- Fourth quarter revenues of $304.9
million, up 18.0% local currency* and 5.1% reported
compared to prior year.
- Fourth quarter diluted earnings per
share of $0.80 on a GAAP basis compared to $0.76 in the prior year.
Fourth quarter non-GAAP adjusted EPS* of $1.12, up
20.4% compared to $0.93 in the prior year.
- On September 15, 2015, Sirona and
DENTSPLY International Inc. entered into an Agreement and Plan of
Merger expected to close in the first calendar quarter of
2016.
Sirona (Nasdaq:SIRO), the dental technology leader, today
announced its financial results for the quarter and year ended
September 30, 2015.
Fourth Quarter Fiscal 2015 vs. Fourth Quarter Fiscal 2014
Financial Results
Revenue was $304.9 million, an increase of $14.9 million or up
5.1% (and up 18.0% on a local currency basis). In local currencies,
internally generated sales increased 14.1% and acquisition growth
was 3.9%. The Company's business segments performed as follows:
Instruments increased 15.9% (up 35.1% on a local currency basis),
CAD/CAM Systems increased 11.1% (up 23.2% on a local currency basis
with internally generated sales growth of 12.2% and acquisition
growth of 11.0%), Imaging Systems increased 2.2% (up 11.5% on a
local currency basis), and Treatment Centers decreased 4.8% (up
11.7% on a local currency basis).
Revenue in the United States increased 34.2% and revenues
outside the United States decreased 4.4% (up 12.6% local currency).
U.S. revenues generated internal sales growth of 18.4% driven by
strong demand for our CAD/CAM Systems and Imaging products and
acquisition growth of 15.8%. Sales growth in international markets
was driven by strength in Europe and tender business in the Middle
East.
Gross profit was $166.9 million, up $7.0 million. Gross profit
margin was 54.7% in the fourth quarter of Fiscal 2015, compared to
55.1% in the prior year. The change in gross profit margin as a
percent of sales was mainly driven by product and regional sales
mix.
Net income attributable to Sirona Dental Systems, Inc. for the
fourth quarter of 2015 was $45.4 million, or $0.80 per diluted
share, versus $42.7 million, or $0.76 per diluted share in the
prior year period. Non-GAAP adjusted earnings per diluted share for
the fourth quarter of 2015 was $1.12 compared to $0.93 in the prior
year quarter, or an increase of 20.4%. A reconciliation of the
non-GAAP measure to earnings per share calculated on a GAAP basis
is provided in the attached table.
At September 30, 2015, the Company had cash and cash equivalents
of $517.8 million and total debt of $80.2 million, resulting in net
cash of $437.6 million. This compares to net cash of $303.3 million
at September 30, 2014.
Jeffrey Slovin, President and CEO of Sirona commented: “We
achieved very strong fiscal fourth quarter results driven by double
digit growth in each one of our segments. We generated 14% organic
revenue growth in local currencies driven by robust growth in the
U.S., Europe and Rest of World. We delivered strong earnings
leverage, with over 20% adjusted EPS growth.”
Mr. Slovin continued: “Our strong fourth quarter was the
culmination of an outstanding fiscal 2015. Sirona delivered on its
most challenging strategic objectives throughout the year including
a record IDS, a highly successful CEREC 30, and signed a definitive
agreement to merge with DENTSPLY, the world’s largest manufacturer
of consumable dental products for the professional dental market.
We firmly believe we have put the company in the best position in
its history for building long-term shareholder value.”
Fiscal 2015 vs. Fiscal 2014 Financial Results
Revenue was $1,161.3 million, a decrease of $9.8 million or down
0.8% (and up 9.8% on a local currency basis). In local currencies,
internally generated sales increased 8.8% and acquisition growth
was 1.0%. The Company's business segments performed as follows:
CAD/CAM Systems increased 2.1% (up 12.1% on a local currency basis
with internally generated sales of 9.4% and acquisition growth of
2.7%), Instruments decreased 1.6% (up 14.1% on a local currency
basis), Imaging Systems decreased 2.1% (up 4.9% on a local currency
basis), and Treatment Centers decreased 3.8% (up 11.8% on a local
currency basis).
Revenue in the United States increased 9.2%, and revenues
outside the United States decreased -5.1% (up 10.0% local
currency). U.S. revenues generated internal sales growth of 6.0% as
a result of strong demand for our CAD/CAM Systems and Imaging
products. Sales growth in international markets was driven by
strength in both Europe and Rest of World.
