Henry Schein Inc.
05/05/2025 | Press release | Distributed by Public on 05/05/2025 04:14
Business/Financial Results (Form 8-K)
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FOR IMMEDIATE RELEASE
HENRY SCHEIN REPORTS FIRST QUARTER 2025 FINANCIAL RESULTS
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First-quarter 2025 GAAP diluted EPS of $0.88, growth of 22% compared to the first quarter of2024
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First-quarter 2025 non-GAAP diluted EPS of $1.15, growth of 4.5% compared to the firstquarter of 2024
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Maintains guidance for 2025 non-GAAP diluted EPS of $4.80 to$4.94, mid-single digit 2025 Adjusted
EBITDA growth,and sales growth of 2% to 4%
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Repurchased $161 million of common stock, or approximately 2.3 million shares
MELVILLE, N.Y.,May 5, 2025 -
Henry Schein, Inc. (Nasdaq: HSIC), the world's largest provider of health care solutions
to office-based dental and medical practitioners, today reported financial results forthe first quarter ended March 29, 2025.
"We are pleased with our first quarter financial results as well as the momentum we are seeing heading into the
second quarter and remain confident in the fundamentals of our business,"said Stanley M. Bergman, Chairman of the Board
and Chief Executive Officer of Henry Schein.
"We are advancing our BOLD+1 Strategic Plan, which has been refreshed for 2025 to 2027,with our team focused
on growing the distribution business through increasing operational efficiency and enhancingcustomer experience, growing
our dental and medical specialty businesses and corporate brandproducts, and further developing our digital footprint and
digital solutions.We remain committed to our long-term financial goal of high-single-digit to low-double-digit earnings
growth by continuing to successfully execute against this strategy," Mr. Bergman added.
First Quarter 2025Financial Results
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Totalnet sales
for the quarter were $3.2 billion:
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Constant currency total net sales increased 1.4% compared with the firstquarter of 2024. Excluding the
impact of personal protective equipment (PPE) and COVIDtest kits, constant currency sales growth was
2.0%.
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As-reported total net sales decreased 0.1% due to a stronger U.S. dollar versusthe first quarter of last year.
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Global Distribution and Value-Added Services sales
for the quarter increased 0.8% in constant currencies
compared with the first quarter of 2024, and increased 1.5% excludingthe impact of PPE and COVID test kits. As-
reported sales decreased 0.7%. The main components include:
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Global Dental Distribution merchandise sales
for the quarter increased 0.4% in constant currencies
compared with the first quarter of 2024, and increased 0.9% excluding theimpact of PPE and COVID test
kits. Monthly sales growth accelerated throughout the quarter after a slow startin January primarily as a
result of weather-related events in the U.S. As-reported sales decreased2.1%.
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Global Dental Distribution equipment sales
for the quarter decreased2.4% in constant currencies
compared with the first quarter of 2024. Sales growth was impacted by adeferral of sales from the fourth
quarter of 2023 to the first quarter of 2024,resulting in a more difficult year-over-year comparison.
Adjusting for this, global dental equipment sales growth in constant currencieswas approximately flat to
prior year. As-reported sales decreased 4.5%.
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Global Medical Distribution sales
for the quarter increased 3.0% in constant currencies compared withthe
first quarter of 2024, and increased 4.4%excluding the impact of PPE and COVID test kits, reflecting
increased patient traffic to physician offices,strong growth in our home solutions business and growth from
acquisitions. As-reported sales increased 2.9%.
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Global Specialty Products sales
for the quarter increased 4.3% in constant currencies compared withthe first
quarter of 2024, reflecting continued growth in implant and biomaterial salesand acquisition growth. As-reported
sales increased 2.0%.
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Global Technology sales
for the quarter increased 3.4% in constant currencies compared withthe first quarter of
2024. Strong sales growth in practice management systems, including Dentrix Ascendand Dentally cloud-based
solutions, as well as in revenue cycle management products, was partiallyoffset by lower sales of certain legacy
products that are being sunset.As-reported sales increased 2.9%.
First-quarter sales growth is detailed in Exhibit A
1
.
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GAAP net income
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for the quarter was $110 million, or $0.88 per diluted share
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, and compares with first-quarter
2024 GAAP net income of $93 million, or $0.72 per diluted share.
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Non-GAAP net income
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for the quarter was $143 million, or $1.15
per diluted share
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, and compares with first-
quarter 2024 non-GAAP net income of $143 million, or $1.10 per dilutedshare.
