Market Overview

Henry Schein Reports Record Fourth Quarter And Full Year 2016 Financial Results

Share:

- Fourth quarter GAAP diluted EPS up 10.9% to $1.73, non-GAAP diluted EPS up 12.6% to $1.88

- Affirms 2017 diluted EPS guidance range representing growth of 16% to 18% compared to 2016 GAAP diluted EPS, or growth of 8% to 10% compared to 2016 non-GAAP diluted EPS

MELVILLE, N.Y., Feb. 21, 2017 /PRNewswire/ -- 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 record fourth quarter and full year financial results.

Henry Schein, Inc. is on a 52/53 week fiscal year ending on the last Saturday in December, and 2016 had an extra selling week compared with 2015.  This extra selling week occurred in the fourth quarter of 2016.  In order to facilitate more meaningful comparisons, the Company is providing a separate estimate of the impact of the extra week on sales growth, as well as providing internal sales growth in local currencies excluding that impact.

Net sales for the quarter ended December 31, 2016 were $3.1 billion, an increase of 9.5% compared with the fourth quarter of 2015.  This consisted of internal sales growth in local currencies of 4.2%, acquisition growth of 1.3%, a decline related to foreign currency exchange of 1.5%, and growth due to the extra week of 5.5% (see Exhibit A for details of sales growth).

Net income attributable to Henry Schein, Inc. for the fourth quarter of 2016 was $139.2 million, or $1.73 per diluted share on a GAAP basis.  This represents growth of 7.1% and 10.9%, respectively, compared with the fourth quarter of 2015.  Excluding restructuring costs of $16.1 million pretax, or $0.15 per diluted share, non-GAAP net income attributable to Henry Schein, Inc. for the fourth quarter of 2016 was $151.3 million, or $1.88 per diluted share. This represents growth of 8.6% and 12.6%, respectively, compared with non-GAAP results for the fourth quarter of 2015.  Fourth quarter 2015 non-GAAP results exclude restructuring costs of $12.4 million pretax, or $0.11 per diluted share (see Exhibit B for reconciliation of GAAP net income and EPS to non-GAAP net income and EPS).

"We are pleased to report record financial results for the 2016 fourth quarter and full year.  The markets we serve are experiencing consistent growth, and we remain focused on gaining share across all our business units while executing against our financial objectives," said Stanley M. Bergman, Chairman of the Board and Chief Executive Officer of Henry Schein.  "We announced seven strategic acquisitions in 2016 with a total investment of approximately $229 million, as we continued to expand our geographic presence and enhance our product offerings.  Coming off a successful year, we are affirming guidance for 2017 diluted EPS that represents growth of 16% to 18% compared to 2016 GAAP diluted EPS, or growth of 8% to 10% compared to 2016 non-GAAP diluted EPS."

Dental sales of $1.5 billion increased 7.7% for the fourth quarter of 2016.  This consisted of internal sales growth in local currencies of 1.6%, acquisition growth of 1.7%, a decline related to foreign currency exchange of 1.0%, and growth due to the extra week of 5.4%.  In North America, internal sales growth in local currencies for dental consumable merchandise was 1.9%, and for dental equipment sales and services was 2.7%.  In international markets, internal sales growth in local currencies for dental consumable merchandise was 2.5% and equipment sales and service revenue decreased by 3.9% over the prior year mainly due to a difficult prior year comparison.

"We believe the North America dental consumable merchandise market is improving as we saw particularly strong growth in December and January," commented Mr. Bergman. "We also continue to see increased capital equipment investment in dental practices, which drove strong domestic equipment sales in December."

Animal Health sales of $837.8 million increased 10.8% for the quarter.  This consisted of internal sales growth in local currencies of 8.2%, acquisition growth of 0.4%, a decline related to foreign currency exchange of 3.4%, and growth due to the extra week of 5.6%.  Internal sales growth in local currencies of 8.2% includes 10.3% growth in North America and 6.3% growth internationally. 

