Item 2.02 Results of Operations and Financial Condition.
The following information is furnished pursuant to Item 2.02, "Results of Operations and Financial Condition."
OnApril 19, 2022 ,DENTSPLY SIRONA Inc. (the "Company") issued a press release announcing select preliminary financial results, including net sales,U.S. generally accepted accounting principles ("GAAP") diluted earnings per share and adjusted earnings per share for the first quarter endingMarch 31, 2022 . A copy of the Company's press release is attached hereto as Exhibit 99.1 and is hereby incorporated by reference. The Company has provided certain measures in the press release that are not calculated in accordance with GAAP and therefore represent Non-GAAP measures. These Non-GAAP measures may differ from those used by other companies and should not be considered in isolation from, or as a substitute for, measures of financial performance prepared in accordance with GAAP. These Non-GAAP measures are used by the Company to measure its performance and may differ from those used by other companies. Management believes that these Non-GAAP measures are helpful as they provide another measure of the results of operations, and are frequently used by investors and analysts to evaluate the Company's performance exclusive of certain items that impact the comparability of results from period to period, and which may not be indicative of past or future performance of the Company. The Company is not able to reconcile projected adjusted earnings per share (non-GAAP) to first quarter 2022 projected earnings per share (GAAP) without unreasonable efforts because it is not possible to predict with a reasonable degree of certainty the actual impact of the tax rate and related matters for the quarter endedMarch 31, 2022 . The unavailable information could have a significant impact on the Company's first quarter 2022 reported financial results.
Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
OnApril 19, 2022 , the Company announced thatDonald M. Casey Jr . has been terminated as the Company's Chief Executive Officer and has ceased to serve as a member of the Board of Directors of the Company, effective as ofApril 19, 2022 .Mr. Casey has served as the Company's Chief Executive Officer since joining the Company inFebruary 2018 . The Company has initiated a search process to identify its next Chief Executive Officer. Effective immediately,John P. Groetelaars , who serves as a member of the Board of Directors of the Company, has been named Interim Chief Executive Officer and principal executive officer.Mr. Groetelaars , age 56, served as President, CEO and a Board member at Hillrom fromMay 2018 until the company's acquisition by Baxter International, Inc. inDecember 2021 . At Hillrom,Mr. Groetelaars led a transformation of the business, successfully articulating and launching a new connected-care strategy and vision, growing the portfolio through seven acquisitions and one divestiture, and driving record financial performance. Prior to Hillrom,Mr. Groetelaars served as Executive Vice President and President of the Interventional Segment atBecton , Dickinson and Company following its acquisition ofC.R. Bard Inc. He previously served in a variety of progressive roles at C.R. Bard during his 10-year career there, including as a group president from 2015 to 2017. Prior to joining C.R. Bard,Mr. Groetelaars held various international leadership positions inCanada ,Denmark and theUnited Kingdom at Boston Scientific Corporation from 2001 until 2008. Prior to joining Boston Scientific,Mr. Groetelaars held positions in general management, marketing, business development and sales withGuidant Corporation and with Eli Lilly.Mr. Groetelaars earned a Bachelor of Science in Mechanical Engineering fromKettering University and an MBA fromColumbia Business School . Additionally, effective on the earlier of (i) the effective date of termination of employment of the individual who was serving as the Company's Chief Financial Officer and (ii) the close of business onMay 6, 2022 ,Barbara W. Bodem will become the Company's Interim Chief Financial Officer and principal financial officer.Ms. Bodem , age 54, most recently served as Senior Vice President and Chief Financial Officer for Hillrom, where she was responsible for both Financial and Information Technology and oversaw portfolio transformation and performance acceleration. She also served as Interim CIO during the pandemic. Prior to her positions at Hillrom,Ms. Bodem served as Senior Vice President of Finance for Mallinckrodt Pharmaceuticals, Vice President of Finance, Global Commercial Operations for Hospira, and at several positions of increasing responsibility at Eli Lilly and Company, culminating in Chief Financial Officer, Lilly -------------------------------------------------------------------------------- Oncology.Ms. Bodem also has extensive Board experience, and currently serves as Audit Committee Chair for Turning Point Therapeutics, as a Director on Syneos' Board, and as a Director on Enovis Corporation's Board. She has also previously served as a board member for Invacare Corporation.Ms. Bodem earned and a Bachelor of Science in Finance with honors and minors in Economics and East Asian Studies, as well as an MBA fromIndiana University .
