Full Press Release Details
HENRY SCHEIN REPORTS FOURTH-QUARTER AND FULL-YEAR 2022 FINANCIAL RESULTS AND
INTRODUCES 2023 FINANCIAL GUIDANCE
Fourth-quarter net sales of $3.4 billion increased 1.2%
compared with the fourth quarter of 2021;
sales increased 5.0%
in local currencies when excluding sales of personal protective equipment (PPE)
products and COVID-19 test kits and the extra sales week in 2022
Fourth-quarter GAAP diluted EPS of $0.34 compared with fourth-quarter 2021
GAAP diluted EPS of $1.05
Fourth-quarter non-GAAP diluted EPS of $1.21 compared with fourth-quarter 2021
non-GAAP diluted EPS
Introduces guidance for 2023 non-GAAP diluted EPS of $5.25 to $5.42 excluding amortization
acquired intangible assets, reflecting high single-digit to low double-digit growth in non-GAAP operating
when excluding the contribution
from PPE products and COVID-19 test kits
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 fourth quarter ended
"We closed out 2022 with a very good fourth quarter in which we continued to execute effectively on our 2022 to
2024 Strategic Plan goals,
achieving strong growth in earnings for the fourth quarter and the full
macroeconomic and foreign exchange headwinds.
We overcame significant headwinds from lower sales of PPE products and
COVID-19 test kits," said Stanley M. Bergman, Chairman of the Board and Chief
Executive Officer of Henry Schein.
"Looking ahead, we are introducing financial guidance for 2023 where
we expect operating income growth in the high
single-digit to low double-digit percentage range when excluding the contribution
from PPE products and COVID-19 test
kits. The impact of lower selling prices of PPE products and reduced demand
for COVID-19 test kits will be largely offset by
earnings momentum in our underlying core businesses,
and the good momentum we have as we enter 2023 gives us
confidence in this full-year 2023 guidance.
Fundamentals in our dental end market remain solid. In the fourth
quarter, we believe global dental consumable
merchandise growth was impacted by a high incidence of flu and COVID-19
cases, which caused increased rates of patient
appointment cancellations and furthered staffing shortages. However, patient flows appear to have returned
Demand for dental equipment in North America remains healthy, and our North America equipment order
book is stable. Although we saw very good sales for traditional
equipment and steady sales for digital imaging equipment,
there was a decline in sales of digital restoration equipment compared
to the corresponding prior year fourth quarter, resulting
from customer demand shifting from chairside mills to 3D printing, a
mix shift to lower priced intra-oral scanners,
supply chain issues of an important intra-oral scanner supplier. Demand for equipment internationally held up
sales moving to lower priced intra-oral scanner units, and overall equipment
sales essentially in-line with last year.
"Sales growth in our Medical business continued to be excellent, reflecting
higher patient traffic
sites, partially driven by a high incidence of seasonal flu and COVID-19,
which drove increased sales of point-of-care
diagnostic and other products.
When excluding sales of PPE products and COVID-19 test kits, we experienced
sales growth in local currencies.
We are pleased with the continued growth in new accounts across independent and large
group practices, as well as ambulatory surgical centers and urgent care facilities.
"Growth in our Technology and Value
-added Services business was strongest in our international business
strength of our Dentally cloud-based solution.
Growth in North America was driven by sales of practice management
software, and we are encouraged to see many customers upgrading
to Dentrix and Dentrix Ascend as the product lifecycle of
our Easy Dental product ends," concluded Mr. Bergman.
Fourth-Quarter Financial Results
for the quarter were $3.4 billion, an increase of 1.2% compared
with the fourth quarter of 2021. The
1.2% increase included a 1.8%
decrease in local currencies excluding acquisitions,
1.1% growth from acquisitions
decrease related to foreign currency exchange,
while the extra week of sales contributed 4.9% to sales
growth. Sales of PPE products
and COVID-19 test kits in the fourth quarter were $254 million, which
lower than the prior-year period.
Excluding sales of PPE products and COVID-19 test kits, fourth-quarter
sales growth in local currencies was 5.0%.
for the quarter was $46.8 million, or $0.34 per diluted share,
compared with fourth-quarter 2021
GAAP net income of $147.2 million, or $1.05 per diluted share.
for the quarter was $164.7 million, or $1.21 per diluted share, compared with
2021 non-GAAP net income of $150.6
million, or $1.07 per diluted share
Fourth quarter 2022 non-GAAP net
Integration and restructuring expenses of $121 million pre-tax, or $0.70 per diluted
share. These expenses
mainly relate to vacating one of the buildings at the Company's Melville headquarters and the impairment of
intangible assets associated with the disposal of an unprofitable business.
The Company also incurred
restructuring expenses associated with severance and costs relating to
the exit of some other facilities.
Impairment expense of intangible assets of $34 million pre-tax, or $0.17 per diluted
share, related to certain
continuing operations.
Foreign currency exchange negatively impacted fourth quarter non-GAAP
diluted EPS by approximately 4 cents
versus the fourth quarter last year.
were $2.0 billion for the quarter, a decrease of 0.7% compared with the prior-year period.
Internally generated sales decreased 2.6% in local currencies and acquisitions