OREANDA-NEWS. Henry Schein, Inc. (NASDAQ: HSIC), the world's largest provider of health care products and services to office-based dental, animal health and medical practitioners, today reported financial results for the second quarter of 2016.

Net sales for the quarter ended June 25, 2016, were $2.9 billion, an increase of 9.3% compared with the second quarter of 2015.  This consisted of 9.7% growth in local currencies and a 0.4% decline related to foreign currency exchange.  In local currencies, internally generated sales increased 7.6% and acquisition growth was 2.1% (see Exhibit A for details of sales growth).

Net income attributable to Henry Schein, Inc. for the second quarter of 2016 was $120.1 million, or $1.46 per diluted share.  This represents growth of 1.8% and 4.3%, respectively, compared with the second quarter of 2015.  Our second quarter results include the favorable effect of a proposed tax audit settlement resulting in a reduction in income tax expense of $4.5 million, or approximately $0.05 per diluted share.  Excluding restructuring costs of $20.4 million pretax, or $0.18 per diluted share, adjusted net income attributable to Henry Schein, Inc. for the second quarter of 2016 was $135.4 million, or $1.64 per diluted share.  This represents growth of 9.9% and 12.3%, respectively, compared with the second quarter of 2015, excluding restructuring costs (see Exhibit B for reconciliation of GAAP net income and EPS to non-GAAP adjusted net income and EPS).

"North America dental sales were below our expectations in the second quarter, however, sales in our Medical, Animal Health and Technology and Value-Added Services businesses were strong," said Stanley M. Bergman, Chairman of the Board and Chief Executive Officer of Henry Schein.  "Our business model has served us well during periods of sustained economic expansion as well as in times of uncertainty in our markets.  We believe our business model and strategic plan, including our continued investments, will drive our growth over the long term, and we remain extremely well-positioned in each of the vertical markets we serve." 

Dental sales of $1.4 billion increased 4.0%, consisting of 4.1% growth in local currencies and a 0.1% decline related to foreign currency exchange.  In local currencies, internally generated sales increased 2.8% and acquisition growth was 1.3%.  The 2.8% internal growth in local currencies included 2.0% growth in North America and 4.2% growth internationally.

"North America dental sales reflect softness in the U.S. that began in early June.  North America dental consumable merchandise internal sales growth in local currencies was 1.8%, and equipment sales and service internal sales growth in local currencies was 2.7%.  Although this sales growth was lower than expected, we believe we have a successful and proven model of delivering value-added solutions to our customers and we have increased our focus on delivering better sales results," commented Mr. Bergman. "International consumable merchandise internal sales growth in local currencies of 4.5% was solid.  International equipment sales and service internal sales in local currencies increased 3.1% over the prior year.  Our international dental sales growth was driven by strength in Italy, France and Spain."

"During the second quarter we announced an investment in Custom Automated Prosthetics (CAP), a U.S. digital laboratory supply company offering CAD/CAM equipment and zirconia materials. The integration of CAP with Zahn Dental and our Custom Milling Center furthers our commitment to providing our dental laboratory customers with a greater selection of digital equipment, materials and services," he added. 

Animal Health sales of $853.6 million increased 14.0%, consisting of 15.2% growth in local currencies and a 1.2% decline related to foreign currency exchange.  In local currencies, internally generated sales increased 11.8% and acquisition growth was 3.4%.  The 11.8% internal growth in local currencies included 18.8% growth in North America and 4.9% growth internationally.

"Normalizing Animal Health results to account for the impact of certain products switching between agency sales and direct sales, internal sales growth in local currencies was 8.2% in the second quarter, including 11.4% growth in North America," commented Mr. Bergman.  "International local currency sales during the second quarter were up nearly 12% with organic growth complemented by acquisition growth."

Medical sales of $538.8 million increased 14.5%, all internally generated and with no material impact from foreign currency exchange.

"Normalizing results for the impact of agency sales in the prior year, North America Medical internal sales growth was approximately 10.4%.  This represents the sixth consecutive quarter of double-digit sales gains and reflects our continued success with large group practices, including Integrated Delivery Networks," remarked Mr. Bergman. 

Technology and Value-Added Services sales of $107.0 million increased 19.6%, including 20.4% growth in local currencies and a 0.8% decline related to foreign currency exchange.  In local currencies, internally generated sales increased 8.1% and acquisition growth was 12.3%.