"We believe we continued to gain market share in our Animal Health business in the fourth quarter both domestically and in international markets," commented Mr. Bergman.  "Overall the global Animal Health market is healthy and growing, particularly in the companion animal segment where we have expanded opportunities to deliver value-added solutions that help drive practice efficiency."

Medical sales of $621.1 million increased 10.6% for the quarter.  This consisted of internal sales growth in local currencies of 4.4%, a 0.1% decrease due to foreign currency exchange, and growth attributed to the extra week of 6.3%.

"We are pleased with sales in our Medical business as we believe we continue to gain market share, in particular among large group practices, including Integrated Delivery Networks," remarked Mr. Bergman. "Though the health care landscape is evolving, we believe that the trend toward treatment in the alternate care setting will continue as will the emphasis on wellness and prevention, which is directly associated with primary care physician visits."

Technology and Value-Added Services sales of $112.2 million increased 19.6% for the quarter. This consisted of internal sales growth in local currencies of 8.5%, acquisition growth of 9.8%, a decline related to foreign currency exchange of 1.9%, and growth due to the extra week of 3.2%.  Internal sales growth in local currencies was 7.4% in North America and was 13.9% in our international business.

"Our Technology and Value-Added Services internal sales growth in local currencies was highlighted by solid growth in our software services revenue in both North America and internationally," commented Mr. Bergman.  "Strategic acquisitions contributed approximately 10% to sales growth in both North America and internationally, driven by the contribution of sales from Vetstreet in the U.S. and RxWorks internationally."

Stock Repurchase Plan
The Company announced that it repurchased approximately 1.3 million shares of its common stock during the fourth quarter at an average price of $156.10 per share, or approximately $200 million.  The impact of the repurchase of shares on fourth quarter diluted EPS was approximately 1 cent.  At the close of the fourth quarter, Henry Schein had $250 million authorized for future repurchases of its common stock.

Full Year Results
For the year, net sales of $11.6 billion increased 8.9% compared with 2015.  This consisted of internal sales growth in local currencies of 6.7%, acquisition growth of 1.9%, a decline related to foreign currency exchange of 1.2%, and growth due to the extra week of 1.5%. 

Net income attributable to Henry Schein, Inc. for 2016 was $506.8 million, or $6.19 per diluted share on a GAAP basis, an increase of 5.8% and 8.8%, respectively, compared with 2015.  Excluding restructuring costs of $45.9 million pretax, or $0.42 per diluted share, non-GAAP net income attributable to Henry Schein, Inc. for 2016 was $541.2 million, or $6.61 per diluted share, an increase of 7.9% and 10.9%, respectively, compared with 2015. The prior year excludes restructuring costs of $34.9 million pretax, or $0.32 per diluted share, and a one-time income tax benefit, net of noncontrolling interest, of $3.8 million, or $0.05 per diluted share (see Exhibit B for reconciliation of GAAP net income and EPS to non-GAAP net income and EPS).

2017 EPS Guidance
Henry Schein, Inc. today affirmed 2017 financial guidance, as follows:

  • 2017 diluted EPS attributable to Henry Schein, Inc. is expected to be $7.17 to $7.30.  This guidance reflects growth of 16% to 18% compared with 2016 GAAP diluted EPS of $6.19, and growth of 8% to 10% compared with 2016 non-GAAP diluted EPS of $6.61.  The Company notes that the 2017 fiscal year includes one less week than 2016.
  • Guidance for 2017 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. Guidance also assumes foreign exchange rates that are generally consistent with current levels.

Fourth Quarter and Full Year 2016 Conference Call Webcast
The Company will hold a conference call to discuss fourth quarter and full year 2016 financial results today, beginning at 10:00 a.m. Eastern time.  Individual investors are invited to listen to the conference call through Henry Schein's website at www.henryschein.com.  In addition, a replay will be available beginning shortly after the call has ended.

