- Total net sales of $3.0 billion up 76.2% versus prior year
and up 21.2% versus 2019
- GAAP diluted EPS from continuing operations of $1.10 versus
prior-year GAAP loss per diluted share from continuing operations
of $0.08
- Non-GAAP diluted EPS from continuing operations of $1.11
versus prior-year non-GAAP diluted EPS from continuing operations
of $0.00
- Reflecting strong first-half financial results, raises
guidance for 2021 non-GAAP diluted EPS from continuing operations
to be at or above $3.85, representing a floor for fiscal
2021
Henry Schein, Inc. (Nasdaq: HSIC), the world’s largest provider
of health care solutions to office-based dental and medical
practitioners, today reported record second-quarter financial
results from continuing operations. Results from continuing
operations exclude contributions from Henry Schein’s former Animal
Health business, which was spun off in February 2019 to form a new
publicly traded company, Covetrus (Nasdaq: CVET).
Total net sales for the quarter ended June 26, 2021, were $3.0
billion, up 76.2% compared with the second quarter of 2020, when a
significant number of dental and medical practices suspended
activity because of the COVID-19 pandemic. The 76.2% increase
included 65.5% internal growth in local currencies, 5.5% growth
from acquisitions and 5.2% growth related to foreign currency
exchange. When compared with the pre-pandemic second quarter of
2019, sales were up 21.2% and included 15.2% internal growth in
local currencies, 4.2% growth from acquisitions and 1.8% growth
related to foreign currency exchange. Exhibit A provides details of
sales growth, including comparisons with 2020. Note that Exhibit
A-1 contains details of sales performance compared with 2019.
GAAP net income attributable to Henry Schein, Inc. from
continuing operations for the second quarter of 2021 was $155.7
million, or $1.10 per diluted share, compared with prior-year GAAP
net loss from continuing operations of $11.4 million, or $0.08 per
diluted share. Non-GAAP net income from continuing operations for
the second quarter of 2021 was $157.3 million, or $1.11 per diluted
share, compared with prior-year non-GAAP net income from continuing
operations of $0.6 million, or $0.00 per diluted share. Exhibit B
provides a reconciliation of GAAP net income and diluted EPS from
continuing operations to non-GAAP net income and diluted EPS from
continuing operations.
“We are pleased to report record second-quarter financial
results as we continue to execute on our key strategies.
Strengthening demand in the global dental and medical markets drove
strong year-over-year increases in sales versus the prior year when
many of our customers had temporarily closed their offices.
Notably, compared with a pre-COVID-19 environment in the second
quarter of 2019, Henry Schein’s worldwide internal sales in local
currencies increased by 15.2%,” said Stanley M. Bergman, Chairman
of the Board and Chief Executive Officer of Henry Schein. “We are
also pleased with operating margin expansion that reflects a
favorable product mix as well as operating expense leverage.”
Mr. Bergman continued, “With solid execution in the first half
of 2021 and a favorable outlook for the remainder of the fiscal
year, we are raising our guidance for 2021 non-GAAP diluted EPS
from continuing operations to be at or above $3.85, representing a
floor for fiscal 2021. We will continue to monitor any potential
impact to our business as a result of COVID-19.”
Global Dental sales for the second quarter of 2021 of $1.9
billion increased 102.9% versus the prior-year period. In local
currencies, internally generated sales increased 87.0% with 7.3%
growth from acquisitions and 8.6% growth related to foreign
currency exchange. The 87.0% internal growth in local currencies
included an increase of 105.3% in North America and an increase of
64.9% internationally.
Global Dental consumable merchandise internal sales increased
90.5% in local currencies. Excluding sales of personal protective
equipment (PPE) and COVID-19 related products, growth was 96.2%. In
North America, dental consumable merchandise internal sales in
local currencies increased 112.5%, or 119.1% excluding sales of PPE
and COVID-19 related products, and dental equipment internal sales
in local currencies increased 82.0%. Internationally, dental
consumable merchandise internal sales in local currencies increased
64.4%, or 70.2% excluding sales of PPE and COVID-19 related
products, and dental equipment internal sales in local currencies
increased 66.6%.
“Global dental sales experienced strong growth, with gains in
both consumable merchandise and equipment. More specifically,
consumable merchandise sales in North America and in our
international markets experienced double-digit growth versus the
same period in 2019,” noted Mr. Bergman. “Compared with the second
quarter of 2019, North America dental equipment sales growth was
modest, primarily reflecting delays with certain U.S. manufacturers
of chairs, units, and lights, resulting in longer lead times. We
reported strong equipment growth in our international markets with
no significant delays. Our overall dental sales performance
reflects a continued recovery in patient traffic compared to
pre-pandemic levels, and we remain optimistic about dental
practices investing in technology and equipment over the long
term.”
Global Medical sales for the second quarter of 2021 of $904.8
million increased 46.5% versus the comparable period last year,
consisting of 43.5% internal growth in local currencies, 2.6%
growth from acquisitions and 0.4% growth related to foreign
currency exchange. Excluding sales of PPE and COVID-19 related
products, internal sales in local currencies increased 39.1%.
“We believe our medical sales continued to outpace end-market
performance with broad-based growth versus the same period in 2019,
including growth in medical-surgical, equipment, and laboratory
product sales. We continue to expand our medical business beyond
core distribution with a differentiated solutions offering that
serves low acuity segments of the market, which is the most
cost-efficient setting for delivering care,” remarked Mr.
Bergman.
Global Technology and Value-Added Services sales of $152.1
million increased 44.5% versus the prior-year quarter and included
33.0% internal sales growth in local currencies, 8.9% growth from
acquisitions and 2.6% growth related to foreign currency
exchange.
