- Total net sales of $2.9 billion up 20.4% versus prior
year
- GAAP diluted EPS from continuing operations of $1.16 versus
prior-year GAAP diluted EPS from continuing operations of
$0.91
- Non-GAAP diluted EPS from continuing operations of $1.24
versus prior-year non-GAAP diluted EPS from continuing operations
of $0.94
- Reflecting strong first-quarter results, the Company raises
guidance for 2021 non-GAAP diluted EPS from continuing operations
to be at or above $3.70
Henry Schein, Inc. (Nasdaq: HSIC), the world’s largest provider
of health care solutions to office-based dental and medical
practitioners, today reported record first-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 March 27, 2021, were $2.9
billion, up 20.4% compared with the first quarter of 2020. The
20.4% increase included 14.9% internal growth in local currencies,
3.3% growth from acquisitions, and 2.2% growth related to foreign
currency exchange. (See Exhibit A for details of sales growth).
GAAP net income attributable to Henry Schein, Inc. from
continuing operations for the first quarter of 2021 was $166.0
million, or $1.16 per diluted share, compared with prior-year GAAP
net income from continuing operations of $130.5 million, or $0.91
per diluted share. Non-GAAP net income from continuing operations
for the first quarter of 2021 was $177.7 million, or $1.24 per
diluted share, compared with prior-year non-GAAP net income from
continuing operations of $134.1 million, or $0.94 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 with exceptional first-quarter global financial
performance versus the comparable prior-year period, and also
compared to the first quarter of 2019, which is the result of
planning and excellent execution across all of our businesses. We
also delivered a very strong operating margin for the quarter.
While end markets in most geographies still face challenges due to
the ongoing pandemic, the overall market recovery and our improving
financial results have continued. Our positive momentum reflects
the adaptiveness of our business model as well as the commitment of
Team Schein Members to our customers and our communities,” said
Stanley M. Bergman, Chairman of the Board and Chief Executive
Officer of Henry Schein. “Throughout these unprecedented times,
Henry Schein has remained focused on the safety of our team and on
responding to our customers’ needs, as well as on driving
innovation, gaining market share, enhancing our margin profile, and
optimizing our cost structure. We believe all of this positions us
well to continue to drive earnings growth and create value over the
long-term.”
Global Dental sales for the first quarter of 2021 of $1.8
billion increased 21.3% versus the prior-year period. In local
currencies, internally generated sales increased 13.7% with 4.2%
growth from acquisitions and 3.4% growth related to foreign
currency exchange. The 13.7% internal growth in local currencies
included an increase of 10.9% in North America and an increase of
17.9% internationally.
Global Dental consumable merchandise internal sales increased by
13.2% in local currencies. Excluding sales of personal protective
equipment (PPE) and COVID-19 related products, growth was 10.9%. In
North America, dental consumable merchandise internal sales in
local currencies increased 9.3%, or 6.9% excluding sales of PPE and
COVID-19 related products, and dental equipment internal sales in
local currencies increased 17.4%. Internationally, dental
consumable merchandise internal sales in local currencies increased
19.2%, or 16.7% excluding sales of PPE and COVID-19 related
products, and dental equipment internal sales in local currencies
increased 12.9%.
“For the first quarter, our dental sales in both North America
and international markets were strong, including significant growth
in North America dental equipment sales versus the fourth quarter
of 2020,” noted Mr. Bergman. “Global Dental Specialty sales were
also strong with year-over-year internal growth of 18.3% in local
currencies. We remain optimistic about the stability and health of
the global dental markets we serve, despite rising COVID-19 cases
in certain geographies, as patient traffic and practice spending
have steadily improved since the first few months of the
pandemic.”
Global Medical sales for the first quarter of 2021 of $993.0
million increased 24.0% versus the comparable period last year,
consisting of 22.1% internal growth in local currencies, 1.6%
growth from acquisitions and 0.3% growth related to foreign
currency exchange. Excluding sales of PPE and COVID-19 related
products, internal sales in local currencies decreased 6.8%, in
part resulting from an extremely mild influenza season that
impacted diagnostic and consumable merchandise sales, as well as
from lower pharmaceutical sales related to fewer patient office
visits due to COVID-19.
“We are pleased to report strong double-digit global Medical
sales growth during the first quarter. We expect the physician,
ambulatory surgery center, alternate care and home health markets
to improve over time as infection levels abate and patient volumes
normalize. That said, we expect COVID-19 test sales to decline,
primarily as a result of unit price erosion,” remarked Mr.