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Adjusted EBITDA
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for the quarter was $259 million and compareswith first-quarter 2024Adjusted EBITDA of
$255 million.
Restructuring Plan
During the first quarter of 2025, the Company recorded $25 million inrestructuring costs and expects to achieve
annual run-rate savings at the high end of its $75 million to $100 million goalby the end of 2025.
Share Repurchases
During the first quarter of 2025, the Company repurchased approximately2.3 million shares of its common stock at
an average price of $71.58 per share,for a total of $161 million. The impact of these share repurchases onfirst-quarter
diluted EPS was immaterial.
At the end of the quarter,Henry Schein had $718 million authorized and available for future stockrepurchases.
2025 Financial Guidance
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Henry Schein today maintained its financial guidance for 2025. Guidanceis for current continuing operations as well
as acquisitions that have closed and does not include the impact of restructuringand integration expenses, amortization
expense of acquired intangible assets, the insurance claim recovery associated withthe cybersecurity incident and costs
associated with shareholder advisory matters.This guidance also assumes that foreign currency exchange ratesremain
generally consistent with current levels and that additional tariffs will not be introduced.
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2025 non-GAAP diluted EPS attributable to Henry Schein, Inc. isunchanged and is expected to be $4.80 to $4.94,
reflecting growth of 1% to 4% compared with 2024 non-GAAPdiluted EPS of $4.74.
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2025 total sales growth is unchanged and is expected to be approximately2% to 4% over 2024.
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2025 Adjusted EBITDA
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growth is unchanged and is expected to increase mid-single digits compared with 2024.
Adjustments to 2025 GAAP Net Income and Diluted EPS
The Company is providing guidance for 2025 diluted EPS on a non-GAAPbasis and for 2025 Adjusted EBITDA, as
noted above. The Company is not providing a reconciliation of its 2025 non-GAAPdiluted EPS guidance to its projected
2025 diluted EPS prepared on a GAAP basis, or its 2025Adjusted EBITDA guidance to net income prepared on a GAAP
basis. This is because the Company is unable to provide withoutunreasonable effort an estimate of restructuring costs related
to an ongoing initiative to drive operating efficiencies, including the corresponding taxeffect, which will be included in the
Company's 2025 diluted EPS and net income,prepared on a GAAP basis. The inability to provide this reconciliationis due
to the uncertainty and inherent difficulty of predicting the occurrence, magnitude,financial impact and timing of related
costs.
Management does not believe these items are representative of the Company's underlying business performance.For
the same reasons, the Company is unable to address the probable significanceof the unavailable information, which could be
material to future results.
First-Quarter 2025 Conference Call Webcast
The Company will hold a conference call to discuss first-quarter 2025 financialresults today, beginning at 8:00 a.m.
Eastern time. Individual investors are invited to listen to theconference call through Henry Schein's website by visiting
https://investor.henryschein.com/webcasts. In addition, a replay will be available beginning shortly after the call hasended
for a period of one week.
The Company will be posting slides that provide a summary of its first-quarter2025financial results on its website at
https://www.henryschein.com/us-en/Corporate/investor-presentations.aspx.
About Henry Schein, Inc.
Henry Schein, Inc. (Nasdaq: HSIC) is a solutions company for health careprofessionals powered by a network of
people and technology. With approximately 25,000 TeamSchein Members worldwide, the Company's network of trusted
advisors provides more than 1 million customers globally with morethan 300 valued solutions that help improve operational
success and clinical outcomes. Our Business, Clinical, Technology and Supply Chain solutions help office-based dental and
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medical practitioners work more efficiently so they can provide quality care moreeffectively. These solutions also support
dental laboratories, government and institutional health care clinics, as wellas other alternate care sites.
Henry Schein operates through a centralized and automated distributionnetwork, with a selection of more than
300,000 branded products and Henry Schein corporate brand productsin our main distribution centers.
A FORTUNE 500 Company and a member of the S&P 500® index, Henry Schein is headquartered in Melville,
N.Y.,and has operations or affiliates in 33 countries and territories. The Company's sales reached$12.7 billion in 2024, and
have grown at a compound annual rate of approximately 11.2 percent since Henry Schein became a publiccompany in 1995.
For more information, visit Henry Schein at www.henryschein.com, Facebook.com/HenrySchein,
Instagram.com/HenrySchein,and @HenrySchein on X.
Henry Schein Inc. published this content on May 05, 2025, and is solely responsible for the information contained herein. Distributed via SEC EDGAR on May 05, 2025 at 10:15 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at support@pubt.io