Gross profit was $648.2 million, up $6.5 million. Gross profit
margin was 55.8% in Fiscal 2015, compared to 54.8% in the prior
year. The improvement in the gross profit margin was mainly due to
the benefit of foreign exchange effects as well as reduced
amortization and depreciation expense resulting from the step-up to
fair values of tangible and intangible assets.
Net income attributable to Sirona Dental Systems, Inc. for
Fiscal 2015 was $186.2 million, or $3.30 per diluted share, versus
$175.7 million, or $3.13 per diluted share in the prior year.
Non-GAAP adjusted earnings per diluted share for Fiscal 2015 was
$3.98 compared to $3.67 in the prior fiscal year, or an increase of
8.4%. A reconciliation of the non-GAAP measure to earnings per
share calculated on a GAAP basis is provided in the attached
table.
Merger Update
On September 15, 2015, Sirona and DENTSPLY International Inc.
entered into an Agreement and Plan of Merger and announced a merger
of equals between the two companies. Mr. Slovin commented, "We are
actively pursuing the regulatory and shareholder approvals required
to complete the merger and expect the transaction to close in the
first calendar quarter of 2016. The merger creates THE Dental
Solutions Company and best positions us to build long-term
shareholder value.”
Conference Call/Webcast Information
Sirona will hold a conference call to discuss its financial
results at 8:30 a.m. Eastern Time on November 20, 2015. The
teleconference can be accessed by calling +1-855-793-2460
(domestic) or +1-631-485-4924 (international) using passcode #
60880988. The webcast will be available via the Internet at
http://ir.sirona.com, and a presentation relating to the call will
be available on our website. A replay of the conference call will
be available through December 4, 2015 by calling +1-855-859-2056
(domestic) or +1-404-537-3406 (international) using passcode
#60880988. A web archive will be available for 30 days at
www.sirona.com .
About Sirona Dental Systems, Inc.
Sirona, the dental technology leader, has served dealers and
dentists worldwide for more than 130 years. Sirona develops,
manufactures, and markets a complete line of dental products,
including CAD/CAM restoration systems (CEREC), digital intra-oral,
panoramic and 3D imaging systems, dental treatment centers, and
handpieces. Visit http://www.sirona.com for more information about
Sirona and its products.
Forward-Looking
Statements
This communication, in addition to historical information,
contains “forward-looking statements” (as defined in the Securities
Litigation Reform Act of 1995) regarding, among other things,
future events or the future financial performance of DENTSPLY
International Inc. (“DENTSPLY”) and Sirona Dental Systems Inc.
(“Sirona”). Words such as “anticipate,” “expect,” “project,”
“intend,” “believe,” and words and terms of similar substance used
in connection with any discussion of future plans, actions or
events identify forward-looking statements. Forward-looking
statements relating to the proposed transaction include, but are
not limited to: statements about the benefits of the proposed
transaction between DENTSPLY and Sirona, including future financial
and operating results; DENTSPLY’s and Sirona’s plans, objectives,
expectations and intentions; the expected timing of completion of
the proposed transaction; and other statements relating to the
merger that are not historical facts. Forward-looking statements
are based on information currently available to DENTSPLY and Sirona
and involve estimates, expectations and projections. Investors are
cautioned that all such forward-looking statements are subject to
risks and uncertainties, and important factors could cause actual
events or results to differ materially from those indicated by such
forward-looking statements. With respect to the proposed
transaction between DENTSPLY and Sirona, these factors could
include, but are not limited to: the risk that DENTSPLY or Sirona
may be unable to obtain governmental and regulatory approvals
required for the transaction, or that required governmental and
regulatory approvals may delay the transaction or result in the
imposition of conditions that could reduce the anticipated benefits
from the proposed transaction or cause the parties to abandon the
proposed transaction; the risk that a condition to closing of the
transaction may not be satisfied; the length of time necessary to
consummate the proposed transaction, which may be longer than
anticipated for various reasons; the risk that the businesses will
not be integrated successfully; the risk that the cost savings,
synergies and growth from the proposed transaction may not be fully
realized or may take longer to realize than expected; the diversion
of management time on transaction-related issues; the effect of
future regulatory or legislative actions on the companies or the
industries in which they operate; the risk that the credit ratings
of the combined company or its subsidiaries may be different from
what the companies expect; economic and foreign exchange rate
volatility; the continued strength of the dental and medical device
markets; unexpected changes relating to competitive factors in the
dental and medical devices industries; the timing, success and
market reception for DENTSPLY’s and Sirona’s new and existing
products; the possibility of new technologies outdating DENTSPLY’s
or Sirona’s products; the outcomes of any litigation; continued
support of DENTSPLY’s or Sirona’s products by influential dental
and medical professionals; changes in the general economic
environment, or social or political conditions, that could affect
the businesses; the potential impact of the announcement or
consummation of the proposed transaction on relationships with
customers, suppliers, competitors, management and other employees;
the ability to attract new customers and retain existing customers
in the manner anticipated; the ability to hire and retain key
personnel; reliance on and integration of information technology
systems; the risks associated with assumptions the parties make in
connection with the parties’ critical accounting estimates and
legal proceedings; and the potential of international unrest,
economic downturn or effects of currencies, tax assessments, tax
adjustments, anticipated tax rates, raw material costs or
availability, benefit or retirement plan costs, or other regulatory
compliance costs.