“Global Technology and Value-Added Services sales continued to
improve from the early days of the pandemic when patient traffic
was hardest hit. During the second quarter, Henry Schein One, the
largest contributor to sales in this business, reported record-high
quarterly revenue. In addition, our financial services business
delivered strong growth, primarily driven by practice transitions
revenue,” noted Mr. Bergman.
Stock Repurchase Plan
During the second quarter of 2021, the Company repurchased
approximately 1.5 million shares of its common stock at an average
price of $72.98 per share, for a total of approximately $113
million. The impact of the repurchase of shares on second-quarter
diluted EPS was immaterial. At the end of the second quarter, Henry
Schein had approximately $400 million authorized and available for
future stock repurchases.
Year-to-Date Financial Results
Net sales from continuing operations for the first half of 2021
were $5.9 billion, an increase of 43.2% compared with the first
half of 2020. The 43.2% increase included 35.6% internal growth in
local currencies, 4.2% growth from acquisitions and 3.4% growth
related to foreign currency exchange. When compared with the first
half of 2019, sales increased 22.5% and included 16.3% internal
growth in local currencies, 4.8% growth from acquisitions and 1.4%
growth related to foreign currency exchange.
Net income attributable to Henry Schein, Inc. from continuing
operations for the first half of 2021 was $321.7 million, or $2.26
per diluted share, compared with net income from continuing
operations of $119.2 million, or $0.84 per diluted share, for the
first half of 2020. Non-GAAP net income from continuing operations
for the first half of 2021 was $335.1 million, or $2.35 per diluted
share, compared with non-GAAP net income from continuing operations
of $134.7 million, or $0.94 per diluted share, for the first half
of 2020. Non-GAAP results for the first half of 2021 and 2020
exclude certain items noted in Exhibit B, which provides a
reconciliation of GAAP net income and diluted EPS from continuing
operations to non-GAAP net income and diluted EPS from continuing
operations.
Financial Guidance
Henry Schein today raised guidance for 2021 non-GAAP diluted EPS
from continuing operations. At this time, the Company is not
providing guidance for 2021 GAAP diluted EPS from continuing
operations as it is unable to provide without unreasonable effort
an estimate of costs related to an ongoing restructuring
initiative, including the corresponding tax effect. Financial
guidance is as follows:
- 2021 non-GAAP diluted EPS from continuing operations
attributable to Henry Schein, Inc. is now expected to be at or
above $3.85, representing a floor for fiscal 2021. This compares
with previous guidance for non-GAAP diluted EPS from continuing
operations attributable to Henry Schein, Inc. to be at or above
$3.70.
- Guidance for 2021 non-GAAP diluted EPS attributable to Henry
Schein, Inc. is for current continuing operations as well as
completed or previously announced acquisitions, and does not
include the impact of future share repurchases, potential future
acquisitions, if any, or restructuring expenses. Guidance also
assumes foreign exchange rates that are generally consistent with
current levels, and that end markets remain stable and are
consistent with current market conditions. Guidance assumes no
material adverse market changes associated with COVID-19.
Adjustments to Projected 2021 Non-GAAP Diluted EPS
The Company has provided guidance for 2021 non-GAAP diluted EPS
from continuing operations, as noted above. A reconciliation to the
Company’s projected 2021 diluted EPS from continuing operations
prepared on a GAAP basis is not provided because the Company is
unable to provide without unreasonable effort an estimate of costs
related to an ongoing restructuring initiative to mitigate stranded
costs and drive additional operating efficiencies, including the
corresponding tax effect that will be included in the Company’s
2021 diluted EPS from continuing operations prepared on a GAAP
basis. The inability to provide these reconciliations is due to the
uncertainty and inherent difficulty of predicting the occurrence,
magnitude, financial impact and timing of related costs. Management
does not believe these items are representative of the Company’s
underlying business performance. For the same reasons, the Company
is unable to address the probable significance of the unavailable
information, which could be material to future results.
Second-Quarter 2021 Conference Call Webcast
The Company will hold a conference call to discuss
second-quarter 2021 financial results today, beginning at 10:00
a.m. Eastern time. Individual investors are invited to listen to
the conference call through Henry Schein’s website by visiting
www.henryschein.com/IRwebcasts. In addition, a replay will be
available beginning shortly after the call has ended for a period
of one week.
About Henry Schein, Inc.
Henry Schein, Inc. (Nasdaq: HSIC) is a solutions company for
health care professionals powered by a network of people and
technology. With approximately 21,000 Team Schein Members
worldwide, the Company's network of trusted advisors provides more
than 1 million customers globally with more than 300 valued
solutions that help improve operational success and clinical
outcomes. Our Business, Clinical, Technology and Supply Chain
solutions help office-based dental and medical practitioners work
more efficiently so they can provide quality care more effectively.
These solutions also support dental laboratories, government and
institutional health care clinics, as well as other alternate care
sites.
Henry Schein operates through a centralized and automated
distribution network, with a selection of more than 120,000 branded
products and Henry Schein private-brand products in stock, as well
as more than 180,000 additional products available as special-order
items.
A FORTUNE 500 Company and a member of the S&P 500® index,
Henry Schein is headquartered in Melville, N.Y., and has operations
or affiliates in 32 countries and territories. The Company's sales
reached $10.1 billion in 2020, and have grown at a compound annual
rate of approximately 12 percent since Henry Schein became a public
company in 1995.
For more information, visit Henry Schein at www.henryschein.com,
Facebook.com/HenrySchein, and @HenrySchein on Twitter.
