Tuesday, November 15, 2022

Dentsply Sirona, the world’s largest supplier of dental equipment, filed its latest quarterly report this week. That gives us an excellent opportunity to review how Calcbench can help you study financial restatements — because Dentsply had plenty of facts it had to restate.

For those who don’t know the history, Dentsply Sirona ($XRAY) disclosed back in May that it had begun an investigation into financial improprieties involving several current and former employees. That to an eye-popping side story about Dentsply’s former CFO, Jorge Gomez, who got fired one day into his new job as CFO of Moderna when Dentsply disclosed its investigation — but we digress. The news here is what Dentsply said in its latest quarterly report, filed on Monday.

First, management gave a summary of its investigation. In the company’s North America operations, the investigation concluded that several former executives, including the former CEO and the former CFO (Gomez, the one fired from Moderna) “did not maintain and promote an appropriate control environment focused on compliance in areas of the company’s business, nor did they sufficiently promote, monitor or enforce adherence to [Dentsply’s] Code of Ethics and Business Conduct.”

The investigation also concluded that executives in Dentsply’s China operations committed intentional wrongdoing by misleading the company’s local accounting teams, and then “lacking truthfulness” in providing information when Dentsply’s board launched its investigation.

That’s the investigation, anyway. Dentsply also restated results for the three- and nine-month periods ending Sept. 30, 2021; and for the entire fiscal year that ended on Dec. 31, 2021.

One could find those restated details by digging through Dentsply Sirona’s footnote disclosures — but who wants to do that? It’s painstaking and causes eyestrain. Calcbench devised a simpler way.

Looking for Revised Facts

To find restated financial disclosures, start by looking at the income statement (or balance sheet, as the case may be) using our Company-in-Detail page. Restated financial disclosures can be found using the “Highlight Revisions” tab on the right side of your screen.

For example, Figure 1, below, shows Dentsply Sirona’s disclosures after they have been restated, but before using our Highlight Revisions feature to see exactly what those restatements were. (We also circled the Highlight Revisions tab in blue.)

Figure 2, below, shows what happens when you do activate the Highlight Revisions tab. All line items that were revised are highlighted for easy follow-up.

That’s a lot of revised facts, but then, Dentsply had a rather far-reaching restatement. Other companies might revise only a few facts, and if a company doesn’t need to revise anything then the Highlight Revisions tab won’t work at all because there’s nothing to see.

You’ll also notice that every highlighted revision has a plus sign next to it. Click on that sign and a box will appear that explains the timing and the size of the revision. Figure 3, below, shows the result when we clicked on the net sales disclosure for Q3 2021.

As you can see from the box, Denstply originally reported $1.069 billion for the quarter back in November 2021. Now, after the investigation and restatement, that number has been cut to $1.04 billion.

Just another way that Calcbench tries to track all financial disclosures in the known universe, and then present them to you in an easy-to-use, easy-to-digest format. Much less painful than a root canal!


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