Bergman.
“While sales of PPE products have begun to moderate from recent
quarterly growth rates in both our Dental and Medical businesses,
we expect PPE sales will remain at elevated levels as dentists and
physicians implement new standard-of-care best practices,” said Mr.
Bergman.
Global Technology and Value-Added Services sales of $143.0
million increased 8.4% versus the prior-year quarter and included
3.6% internal sales growth in local currencies, 3.4% growth from
acquisitions and 1.4% growth related to foreign currency
exchange.
“Global Technology and Value-Added Services sales have steadily
improved over the last several quarters, with Henry Schein One
internal sales in local currencies increasing by 2.6% in the first
quarter, representing continued sequential-quarter growth. In
addition, financial services internal sales in local currencies
increased by 22.5%, in part driven by higher sales of dental
equipment,” noted Mr. Bergman.
Stock Repurchase Plan
During the first quarter of 2021, the Company repurchased
approximately 1.3 million shares of its common stock at an average
price of $66.90 per share, for a total of approximately $88.7
million. The impact of the repurchase of shares on first-quarter
diluted EPS was immaterial. At the end of the first quarter, Henry
Schein had approximately $112.6 million authorized and available
for future stock repurchases.
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 an accurate estimate of
expenses related to the ongoing restructuring initiative. Financial
guidance is as follows:
- 2021 non-GAAP diluted EPS from continuing operations
attributable to Henry Schein, Inc. is expected to be at or above
$3.70, representing a floor for fiscal 2021.
- 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 does not assume
any 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 program 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 the 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.
First Quarter 2021 Conference Call Webcast
The Company will hold a conference call to discuss first-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 more than 20,000 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 31 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 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, 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.
(TABLES TO FOLLOW)
HENRY SCHEIN, INC.
CONSOLIDATED STATEMENTS OF
INCOME
(in thousands, except per
share data)
(unaudited)
Three Months Ended
March 27,
March 28,
2021
2020
Net sales
$
2,924,961
$
2,428,871
Cost of sales
2,034,110
1,682,857
Gross profit
890,851
746,014
Operating expenses:
Selling, general and administrative
657,992
567,362
Restructuring costs
2,931
4,787
Operating income
229,928
173,865
Other income (expense):
Interest income
1,983
3,190
Interest expense
(6,485)
(7,812)
Other, net
309
(220)
Income from continuing operations before
taxes, equity in earnings of affiliates and noncontrolling
interests
225,735
169,023
Income taxes
(56,685)
(37,910)
Equity in earnings of affiliates
5,878
2,734
Net income from continuing operations
174,928
133,847
Loss from discontinued operations
-
(282)
Net Income
174,928
133,565
Less: Net income attributable to
noncontrolling interests
(8,931)
(3,304)
Net income attributable to Henry Schein,
Inc.
$
165,997
$
130,261
Amounts attributable to Henry Schein,
Inc.:
Continuing operations
$
165,997
$
130,543
Discontinued operations
-
(282)
Net income attributable to Henry Schein,
Inc.
$
165,997
$
130,261
Earnings per share from continuing
operations attributable to Henry Schein, Inc.:
Basic
$
1.17
$
0.91
Diluted
$
1.16
$
0.91
Loss per share from discontinued
operations attributable to Henry Schein, Inc.:
Basic
$
-
$
0.00
Diluted
$
-
$
0.00
Earnings per share attributable to
Henry Schein, Inc.:
Basic
$
1.17
$
0.91
Diluted
$
1.16
$
0.91
Weighted-average common shares
outstanding:
Basic
142,298
142,967
Diluted
143,398
143,095
HENRY SCHEIN, INC.
