Henry Schein Reports Record Non-GAAP Fourth-Quarter and Full-Year 2021 Financial Results
Henry Schein reported fourth-quarter 2021 net sales of $3.3 billion, a 5.2% increase year-over-year. GAAP diluted EPS from continuing operations rose to $1.05, up from $0.99 a year earlier. Non-GAAP diluted EPS also increased to $1.07 from $1.00.
The company projects 2022 GAAP diluted EPS between $4.75 and $4.91, reflecting 7% to 10% growth from 2021. Global dental sales reached $2.0 billion for the quarter, a 9.4% rise, while medical sales declined by 3.2%. The company continues to focus on operational improvements and technology services.
- Fourth-quarter total net sales increased by 5.2% year-over-year to $3.3 billion.
- Full-year 2021 net sales grew by 22.6% compared to 2020, totaling $12.4 billion.
- Fourth-quarter GAAP diluted EPS increased from $0.99 to $1.05 year-over-year.
- 2022 GAAP diluted EPS guidance reflects growth of 7% to 10% over 2021.
- Global medical sales declined by 3.2% compared to the prior-year quarter.
- Some delivery and installation delays in the U.S. traditional dental equipment business are expected to continue.
-
Fourth-quarter total net sales of
$3.3 billion 5.2% compared with prior-year -
Fourth-quarter GAAP diluted EPS from continuing operations of
$1.05 $0.99 -
Fourth-quarter non-GAAP diluted EPS from continuing operations of
$1.07 $1.00 -
Introduces full-year 2022 GAAP diluted EPS guidance to be
$4.75 $4.91 7% to10% over 2021 GAAP diluted EPS and growth of5% to9% over 2021 non-GAAP diluted EPS
Total net sales for the quarter ended
GAAP net income attributable to
“Despite the impact of the global COVID-19 pandemic, we are pleased to report excellent full-year 2021 financial results, including an outstanding fourth-quarter that exceeded our expectations,” said
Global Dental sales for the fourth-quarter of 2021 of
Global Dental consumable merchandise internal sales growth was
“North America dental consumable merchandise internal sales growth in local currencies with and without PPE and COVID-19 related products was strong in the fourth quarter. This growth reflects the impact of some modest price increases as well as the contribution from two large contracts with Dental Service Organizations awarded in 2021.
“In our International Dental business, we had very strong sales growth in the
Global Medical sales for the fourth-quarter of 2021 of
“Global Medical internal sales in local currencies for the fourth-quarter declined against a tough prior-year comparison that had extremely strong sales of PPE and COVID-19 related products. When normalizing for sales of those products, growth was solid as we continued to gain new customers while achieving deeper penetration among existing accounts,” said
Global Technology and Value-Added Services sales of
“Global Technology and Value-Added Services sales growth was driven by
Stock Repurchase Plan
During the fourth-quarter of 2021, the Company repurchased approximately 2 million shares of its common stock at an average price of
Full-Year 2021 Financial Results
Total net sales from continuing operations for 2021 were
GAAP net income attributable to
Financial Guidance
Henry Schein today provided guidance for 2022 GAAP diluted EPS as follows: 2022 GAAP diluted EPS attributable to
Guidance for 2022 GAAP diluted EPS is for completed or previously announced acquisitions and does not include the impact of future share repurchases, potential future acquisitions or restructuring expenses, if any. Guidance also assumes that foreign currency exchange rates are generally consistent with current levels, that end markets remain stable and are consistent with current market conditions, and that there are no material adverse market changes associated with COVID-19.
Fourth-Quarter 2021 Conference Call Webcast
The Company will hold a conference call to discuss fourth-quarter 2021 financial results today, beginning at
About
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
For more information, visit Henry Schein at www.henryschein.com, Facebook.com/HenrySchein, and @HenrySchein on Twitter.
