Full Press Release Details
HENRY SCHEIN REPORTS RECORD NON-GAAP FOURTH-QUARTER AND FULL-YEAR 2021 FINANCIAL RESULTS
total net sales of $3.3 billion up 5.2% compared with prior-year
GAAP diluted EPS from continuing operations of $1.05 compared with prior-year
GAAP diluted EPS from continuing operations of $0.99
non-GAAP diluted EPS from continuing operations of $1.07 compared with prior-year
non-GAAP diluted EPS from continuing operations of $1.00
full-year 2022 GAAP diluted EPS guidance to be $4.75 to $4.91, reflecting
growth of 7% to 10% over 2021 GAAP diluted EPS and growth of 5% to 9% over 2021
non-GAAP diluted EPS
MELVILLE, N.Y., February 15, 2022 - Henry Schein, Inc. (Nasdaq: HSIC),
the world's largest provider of health care solutions to office-based dental
and medical practitioners, today reported record fourth-quarter
non-GAAP 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 December 25, 2021, were $3.3 billion, up 5.2% compared with the fourth-quarter
of 2020. The 5.2% increase included 1.4% internal growth in local currencies, 4.3%
growth from acquisitions and a 0.5% decline related to foreign currency
exchange. (See Exhibit A for details of sales growth.) Fourth-quarter internal
sales growth in local currencies when excluding personal protective equipment (PPE)
and COVID-19 related products, as well as prior-year sales to Covetrus under
the transition services agreement, was 6.3% compared with the prior-year.
GAAP net income attributable to Henry
Schein, Inc. from continuing operations for the fourth-quarter of 2021 was $147.2
million, or $1.05 per diluted share, compared with prior-year GAAP net income attributable
to Henry Schein, Inc. from continuing operations of $141.9 million, or $0.99 per diluted
income from continuing operations for the fourth-quarter of 2021 was $150.7
million, or $1.07 per diluted share, compared with prior-year non-GAAP net
income from continuing operations of $143.6 million, or $1.00 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.
"Despite the impact of the global
COVID-19 pandemic, we are pleased to report excellent full-year 2021 financial
results, including an outstanding fourth quarter that exceeded our expectations," said Stanley M. Bergman,
Board and Chief Executive Officer of
Henry Schein. "We have updated our 2022 financial guidance based on this latest
view of our businesses.
The updated guidance reflects the execution of two key strategic priorities
contained in our 2022 to 2024 strategic plan: continuous operational improvement in our distribution
businesses leading to exceptional customer experience and profit improvement, complemented by increasing the
overall contribution of our Technology and Value-Added Services businesses and
our Dental Specialty products, which have higher sales growth and higher
Global Dental sales for the fourth-quarter
of 2021 of $2.0 billion increased 9.4% compared with the prior-year period. In
local currencies, internally generated sales increased 6.4% with 3.9% growth
from acquisitions and a 0.9% decline related to foreign currency exchange. The 6.4%
internal growth in local currencies included growth of 9.3% in North America
and 2.5% internationally.
Global Dental consumable
merchandise internal sales growth was 6.6% in local currencies. Excluding sales
of PPE and COVID-19 related products, internal sales growth in local currencies
was 7.4%. In North America, dental consumable merchandise internal sales in
local currencies increased 10.3%, and 10.1% when excluding sales of PPE and
COVID-19 related products, and dental equipment internal sales in local
currencies increased 6.6%. Internationally, dental consumable merchandise internal
sales in local currencies increased 1.9%, and 4.0% when excluding sales of PPE
and COVID-19 related products, and dental equipment internal sales in local
currencies increased 4.2%.
"North America dental consumable
merchandise internal sales growth in local currencies with and without PPE and
COVID-19 related products was strong in the fourth quarter. This growth
reflects the impact of some modest price increases as well as the contribution
from two large contracts with Dental Service Organizations awarded in 2021. North
America dental equipment sales growth reflected strong growth in our high-technology
product offering and modest growth in sales of traditional equipment. We
continued to experience some delivery and installation delays in the U.S.
traditional dental equipment business, as we had expected. We also experienced
some modest delays in the delivery of digital imaging units, which we expect to
last one more quarter," said Mr. Bergman.
"In our International Dental
business, we had very strong sales growth in the UK driven by a recovery from
last year, and in Brazil where we have seen some accelerated consolidation
within the dental distribution industry, as well as good growth in Italy, Spain,
Eastern Europe, and Australia," added Mr. Bergman. "Our global equipment
businesses are performing very well overall as dental offices continue to
invest in their businesses. We have expanded our Brazilian equipment business,
and at this time we have a strong underlying global equipment order book."
Global Medical sales for the fourth-quarter
of 2021 of $1.1 billion declined by 3.2%
compared with the comparable
period last year, consisting of a decrease of 7.1% in local currencies and 3.9% 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 3.6%.
internal sales in local currencies for the fourth-quarter declined against a
tough prior-year comparison that had extremely strong sales of PPE and COVID-19
related products. When normalizing for sales of those products, growth was solid
as we continued to gain new customers while achieving deeper penetration among
existing accounts," said
Technology and Value-Added Services sales of $177.2 million increased 27.8% compared
with the prior-year quarter and included 13.4% internal sales growth in local
currencies and 14.4% growth from acquisitions. There was no material impact
related to foreign currency exchange.
"Global Technology and Value-Added
Services sales growth was driven by Henry Schein One, the largest contributor
to sales in this segment, which once again posted record-high quarterly
revenue. Growth within Henry Schein One continues to be driven primarily by a
recovery in patient traffic to dental offices, which generates demand for our