CONSOLIDATED BALANCE
SHEETS
(in thousands, except share
and per share data)
March 27,
December 26,
2021
2020
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents
$
144,538
$
421,185
Accounts receivable, net of reserves of
$79,936 and $88,030
1,317,546
1,424,787
Inventories, net
1,626,185
1,512,499
Prepaid expenses and other
482,356
432,944
Total current assets
3,570,625
3,791,415
Property and equipment, net
353,248
342,004
Operating lease right-of-use assets
301,759
288,847
Goodwill
2,587,438
2,504,392
Other intangibles, net
597,619
479,429
Investments and other
369,231
366,445
Total assets
$
7,779,920
$
7,772,532
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities:
Accounts payable
$
909,575
$
1,005,655
Bank credit lines
67,415
73,366
Current maturities of long-term debt
111,176
109,836
Operating lease liabilities
68,580
64,716
Accrued expenses:
Payroll and related
286,106
295,329
Taxes
146,755
138,671
Other
533,161
595,529
Total current liabilities
2,122,768
2,283,102
Long-term debt
506,461
515,773
Deferred income taxes
42,254
30,065
Operating lease liabilities
248,624
238,727
Other liabilities
410,184
392,781
Total liabilities
3,330,291
3,460,448
Redeemable noncontrolling interests
452,899
327,699
Commitments and contingencies
Stockholders' equity:
Preferred stock, $.01 par value, 1,000,000
shares authorized, none outstanding
-
-
Common stock, $.01 par value, 480,000,000
shares authorized, 141,310,113 outstanding on March 27, 2021 and
142,462,571 outstanding on December 26, 2020
1,413
1,425
Additional paid-in capital
-
-
Retained earnings
3,493,060
3,454,831
Accumulated other comprehensive loss
(136,305)
(108,084)
Total Henry Schein, Inc. stockholders'
equity
3,358,168
3,348,172
Noncontrolling interests
638,562
636,213
Total stockholders' equity
3,996,730
3,984,385
Total liabilities, redeemable
noncontrolling interests and stockholders' equity
$
7,779,920
$
7,772,532
HENRY SCHEIN, INC.
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(in thousands,
unaudited)
Three Months Ended
March 27,
March 28,
2021
2020
Cash flows from operating
activities:
Net income
$
174,928
$
133,565
Loss from discontinued operations
-
(282)
Income from continuing operations
174,928
133,847
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization
49,363
46,983
Impairment charge on intangible assets
-
2,000
Stock-based compensation (credit)
expense
12,790
(17,514)
Provision for (benefit from) losses on
trade and other accounts receivable
(2,696)
14,543
Provision for deferred income taxes
11,171
2,645
Equity in earnings of affiliates
(5,878)
(2,734)
Distributions from equity affiliates
5,139
2,413
Changes in unrecognized tax benefits
2,804
(1,575)
Other
35
(13,924)
Changes in operating assets and
liabilities, net of acquisitions:
Accounts receivable
118,795
(1,283)
Inventories
(78,085)
73,038
Other current assets
(45,310)
(22,002)
Accounts payable and accrued expenses
(179,725)
(137,680)
Net cash provided by operating activities
from continuing operations
63,331
78,757
Net cash used in operating activities from
discontinued operations
-
(282)
Net cash provided by operating
activities
63,331
78,475
Cash flows from investing
activities:
Purchases of fixed assets
(13,843)
(23,008)
Payments related to equity investments and
business acquisitions, net of cash acquired
(204,027)
(37,947)
Proceeds from sale of equity
investment
-
12,000
Repayments from loan to affiliate
139
1,137
Other
(5,513)
(5,787)
Net cash used in investing activities from
continuing operations
(223,244)
(53,605)
Net cash used in investing activities from
discontinued operations
-
-
Net cash used in investing activities
(223,244)
(53,605)
Cash flows from financing
activities:
Net change in bank borrowings
(241)
358,639
Proceeds from issuance of long-term
debt
-
250,000
Principal payments for long-term debt
(17,781)
(8,478)
Debt issuance costs
(85)
(58)
Payments for repurchases of common
stock
(88,659)
(73,789)
Payments for taxes related to shares
withheld for employee taxes
(6,158)
(13,155)
Distributions to noncontrolling
shareholders
(6,520)
(3,664)
Acquisitions of noncontrolling interests
in subsidiaries
-
(14,925)
Payments to Henry Schein Animal Health
Business
-
(2,962)
Net cash provided by (used in) financing
activities from continuing operations
(119,444)
491,608
Net cash provided by financing activities
from discontinued operations
-
282
Net cash provided by (used in) financing
activities
(119,444)
491,890
Effect of exchange rate changes on cash
and cash equivalents from continuing operations
2,710
(5,489)
Effect of exchange rate changes on cash
and cash equivalents from discontinued operations
-
-
Net change in cash and cash equivalents
from continuing operations
(276,647)
511,271
Net change in cash and cash equivalents
from discontinued operations
-
-
Cash and cash equivalents, beginning of
period
421,185
106,097
Cash and cash equivalents, end of
period
$
144,538
$
617,368
Exhibit A - First Quarter Sales
Henry Schein, Inc.