Cautionary Note Regarding Forward-Looking Statements and Use of Non-GAAP Financial Information
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 include EPS guidance and are generally identified by the use of such terms as “may,” “could,” “expect,” “intend,” “believe,” “plan,” “estimate,” “forecast,” “project,” “anticipate,” “to be,” “to make” or other comparable terms. A fuller discussion of our operations, financial condition and status of litigation matters, including factors that may affect our business and future prospects, is contained in documents we have filed with the
Risk factors and uncertainties that could cause actual results to differ materially from current and historical results include, but are not limited to: risks associated with COVID-19 and any variants thereof, as well as other disease outbreaks, epidemics, pandemics, or similar wide spread public health concerns and other natural disasters; our dependence on third parties for the manufacture and supply of our products; our ability to develop or acquire and maintain and protect new products (particularly technology products) and technologies that achieve market acceptance with acceptable margins; transitional challenges associated with acquisitions, dispositions and joint ventures, including the failure to achieve anticipated synergies/benefits; financial and tax risks associated with acquisitions, dispositions and joint ventures; certain provisions in our governing documents that may discourage third-party acquisitions of us; effects of a highly competitive (including, without limitation, competition from third-party online commerce sites) and consolidating market; the repeal or judicial prohibition on implementation of the Affordable Care Act; changes in the health care industry; risks from expansion of customer purchasing power and multi-tiered costing structures; increases in shipping costs for our products or other service issues with our third-party shippers; general global macro-economic and political conditions, including international trade agreements, potential trade barriers and terrorism; failure to comply with existing and future regulatory requirements; risks associated with the EU Medical Device Regulation; failure to comply with laws and regulations relating to health care fraud or other laws and regulations; failure to comply with laws and regulations relating to the collection, storage and processing of sensitive personal information or standards in electronic health records or transmissions; changes in tax legislation; risks related to product liability, intellectual property and other claims; litigation risks; new or unanticipated litigation developments and the status of litigation matters; risks associated with customs policies or legislative import restrictions; cyberattacks or other privacy or data security breaches; risks associated with our global operations; our dependence on our senior management, employee hiring and retention, and our relationships with customers, suppliers and manufacturers; and disruptions in financial markets. The order in which these factors appear should not be construed to indicate their relative importance or priority.
We caution that these factors may not be exhaustive and that many of these factors are beyond our ability to control or predict. Accordingly, any forward-looking statements contained herein should not be relied upon as a prediction of actual results. We undertake no duty and have no obligation to update forward-looking statements.
