Full Press Release Details
HENRY SCHEIN REPORTS SOLID SECOND-QUARTER 2023 FINANCIAL RESULTS AND AFFIRMS
Achieved internal sales growth of 3.3%
in local currencies, excluding sales of PPE products and COVID-19
test kits, driven by strength in the North American
Second-quarter financial results with GAAP diluted EPS of $1.06,
and non-GAAP diluted EPS of $1.31,
reflecting solid core business growth offset by continued lower contributions from PPE products and COVID-
Affirms 2023 non-GAAP diluted EPS guidance of $5.18 to $5.35
Henry Schein, Inc. (Nasdaq: HSIC), the world's largest provider of health care
solutions to office-based dental and medical practitioners, today reported financial results for
the second quarter ended July 1,
"Today we are reporting solid results for the second quarter driven by our North America dental businesses with
strong equipment and steady general merchandise sales,
and continuing strength in sales of our technology and value-added
services, implants, biomaterials and endodontic products.
Demand for dental services and customer confidence continue to
improve, as evidenced by the ongoing investments our customers are
making in their practices," said Stanley M. Bergman,
Chairman of the Board and Chief Executive Officer of Henry Schein. "Our outlook reflects
overall confidence in our
business and in the markets we serve."
Mr. Bergman continued, "Our financial results and guidance demonstrate the continued advancement of our 2022-
2024 BOLD+1 Strategic Plan.
are successfully executing the key initiatives, including expanding our
and value-added services portfolios, optimizing our distribution businesses,
leveraging key customer relationships and
driving digital transformation.
we have committed over $1 billion to acquisitions that accelerate
implementation of our strategic plan, adding high-growth, high-margin products
and services to our offering. With this clear
focus, we believe we are well-positioned to further enhance Henry Schein's leadership in the markets that we serve and
deliver long-term sustainable shareholder value."
Second-Quarter Financial Results
for the quarter were $3.1 billion, an increase of 2.3% compared with
the second quarter of 2022. The
2.3% increase included a 0.2%
decrease in local currencies excluding acquisitions,
2.9% growth from acquisitions,
and a 0.4% decrease related to foreign currency exchange
. Sales of PPE products and COVID-19 test kits in the
quarter were $163 million, a decrease of $96 million versus the prior-year
period. When excluding sales of PPE
products and COVID-19 test kits, second-quarter internal sales growth
in local currencies was 3.3% compared with
the prior-year period.
for the quarter was $140 million, or $1.06 per diluted share, compared with
GAAP net income of $160 million, or $1.16 per diluted share.
for the quarter was $173 million, or $1.31
per diluted share, compared with second-quarter
2022 non-GAAP net income of $179 million, or $1.30 per diluted share
and excludes restructuring expenses of $18
million, or $0.10 per diluted share, and amortization expense of acquired
intangible assets of $34 million, or $0.15
Second-quarter 2023 GAAP and non-GAAP diluted EPS was impacted
by a decreased contribution from
lower PPE and COVID-19 test kit sales estimated to be $0.08 per diluted
share relative to the prior-year
The Company's accelerated progress in implementing the 2022-2024 BOLD+1 Strategic Plan, including
increased capital deployment for acquisitions,
affected quarterly financial results more than in previous
years. The second quarter 2023 GAAP and non-GAAP diluted EPS included
high acquisition activity that
resulted in high acquisition expenses, which were offset by acquisition-related fair
including a related remeasurement gain resulting from the purchase of a controlling
interest of a previously
held equity investment,
as illustrated in Exhibit C
for the quarter, an increase of 5.6%
compared with the prior-year period,
driven by the North America dental businesses, reflecting increasing patient
and dental practitioners'
continued investment in technology and equipment. Internally generated
sales increased 2.0% in local currencies and
acquisitions contributed 4.2% growth. This growth was offset by a 0.6%
decrease related to foreign currency
. The 2.0% internal sales increase in local currencies reflects
a 2.1% increase in North America and 1.8%
growth internationally.
Global Dental consumable merchandise internal sales increased
by 0.7% in local currencies. Excluding
sales of PPE products, internal sales growth increased 2.8% in local currencies.
Global Dental equipment internal sales increased
by 6.4% in local currencies,
with continued strong
growth in traditional equipment sales and digital equipment sales
returning to growth.
Global Medical sales were $1.0 billion
for the quarter, a decrease of 4.6% compared with the prior-year period.
Internally generated sales decreased 5.3% in local currencies,
acquisitions contributed 0.8% growth, and foreign
See Exhibit A for details of sales growth.
See Exhibit B for a reconciliation of GAAP net income and diluted
EPS to non-GAAP net income and diluted EPS.
See Exhibit C for details of acquisition expense and acquisition-related
Reference to diluted EPS refers to diluted EPS attributable to Henry
currency exchange resulted in a decrease of 0.1%
. Internal sales increased 2.0% in local currencies when excluding
sales of PPE products and COVID-19 test kits and were impacted
by lower flu cases versus the prior year which
resulted in lower point-of-care diagnostic test and related product sales.