"North America Technology and Value-Added Services internal sales growth was 8.5% in local currencies and matched the highest quarterly growth rate in more than three years.  International internal sales growth in local currencies was 6.4%," commented Mr. Bergman.  "Strategic acquisitions have bolstered our market share in this business, as sales in local currencies increased by more than 21% in North America during the second quarter and by nearly 15% internationally."

Stock Repurchase Plan

The Company announced that it repurchased approximately 337,000 shares of its common stock during the second quarter at an average price of $169.41 per share, or approximately $57 million.  The impact of the repurchase of shares on second quarter diluted EPS was immaterial.  At the close of the second quarter, Henry Schein had approximately $243 million authorized for future repurchases of its common stock.

Year-to-Date Results

Net sales for the first half of 2016 were $5.6 billion, an increase of 9.7% compared with the first half of 2015.  This consisted of 10.8% growth in local currencies and a decline of 1.1% related to foreign currency exchange.  In local currencies, internally generated sales increased 8.4% and acquisition growth was 2.4%.

Net income attributable to Henry Schein, Inc. for the first half of 2016 was $233.8 million, or $2.83 per diluted share, an increase of 5.6% and 8.0%, respectively, compared with the first half of 2015.  Excluding restructuring costs of $24.4 million pretax or $0.22 per diluted share, net income attributable to Henry Schein, Inc. for the first half of 2016 was $252.2 million or $3.05 per diluted share, an increase of 8.9% and 11.3%, respectively, compared with the first half of 2015, excluding restructuring costs (see Exhibit B for reconciliation of GAAP net income and EPS to non-GAAP adjusted net income and EPS).

2016 EPS Guidance

Henry Schein today adjusted 2016 financial guidance, as follows:

  • Adjusted diluted EPS attributable to Henry Schein, Inc. is expected to be $6.55 to $6.60 for 2016, which represents growth of 10% to 11% compared with 2015 adjusted diluted EPS of $5.96.  Adjusted diluted EPS excludes restructuring costs.  This compares with previous guidance for 2016 adjusted diluted EPS of $6.55 to $6.65.  This revised guidance reflects ongoing uncertainty related to the recent Brexit vote, the strength of the U.S. dollar and a cautious view of the North America dental market.
     
  • Guidance is presented on a non-GAAP basis only, given that the Company cannot reasonably project restructuring costs for the second half of 2016.  For the same reasons, the Company is unable to address the probable significance of the unavailable information.
     
  • Guidance for 2016 adjusted diluted EPS attributable to Henry Schein, Inc. is for current continuing operations as well as completed or previously announced acquisitions, and does not include the impact of potential future acquisitions, if any, or restructuring costs. Guidance also assumes foreign exchange rates that are generally consistent with current levels.
     
  • The Company now expects that restructuring initiatives will continue into the second half of the year as it continues to lower costs in light of market uncertainties.  At this time we are not able to provide estimates for the impact of the restructuring on 2016 financial results.

About Henry Schein, Inc.

Henry Schein, Inc. (NASDAQ:HSIC) is the world's largest provider of health care products and services to office-based dental, animal health and medical practitioners. The Company also serves dental laboratories, government and institutional health care clinics, and other alternate care sites. A Fortune 500® Company and a member of the S&P 500® and the NASDAQ 100® indexes, Henry Schein employs more than 19,000 Team Schein Members and serves more than 1 million customers.

The Company offers a comprehensive selection of products and services, including value-added solutions for operating efficient practices and delivering high-quality care. Henry Schein operates through a centralized and automated distribution network, with a selection of more than 110,000 branded products and Henry Schein private-brand products in stock, as well as more than 150,000 additional products available as special-order items. The Company also offers its customers exclusive, innovative technology solutions, including practice management software and e-commerce solutions, as well as a broad range of financial services.    

(TABLES TO FOLLOW)

                               
                               

HENRY SCHEIN, INC.

CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per share data)

(unaudited)
                               
           

Three Months Ended

    

Six Months Ended
         

June 25,

  

June 27,

  

June 25,

  

June 27,
         

2016

  

2015

  

2016

  

2015
                               

Net sales

  

$

2,872,630

  

$

2,629,320

  

$

5,585,586

  

$

5,092,966

Cost of sales

    

2,069,314

    

1,878,642

    

4,002,965

    

3,628,893
   

Gross profit

    

803,316

    

750,678

    

1,582,621

    

1,464,073

Operating expenses:

                        
 

Selling, general and administrative

    

602,256

    

560,426

    

1,201,309

    

1,105,592
 

Restructuring costs

    