Cautionary Note Regarding Forward-Looking Statements and Use
of Non-GAAP Financial Information
In accordance with the “Safe Harbor” provisions of the Private
Securities Litigation Reform Act of 1995, we provide the following
cautionary remarks regarding important factors that, among others,
could cause future results to differ materially from the
forward-looking statements, expectations and assumptions expressed
or implied herein. All forward-looking statements made by us are
subject to risks and uncertainties and are not guarantees of future
performance. These forward-looking statements involve known and
unknown risks, uncertainties and other factors that may cause our
actual results, performance and achievements or industry results to
be materially different from any future results, performance or
achievements expressed or implied by such forward-looking
statements. These statements include EPS guidance and are generally
identified by the use of such terms as “may,” “could,” “expect,”
“intend,” “believe,” “plan,” “estimate,” “forecast,” “project,”
“anticipate,” “to be,” “to make” or other comparable terms. A
fuller discussion of our operations, financial condition and status
of litigation matters, including factors that may affect our
business and future prospects, is contained in documents we have
filed with the United States Securities and Exchange Commission, or
SEC, including our Annual Report on Form 10-K, and will be
contained in all subsequent periodic filings we make with the SEC.
These documents identify in detail important risk factors that
could cause our actual performance to differ materially from
current expectations. Forward looking statements include the
overall impact of the Novel Coronavirus Disease 2019 (COVID-19) on
the Company, its results of operations, liquidity, and financial
condition (including any estimates of the impact on these items),
the rate and consistency with which dental and other practices
resume or maintain normal operations in the United States and
internationally, expectations regarding personal protective
equipment (“PPE”) and COVID-19 related product sales and inventory
levels and whether additional resurgences or variants of the virus
will adversely impact the resumption of normal operations, the
impact of restructuring programs as well as of any future
acquisitions, and more generally current expectations regarding
performance in current and future periods. Forward looking
statements also include the (i) ability of the Company to make
additional testing available, the nature of those tests and the
number of tests intended to be made available and the timing for
availability, the nature of the target market, as well as the
efficacy or relative efficacy of the test results given that the
test efficacy has not been, or will not have been, independently
verified under normal FDA procedures and (ii) potential for the
Company to distribute the COVID-19 vaccines and ancillary
supplies.
Risk factors and uncertainties that could cause actual results
to differ materially from current and historical results include,
but are not limited to: risks associated with COVID-19 and any
variants thereof, as well as other disease outbreaks, epidemics,
pandemics, or similar wide spread public health concerns and other
natural disasters or acts of terrorism; our dependence on third
parties for the manufacture and supply of our products; our ability
to develop or acquire and maintain and protect new products
(particularly technology products) and technologies that achieve
market acceptance with acceptable margins; transitional challenges
associated with acquisitions, dispositions and joint ventures,
including the failure to achieve anticipated synergies/benefits;
financial and tax risks associated with acquisitions, dispositions
and joint ventures; certain provisions in our governing documents
that may discourage third-party acquisitions of us; effects of a
highly competitive (including, without limitation, competition from
third-party online commerce sites) and consolidating market; the
potential repeal or judicial prohibition on implementation of the
Affordable Care Act; changes in the health care industry; risks
from expansion of customer purchasing power and multi-tiered
costing structures; increases in shipping costs for our products or
other service issues with our third-party shippers; general global
macro-economic and political conditions, including international
trade agreements and potential trade barriers; failure to comply
with existing and future regulatory requirements; risks associated
with the EU Medical Device Regulation; failure to comply with laws
and regulations relating to health care fraud or other laws and
regulations; failure to comply with laws and regulations relating
to the confidentiality of sensitive personal information or
standards in electronic health records or transmissions; changes in
tax legislation; litigation risks; new or unanticipated litigation
developments and the status of litigation matters; cyberattacks or
other privacy or data security breaches; risks associated with our
global operations; our dependence on our senior management, as well
as employee hiring and retention; and disruptions in financial
markets. The order in which these factors appear should not be
construed to indicate their relative importance or priority.
We caution that these factors may not be exhaustive and that
many of these factors are beyond our ability to control or predict.
Accordingly, any forward-looking statements contained herein should
not be relied upon as a prediction of actual results. We undertake
no duty and have no obligation to update forward-looking
statements.
Included within the press release are non-GAAP financial
measures that supplement the Company’s Consolidated Statements of
Income prepared under generally accepted accounting principles
(GAAP). These non-GAAP financial measures adjust the Company’s
actual results prepared under GAAP to exclude certain items. In the
schedules attached to this press release, the non-GAAP measures
have been reconciled to and should be considered together with the
Consolidated Statements of Income. Management believes that
non-GAAP financial measures provide investors with useful
supplemental information about the financial performance of our
business, enable comparison of financial results between periods
where certain items may vary independent of business performance
and allow for greater transparency with respect to key metrics used
by management in operating our business. These non-GAAP financial
measures are presented solely for informational and comparative
purposes and should not be regarded as a replacement for
corresponding, similarly captioned, GAAP measures.
