• Dentsply Sirona Reports Fourth Quarter and Full Year 2023 Results, Provides Full Year 2024 Outlook, Raises Dividend

    المصدر: Nasdaq GlobeNewswire / 29 فبراير 2024 05:00:01   America/Chicago

    • FY23 net sales of $3,965 million increased 1.1%, organic sales increased 2.2%
    • FY23 GAAP net income (loss) of ($132) million or ($0.62) per share, adjusted EPS of $1.83
    • Q4 net sales of $1,012 million increased 2.9%, organic sales increased 1.9%
    • Q4 GAAP net income of $67 million or $0.32 per share, adjusted EPS of $0.44
    • FY24 outlook: organic sales flat to up 1.5%; adjusted EPS of $2.00 to $2.10

    CHARLOTTE, N.C., Feb. 29, 2024 (GLOBE NEWSWIRE) -- DENTSPLY SIRONA Inc. (“Dentsply Sirona” or the “Company”) (Nasdaq: XRAY) today announced its financial results for the fourth quarter and full year of 2023.

    Full year 2023 net sales of $3,965 million increased 1.1% (organic sales increased 2.2%), compared to the full year of 2022. Net income (loss) was ($132) million, or ($0.62) per share, compared to net income (loss) of ($950) million, or ($4.41) per share for the full year of 2022. Non-cash charges for the impairment of goodwill and other intangible assets was ($302) million, net of tax, or ($1.42) per share in 2023, and ($1.1) billion, net of tax, or ($5.10) per share in 2022. Adjusted earnings per diluted share were $1.83, compared to $2.09 in 2022. A reconciliation of Non-GAAP measures (including organic sales, adjusted EBITDA and margin, adjusted EPS, and adjusted free cash flow conversion) to GAAP measures is provided below.

    Fourth quarter net sales of $1,012 million increased 2.9% (organic sales increased 1.9%) compared to the fourth quarter of 2022. Net income was $67 million, or $0.32 per diluted share, compared to net income (loss) of ($15) million, or ($0.07) per share in the fourth quarter of 2022. Adjusted earnings per diluted share were $0.44 compared to $0.46 in the fourth quarter of 2022.

    “We delivered on our outlook with three of our four segments posting year-over-year growth in the fourth quarter and full year 2023,” said Simon Campion, President and Chief Executive Officer. “Dentsply Sirona's transformation is taking shape, and while there is more work ahead, we expect that 2024 will be an inflection point for improved profitability and adjusted earnings per share growth. We maintain our conviction that we are on the right path to deliver meaningful value over the long term."

    Q4 23 and FY 23 Summary Results (GAAP)

    (in millions, except per share amount and percentages) Q4 23 Q4 22 YoY FY 23 FY 22 YoY
    Net Sales $1,012 $983 2.9% $3,965 $3,922 1.1%
    Gross Profit $522 $517 1.0% $2,086 $2,127 (1.9%)
    Gross Margin 51.6% 52.6%   52.6% 54.2%  
    Net Income (Loss) Attributable to Dentsply Sirona $67 ($15) NM ($132) ($950) NM
    Diluted Earnings (Loss) Per Share $0.32 ($0.07) NM ($0.62) ($4.41) NM
     
    NM - not meaningful
    Percentages are based on actual values and may not recalculate due to rounding.
     

    Q4 23 and FY 23 Summary Results (Non-GAAP)[1]

    (in millions, except per share amount and percentages) Q4 23 Q4 22 YoY FY 23 FY 22 YoY
    Net Sales $1,012 $983 2.9% $3,965 $3,922 1.1%
    Organic Sales Growth %     1.9%     2.2%
    Adjusted EBITDA $173 $171 0.7% $691 $766 (9.8%)
    Adjusted EBITDA Margin 17.1% 17.5%   17.4% 19.5%  
    Adjusted EPS $0.44 $0.46 (4.0%) $1.83 $2.09 (12.8%)
     
    [1] 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.
    Percentages are based on actual values and may not recalculate due to rounding.
     