Included within the press release are non-GAAP financial measures that supplement the Company’s Consolidated Statements of Income prepared under generally accepted accounting principles (GAAP). These non-GAAP financial measures adjust the Company’s actual results prepared under GAAP to exclude certain items. In the schedules attached to the press release, the non-GAAP measures have been reconciled to and should be considered together with the Consolidated Statements of Income. Management believes that non-GAAP financial measures provide investors with useful supplemental information about the financial performance of our business, enable comparison of financial results between periods where certain items may vary independent of business performance and allow for greater transparency with respect to key metrics used by management in operating our business. These non-GAAP financial measures are presented solely for informational and comparative purposes and should not be regarded as a replacement for corresponding, similarly captioned, GAAP measures.
Although this decision could change in the future, the Company has not provided in this press release non-GAAP guidance for fiscal 2022 as it currently does not anticipate using non-GAAP financial measures in this period.
(TABLES TO FOLLOW)
CONSOLIDATED STATEMENTS OF INCOME (in thousands, except per share data) (unaudited) |
||||||||||||||||
|
|
Three Months Ended |
|
Years Ended |
||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
|
|
(unaudited) |
|
(unaudited) |
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net sales |
|
$ |
3,330,522 |
|
|
$ |
3,165,725 |
|
|
$ |
12,401,021 |
|
|
$ |
10,119,141 |
|
Cost of sales |
|
|
2,351,018 |
|
|
|
2,306,045 |
|
|
|
8,728,770 |
|
|
|
7,304,913 |
|
Gross profit |
|
|
979,504 |
|
|
|
859,680 |
|
|
|
3,672,251 |
|
|
|
2,814,228 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Selling, general and administrative |
|
|
774,364 |
|
|
|
674,100 |
|
|
|
2,812,656 |
|
|
|
2,246,832 |
|
Restructuring costs |
|
|
4,579 |
|
|
|
4,380 |
|
|
|
7,939 |
|
|
|
32,093 |
|
Operating income |
|
|
200,561 |
|
|
|
181,200 |
|
|
|
851,656 |
|
|
|
535,303 |
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest income |
|
|
1,702 |
|
|
|
2,361 |
|
|
|
6,451 |
|
|
|
9,842 |
|
Interest expense |
|
|
(8,189 |
) |
|
|
(11,968 |
) |
|
|
(27,600 |
) |
|
|
(41,377 |
) |
Other, net |
|
|
(1,025 |
) |
|
|
(1,663 |
) |
|
|
41 |
|
|
|
(3,873 |
) |
Income from continuing operations before taxes, equity in earnings of affiliates and noncontrolling interests |
|
|
193,049 |
|
|
|
169,930 |
|
|
|
830,548 |
|
|
|
499,895 |
|
Income taxes |
|
|
(43,361 |
) |
|
|
(29,409 |
) |
|
|
(197,349 |
) |
|
|
(95,374 |
) |
Equity in earnings of affiliates |
|
|
2,459 |
|
|
|
4,536 |
|
|
|
20,009 |
|
|
|
12,344 |
|
Gain on sale of equity investments |
|
|
- |
|
|
|
1,572 |
|
|
|
7,318 |
|
|
|
1,572 |
|
Net income from continuing operations |
|
|
152,147 |
|
|
|
146,629 |
|
|
|
660,526 |
|
|
|
418,437 |
|
Income from discontinued operations, net of tax |
|
|
- |
|
|
|
712 |
|
|
|
- |
|
|
|
986 |
|
Net income |
|
|
152,147 |
|
|
|
147,341 |
|
|
|
660,526 |
|
|
|
419,423 |
|
Less: Net income attributable to noncontrolling interests |
|
|
(4,914 |
) |
|
|
(4,708 |
) |
|
|
(29,294 |
) |
|
|
(15,629 |
) |
Net income attributable to |
|
$ |
147,233 |
|
|
$ |
142,633 |
|
|
$ |
631,232 |
|
|
$ |
403,794 |
|
Amounts attributable to |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Continuing operations |
|
$ |
147,233 |
|
|
$ |
141,921 |
|
|
$ |
631,232 |
|
|
$ |
402,808 |
|
Discontinued operations |
|
|
- |
|
|
|
712 |
|
|
|
- |
|
|
|
986 |
|
Net income attributable to |
|
$ |
147,233 |
|
|
$ |
142,633 |
|
|
$ |
631,232 |
|
|
$ |
403,794 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Earnings per share from continuing operations attributable to |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
1.06 |
|
|
$ |
1.00 |
|
|
$ |
4.51 |
|
|
$ |
2.83 |
|
Diluted |
|
$ |
1.05 |
|
|