HENRY SCHEIN, INC. CONSOLIDATED STATEMENTS
OF INCOME (in thousands, except per share data) (unaudited)
Three Months Ended
Six Months Ended
June 26,
June 27,
June 26,
June 27,
2021
2020
2021
2020
Net sales
$
2,967,223
$
1,684,399
$
5,892,184
$
4,113,270
Cost of sales
2,077,472
1,230,133
4,111,582
2,912,990
Gross profit
889,751
454,266
1,780,602
1,200,280
Operating expenses:
Selling, general and administrative
678,801
445,765
1,336,793
1,013,127
Restructuring costs
604
15,934
3,535
20,721
Operating income (loss)
210,346
(7,433
)
440,274
166,432
Other income (expense):
Interest income
1,357
1,997
3,340
5,187
Interest expense
(6,376
)
(10,486
)
(12,861
)
(18,298
)
Other, net
354
(291
)
663
(511
)
Income (loss) from continuing operations
before taxes, equity in earnings of affiliates and noncontrolling
interests
205,681
(16,213
)
431,416
152,810
Income tax benefit (expense)
(48,027
)
950
(104,712
)
(36,960
)
Equity in earnings of affiliates
6,323
1,411
12,201
4,145
Net income (loss) from continuing
operations
163,977
(13,852
)
338,905
119,995
Income from discontinued operations, net
of tax
-
585
-
303
Net income (loss)
163,977
(13,267
)
338,905
120,298
Less: Net (income) loss attributable to
noncontrolling interests
(8,261
)
2,470
(17,192
)
(834
)
Plus: Net loss attributable to
noncontrolling interest from discontinued operations
-
-
-
-
Net income (loss) attributable to Henry
Schein, Inc.
$
155,716
$
(10,797
)
$
321,713
$
119,464
Amounts attributable to Henry Schein
Inc.:
Continuing operations
$
155,716
$
(11,382
)
$
321,713
$
119,161
Discontinued operations
-
585
-
303
Net income (loss) attributable to Henry
Schein, Inc.
$
155,716
$
(10,797
)
$
321,713
$
119,464
Earnings (loss) per share from
continuing operations attributable to Henry Schein, Inc.:
Basic
$
1.11
$
(0.08
)
$
2.28
$
0.84
Diluted
$
1.10
$
(0.08
)
$
2.26
$
0.84
Earnings per share from discontinued
operations attributable to Henry Schein, Inc.:
Basic
$
-
$
-
$
-
$
-
Diluted
$
-
$
-
$
-
$
-
Earnings (loss) per share attributable
to Henry Schein, Inc.:
Basic
$
1.11
$
(0.08
)
$
2.28
$
0.84
Diluted
$
1.10
$
(0.08
)
$
2.26
$
0.84
Weighted-average common shares
outstanding:
Basic
140,358
142,350
141,316
142,654
Diluted
141,657
142,350
142,538
142,654
HENRY SCHEIN, INC. CONSOLIDATED BALANCE
SHEETS (in thousands, except share and per share data)
June 26,
December 26,
2021
2020
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents
$
167,228
$
421,185
Accounts receivable, net of reserves of
$81,113 and $88,030
1,356,881
1,424,787
Inventories, net
1,688,210
1,512,499
Prepaid expenses and other
529,929
432,944
Total current assets
3,742,248
3,791,415
Property and equipment, net
358,224
342,004
Operating lease right-of-use assets
301,440
288,847
Goodwill
2,722,974
2,504,392
Other intangibles, net
604,515
479,429
Investments and other
394,665
366,445
Total assets
$
8,124,066
$
7,772,532
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities:
Accounts payable
$
903,859
$
1,005,655
Bank credit lines
72,105
73,366
Current maturities of long-term debt
9,839
109,836
Operating lease liabilities
75,008
64,716
Accrued expenses:
Payroll and related
313,892
295,329
Taxes
156,176
138,671
Other
562,762
595,529
Total current liabilities
2,093,641
2,283,102
Long-term debt
706,487
515,773
Deferred income taxes
46,528
30,065
Operating lease liabilities
243,232
238,727
Other liabilities
423,416
392,781
Total liabilities
3,513,304
3,460,448
Redeemable noncontrolling interests
604,081
327,699
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.01 par value,
1,000,000 shares authorized, none outstanding
-
-
Common stock, $0.01 par value, 480,000,000
shares authorized, 139,780,841 outstanding on June 26, 2021 and
142,462,571 outstanding on December 26, 2020
1,398
1,425
Additional paid-in capital
-
-
Retained earnings
3,465,647
3,454,831
Accumulated other comprehensive loss
(106,779
)
(108,084
)
Total Henry Schein, Inc. stockholders'
equity
3,360,266
3,348,172
Noncontrolling interests
646,415
636,213
Total stockholders' equity
4,006,681
3,984,385
Total liabilities, redeemable
noncontrolling interests and stockholders' equity
$
8,124,066
$
7,772,532
HENRY SCHEIN, INC. CONSOLIDATED STATEMENTS
OF CASH FLOWS (in thousands, unaudited)
Three Months Ended
Six Months Ended
June 26,
June 27,
June 26,
June 27,
2021
2020
2021
2020
Cash flows from operating
activities:
Net income (loss)
$
163,977
$
(13,267
)
$
338,905
$
120,298
Income from discontinued operations
-
585
-
303
Income (loss) from continuing
operations
163,977
(13,852
)
338,905
119,995
Adjustments to reconcile net income (loss)
to net cash provided by
Depreciation and amortization
49,915
46,963
99,278
93,946
Impairment charge on intangible assets
-
149
-
2,149
Stock-based compensation expense
(credit)
17,364
5,156
30,154
(12,358
)
Provision for (benefit from) losses on
trade and other accounts receivable
(1,376
)
14,215
(4,072
)
28,758
Provision for (benefit from) deferred
income taxes
(5,466
)
(35,516
)
5,705
(32,871
)
Equity in earnings of affiliates
(6,323
)
(1,411
)
(12,201
)
(4,145
)
Distributions from equity affiliates
5,608
1,807
10,747
4,220
Changes in unrecognized tax benefits
(9,090
)
2,955
(6,286
)
1,380
Other
3,394
14,151
3,429
227
Changes in operating assets and
liabilities, net of acquisitions:
Accounts receivable