    Q4 23 and FY 23 Segment Results

      Net Sales Growth % Organic Sales Growth %
      Q4 23FY 23 Q4 23FY 23
           
    Connected Technology Solutions (7.0%)(4.1%) (8.3%)(2.8%)
    Essential Dental Solutions 4.5%2.8% 3.4%3.6%
    Orthodontic and Implant Solutions 10.3%3.4% 10.6%5.1%
    Wellspect Healthcare 21.1%6.6% 16.9%7.3%
    Total 2.9%1.1% 1.9%2.2%
           

    Q4 23 and FY 23 Geographic Results

      Net Sales Growth % Organic Sales Growth %
      Q4 23FY 23 Q4 23FY 23
           
    United States (0.4%)3.2% (1.2%)3.0%
    Europe 5.3%(0.6%) 2.7%(0.2%)
    Rest of World 4.3%0.7% 5.4%5.1%
    Total 2.9%1.1% 1.9%2.2%
           

    Cash Flow and Liquidity

    Operating cash flow in the fourth quarter of 2023 was $160 million, compared to $142 million in the prior year, primarily as a result of improved working capital due primarily to effective inventory management and the timing of accounts payable. Full year 2023 operating cash flow was $377 million, as compared to $517 million in the prior year, primarily driven by unfavorable working capital and higher cost of sales and operating expenses. In the fourth quarter, the Company paid $30 million in dividends and executed share repurchases of $150 million, resulting in a total of $416 million returned to shareholders in 2023. The Company had $334 million of cash and cash equivalents as of December 31, 2023.

    Quarterly Cash Dividend

    The Company's Board of Directors approved a 14% increase in the Company's quarterly dividend rate, from the previous rate of $0.14 per share of common stock to $0.16 per share. The dividend is payable on April 12, 2024, to holders of record as of March 29, 2024. This represents the fourth consecutive annual double-digit increase, demonstrating the Company's commitment to return cash to shareholders.

    Full Year 2024 Outlook

    The 2024 outlook includes anticipated net sales in the range of $3.96 billion to $4.02 billion, flat to up 1.5% on an organic basis. Adjusted EPS is expected to be in the range of $2.00 to $2.10.  

    Other 2024 outlook assumptions are included in the fourth quarter 2023 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 is not available without unreasonable effort and cannot be reasonably estimated.

    Conference Call/Webcast Information
    Dentsply Sirona’s management team will host an investor conference call and live webcast on February 29, 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/BI780eb31a2a894c20ae60990011145ed8. A webcast replay of the conference call will be available on the Investors section of the Company’s website following the call.

    About Dentsply Sirona
    Dentsply 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 Daley
    Vice President, Investor Relations
    +1-704-591-8631
    InvestorRelations@dentsplysirona.com

    Press:
    Marion Par-Weixlberger
    Vice President, Public Relations & Corporate Communications
    +43 676 848414588
    marion.par-weixlberger@dentsplysirona.com

    Forward-Looking Statements and Associated Risks

    This Press Release contains statements that do not directly and exclusively relate to historical facts which constitute forward-looking statements, including, statements and projections concerning, among other things, the expected timing, benefits and costs associated with the Company’s restructuring plan described in this Press Release. The Company’s forward-looking statements represent current expectations and beliefs and involve risks and uncertainties. Actual results may differ significantly from those projected or suggested in any forward-looking statements and no assurance can be given that the results described in such forward-looking statements will be achieved. Investors are cautioned not to place undue reliance on such forward-looking statements which speak only as of the date they are made. The forward-looking statements are subject to numerous assumptions, risks and 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. The Company does not undertake any obligation to release publicly any revisions to such forward-looking statements to reflect events or circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Any number of factors could cause the Company’s actual results to differ materially from those contemplated by any forward-looking statements, including, but not limited to, the risks associated with the following: the Company’s ability to remain profitable in a very competitive marketplace, which depends upon the Company’s ability to differentiate its products and services from those of competitors; the Company’s failure to realize assumptions and projections which may result in the need to record additional impairment charges; the effect of changes to the Company’s distribution channels for its products and the failure of significant distributors of the Company to effectively manage their inventories; the Company’s ability to control costs and failure to realize expected benefits of cost reduction and restructuring efforts and the Company’s failure to anticipate and appropriately adapt to changes or trends within the rapidly changing dental industry. Investors should carefully consider these and other relevant factors, including those risk factors in Part I, Item 1A, (“Risk Factors”) in the Company’s most recent Form 10-K, including any amendments thereto, and any updating information which may be contained in the Company’s other filings with the SEC, when reviewing any forward-looking statement. The Company notes these factors for investors as permitted under the Private Securities Litigation Reform Act of 1995. Investors should understand it is impossible to predict or identify all such factors or risks. As such, you should not consider either the foregoing lists, or the risks identified in the Company’s SEC filings, to be a complete discussion of all potential risks or uncertainties.


