-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, I+h022K+6zYSQtQzN1HIEqelv3ekoEOCwlQAMltADvaCf19fo/XP15U60kYeMi0e 2UseATsj5X7pE0fYXFq3lA== 0001000228-09-000027.txt : 20090804 0001000228-09-000027.hdr.sgml : 20090804 20090804081731 ACCESSION NUMBER: 0001000228-09-000027 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20090627 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20090804 DATE AS OF CHANGE: 20090804 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HENRY SCHEIN INC CENTRAL INDEX KEY: 0001000228 STANDARD INDUSTRIAL CLASSIFICATION: WHOLESALE-MEDICAL, DENTAL & HOSPITAL EQUIPMENT & SUPPLIES [5047] IRS NUMBER: 113136595 STATE OF INCORPORATION: DE FISCAL YEAR END: 1226 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-27078 FILM NUMBER: 09981725 BUSINESS ADDRESS: STREET 1: 135 DURYEA RD CITY: MELVILLE STATE: NY ZIP: 11747 BUSINESS PHONE: 6318435500 MAIL ADDRESS: STREET 1: 135 DURYEA RD CITY: MELVILLE STATE: NY ZIP: 11747 FORMER COMPANY: FORMER CONFORMED NAME: SCHEIN HENRY INC DATE OF NAME CHANGE: 19950907 8-K 1 the8k.txt COVER PAGE UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported) August 4, 2009 ------------------- HENRY SCHEIN, INC. - -------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) DELAWARE 0-27078 11-3136595 - -------------------------------------------------------------------------------- (State or other jurisdiction (Commission File (IRS Employer of incorporation) Number) Identification No.) 135 DURYEA ROAD, MELVILLE, NEW YORK 11747 - -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (631) 843-5500 ----------------- NOT APPLICABLE - -------------------------------------------------------------------------------- (Former name or former address, if changed since last report.) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Item 2.02. Results of Operations and Financial Condition. On August 4, 2009, Henry Schein, Inc. issued a press release reporting the financial results for the three and six months ended June 27, 2009. The full text of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference. Item 9.01. Financial Statements and Exhibits. (a) Not applicable. (b) Not applicable. (c) Not applicable. (d) Exhibit 99.1 - Press Release dated August 4, 2009. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. HENRY SCHEIN, INC. By: /s/ Steven Paladino ------------------------------------ Steven Paladino Executive Vice President and Chief Financial Officer (principal financial and accounting officer) August 4, 2009 EXHIBIT INDEX Exhibit No. Description 99.1 Press Release dated August 4, 2009. EX-99 2 exh99.txt EXHIBITS HENRY SCHEIN NEWS RELEASE Henry Schein, Inc. - 135 Duryea Road - Melville, New York 11747 FOR IMMEDIATE RELEASE HENRY SCHEIN REPORTS SECOND QUARTER RESULTS EPS from continuing operations increases 14% to a record $0.81 Company affirms 2009 guidance MELVILLE, N.Y. - August 4, 2009 - Henry Schein, Inc. (NASDAQ: HSIC), the largest provider of healthcare products and services to office-based practitioners, today reported financial results for the quarter ended June 27, 2009. Net sales for the second quarter of 2009 were $1.6 billion, a decrease of 1.8% compared with the second quarter of 2008. This consists of a 7.1% decline related to foreign currency exchange, offset by a 5.3% growth in local currencies (see Exhibit A for details of sales growth). Income from continuing operations attributable to Henry Schein, Inc. for the second quarter of 2009 was $73.5 million, or $0.81 per diluted share, an increase of 13.1% and 14.1%, respectively, compared with the second quarter of 2008. Income from continuing operations for the second quarter of 2008 has been restated for the adoption of FASB Staff Position APB 14-1, which decreased diluted EPS by approximately $0.01. "We are pleased to report growth in diluted EPS from continuing operations of 14% and operating margin expansion of 65 basis points," said Stanley M. Bergman, Chairman and Chief Executive Officer of Henry Schein. "Our financial results for the quarter demonstrate a commitment to efficient operations and prudent cash management. The markets Henry Schein serves were largely as we expected them to be during the second quarter." Dental Group sales of $626 million declined 5.1%, consisting of a 1.5% decline related to foreign currency exchange and a 3.6% decline in local currencies. The 3.6% decline in local currencies included 1.3% growth in Dental consumable merchandise sales and a 17.5% decline in Dental equipment sales and service revenues. "Dental consumable merchandise sales figures suggest stabilization in the market and dentists continue to be cautious when committing to purchasing equipment," commented Mr. Bergman. - 1 - Medical Group sales of $351 million increased 8.0%, and were positively impacted by strong sales of consumable products, as well as by sales of products related to the H1N1 virus. International