2021 First Quarter
Sales Summary
(in thousands)
(unaudited)
Q1 2021
over Q1 2020
Global
Q1 2021
Q1 2020
Total Sales Growth
Foreign Exchange
Growth
Local Currency Growth
Acquisition Growth
Local Internal Growth
Dental
$
1,788,928
$
1,475,076
21.3%
3.4%
17.9%
4.2%
13.7%
Medical
993,037
800,688
24.0%
0.3%
23.7%
1.6%
22.1%
Total Health Care Distribution
2,781,965
2,275,764
22.2%
2.3%
19.9%
3.3%
16.6%
Technology and value-added services
142,996
131,965
8.4%
1.4%
7.0%
3.4%
3.6%
Total excluding Corporate TSA Revenue
2,924,961
2,407,729
21.5%
2.3%
19.2%
3.3%
15.9%
Corporate TSA revenues (1)
-
21,142
n/a
n/a
n/a
n/a
n/a
Total Global
$
2,924,961
$
2,428,871
20.4%
2.2%
18.2%
3.3%
14.9%
North
America
Q1 2021
Q1 2020
Total Sales Growth
Foreign Exchange
Growth
Local Currency Growth
Acquisition Growth
Local Internal Growth
Dental
$
1,044,783
$
888,372
17.6%
0.6%
17.0%
6.1%
10.9%
Medical
965,127
778,028
24.0%
0.0%
24.0%
1.6%
22.4%
Total Health Care Distribution
2,009,910
1,666,400
20.6%
0.3%
20.3%
4.0%
16.3%
Technology and value-added services
121,937
113,498
7.4%
0.1%
7.3%
3.3%
4.0%
Total excluding Corporate TSA Revenue
2,131,847
1,779,898
19.8%
0.3%
19.5%
4.0%
15.5%
Corporate TSA revenues (1)
-
-
n/a
n/a
n/a
n/a
n/a
Total North America
$
2,131,847
$
1,779,898
19.8%
0.3%
19.5%
4.0%
15.5%
International
Q1 2021
Q1 2020
Total Sales Growth
Foreign Exchange
Growth
Local Currency Growth
Acquisition Growth
Local Internal Growth
Dental
$
744,145
$
586,704
26.8%
7.7%
19.1%
1.2%
17.9%
Medical
27,910
22,660
23.2%
10.6%
12.6%
0.0%
12.6%
Total Health Care Distribution
772,055
609,364
26.7%
7.8%
18.9%
1.2%
17.7%
Technology and value-added services
21,059
18,467
14.0%
8.8%
5.2%
4.1%
1.1%
Total excluding Corporate TSA Revenue
793,114
627,831
26.3%
7.8%
18.5%
1.3%
17.2%
Corporate TSA revenues (1)
-
21,142
n/a
n/a
n/a
n/a
n/a
Total International
$
793,114
$
648,973
22.2%
7.6%
14.6%
1.2%
13.4%
(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 First Quarter
Reconciliation of reported
GAAP net income 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)
First Quarter
%
2021
2020
Growth
Net Income from continuing operations
attributable to Henry Schein, Inc.
$
165,997
$
130,543
27.2
%
Diluted EPS from continuing operations
attributable to Henry Schein, Inc.
$
1.16
$
0.91
27.5
%
Non-GAAP Adjustments
Restructuring costs - Pre-tax (1)
$
2,931
$
4,787
Income tax benefit for restructuring costs
(1)
(733)
(1,197)
Settlement and litigation costs - Pre-tax
(2)
12,750
-
Income tax benefit for settlement and
litigation costs (2)
(3,202)
-
Total non-GAAP adjustments to Net
Income from continuing operations
$
11,746
$
3,590
Non-GAAP adjustments to diluted EPS
from continuing operations
$
0.08
$
0.03
Non-GAAP Net Income from continuing
operations attributable to Henry Schein, Inc.
$
177,743
$
134,133
32.5
%
Non-GAAP diluted EPS from continuing
operations attributable to Henry Schein, Inc.
$
1.24
$
0.94
31.9
%
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 Q1 2021 restructuring
costs of $2,931, net of $733 tax benefit, resulting in an after-tax
effect of $2,198, Q1 2020 restructuring costs of $4,787, net of
$1,197 tax benefit, resulting in an after-tax effect of $3,590.
(2)
Represents a Q1 2021 pre-tax
charge of $12,750 related to settlement and litigation costs, net
of a tax benefit of $3,202, resulting in a net after-tax charge of
$9,548.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210504005622/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
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