20,383

    

7,222

    

24,441

    

14,084
   

Operating income

    

180,677

    

183,030

    

356,871

    

344,397

Other income (expense):

                        
 

Interest income

    

3,556

    

3,257

    

6,904

    

6,712
 

Interest expense

    

(7,367)

    

(6,290)

    

(14,494)

    

(12,553)
 

Other, net

    

268

    

(177)

    

3,405

    

(57)
   

Income before taxes and equity in earnings

                        
   

     of affiliates

    

177,134

    

179,820

    

352,686

    

338,499

Income taxes

    

(48,965)

    

(53,784)

    

(102,498)

    

(102,911)

Equity in earnings of affiliates

    

4,929

    

3,572

    

7,443

    

5,600

Net income

    

133,098

    

129,608

    

257,631

    

241,188
 

Less: Net income attributable to noncontrolling interests

    

(13,001)

    

(11,680)

    

(23,782)

    

(19,813)

Net income attributable to Henry Schein, Inc.

  

$

120,097

  

$

117,928

  

$

233,849

  

$

221,375
                               

Earnings per share attributable to Henry Schein, Inc.:

                        
                               
 

Basic

  

$

1.47

  

$

1.42

  

$

2.87

  

$

2.66
 

Diluted

  

$

1.46

  

$

1.40

  

$

2.83

  

$

2.62
                               

Weighted-average common shares outstanding:

                        
 

Basic

    

81,458

    

83,053

    

81,516

    

83,139
 

Diluted

    

82,394

    

84,249

    

82,565

    

84,433
                   
                   
                   

HENRY SCHEIN, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share data)
                   
         

June 25,

  

December 26,
         

2016

  

2015
         

(unaudited)

      

ASSETS

            

Current assets:

            
 

Cash and cash equivalents

  

$

63,560

  

$

72,086
 

Accounts receivable, net of reserves of $76,101 and $77,008

    

1,296,225

    

1,229,816
 

Inventories, net

    

1,482,507

    

1,509,957
 

Deferred income taxes

    

57,642

    

58,159
 

Prepaid expenses and other

    

377,657

    

361,082
     

Total current assets

    

3,277,591

    

3,231,100

Property and equipment, net

    

320,098

    

318,476

Goodwill

    

1,954,584

    

1,907,593

Other intangibles, net

    

593,919

    

592,971

Investments and other

    

487,404

    

454,600
     

Total assets

  

$

6,633,596

  

$

6,504,740
                   

LIABILITIES AND STOCKHOLDERS' EQUITY

            

Current liabilities:

            
 

Accounts payable

  

$

881,667

  

$

1,005,798
 

Bank credit lines

    

237,809

    

328,631
 

Current maturities of long-term debt

    

17,189

    

17,331
 

Accrued expenses:

            
   

Payroll and related

    

259,710

    

258,416
   

Taxes

    

148,865

    

161,760
   

Other

    

365,672

    

375,061
     

Total current liabilities

    

1,910,912

    

2,146,997

Long-term debt

    

700,052

    

463,752

Deferred income taxes

    

248,308

    

252,862

Other liabilities

    

250,018

    

212,121
     

Total liabilities

    

3,109,290

    

3,075,732
                   

Redeemable noncontrolling interests

    

568,693

    

542,194

Commitments and contingencies

            
                   

Stockholders' equity:

            
 

   Preferred stock, $.01 par value, 1,000,000 shares authorized,

            
   

none outstanding

    

-

    

-
 

Common stock, $.01 par value, 240,000,000 shares authorized,

            
   

81,815,567 outstanding on June 25, 2016 and

            
   

82,415,320 outstanding on December 26, 2015

    

818

    

824
 

Additional paid-in capital

    

151,056

    

207,374
 

Retained earnings

    

3,010,456

    

2,895,997
 

Accumulated other comprehensive loss

    

(214,607)

    

(219,939)
   

Total Henry Schein, Inc. stockholders' equity

    

2,947,723

    

2,884,256
 

Noncontrolling interests

    

7,890

    

2,558
     

Total stockholders' equity

    

2,955,613

    

2,886,814
   

Total liabilities, redeemable noncontrolling interests and stockholders' equity

  

$

6,633,596

  

$

6,504,740


 

                                 
                                 

HENRY SCHEIN, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)
                                 
           

Three Months Ended

  

Six Months Ended
           

June 25,

  

June 27,

  

June 25,

  

June 27,
           

2016

  

2015

  

2016

  