    DENTSPLY SIRONA INC. AND SUBSIDIARIES
    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
    (In millions, except per share amounts and percentages)
    (unaudited)
            
     Three Months Ended Year Ended
     December 31, December 31,
     2023 2022 2023 2022
            
    Net sales$1,012  $983  $3,965  $3,922 
    Cost of products sold 490   466   1,879   1,795 
            
    Gross profit 522   517   2,086   2,127 
            
    Selling, general, and administrative expenses 409   402   1,613   1,589 
    Research and development expenses 43   43   184   174 
    Goodwill and intangible asset impairments    6   307   1,287 
    Restructuring and other costs (3)  1   67   14 
            
    Operating income (loss) 73   65   (85)  (937)
            
    Other income and expenses:       
    Interest expense, net 20   20   81   65 
    Other (income) expense, net (4)  37   9   53 
            
    Income (loss) before income taxes 57   8   (175)  (1,055)
    (Benefit) provision for income taxes (15)  23   (43)  (105)
            
    Net income (loss) 72   (15)  (132)  (950)
            
    Less: Net loss attributable to noncontrolling interests 5          
            
    Net income (loss) attributable to Dentsply Sirona$67  $(15) $(132) $(950)
            
    Net income (loss) per common share attributable to Dentsply Sirona:       
    Basic$0.32  $(0.07) $(0.62) $(4.41)
    Diluted$0.32  $(0.07) $(0.62) $(4.41)
            
    Weighted average common shares outstanding:       
    Basic 210.0   215.1   212.0   215.5 
    Diluted 210.9   215.1   212.0   215.5 
                    


    DENTSPLY SIRONA INC. AND SUBSIDIARIES
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (In millions)
    (unaudited)
        
        
     December 31, 2023 December 31, 2022
        
    Assets   
    Current Assets:   
    Cash and cash equivalents$334  $365 
    Accounts and notes receivable-trade, net 695   632 
    Inventories, net 624   627 
    Prepaid expenses and other current assets 320   269 
    Total Current Assets 1,973   1,893 
        
    Property, plant and equipment, net 800   761 
    Operating lease right-of-use assets, net 178   200 
    Identifiable intangible assets, net 1,705   1,903 
    Goodwill, net 2,438   2,688 
    Other noncurrent assets 276   198 
    Total Assets$7,370  $7,643 
        
    Liabilities and Equity   
    Current Liabilities:   
    Accounts payable$305  $279 
    Accrued liabilities 749   727 
    Income taxes payable 49   46 
    Notes payable and current portion of long-term debt 322   118 
    Total Current Liabilities 1,425   1,170 
        
    Long-term debt 1,796   1,826 
    Operating lease liabilities 125   149 
    Deferred income taxes 228   287 
    Other noncurrent liabilities 502   399 
    Total Liabilities 4,076   3,831 
        
    Total Equity 3,294   3,812 
        
    Total Liabilities and Equity$7,370  $7,643 
     


    DENTSPLY SIRONA INC. AND SUBSIDIARIES
    CONSOLIDATED STATEMENTS OF CASH FLOWS
    (In millions)
    (unaudited)
     
     
     Year Ended December 31,
     2023 2022
    Cash flows from operating activities:   
        
    Net (loss) income$(132) $(950)
        
    Adjustments to reconcile net (loss) income to net cash provided by operating activities:   
    Depreciation 132   119 
    Amortization of intangible assets 211   209 
    Goodwill impairment 291   1,187 
    Indefinite-lived intangible asset impairment 16   100 
    Deferred income taxes (130)  (228)
    Stock based compensation expense 46   59 
    Restructuring and other costs 33   (10)
    Equity in earnings from unconsolidated affiliates 4   36 
    Other non-cash (income) expense (5)  60 
    Loss (gain) on sale or disposal of non-strategic businesses and product lines    3 
    Changes in operating assets and liabilities, net of acquisitions:   
    Accounts and notes receivable-trade, net (58)  85 
    Inventories, net 6   (141)
    Prepaid expenses and other current assets (58)  (33)
    Other noncurrent assets 4   1 
    Accounts payable 14   30 
    Accrued liabilities (16)  4 
    Income taxes (11)  (15)
    Other noncurrent liabilities 30   1 
    Net cash provided by operating activities$377  $517 
        