(17,176
)
100,955
101,619
99,672
Inventories
(45,673
)
(59,338
)
(123,758
)
13,700
Other current assets
(40,669
)
(166,614
)
(85,979
)
(188,616
)
Accounts payable and accrued expenses
43,910
(1,220
)
(135,815
)
(138,900
)
Net cash provided by (used in) operating
activities from continuing operations
158,395
(91,600
)
221,726
(12,843
)
Net cash provided by operating activities
from discontinued operations
-
855
-
573
Net cash provided by (used in) operating
activities
158,395
(90,745
)
221,726
(12,270
)
Cash flows from investing
activities:
Purchases of fixed assets
(17,969
)
(7,580
)
(31,812
)
(30,588
)
Proceeds from (payments related to) equity
investments and business acquisitions, net of cash acquired
(91,625
)
222
(295,652
)
(37,725
)
Proceeds from sale of equity
investment
-
-
-
12,000
Payments for loan to affiliate
(2,160
)
(2,866
)
(2,021
)
(1,729
)
Other
(6,121
)
(5,812
)
(11,634
)
(11,599
)
Net cash used in investing activities from
continuing operations
(117,875
)
(16,036
)
(341,119
)
(69,641
)
Net cash used in investing activities from
discontinued operations
-
-
-
-
Net cash used in investing activities
(117,875
)
(16,036
)
(341,119
)
(69,641
)
Cash flows from financing
activities:
Net change in bank borrowings
(5,140
)
121,063
(5,381
)
479,702
Proceeds from issuance of long-term
debt
200,000
251,421
200,000
501,421
Principal payments for long-term debt
(102,545
)
(601,102
)
(120,326
)
(609,580
)
Debt issuance costs
(114
)
(3,597
)
(199
)
(3,655
)
Payments for repurchases of common
stock
(112,552
)
-
(201,211
)
(73,789
)
Payments for taxes related to shares
withheld for employee taxes
(1,201
)
(558
)
(7,359
)
(13,713
)
Proceeds from (distributions to)
noncontrolling shareholders
2,731
198
(3,789
)
(3,466
)
Acquisitions of noncontrolling interests
in subsidiaries
(1,130
)
(9
)
(1,130
)
(14,934
)
Proceeds from Henry Schein Animal Health
Business
-
3,026
-
64
Net cash provided by (used in) financing
activities from continuing operations
(19,951
)
(229,558
)
(139,395
)
262,050
Net cash used in financing activities from
discontinued operations
-
(855
)
-
(573
)
Net cash provided by (used in) financing
activities
(19,951
)
(230,413
)
(139,395
)
261,477
Effect of exchange rate changes on cash
and cash equivalents from continuing operations
2,121
15,936
4,831
10,447
Effect of exchange rate changes on cash
and cash equivalents from discontinued operations
-
-
-
-
Net change in cash and cash equivalents
from continuing operations
22,690
(321,258
)
(253,957
)
190,013
Net change in cash and cash equivalents
from discontinued operations
-
-
-
-
Cash and cash equivalents, beginning of
period
144,538
617,368
421,185
106,097
Cash and cash equivalents, end of
period
$
167,228
$
296,110
$
167,228
$
296,110
Exhibit A - Second Quarter
Sales
Henry Schein, Inc.
2021 Second Quarter
Sales Summary
(in thousands)
(unaudited)
Q2 2021
over Q2 2020
Global
Q2 2021
Q2 2020
Total Sales
Growth
Foreign
Exchange
Growth
Local
Currency
Growth
Acquisition
Growth
Local
Internal
Growth
Dental Merchandise
$
1,507,036
$
723,855
108.2%
8.5%
99.7%
9.2%
90.5%
Dental Equipment
403,308
217,437
85.5%
9.2%
76.3%
1.0%
75.3%
Total Dental
1,910,344
941,292
102.9%
8.6%
94.3%
7.3%
87.0%
Medical
904,828
617,810
46.5%
0.4%
46.1%
2.6%
43.5%
Total Health Care Distribution
2,815,172
1,559,102
80.6%
5.4%
75.2%
5.4%
69.8%
Technology and value-added services
152,051
105,227
44.5%
2.6%
41.9%
8.9%
33.0%
Total excluding Corporate TSA Revenue
2,967,223
1,664,329
78.3%
5.2%
73.1%
5.7%
67.4%
Corporate TSA revenues (1)
-
20,070
n/a
n/a
n/a
n/a
n/a
Total Global
$
2,967,223
$
1,684,399
76.2%
5.2%
71.0%
5.5%
65.5%
North
America
Q2 2021
Q2 2020
Total Sales
Growth
Foreign
Exchange
Growth
Local
Currency
Growth
Acquisition
Growth
Local
Internal
Growth
Dental Merchandise
$
900,509
$
393,404
128.9%
2.2%
126.7%
14.2%
112.5%
Dental Equipment
227,098
122,542
85.3%
3.3%
82.0%
0.0%
82.0%
Total Dental
1,127,607
515,946
118.6%
2.5%
116.1%
10.8%
105.3%
Medical
877,773
596,588
47.1%
0.0%
47.1%
2.6%
44.5%
Total Health Care Distribution
2,005,380
1,112,534
80.3%
1.2%
79.1%
6.4%
72.7%
Technology and value-added services
129,897
92,927
39.8%
0.5%
39.3%
9.1%
30.2%
Total excluding Corporate TSA Revenue
2,135,277
1,205,461
77.1%
1.1%
76.0%
6.6%
69.4%
Corporate TSA revenues (1)
-
-
n/a
n/a
n/a
n/a
n/a
Total North America
$
2,135,277
$
1,205,461
77.1%
1.1%
76.0%
6.6%
69.4%
International
Q2 2021
Q2 2020
Total Sales
Growth
Foreign
Exchange
Growth
Local
Currency
Growth
Acquisition
Growth
Local
Internal
Growth
Dental Merchandise
$
606,527
$
330,451
83.5%
16.0%
67.5%
3.1%
64.4%
Dental Equipment
176,210
94,895
85.7%
16.8%
68.9%
2.3%
66.6%
Total Dental
782,737
425,346
84.0%
16.2%
67.8%
2.9%
64.9%
Medical
27,055
21,222
27.5%
11.6%
15.9%
0.0%
15.9%
Total Health Care Distribution
809,792
446,568
81.3%
15.9%
65.4%
2.9%
62.5%
Technology and value-added services
22,154
12,300
80.1%
19.2%
60.9%
6.6%
54.3%
Total excluding Corporate TSA Revenue
831,946
458,868
81.3%
16.1%
65.2%
2.9%
62.3%
Corporate TSA revenues (1)
-
20,070
n/a
n/a
n/a
n/a
n/a
Total International
$
831,946
$
478,938
73.7%
15.4%
58.3%
2.8%
55.5%
(1) Corporate TSA revenues represents
sales of certain products to Covetrus under the transition services
agreement entered into in connection with the Animal Health
spin-off, which ended in December 2020.
