- Third-quarter 2024 GAAP diluted EPS of $0.78 and non-GAAP diluted EPS of $1.22
|
- Operating cash flow of $151 million for the third quarter of 2024; year-to-date operating cash flow of $644 million, up $112 million compared with year-to-date 2023
|
- Increases 2024 full-year non-GAAP EPS guidance to $4.74 to $4.82 from $4.70 to $4.82
|
| Henry Schein, Inc. (Nasdaq: HSIC), the world’s largest provider of healthcare solutions to office-based dental and medical practitioners, today reported financial results for the third quarter that ended September 28, 2024. |
| “Our businesses performed well during the third quarter, driven by the continued successful implementation of our BOLD+1 Strategic Plan that is resulting in growth and efficiency throughout the business, and a strong contribution from high-growth, high-margin products and services,” said Stanley M. Bergman, Chairman of the Board and Chief Executive Officer of Henry Schein. “We believe we continued to steadily gain market share in our dental and medical distribution businesses following last year’s cyber incident. Our dental equipment business is showing ongoing stability in North America and increased investment by customers in Europe, Australia and New Zealand. Implant and endodontic products had good growth in Europe and Brazil, as well as North America following the successful launch of the BioHorizons Tapered Pro Conical implant in the U.S.,” Mr Bergman added. |
| “Acquisitions made during our 2022 to 2024 strategic planning cycle, along with new product launches, are delivering strong financial results, and our restructuring plan is on target. We also continue to return capital to shareholders through our share repurchase program. As a result, we exceeded our financial expectations for the quarter, and so today we are increasing our non-GAAP EPS guidance to $4.74 to $4.82,” Mr. Bergman concluded. |
| Third-Quarter 2024 Financial Results |
- Total net sales for the quarter were $3.2 billion, an increase of 0.4% compared with the third quarter of 2023. This reflects 3.2% sales growth from acquisitions, a 0.2% sales decrease resulting from foreign currency exchange rates, a 0.4% sales decrease from lower sales of personal protective equipment (PPE), primarily the result of lower glove pricing, and the pace of recovery from the cyber incident late last year.
|
- Internal sales for the quarter decreased 2.6%, which includes a 0.4% decrease from lower PPE sales.
|
| Third-quarter sales and internal sales growth are summarized below and detailed in Exhibit A1. |
| |
Sales
($ Billion) |
Total
Growth/(Decrease)1
(%) |
Internal
Growth/(Decrease)1
(%) |
| |
|
|
|
| Global Dental |
$1.9 |
(1.6%) |
(1.6%) |
| Merchandise |
$1.4 |
(2.8%) |
(2.5%) |
| Equipment |
$0.4 |
2.8% |
1.8% |
| Global Medical |
$1.1 |
2.9% |
(4.8%) |
| Global Technology and Value-Added Services |
$0.2 |
5.1% |
(1.1%) |
| |
|
|
|
| TOTAL SALES |
$3.2 |
0.4% |
(2.6%) |
|
- GAAP net income2 for the quarter was $99 million, or $0.78 per diluted share4, and compares with third-quarter 2023 GAAP net income of $137 million, or $1.05 per diluted share.
|
- Non-GAAP net income2 for the quarter was $155 million, or $1.22 per diluted share4, and compares with third-quarter 2023 non-GAAP net income of $173 million, or $1.32 per diluted share. GAAP and non-GAAP diluted EPS included a remeasurement gain of $0.11 resulting from the purchase of a controlling interest in a previously held non-controlling equity investment.
|
- Operating cash flow for the quarter was $151 million and compares with operating cash flow in the third quarter of 2023 of $231 million.
|
- Adjusted EBITDA3 for the quarter was $268 million and compares with third-quarter 2023 Adjusted EBITDA of $278 million.
|
| Year-to-Date Financial Results |
- Total net sales for the first nine months of 2024 were $9.5 billion, an increase of 1.7% compared with the first nine months of 2023. This reflects 4.1% sales growth from acquisitions, a 0.1% sales decrease resulting from foreign currency exchange rates, a 0.6% sales decrease from lower sales of personal protective equipment, and the pace of recovery from the cyber incident late last year.