    Cash flows from investing activities:   
        
    Cash received on sale of non-strategic businesses or product lines 13    
    Capital expenditures (149)  (149)
    Cash received on derivative contracts 39   13 
    Proceeds from sale of property, plant and equipment 7    
    Other investing activities, net 1   (2)
    Net cash used in investing activities$(89) $(138)
        
    Cash flows from financing activities:   
        
    Proceeds from long-term borrowings    6 
    Repayments on long-term borrowings (7)  (2)
    Net borrowings (repayments) on short-term borrowings 126   (64)
    Proceeds from exercised stock options    6 
    Cash paid for treasury stock (300)  (150)
    Cash dividends paid (116)  (104)
    Other financing activities, net (10)  (21)
    Net cash used in financing activities$(307) $(329)
        
    Effect of exchange rate changes on cash and cash equivalents (12)  (24)
        
    Net (decrease) increase in cash and cash equivalents (31)  26 
    Cash and cash equivalents at beginning of period 365   339 
    Cash and cash equivalents at end of period$334  $365 
        
    Supplemental disclosures of cash flow information:   
    Interest paid, net of amounts capitalized$97  $70 
    Income taxes paid, net of refunds 177   122 
    Non-cash investing activities:   
    Change in accounts payable related to capital expenditures$6  $(6)
            

    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 (Loss) 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, charges related to 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 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, the credit risk component of hedging instruments, 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 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 any of the above adjustments that affect 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) (EPS) per diluted share is computed by dividing adjusted earnings (losses) attributable to Dentsply Sirona shareholders by the diluted weighted average number of common shares outstanding.

    Adjusted Free Cash Flow 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 December 31, 2023 Q4 2023 Change Three Months Ended December 31, 2022
    (in millions, except percentages) U.S.EuropeROWTotal U.S.EuropeROWTotal U.S.EuropeROWTotal
                    
    Net sales $368$397$247$1,012 (0.4%)5.3%4.3%2.9% $369$376$238 $983
    Foreign exchange impact      0.8%2.6%(1.1%)1.0%     
    Organic sales      (1.2%)2.7%5.4%1.9%     
     
    Percentages are based on actual values and may not recalculate due to rounding.
     


      Year Ended December 31, 2023 2023 Change Year Ended December 31, 2022
    (in millions, except percentages) U.S.EuropeROWTotal U.S.EuropeROWTotal U.S.EuropeROWTotal
                    
    Net sales $1,437$1,550$978$3,965 3.2%(0.6%)0.7%1.1% $1,392$1,559$971 $3,922
    Foreign exchange impact      0.2%(0.4%)(4.4%)(1.1%)     
    Organic sales      3.0%(0.2%)5.1%2.2%     
     
    Percentages are based on actual values and may not recalculate due to rounding.  
     


    A reconciliation of reported net sales to organic sales by segment is as follows:
     
      Three Months Ended December 31, 2023 Q4 2023 Change Three Months Ended December 31, 2022
    (in millions, except percentages) Connected Technology SolutionsEssential Dental SolutionsOrthodontic and Implant SolutionsWellspect HealthcareTotal Connected Technology SolutionsEssential Dental SolutionsOrthodontic and Implant SolutionsWellspect HealthcareTotal Connected Technology SolutionsEssential Dental SolutionsOrthodontic and Implant SolutionsWellspect HealthcareTotal
                       
    Net sales $319$358$259$76$1,012 (7.0%)4.5%10.3%21.1%2.9% $344$343$234$62 $983
    Foreign exchange impact       1.3%1.1%(0.3%)4.2%1.0%      
    Organic sales       (8.3%)3.4%10.6%16.9%1.9%      
     
     Percentages are based on actual values and may not recalculate due to rounding.
     