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 21,000 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 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. 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.                                         

Headquartered in Melville, N.Y., Henry Schein has operations or affiliates in 33 countries. The Company's sales reached a record $11.6 billion in 2016, and have grown at a compound annual rate of approximately 15% 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 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 are identified by the use of such terms as "may," "could," "expect," "intend," "believe," "plan," "estimate," "forecast," "project," "anticipate" or other comparable terms.  A full discussion of our operations and financial condition, including factors that may affect our business and future prospects, is contained in documents we have filed with the United States Securities and Exchange Commission, or SEC, and will be contained in all subsequent periodic filings we make with the SEC. These documents identify in detail important risk factors that could cause our actual performance to differ materially from current expectations.

Risk factors and uncertainties that could cause actual results to differ materially from current and historical results include, but are not limited to: effects of a highly competitive and consolidating market; our dependence on third parties for the manufacture and supply of our products; our dependence upon sales personnel, customers, suppliers and manufacturers; our dependence on our senior management; fluctuations in quarterly earnings; 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 conditions; risks associated with currency fluctuations; risks associated with political and economic uncertainty; disruptions in financial markets; volatility of the market price of our common stock; changes in the health care industry; implementation of health care laws; failure to comply with regulatory requirements and data privacy laws; risks associated with our global operations; transitional challenges associated with acquisitions and joint ventures, including the failure to achieve anticipated synergies; financial risks associated with acquisitions and joint ventures; litigation risks; the dependence on our continued product development, technical support and successful marketing in the technology segment; increased competition by third party online commerce sites; risks from disruption to our information systems; cyberattacks or other privacy or data security breaches; certain provisions in our governing documents that may discourage third-party acquisitions of us; and changes in tax legislation. 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 this 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.

 

(TABLES TO FOLLOW)

 

































HENRY SCHEIN, INC.

CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per share data)






















Three Months Ended


Years Ended






December 31,


December 26,


December 31,


December 26,






2016


2015


2016


2015






(unaudited)


(unaudited)























Net sales


$

3,120,934


$

2,850,918


$

11,571,668


$

10,629,719

Cost of sales



2,259,077



2,051,640



8,337,699



7,617,460

Gross profit



861,857



799,278



3,233,969



3,012,259

Operating expenses:













Selling, general and administrative



631,795



586,176



2,416,504



2,243,356

Restructuring costs



16,080



12,409



45,891



34,931

Operating income



213,982



200,693



771,574



733,972

Other income (expense):













Interest income



3,230



3,094



13,275



12,935

Interest expense



(9,911)



(7,158)



(31,893)



(26,008)

Other, net



(327)



193



2,879



(141)

Income before taxes and equity in earnings













of affiliates



206,974



196,822



755,835



720,758

Income taxes



(58,859)



(59,248)



(217,958)



(211,391)

Equity in earnings of affiliates



5,358



3,269



18,518



14,060

Net income



153,473



140,843



556,395



523,427

Less: Net income attributable to noncontrolling interests



(14,257)



(10,895)



(49,617)



(44,369)

Net income attributable to Henry Schein, Inc.


$

139,216


$

129,948


$

506,778


$

479,058

















Earnings per share attributable to Henry Schein, Inc.:





























Basic


$

1.75


$

1.58


$

6.27


$

5.78

Diluted


$

1.73


$

1.56


$

6.19


$

5.69

















Weighted-average common shares outstanding:













Basic



79,514



82,264



80,820



82,844

Diluted



80,526



83,567



81,862



84,125

 

 































HENRY SCHEIN, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share data)
















December 31,


December 26,






2016


2015

ASSETS







Current assets:








Cash and cash equivalents


$

62,381


$

72,086


Accounts receivable, net of reserves of $90,329 and $77,008



1,254,139



1,229,816


Inventories, net



1,635,750



1,509,957


Deferred income taxes



-



58,159


Prepaid expenses and other



360,510



361,082


Total current assets



3,312,780



3,231,100

Property and equipment, net



333,906



318,476

Goodwill



2,019,740



1,907,593

Other intangibles, net



621,180



592,971

Investments and other



442,790



454,600


Total assets


$

6,730,396


$

6,504,740











LIABILITIES AND STOCKHOLDERS' EQUITY







Current liabilities:








