Full Press Release Details
HENRY SCHEIN REPORTS RECORD THIRD-QUARTER 2021 FINANCIAL RESULTS
FROM CONTINUING OPERATIONS
net sales of $3.2 billion up 11.9% versus prior year
diluted EPS from continuing operations of $1.15 versus prior-year GAAP diluted
EPS from continuing operations of $0.99
diluted EPS from continuing operations of $1.10 versus prior-year non-GAAP
diluted EPS from continuing operations of $1.03
2021 guidance for non-GAAP diluted EPS from continuing operations to a range of $4.27
preliminary guidance for 2022 non-GAAP diluted EPS from continuing operations reflecting
mid to high single-digit growth over 2021 guidance for non-GAAP diluted EPS
from continuing operations
MELVILLE, N.Y., November 2, 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 third-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 September 25, 2021, were $3.2 billion, up 11.9% compared with the third
quarter of 2020. The 11.9% increase included 7.2% internal growth in local
currencies, 3.9% growth from acquisitions and 0.8% growth related to foreign
currency exchange. (See Exhibit A for details of sales growth.)
GAAP net income attributable to Henry
Schein, Inc. from continuing operations for the third quarter of 2021 was $162.3
million, or $1.15 per diluted share, compared with prior-year GAAP net income attributable
to Henry Schein, Inc. from continuing operations of $141.7 million, or $0.99 per diluted
income from continuing operations for the third quarter of 2021 was $154.8
million, or $1.10 per diluted share, compared with prior-year non-GAAP net
income from continuing operations of $147.0 million, or $1.03 per diluted share. Exhibit B provides a reconciliation
of GAAP net income and diluted EPS from continuing operations to non-GAAP net income and diluted EPS from
continuing operations.
"Today we reported record
third-quarter financial results, driven by a keen focus on execution by Team
Schein and steady patient traffic, resulting in excellent momentum across the
entire company. We believe that patient traffic was
similar to the previous quarter for our dental customers and is improving for
our medical customers. Compared with the year-ago quarter, Henry Schein's
worldwide internal sales in local currencies increased a robust 7.2%, or 6.3%
excluding sales of personal protective equipment (PPE) and COVID-19 related
products," said Stanley M. Bergman, Chairman of the Board and Chief Executive
Officer of Henry Schein. "Our third quarter financial results are solid with
growth in diluted EPS from continuing operations of 16.2% on a GAAP basis and
6.8% on a non-GAAP basis."
Global Dental sales for the third
quarter of 2021 of $1.8 billion increased 10.5% versus the prior-year period.
In local currencies, internally generated sales increased 5.2% with 3.9% growth
from acquisitions and 1.4% growth related to foreign currency exchange. The 5.2%
internal growth in local currencies included growth of 4.7% in North America
and 5.9% internationally.
Global Dental consumable
merchandise internal sales growth was 2.9% in local currencies. Excluding sales
of PPE and COVID-19 related products, internal sales growth in local currencies
was 4.8%. In North America, dental consumable merchandise internal sales in
local currencies increased 3.9%, and 5.7% when excluding sales of PPE and
COVID-19 related products, and dental equipment internal sales in local
currencies increased 7.8%. Internationally, dental consumable merchandise internal
sales in local currencies increased 1.3%, and 3.5% when excluding sales of PPE
and COVID-19 related products, and dental equipment internal sales in local
currencies increased 23.9%.
"North America dental consumable
merchandise internal sales growth in local currencies with and without PPE and
COVID-19 related products was solid in the third quarter. Consumable merchandise
sales continued to improve, which we believe were bolstered by a steady flow of
patient traffic," said Mr. Bergman. "North America dental equipment sales
growth reflected strong sales of high-technology equipment and modest growth of
traditional equipment sales which remain impacted by equipment manufacturing
and office construction delays. Overall gains in consumable merchandise and
equipment sales in North America and International markets reflect the
continuing recovery of underlying markets."
Global Medical sales for the third
quarter of 2021 of $1.2 billion increased 15.5% versus
the comparable period last year, consisting of 13.1% internal growth in local currencies and 2.4% growth from acquisitions. There
was no impact related
to foreign currency exchange. Excluding
sales of PPE and COVID-19 related products, internal sales in local currencies increased
internal sales growth in local currencies for the third quarter was once again
very strong, with and without sales of PPE and COVID-19 related products. Trends
in the physician office, ambulatory surgery center and alternate care markets
all were positive, and we have increased the number of accounts we serve and
further penetrated existing accounts," said Mr. Bergman.
Global Technology and Value-Added
Services sales of $168.6 million increased 21.9% versus the prior-year quarter
and included 6.3% internal sales growth in local currencies, 14.7% growth from
acquisitions and 0.9% growth related to foreign currency exchange.
"Global Technology and Value-Added
Services sales growth was driven by the acquisitions we made over the past year
in software analytics and by expanding our range of dental practice solutions.
We also saw solid sales growth in Dentrix technical support, our Dentrix Ascend
cloud solution and our Software of Excellence business in the UK," added Mr. Bergman.
Stock Repurchase Plan
During the third quarter of 2021, the
Company repurchased approximately 650,000 shares of its common stock at an
average price of $76.77 per share, for a total of approximately $50 million.
The impact of the repurchase of shares on third-quarter diluted EPS was immaterial.
At the end of the third quarter, Henry Schein had approximately $350 million
authorized and available for future stock repurchases.
Year-to-Date Financial Results
from continuing operations for the first nine months of 2021 were $9.1 billion,
an increase of 30.4% compared with the first nine months of 2020. The 30.4%