Group sales of $592 million declined 3.8%, consisting of a 17.2% decline related to foreign currency exchange and 13.4% growth in local currencies. International sales growth in local currencies included particular strength in the Company's dental equipment and veterinary businesses. Technology and Value-Added Services Group sales of $43 million increased 3.5% during the quarter, consisting of a 3.8% decline related to foreign currency exchange and a 7.3% growth in local currencies. Year-to-Date Results For the first half of 2009, net sales of $3.1 billion represent a decrease of 2.0% compared with the first half of 2008. This decrease includes a 7.4% decline related to foreign currency exchange offset by 5.4% growth in local currencies. Income from continuing operations attributable to Henry Schein, Inc. for the first half of 2009 was $128.3 million, or $1.43 per diluted share. These results include first quarter 2009 restructuring costs of $4.0 million (or $0.03 per diluted share, after-tax) related to the completion of the expense reduction program announced in November 2008. Excluding the impact of these restructuring costs, income from continuing operations attributable to Henry Schein, Inc. for the first half of 2009 was $131.1 million, or $1.46 per diluted share, an increase of 12.5% and 15.9%, respectively, compared with the first half of 2008 (see Exhibit B for reconciliation of GAAP net income and EPS to non-GAAP adjusted net income and EPS). Income from continuing operations for the first half of 2008 has been restated for the adoption of FASB Staff Position APB 14-1, which decreased diluted EPS by approximately $0.02. 2009 EPS Guidance Henry Schein today affirmed 2009 financial guidance, as follows: o 2009 diluted EPS attributable to Henry Schein, Inc. is expected to be $3.11 to $3.26, representing growth of 7% to 12% compared with restated 2008 results of $2.92, excluding charges related to the Lehman Brothers bankruptcy as well as restructuring costs. The 2009 guidance also excludes restructuring costs. o Guidance for 2009 diluted EPS attributable to Henry Schein, Inc. is for current continuing operations including completed or previously announced acquisitions, and does not include the impact of potential future acquisitions, if any. - 2 - Second Quarter Conference Call Webcast The Company will hold a conference call to discuss second quarter financial results today, beginning at 10:00 a.m. Eastern time. Individual investors are invited to listen to the conference call over the Internet through Henry Schein's Web site at www.henryschein.com. In addition, a replay will be available beginning shortly after the call has ended. About Henry Schein Henry Schein, a Fortune 500(R) company and a member of the NASDAQ 100(R) Index, is recognized for its excellent customer service and highly competitive prices. The Company's four business groups - Dental, Medical, International and Technology - serve more than 575,000 customers worldwide, including dental practitioners and laboratories, physician practices and animal health clinics, as well as government and other institutions. The Company operates through a centralized and automated distribution network, which provides customers in more than 200 countries with a comprehensive selection of more than 90,000 national and Henry Schein private-brand products in stock, as well as more than 100,000 additional products available as special-order items. Henry Schein also provides exclusive, innovative technology offerings for dental, medical and veterinary professionals, including value-added practice management software and electronic health record solutions. Headquartered in Melville, N.Y., Henry Schein employs over 12,500 people and has operations or affiliates in 23 countries. The Company's net sales reached a record $6.4 billion in 2008. For more information, visit the Henry Schein Web site at www.henryschein.com. 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 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: decreased customer demand and changes in vendor credit terms; disruptions in financial markets; general economic conditions; competitive factors; changes in the healthcare industry; changes in regulatory requirements that affect us; risks associated with our international operations; fluctuations in quarterly earnings; our dependence on third parties for the manufacture and supply of our products; transitional challenges associated with acquisitions, including the failure to achieve anticipated synergies; financial risks associated with acquisitions; regulatory and litigation risks; the dependence on our continued product development, technical support and successful marketing in the technology segment; our dependence upon sales personnel and key customers; our dependence on our senior management; possible increases in the cost of shipping our products or other service issues with our third-party shippers; risks from rapid technological change; risks from potential increases in variable interest rates; possible volatility of the market price of our common stock; certain provisions in our governing documents that may discourage third- party acquisitions of us; and changes in tax legislation that affect us. The order in which these factors appear should not be construed to indicate their relative importance or priority. - 3 - 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. (TABLES TO FOLLOW) - 4 - HENRY SCHEIN, INC. CONSOLIDATED STATEMENTS OF INCOME (in thousands, except per share data) (unaudited)