2015

Cash flows from operating activities:

                        
 

Net income

  

$

133,098

  

$

129,608

  

$

257,631

  

$

241,188
 

Adjustments to reconcile net income to net cash

                        
   

provided by operating activities:

                        
     

Depreciation and amortization

    

42,431

    

39,026

    

83,398

    

76,175
     

Stock-based compensation expense

    

13,312

    

13,502

    

27,456

    

22,001
     

Provision for losses on trade and other

                        
       

accounts receivable

    

210

    

1,039

    

790

    

2,290
     

Benefit from deferred income taxes

    

(11,621)

    

(4,891)

    

(4,658)

    

(121)
     

Equity in earnings of affiliates

    

(4,929)

    

(3,572)

    

(7,443)

    

(5,600)
     

Distributions from equity affiliates

    

4,156

    

3,778

    

6,337

    

6,113
     

Changes in unrecognized tax benefits

    

1,484

    

3,029

    

2,853

    

4,297
     

Other

    

997

    

1,182

    

1,959

    

4,862
     

Changes in operating assets and liabilities,

                        
     

  net of acquisitions:

                        
       

Accounts receivable

    

(16,935)

    

(45,591)

    

(56,702)

    

(55,452)
       

Inventories

    

20,465

    

8,882

    

34,395

    

(3,024)
       

Other current assets

    

(13,958)

    

(22,690)

    

(38,876)

    

(26,349)
       

Accounts payable and accrued expenses

    

105,674

    

84,454

    

(134,268)

    

(85,278)

Net cash provided by operating activities

    

274,384

    

207,756

    

172,872

    

181,102
                                 

Cash flows from investing activities:

                        
 

Purchases of fixed assets

    

(13,575)

    

(17,937)

    

(26,180)

    

(33,430)
 

Payments for equity investments and business

                        
   

acquisitions, net of cash acquired

    

(39,879)

    

(47,679)

    

(92,441)

    

(61,316)
 

Proceeds from sales of available-for-sale securities

    

-

    

20

    

-

    

20
 

Other

    

4,064

    

(1,994)

    

(1,765)

    

(3,179)

Net cash used in investing activities

    

(49,390)

    

(67,590)

    

(120,386)

    

(97,905)
                                 

Cash flows from financing activities:

                        
 

Repayments of bank borrowings

    

(192,590)

    

(30,103)

    

(97,479)

    

(49,989)
 

Proceeds from issuance of long-term debt

    

34,000

    

-

    

244,000

    

125,000
 

Debt issuance costs

    

(175)

    

(150)

    

(233)

    

(150)
 

Principal payments for long-term debt

    

(367)

    

(68,507)

    

(7,921)

    

(69,243)
 

Proceeds from issuance of stock upon exercise

                        
   

of stock options

    

2,661

    

3,281

    

9,059

    

10,858
 

Payments for repurchases of common stock

    

(57,012)

    

(37,500)

    

(157,009)

    

(113,207)
 

Excess tax benefits related to stock-based

                        
   

compensation

    

-

    

88

    

-

    

2,932
 

Distributions to noncontrolling shareholders

    

(18,064)

    

(11,568)

    

(20,160)

    

(14,681)
 

Acquisitions of noncontrolling interests in

                        
   

subsidiaries

    

(2,921)

    

(8,052)

    

(35,632)

    

(8,257)

Net cash used in financing activities

    

(234,468)

    

(152,511)

    

(65,375)

    

(116,737)
                                 

Effect of exchange rate changes on cash and

                        
 

cash equivalents

    

1,420

    

211

    

4,363

    

(8,866)

Net change in cash and cash equivalents

    

(8,054)

    

(12,134)

    

(8,526)

    

(42,406)

Cash and cash equivalents, beginning of period

    

71,614

    

59,202

    

72,086

    

89,474

Cash and cash equivalents, end of period

  

$

63,560

  

$

47,068

  

$

63,560

  

$

47,068

Note: Certain prior period amounts have been reclassified to conform to the current period presentation.

            
                               

Exhibit A - QTD Sales

                              
                               

Henry Schein, Inc.