The Company has entered into interim employment agreements with each of
Mr. Groetelaars' Agreement provides thatMr. Groetelaars will serve as the Company's Interim Chief Executive Officer commencing onApril 19, 2022 and will report to the Company's Board of Directors.Mr. Groetelaars will cease to be the Company's Interim Chief Executive Officer on the first day a permanent or successor Chief Executive Officer approved by the Company's Board of Directors commences employment with the Company and, unless otherwise determined by the Company's Board of Directors,Mr. Groetelaars will cease to be employed by the Company on such date.Mr. Groetelaars' employment with the Company is "at-will," such that his employment may be terminated by the Company or byMr. Groetelaars at any time and for any reason. Pursuant toMr. Groetelaars' Agreement,Mr. Groetelaars will be granted an award of restricted share units ("RSUs") under the Company's 2016 Omnibus Incentive Plan, as amended and restated (the "Plan") having a grant date fair value of$7 million (the "Interim CEO Initial RSU Grant"). The number of shares subject to the Interim CEO Initial RSU Grant will be calculated by dividing (x)$7 million by (y) the closing price of a Company share as listed on The Nasdaq Global Select Market on the grant date. The Interim CEO Initial RSU Grant will vest monthly in six substantially equal installments, with the first vesting date occurring on the one month anniversary ofMr. Groetelaars' employment commencement date, such that 100% of the shares subject to the Interim CEO Initial RSU Grant will be vested on the sixth month anniversary ofMr. Groetelaars' employment commencement date (the "Interim CEO Final Vesting Date"), subject toMr. Groetelaars' continued employment with the Company on each applicable vesting date as Interim Chief Executive Officer. However, upon (i) the consummation of a Change in Control (as defined inMr. Groetelaars' Agreement) of the Company, (ii)Mr. Groetelaars ceasing to serve as the Company's Interim Chief Executive Officer, or (iii)Mr. Groetelaars' termination of employment with the Company, in each case, before the Interim CEO Final Vesting Date for any reason other than (x) a termination by the Company or its affiliates for "Cause" (as defined inMr. Groetelaars' Agreement) or (y) a voluntary resignation byMr. Groetelaars (excluding a termination ofMr. Groetelaars' employment with the Company due toMr. Groetelaars' death or disability), 100% of any then-unvested portion of the Interim CEO Initial RSU Grant will become vested, subject toMr. Groetelaars' timely execution and non-revocation of a release of claims. Generally, the termination ofMr. Groetelaars' employment or cessation of his service as Interim Chief Executive Officer, in each case, in connection with the appointment of a permanent Chief Executive Officer of the Company will result in the accelerated vesting of 100% of the then-unvested portion of the Interim CEO Initial RSU Grant. If, following the Interim CEO Final Vesting Date,Mr. Groetelaars continues to be employed by the Company as its Interim Chief Executive Officer under the Agreement, then as consideration forMr. Groetelaars' continued employment as the Company's Interim Chief Executive Officer through any monthly anniversary of the Interim CEO Final Vesting Date, the Company will grant toMr. Groetelaars an award of fully vested shares under the Plan on the first day of the calendar month following the applicable monthly anniversary of the Interim CEO Final Vesting Date (each, an "Interim CEO Subsequent Equity Grant"). Each Interim CEO Subsequent Equity Grant will have a grant date fair value of$1,166,667 , with the number of shares calculated by dividing (x)$1,166,667 by (y) the closing price of a Company share as listed on The Nasdaq Global Select Market on the grant date (or the immediately preceding trading date, if the grant date is not a trading date). However,Mr. Groetelaars' entitlement to any Interim CEO Subsequent Equity Grants will end, andMr. Groetelaars will have no further entitlement to any Company equity grants under the Agreement, following the earliest of (i) the appointment of a permanent Chief Executive Officer of the Company prior to an applicable monthly anniversary of the Interim CEO Final Vesting Date; (ii) Mr. Groeteleaars' termination of employment with the Company for any reason prior to an applicable monthly anniversary of the Interim CEO Final Vesting Date and (iii) the first day of the seventh full calendar month following the Interim CEO Final Vesting Date. To the extentMr. Groetelaars' employment as the Company's Interim Chief Executive Officer causes him to forfeit certain group health plan insurance coverage for him and his eligible dependents that he would otherwise have been entitled to receive in connection with his separation from a prior employer, the Company andMr. Groetelaars will make arrangements in good faith to compensate him for such forfeiture or provide him with substantially similar group health plan insurance coverage. The Company will also reimburseMr. Groetelaars for reasonable travel and business expenses incurred in the performance of his duties, including travel to any of the Company's offices other thanMr. Groetelaars' principal office, provided that, for all business air travel,Mr. Groetelaars will be entitled to travel by first class or business class commercial flights or private air travel.Mr. Groetelaars will not be eligible . . .
Item 7.01 Regulation FD Disclosure.
OnApril 19, 2022 , the Company issued a press release announcing thatMr. Casey has been terminated as the Company's Chief Executive Officer and has ceased to serve as a member of the Board of Directors of the Company, effective as ofApril 19, 2022 ; provided thatMr. Casey will remain employed by the Company throughMay 6, 2022 . A copy of the press release is attached hereto as Exhibit 99.1 and incorporated herein by reference. The information furnished in Items 7.01 and 9.01 to this Form 8-K, including Exhibit 99.1, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act") or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any other filing under the Securities Act of 1933 or the Exchange Act, except as expressly set forth by specific reference in such a filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits:
Exhibit No. Description 10.1 Interim Chief Executive Officer Employment
Agreement by and between DENTSPLY
SIRONA Inc. andJohn P. Groetelaars , dated April
16, 2022
10.2 Interim Chief Financial Officer Employment
Agreement by and between DENTSPLY
SIRONA Inc. andBarbara W. Bodem , datedApril 16, 2022 99.1DENTSPLY SIRONA Inc. press release, datedApril 19, 2022 104 Cover Page Interactive Date File (embedded
within the Inline XBRL Document)
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