Full Press Release Details
HENRY SCHEIN REPORTS FIRST-QUARTER
2023 FINANCIAL RESULTS
First-quarter 2023 net sales of $3.1 billion decreased 3.8% compared with first-quarter 2022;
increased 6.3% in local currencies excluding sales of personal protective equipment (PPE) products and
First-quarter GAAP diluted EPS of $0.91 compared with first-quarter 2022
GAAP diluted EPS of $1.30
First-quarter non-GAAP diluted EPS of $1.21 compared
with first-quarter 2022 non-GAAP diluted EPS of
Updating full-year 2023 non-GAAP diluted EPS guidance to $5.18
to $5.35, reflecting an estimated $0.05 to
$0.10 first year dilution from the Biotech Dental acquisition
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
first quarter ended April 1, 2023.
"We are pleased to report solid financial results for the first quarter of 2023 that are in-line with the expectations we
provided at the beginning of the year and reflect the good earnings
momentum in our underlying core businesses.
trends stayed consistent with those we discussed during the previous quarter's conference call, and as anticipated, our
continued to be impacted by decreased sales of PPE products and COVID-19
test kits. Excluding these product categories,
we achieved strong internal sales growth of 6.3% in local currencies.
Our financial results were also adversely impacted by
acquisition related expenses and foreign exchange," said Stanley M. Bergman, Chairman
of the Board and Chief Executive
Officer of Henry Schein. "We are executing well on our BOLD +1 Strategic Plan, and the underlying fundamentals of our
core business remain solid.
"First quarter sales growth in our Dental business,
excluding PPE products,
reflects stable patient traffic.
merchandise sales were very good, and our dental equipment sales were
solid. Traditional equipment sales grew well, while
digital equipment sales continued to decrease.
"Our Technology and Value
-Added Services business had an excellent quarter. Growth in North America continued
to be driven by Dentrix and Dentrix Ascend cloud-based solutions and customers
from our Easy Dental product.
International growth was supported by Dentally,
our cloud-based solution for outside the United States. We also saw growth
with our revenue cycle management insurance claims product driven by
the number of e-claims we processed and the
enhanced functionality of our electronic invoicing and reimbursement
"Our Medical business achieved growth of approximately 4%,
excluding sales of PPE products and COVID-19 test
kits. We expect internal sales growth in our core Medical business to continue to grow, but at a slower pace than last year
given the prior year comparison resulting from the significant growth we
achieved last year," concluded Mr. Bergman.
First-Quarter Financial Results
for the quarter were $3.1 billion, a decrease of 3.8% compared with
the first quarter of 2022. The
3.8% decrease included a 3.7%
decrease in local currencies excluding acquisitions,
1.4% growth from acquisitions
decrease related to foreign currency exchange
. Sales of PPE products and COVID-19 test kits in the first
quarter were $201 million, a decrease of $287 million versus the prior-year
period. When excluding sales of PPE
products and COVID-19 test kits, first-quarter internal sales growth
in local currencies was 6.3% compared with the
for the quarter was $121 million, or $0.91 per diluted share, compared with
GAAP net income of $181 million, or $1.30 per diluted share.
for the quarter was $161 million, or $1.21 per diluted share, compared with
2022 non-GAAP net income of $200 million, or $1.44 per diluted share
. First-quarter 2023 non-GAAP diluted EPS
excludes restructuring expenses of $30 million, or $0.16 per diluted share,
and amortization expense of acquired
intangible assets of $30 million pre-tax, or $0.14 per diluted share, and was
negatively impacted by:
an estimated decreased contribution of $0.24 per diluted share from sales
of PPE products and COVID-19
test kits compared with the first quarter last year.
acquisition-related expense of $0.04 per diluted share, compared with
the first quarter last year acquisition-
related expense of less than $0.01 per diluted share.
foreign currency exchange of approximately $0.02 per diluted share versus
the first quarter last year.
were $1.9 billion for the quarter, an increase of 3.8% compared with the prior-year period.
Internally generated sales increased 4.0% in local currencies and acquisitions
contributed 2.3% growth. This growth
was offset by a 2.5% decrease related to foreign currency exchange. The 4.0%
internal sales increase in local
currencies reflects a 1.6%
increase in North America and 7.6% growth internationally.
Global Dental consumable merchandise internal sales increased
by 4.0% in local currencies. Excluding
sales of PPE products,
internal sales growth was 8.4% in local currencies.
Global Dental equipment internal sales growth
was 3.9% in local currencies.
Global Medical sales
were $1.0 billion for the quarter, a decrease of 17.2% compared with the prior-year period.
Internally generated sales decreased 17.1% in local currencies,
while foreign currency exchange resulted in a
decrease of 0.1%. Internal sales increased 4.2% in local currencies when
excluding sales of PPE products and
See Exhibit A for details of sales growth.
See Exhibit B for a reconciliation of GAAP net income and diluted
EPS to non-GAAP net income and diluted EPS.
Global Technology and Value
-Added Services sales
were $191 million for the quarter, an increase of 6.8%