Net sales of $953 million decreased (2.6%), organic sales decreased (1.9%) GAAP gross margin of 53.1%, GAAP net income of $18 million or $0.09 per share Adjusted EBITDA margin of 16.8%, adjusted EPS of $0.42 Maintaining FY24 outlook for organic sales and adjusted EPS, trending towards the low-end of both ranges; reported sales adjusted for additional foreign currency impact Company expects to repurchase up to $150 million of its common stock in Q2 2024 CHARLOTTE, N.C, May 02, 2024 (GLOBE NEWSWIRE) -- DENTSPLY SIRONA Inc. ("Dentsply Sirona" or the "Company") (NASDAQ:XRAY) today announced its financial results for the first quarter of 2024. First quarter net sales of $953 million decreased (2.6%) (organic sales decreased (1.9%)), compared to the first quarter of 2023. Net income (loss) was $18 million, or $0.09 per share, compared to net income (loss) of ($19) million, or ($0.09) per share in the first quarter of 2023. Adjusted earnings per diluted share were $0.42, compared to $0.39 in the first 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. "With first quarter sales softer than anticipated due to continued lower demand for imaging equipment, we believe our full year is trending towards the low end of the outlook range for both organic sales and adjusted EPS. We did see some bright spots in the business in Q1, with over 50% growth in China, double-digit growth in our global aligners business and U.S. CAD/CAM, and mid-single digit growth in Wellspect Healthcare," said Simon Campion, President and Chief Executive Officer. "While the macroeconomic environment remains uncertain, we continue to make progress on our strategic initiatives and believe that our transformation will position us to deliver long-term sustainable performance." Q1 24 Summary Results (GAAP) (in millions, except per share amount and percentages)   Q1 24   Q1 23   YoY               Net Sales   $953   $978   (2.6%) Gross Profit   $506   $519   (2.5%) Gross Margin   53.1%   53.1%     Net Income (Loss) Attributable to Dentsply Sirona   $18   ($19)   NM Diluted Earnings (Loss) Per Share   $0.09   ($0.09)   NM NM - not meaningful Percentages are based on actual values and may not reconcile due to rounding.   Q1 24 Summary Results (Non-GAAP)[1] (in millions, except per share amount and percentages)   Q1 24   Q1 23   YoY               Net Sales   $953   $978   (2.6%) Organic Sales Growth %           (1.9%) Adjusted EBITDA   $160   $162   (1.1%) Adjusted EBITDA Margin   16.8%   16.5%     Adjusted EPS   $0.42   $0.39   7.9% [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 reconcile due to rounding.   Q1 24 Segment Results     Net Sales Growth %   Organic Sales Growth %           Connected Technology Solutions   (6.9%)   (5.7%) Essential Dental Solutions   (5.9%)   (5.5%) Orthodontic and Implant Solutions   4.4%   5.6% Wellspect Healthcare   5.4%   4.8% Total   (2.6%)   (1.9%)           Q1 24 Geographic Results     Net Sales Growth %   Organic Sales Growth %           United States   1.5%   1.4% Europe   (5.2%)   (5.8%) Rest of World   (4.4%)   (0.1%) Total   (2.6%)   (1.9%)           Cash Flow and Liquidity Operating cash flow in the first quarter of 2024 was $25 million, compared to ($21) million in the prior year, primarily as a result of a lower inventory build and improved cash collections. In the first quarter of 2024, the Company paid $29 million in dividends. The Company had $291 million of cash and cash equivalents as of March 31, 2024. 2024 Outlook The Company is maintaining its 2024 outlook for organic sales growth in the range of flat to up 1.5%, and adjusted EPS in the range of $2.00 to $2.10. Based on its latest view of the macroeconomic environment, the Company believes adjusted EPS and organic sales are trending towards the low-end of both ranges. The Company is revising its anticipated reported sales to a new range of $3.91 billion to $3.97 billion, due to an additional estimated foreign currency translation headwind of $50 million. Other 2024 outlook assumptions are included in the first 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 May 2, 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/BI38d1b6b4e3b7425085657a508bdb7633. 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 Press:Marion Par-WeixlbergerVice President, Public Relations & Corporate Communications+43 676 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 (the "2023 Form 10-K"), 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 March 31,     2024       2023   Net sales $ 953     $ 978   Cost of products sold   447       459           Gross profit   506       519   Selling, general, and administrative expenses   415       416   Research and development expenses   42       46   Intangible asset impairments   6       —   Restructuring and other costs   1       59           Operating income (loss)   42       (2 )         Other income and expenses:       Interest expense, net   18       20   Other (income) expense, net   (7 )     6           Income (loss) before income taxes   31       (28 ) Provision (benefit) for income taxes   14       (5 )         Net income (loss)   17       (23 )         Less: Net loss attributable to noncontrolling interest   (1 )     (4 )         Net income (loss) attributable to Dentsply Sirona $ 18     $ (19 )         Net income (loss) per common share attributable to Dentsply Sirona:       Basic $ 0.09     $ (0.09 ) Diluted $ 0.09     $ (0.09 )         Weighted average common shares outstanding:       Basic   207.4       214.5   Diluted   208.5       214.5                   DENTSPLY SIRONA INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETS(in millions)(unaudited)   March 31, 2024   December 31, 2023         Assets       Current Assets:       Cash and cash equivalents $ 291   $ 334   Accounts and notes receivable-trade, net   656     695   Inventories, net   613     624   Prepaid expenses and other current assets   342     320   Total Current Assets   1,902     1,973           Property, plant, and equipment, net   782     800   Operating lease right-of-use assets, net   171     178   Identifiable intangible assets, net   1,618     1,705   Goodwill   2,400     2,438   Other noncurrent assets   250     276   Total Assets $ 7,123   $ 7,370           Liabilities and Equity       Current Liabilities:       Accounts payable $ 279   $ 305   Accrued liabilities   681     749   Income taxes payable   27     49