Additional information concerning other risk factors is also
contained in DENTSPLY’s and Sirona’s most recently filed Annual
Reports on Form 10-K, subsequent Quarterly Reports on Form 10-Q,
Current Reports on Form 8-K, and other SEC filings.
Many of these risks, uncertainties and assumptions are beyond
DENTSPLY’s or Sirona’s ability to control or predict. Because of
these risks, uncertainties and assumptions, you should not place
undue reliance on these forward-looking statements. Furthermore,
forward-looking statements speak only as of the information
currently available to the parties on the date they are made, and
neither DENTSPLY nor Sirona undertakes any obligation to update
publicly or revise any forward-looking statements to reflect events
or circumstances that may arise after the date of this
communication. Nothing in this communication is intended, or is to
be construed, as a profit forecast or to be interpreted to mean
that earnings per DENTSPLY share or Sirona share for the current or
any future financial years or those of the combined company, will
necessarily match or exceed the historical published earnings per
DENTSPLY share or Sirona share, as applicable. Neither DENTSPLY nor
Sirona gives any assurance (1) that either DENTSPLY or Sirona will
achieve its expectations, or (2) concerning any result or the
timing thereof, in each case, with respect to any regulatory
action, administrative proceedings, government investigations,
litigation, warning letters, consent decree, cost reductions,
business strategies, earnings or revenue trends or future financial
results. All subsequent written and oral forward-looking statements
concerning DENTSPLY, Sirona, the proposed transaction, the combined
company or other matters and attributable to DENTSPLY or Sirona or
any person acting on their behalf are expressly qualified in their
entirety by the cautionary statements above.
Additional Information And Where To
Find It
This communication is for informational purposes only and does
not constitute an offer to sell or the solicitation of an offer to
buy any securities or a solicitation of any vote or approval with
respect to the proposed transaction between DENTSPLY and Sirona or
otherwise, nor shall there be any sale, issuance or transfer of
securities in any jurisdiction in contravention of applicable law.
No offer of securities shall be made except by means of a
prospectus meeting the requirements of Section 10 of the Securities
Act of 1933, as amended. The proposed business combination
transaction between DENTSPLY and Sirona will be submitted to the
respective stockholders of DENTSPLY and Sirona for their
consideration. In connection with the proposed transaction between
DENTSPLY and Sirona, on October 29, 2015, DENTSPLY filed with the
Securities and Exchange Commission (the “SEC”) a registration
statement on Form S-4 that includes a preliminary joint proxy
statement of DENTSPLY and Sirona that also constitutes a
preliminary prospectus of DENTSPLY. These materials are not yet
final and will be amended. After such time as the registration
statement on Form S-4 has been declared effective by the SEC,
DENTSPLY and Sirona will mail the joint proxy statement/prospectus
to their respective stockholders when it becomes final.. DENTSPLY
and Sirona also plan to file other documents with the SEC regarding
the proposed transaction. This communication is not a substitute
for any prospectus, proxy statement or any other document which
DENTSPLY or Sirona may file with the SEC in connection with the
proposed transaction. INVESTORS AND SECURITY HOLDERS OF DENTSPLY
AND SIRONA ARE URGED TO READ THE DEFINITIVE JOINT PROXY
STATEMENT/PROSPECTUS ONCE IT IS FILED WITH THE SEC AND ANY OTHER
RELEVANT DOCUMENTS THAT ARE FILED WITH THE SEC, AS WELL AS ANY
AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS, CAREFULLY AND IN
THEIR ENTIRETY BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION
ABOUT DENTSPLY, SIRONA, THE PROPOSED TRANSACTION AND RELATED
MATTERS. Investors and stockholders will be able to obtain free
copies of the joint proxy statement/prospectus and other documents
containing important information about DENTSPLY and Sirona, once
such documents are filed with the SEC, through the website
maintained by the SEC at www.sec.gov. DENTSPLY and Sirona make
available free of charge at www.dentsply.com and www.sirona.com,
respectively (in the “Investor Relations” section), copies of
materials they file with, or furnish to, the SEC.