$ |
0.99 |
|
|
$ |
4.45 |
|
|
$ |
2.81 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Earnings per share from discontinued operations attributable to |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
- |
|
|
$ |
0.01 |
|
|
$ |
- |
|
|
$ |
0.01 |
|
Diluted |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
0.01 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Earnings per share attributable to |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
1.06 |
|
|
$ |
1.00 |
|
|
$ |
4.51 |
|
|
$ |
2.83 |
|
Diluted |
|
$ |
1.05 |
|
|
$ |
1.00 |
|
|
$ |
4.45 |
|
|
$ |
2.82 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted-average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
|
138,406 |
|
|
|
142,379 |
|
|
|
140,091 |
|
|
|
142,504 |
|
Diluted |
|
|
140,318 |
|
|
|
143,328 |
|
|
|
141,773 |
|
|
|
143,404 |
|
|
|
|
|
|
||||||||||||
CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share data) |
||||||||
|
|
|
|
|
||||
|
|
2021 |
|
2020 |
||||
|
|
|
|
|
|
|||
ASSETS |
|
|
|
|
|
|
||
Current assets: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
117,965 |
|
|
$ |
421,185 |
|
Accounts receivable, net of reserves of |
|
|
1,451,829 |
|
|
|
1,424,787 |
|
Inventories, net |
|
|
1,861,138 |
|
|
|
1,512,499 |
|
Prepaid expenses and other |
|
|
413,103 |
|
|
|
432,944 |
|
Total current assets |
|
|
3,844,035 |
|
|
|
3,791,415 |
|
Property and equipment, net |
|
|
366,456 |
|
|
|
342,004 |
|
Operating lease right-of-use assets, net |
|
|
324,950 |
|
|
|
288,847 |
|
|
|
|
2,854,150 |
|
|
|
2,504,392 |
|
Other intangibles, net |
|
|
667,626 |
|
|
|
479,429 |
|
Investments and other |
|
|
423,874 |
|
|
|
366,445 |
|
Total assets |
|
$ |
8,481,091 |
|
|
$ |
7,772,532 |
|
|
|
|
|
|
|
|
||
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
|
||
Accounts payable |
|
$ |
1,053,934 |
|
|
$ |
1,005,655 |
|
Bank credit lines |
|
|
50,530 |
|
|
|
73,366 |
|
Current maturities of long-term debt |
|
|
10,640 |
|
|
|
109,836 |
|
Operating lease liabilities |
|
|
76,393 |
|
|
|
64,716 |
|
Accrued expenses: |
|
|
|
|
|
|
||
Payroll and related |
|
|
385,376 |
|
|
|
295,329 |
|
Taxes |
|
|
136,919 |
|
|
|
138,671 |
|
Other |
|
|
592,722 |
|
|
|
595,529 |
|
Total current liabilities |
|
|
2,306,514 |
|
|
|
2,283,102 |
|
Long-term debt |
|
|
811,346 |
|
|
|
515,773 |
|
Deferred income taxes |
|
|
42,283 |
|
|
|
30,065 |
|
Operating lease liabilities |
|
|
267,772 |
|
|
|
238,727 |
|
Other liabilities |
|
|
376,672 |
|
|
|
392,781 |
|
Total liabilities |
|
|
3,804,587 |
|
|
|
3,460,448 |
|
|
|
|
|
|
|
|
||
Redeemable noncontrolling interests |
|
|
613,312 |
|
|
|
327,699 |
|
Commitments and contingencies |
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
Stockholders' equity: |
|
|
|
|
|
|
||
Preferred stock, |
|
|
- |
|
|
|
- |
|
Common stock, |
|
|
1,371 |
|
|
|
1,425 |
|
Additional paid-in capital |
|
|
- |
|
|
|
- |
|
Retained earnings |
|
|
3,595,233 |
|
|
|
3,454,831 |
|
Accumulated other comprehensive loss |
|
|
(171,478 |
) |
|
|
(108,084 |
) |
|
|
|
3,425,126 |
|
|
|
3,348,172 |
|
Noncontrolling interests |
|
|
638,066 |
|
|
|
636,213 |
|
Total stockholders' equity |
|
|
4,063,192 |
|
|
|
3,984,385 |
|
Total liabilities, redeemable noncontrolling interests and stockholders' equity |
|
$ |
8,481,091 |
|
|
$ |
7,772,532 |
|
|
|
|
|
|
|
|
||
CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands, unaudited) |
||||||||||||||||
|
|
Three Months Ended |
|
Years Ended |
||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
|
|
|
(unaudited) |
|
|
(unaudited) |
|
|
|
|
|
|
||||
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income |
|
$ |
152,147 |
|
|
$ |
147,341 |
|
|
$ |
660,526 |
|
|
$ |
419,423 |
|
Income from discontinued operations |
|
|
- |
|
|
|
712 |
|
|
|
- |
|
|
|
986 |
