Full Press Release Details
HENRY SCHEIN REPORTS RECORD FIRST-QUARTER 2021 FINANCIAL RESULTS
FROM CONTINUING OPERATIONS
net sales of $2.9 billion up 20.4% versus prior year
GAAP diluted EPS from continuing operations of $1.16 versus prior-year
GAAP diluted EPS from continuing
Non-GAAP diluted EPS from continuing operations of $1.24 versus prior-year
non-GAAP diluted EPS from
continuing operations of $0.94
Reflecting strong first-quarter results, the Company raises guidance for 2021 non-GAAP diluted
continuing operations to be at or above $3.70
Henry Schein, Inc. (Nasdaq: HSIC), the world's largest provider of health care solutions
to office-based dental and medical practitioners, today reported record first-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 March 27, 2021, were $2.9 billion, up 20.4%
compared with the first quarter of
increase included 14.9% internal growth in local currencies, 3.3%
growth from acquisitions,
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 first quarter of 2021 was
$166.0 million, or $1.16 per diluted share, compared with prior-year GAAP net income from
continuing operations of $130.5
million, or $0.91 per diluted share. Non-GAAP net income from continuing
operations for the first quarter of 2021 was
$177.7 million, or $1.24 per diluted share, compared with prior-year non-GAAP net income
from continuing operations of
$134.1 million, or $0.94 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
"We are pleased with exceptional first-quarter global financial performance versus the comparable prior-year period,
and also compared to the first quarter of 2019, which is the result of planning
and excellent execution across all of our
businesses. We also delivered a very strong operating margin for the quarter. While end markets in most geographies still
face challenges due to the ongoing pandemic, the overall market recovery and
our improving financial results have continued.
Our positive momentum reflects the adaptiveness of our business
model as well as the commitment of Team Schein Members
to our customers and our communities," said Stanley M. Bergman, Chairman of
the Board and Chief Executive Officer of
Henry Schein. "Throughout these unprecedented times, Henry Schein has
remained focused on the safety of our team and on
responding to our customers' needs, as well as on driving innovation, gaining
market share, enhancing our margin profile,
and optimizing our cost structure.
We believe all of this positions us well to continue to drive earnings growth and create
value over the long-term."
Global Dental sales for the first quarter of 2021 of $1.8 billion increased
21.3% versus the prior-year period. In local
currencies, internally generated sales increased 13.7% with 4.2% growth
from acquisitions and 3.4% growth related to
foreign currency exchange. The 13.7% internal growth in local currencies
included an increase of 10.9% in North America
and an increase of 17.9% internationally.
Global Dental consumable merchandise internal sales increased by 13.2%
in local currencies. Excluding sales of
personal protective equipment (PPE) and COVID-19 related products, growth
was 10.9%. In North America, dental
consumable merchandise internal sales in local currencies increased 9.3%,
excluding sales of PPE and COVID-19
related products, and dental equipment internal sales in local currencies
increased 17.4%. Internationally, dental consumable
merchandise internal sales in local currencies increased 19.2%, or 16.7%
excluding sales of PPE and COVID-19 related
products, and dental equipment internal sales in local currencies increased
"For the first quarter, our dental sales in both North America and international markets were strong,
significant growth in North America dental equipment sales versus the fourth
quarter of 2020," noted Mr. Bergman. "Global
Dental Specialty sales were also strong with year-over-year internal growth of
in local currencies. We remain
optimistic about the stability and health of the global dental markets we serve,
despite rising COVID-19 cases in certain
geographies, as patient traffic and practice spending have steadily improved since
the first few months of the pandemic."
Global Medical sales for the first quarter of 2021
of $993.0 million increased 24.0%
versus the comparable period
last year, consisting of 22.1%
internal growth in local currencies,
1.6% growth from acquisitions and 0.3%
foreign currency exchange.
Excluding sales of PPE and COVID-19 related products, internal sales
decreased 6.8%, in part resulting from an extremely mild influenza season
that impacted diagnostic and consumable
as well as from lower pharmaceutical sales related to fewer patient
office visits due to COVID-19.
"We are pleased to report strong double-digit global Medical sales growth during the first quarter. We expect the
physician, ambulatory surgery center, alternate care and home health markets to improve over time as infection
and patient volumes normalize. That said, we expect COVID-19
test sales to decline, primarily as a result of unit price
erosion," remarked Mr. Bergman.
"While sales of PPE products have begun to moderate from recent quarterly
growth rates in both our Dental and
we expect PPE sales will remain at elevated levels as dentists
and physicians implement new standard-
of-care best practices,"
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