Three Months Ended Six Months Ended ------------------------------ ------------------------------ June 27, June 28, June 27, June 28, 2009 2008 2009 2008 -------------- -------------- -------------- -------------- Net sales ...................................................... $ 1,611,006 $ 1,640,851 $ 3,099,611 $ 3,162,628 Cost of sales .................................................. 1,132,494 1,152,741 2,180,089 2,223,887 -------------- -------------- -------------- -------------- Gross profit ............................................ 478,512 488,110 919,522 938,741 Operating expenses: Selling, general and administrative ........................ 356,202 374,118 702,282 739,474 Restructuring costs ........................................ -- -- 4,043 -- -------------- -------------- -------------- -------------- Operating income ........................................ 122,310 113,992 213,197 199,267 Other income (expense): Interest income ............................................ 2,486 3,974 5,287 7,957 Interest expense ........................................... (6,467) (9,593) (13,281) (17,760) Other, net ................................................. (272) (291) (289) (674) -------------- -------------- -------------- -------------- Income from continuing operations before taxes, noncontrolling interest and equity in earnings of affiliates ................................. 118,057 108,082 204,914 188,790 Income taxes ................................................... (38,841) (36,874) (67,763) (64,320) Equity in earnings of affiliates ............................... 1,212 908 2,577 2,418 -------------- -------------- -------------- -------------- Income from continuing operations .............................. 80,428 72,116 139,728 126,888 Loss from discontinued operations, net of tax .............. -- (415) -- (497) -------------- -------------- -------------- -------------- Net income ..................................................... 80,428 71,701 139,728 126,391 Less: Net income attributable to noncontrolling interests .. (6,955) (7,131) (11,404) (10,381) -------------- -------------- -------------- -------------- Net income attributable to Henry Schein, Inc. .................. $ 73,473 $ 64,570 $ 128,324 $ 116,010 ============== ============== ============== ============== Amounts attributable to Henry Schein, Inc.: Income from continuing operations ............................ $ 73,473 $ 64,985 $ 128,324 $ 116,507 Loss from discontinued operations, net of tax ................ -- (415) -- (497) -------------- -------------- -------------- -------------- Net income ................................................... $ 73,473 $ 64,570 $ 128,324 $ 116,010 ============== ============== ============== ============== Earnings per share attributable to Henry Schein, Inc.: From continuing operations: Basic ..................................................... $ 0.83 $ 0.73 $ 1.44 $ 1.30 ============== ============== ============== ============== Diluted ................................................... $ 0.81 $ 0.71 $ 1.43 $ 1.26 ============== ============== ============== ============== From discontinued operations: Basic ..................................................... $ 0.00 $ (0.01) $ 0.00 $ 0.00 ============== ============== ============== ============== Diluted ................................................... $ 0.00 $ (0.01) $ 0.00 $ 0.00 ============== ============== ============== ============== From net income: Basic ..................................................... $ 0.83 $ 0.72 $ 1.44 $ 1.30 ============== ============== ============== ============== Diluted ................................................... $ 0.81 $ 0.70 $ 1.43 $ 1.26 ============== ============== ============== ============== Weighted-average common shares outstanding: Basic ...................................................... 88,815 89,587 88,838 89,417 ============== ============== ============== ============== Diluted .................................................... 90,534 92,012 90,021 92,212 ============== ============== ============== ==============
Note: The above prior period amounts have been restated to reflect the effects of discontinued operations, the adoption of FASB Staff Position APB 14-1 related to convertible debt and FAS 160 related to the presentation of noncontrolling interests. - 5 -