      Year Ended December 31, 2023 2023 Change Year Ended December 31, 2022
    (in millions, except percentages) Connected Technology SolutionsEssential Dental SolutionsOrthodontic and Implant SolutionsWellspect HealthcareTotal Connected Technology SolutionsEssential Dental SolutionsOrthodontic and Implant SolutionsWellspect HealthcareTotal Connected Technology SolutionsEssential Dental SolutionsOrthodontic and Implant SolutionsWellspect HealthcareTotal
                       
    Net sales $1,169$1,468$1,040$288$3,965 (4.1%)2.8%3.4%6.6%1.1% $1,219$1,427$1,006$270 $3,922
    Foreign exchange impact       (1.3%)(0.8%)(1.7%)(0.7%)(1.1%)      
    Organic sales       (2.8%)3.6%5.1%7.3%2.2%      
     
    Percentages are based on actual values and may not recalculate due to rounding.
     


    DENTSPLY SIRONA INC. AND SUBSIDIARIES
    (In millions, except per share amounts and percentages)
    (unaudited)
     
    For the three months ended December 31, 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
    Income
     Net Income
    Attributable to
    Dentsply Sirona
    (a)
     Diluted EPS
    GAAP $522 $73  $67  $0.32 
    Non-GAAP Adjustments:        
    Amortization of Purchased Intangible Assets  30  52   37   0.18 
    Restructuring Related Charges and Other Costs  6  16   14   0.06 
    Business Combination Related Costs and Fair Value Adjustments    2   3   0.01 
    Income Tax Related Adjustments       (28)  (0.13)
    Adjusted Non-GAAP $558 $143  $93  $0.44 
    GAAP Margin    7.2%    
    Adjusted Non-GAAP Margin    14.1%    
             
    (a) The total tax expense associated with the Non-GAAP adjustments above was $44 million.  
     
    Percentages are based on actual values and may not reconcile due to rounding.
     


    DENTSPLY SIRONA INC. AND SUBSIDIARIES
    (In millions, except per share amounts and percentages)
    (unaudited)
     
    For the three months ended December 31, 2022, 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
    Income
     Net (Loss)
    Income
    Attributable to
    Dentsply Sirona
    (a)
     Diluted EPS
    GAAP $517 $65  $(15) $(0.07)
    Non-GAAP Adjustments:        
    Amortization of Purchased Intangible Assets  29  50   36   0.17 
    Restructuring Related Charges and Other Costs  6  30   22   0.10 
    Goodwill and Intangible Asset Impairments    6   12   0.06 
    Business Combination Related Costs and Fair Value Adjustments    3   4   0.02 
    Fair Value and Credit Risk Adjustments       18   0.08 
    Income Tax Related Adjustments       22   0.10 
    Adjusted Non-GAAP $552 $154  $99  $0.46 
    GAAP Margin    6.6%    
    Adjusted Non-GAAP Margin    15.7%    
             
    Weighted average common shares outstanding used in calculating diluted GAAP net loss per common share  215.1 
    Weighted average common shares outstanding used in calculating diluted Non-GAAP net income per common share  215.5 
    (a) The total tax expense associated with the Non-GAAP adjustments above was immaterial.  
     
    Percentages are based on actual values and may not reconcile due to rounding.
     


    DENTSPLY SIRONA INC. AND SUBSIDIARIES
    (In millions, except per share amounts and percentages)
    (unaudited)
     
    For the year ended December 31, 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 $2,086 $(85) $(132) $(0.62)
    Non-GAAP Adjustments:        
    Amortization of Purchased Intangible Assets  121  211   154   0.73 
    Restructuring Related Charges and Other Costs  18  123   95   0.44 
    Goodwill and Intangible Asset Impairments    307   302   1.42 
    Business Combination Related Costs and Fair Value Adjustments  2  15   14   0.07 
    Fair Value and Credit Risk Adjustments           
    Income Tax Related Adjustments       (44)  (0.21)
    Adjusted Non-GAAP $2,227 $571  $389  $1.83 
    GAAP Margin    (2.1%)    
    Adjusted Non-GAAP Margin    14.4%    
             
    Weighted average common shares outstanding used in calculating diluted GAAP net loss per common share  212.0 
    Weighted average common shares outstanding used in calculating diluted Non-GAAP net income per common share  213.1 
    (a) The total tax expense associated with the Non-GAAP adjustments above was $139 million.  
     
    Percentages are based on actual values and may not reconcile due to rounding.
     


