• In the financial year 2004/05, sales increased by 14 percent to 365 million euros
• EBITDA rose 17 percent to 84 million euros
• Successful development of the past years continued
• Sirona seeks a listing on NASDAQ National Market
Sirona, one of the world's leading manufacturers of dental equipment, increased sales and adjusted EBITDA for the financial year ended September 30, 2005. Sales rose to 365 million euros, an increase of 14 percent, compared to 320 million euros for the previous financial year. Adjusted EBITDA increased to 84 million euros, or 17 percent, compared to 71 million euros. Cash flow from operating activities, excluding cash-effective interest and tax expenses, increased by 35 percent to 80 million euros, compared to 59 million euros in the previous year.
The company recorded a net after tax loss of approx. 29 million euros. As in 2003/04, this is due to the change of ownership: Sirona management and the Chicago-based private equity investors,
Madison Dearborn Partners and Beecken Petty O’Keefe, acquired Sirona in June 2005. The transaction had a significant non-operating impact on the balance sheet and the profit and loss statement due to acquisition accounting as well as transaction and financing costs.
Considerable growth in the US
For the first time, Sirona’s US revenues rose to the level of German sales increasing currency adjusted by 43 percent to 125 million US dollars. German sales grew 9 percent to 99 million euros. Sirona has also increased its sales to other European markets to 88 million euros, while revenues outside of Europe and the US rose to 78 million euros. With the establishment of own subsidiaries Sirona strengthened its distribution networks in Japan and Australia. Since November 2004, the company has its own production facility in Foshan, China, manufacturing and selling six different treatment centers to the Asian and African markets under the brand name Fona. Sirona employed 1,699 people at financial year end. The number of employees outside of Germany has more than doubled, amounting to 23 percent of total staff.
CAD/CAM and imaging systems are particularly successful
One of the main growth drivers were CEREC and inLab. Sales rose by 34 percent to 133 million euros. Currency adjusted growth was 45 percent in the US. CAD/CAM-based tooth restorations increasingly become a standard procedure in dental practices. Imaging systems and related software sales increased by 20 percent to 79 million euros thanks to its new digital panoramic line
ORTHOPHOS XG. Treatment center and instrument sales totaled as in the previous year 152 million euros. Growth was seen for the M1+ treatment center, the ProFeel+ preventive care concept and the instrument business increasing by 19 percent in the US. Sirona invested 26 million euros, or 7.2 percent of annual sales, in research and development.
Outlook: further expansion
In September 2005, Sirona entered into a definitive agreement to merge in a stock-for-stock exchange transaction with US based Schick Technologies, Inc. (OTC BB: SCHK), an innovator in digital radiographic imaging systems and devices for the dental industry. Schick has applied for listing on the NASDAQ National Market. Upon completion of the transaction, the combined company will be named Sirona Dental Systems, Inc. For further information regarding the proposed transaction, please refer to the filings made by Schick with the U.S. Securities and Exchange Commission and available at www.sec.gov. “Last year’s results demonstrate that our customers respond very well to Sirona’s innovative product lines. For the current year, we anticipate continued positive industry dynamics, not only in our most important market, the United States. Sirona is well positioned to
benefit from this development. The proposed merger with Schick and the associated stock market listing will provide additional opportunities,” stated Jost Fischer, Chairman, President and Chief
Executive Officer of Sirona.