HENRY SCHEIN, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share data) June 27, December 27, 2009 2008 ------------- ------------- (unaudited) ASSETS Current assets: Cash and cash equivalents .................................................. $ 393,873 $ 369,570 Accounts receivable, net of reserves of $46,419 and $42,855 ................ 730,996 734,027 Inventories, net ........................................................... 737,956 731,654 Deferred income taxes ...................................................... 38,667 36,974 Prepaid expenses and other ................................................. 187,798 193,841 ------------- ------------- Total current assets ............................................... 2,089,290 2,066,066 Property and equipment, net .................................................... 254,008 247,835 Goodwill ....................................................................... 948,862 922,952 Other intangibles, net ......................................................... 206,429 214,093 Investments and other .......................................................... 146,901 148,264 ------------- ------------- Total assets ....................................................... $ 3,645,490 $ 3,599,210 ============= ============= LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable ........................................................... $ 435,579 $ 554,773 Bank credit lines .......................................................... 2,014 4,936 Current maturities of long-term debt ....................................... 154,251 156,405 Accrued expenses: Payroll and related ..................................................... 123,182 135,523 Taxes ................................................................... 91,091 69,792 Other ................................................................... 251,495 262,236 ------------- ------------- Total current liabilities .......................................... 1,057,612 1,183,665 Long-term debt ................................................................. 261,229 256,648 Deferred income taxes .......................................................... 96,542 95,399 Other liabilities .............................................................. 58,482 58,109 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, 90,167,656 outstanding on June 27, 2009 and 89,351,849 outstanding on December 27, 2008 ............................. 902 894 Additional paid-in capital .................................................. 740,186 725,540 Retained earnings ........................................................... 1,309,778 1,181,454 Accumulated other comprehensive income ...................................... 45,578 29,721 ------------- ------------- Total Henry Schein, Inc. stockholders' equity ............................... 2,096,444 1,937,609 Noncontrolling interest ..................................................... 75,181 67,780 ------------- ------------- Total stockholders' equity ......................................... 2,171,625 2,005,389 ------------- ------------- Total liabilities and stockholders' equity ......................... $ 3,645,490 $ 3,599,210 ============= =============
Note: The above prior period amounts have been restated to reflect the adoption of FASB Staff Position APB 14-1 related to convertible debt and FAS 160 related to the presentation of noncontrolling interests. - 6 -
HENRY SCHEIN, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) Three Months Ended ----------------------------- June 27, June 28, 2009 2008 ------------- ------------- Cash flows from operating activities: Net income ................................................................ $ 80,428 $ 71,701 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization ....................................... 20,813 20,270 Amortization of bond discount ....................................... 1,500 1,410 Stock-based compensation expense .................................... 6,236 6,956 Provision for losses on trade and other accounts receivable ......... 526 1,467 Benefit from deferred income taxes .................................. (436) (33) Undistributed earnings of affiliates ................................ (1,212) (908) Other ............................................................... (125) (891) Changes in operating assets and liabilities, net of acquisitions: Accounts receivable ........................................... (28,954) (23,256) Inventories ................................................... 34,287 16,023 Other current assets .......................................... (10,199) 8,464 Accounts payable and accrued expenses ......................... 3,839 24,108 ------------- ------------- Net cash provided by operating activities ...................................... 