DENTSPLY SIRONA Inc. (NASDAQ:XRAY) Q4 2022 Earnings Call Transcript

Jeff Johnson: Thank you. Good morning, guys. Glenn, maybe I can follow up just on that margin accretive comment on Wellspect. We get the EPS contribution annually maybe around $0.20 or so or at least in the ballpark there. And I just want to confirm that Wellspect is in guidance in keeping that for the full year as part of the current guidance. And I guess one other question tied to that is, if you were to get a big cash infusion, whether it was for this reason or any other reason, does that go to pay down debt? Does it go as a share buyback, or do you pump that right back into maybe potentially other acquisitions to drive that top line and kind of the dental portfolio going forward? Thank you.

Glenn Coleman: Jeff, thanks for the questions. First and foremost, I would say yes, Wellspect is included full year in our numbers. And again, we’re just at this point, evaluating our options around that business. So that business is included in our full year expectations. Obviously, if the business were to be divested, we’d have to think about what to do with those cash proceeds. We’re already very low levered. So that’s good news relative to what we could potentially do. But at this point in time, we’re not going to lay out any specific plans other than we would make the most appropriate decisions around how to offset any EPS dilution relative to the transaction. Thank you.

Jeff Johnson: Thank you. And then maybe one follow-up question, if I can. Just you talked about adding to the sales force here in a few different areas and trying to increase the commercial hub there. I could pick on, I guess, or pick out a couple of different areas, whether it’s within equipment or orthodontics or implants, but I’ll try to narrow it down just the implants here. You’re a number five player in implants, probably under-indexed, although you could push back on that kind of under-indexed in value implants are under-indexed and fully tapered implants, which those are the two kind of bigger growth areas recently. So if you add sales reps, I get it, but what are you doing on the product side to really if Implants is one of keys to the turnaround here. How do you end up winning in Implants, Simon, as you kind of talked about here recently? Thanks.

Simon Campion: Yes. Thanks, Jeff. So, just a couple of points on that. I think historically, our focus on paying for growth hasn’t been what we would have liked, so our commission plan changes — our commission plans have changed to more reflect that we want to drive growth from our commercial teams. So, we’re certainly getting a lot more visibility from them to different parts of our portfolio. And the feedback we’ve received thus far on those commission plan changes have been very positive. People want to get paid when they perform. So we do expect that. In relation to our portfolio, as I noted, I think in my response to Elizabeth’s question, we are now getting visibility. We now have visibility to where we spend our dollars and what returns we get from them.

So to your point about Implants, it’s a fast-growing segment, an opportunity to differentiate ourselves where we have a sales force that is direct, then we would more likely invest in spaces like that than elsewhere. What we need to make sure is that we get the — develop products that are meaningful for our customers. I think we’ve just launched some of our taper products as well, which have resonated with customers up there. So I think we’re already doing some of the work that you’ve alluded to. And we will absolutely be reinforcing our commitment to appropriate R&D in the appropriate spaces moving forward.

Jeff Johnson: Thank you.

Operator: Thank you. One moment for our next question please. And it comes from the line of Jon Block with Stifel. Please proceed.