liabilities |
|
798 |
|
|
749 |
Income taxes payable |
|
25 |
|
|
49 |
Notes payable and current portion of long-term debt |
|
422 |
|
|
322 |
Total Current Liabilities |
|
1,542 |
|
|
1,425 |
|
|
|
|
Long-term debt |
|
1,795 |
|
|
1,796 |
Operating lease liabilities |
|
103 |
|
|
125 |
Deferred income taxes |
|
193 |
|
|
228 |
Other noncurrent liabilities |
|
503 |
|
|
502 |
Total Liabilities |
|
4,136 |
|
|
4,076 |
|
|
|
|
Total Equity |
|
2,490 |
|
|
3,294 |
|
|
|
|
Total Liabilities and
Equity |
$ |
6,626 |
|
$ |
7,370 |
|
|
|
|
DENTSPLY SIRONA INC. AND
SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH
FLOWS(in millions)(unaudited)
|
Nine Months Ended September 30, |
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
Cash flows from
operating activities: |
|
|
|
Net loss |
$ |
(482 |
) |
|
$ |
(204 |
) |
|
|
|
|
Adjustments to reconcile net
loss to net cash provided by operating activities: |
|
|
|
Depreciation |
|
99 |
|
|
|
99 |
|
Amortization of intangible assets |
|
162 |
|
|
|
159 |
|
Goodwill and intangible asset impairments |
|
510 |
|
|
|
307 |
|
Deferred income taxes |
|
(20 |
) |
|
|
(107 |
) |
Stock-based compensation expense |
|
35 |
|
|
|
33 |
|
Other non-cash expense |
|
36 |
|
|
|
29 |
|
Changes in operating assets and liabilities: |
|
|
|
Accounts and notes receivable-trade, net |
|
19 |
|
|
|
(31 |
) |
Inventories, net |
|
2 |
|
|
|
(45 |
) |
Prepaid expenses and other current assets |
|
61 |
|
|
|
(52 |
) |
Other noncurrent assets |
|
(6 |
) |
|
|
(4 |
) |
Accounts payable |
|
(6 |
) |
|
|
(10 |
) |
Accrued liabilities |
|
(17 |
) |
|
|
16 |
|
Income taxes |
|
(15 |
) |
|
|
(6 |
) |
Other noncurrent liabilities |
|
(4 |
) |
|
|
33 |
|
Net cash provided by
operating activities |
|
374 |
|
|
|
217 |
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
Capital expenditures |
|
(129 |
) |
|
|
(109 |
) |
Cash received on derivative
contracts |
|
— |
|
|
|
39 |
|
Cash paid on derivative
contracts |
|
(12 |
) |
|
|
— |
|
Other investing
activities |
|
1 |
|
|
|
1 |
|
Net cash used in
investing activities |
|
(140 |
) |
|
|
(69 |
) |
|
|
|
|
Cash flows from
financing activities: |
|
|
|
Cash paid for treasury
stock |
|
(250 |
) |
|
|
(150 |
) |
Proceeds on short-term
borrowings |
|
99 |
|
|
|
68 |
|
Cash dividends paid |
|
(95 |
) |
|
|
(86 |
) |
Proceeds from long-term
borrowings |
|
— |
|
|
|
2 |
|
Repayments on long-term
borrowings |
|
(8 |
) |
|
|
(6 |
) |
Other financing activities,
net |
|
(10 |
) |
|
|
(7 |
) |
Net cash used in
financing activities |
|
(264 |
) |
|
|
(179 |
) |
Effect of exchange rate
changes on cash and cash equivalents |
|
(8 |
) |
|
|
(25 |
) |
Net decrease in cash and cash
equivalents |
|
(38 |
) |
|
|
(56 |
) |
Cash and cash equivalents at
beginning of period |
|
334 |
|
|
|
365 |
|
Cash and cash equivalents at
end of period |
$ |
296 |
|
|
$ |
309 |
|
|
Non-GAAP Financial Measures
In addition to results determined in accordance with U.S.
generally accepted accounting principles (“US GAAP”), the Company
provides certain measures in this press release, described below,
which are not calculated in accordance with US GAAP and therefore
represent Non-GAAP measures. These Non-GAAP measures may differ
from those used by other companies and should not be considered in
isolation from, or as a substitute for, measures of financial
performance prepared in accordance with US GAAP. These Non-GAAP
measures are used by the Company to measure its performance and may
differ from those used by other companies.
