CHARLOTTE, N.C., Aug. 02, 2019 (GLOBE NEWSWIRE) -- DENTSPLY SIRONA Inc. (Nasdaq: XRAY), the Dental Solutions Company, today announced its financial results for the three months ended June 30, 2019.

Second Quarter 2019 Financial Results

Reported net sales of $1,009.4 million declined 3.1% in the second quarter of 2019 and were up 3.0% on an internal sales growth basis. In the United States, revenues decreased by 2.6% and decreased by 1.5% on an internal basis. Rest of World region revenues declined 6.9% on a reported basis but increased 2.4% on an internal sales growth basis. European regions revenues declined 1.1% with foreign exchange accounting for 6.9% of the European revenue decline. On an internal sales growth basis, European revenues increased by 7.1%.

Net income attributable to Dentsply Sirona for the second quarter of 2019 was $36.4 million, or $0.16 per diluted share, compared to a loss of $1,122.0 million, or $4.98 per basic share in the second quarter of 2018. On an adjusted basis, excluding certain items, non-US GAAP net earnings per diluted share were $0.66 compared to $0.60 in the second quarter of 2018. A reconciliation of the non-US GAAP measures to earnings per share calculated on a US GAAP basis is provided in the attached tables.

Don Casey, Chief Executive Officer, commented, “It was a solid quarter as we continue to deliver on the core elements of our restructuring plan of growth, margin improvement and organization simplification. Second quarter internal growth of three percent is in line with the target we outlined last November. Our new product lineup is set to drive continued growth in the back half of the year. We are operating in our new simplified structure that is improving efficiency and enabling us to achieve approximately a one thousand reduction in headcount over the past eight months. In the second quarter, gross margin improved 130 basis points compared to prior year, and our adjusted operating income margin expanded to over 20%. Our results demonstrate that solid sales growth and disciplined expense management drive significant operating leverage. As a result of the robust financial performance in the quarter, today we are increasing our Adjusted EPS guidance for 2019.”

Mr. Casey continued, “There is still a tremendous amount of work to be done as we focus on continuing to deliver growth and margin improvement. We would like to thank all our employees for their effort in helping to drive this favorable result. We are fully confident that this team will continue to execute on our program, and that we can deliver significant value for our shareholders as we move forward."

2019 Guidance ^[2]

The Company increased 2019 guidance range for Adjusted Earnings Per Share to $2.35 to $2.45, up from the previous range of $2.30 to $2.40. The 2019 guidance incorporates the following assumptions:

• Reported revenue guidance range of $3.95 to $4.05 billion.
• Internal sales growth in the range of 4% to 5%.
• Portfolio shaping initiatives and M&A reduce 2019 revenues by approximately $60 million.
• At current exchange rates, currency is anticipated to be a 2.5% headwind to 2019 revenues, reducing 2019 reported revenues by approximately $100 million.
• Adjusted operating income margin of 18% to 19%, up from previous adjusted operating margin guidance of 17% to 18%.
• Operating expenses below 2018 levels.
• Non-US GAAP effective tax rate of 24.75%, up from previous guidance of 24.0%.
• 2019 guidance does not incorporate any additional 2019 share repurchase activity.

^[1] Non-US GAAP adjusted EPS, net sales excluding precious metal, constant currency growth and internal growth and results are non-US GAAP financial measures that exclude certain items. Please refer to the disclosure at the end of the release. For a reconciliation of constant currency growth to internal revenue growth please see supplemental tables at the end of the release.

^[2] Our guidance is presented on a non-US GAAP basis, as it does not include the impact of prospective acquisitions, acquisitions announced but not yet closed and other non-US GAAP items, including restructuring costs, many of which are difficult to predict. Therefore, we cannot provide a full reconciliation of these measures. The Company is unable at this time to address the probable significance of all of the unavailable information.

About Dentsply Sirona

Dentsply Sirona is the world’s largest manufacturer of professional dental products and technologies, with a 132-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.