DENTSPLY SIRONA(XRAY)2024-11-07 21:01Financial Performance - Dentsply Sirona reported a net loss of $495 million for the three months ended September 30, 2024, compared to a net loss of $266 million for the same period in 2023[11]. - Total comprehensive loss attributable to Dentsply Sirona was $455 million for the three months ended September 30, 2024, versus $303 million for the same period in 2023[11]. - The company reported a net loss of $494 million for the quarter ending June 30, 2024, compared to a net income of $18 million for the previous quarter[15]. - For the nine months ended September 30, 2024, Dentsply Sirona reported a net loss of $482 million, compared to a net loss of $204 million in the same period of 2023[19]. - The total comprehensive loss for the quarter ending June 30, 2024, was $(494) million, reflecting ongoing challenges in the market[15]. - The company reported a basic loss per common share of $(2.35) for the nine months ended September 30, 2024, compared to $(0.94) for the same period in 2023[40]. Cash and Assets - Cash and cash equivalents decreased to $296 million as of September 30, 2024, down from $334 million at December 31, 2023[13]. - Total current assets were $1,921 million as of September 30, 2024, compared to $1,973 million at December 31, 2023[13]. - Dentsply Sirona's total equity decreased to $2,490 million as of September 30, 2024, from $3,294 million at December 31, 2023[13]. - Total liabilities increased to $4,136 million as of September 30, 2024, from $4,076 million at December 31, 2023[13]. - The company had $422 million in notes payable and current portion of long-term debt as of September 30, 2024, compared to $322 million at December 31, 2023[13]. Sales and Revenue - Total net sales for the nine months ended September 30, 2024, were $2,888 million, a decrease of 2.2% from $2,953 million in 2023[26]. - Total net sales for the three months ended September 30, 2024, were $951 million, a slight increase from $947 million in the same period of 2023[45]. - The Essential Dental Solutions segment saw net sales of $1,108 million for the nine months ended September 30, 2024, slightly down from $1,110 million in 2023[26]. - The company faced a $15 million reduction in sales of direct-to-consumer orthodontics products due to legislative changes impacting its business model[174]. Impairments and Restructuring - Dentsply Sirona recorded goodwill and intangible asset impairments of $510 million for the nine months ended September 30, 2024, compared to $307 million in 2023[19]. - The company recorded a goodwill impairment charge of $504 million for the three months ended September 30, 2024, primarily related to Orthodontic Aligner Solutions and Implant & Prosthetic units[195]. - Restructuring costs for the three months ended September 30, 2024, were $23 million, compared to $6 million in the same period of 2023; for the nine months, restructuring costs totaled $45 million, down from $70 million[196]. Segment Performance - Adjusted operating income for Connected Technology Solutions was $16 million for the three months ended September 30, 2024, down from $22 million in 2023, a decrease of 27.3%[46]. - The Essential Dental Solutions segment reported adjusted operating income of $132 million for the three months ended September 30, 2024, compared to $115 million in 2023, an increase of 14.8%[46]. - Orthodontic and Implant Solutions segment adjusted operating income decreased due to unfavorable geographic mix, higher distribution and manufacturing costs, increased advertising and selling costs, and higher headcount[201]. Legal and Compliance - The Company is involved in multiple legal proceedings, including a putative class action alleging violations of U.S. securities laws related to revenue recognition from June 9, 2021, to May 9, 2022[111]. - The Company has received a shareholder derivative suit alleging breaches of fiduciary duties and insider trading by current and former executives, with similar claims across multiple derivative litigations[113][116][118]. - The Company intends to vigorously defend against all pending lawsuits, although it acknowledges that legal expenses may be significant[123]. Market Conditions and Outlook - The Company expects continued inflationary pressure on raw material and wage costs through the remainder of 2024, impacting margins[152]. - Germany represented 10% of the Company's sales for the nine months ended September 30, 2024, with ongoing recessionary pressures affecting demand for new dental equipment[153]. - The company anticipates that distributor inventory levels for consumable products will return to historical averages by the end of the fourth quarter of 2024[179].