Henry Schein Announces $400 Million Increase to Share Repurchase Plan

Rhea-AI Summary

Henry Schein (Nasdaq: HSIC) has authorized a share repurchase program worth $400 million, complementing the remaining $33 million from a previous buyback initiated in October 2019. This new program represents approximately 4.0 percent of its 140 million outstanding shares. Executive VP Steven Paladino emphasized that this decision demonstrates the company's commitment to strategic priorities and solid cash flow generation, allowing for a balanced capital allocation strategy that supports growth and acquisitions.

Positive

• Authorization of a $400 million share repurchase program indicates confidence in future cash flow.
• Repurchase program potentially enhances shareholder value by reducing outstanding shares.

Negative

• None.

Henry Schein, Inc. (Nasdaq: HSIC), the world's largest provider of health care products and services to office-based dental and medical practitioners, announced today that its Board of Directors has authorized the repurchase of up to $400 million of shares of the Company's common stock.

This program is in addition to the $400 million repurchase program announced in October 2019, which as of today has approximately $33 million remaining authorized for future repurchases.

The Company had approximately 140 million shares outstanding as of May 13, 2021. This new authorization represents approximately 4.0 percent of shares outstanding at the current stock price. Purchases may be made from time to time in the open market, or through negotiated transactions.

“This new share repurchase authorization reflects our team’s commitment to delivering on our strategic priorities, as well as our ability to generate solid cash flow,” said Steven Paladino, Executive Vice President and Chief Financial Officer of Henry Schein. “The plan provides us with the flexibility to execute on our balanced capital allocation strategy, which includes investments to support organic growth, strategic acquisitions, and share repurchases.”

About Henry Schein, Inc.

Henry Schein, Inc. (Nasdaq: HSIC) is a solutions company for health care professionals powered by a network of people and technology. With more than 20,000 Team Schein Members worldwide, the Company's network of trusted advisors provides more than 1 million customers globally with more than 300 valued solutions that help improve operational success and clinical outcomes. Our Business, Clinical, Technology, and Supply Chain solutions help office-based dental and medical practitioners work more efficiently so they can provide quality care more effectively. These solutions also support dental laboratories, government and institutional health care clinics, as well as other alternate care sites.

Henry Schein operates through a centralized and automated distribution network, with a selection of more than 120,000 branded products and Henry Schein private-brand products in stock, as well as more than 180,000 additional products available as special-order items.

A FORTUNE 500 Company and a member of the S&P 500® index, Henry Schein is headquartered in Melville, N.Y., and has operations or affiliates in 31 countries and territories. The Company's sales reached $10.1 billion in 2020, and have grown at a compound annual rate of approximately 12 percent since Henry Schein became a public company in 1995.

For more information, visit Henry Schein at www.henryschein.com, Facebook.com/HenrySchein, and @HenrySchein on Twitter.

Cautionary Note Regarding Forward-Looking Statements

In accordance with the “Safe Harbor” provisions of the Private Securities Litigation Reform Act of 1995, we provide the following cautionary remarks regarding important factors that, among others, could cause future results to differ materially from the forward-looking statements, expectations and assumptions expressed or implied herein. All forward-looking statements made by us are subject to risks and uncertainties and are not guarantees of future performance. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance and achievements or industry results to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These statements are generally identified by the use of such terms as “may,” “could,” “expect,” “intend,” “believe,” “plan,” “est

FAQ

What is the purpose of the new share repurchase program by Henry Schein?

The new $400 million share repurchase program aims to enhance shareholder value and demonstrates the company's commitment to strategic capital allocation.

How much of the previous share repurchase program remains authorized?

As of now, approximately $33 million remains authorized from the prior $400 million repurchase program initiated in October 2019.

What percentage of shares outstanding does the new repurchase program represent?

The new repurchase program represents about 4.0 percent of Henry Schein's approximately 140 million shares outstanding.

When was Henry Schein's previous share repurchase program announced?

The previous share repurchase program was announced in October 2019.

What does the share buyback reflect about Henry Schein's financial health?

The share buyback reflects Henry Schein's ability to generate solid cash flow and its commitment to delivering on strategic priorities.