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 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, 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, related ongoing legal matters and associated
remediation activities which primarily include legal, accounting
and other professional service fees, as well as turnover and other
employee-related costs.
(3) Goodwill and intangible asset
impairments. These adjustments include charges related to goodwill
and intangible asset impairments.
(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, 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 income 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 of any of the above adjustments on 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) per diluted share (adjusted EPS) is
computed by dividing adjusted earnings (loss) attributable to
Dentsply Sirona shareholders by the diluted weighted average number
of common shares outstanding.
Adjusted Free Cash Flow and 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.
DENTSPLY SIRONA INC. AND SUBSIDIARIES(In millions,
except percentages)(unaudited) |
|
A reconciliation
of reported net sales to organic sales by geographic region is as
follows: |
|
|
|
Three Months Ended September 30, 2024 |
|
Q3 2024 Change |
|
Three Months Ended September 30, 2023 |
(in
millions, except percentages) |
|
U.S. |
Europe |
ROW |
Total |
|
U.S. |
Europe |
ROW |
Total |
|
U.S. |
Europe |
ROW |
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
|
$ |
374 |
$ |
347 |
$ |
230 |
$ |
951 |
|
5.0 |
% |
(1.8 |
%) |
(3.0 |
%) |
0.5 |
% |
|
$ |
356 |
$ |
354 |
$ |
237 |
$ |
947 |
Foreign exchange impact |
|
|
|
|
|
|
(0.1 |
%) |
0.2 |
% |
(3.6 |
%) |
(0.8 |
%) |
|
|
|
|
|
Organic
sales |
|
|
|
|
|
|
5.1 |
% |
(2.0 |
%) |
0.6 |
% |
1.3 |
% |
|
|
|
|
|
Percentages are based on actual values and may
not reconcile due to rounding.
A reconciliation
of reported net sales to organic sales by segment is as
follows: |
|
|
|
Three Months Ended September 30, 2024 |
|
Q3 2024 Change |
|
Three Months Ended September 30, 2023 |
(in
millions, except percentages) |
|
Connected Technology Solutions |
Essential Dental Solutions |
Orthodontic and Implant Solutions |
Wellspect Healthcare |
Total |
|
Connected Technology Solutions |
Essential Dental Solutions |
Orthodontic and Implant Solutions |
Wellspect Healthcare |
Total |
|
Connected Technology Solutions |
Essential Dental Solutions |
Orthodontic and Implant Solutions |
Wellspect Healthcare |
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
|
$ |
269 |
$ |
369 |
$ |
241 |
$ |
72 |
$ |
951 |
|
(2.3 |
%) |
6.6 |
% |
(4.6 |
%) |
(0.4 |
%) |
0.5 |
% |
|
$ |
276 |
$ |
347 |
$ |
252 |
$ |
72 |
$ |
947 |
Foreign exchange impact |
|
|
|
|
|
|
|
(0.9 |
%) |
(0.9 |
%) |
(0.7 |
%) |
(0.4 |
%) |
(0.8 |
%) |
|
|
|
|
|
|
Organic
sales |
|
|
|
|
|
|
|
(1.4 |
%) |
7.5 |
% |
(3.9 |
%) |
— |
% |
1.3 |
% |
|
|
|
|
|
|
Percentages are based on actual values and may
not reconcile due to rounding.
