Dentsply Sirona Reports First Quarter 2021 Results
- Revenue increased 17.5% to $1,027 million. Organic revenue increased 12.1%
- GAAP EPS increased to $0.53 vs loss of ($0.63) in 2020
- Non-GAAP EPS increased 67.4% to $0.72 vs $0.43 in 2020
- GAAP operating income increased to $154 million vs loss of ($125) million in 2020
- Non-GAAP operating income increased 67.2% to $219 million vs $131 million in 2020
- Operating cash flows increased to $49 million vs loss of ($10) million in 2020
- Raises FY21 Non-GAAP EPS outlook to $2.75 to $2.90 from $2.60 to $2.80
CHARLOTTE, N.C., May 06, 2021 (GLOBE NEWSWIRE) -- DENTSPLY SIRONA Inc. (“Dentsply Sirona” or the "Company") (Nasdaq: XRAY), The Dental Solutions Company, today announced its financial results for the first quarter of 2021.
First quarter net sales of $1,027 million increased 17.5%, compared to $874 million in the first quarter of 2020. Net income for the first quarter of 2021 was $117 million, or $0.53 per diluted share, compared to a net loss of $140 million, or ($0.63) per diluted share in the first quarter of 2020. On an adjusted basis Non-GAAP net earnings per diluted share grew 67.4% to $0.72 compared to $0.43 in the first quarter of 2020. A reconciliation of the Non-GAAP measures to earnings per share calculated on a GAAP basis is provided in the attached table.
Don Casey, Chief Executive Officer, commented “We are pleased with our strong first quarter performance. The global dental market has demonstrated resilience with attractive underlying fundamentals. As a result, we are cautiously optimistic about the continued recovery in the category. We remain committed to executing on our restructuring goals while increasing focus on investing for revenue growth. Our revised 2021 outlook reflects confidence in our team's ability to execute on growth initiatives and capitalize on the recovery.”
Q1 21 Summary Results (GAAP)
(in millions, except per share amount and percentages) | Q1 21 | Q1 20 | YoY | ||||||
Net Sales | 1,027 | 874 | 17.5 | % | |||||
Operating Income (loss) | 154 | (125 | ) | NM | |||||
Operating Income (loss) % | 15.0 | % | (14.3 | %) | |||||
Diluted EPS | 0.53 | (0.63 | ) | NM | |||||
NM - not meaningful
Q1 21 Summary Results (Non-GAAP)[1]
(in millions, except per share amount and percentages) | Q1 21 | Q1 20 | YoY | ||||||
Net Sales | 1,027 | 874 | 17.5 | % | |||||
Organic Sales Growth % | 12.1 | % | |||||||
Operating Income | 219 | 131 | 67.2 | % | |||||
Operating Income % | 21.3 | % | 15.0 | % | |||||
Diluted EPS | 0.72 | 0.43 | 67.4 | % | |||||
[1] Organic sales growth, Non-GAAP operating income, and Non-GAAP 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.
Segment Results
Consumables
First quarter 2021 net sales were $430 million, up 21.5% versus prior year. On an organic basis, net sales increased by 21.2% as compared to prior year. Currency favorably impacted sales by 4.6%, while divestitures and discontinued products negatively impacted sales by 4.3%. Sales across all product categories rebounded in the quarter.
Technologies & Equipment
First quarter 2021 net sales were $597 million, up 14.8% versus prior year. On an organic basis, net sales increased by 5.8% as compared to prior year. Currency favorably impacted sales by 5.7%, acquisitions increased sales by 8.6%, and divestitures and discontinued products negatively impacted sales by 5.3%. Sales in Equipment & Instruments and Implants rebounded in the quarter. Digital Dentistry decreased due to a strong 2020 CAD/CAM comp, partially offset by growth in clear aligners.
Cash Flow and Liquidity
Operating cash flow in the first quarter of 2021 was $49 million, as compared to ($10) million in the prior year. In the first quarter, the Company paid $22 million in dividends and executed $90 million in share repurchases, for a total of $112 million returned to shareholders. The Company also funded the Datum Dental, Ltd. acquisition for $92 million. At March 31, 2021, the Company had $318 million of cash available on its balance sheet.
