Full Press Release Details
HENRY SCHEIN REPORTS RECORD SECOND-QUARTER 2021 FINANCIAL RESULTS
FROM CONTINUING OPERATIONS
net sales of $3.0 billion up 76.2% versus prior year and up 21.2% versus 2019
diluted EPS from continuing operations of $1.10 versus prior-year GAAP loss per
diluted share from continuing operations of $0.08
diluted EPS from continuing operations of $1.11 versus prior-year non-GAAP
diluted EPS from continuing operations of $0.00
strong first-half financial results, raises guidance for 2021 non-GAAP diluted EPS
from continuing operations to be at or above $3.85, representing a floor for
MELVILLE, N.Y., August 3, 2021 - Henry Schein, Inc. (Nasdaq: HSIC),
the world's largest provider of health care solutions to office-based dental
and medical practitioners, today reported record second-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 June 26, 2021, were $3.0 billion, up 76.2% compared with the second
quarter of 2020, when a significant number of dental and medical practices
suspended activity because of the COVID-19 pandemic. The 76.2% increase
included 65.5% internal growth in local currencies, 5.5% growth from
acquisitions and 5.2% growth related to foreign currency exchange. When
compared with the pre-pandemic second quarter of 2019, sales were up 21.2% and included
15.2% internal growth in local currencies, 4.2% growth from acquisitions and 1.8%
growth related to foreign currency exchange. Exhibit A provides details of
sales growth, including comparisons with 2020. Note that Exhibit A-1 contains
details of sales performance compared with 2019.
GAAP net income attributable to Henry
Schein, Inc. from continuing operations for the second quarter of 2021 was $155.7
million, or $1.10 per diluted share, compared with prior-year GAAP net loss
from continuing operations of $11.4 million, or $0.08 per diluted share. Non-GAAP net income from continuing operations for
the second quarter of 2021 was $157.3 million, or $1.11 per diluted share,
compared with prior-year non-GAAP net income from continuing operations of $0.6 million, or $0.00 per diluted
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 to report record
second-quarter financial results as we continue to execute on our key
strategies. Strengthening demand in the global dental and medical markets drove
strong year-over-year increases in sales versus the prior year when many of our
customers had temporarily closed their offices. Notably, compared with a
pre-COVID-19 environment in the second quarter of 2019, Henry Schein's
worldwide internal sales in local currencies increased by 15.2%," said Stanley
M. Bergman, Chairman of the Board and Chief Executive Officer of Henry Schein.
"We are also pleased with operating margin expansion that reflects a favorable
product mix as well as operating expense leverage."
Mr. Bergman continued, "With solid execution in the
first half of 2021 and a favorable outlook for the remainder of the fiscal year,
we are raising our guidance for 2021 non-GAAP diluted EPS from continuing
operations to be at or above $3.85, representing a floor for fiscal 2021. We will
continue to monitor any potential impact to our business as a result of
Global Dental sales for the second
quarter of 2021 of $1.9 billion increased 102.9% versus the prior-year period.
In local currencies, internally generated sales increased 87.0% with 7.3%
growth from acquisitions and 8.6% growth related to foreign currency exchange.
The 87.0% internal growth in local currencies included an increase of 105.3% in
North America and an increase of 64.9% internationally.
Global Dental consumable
merchandise internal sales increased 90.5% in local currencies. Excluding sales
of personal protective equipment (PPE) and COVID-19 related products, growth
was 96.2%. In North America, dental consumable merchandise internal sales in
local currencies increased 112.5%, or 119.1% excluding sales of PPE and
COVID-19 related products, and dental equipment internal sales in local
currencies increased 82.0%. Internationally, dental consumable merchandise internal
sales in local currencies increased 64.4%, or 70.2% excluding sales of PPE and
COVID-19 related products, and dental equipment internal sales in local
currencies increased 66.6%.
"Global dental sales experienced
strong growth, with gains in both consumable merchandise and equipment. More
specifically, consumable merchandise sales in North America and in our
international markets experienced double-digit growth versus the same period in
2019," noted Mr. Bergman. "Compared with the second quarter of 2019, North
America dental equipment sales growth was modest, primarily reflecting delays
with certain U.S. manufacturers of chairs, units and lights, resulting in longer
lead times. We reported strong equipment growth in our international markets
with no significant delays. Our overall dental sales performance reflects a
continued recovery in patient traffic compared to pre-pandemic levels, and we
remain optimistic about dental practices investing in technology and equipment
over the long term."
Global Medical sales for the second
quarter of 2021 of $904.8 million increased 46.5% versus
the comparable period last year, consisting of 43.5% internal growth
in local currencies, 2.6%
growth from acquisitions and 0.4% growth
related to foreign currency exchange. Excluding
sales of PPE and COVID-19 related products, internal sales in local currencies increased
believe our medical sales continued to outpace end-market performance with broad-based
growth versus the same period in 2019, including growth in medical-surgical,
equipment, and laboratory product sales. We continue to expand our medical business beyond core
distribution with a differentiated solutions offering that serves low acuity segments
of the market, which is the most cost-efficient setting for delivering care," remarked
Technology and Value-Added Services sales of $152.1 million increased 44.5% versus
the prior-year quarter and included 33.0% internal sales growth in local
currencies, 8.9% growth from acquisitions and 2.6% growth related to foreign
"Global Technology and Value-Added
Services sales continued to improve from the early days of the pandemic when
patient traffic was hardest hit. During the second quarter, Henry Schein One, the
largest contributor to sales in this business, reported record-high quarterly
revenue. In addition, our financial services business delivered strong growth,
primarily driven by practice transitions revenue," noted Mr. Bergman.