Full Press Release Details
HENRY SCHEIN REPORTS SECOND QUARTER 2024 FINANCIAL RESULTS
AND UPDATES 2024 FINANCIAL GUIDANCE
Second-quarter 2024 GAAP diluted EPS of $0.80, and non-GAAP diluted EPS
Operating cash flow of $296 million for the second quarter of
2024, year-to-date operating cash flow of $493
million up $192 million compared with year-to-date 2023
2024 full-year non-GAAP EPS guidance updated to $4.70 to $4.82
New restructuring plan targeting $75 million to $100 million in annual run-rate
Share repurchase authorization increased by $500 million
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 June
"We delivered solid second quarter financial results,
including strong operating cash flow, that reflected stable end
markets. Gross margin continued to increase, driven by our strategies to expand our high-growth,
high-margin products and
services and by the successful performance of our recent acquisitions.
We are experiencing improving sales trends in our
distribution businesses, however, the pace of recovery in these businesses since the cyber incident
late last year has been
slower than anticipated," said Stanley M. Bergman, Chairman of the Board and Chief
Executive Officer of Henry Schein.
"Given the challenging economic environment in certain markets,
as well as this delay in recovery from the cyber
incident, we are updating our 2024 full-year financial guidance.
"We remain committed to our long-term financial goals through advancement of the BOLD+1 Strategic Plan,
supported by our strong balance sheet and new restructuring plan, as we
synergies by connecting our
distribution businesses, specialty products, and technology and value-added
services," Mr. Bergman added.
Second-Quarter 2024 Financial Results
for the quarter were $3.1 billion, an increase of 1.1% compared with
the second quarter of 2023. This
reflects 4.0% sales growth from acquisitions, a 0.5% sales decrease resulting
from foreign exchange rates, a 0.5%
sales decrease from lower sales of personal protective equipment (PPE), primarily
the result of lower glove pricing,
and the pace of recovery from the cyber incident late last year.
for the quarter decreased 2.4%,
which includes a 0.5% decrease from lower PPE sales.
Second-quarter sales and internal sales growth are summarized below and
detailed in Exhibit A
Global Technology and Value
Note: items may not sum due to rounding
for the quarter was $104 million, or $0.80 per diluted share
, and compares with second-quarter
2023 GAAP net income of $140 million, or $1.06 per diluted share.
for the quarter was $158 million, or $1.23
, and compares with second-
quarter 2023 non-GAAP net income of $173 million, or $1.31 per diluted
for the quarter of $296 million, up $22 million compared with
second-quarter 2023.
for the quarter was $268 million, in line with second-quarter 2023 Adjusted
-to-Date Financial Results
for the first half of 2024 were $6.3 billion, an increase of 2.4%
compared with the first half of 2023.
This reflects 4.5% sales growth from acquisitions, a 0.7% sales decrease
from lower sales of personal protective
equipment, and the pace of recovery from the cyber incident late last year. The impact from foreign exchange
was not significant.
for the first half of 2024 decreased 2.1%, which includes a 0.7% decrease
from lower PPE sales.
See Exhibit A for details of sales growth. Internal sales growth is calculated
from total net sales using constant foreign
exchange rates and excludes sales from acquisitions.
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 a reconciliation of GAAP net income to Adjusted EBITDA.
References to diluted EPS refer to diluted EPS attributable to Henry Schein, Inc.
First half of 2024 sales and internal sales growth are summarized
below and detailed in Exhibit A
Global Technology and Value
Note: items may not sum due to rounding
for the first half of 2024 was $197 million, or $1.52 per diluted share
, and compares with first-
half 2023 GAAP net income of $261 million, or $1.97 per diluted
for the first half of 2024 was $301 million, or $2.33
first-half 2023 non-GAAP net income of $334 million, or $2.52 per diluted
for the first half of $493 million, up $192 million compared
with first-half 2023.
for the first half of 2024 was $523 million and compares with first-half
2023 Adjusted EBITDA
Henry Schein is today announcing a restructuring plan to integrate
recent acquisitions, right-size operations and
further increase efficiencies, targeting $75 million to $100 million in annual run-rate savings.
The Company expects to record restructuring charges in the second half of 2024
and in 2025; however,
of the amount of these charges has not yet been determined as plans are still being
finalized. Restructuring charges
expected primarily to include severance pay and facility-related costs.
The restructuring plan announced in the third quarter of 2022 was completed
During the second quarter of 2024, the Company repurchased approximately
1.4 million shares of its common stock
at an average price of $70.64 per share, for a total of approximately $100
million. The impact of these share repurchases on
second-quarter diluted EPS was immaterial.
At quarter-end, Henry Schein had approximately $90 million
authorized and available for future stock repurchases.
An additional $500 million share repurchase program was authorized by the Company's Board of Directors on July
2024 Financial Guidance