Accounts payable


$

977,249


$

1,005,798


Bank credit lines



437,476



328,631


Current maturities of long-term debt



65,923



17,331


Accrued expenses:








Payroll and related



266,463



258,416


Taxes



151,750



161,760


Other



391,785



375,061


Total current liabilities



2,290,646



2,146,997

Long-term debt



715,457



463,752

Deferred income taxes



51,589



252,862

Other liabilities



264,264



212,121


Total liabilities



3,321,956



3,075,732











Redeemable noncontrolling interests



607,636



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,








79,402,505 outstanding on December 31, 2016 and








82,415,320 outstanding on December 26, 2015



794



824


Additional paid-in capital



127,536



207,374


Retained earnings



2,981,777



2,895,997


Accumulated other comprehensive loss



(317,041)



(219,939)


Total Henry Schein, Inc. stockholders' equity



2,793,066



2,884,256


Noncontrolling interests



7,738



2,558


Total stockholders' equity



2,800,804



2,886,814


Total liabilities, redeemable noncontrolling interests and stockholders' equity


$

6,730,396


$

6,504,740

 

 



































HENRY SCHEIN, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)
























Three Months Ended


Years Ended







December 31,


December 26,


December 31,


December 26,







2016


2015


2016


2015







(unaudited)


(unaudited)
























Cash flows from operating activities:













Net income


$

153,473


$

140,843


$

556,395


$

523,427

Adjustments to reconcile net income to net cash













provided by operating activities:













Depreciation and amortization



43,951



40,236



169,780



159,127

Stock-based compensation expense



14,619



9,534



58,246



44,614

Provision for losses on trade and other













accounts receivable



911



306



2,647



3,184

Provision for (benefit from) deferred income taxes



(23,641)



1,577



(37,066)



(6,241)

Equity in earnings of affiliates



(5,358)



(3,269)



(18,518)



(14,060)

Distributions from equity affiliates



8,247



6,713



20,351



18,029

Changes in unrecognized tax benefits



2,745



3,306



6,997



11,847

Other



3,219



418



11,611



7,549

Changes in operating assets and liabilities,













  net of acquisitions:













Accounts receivable



129,682



(8,111)



(1,904)



(120,001)

Inventories



(153,300)



(86,601)



(104,787)



(194,869)

Other current assets



13,124



5,109



(22,657)



(58,376)

Accounts payable and accrued expenses



76,836



188,250



(25,634)



212,611

Net cash provided by operating activities



264,508



298,311



615,461



586,841


















Cash flows from investing activities:













Purchases of fixed assets



(25,654)



(19,520)



(70,179)



(71,684)

Payments related to equity investments and business













acquisitions, net of cash acquired



(102,032)



(29,783)



(228,575)



(171,861)

Proceeds from sales of available-for-sale securities



-



-



-



20

Other



(8,902)



(7,259)



(17,668)



(16,506)

Net cash used in investing activities



(136,588)



(56,562)



(316,422)



(260,031)


















Cash flows from financing activities:













Proceeds from (repayments of) bank borrowings



102,022



140,253



98,748



145,173

Proceeds from issuance of long-term debt



799



-



260,799



135,000

Debt issuance costs



-



-



(233)



(150)

Principal borrowings (payments) for long-term debt



(6,088)



(130,618)



(15,381)



(201,203)

Proceeds from issuance of stock upon exercise













of stock options



1,650



3,245



11,404



14,870

Payments for repurchases of common stock



(200,023)



(148,989)



(550,024)



(299,852)

Excess tax benefits related to stock-based













compensation



-



(733)



(463)



2,199

Distributions to noncontrolling shareholders



(5,984)



(10,985)



(32,350)



(33,301)