Exhibit A-1-Second Quarter
Sales
Henry Schein, Inc.
2021 Second Quarter
Sales Summary
(in thousands)
(unaudited)
Q2 2021
over Q2 2019
Global
Q2 2021
Q2 2019
Total Sales
Growth
Foreign
Exchange
Growth
Local
Currency
Growth
Acquisition
Growth
Local
Internal
Growth
Dental Merchandise
$
1,507,036
$
1,237,830
21.7%
2.1%
19.6%
5.9%
13.7%
Dental Equipment
403,308
363,520
10.9%
3.6%
7.3%
0.6%
6.7%
Total Dental
1,910,344
1,601,350
19.3%
2.5%
16.8%
4.7%
12.1%
Medical
904,828
697,558
29.7%
0.3%
29.4%
2.2%
27.2%
Total Health Care Distribution
2,815,172
2,298,908
22.5%
1.9%
20.6%
3.9%
16.7%
Technology and value-added services
152,051
125,051
21.6%
1.5%
20.1%
10.0%
10.1%
Total excluding Corporate TSA Revenue
2,967,223
2,423,959
22.4%
1.8%
20.6%
4.2%
16.4%
Corporate TSA revenues (1)
-
23,868
n/a
n/a
n/a
n/a
n/a
Total Global
$
2,967,223
$
2,447,827
21.2%
1.8%
19.4%
4.2%
15.2%
North
America
Q2 2021
Q2 2019
Total Sales
Growth
Foreign
Exchange
Growth
Local
Currency
Growth
Acquisition
Growth
Local
Internal
Growth
Dental Merchandise
$
900,509
$
752,001
19.7%
0.8%
18.9%
7.4%
11.5%
Dental Equipment
227,098
223,370
1.7%
1.3%
0.4%
0.0%
0.4%
Total Dental
1,127,607
975,371
15.6%
0.9%
14.7%
5.7%
9.0%
Medical
877,773
678,358
29.4%
0.0%
29.4%
2.3%
27.1%
Total Health Care Distribution
2,005,380
1,653,729
21.3%
0.6%
20.7%
4.3%
16.4%
Technology and value-added services
129,897
108,505
19.7%
0.2%
19.5%
8.9%
10.6%
Total excluding Corporate TSA Revenue
2,135,277
1,762,234
21.2%
0.6%
20.6%
4.6%
16.0%
Corporate TSA revenues (1)
-
1,760
n/a
n/a
n/a
n/a
n/a
Total North America
$
2,135,277
$
1,763,994
21.0%
0.5%
20.5%
4.6%
15.9%
International
Q2 2021
Q2 2019
Total Sales
Growth
Foreign
Exchange
Growth
Local
Currency
Growth
Acquisition
Growth
Local
Internal
Growth
Dental Merchandise
$
606,527
$
485,829
24.8%
4.2%
20.6%
3.4%
17.2%
Dental Equipment
176,210
140,150
25.7%
7.5%
18.2%
1.6%
16.6%
Total Dental
782,737
625,979
25.0%
4.9%
20.1%
3.1%
17.0%
Medical
27,055
19,200
40.9%
9.7%
31.2%
0.0%
31.2%
Total Health Care Distribution
809,792
645,179
25.5%
5.1%
20.4%
2.9%
17.5%
Technology and value-added services
22,154
16,546
33.9%
9.7%
24.2%
17.3%
6.9%
Total excluding Corporate TSA Revenue
831,946
661,725
25.7%
5.2%
20.5%
3.3%
17.2%
Corporate TSA revenues (1)
-
22,108
n/a
n/a
n/a
n/a
n/a
Total International
$
831,946
$
683,833
21.7%
5.1%
16.6%
3.2%
13.4%
(1) Corporate TSA revenues represents
sales of certain products to Covetrus under the transition services
agreement entered into in connection with the Animal Health
spin-off, which ended in December 2020.
Exhibit A - Year-to-Date Sales
Henry Schein, Inc.