|
Income from continuing operations |
|
|
152,147 |
|
|
|
146,629 |
|
|
|
660,526 |
|
|
|
418,437 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Depreciation and amortization |
|
|
58,695 |
|
|
|
47,023 |
|
|
|
209,528 |
|
|
|
185,538 |
|
Impairment charge on intangible assets |
|
|
713 |
|
|
|
18,126 |
|
|
|
713 |
|
|
|
20,275 |
|
Gain on sale of equity investments |
|
|
- |
|
|
|
(2,096 |
) |
|
|
(9,757 |
) |
|
|
(2,096 |
) |
Stock-based compensation expense |
|
|
20,715 |
|
|
|
15,436 |
|
|
|
78,415 |
|
|
|
8,788 |
|
Provision for (benefits from) losses on trade and other accounts receivable |
|
|
1,047 |
|
|
|
547 |
|
|
|
(7,748 |
) |
|
|
35,137 |
|
Benefit from deferred income taxes |
|
|
(10,260 |
) |
|
|
(4,784 |
) |
|
|
(10,985 |
) |
|
|
(52,977 |
) |
Equity in earnings of affiliates |
|
|
(2,459 |
) |
|
|
(4,536 |
) |
|
|
(20,009 |
) |
|
|
(12,344 |
) |
Distributions from equity affiliates |
|
|
2,727 |
|
|
|
5,949 |
|
|
|
17,762 |
|
|
|
16,002 |
|
Changes in unrecognized tax benefits |
|
|
4,532 |
|
|
|
(6,516 |
) |
|
|
(1,947 |
) |
|
|
(24,881 |
) |
Other |
|
|
(9,669 |
) |
|
|
10,876 |
|
|
|
(9,717 |
) |
|
|
5,012 |
|
Changes in operating assets and liabilities, net of acquisitions: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Accounts receivable |
|
|
87,263 |
|
|
|
10,509 |
|
|
|
4,162 |
|
|
|
(189,349 |
) |
Inventories |
|
|
(87,210 |
) |
|
|
(5,987 |
) |
|
|
(295,131 |
) |
|
|
(31,817 |
) |
Other current assets |
|
|
50,711 |
|
|
|
45,267 |
|
|
|
9,060 |
|
|
|
(6,479 |
) |
Accounts payable and accrued expenses |
|
|
7,687 |
|
|
|
68,662 |
|
|
|
84,708 |
|
|
|
224,273 |
|
Net cash provided by operating activities from continuing operations |
|
|
276,639 |
|
|
|
345,105 |
|
|
|
709,580 |
|
|
|
593,519 |
|
Net cash provided by operating activities from discontinued operations |
|
|
- |
|
|
|
4,743 |
|
|
|
- |
|
|
|
5,391 |
|
Net cash provided by operating activities |
|
|
276,639 |
|
|
|
349,848 |
|
|
|
709,580 |
|
|
|
598,910 |
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Purchases of fixed assets |
|
|
(30,309 |
) |
|
|
(11,030 |
) |
|
|
(79,015 |
) |
|
|
(48,829 |
) |
Payments related to equity investments and business acquisitions, net of cash acquired |
|
|
(155,193 |
) |
|
|
(7,965 |
) |
|
|
(570,558 |
) |
|
|
(60,173 |
) |
Proceeds from sale of equity investment |
|
|
- |
|
|
|
2,020 |
|
|
|
9,757 |
|
|
|
14,020 |
|
Proceeds from (repayments to) loan to affiliate |
|
|
1,890 |
|
|
|
208 |
|
|
|
(4,090 |
) |
|
|
(1,243 |
) |
Other |
|
|
(14,604 |
) |
|
|
(4,296 |
) |
|
|
(33,311 |
) |
|
|
(18,794 |
) |
Net cash used in investing activities from continuing operations |
|
|
(198,216 |
) |
|
|
(21,063 |
) |
|
|
(677,217 |
) |
|
|
(115,019 |
) |
Net cash used in investing activities from discontinued operations |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Net cash used in investing activities |
|
|
(198,216 |
) |
|
|
(21,063 |
) |
|
|
(677,217 |
) |
|
|
(115,019 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net change in bank borrowings |
|
|
(5,280 |
) |
|
|
(439,057 |
) |
|
|
(18,408 |
) |
|
|
45,082 |
|
Proceeds from issuance of long-term debt |
|
|
105,000 |
|
|
|
- |
|
|
|
305,000 |
|
|
|
501,421 |
|
Principal payments for long-term debt |
|
|
(435 |
) |
|
|
(759 |
) |
|
|
(122,270 |
) |
|
|
(611,216 |
) |
Debt issuance costs |
|
|
(880 |
) |
|
|
(196 |
) |
|
|
(2,893 |
) |
|
|
(3,879 |
) |
Debt extinguishment costs |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(401 |
) |
Payments for repurchases of common stock |
|
|
(150,000 |
) |
|
|
- |
|
|
|
(401,211 |
) |
|
|
(73,789 |
) |
Payments for taxes related to shares withheld for employee taxes |
|
|
(99 |
) |
|
|
(292 |
) |
|
|
(7,471 |
) |
|
|
(14,299 |
) |
Distributions to noncontrolling shareholders |