106,703 125,311 ------------- ------------- Cash flows from investing activities: Purchases of fixed assets ................................................. (15,537) (9,723) Payments for equity investment and business acquisitions, net of cash acquired ................................................... (12,746) (15,057) Purchases of available-for-sale securities ................................ -- -- Proceeds from sales of available-for-sale securities ...................... 1,300 -- Net proceeds from (payments for) foreign exchange forward contract settlements ................................................... (8) (3,048) Other ..................................................................... 1,614 5,272 ------------- ------------- Net cash used in investing activities .......................................... (25,377) (22,556) ------------- ------------- Cash flows from financing activities: Repayments of bank borrowings ............................................. (204) (2,589) Principal payments for long-term debt ..................................... (900) (4,976) Proceeds from issuance of stock upon exercise of stock options ............ 3,551 5,523 Payments for repurchases of common stock .................................. -- (31,647) Excess tax benefits related to stock-based compensation ................... 503 1,244 Other ..................................................................... 342 (977) ------------- ------------- Net cash provided by (used in) financing activities ............................ 3,292 (33,422) ------------- ------------- Net change in cash and cash equivalents ........................................ 84,618 69,333 Effect of exchange rate changes on cash and cash equivalents ................... 1,099 (937) Cash and cash equivalents, beginning of period ................................. 308,156 203,036 ------------- ------------- Cash and cash equivalents, end of period ....................................... $ 393,873 $ 271,432 ============= ============= Six Months Ended ----------------------------- June 27, June 28, 2009 2008 ------------- ------------- Cash flows from operating activities: Net income ................................................................ $ 139,728 $ 126,391 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization ....................................... 40,734 39,708 Amortization of bond discount ....................................... 2,964 2,792 Stock-based compensation expense .................................... 12,303 16,216 Provision for losses on trade and other accounts receivable ......... 1,712 2,604 Benefit from deferred income taxes .................................. (5,921) (3,842) Undistributed earnings of affiliates ................................ (2,577) (2,418) Other ............................................................... 1,491 (1,317) Changes in operating assets and liabilities, net of acquisitions: Accounts receivable ........................................... 14,443 (6,752) Inventories ................................................... 13,248 (5,064) Other current assets .......................................... 2,470 10,978 Accounts payable and accrued expenses ......................... (141,020) (40,612) ------------- ------------- Net cash provided by operating activities ...................................... 79,575 138,684 ------------- ------------- Cash flows from investing activities: Purchases of fixed assets ................................................. (28,403) (23,466) Payments for equity investment and business acquisitions, net of cash acquired ................................................... (26,489) (23,581) Purchases of available-for-sale securities ................................ -- (35,925) Proceeds from sales of available-for-sale securities ...................... 4,040 847 Net proceeds from (payments for) foreign exchange forward contract settlements ................................................... 275 (5,052) Other ..................................................................... (2,680) 4,504 ------------- ------------- Net cash used in investing activities .......................................... (53,257) (82,673) ------------- ------------- Cash flows from financing activities: Repayments of bank borrowings ............................................. (3,393) (6,508) Principal payments for long-term debt ..................................... (2,612) (5,949) Proceeds from issuance of stock upon exercise of stock options ............ 3,928 12,695 Payments for repurchases of common stock .................................. -- (31,647) Excess tax benefits related to stock-based compensation ................... 683 4,673 Other ..................................................................... (1,748) (1,401) ------------- ------------- Net cash provided by (used in) financing activities ............................ (3,142) (28,137) ------------- ------------- Net change in cash and cash equivalents ........................................ 23,176 27,874 Effect of exchange rate changes on cash and cash equivalents ................... 1,127 (4,032) Cash and cash equivalents, beginning of period ................................. 369,570 247,590 ------------- ------------- Cash and cash equivalents, end of period ....................................... $ 393,873 $ 271,432 ============= =============