2021 Second Quarter
Year-to-Date
Sales Summary
(in thousands)
(unaudited)
Q2 2021
Year-to Date over Q2 2020 Year-to-Date
Global
Q2 2021
Q2 2020
Total Sales
Growth
Foreign
Exchange
Growth
Local
Currency
Growth
Acquisition
Growth
Local
Internal
Growth
Dental Merchandise
$
2,927,191
$
1,893,636
54.6%
5.2%
49.4%
6.7%
42.7%
Dental Equipment
772,081
522,732
47.7%
6.6%
41.1%
0.7%
40.4%
Total Dental
3,699,272
2,416,368
53.1%
5.5%
47.6%
5.4%
42.2%
Medical
1,897,865
1,418,498
33.8%
0.3%
33.5%
2.1%
31.4%
Total Health Care Distribution
5,597,137
3,834,866
46.0%
3.6%
42.4%
4.2%
38.2%
Technology and value-added services
295,047
237,192
24.4%
1.9%
22.5%
5.8%
16.7%
Total excluding Corporate TSA Revenue
5,892,184
4,072,058
44.7%
3.5%
41.2%
4.2%
37.0%
Corporate TSA revenues (1)
-
41,212
n/a
n/a
n/a
n/a
n/a
Total Global
$
5,892,184
$
4,113,270
43.2%
3.4%
39.8%
4.2%
35.6%
North
America
Q2 2021
Q2 2020
Total Sales
Growth
Foreign
Exchange
Growth
Local
Currency
Growth
Acquisition
Growth
Local
Internal
Growth
Dental Merchandise
$
1,733,856
$
1,102,990
57.2%
1.1%
56.1%
10.0%
46.1%
Dental Equipment
438,534
301,328
45.5%
1.8%
43.7%
0.0%
43.7%
Total Dental
2,172,390
1,404,318
54.7%
1.3%
53.4%
7.8%
45.6%
Medical
1,842,900
1,374,616
34.1%
0.0%
34.1%
2.1%
32.0%
Total Health Care Distribution
4,015,290
2,778,934
44.5%
0.7%
43.8%
5.0%
38.8%
Technology and value-added services
251,834
206,425
22.0%
0.3%
21.7%
5.9%
15.8%
Total excluding Corporate TSA Revenue
4,267,124
2,985,359
42.9%
0.6%
42.3%
5.0%
37.3%
Corporate TSA revenues (1)
-
-
n/a
n/a
n/a
n/a
n/a
Total North America
$
4,267,124
$
2,985,359
42.9%
0.6%
42.3%
5.0%
37.3%
International
Q2 2021
Q2 2020
Total Sales
Growth
Foreign
Exchange
Growth
Local
Currency
Growth
Acquisition
Growth
Local
Internal
Growth
Dental Merchandise
$
1,193,335
$
790,646
50.9%
10.8%
40.1%
2.0%
38.1%
Dental Equipment
333,547
221,404
50.7%
13.0%
37.7%
1.7%
36.0%
Total Dental
1,526,882
1,012,050
50.9%
11.3%
39.6%
2.0%
37.6%
Medical
54,965
43,882
25.3%
11.1%
14.2%
0.0%
14.2%
Total Health Care Distribution
1,581,847
1,055,932
49.8%
11.3%
38.5%
1.9%
36.6%
Technology and value-added services
43,213
30,767
40.5%
13.0%
27.5%
5.1%
22.4%
Total excluding Corporate TSA Revenue
1,625,060
1,086,699
49.5%
11.3%
38.2%
2.0%
36.2%
Corporate TSA revenues (1)
-
41,212
n/a
n/a
n/a
n/a
n/a
Total International
$
1,625,060
$
1,127,911
44.1%
10.9%
33.2%
1.9%
31.3%
(1) Corporate TSA revenues represents
sales of certain animal health products to Covetrus under the
transition services agreement entered into in connection with the
Animal Health Spin-off, which ended in December 2020.
Exhibit A-1 - Year-to-Date
Sales
Henry Schein, Inc.
2021 Second Quarter
Year-to-Date
Sales Summary
(in thousands)
(unaudited)
Q2 2021
Year-to Date over Q2 2019 Year-to-Date
Global
Q2 2021
Q2 2019
Total Sales
Growth
Foreign
Exchange
Growth
Local
Currency
Growth
Acquisition
Growth
Local
Internal
Growth
Dental Merchandise
$
2,927,191
$
2,468,131
18.6%
1.6%
17.0%
6.0%
11.0%
Dental Equipment
772,081
679,599
13.6%
3.3%
10.3%
0.6%
9.7%
Total Dental
3,699,272
3,147,730
17.5%
2.0%
15.5%
4.8%
10.7%
Medical
1,897,865
1,381,218
37.4%
0.3%
37.1%
3.8%
33.3%
Total Health Care Distribution
5,597,137
4,528,948
23.6%
1.4%
22.2%
4.6%
17.6%
Technology and value-added services
295,047
240,649
22.6%
1.3%
21.3%
10.9%
10.4%
Total excluding Corporate TSA Revenue
5,892,184
4,769,597
23.5%
1.4%
22.1%
4.8%
17.3%
Corporate TSA revenues (1)
-
38,498
n/a
n/a
n/a
n/a
n/a
Total Global
$
5,892,184
$
4,808,095
22.5%
1.4%
21.1%
4.8%
16.3%
North
America
Q2 2021
Q2 2019
Total Sales
Growth
Foreign
Exchange
Growth
Local
Currency
Growth
Acquisition
Growth
Local
Internal
Growth
Dental Merchandise
$
1,733,856
$
1,491,729
16.2%
0.6%
15.6%
7.5%
8.1%
Dental Equipment
438,534
407,148
7.7%
1.1%
6.6%
0.0%
6.6%
Total Dental
2,172,390
1,898,877
14.4%
0.7%
13.7%
5.9%
7.8%
Medical
1,842,900
1,340,653
37.5%
0.0%
37.5%
4.0%
33.5%
Total Health Care Distribution
4,015,290
3,239,530
23.9%
0.4%
23.5%
5.0%
18.5%
Technology and value-added services
251,834
207,510
21.4%
0.2%
21.2%
9.9%
11.3%
Total excluding Corporate TSA Revenue
4,267,124
3,447,040
23.8%
0.4%
23.4%
5.4%
18.0%
Corporate TSA revenues (1)
-
3,021
n/a
n/a
n/a
n/a
n/a
Total North America
$
4,267,124
$
3,450,061
23.7%
0.4%
23.3%
5.4%
17.9%
International
Q2 2021
Q2 2019
Total Sales
Growth
Foreign
Exchange
Growth
Local
Currency
Growth
Acquisition
Growth
Local
Internal
Growth