Participants In The Merger
Solicitation
DENTSPLY, Sirona, and certain of their respective directors,
executive officers and other members of management and employees
may be deemed to be participants in the solicitation of proxies
from the stockholders of DENTSPLY and Sirona in connection with the
proposed transaction. Information about the directors and executive
officers of Sirona is set forth in its proxy statement for its 2014
annual meeting of stockholders, which was filed with the SEC on
January 28, 2015. Information about the directors and executive
officers of DENTSPLY is set forth in its proxy statement for its
2015 annual meeting of stockholders, which was filed with the SEC
on April 10, 2015. These documents can be obtained free of charge
from the sources indicated above. Other information regarding those
persons who are, under the rules of the SEC, participants in the
proxy solicitation and a description of their direct and indirect
interests, by security holdings or otherwise, will be contained in
the joint proxy statement/prospectus and other relevant materials
to be filed with the SEC when they become available.
SIRONA DENTAL SYSTEMS, INC.AND
SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENT OF
INCOME
(Unaudited)
Three
months ended Year ended September 30,
September 30, (In millions, except for share and per
share amounts)
2015 2014
2015 2014
REVENUE $
304.9 $ 290.0
$ 1,161.3 $ 1,171.1 Cost
of goods sold
(138.0) (130.1)
(513.1) (529.4)
GROSS
PROFIT 166.9 159.9
648.2 641.7 Selling, general
and administrative expense
(90.2) (87.6)
(344.1)
(350.9) Research and development expense
(12.9) (16.5)
(54.8) (64.6) Net other operating income (loss)
1.3 2.5
9.0
11.9
OPERATING INCOME 65.1 58.3
258.3
238.1 Gain (loss) on foreign currency transactions
(11.5)
(1.9)
(17.9) (0.3) Gain (loss) on derivative instruments
- (1.1)
1.7 (2.5) Interest income (expense)
(1.5) (0.5)
(4.2) (2.9) Other income (expense)
5.6 (0.5)
5.0
(2.0)
INCOME BEFORE TAXES 57.7 54.3
242.9 230.4 Income tax benefit (expense)
(12.2) (11.6)
(54.8)
(53.0)
NET INCOME 45.5 42.7
188.1 177.4 Net (income) loss attributable to noncontrolling
interests
(0.1) -
(1.9) (1.7)
NET INCOME ATTRIBUTABLE TO
SIRONA DENTAL SYSTEMS, INC.