|
- Internal sales for the first nine months of 2024 decreased 2.3%, which includes a 0.6% decrease from lower PPE sales.
|
| The first nine months of 2024 sales and internal sales growth are summarized below and detailed in Exhibit A1. |
| |
Sales
($ Billion) |
Total
Growth/(Decrease)1
(%) |
Internal
Growth/(Decrease)1
(%) |
| |
|
|
|
| Global Dental |
$5.7 |
(0.8%) |
(2.2%) |
| Merchandise |
$4.4 |
(1.3%) |
(3.0%) |
| Equipment |
$1.3 |
0.9% |
0.5% |
| Global Medical |
$3.1 |
5.0% |
(3.3%) |
| Global Technology and Value-Added Services |
$0.7 |
9.7% |
1.9% |
| |
|
|
|
| TOTAL SALES |
$9.5 |
1.7% |
(2.3%) |
| Note: items may not sum due to rounding |
|
|
|
- GAAP net income2 for the first nine months of 2024 was $296 million, or $2.30 per diluted share4, compared with the first nine months of 2023 GAAP net income of $398 million, or $3.02 per diluted share.
|
- Non-GAAP net income2 for the first nine months of 2024 was $456 million, or $3.55 per diluted share4, and compares with the first nine months of 2023 non-GAAP net income of $507 million, or $3.84 per diluted share. GAAP and non-GAAP diluted EPS for the first nine months included a remeasurement gain of $0.11 resulting from the purchase of a controlling interest of a previously held equity investment and compared with a remeasurement gain of $0.10 recorded in the second quarter of 2023.
|
- Operating cash flow for the first nine months of 2024 was $644 million, an increase of $112 million compared with the first nine months of 2023.
|
- Adjusted EBITDA3 for the first nine months of 2024 was $791 million and compares with the first nine months of 2023 Adjusted EBITDA of $813 million.
|
| Restructuring Plan |
| During the third quarter of 2024, the Company recorded $48 million in restructuring costs. This includes $12 million incurred as part of the plan announced in the third quarter of 2022, which was completed on July 31, 2024, and $36 million incurred as part of the 2024/2025 restructuring initiative announced last quarter. Actions approved in the third quarter under the new restructuring plan are estimated to provide over $50 million in annual run-rate savings, which the Company believes indicates strong progress towards its goal of $75 million to $100 million in annual run-rate savings by the end of 2025. |
| Share Repurchases |
| During the third quarter of 2024, the Company repurchased approximately 2.0 million shares of its common stock at an average price of $69.09 per share, for a total of $135 million. The impact of these share repurchases on third-quarter diluted EPS was immaterial. |
| At quarter-end, Henry Schein had $455 million authorized and available for future stock repurchases and the Company expects to continue to repurchase shares in the fourth quarter. |
| 2024 Financial Guidance |
| Henry Schein is updating full-year 2024 financial guidance, as described below. Guidance is for current continuing operations as well as acquisitions that have closed and do not include the impact of potential future acquisitions and share repurchases, restructuring and integration expenses, amortization expense of acquired intangible assets, contingent consideration revaluation adjustments, certain expenses directly associated with the cyber incident or any related insurance claim recovery. This guidance also assumes that foreign currency exchange rates remain generally consistent with current levels and that end markets remain consistent with current market conditions. |
- 2024 total sales growth is now expected to be 4% to 5% over 2023, compared with prior guidance of 4% to 6% growth.
|
- 2024 non-GAAP diluted EPS attributable to Henry Schein, Inc. is now expected to be $4.74 to $4.82, compared with prior guidance of $4.70 to $4.82, and reflects growth of 5% to 7% compared with 2023 non-GAAP diluted EPS of $4.50.
|
- 2024 Adjusted EBITDA is expected to grow in the low-double-digit percentages versus 2023 Adjusted EBITDA and is unchanged compared to prior guidance.
|
| For the full document click the link below: |
| Henry Schein, Inc. |
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