Dental Merchandise
$
1,193,335
$
976,402
22.2%
3.0%
19.2%
3.7%
15.5%
Dental Equipment
333,547
272,451
22.4%
6.6%
15.8%
1.5%
14.3%
Total Dental
1,526,882
1,248,853
22.3%
3.9%
18.4%
3.2%
15.2%
Medical
54,965
40,565
35.5%
8.7%
26.8%
0.0%
26.8%
Total Health Care Distribution
1,581,847
1,289,418
22.7%
4.0%
18.7%
3.1%
15.6%
Technology and value-added services
43,213
33,139
30.4%
8.5%
21.9%
16.8%
5.1%
Total excluding Corporate TSA Revenue
1,625,060
1,322,557
22.9%
4.1%
18.8%
3.5%
15.3%
Corporate TSA revenues (1)
-
35,477
n/a
n/a
n/a
n/a
n/a
Total International
$
1,625,060
$
1,358,034
19.7%
4.1%
15.6%
3.3%
12.3%
(1) Corporate TSA revenues represents
sales of certain animal health products to Covetrus under the
transition services agreement entered into in connection with the
Animal Health Spin-off, which ended in December 2020.
Exhibit B
Henry Schein, Inc.
2021 Second Quarter and
Year-to-Date
Reconciliation of reported
GAAP net income (loss) from continuing operations and
diluted EPS from continuing
operations attributable to Henry Schein, Inc.
to non-GAAP net income from
continuing operations and
diluted EPS from continuing
operations attributable to Henry Schein, Inc.
(in thousands, except per
share data)
(unaudited)
Second Quarter
Year-to-Date
%
%
2021
2020
Growth
2021
2020
Growth
Net income (loss) from continuing
operations attributable to Henry Schein, Inc.
$
155,716
$
(11,382)
n/a
%
$
321,713
$
119,161
170.0
%
Diluted EPS from continuing operations
attributable to Henry Schein, Inc.
$
1.10
$
(0.08)
n/a
%
$
2.26
$
0.84
169.0
%
Non-GAAP Adjustments
Restructuring costs-Pre-tax (1)
$
604
$
15,934
$
3,535
$
20,721
Income tax benefit for restructuring costs
(1)
(151)
(3,983)
(884)
(5,180)
Settlement and litigation costs - Pre-tax
(2)
1,503
-
14,253
-
Income tax benefit for settlement and
litigation costs (2)
(346)
-
(3,548)
-
Total non-GAAP adjustments to Net
Income from continuing operations
$
1,610
$
11,951
$
13,356
$
15,541
Non-GAAP adjustments to diluted EPS
from continuing operations
0.01
0.08
0.09
0.11
Non-GAAP Net income from continuing
operations attributable to Henry Schein, Inc.
$
157,326
$
569
n/a
%
$
335,069
$
134,702
148.7
%
Non-GAAP diluted EPS from continuing
operations attributable to Henry Schein, Inc.
$
1.11
$
0.00
n/a
%
$
2.35
$
0.94
150.0
%
Management believes that non-GAAP financial measures provide
investors with useful supplemental information about the financial
performance of our business, enable comparison of financial results
between periods where certain items may vary independent of
business performance and allow for greater transparency with
respect to key metrics used by management in operating our
business. These non-GAAP financial measures are presented solely
for informational and comparative purposes and should not be
regarded as a replacement for corresponding, similarly captioned,
GAAP measures. Earnings per share numbers may not sum due to
rounding.
(1)
Represents Q2 2021 restructuring
costs of $604, net of $151 tax benefit, resulting in an after-tax
effect of $453, and YTD 2021 restructuring costs of $3,535, net of
$884 tax benefit, resulting in an after-tax effect of $2,651.
Represents Q2 2020 restructuring costs of $15,934, net of $3,983
tax benefit, resulting in an after-tax effect of $11,951, and YTD
2020 restructuring costs of $20,721, net of $5,180 tax benefit,
resulting in an after-tax effect of $15,541.
(2)
Represents a Q2 2021 pre-tax
charge of $3,000, net of $1,497 of noncontrolling interests,
related to settlement and litigation costs, net of a tax benefit of
$346, resulting in a net after-tax charge of $1,157. Represents a
YTD 2021 pre-tax charge of $15,750, net of $1,497 of noncontrolling
interests, related to settlement and litigation costs, net of a tax
benefit of $3,548, resulting in a net after-tax charge of
$10,705.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210803005513/en/
Investors Steven Paladino Executive Vice President and Chief Financial
Officer steven.paladino@henryschein.com (631) 843-5500
Carolynne Borders Vice President, Investor Relations
carolynne.borders@henryschein.com (631) 390-8105
Media Ann Marie Gothard Vice
President, Corporate Media Relations
annmarie.gothard@henryschein.com (631) 390-8169
Henry Schein (NASDAQ:HSIC)
Historical Stock Chart
From Apr 2024 to May 2024
Henry Schein (NASDAQ:HSIC)
Historical Stock Chart
From May 2023 to May 2024