$ 45.4 $ 42.7
$
186.2 $ 175.7
INCOME PER SHARE
(attributable to Sirona Dental
Systems, Inc. common
shareholders)
Basic $ 0.81 $ 0.78
$ 3.35 $ 3.18
Diluted $ 0.80 $
0.76
$ 3.30 $ 3.13 Weighted average shares - basic
55,874,148 55,354,123
55,640,225 55,269,606 Weighted
average shares - diluted
56,443,495
56,231,557
56,377,863
56,203,970
SIRONA DENTAL SYSTEMS, INC.AND
SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETS
September 30, (In
millions, except for share and par value amounts)
2015 2014
ASSETS CURRENT
ASSETS Cash and cash equivalents
$ 517.8 $ 382.8
Restricted cash
0.6 0.8 Accounts receivable, net of
allowance for doubtful accounts
154.9 115.6 of $1.4 and
$2.4, respectively Inventories, net
129.4 123.4 Deferred tax
assets
26.0 29.7 Prepaid expenses and other current assets
33.7 26.8 Income tax receivable
14.2
8.0
TOTAL CURRENT ASSETS 876.6 687.1
Property, plant and equipment, net of accumulated depreciation
208.3 221.0 of $191.4 and $171.3, respectively Goodwill
585.9 629.3 Restricted cash
0.5 - Intangible assets,
net of accumulated amortization
216.8 252.8 Other
non-current assets
3.3 5.3 Deferred tax assets
10.9 15.5
TOTAL ASSETS $
1,902.3 $ 1,811.0
LIABILITIES AND
SHAREHOLDERS' EQUITY CURRENT LIABILITIES Trade accounts
payable
$ 65.3 $ 59.9 Short-term financial
liabilities
23.1 1.5 Income taxes payable
14.8 6.1
Deferred tax liabilities
0.7 2.2 Accrued liabilities and
deferred income
191.2 167.6
TOTAL CURRENT LIABILITIES 295.1 237.3 Long-term
financial liabilities
57.1 78.0 Deferred tax liabilities
100.5 111.8 Other non-current liabilities
21.5 25.1
Pension related provisions
62.4 71.7 Deferred income
24.8 25.9
TOTAL LIABILITIES
561.4 549.8
COMMITMENTS & CONTINGENCIES
SHAREHOLDERS' EQUITY Preferred stock ($0.01 par value;
5,000,000 shares authorized;
0 0 none issued and
outstanding) Common stock ($0.01 par value; 95,000,000 shares
authorized;
0.6 0.6
58,367,468 shares issued; 55,895,969
shares
outstanding at Sep. 30, 2015;
57,776,336 shares issued; 55,364,617
shares
outstanding at Sept. 30, 2014
Additional paid-in capital
702.6 697.9 Treasury
stock, at cost
(132.0) (126.8) 2,471,499 shares held at cost
at Sep. 30, 2015;
2,411,719 shares held at cost at Sept. 30,
2014
Retained earnings
946.1 759.9 Accumulated other
comprehensive income (loss)
(179.1)
(72.8)
TOTAL SIRONA DENTAL SYSTEMS, INC. SHAREHOLDERS'
EQUITY 1,338.2 1,258.8
NONCONTROLLING INTERESTS
2.7 2.4
TOTAL SHAREHOLDERS'
EQUITY 1,340.9 1,261.2
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY $
1,902.3 $ 1,811.0
SIRONA DENTAL SYSTEMS, INC.AND
SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS
Year ended September 30,
(In millions)
2015 2014
2013
OPERATING ACTIVITIES NET
INCOME $ 188.1 $ 177.4 $ 148.5
ADJUSTMENTS TO RECONCILE NET INCOME
TO
NET CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES
Depreciation and amortization
69.8 76.3 75.6 (Gain) loss on
derivative instruments and foreign currency transactions
16.2 2.8 12.0 Deferred income taxes
1.9 (13.8) (2.7)
Share-based compensation expense
13.7 12.2 12.8 Other
adjustments
0.5 (1.3)
0.6
TOTAL ADJUSTMENTS TO RECONCILE NET
INCOME TO OPERATING CASH FLOWS
102.1 76.2 98.3
CHANGES IN ASSETS AND LIABILITIES
Accounts receivable
(49.9) 20.5 (13.2) Inventories
(23.8) (24.9) (26.8) Trade accounts payable
11.2
(9.5) 16.4 Other current and non-current assets
(11.4) 2.9
(15.3) Other current and non-current liabilities
20.4 14.3
30.5 Current income taxes
2.5
(8.5) (6.4)
EFFECT OF CHANGES IN ASSETS AND
LIABILITIES ON OPERATING CASH FLOWS
(51.0) (5.2)
(14.8)
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES
239.2 248.4 232.0
INVESTING ACTIVITIES Investment in property, plant and
equipment
(52.8) (93.7) (70.7) Proceeds from sale of
property, plant and equipment
0.9 1.1 0.1 Purchase of
intangible assets
(0.5) (0.5) (1.2) Acquisition of business,
net of cash acquired
(18.5) - (35.0) Sale of business, net
of cash sold
- 11.5
-
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES
$ (70.9) $ (81.6) $ (106.8)