DENTSPLY SIRONA INC. AND SUBSIDIARIES(In millions,
except percentages)(unaudited) |
|
The Company’s
segment adjusted operating income for the three and nine months
ended September 30, 2024 and 2023 was as follows: |
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
(in millions) |
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
Connected Technology
Solutions |
|
$ |
16 |
|
|
$ |
22 |
|
|
$ |
21 |
|
|
$ |
54 |
|
Essential Dental
Solutions |
|
|
132 |
|
|
|
115 |
|
|
|
372 |
|
|
|
365 |
|
Orthodontic and Implant
Solutions |
|
|
24 |
|
|
|
31 |
|
|
|
108 |
|
|
|
129 |
|
Wellspect Healthcare |
|
|
26 |
|
|
|
26 |
|
|
|
73 |
|
|
|
65 |
|
Segment adjusted operating income |
|
|
198 |
|
|
|
194 |
|
|
|
574 |
|
|
|
613 |
|
|
|
|
|
|
|
|
|
|
Reconciling items
expense (income): |
|
|
|
|
|
|
|
|
All other (a) |
|
|
79 |
|
|
|
64 |
|
|
|
227 |
|
|
|
235 |
|
Goodwill and intangible asset impairments |
|
|
504 |
|
|
|
307 |
|
|
|
510 |
|
|
|
307 |
|
Restructuring and other costs |
|
|
23 |
|
|
|
6 |
|
|
|
45 |
|
|
|
70 |
|
Interest expense, net |
|
|
18 |
|
|
|
19 |
|
|
|
53 |
|
|
|
61 |
|
Other (income) expense, net |
|
|
(2 |
) |
|
|
(5 |
) |
|
|
(10 |
) |
|
|
13 |
|
Amortization of intangible assets |
|
|
54 |
|
|
|
53 |
|
|
|
162 |
|
|
|
159 |
|
Loss before income taxes |
|
$ |
(478 |
) |
|
$ |
(250 |
) |
|
$ |
(413 |
) |
|
$ |
(232 |
) |
(a) Includes unassigned corporate headquarters
costs.
DENTSPLY SIRONA INC. AND SUBSIDIARIES(In millions,
except percentages)(unaudited) |
|
For the three
months ended September 30, 2024, a reconciliation of selected items
as reported in the Condensed Consolidated Statements of Operations
to adjusted Non-GAAP items is as follows: |
|
(in
millions, except percentages and per share data) |
|
Gross Profit |
|
Operating (Loss) Income |
|
Net (Loss) Income Attributable to Dentsply Sirona (a) |
|
Diluted EPS |
GAAP |
|
$ |
495 |
|
$ |
(462 |
) |
|
$ |
(494 |
) |
|
$ |
(2.46 |
) |
Non-GAAP Adjustments: |
|
|
|
|
|
|
|
|
Amortization of Purchased Intangible Assets |
|
|
31 |
|
|
54 |
|
|
|
40 |
|
|
|
0.20 |
|
Restructuring-Related Charges and Other Costs |
|
|
— |
|
|
39 |
|
|
|
29 |
|
|
|
0.15 |
|
Goodwill and Intangible Asset Impairments |
|
|
— |
|
|
504 |
|
|
|
495 |
|
|
|
2.46 |
|
Business Combination-Related Costs and Fair Value Adjustments |
|
|
1 |
|
|
1 |
|
|
|
1 |
|
|
|
— |
|
Income Tax-Related Adjustments |
|
|
— |
|
|
— |
|
|
|
30 |
|
|
|
0.15 |
|
Adjusted
Non-GAAP |
|
$ |
527 |
|
$ |
136 |
|
|
$ |
101 |
|
|
$ |
0.50 |
|
GAAP Margin |
|
|
|
|
(48.5 |
%) |
|
|
|
|
Adjusted Non-GAAP Margin |
|
|
|
|
14.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding used in calculating diluted GAAP net loss
per common share |
|
|
201.0 |
|
Weighted average
common shares outstanding used in calculating diluted Non-GAAP net
income per common share |
|
|
201.5 |
|
(a) The tax
expense on the Non-GAAP adjustments totals $3 million which is
inclusive of the $30 million income tax-related adjustment
above. |
|
|
Percentages are based on actual values and may
not reconcile due to rounding.