Revised Fiscal Year 2021 Outlook
Based on the results of the first quarter and the continued gradual recovery of the global dental market, we have revised the fiscal year 2021 outlook. We now expect revenues to be in the $4.1B to $4.3B range, up approximately 23-28% on a reported basis and 18-25% on an organic basis. We are increasing our Non-GAAP EPS outlook for FY2021 to $2.75 to $2.90 from $2.60 to $2.80.
Further revised 2021 planning assumptions are included in the Q1 FY2021 Earnings Presentation posted at www.dentsplysirona.com. The Company does not provide forward-looking estimates on a GAAP basis as certain information is not available and cannot be reasonably estimated.
Recent Announcements & Additional Highlights
- Dentsply Sirona World 2021 - After a successful virtual DS World in 2020, the “Ultimate Dental Experience” will once again welcome guests in Las Vegas, Nevada. The event will take place September 23-25, 2021, at Caesars Forum and will also include a virtual option for those who would like to take part in the experience but are not comfortable meeting in-person or cannot travel to the venue. This year’s meeting will feature a choice of educational tracks with pertinent information to help ensure that attendees are prepared for current challenges and ready to take advantage of the opportunities that digital dentistry offers.
- Environmental, Social and Governance ("ESG") Impact - As a global leader in the dental health sector, we are striving to become an ESG leader. The objective is to use our scale and global reach to improve the quality and access to healthcare throughout the world and focus on ways in which we can become a more sustainable business through investment and innovation. To underpin this, we are evolving our sustainability strategy and improving our disclosures on a range of key ESG metrics. In April 2021 we launched our Sustainability web site and published our Environmental Scorecard and Sustainability Fact Sheet. Further information on our ESG efforts can be found on our Sustainability web site located in the investor relations section of www.dentsplysirona.com.
Conference Call/Webcast Information
Dentsply Sirona’s management team will host an investor conference call and live webcast on May 6, 2021 at 8:30 am ET. A presentation will also be available on www.dentsplysirona.com in the Investors section.
Investors can access the webcast via a link on Dentsply Sirona’s web site at www.dentsplysirona.com. For those planning to participate on the call, please dial +1-877-370-7637 for domestic calls, or +1-629-228-0723 for international calls. The Conference ID # is 3396419. A replay of the conference call will be available online on the Dentsply Sirona web site, and a dial-in replay will be available for one week following the call at +1-855-859-2056 (for domestic calls) or +1-404-537-3406 (for international calls), replay passcode # 3396419.
About Dentsply Sirona
Dentsply Sirona is the world’s largest manufacturer of professional dental products and technologies, with a 134-year history 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. As The Dental Solutions Company, Dentsply Sirona’s products provide innovative, high-quality and effective solutions to advance patient care and deliver better, safer and faster dentistry. The Company’s shares of common stock 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:
Kari Dixon
Vice President, Financial Planning & Analysis
+1-704-805-1281
Kari.Dixon@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.” These statements represent current expectations and beliefs, and no assurance can be given that the results described in such statements will be achieved. 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. Furthermore, many of these risks and uncertainties are currently amplified by and may continue to be amplified by or may, in the future, be amplified by, the novel coronavirus (“COVID-19”) pandemic and the impact of varying private and governmental responses that affect our customers, employees, vendors and the economies and communities where they operate. For a written description of these factors, see the section titled “Risk Factors” in Dentsply Sirona’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020 and any updating information in subsequent SEC filings including the Company's Quarterly Report on Form 10-Q for the quarterly period ending March 31, 2021. 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.