Year ended September 30, (In millions)
2015 2014 2013
FINANCING
ACTIVITIES Repayments of short-term and long-term debt
$
(0.1) $ - $ (0.1) Purchase of treasury stock
(5.2)
(14.8) (42.9) Purchase of shares from noncontrolling interest
- - (1.4) Dividend distributions to noncontrolling interest
(1.3) (1.5) (1.4) Common shares issued under share based
compensation plans
4.2 6.8 7.9 Tax effect of common shares
issued under share based compensation plans
(10.2) (0.5) (0.2)
NET CASH
PROVIDED BY (USED IN) FINANCING ACTIVITIES
(12.6) (10.0) (38.1)
CHANGE
IN CASH AND CASH EQUIVALENTS 155.7 156.8 87.1 Effect of
exchange rate change on cash and cash equivalents
(20.7)
(15.7) 3.5 Cash and cash equivalents at beginning of period
382.8 241.7 151.1
CASH
AND CASH EQUIVALENTS AT END OF PERIOD $
517.8 $ 382.8 $ 241.7
SUPPLEMENTAL INFORMATION
GENERAL Interest paid
$
3.7 $ 2.7 $ 2.8 Interest capitalized
0.3 0.4 0.2
Income taxes paid
40.3 60.3 65.7
ACQUISITION OF
BUSINESS Current assets
$ 3.7 $ - $ 5.2
Non-current assets
25.1 - 61.2 Current liabilities
(4.8) - (7.8) Non-current liabilities
(5.4) - (12.0)
18.6 - 46.6 Cash paid
(18.6) - (36.7) Settlement of
balances
- - (4.5) Fair value of liabilities incurred
$ - $ - $ 5.4
Reconciliation of GAAP and Non-GAAP Information
(unaudited) HISTORICAL Non-GAAP
Adjusted Net Income Financial Measures (unaudited)
Non-GAAP Financial Measures
(GAAP reconciliation)
Three months ended
September 30, 2015
(In millions, except for per share and percent amounts)
Pre Tax
Tax Impact*
After Tax
Per DilutedShare
GAAP net income attributable to Sirona
Dental
Systems, Inc. shareholders
$
45.4
$ 0.80
Adjustments
Amortization and depreciation expense
resulting from the
step-up to fair values of intangible
assets related to past
business combinations
$
6.3
$ 1.3
5.0
(Gain) loss on foreign currency transactions, net
11.5
2.6
8.9
Other items: Merger and acquisition-related expenses
3.1
0.7
2.4
Management Transition
0.1
0.0
0.1
Discrete tax items
1.2
-
1.2
Non-GAAP adjusted net income
attributable to Sirona Dental
Systems, Inc. shareholders
$
63.0
$
1.12 * tax impact calculated using estimated
effective tax rate of 22.1%
Non-GAAP Financial Measures
(GAAP reconciliation)
Three months ended
September 30, 2014
(In millions, except for per share and percent amounts)
Pre Tax
Tax Impact*
After Tax
Per DilutedShare
GAAP net income attributable to Sirona
Dental Systems, Inc.
shareholders
$
42.7
$ 0.76
Adjustments
Amortization and depreciation expense
resulting from the
step-up to fair values of intangible
assets related to past
business combinations
$
8.6
$ 1.8
6.8
(Gain)/loss on foreign currency transactions, net
1.9
0.8
1.1
(Gain)/loss on derivative instruments
1.1
-
1.1
Other items: Management Transition
0.4
0.1
0.3
Non-GAAP adjusted net income
attributable to Sirona Dental
Systems, Inc. shareholders
$
52.0
$ 0.93 * tax impact calculated using estimated
effective tax rate of 21.8%
Non-GAAP Financial Measures (GAAP reconciliation) Year
ended September 30, 2015 (In millions, except for per
share and percent amounts)
Pre Tax
TaxImpact*
After Tax
PerDilutedShare
GAAP net income attributable to Sirona
Dental Systems, Inc.
shareholders
$
186.2
$
3.30
Adjustments
Amortization and depreciation expense
resulting from the
step-up to fair values of intangible
assets related to past
business combinations
$ 26.3
$
5.9
20.4
(Gain)/loss on foreign currency transactions, net 17.9 4.0
13.9
(Gain)/loss on derivative instruments (1.7) (0.4)
(1.3)
Other items: Merger and acquisition-related expenses 4.6 1.0
3.6
Management Transition 0.8 0.2
0.6
Discrete tax items 1.2 -
1.2
Non-GAAP adjusted net income
attributable to Sirona Dental
Systems, Inc. shareholders
$
224.5
$
3.98
* tax impact calculated using estimated effective tax rate
of 22.6%
Non-GAAP Financial Measures (GAAP
reconciliation) Year ended September 30, 2014 (In
millions, except for per share and percent amounts)
Pre Tax
TaxImpact*
After Tax
PerDilutedShare
GAAP net income attributable to Sirona
Dental Systems, Inc.
