Full Press Release Details
HENRY SCHEIN REPORTS FOURTH-QUARTER AND FULL-YEAR 2023 FINANCIAL RESULTS
AND INTRODUCES 2024 FINANCIAL GUIDANCE
Fourth quarter GAAP diluted EPS of $0.13.
Solid fourth quarter financial results in line with the Company's guidance provided on November 13, 2023.
Fourth quarter non-GAAP diluted EPS of $0.66, reflects:
$0.05 of acquisition-related expenses and adjustments,
an estimated $0.70 to $0.75 from the cybersecurity incident.
Introduces guidance for full-year 2024 non-GAAP diluted EPS of $5.00 to $5.16,
reflecting growth of 11% to
15% compared with 2023, and full-year 2024 Adjusted EBITDA growth of more than 15%.
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 and full year
ended December 30, 2023.
"We are pleased with our performance in the fourth quarter and for the full year 2023,
which was in line with our
expectations and reflects
a solid recovery from last year's cybersecurity incident," said Stanley M. Bergman, Chairman
Board and Chief Executive Officer of Henry Schein.
"Our fourth quarter financial results included strong growth in our
Technology and Value-Added
Services businesses, and in global sales of implants and biomaterials
acquisitions, and were negatively impacted by higher-than-usual acquisition-related
expenses and adjustments," Mr.
"The 2024 guidance we are introducing today reflects our continued confidence
in the stability of the underlying
our recovery efforts from the cybersecurity incident, and the execution of our
while we expect to have some short-term residual impact on merchandise
sales from the incident, we believe we will
continue to strengthen our leading market position.
We are also introducing Adjusted EBITDA guidance as we believe this
provides investors with an additional metric that reflects
the performance of the business as we pivot to higher-growth,
higher-margin products and services." Mr. Bergman added, "We believe we are well positioned to grow the business in line
with our financial goals of high-single-digit to low-double-digit operating
income and earnings per share by continuing to
execute on our BOLD+1 Strategic Plan."
Fourth-Quarter 2023 Financial Results
for the quarter were $3.0 billion, a decrease of 10.5%
compared with the fourth quarter of 2022. This
reflects an internal sales decrease of 12.0%,
calculated at constant foreign exchange rates, excluding sales from
acquisitions, and adjusting for the extra week in 2022.
Total net sales reflect an estimated reduction of $350 million to $400 million, or 10% to 12%, due to the
cybersecurity incident.
Fourth-quarter sales and internal sales growth are summarized below and included
in detail as Exhibit A
Global Technology and Value
for the quarter was $18 million, or $0.13 per diluted share
, which includes acquisition expenses
and acquisition-related adjustments
of $0.05 per diluted share. Fourth-quarter 2022 GAAP
million, or $0.34 per diluted share, which includes acquisition expenses and
acquisition-related adjustments
for the quarter was $86 million, or $0.66
, which includes acquisition
expenses and acquisition-related adjustments
of $0.05 per diluted share. Fourth-quarter 2022
was $184 million, or $1.35 per diluted share, which includes acquisition
expenses and acquisition-related
of $0.02 per diluted share. of the Company's reconciliation of GAAP net income to non-GAAP net
income is summarized in detail as Exhibit B.
GAAP and non-GAAP net income
were negatively impacted by an estimated $0.70 to $0.75 per diluted
attributable to the business interruption impact and recovery from
the cybersecurity incident.
See Exhibit A for details of sales growth. Internal sales growth is calculated
from total net sales using constant foreign
exchange rates, excluding sales for acquisitions, and adjusting for the extra
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 Adjusted EBITDA for the fourth quarter and
full-year 2023. The Company will calculate full-year
2024 Adjusted EBITDA in the same manner.
See Exhibit D for details of acquisition expense and acquisition-related
adjustments included in GAAP and non-GAAP
Reference to diluted EPS refers to diluted EPS attributable to Henry
2023 Financial Results
for 2023 were $12.3 billion, a decrease of 2.4%
compared with 2022. This reflects an internal sales
decrease of 4.4%, calculated at constant foreign exchange rates,
excluding sales from acquisitions, and adjusting for
the extra week in 2022. The Company's 2023 sales and internal sales growth are summarized below and
Global Technology and Value
for 2023 was $416 million, or $3.16 per diluted share
, which includes acquisition expenses and
acquisition-related adjustments
of $0.09 per diluted share. 2022 GAAP net income was
$538 million, or $3.91 per
diluted share, which includes
net favorable acquisition expenses and acquisition-related adjustments
for 2023 was $593 million, or $4.50 per diluted share
, which includes acquisition expenses
and acquisition-related adjustments
of $0.09 per diluted share. 2022 non-GAAP net income was $741
$5.38 per diluted share, which includes
net favorable acquisition expenses and acquisition-related adjustments
$0.02 per diluted share. The Company's reconciliation of GAAP net income to non-GAAP net income is summarized
in detail as Exhibit B.
GAAP and non-GAAP net income