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 7, 2007
-------------------
HENRY SCHEIN, INC.
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(Exact name of registrant as specified in its charter)
DELAWARE 0-27078 11-3136595
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(State or other jurisdiction (Commission File IRS Employer
of incorporation) Number) (Identification No.)
135 DURYEA ROAD, MELVILLE, NEW YORK 11747
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (631) 843-5500
-----------------
NOT APPLICABLE
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(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 7, 2007, Henry Schein, Inc. issued a press release reporting the
financial results for the three and six months ended June 30, 2007. 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 7, 2007.
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,
Chief Financial Officer and Director
(principal financial and accounting
officer)
August 7, 2007
EXHIBIT INDEX
Exhibit No. Description
99.1 Press Release dated August 7, 2007.
HENRY SCHEIN
NEWS RELEASE
Henry Schein, Inc. - 135 Duryea Road - Melville, New York 11747
FOR IMMEDIATE RELEASE
HENRY SCHEIN REPORTS RECORD SECOND QUARTER RESULTS
Diluted EPS from continuing operations increases 20% to $0.60
Announces decision to divest oncology pharmaceutical and specialty
pharmacy businesses
MELVILLE, N.Y. - August 7, 2007 - Henry Schein, Inc. (NASDAQ: HSIC), the largest
provider of healthcare products and services to office-based practitioners in
the combined North American and European markets, today reported financial
results for the quarter ended June 30, 2007. The Company announced that during
the second quarter a decision was reached to divest its oncology pharmaceutical
and specialty pharmacy businesses. Financial results for all periods reflect
those businesses as discontinued operations (see Exhibit A for details).
Net sales for the second quarter of 2007 were $1.4 billion, an increase
of 16.3% from the second quarter of 2006. This increase includes 13.9% local
currency growth (8.3% internally generated and 5.6% from acquisitions) and 2.4%
related to foreign currency exchange. (See Exhibit B for details of sales
growth.)
Net income for the second quarter of 2007 was $33.8 million or $0.37
per diluted share. Results include a loss from discontinued operations of $20.6
million or $0.23 per diluted share related to the anticipated sale of the lower-
margin oncology pharmaceutical and specialty pharmacy businesses.
Income from continuing operations for the second quarter of 2007 was
$54.4 million or $0.60 per diluted share. Second quarter 2007 income and
diluted earnings per share from continuing operations were up 21.0% and 20.0%,
respectively, compared with the prior-year second quarter.
"Our second quarter financial results were very strong, once again
highlighted by double-digit sales growth and market-share gains in each of our
four business groups," said Stanley M. Bergman, Chairman and Chief Executive
Officer of Henry Schein.
For the second quarter, Dental sales increased 17.5%, including 17.2%
growth in local currencies (10.5% internally generated and 6.7% from
acquisitions) and 0.3% growth related to
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foreign currency exchange. Of the 17.2% local currency growth, Dental
consumable merchandise sales increased 14.7% (6.8% internal growth and 7.9%
acquisition growth) and Dental equipment sales and service revenues were up
25.1% (22.3% internal growth and 2.8% acquisition growth).
"We are very pleased with our Dental Group's financial performance,
highlighted by mid-teens consumable merchandise sales growth and excellent
equipment sales and service growth, reflecting market share gains in basic
equipment and high-tech products," commented Mr. Bergman. "Subsequent to the
close of the quarter we solidified our North American Dental industry leadership
by acquiring the full-service and special-markets business of Becker-Parkin
Dental Supply, increasing penetration for our U.S. Dental Business in key
geographies, including New York, Florida and Arizona."
Medical Group sales increased 11.7% during the second quarter (7.7%
internal growth and 4.0% acquisition growth). "During the quarter we made the
decision to divest our lower-margin oncology pharmaceutical and specialty
pharmacy distribution businesses. Combined, these two businesses represented a
significant portion of our lower-margin pharmaceutical revenue. Disposing of
these non-core businesses will enhance our Medical Group's ability to drive
profitable revenue growth," said Mr. Bergman. "Separately, we are making
excellent progress with the Medical One World initiative we launched in April,
and are pleased with the initial results we have experienced thus far from
combining our major physician brands under the Henry Schein Medical brand."