Note: The above prior period amounts have been restated to reflect the adoption of FASB Staff Position APB 14-1 related to convertible debt and FAS 160 related to the presentation of noncontrolling interests. - 7 -
Exhibit A Henry Schein, Inc. 2009 Second Quarter Sales Growth Rate Summary (unaudited) Q2 2009 over Q2 2008 -------------------- Consolidated Dental Medical International Technology ------------ ----------- ------------ ------------- ------------ Internal Sales Growth 0.7% -6.0% 6.7% 4.1% 7.3% Acquisitions 4.6% 2.4% 1.3% 9.3% 0.0% ------------ ----------- ------------ ------------- ------------ Local Currency Sales Growth 5.3% -3.6% 8.0% 13.4% 7.3% Foreign Currency Exchange -7.1% -1.5% 0.0% -17.2% -3.8% ------------ ----------- ------------ ------------- ------------ Total Sales Growth -1.8% -5.1% 8.0% -3.8% 3.5% ============ =========== ============ ============= ============ Q2 YTD 2009 over Q2 YTD 2008 ---------------------------- Consolidated Dental Medical International Technology ------------ ----------- ------------ ------------- ------------ Internal Sales Growth 0.5% -4.3% 2.1% 4.5% 8.0% Acquisitions 4.9% 2.2% 1.2% 10.2% 0.0% ------------ ----------- ------------ ------------- ------------ Local Currency Sales Growth 5.4% -2.1% 3.3% 14.7% 8.0% Foreign Currency Exchange -7.4% -1.7% 0.0% -18.1% -4.3% ------------ ----------- ------------ ------------- ------------ Total Sales Growth -2.0% -3.8% 3.3% -3.4% 3.7% ============ =========== ============ ============= ============
- 8 - Exhibit B Henry Schein, Inc. 2009 Second Quarter and YTD Reconciliation of GAAP results of continuing operations to non-GAAP results of continuing operations (in thousands, except per share data) (unaudited)
Second Quarter % YTD % 2009 2008 Growth 2009 2008 Growth From Continuing Operations - ------------------------------------------------------------------------------------------------------------------------------------ Net Sales $1,611,006 $1,640,851 -1.8% $3,099,611 $3,162,628 -2.0% Operating Income 122,310 113,992 7.3% 213,197 199,267 7.0% Margin 7.6% 6.9% 65 bp 6.9% 6.3% 58 bp Income from Continuing Operations attributable to Henry Schein, Inc. $ 73,473 $ 64,985 13.1% $ 128,324 $ 116,507 10.1% Diluted EPS from Continuing Operations attributable to Henry Schein, Inc. 0.81 0.71 14.1% 1.43 1.26 13.5% Net Income attributable to Henry Schein, Inc. 73,473 64,570 13.8% 128,324 116,010 10.6% Diluted EPS 0.81 0.70 15.7% 1.43 1.26 13.5% - ------------------------------------------------------------------------------------------------------------------------------------ Add: Non-GAAP Adjustments Net Sales -- -- -- -- Operating Income -- -- $ 4,043 -- Income from Continuing Operations attributable to Henry Schein, Inc. -- -- 2,784 -- Diluted EPS from Continuing Operations attributable to Henry Schein, Inc. -- -- 0.03 -- Net Income attributable to Henry Schein, Inc. -- -- 2,784 -- Diluted EPS -- -- 0.03 -- Adjusted Results from Continuing Operations - ------------------------------------------------------------------------------------------------------------------------------------ Net Sales $1,611,006 $1,640,851 -1.8% $3,099,611 $3,162,628 -2.0% Operating Income 122,310 113,992 7.3% 217,240 199,267 9.0% Margin 7.6% 6.9% 65 bp 7.0% 6.3% 71 bp Income from Continuing Operations attributable to Henry Schein, Inc. $ 73,473 $ 64,985 13.1% $ 131,108 $ 116,507 12.5% Diluted EPS from Continuing Operations attributable to Henry Schein, Inc. 0.81 0.71 14.1% 1.46 1.26 15.9% Net Income attributable to Henry Schein, Inc. 73,473 64,570 13.8% 131,108 116,010 13.0% Diluted EPS 0.81 0.70 15.7% 1.46 1.26 15.9% - ------------------------------------------------------------------------------------------------------------------------------------
Note: Above reflects adjusted results from continuing operations excluding restructuring costs of $4,043 ($2,784 after tax and $.03 per diluted share) recorded in the first quarter of 2009. This non-GAAP comparison is being presented in order to provide a more comparable basis for analysis. CONTACTS: Investors: Steven Paladino Executive Vice President and Chief Financial Officer steven.paladino@henryschein.com (631) 843-5500 Media: Susan Vassallo Vice President, Corporate Communications susan.vassallo@henryschein.com (631) 843-5562 ### -----END PRIVACY-ENHANCED MESSAGE-----