|
|
(16,842 |
) |
|
|
(3,891 |
) |
|
|
(25,464 |
) |
|
|
(7,886 |
) |
Acquisitions of noncontrolling interests in subsidiaries |
|
|
(9,948 |
) |
|
|
(4,604 |
) |
|
|
(60,240 |
) |
|
|
(19,538 |
) |
Proceeds from Henry Schein Animal Health Business |
|
|
- |
|
|
|
2,572 |
|
|
|
- |
|
|
|
2,711 |
|
Net cash used in financing activities from continuing operations |
|
|
(78,484 |
) |
|
|
(446,227 |
) |
|
|
(332,957 |
) |
|
|
(181,794 |
) |
Net cash used in financing activities from discontinued operations |
|
|
- |
|
|
|
(4,743 |
) |
|
|
- |
|
|
|
(5,391 |
) |
Net cash used in financing activities |
|
|
(78,484 |
) |
|
|
(450,970 |
) |
|
|
(332,957 |
) |
|
|
(187,185 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Effect of exchange rate changes on cash and cash equivalents from continuing operations |
|
|
(1,107 |
) |
|
|
9,875 |
|
|
|
(2,626 |
) |
|
|
18,382 |
|
Effect of exchange rate changes on cash and cash equivalents from discontinued operations |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Net change in cash and cash equivalents from continuing operations |
|
|
(1,168 |
) |
|
|
(112,310 |
) |
|
|
(303,220 |
) |
|
|
315,088 |
|
Cash and cash equivalents, beginning of period |
|
|
119,133 |
|
|
|
533,495 |
|
|
|
421,185 |
|
|
|
106,097 |
|
Cash and cash equivalents, end of period |
|
$ |
117,965 |
|
|
$ |
421,185 |
|
|
$ |
117,965 |
|
|
$ |
421,185 |
|
Exhibit A - Fourth Quarter Sales |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
2021 Fourth Quarter |
||||||||||||||||
Sales Summary |
||||||||||||||||
(in thousands) |
||||||||||||||||
(unaudited) |
||||||||||||||||
Q4 2021 over Q4 2020 |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Global |
Q4 2021 |
|
Q4 2020 |
|
Total Sales Growth |
|
Foreign Exchange Growth |
|
Local Currency Growth |
|
Acquisition Growth |
|
Local Internal Growth |
|||
Dental Merchandise |
$ |
1,509,518 |
|
$ |
1,361,219 |
|
|
|
- |
|
|
|
|
|
|
|
Dental Equipment |
|
510,266 |
|
|
485,153 |
|
|
|
- |
|
|
|
|
|
|
|
Total Dental |
|
2,019,784 |
|
|
1,846,372 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Medical |
|
1,133,498 |
|
|
1,171,373 |
|
- |
|
|
|
- |
|
|
|
- |
|
Total Health Care Distribution |
|
3,153,282 |
|
|
3,017,745 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Technology and value-added services |
|
177,240 |
|
|
138,711 |
|
|
|
|
|
|
|
|
|
|
|
Total excluding Corporate TSA Revenue |
|
3,330,522 |
|
|
3,156,456 |
|
|
|
- |
|
|
|
|
|
|
|
Corporate |
|
- |
|
|
9,269 |
|
n/a |
|
n/a |
|
n/a |
|
n/a |
|
n/a |
|
Total Global |
$ |
3,330,522 |
|
$ |
3,165,725 |
|
|
|
- |
|
|
|
|
|
|
|
|
Q4 2021 |
|
Q4 2020 |
|
Total Sales Growth |
|
Foreign Exchange Growth |
|
Local Currency Growth |
|
Acquisition Growth |
|
Local Internal Growth |
|||
Dental Merchandise |
$ |
900,915 |
|
$ |
762,587 |
|
|
|
|
|
|
|
|
|
|
|
Dental Equipment |
|
316,307 |
|
|
295,780 |
|
|
|
|
|
|
|
|
|
|
|
Total Dental |
|
1,217,222 |
|
|
1,058,367 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Medical |
|
1,108,541 |
|
|
1,137,313 |
|
- |
|
|
|
- |
|
|
|
- |
|
Total Health Care Distribution |
|
2,325,763 |
|
|
2,195,680 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Technology and value-added services |
|
154,645 |
|
|
119,456 |
|
|
|
|
|
|
|
|
|
|
|
Total excluding Corporate TSA Revenue |
|
2,480,408 |
|
|
2,315,136 |
|
|
|
|
|
|
|
|
|
|
|
Corporate |
|
- |
|
|
- |
|
n/a |
|
n/a |
|
n/a |
|
n/a |
|
n/a |
|
|
$ |
2,480,408 |
|
$ |
2,315,136 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International |
Q4 2021 |
|
Q4 2020 |
|
Total Sales Growth |
|
Foreign Exchange Growth |
|
Local Currency Growth |
|
Acquisition Growth |
|
Local Internal Growth |
|||
Dental Merchandise |
$ |
608,603 |
|
$ |
598,632 |
|
|
|
- |
|
|
|
|
|
|
|
