Full Press Release Details
HENRY SCHEIN REPORTS THIRD-QUARTER 2023 FINANCIAL RESULTS AND UPDATES
GAAP diluted EPS of $1.05 and non-GAAP diluted EPS of $1.32,
reflecting stable net total sales growth of
2023 non-GAAP diluted EPS guidance of $4.43 to $4.71 updated
a narrowing of previous guidance to $5.18 to $5.26 from $5.18 to $5.35 due to softening
macroeconomic conditions,
an estimated $0.55 to $0.75 business interruption impact from the recent cybersecurity
excludes any future insurance claim recovery
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 third quarter ended
are reporting solid financial results for the third quarter.
The Company achieved good total sales growth and
non-GAAP diluted EPS growth despite continued lower sales of PPE products
and COVID-19 test kits. Profitability
benefitted from our technology, value-added services,
and dental specialty products as we continue towards our goal of
achieving 40% of operating income from sales of high-growth, high-margin products," said Stanley
M. Bergman, Chairman
of the Board and Chief Executive Officer of Henry Schein.
"Regarding our recently reported cybersecurity incident, our distribution businesses
are now operational and we are
initiating the reactivation of our ecommerce platform early this week.
We have also made significant progress resuming the
high levels of service our customers have come to expect from us,"
"We are more than halfway through our three-year BOLD+1 Strategic Plan," Mr. Bergman continued.
current macroeconomic conditions and the cybersecurity incident, we have
confidence in the stability of the dental and
medical markets and remain committed to our strategic priorities and
long-term financial model, which includes high single-
digit to low double-digit operating income growth."
Third-Quarter Financial Results
for the quarter were $3.2 billion, an increase of 3.1% compared with
the third quarter of 2022. This
increase included a 1.2% decrease in local currencies excluding acquisitions,
reflecting some market softening in the
second half of the quarter as well as lower sales of PPE products and COVID-19
test kits. Growth from acquisitions
and there was a 1.1% increase in net sales related to foreign currency
Sales of PPE products
and COVID-19 test kits in the quarter were $175 million,
a decrease of $69 million versus the prior-year period.
When excluding sales of PPE products and COVID-19 test kits, third-quarter
internal sales growth in local currencies
was 1.1% compared with the prior year period.
for the quarter was $137
million, or $1.05 per diluted share, compared with third-quarter 2022
GAAP net income of $150 million, or $1.09 per diluted share.
for the quarter was $173 million, or $1.32
per diluted share, compared with third-quarter
2022 non-GAAP net income of $177 million, or $1.29 per diluted share
, and excludes restructuring expenses of
$11 million, or $0.06 per diluted share, and amortization expense of acquired intangible assets of
$0.21 per diluted share.
for the quarter, an increase of 5.4%
compared with the prior-year period,
strong sales growth in consumable merchandise driven by acquisitions.
Internally generated sales decreased 0.2% in
local currencies and reflect a 0.9% decrease in North America and 0.9%
growth internationally,
in local currencies when excluding sales of PPE products.
Global Dental consumable merchandise internal sales increased
by 0.3% in local currencies. Excluding
sales of PPE products, internal sales growth was 1.1% in local currencies.
Global Dental equipment internal sales decreased
by 2.0% in local currencies,
with continued growth in
traditional equipment sales offset by a decrease in digital equipment sales despite higher unit
Global Medical sales were $1.1 billion
for the quarter, a decrease of 3.1% compared with the prior-year period.
Internally generated sales decreased 4.6% in local currencies
. Internal sales increased 0.8%
in local currencies when
excluding sales of PPE products and COVID-19 test kits and continued
to be impacted by a difficult prior-year
comparison of 9.3% sales growth, and a product mix shift to generic pharmaceuticals
and corporate brand products.
Global Technology and Value
-Added Services sales
for the quarter, an increase of 18.8%
compared with the prior-year period,
driven by the strength of Henry Schein One and by acquisitions. This
9.6% internal sales growth in local currencies and 8.6% growth from acquisitions
including Large Practice Sales
LLC. Henry Schein One achieved strong growth across its practice
management software products, with particular
strength in its cloud-based solutions, Dentrix Ascend and Dentally.
-to-Date Financial Results
for the first nine months of 2023
were $9.3 billion, an increase of 0.5% compared with the first nine
months of 2022. This increase included a 1.7% decrease in local
currencies excluding acquisitions,
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.
See Exhibit C for details of acquisition expense and acquisition-related
included in GAAP and non-GAAP
Reference to diluted EPS refers to diluted EPS attributable to Henry
from acquisitions and a 0.3%
decrease related to foreign currency exchange.