DENTSPLY SIRONA INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
(In millions, except per share amounts)
Three Months Ended March 31, | |||||||
2021 | 2020 | ||||||
Net sales | $ | 1,027 | $ | 874 | |||
Cost of products sold | 448 | 406 | |||||
Gross profit | 579 | 468 | |||||
Selling, general, and administrative expenses | 385 | 359 | |||||
Research and development expenses | 37 | 34 | |||||
Goodwill impairment | — | 157 | |||||
Restructuring and other costs | 3 | 43 | |||||
Operating income (loss) | 154 | (125 | ) | ||||
Net interest and other expense (income) | 5 | 5 | |||||
Income (loss) before income taxes | 149 | (130 | ) | ||||
Provision for income taxes | 32 | 10 | |||||
Net income (loss) | 117 | (140 | ) | ||||
Less: Net income attributable to noncontrolling interest | — | — | |||||
Net income (loss) attributable to Dentsply Sirona | $ | 117 | $ | (140 | ) | ||
Net income (loss) per common share attributable to Dentsply Sirona: | |||||||
Basic | $ | 0.53 | $ | (0.63 | ) | ||
Diluted | $ | 0.53 | $ | (0.63 | ) | ||
Weighted average common shares outstanding: | |||||||
Basic | 218.8 | 220.9 | |||||
Diluted | 219.9 | 220.9 | |||||
DENTSPLY SIRONA INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
(In millions)
March 31, 2021 | December 31, 2020 | ||||||
Assets | |||||||
Current Assets: | |||||||
Cash and cash equivalents | $ | 318 | $ | 438 | |||
Accounts and notes receivables-trade, net | 643 | 673 | |||||
Inventories, net | 500 | 466 | |||||
Prepaid expenses and other current assets | 235 | 214 | |||||
Total Current Assets | 1,696 | 1,791 | |||||
Property, plant, and equipment | 758 | 791 | |||||
Operating lease right-of-use assets, net | 168 | 176 | |||||
Identifiable intangible assets, net | 2,461 | 2,504 | |||||
Goodwill | 3,952 | 3,986 | |||||
Other noncurrent assets | 102 | 94 | |||||
Total Assets | $ | 9,137 | $ | 9,342 | |||
Liabilities and Equity | |||||||
Current Liabilities: | |||||||
Accounts payable | $ | 283 | $ | 305 | |||
Accrued liabilities | 557 | 653 | |||||
Income taxes payable | 44 | 60 | |||||
Notes payable and current portion of long-term debt | 328 | 299 | |||||
Total Current Liabilities | 1,212 | 1,317 | |||||
Long-term debt | 1,923 | 1,978 | |||||
Operating lease liabilities | 125 | 130 | |||||
Deferred income taxes | 411 | 393 | |||||
Other noncurrent liabilities | 536 | 554 | |||||
Total Liabilities | 4,207 | 4,372 | |||||
Total Equity | 4,930 | 4,970 | |||||
Total Liabilities and Equity | $ | 9,137 | $ | 9,342 | |||
DENTSPLY SIRONA INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
(In millions)
Three Months Ended March 31, | |||||||
2021 | 2020 | ||||||
Cash flows from operating activities: | |||||||
Net income (loss) | $ | 117 | $ | (140 | ) | ||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||
Depreciation | 32 | 32 | |||||
Amortization of intangible assets | 56 | 47 | |||||
Amortization of deferred financing costs | 2 | 1 | |||||
Deferred income taxes | (3 | ) | (8 | ) | |||
Stock based compensation expense | 13 | 10 | |||||
Goodwill impairment | — | 157 | |||||
Indefinite-lived intangible asset impairment | — | 39 | |||||
Other non-cash expense | 17 | 10 | |||||
Gain on sale of non-strategic businesses and product lines | (13 | ) | — | ||||
Changes in operating assets and liabilities, net of acquisitions: | |||||||
Accounts and notes receivable-trade, net | 11 | 53 | |||||
Inventories, net | (50 | ) | (57 | ) | |||
Prepaid expenses and other current assets | (27 | ) | (27 | ) | |||
Other noncurrent assets | (13 | ) | (7 | ) | |||
Accounts payable | (17 | ) | (29 | ) | |||
Accrued liabilities | (81 | ) | (95 | ) | |||
Income taxes | (8 | ) | 7 | ||||
Other noncurrent liabilities | 13 | (3 | ) | ||||
Net cash provided by (used in) operating activities | 49 |
By: GlobeNewswire
- 06 May 2021
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