Dental Equipment |
|
193,959 |
|
|
189,373 |
|
|
|
- |
|
|
|
|
|
|
|
Total Dental |
|
802,562 |
|
|
788,005 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Medical |
|
24,957 |
|
|
34,060 |
|
- |
|
- |
|
- |
|
|
|
- |
|
Total Health Care Distribution |
|
827,519 |
|
|
822,065 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Technology and value-added services |
|
22,595 |
|
|
19,255 |
|
|
|
- |
|
|
|
|
|
|
|
Total excluding Corporate TSA Revenue |
|
850,114 |
|
|
841,320 |
|
|
|
- |
|
|
|
|
|
|
|
Corporate |
|
- |
|
|
9,269 |
|
n/a |
|
n/a |
|
n/a |
|
n/a |
|
n/a |
|
|
$ |
850,114 |
|
$ |
850,589 |
|
- |
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Corporate TSA revenues represents sales of certain products to |
||||||||||||||||
| Exhibit A - Year-to-Date Sales | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Full Year 2021 |
||||||||||||||||
Sales Summary |
||||||||||||||||
(in thousands) |
||||||||||||||||
(unaudited) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Full Year 2021 over Full Year 2020 |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Global |
Full Year 2021 |
|
Full Year 2020 |
|
Total Sales Growth |
|
Foreign Exchange Growth |
|
Local Currency Growth |
|
Acquisition Growth |
|
Local Internal Growth |
|||
Dental Merchandise |
$ |
5,854,451 |
|
$ |
4,555,234 |
|
|
|
|
|
|
|
|
|
|
|
Dental Equipment |
|
1,687,499 |
|
|
1,357,359 |
|
|
|
|
|
|
|
|
|
|
|
Total Dental |
|
7,541,950 |
|
|
5,912,593 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Medical |
|
4,218,175 |
|
|
3,617,017 |
|
|
|
|
|
|
|
|
|
|
|
Total Health Care Distribution |
|
11,760,125 |
|
|
9,529,610 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Technology and value-added services |
|
640,896 |
|
|
514,258 |
|
|
|
|
|
|
|
|
|
|
|
Total excluding Corporate TSA Revenue |
|
12,401,021 |
|
|
10,043,868 |
|
|
|
|
|
|
|
|
|
|
|
Corporate |
|
- |
|
|
75,273 |
|
n/a |
|
n/a |
|
n/a |
|
n/a |
|
n/a |
|
Total Global |
$ |
12,401,021 |
|
$ |
10,119,141 |
|
|
|
|
|
|
|
|
|
|
|
|
Full Year 2021 |
|
Full Year 2020 |
|
Total Sales Growth |
|
Foreign Exchange Growth |
|
Local Currency Growth |
|
Acquisition Growth |
|
Local Internal Growth |
|||
Dental Merchandise |
$ |
3,513,057 |
|
$ |
2,656,684 |
|
|
|
|
|
|
|
|
|
|
|
Dental Equipment |
|
991,186 |
|
|
814,837 |
|
|
|
|
|
|
|
|
|
|
|
Total Dental |
|
4,504,243 |
|
|
3,471,521 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Medical |
|
4,115,240 |
|
|
3,514,670 |
|
|
|
|
|
|
|
|
|
|
|
Total Health Care Distribution |
|
8,619,483 |
|
|
6,986,191 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Technology and value-added services |
|
554,123 |
|
|
446,830 |
|
|
|
|
|
|
|
|
|
|
|
Total excluding Corporate TSA Revenue |
|
9,173,606 |
|
|
7,433,021 |
|
|
|
|
|
|
|
|
|
|
|
Corporate |
|
- |
|
|
- |
|
n/a |
|
n/a |
|
n/a |
|
n/a |
|
n/a |
|
|
$ |
9,173,606 |
|
$ |
7,433,021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International |
Full Year 2021 |
|
Full Year 2020 |
|
Total Sales Growth |
|
Foreign Exchange Growth |
|
Local Currency Growth |
|
Acquisition Growth |
|
Local Internal Growth |
|||
Dental Merchandise |
$ |
2,341,394 |
|
$ |
1,898,550 |
|
|
|
|
|
|
|
|
|
|
|
Dental Equipment |
|
696,313 |
|
|
542,522 |
|
|
|
|
|
|
|
|
|
|
|
Total Dental |
|
3,037,707 |
|
|
2,441,072 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Medical |
|
102,935 |
|
|
102,347 |
|
|
|
|
|
- |
|
|
|
- |
|
Total Health Care Distribution |
|
3,140,642 |
|
|
2,543,419 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Technology and value-added services |
|
86,773 |
|
|
67,428 |
|
|
|
|
|
|
|
|
|
|
|
Total excluding Corporate TSA Revenue |
|
3,227,415 |
|
|
2,610,847 |
|
|
|
|
|
|
|
|
|
|
|
Corporate |
|
- |
|
|
75,273 |
|
n/a |
|
n/a |
|
n/a |
|
n/a |
|