2016 Second Quarter

Sales Summary

(in thousands)

(unaudited)
                               

Q2 2016 over Q2 2015
                               

Global

Q2 2016

  

Q2 2015

  

Total Sales Growth

  

Foreign Exchange Growth

  

Local Currency Growth

  

Acquisition Growth

  

Local Internal Growth
                               

   Dental

$

1,373,188

  

$

1,320,743

  

4.0%

  

-0.1%

  

4.1%

  

1.3%

  

2.8%
                               

   Animal Health

  

853,598

    

748,558

  

14.0%

  

-1.2%

  

15.2%

  

3.4%

  

11.8%
                               

   Medical

  

538,825

    

470,519

  

14.5%

  

0.0%

  

14.5%

  

0.0%

  

14.5%
                               

Total Health Care Distribution

  

2,765,611

    

2,539,820

  

8.9%

  

-0.4%

  

9.3%

  

1.7%

  

7.6%
                               

Technology and value-added services

  

107,019

    

89,500

  

19.6%

  

-0.8%

  

20.4%

  

12.3%

  

8.1%
                               

Total Global

$

2,872,630

  

$

2,629,320

  

9.3%

  

-0.4%

  

9.7%

  

2.1%

  

7.6%
                               

North America

Q2 2016

  

Q2 2015

  

Total Sales Growth

  

Foreign Exchange Growth

  

Local Currency Growth

  

Acquisition Growth

  

Local Internal Growth
                               

   Dental

$

865,585

  

$

847,429

  

2.1%

  

-0.5%

  

2.6%

  

0.6%

  

2.0%
                               

   Animal Health

  

445,918

    

375,575

  

18.7%

  

-0.1%

  

18.8%

  

0.0%

  

18.8%
                               

   Medical

  

520,332

    

452,735

  

14.9%

  

0.0%

  

14.9%

  

0.0%

  

14.9%
                               

Total Health Care Distribution

  

1,831,835

    

1,675,739

  

9.3%

  

-0.3%

  

9.6%

  

0.3%

  

9.3%
                               

Technology and value-added services

  

90,090

    

74,154

  

21.5%

  

-0.1%

  

21.6%

  

13.1%

  

8.5%
                               

Total North America

$

1,921,925

  

$

1,749,893

  

9.8%

  

-0.3%

  

10.1%

  

0.9%

  

9.2%
                               

International

Q2 2016

  

Q2 2015

  

Total Sales Growth

  

Foreign Exchange Growth

  

Local Currency Growth

  

Acquisition Growth

  

Local Internal Growth
                               

   Dental

$

507,603

  

$

473,314

  

7.2%

  

0.3%

  

6.9%

  

2.7%

  

4.2%
                               

   Animal Health

  

407,680

    

372,983

  

9.3%

  

-2.3%

  

11.6%

  

6.7%

  

4.9%
                               

   Medical

  

18,493

    

17,784

  

4.0%

  

1.6%

  

2.4%

  

0.0%

  

2.4%
                               

Total Health Care Distribution

  

933,776

    

864,081

  

8.1%

  

-0.7%

  

8.8%

  

4.4%

  

4.4%
                               

Technology and value-added services

  

16,929

    

15,346

  

10.3%

  

-4.4%

  

14.7%

  

8.3%

  

6.4%
                               

Total International

$

950,705

  

$

879,427

  

8.1%

  

-0.8%

  

8.9%

  

4.4%

  

4.5%
                                 

Exhibit A - YTD Sales

                                
                                 

Henry Schein, Inc.

  

2016 Second Quarter Year to Date

  

Sales Summary

  

(in thousands)

  

(unaudited)

  
                                 

Q2 2016 YTD over Q2 2015 YTD

  
                                 

Global

Q2 2016 YTD

  

Q2 2015 YTD

  

Total Sales Growth

  

Foreign Exchange Growth

  

Local Currency Growth

  

Acquisition Growth

  

Local Internal Growth

  
                                 

   Dental

$

2,674,943

  

$

2,570,816

  

4.1%

  

-1.0%

  

5.1%

  

1.3%

  

3.8%

  
                                 

   Animal Health

  

1,625,011

    

1,432,882

  

13.4%

  

-2.0%

  

15.4%

  

4.5%

  

10.9%

  
                                 

   Medical

  

1,076,942

    

914,052

  

17.8%

  

-0.1%

  

17.9%

  

0.0%

  

17.9%

  
                                 

Total Health Care Distribution

  

5,376,896

    

4,917,750

  

9.3%

  

-1.2%

  

10.5%

  

2.0%

  

8.5%

  
                                 

Technology and value-added services

  

208,690

    

175,216

  

19.1%

  

-1.1%

  

20.2%

  

12.4%

  

7.8%

  
                                 

Total Global

$

5,585,586

  

$

5,092,966

  

9.7%

  

-1.1%

  