Acquisitions of noncontrolling interests in













subsidiaries



(21,464)



(73,537)



(72,729)



(82,107)

Net cash used in financing activities



(129,088)



(221,364)



(300,229)



(319,371)


















Effect of exchange rate changes on cash and













cash equivalents



(12,643)



(8,780)



(8,515)



(24,827)

Net change in cash and cash equivalents



(13,811)



11,605



(9,705)



(17,388)

Cash and cash equivalents, beginning of period



76,192



60,481



72,086



89,474

Cash and cash equivalents, end of period


$

62,381


$

72,086


$

62,381


$

72,086

 

 

















Exhibit A - QTD Sales
































Henry Schein, Inc.

2016 Fourth Quarter

Sales Summary

(in thousands)

(unaudited)

















Q4 2016 over Q4 2015

















Global

Q4 2016


Q4 2015


Total Sales
Growth


Foreign
Exchange
Growth


Acquisition
Growth


Local
Internal
Growth


Extra
Week
Impact

















   Dental

$

1,549,831


$

1,439,270


7.7%


-1.0%


1.7%


1.6%


5.4%

















   Animal Health


837,805



756,209


10.8%


-3.4%


0.4%


8.2%


5.6%

















   Medical


621,071



561,620


10.6%


-0.1%


0.0%


4.4%


6.3%

















Total Health Care Distribution


3,008,707



2,757,099


9.1%


-1.5%


1.0%


4.0%


5.6%

















Technology and value-added services


112,227



93,819


19.6%


-1.9%


9.8%


8.5%


3.2%

















Total Global

$

3,120,934


$

2,850,918


9.5%


-1.5%


1.3%


4.2%


5.5%

















North America

Q4 2016


Q4 2015


Total Sales
Growth


Foreign
Exchange
Growth


Acquisition
Growth


Local
Internal
Growth


Extra
Week
Impact

















   Dental

$

1,000,786


$

916,169


9.2%


0.0%


0.8%


2.2%


6.2%

















   Animal Health


426,636



363,973


17.2%


0.0%


0.5%


10.3%


6.4%

















   Medical


601,973



542,949


10.9%


0.0%


0.0%


4.5%


6.4%

















Total Health Care Distribution


2,029,395



1,823,091


11.3%


0.0%


0.5%


4.5%


6.3%

















Technology and value-added services


95,098



78,921


20.5%


0.0%


9.7%


7.4%


3.4%

















Total North America

$

2,124,493


$

1,902,012


11.7%


0.0%


0.9%


4.6%


6.2%

















International

Q4 2016


Q4 2015


Total Sales
Growth


Foreign
Exchange
Growth


Acquisition
Growth


Local
Internal
Growth


Extra
Week
Impact

















   Dental

$

549,045


$

523,101


5.0%


-2.6%


3.2%


0.7%


3.7%

















   Animal Health


411,169



392,236


4.8%


-6.7%


0.5%


6.3%


4.7%

















   Medical


19,098



18,671


2.3%


-2.8%


0.0%


0.9%


4.2%

















Total Health Care Distribution


979,312



934,008


4.9%


-4.3%


2.0%


3.1%


4.1%

















Technology and value-added services


17,129



14,898


15.0%


-11.5%


10.1%


13.9%


2.5%

















Total International

$

996,441


$

948,906


5.0%


-4.5%


2.2%


3.2%


4.1%

 

 

















Exhibit A - YTD Sales
































Henry Schein, Inc.

