November 21, 2014 06:30 AM Eastern Standard Time
LONG ISLAND CITY, N.Y.–(BUSINESS WIRE)–Sirona (Nasdaq: SIRO), the dental technology leader, today announced its financial results for the quarter ended September 30, 2014.
“Reconciliation of GAAP and non-GAAP Information (unaudited)”
Fourth Quarter Fiscal 2014 vs. Fourth Quarter Fiscal 2013 Financial Results
Revenue was $290.0 million, an increase of $11.4 million or 4.1% (up 4.0% on a constant currency basis). The Company's business segments performed as follows: Treatment Centers increased 28.2% (up 28.0% on a constant currency basis), Instruments increased 12.8% (up 12.6% on a constant currency basis), Imaging Systems decreased 0.2% (down 0.3% on a constant currency basis), and CAD/CAM Systems decreased 5.0% (down 5.1% on a constant currency basis).
Revenue in the United States decreased 8.3%, and revenues outside the United States increased 8.9% (up 8.8% constant currency). As expected, u.s. revenues were impacted by late orders in the third quarter. New user demand for both Imaging and CAD/CAM remains robust, but could not compensate for a large trade-up program in the fourth quarter of last year. Sales growth in international markets was particularly strong in Germany and Asia Pacific.
Gross profit was $159.9 million, up $16.6 million. Gross profit margin was 55.1% in the fourth quarter of Fiscal 2014, compared to 51.4% in the prior year. The change in gross profit margin as a percent of sales was mainly driven by an improved product and regional sales mix combined with cost reductions.
Net income attributable to Sirona Dental Systems, Inc. for the fourth quarter of 2014 was $ 42.7 million, or $0.76 per diluted share, versus $36.2 million, or $0.65 per diluted share in the prior year period. Non-GAAP adjusted earnings per diluted share for the fourth quarter of 2014 was $0.93 compared to $0.81 in the prior year quarter, or an increase of 14.3%. 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, 2014, the Company had cash and cash equivalents of $382.8 million and total debt of $79.5 million, resulting in net cash of $303.3 million. This compares to net cash of $217.5 at June 30, 2014 and $166.3 million at September 30, 2013.
Jeffrey Slovin, President and CEO of Sirona commented: “We closed out the year with a solid fourth quarter, driven by strength in international markets, particularly in Germany and Asia Pacific. Our margin expansion enabled strong double digit earnings growth on 4% revenue growth.”
Mr. Slovin continued: “Fiscal 2014 was another successful year for Sirona filled with many accomplishments. We drove leverage to the bottom line, strengthened our financial position and global distribution network and invested in our future. Innovation continues to drive demand as we grew our top line 6.4% in local currencies on the heels of 13.8% the year before. Sirona launched many successful new products and has been instrumental in the continued adoption of digital technologies. Our CEREC user community crossed a significant milestone, with now over 41,000 systems sold globally. Our strong brand, world class sales and service infrastructure and full product pipeline best position Sirona to lead dentistry in the digital era.”