DENTSPLY SIRONA INC. AND SUBSIDIARIES(In millions,
except percentages)(unaudited) |
|
For the three
months ended September 30, 2023, a reconciliation of selected items
as reported in the Condensed Consolidated Statements of Operations
to adjusted Non-GAAP items is as follows: |
|
(in
millions, except percentages and per share data) |
|
Gross Profit |
|
Operating (Loss) Income |
|
Net (Loss) Income Attributable to Dentsply Sirona (a) |
|
Diluted EPS |
GAAP |
|
$ |
495 |
|
$ |
(236 |
) |
|
$ |
(266 |
) |
|
$ |
(1.25 |
) |
Non-GAAP Adjustments: |
|
|
|
|
|
|
|
|
Amortization of Purchased Intangible Assets |
|
|
30 |
|
|
53 |
|
|
|
40 |
|
|
|
0.19 |
|
Restructuring-Related Charges and Other Costs |
|
|
6 |
|
|
8 |
|
|
|
6 |
|
|
|
0.03 |
|
Goodwill and Intangible Asset Impairments |
|
|
— |
|
|
307 |
|
|
|
302 |
|
|
|
1.42 |
|
Business Combination-Related Costs and Fair Value Adjustments |
|
|
— |
|
|
3 |
|
|
|
2 |
|
|
|
0.01 |
|
Income Tax-Related Adjustments |
|
|
— |
|
|
— |
|
|
|
20 |
|
|
|
0.09 |
|
Adjusted
Non-GAAP |
|
$ |
531 |
|
$ |
135 |
|
|
$ |
104 |
|
|
$ |
0.49 |
|
GAAP Margin |
|
|
|
|
(24.9 |
%) |
|
|
|
|
Adjusted Non-GAAP Margin |
|
|
|
|
14.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding used in calculating diluted GAAP net loss
per common share |
|
|
211.8 |
|
Weighted average
common shares outstanding used in calculating diluted Non-GAAP net
income per common share |
|
|
213.0 |
|
(a) The tax
expense on the Non-GAAP adjustments totals $1 million, which is
inclusive of the $20 million income tax-related adjustment
above. |
|
|
Percentages are based on actual values and may not reconcile due
to rounding.
DENTSPLY SIRONA INC. AND SUBSIDIARIES(In millions,
except percentages)(unaudited) |
|
A reconciliation
of reported net (loss) income attributable to Dentsply Sirona to
adjusted EBITDA and margin for the three months ended
September 30, 2024 and 2023 is as follows: |
|
|
|
Three Months Ended September 30, |
(in millions, except percentages) |
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
Net loss attributable
to Dentsply Sirona |
|
$ |
(494 |
) |
|
$ |
(266 |
) |
Interest expense, net |
|
|
18 |
|
|
|
19 |
|
Income tax expense |
|
|
17 |
|
|
|
16 |
|
Depreciation(1) |
|
|
31 |
|
|
|
31 |
|
Amortization of purchased intangible assets |
|
|
54 |
|
|
|
53 |
|
Restructuring-related charges and other costs |
|
|
39 |
|
|
|
8 |
|
Goodwill and intangible asset impairments |
|
|
504 |
|
|
|
307 |
|
Business combination-related costs and fair value adjustments |
|
|
1 |
|
|
|
3 |
|
Fair value and credit risk adjustments |
|
|
— |
|
|
|
— |
|
Adjusted
EBITDA(2) |
|
$ |
170 |
|
|
$ |
171 |
|
|
|
|
|
|
Net sales |
|
$ |
951 |
|
|
$ |
947 |
|
Adjusted EBITDA
margin |
|
|
17.9 |
% |
|
|
18.3 |
% |
(1) Excludes those depreciation-related amounts which were
included as part of the business combination-related adjustments
and Restructuring-related charges and other costs.(2) Adjusted
EBITDA for 2023 has been updated to reflect the reclassification of
$1 million in certain gains from hedging instruments from Interest
expense to Other expense (income) in order to conform with current
year presentation.Percentages are based on actual values and may
not reconcile due to rounding.
A reconciliation
of adjusted free cash flow conversion for the three months ended
September 30, 2024 and 2023 is as follows: |
|
|
|
Three Months Ended September 30, |
(in millions, except percentages) |
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
Net cash provided by operating
activities |
|
$ |
141 |
|
|
$ |
134 |
|
Capital expenditures |
|
|
(43 |
) |
|
|
(37 |
) |
Adjusted free cash flow |
|
$ |
98 |
|
|
$ |
97 |
|
|
|
|
|
|
Adjusted net income |
|
$ |
101 |
|
|
$ |
104 |
|
Adjusted free cash
flow conversion |
|
|
97 |
% |
|
|
93 |
% |
Percentages are based on actual values and may not reconcile due
to rounding.
DENTSPLY SIRONA (NASDAQ:XRAY)
Historical Stock Chart
From Nov 2024 to Dec 2024
DENTSPLY SIRONA (NASDAQ:XRAY)
Historical Stock Chart
From Dec 2023 to Dec 2024