shareholders
$
175.7
$
3.13
Adjustments
Amortization and depreciation expense
resulting from the
step-up to fair values of intangible
assets related to past
business combinations
$ 35.7
$
8.2
27.5
(Gain)/loss on foreign currency transactions, net 0.3 0.1
0.2
(Gain)/loss on derivative instruments 2.5 0.6
1.9
Other items: Management Transition 3.3 0.8
2.5
One-time gain on sale of certain operating assets
(1.9) (0.4)
(1.5)
Non-GAAP adjusted net income
attributable to Sirona Dental
Systems, Inc. shareholders
$
206.4
$
3.67
* tax impact calculated using estimated effective tax rate
of 23%
To supplement our consolidated financial statements and our
business outlook, we use the following non-GAAP financial measures:
(i) non-GAAP adjusted net income, and (ii) non-GAAP adjusted
earnings per diluted share, which exclude, as applicable,
amortization and depreciation expense resulting from the step-up to
fair values of intangible and tangible assets related to past
business combinations, gain/loss on foreign currency transactions,
gain/loss on derivative instruments, any related tax effects, and
to the extent relevant in a particular period, any other cash or
non-cash items that management does not view as indicative of its
ongoing operating performance. Also set forth above under the
heading “FORWARD-LOOKING” are reconciliations of forward-looking
non-GAAP financial measures to the most directly comparable GAAP
financial measures.
Management recognizes that the use of these non-GAAP measures
has limitations, including the fact that they might not be
comparable with similar non-GAAP measures used by other companies
and that management must exercise judgment in determining which
types of charges and other items should be excluded from its
non-GAAP financial measures. Management currently compensates for
these limitations by providing full disclosure of each non-GAAP
financial measure and a reconciliation to the most directly
comparable GAAP measure. The presentation of this financial
information is not intended to be considered in isolation or as a
substitute for, or superior to, the financial information prepared
and presented in accordance with GAAP.
We use these non-GAAP financial measures for financial and
operational decision making and as a means to evaluate
period-to-period comparisons. Our management believes that these
non-GAAP financial measures provide meaningful supplemental
information regarding Sirona’s operating performance in the
ordinary, ongoing and customary course of its operations.
Accordingly, management excludes the impact of acquisition-related
intangible depreciation and amortization in order to compare our
underlying financial performance to prior periods, certain charges
related to currency revaluation of assets and liabilities that do
not reflect our period-to-period core operating performance, and to
the extent relevant in a particular period, any other cash or
non-cash items that management does not view as indicative of its
ongoing operating performance. We believe that both management and
investors benefit from referring to these non-GAAP financial
measures in assessing our performance and when planning,
forecasting and analyzing future periods. These non-GAAP financial
measures also facilitate management's internal evaluation of
period-to-period comparisons. We believe these non-GAAP financial
measures are useful to investors both because (1) they allow for
greater transparency with respect to key metrics used by management
in its financial and operational decision making and (2) they are
provided to and used by our institutional investors and the analyst
community to facilitate comparisons with prior and subsequent
reporting periods.
Local Currency: We have included certain revenue information in
this press release on a local currency basis. This information is a
non-GAAP financial measure. We additionally present revenue on a
local currency basis because we believe it facilitates a comparison
of our operating results from period to period without regard to
changes resulting solely from fluctuations in currency rates.
Sirona calculates local constant currency revenue growth by
comparing current-period revenues to prior-period revenues with
both periods converted at the U.S. Dollar/local currency average
foreign exchange rate for each month of the prior period for the
currencies in which we do business.
* Non-GAAP adjusted EPS and local currency growth and results
are non-GAAP financial measures that exclude certain items. Please
refer to “Reconciliation of GAAP and non-GAAP Information
(unaudited)” in the attached exhibits for a description of these
items.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20151120005165/en/
Sirona Dental Systems, Inc.Joshua Zable,
+1-718-482-2184Vice President, Investor
Relationsjoshua.zable@sirona.com
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