    DENTSPLY SIRONA INC. AND SUBSIDIARIES
    (In millions, except per share amounts and percentages)
    (unaudited)
     
    For the year ended December 31, 2022, 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 $2,127 $(937) $(950) $(4.41)
    Non-GAAP Adjustments:        
    Amortization of Purchased Intangible Assets  121  209   153   0.71 
    Restructuring Related Charges and Other Costs  7  92   73   0.36 
    Goodwill and Intangible Asset Impairments    1,287   1,104   5.10 
    Business Combination Related Costs and Fair Value Adjustments  1  6   6   0.03 
    Fair Value and Credit Risk Adjustments       33   0.15 
    Income Tax Related Adjustments       33   0.15 
    Adjusted Non-GAAP $2,256 $657  $452  $2.09 
    GAAP Margin    (23.9%)    
    Adjusted Non-GAAP Margin    16.8%    
             
    Weighted average common shares outstanding used in calculating diluted GAAP net loss per common share  215.5 
    Weighted average common shares outstanding used in calculating diluted Non-GAAP net income per common share  215.9 
    (a) The total tax expense associated with the Non-GAAP adjustments above was $237 million.  
     
    Percentages are based on actual values and may not reconcile due to rounding.
     


    DENTSPLY SIRONA INC. AND SUBSIDIARIES
    (In millions, except per share amounts and percentages)
    (unaudited)
     
    A reconciliation of as reported GAAP net income to Adjusted EBITDA for the three months ended December 31, 2023 and 2022 is as follows:
     
      Three Months Ended December 31,
    (in millions) 2023 2022
         
    GAAP net income (loss) $67  $(15)
    Interest expense, net  20   20 
    Income tax (benefit) expense  (15)  23 
    Depreciation(1)  32   28 
    Amortization of purchased intangible assets  52   50 
    Restructuring related charges and other costs  16   30 
    Goodwill and intangible asset impairments     6 
    Business combination related costs and fair value adjustments  2   6 
    Fair value and credit risk adjustments     23 
    Rounding  (1)   
    Adjusted EBITDA(2) $173  $171 
         
    Net sales $1,012  $983 
    Adjusted EBITDA margin  17.1%  17.5%
     
    (1)   Excludes those depreciation related amounts which were included as part of the Restructuring related charges and other costs and Business combination related costs and fair value adjustments above.
    (2) Adjusted EBITDA for Q4 2022 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.
     


     
    A reconciliation of as reported GAAP net income to Adjusted EBITDA for the year ended December 31, 2023 and 2022 is as follows:
     
      Year Ended December 31,
    (in millions) 2023 2022
         
    GAAP net loss $(132) $(950)
    Interest expense, net  81   65 
    Income tax benefit  (43)  (105)
    Depreciation(1)  126   116 
    Amortization of purchased intangible assets  211   209 
    Restructuring related charges and other costs  123   92 
    Goodwill and intangible asset impairments  307   1,287 
    Business combination related costs and fair value adjustments  18   9 
    Fair value and credit risk adjustments     43 
    Adjusted EBITDA(2) $691  $766 
         
    Net sales $3,965  $3,922 
    Adjusted EBITDA margin  17.4%  19.5%
     
    (1) Excludes those depreciation related amounts which were included as part of the Restructuring related charges and other costs and Business combination related costs and fair value adjustments above.
    (2) Adjusted EBITDA for 2022 has been updated to reflect the reclassification of $5 million in certain gains from hedging instruments from Interest expense to Other expense (income) in order to conform with current year presentation.
     


    DENTSPLY SIRONA INC. AND SUBSIDIARIES
    (In millions, except per share amounts and percentages)
    (unaudited)
     
    A reconciliation of adjusted free cash flow conversion for the three months ended December 31, 2023 and 2022 is as follows:
     
      Three Months Ended December 31,
    (in millions, except percentages) 2023 2022
         
    Net cash provided by operating activities $160  $142 
    Capital Expenditures  (40)  (32)
    Adjusted free cash flow  120   110 
         
    Adjusted net income $93  $99 
    Adjusted free cash flow conversion  128%  110%
     


    A reconciliation of adjusted free cash flow conversion for the year ended December 31, 2023 and 2022 is as follows:
     
      Year Ended December 31,
    (in millions, except percentages) 2023 2022
         
    Net cash provided by operating activities $377  $517 
    Capital Expenditures  (149)  (149)
    Adjusted free cash flow  228   368 
         
    Adjusted net income $389  $452 
    Adjusted free cash flow conversion  58%  81%

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