Full Year 2016

Sales Summary

(in thousands)

(unaudited)

















Full Year 2016 over Full Year 2015

















Global

Full Year 
2016


Full Year 
2015


Total Sales
Growth


Foreign
Exchange
Growth


Acquisition
Growth


Local
Internal
Growth


Extra
Week
Impact

















   Dental

$

5,555,299


$

5,276,407


5.3%


-0.9%


1.5%


3.2%


1.5%

















   Animal Health


3,253,095



2,921,624


11.3%


-2.6%


2.8%


9.6%


1.5%

















   Medical


2,337,661



2,072,915


12.8%


0.0%


0.0%


11.1%


1.7%

















Total Health Care Distribution


11,146,055



10,270,946


8.5%


-1.2%


1.6%


6.6%


1.5%

















Technology and value-added services


425,613



358,773


18.6%


-1.4%


11.2%


7.9%


0.9%

















Total Global

$

11,571,668


$

10,629,719


8.9%


-1.2%


1.9%


6.7%


1.5%

















North America

Full Year 
2016


Full Year 
2015


Total Sales
Growth


Foreign
Exchange
Growth


Acquisition
Growth


Local
Internal
Growth


Extra
Week
Impact

















   Dental

$

3,580,820


$

3,389,734


5.6%


-0.4%


0.6%


3.7%


1.7%

















   Animal Health


1,675,782



1,444,633


16.0%


0.0%


0.5%


13.9%


1.6%

















   Medical


2,264,649



2,000,423


13.2%


0.0%


0.0%


11.5%


1.7%

















Total Health Care Distribution


7,521,251



6,834,790


10.0%


-0.2%


0.4%


8.1%


1.7%

















Technology and value-added services


359,289



298,510


20.4%


-0.1%


11.9%


7.7%


0.9%

















Total North America

$

7,880,540


$

7,133,300


10.5%


-0.2%


0.9%


8.1%


1.7%

















International

Full Year 
2016


Full Year 
2015


Total Sales
Growth


Foreign
Exchange
Growth


Acquisition
Growth


Local
Internal
Growth


Extra
Week
Impact

















   Dental

$

1,974,479


$

1,886,673


4.7%


-1.9%


3.1%


2.5%


1.0%

















   Animal Health


1,577,313



1,476,991


6.8%


-5.0%


5.1%


5.4%


1.3%

















   Medical


73,012



72,492


0.7%


-1.5%


0.0%


1.1%


1.1%

















Total Health Care Distribution


3,624,804



3,436,156


5.5%


-3.2%


3.9%


3.7%


1.1%

















Technology and value-added services


66,324



60,263


10.1%


-7.9%


8.4%


9.0%


0.6%

















Total International

$

3,691,128


$

3,496,419


5.6%


-3.3%


4.0%


3.8%


1.1%

 

 

Exhibit B




































Henry Schein, Inc.

2016 Fourth Quarter and Full Year 2016

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)







































Fourth Quarter




Full Year









%









%




2016



2015


Growth




2016



2015


Growth


Net Income attributable to Henry Schein, Inc.

$

139,216


$

129,948


7.1

%


$

506,778


$

479,058


5.8

%

Diluted EPS attributable to Henry Schein, Inc.

$

1.73


$

1.56


10.9

%


$

6.19


$

5.69


8.8

%



















Non-GAAP Adjustments


















Restructuring costs - Pre-tax

$

16,080


$

12,409





$

45,891


$

34,931




Income tax benefit for restructuring costs


(4,020)



(3,102)






(11,473)



(8,733)




One-time tax benefit (1)


-



-






-



(3,802)






















Total non-GAAP adjustments to Net Income


















attributable to Henry Schein, Inc.

$

12,060


$

9,307





$

34,418


$

22,396






















Total non-GAAP adjustments to diluted EPS


















attributable to Henry Schein, Inc.

$

0.15


$

0.11





$

0.42


$

0.27








































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

$

151,276


$

139,255


8.6

%


$

541,196


$

501,454


7.9

%

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

$

1.88


$

1.67


12.6

%


$

6.61


$

5.96


10.9

%


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 a one-time income tax benefit of $6,337 from a favorable tax ruling received during Q3 2015 by a subsidiary, net of noncontrolling interest of $2,535, resulting in a net income effect of $3,802.




 

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/henry-schein-reports-record-fourth-quarter-and-full-year-2016-financial-results-300410582.html

SOURCE Henry Schein, Inc.

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