DENTSPLY International Inc. (NASDAQ:XRAY) Q3 2019 Earnings Conference Call - Final Transcript

Nov 07, 2019 • 08:30 am ET


DENTSPLY International Inc. (NASDAQ:XRAY) Q3 2019 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you standing by, and welcome to the Third Quarter 2019 Dentsply Sirona Earnings Conference Call. [Operator Instructions]

And now I'd like to introduce your host for today's program, Mr. John Sweeney, Vice President of Investor Relations. Please go ahead, sir.

John Sweeney

Thank you, Jonathan, and good morning, everyone. Welcome to our third quarter 2019 earnings conference call. I'd like to remind you that an earnings press release and slide presentation related to this call are available on our website at

Before we begin, please take a moment to read the forward-looking statements on our earnings press release. During today's call, we will make certain predictive statements that reflect our current views about future performance and financial results. We base these statements and certain assumptions and expectations of future events that are subject to risks and uncertainties. Our most recent Form 10-K lists some of our most important risk factors that could cause actual results to differ from our predictions.

And with that, I'll now turn the program over to Don Casey, Chief Executive Officer, Dentsply Sirona.

Donald M. Casey

Thanks, John, and thank all of you for joining us on our earnings call. As you can see from our materials, we had a solid third quarter. Our results show that we are making progress against our restructuring plan, as measured by both our financial results, as well as important executional milestones.

Looking at the financial highlights from the quarter, internal growth reached 7.5%, above our expectations and higher than anticipated Primescan shipments and improved consumable sales. A combination of solid sales growth and continued operating discipline contributed to a 510 basis points expansion in our operating income margin versus the prior year. Non-GAAP EPS for the quarter was $0.57, up 51% versus year ago. Operating cash flow was strong at $159 million, up 27% versus the prior year.

In addition to the financial performance, we saw progress in many important areas. We had a robust product launch program in the third quarter. The organization launched new loyalty program as part of our overhaul of the promotional strategy and we saw progress in multiple countries in building out our sales force effectiveness program. On the corporate governance front, we announced the appointment of Janet Vergis to our Board of Directors. So overall, while we understand there is a lot to be done, the third quarter shows continued progress and gives us reason to be optimistic about our future.

I will now hand the presentation over to Jorge to review our financial results.

Jorge Gomez

Thank you, Don. Before I dive into the details of our performance. I'd like to take a moment to express how excited I am to join Dentsply Sirona. We are well positioned in a very attractive and evolving space in healthcare. The commitment of the Board of Directors and approximately 15,000 associates around the globe to use our scale and capabilities to enable growth is very clear to me. We have tremendous products, integrated solutions and a great commitment