n/a |
|
|
$ |
3,227,415 |
|
$ |
2,686,120 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Corporate TSA revenues represents sales of certain animal health products to |
||||||||||||||||
Exhibit B |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|||||||||||||||||
2021 Fourth Quarter and Full Year |
|
|||||||||||||||||
Reconciliation of reported GAAP net income from continuing operations and |
|
|||||||||||||||||
diluted EPS from continuing operations attributable to |
|
|||||||||||||||||
to non-GAAP net income from continuing operations and |
|
|||||||||||||||||
diluted EPS from continuing operations attributable to |
|
|||||||||||||||||
(in thousands, except per share data) |
|
|||||||||||||||||
(unaudited) |
|
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
Fourth Quarter |
|
|
|
Full Year |
|
|||||||||||
|
|
|
|
|
|
|
% |
|
|
|
|
|
|
|
% |
|
||
|
|
2021 |
|
|
2020 |
|
Growth |
|
|
|
2021 |
|
|
2020 |
Growth |
|
||
Net income from continuing operations attributable to |
$ |
147,233 |
|
$ |
141,921 |
|
3.7 |
% |
|
$ |
631,232 |
|
$ |
402,808 |
56.7 |
% |
||
Diluted EPS from continuing operations attributable to |
$ |
1.05 |
|
$ |
0.99 |
|
6.1 |
% |
|
$ |
4.45 |
|
$ |
2.81 |
58.4 |
% |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Non-GAAP Adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Restructuring costs - Pre-tax (1) |
$ |
4,579 |
|
$ |
4,380 |
|
|
|
|
$ |
7,939 |
|
$ |
32,093 |
|
|
||
Income tax benefit for restructuring costs (1) |
|
(1,145) |
|
|
(1,095) |
|
|
|
|
|
(1,985) |
|
|
(8,023) |
|
|
||
Settlement and litigation costs - Pre-tax (2) |
|
- |
|
|
- |
|
|
|
|
|
14,253 |
|
|
- |
|
|
||
Income tax benefit for settlement and litigation costs (2) |
|
- |
|
|
- |
|
|
|
|
|
(3,548) |
|
|
- |
|
|
||
Gain on sale of equity investments (3) |
|
- |
|
|
(1,572) |
|
|
|
|
|
(7,318) |
|
|
(1,572) |
|
|
||
Total non-GAAP adjustments to Net income from continuing operations |
$ |
3,434 |
|
$ |
1,713 |
|
|
|
|
$ |
9,341 |
|
$ |
22,498 |
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Non-GAAP adjustments to diluted EPS from continuing operations |
$ |
0.02 |
|
$ |
0.01 |
|
|
|
|
$ |
0.07 |
|
$ |
0.16 |
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Non-GAAP Net income from continuing operations attributable to |
$ |
150,667 |
|
$ |
143,634 |
|
4.9 |
% |
|
$ |
640,573 |
|
$ |
425,306 |
50.6 |
% |
||
Non-GAAP diluted EPS from continuing operations attributable to |
$ |
1.07 |
|
$ |
1.00 |
|
7.0 |
% |
|
$ |
4.52 |
|
$ |
2.97 |
52.2 |
% |
||
Management believes that non-GAAP financial measures provide investors with useful supplemental information about the financial performance of our business, enable comparison of financial results between periods where certain items may vary independent of business performance and allow for greater transparency with respect to key metrics used by management in operating our business. These non-GAAP financial measures are presented solely for informational and comparative purposes and should not be regarded as a replacement for corresponding, similarly captioned, GAAP measures.
(1) |
Represents Q4 2021 restructuring costs of |
|
(2) |
Represents a YTD 2021 pre-tax charge of |
|
(3) |
In the third quarter of 2021 we received contingent proceeds of |
View source version on businesswire.com: https://www.businesswire.com/news/home/20220214005824/en/
Investors
Executive Vice President and Chief Financial Officer
steven.paladino@henryschein.com
(631) 843-5500
Vice President, Investor Relations and Strategic Financial Project Officer
graham.stanley@henryschein.com
(631) 843-5963
Media
Vice President, Global Corporate Media Relations
annmarie.gothard@henryschein.com
(631) 390-8169
Source:
FAQ
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