10.8%

  

2.4%

  

8.4%

  
                                 

North America

Q2 2016 YTD

  

Q2 2015 YTD

  

Total Sales Growth

  

Foreign Exchange Growth

  

Local Currency Growth

  

Acquisition Growth

  

Local Internal Growth

  
                                 

   Dental

$

1,700,422

  

$

1,636,612

  

3.9%

  

-0.7%

  

4.6%

  

0.5%

  

4.1%

  
                                 

   Animal Health

  

845,245

    

713,924

  

18.4%

  

-0.1%

  

18.5%

  

0.7%

  

17.8%

  
                                 

   Medical

  

1,039,773

    

877,379

  

18.5%

  

0.0%

  

18.5%

  

0.0%

  

18.5%

  
                                 

Total Health Care Distribution

  

3,585,440

    

3,227,915

  

11.1%

  

-0.4%

  

11.5%

  

0.4%

  

11.1%

  
                                 

Technology and value-added services

  

176,125

    

144,819

  

21.6%

  

-0.2%

  

21.8%

  

13.6%

  

8.2%

  
                                 

Total North America

$

3,761,565

  

$

3,372,734

  

11.5%

  

-0.4%

  

11.9%

  

1.0%

  

10.9%

  
                                 

International

Q2 2016 YTD

  

Q2 2015 YTD

  

Total Sales Growth

  

Foreign Exchange Growth

  

Local Currency Growth

  

Acquisition Growth

  

Local Internal Growth

  
                                 

   Dental

$

974,521

  

$

934,204

  

4.3%

  

-1.7%

  

6.0%

  

2.8%

  

3.2%

  
                                 

   Animal Health

  

779,766

    

718,958

  

8.5%

  

-3.8%

  

12.3%

  

8.3%

  

4.0%

  
                                 

   Medical

  

37,169

    

36,673

  

1.4%

  

-0.8%

  

2.2%

  

0.0%

  

2.2%

  
                                 

Total Health Care Distribution

  

1,791,456

    

1,689,835

  

6.0%

  

-2.6%

  

8.6%

  

5.1%

  

3.5%

  
                                 

Technology and value-added services

  

32,565

    

30,397

  

7.1%

  

-5.1%

  

12.2%

  

6.5%

  

5.7%

  
                                 

Total International

$

1,824,021

  

$

1,720,232

  

6.0%

  

-2.7%

  

8.7%

  

5.1%

  

3.6%

  
 

Note: Certain prior quarter amounts have been reclassified to conform to the current period presentation.

Exhibit B

                                  
                                   

Henry Schein, Inc.

2016 Second Quarter and Year-to-Date

Reconciliation of reported GAAP net income and diluted EPS attributable to Henry Schein, Inc. to

non-GAAP net income and diluted EPS attributable to Henry Schein, Inc.

(in thousands, except per share data)

(unaudited)
                                   
                                   
   

Second Quarter

      

Year-to-Date

  
             

%

                

%

  
   

2016

    

2015

  

Growth

      

2016

    

2015

  

Growth

  

Net Income attributable to Henry Schein, Inc.

$

120,097

  

$

117,928

  

1.8

%

  

$

233,849

  

$

221,375

  

5.6

%

Diluted EPS attributable to Henry Schein, Inc.

$

1.46

  

$

1.40

  

4.3

%

  

$

2.83

  

$

2.62

  

8.0

%
                                   

Non-GAAP Adjustments

                                  

Restructuring costs - Pre-tax

$

20,383

  

$

7,222

        

$

24,441

  

$

14,084

      

Income tax benefit for restructuring costs

$

(5,096)

  

$

(1,953)

        

$

(6,110)

  

$

(3,813)

      
                                   

Total non-GAAP adjustments to Net Income

                                  

attributable to Henry Schein, Inc.

$

15,287

  

$

5,269

        

$

18,331

  

$

10,271

      
                                   

Total non-GAAP adjustments to diluted EPS

                                  

attributable to Henry Schein, Inc.

$

0.18

  

$

0.06

        

$

0.22

  

$

0.12

      
                                   
                                   

Non-GAAP Net Income attributable to Henry Schein, Inc.

$

135,384

  

$

123,197

  

9.9

%

  

$

252,180

  

$

231,646

  

8.9

%
                                   

Non-GAAP diluted EPS attributable to Henry Schein, Inc.

$

1.64

  

$

1.46

  

12.3

%

  

$

3.05

  

$

2.74

  

11.3

%
 

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.