For the quarter, International sales increased 17.4%, including 9.4%
growth in local currencies (4.4% internally generated and 5.0% from
acquisitions), and 8.0% related to foreign currency exchange. "We are pleased
with the accelerated internal sales growth in local currencies exhibited by our
International business," commented Mr. Bergman.
Technology and Value-Added Services sales increased 36.5% during the
second quarter of 2007, including 36.4% growth in local currencies (25.5%
internally generated and 10.9% acquisition growth) and 0.1% growth related to
foreign currency exchange. "Technology and Value-Added Services sales growth
reflects particular strength in electronic services, software and financial
services revenues," stated Mr. Bergman.
Year-to-Date Results
For the first six months of 2007, net sales of $2.7 billion represents
an increase of 15.9% compared with the first six months of 2006. This increase
includes 13.5% local currency growth (6.6% internally generated and 6.9% from
acquisitions net of divestiture) and 2.4% related to foreign currency exchange.
Income from continuing operations for the first six months of 2007 was $97.9
million reflecting 21.6% growth compared with the prior year. Earnings per
diluted
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share from continuing operations of $1.08 for the first six months of 2007
represents 20.0% growth over the comparable period in 2006.
Stock Repurchase Plan
Henry Schein reported that no shares were purchased during the second
quarter. Approximately $140 million remains authorized for future common
stock repurchases.
2007 EPS Guidance
Henry Schein updates 2007 financial guidance from continuing
operations, as follows:
o 2007 diluted EPS is expected to be $2.53 to $2.57. This represents an
increase of 25% to 27% compared with 2006 diluted EPS, and compares
with prior guidance for 2007 diluted EPS of $2.51 to $2.57.
o This 2007 diluted EPS guidance includes Henry Schein's expectations
that it will distribute approximately 20 million doses of influenza
vaccine during the year.
o 2007 diluted EPS guidance includes completed or previously announced
acquisitions and does not include the impact of potential future
acquisitions, if any.
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, 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 500,000
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 85,000 national and Henry Schein private-
brand products in stock, as well as more than 100,000 additional products
available as special-order items.
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Henry Schein also offers a wide range of innovative value-added
practice solutions for healthcare professionals, such as ArubA(R), the Company's
electronic catalog and ordering system. Its leading practice-management
software solutions have been installed in more than 50,000 practices, including
DENTRIX(R) and Easy Dental(R) for dental practices, MicroMd(R) for physician
practices, and AVImark(R) for animal health clinics.
Headquartered in Melville, N.Y., Henry Schein employs nearly 12,000
people and has operations in 19 countries. The Company's net sales reached a
record $5.05 billion in 2006. 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 which, 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:
competitive factors; changes in the healthcare industry; changes in government
regulations that affect us; financial 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; 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 trouble 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.
We caution that these factors may not be exhaustive and that many of these
factors are beyond our ability to control or predict. Accordingly, forward-
looking statements should not be relied upon as a prediction of actual results.
We undertake no duty and have no obligation to update forward-looking
statements.
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(TABLES TO FOLLOW)
HENRY SCHEIN, INC.
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
(unaudited)
Three Months Ended Six Months Ended
----------------------------- -----------------------------
June 30, July 1, June 30, July 1,
2007 2006 2007 2006
------------- ------------- ------------- -------------
Net sales .................................................... $ 1,387,017 $ 1,192,989 $ 2,697,145 $ 2,326,574
Cost of sales ................................................ 973,240 835,744 1,892,322 1,633,808
------------- ------------- ------------- -------------
Gross profit .......................................... 413,777 357,245 804,823 692,766
Operating expenses:
Selling, general and administrative ...................... 322,925 280,887 640,250 555,771
------------- ------------- ------------- -------------
Operating income ...................................... 90,852 76,358 164,573 136,995
Other income (expense):
Interest income .......................................... 4,269 3,954 8,388 8,495
Interest expense ......................................... (6,223) (7,238) (12,165) (14,603)
Other, net ............................................... 547 (344) 425 (129)
------------- ------------- ------------- -------------
Income from continuing operations before
taxes, minority interest and equity in
earnings (losses) of affiliates ...................... 89,445 72,730 161,221 130,758
Income taxes ................................................. (30,636) (26,250) (56,106) (47,367)
Minority interest in net income of subsidiaries .............. (3,842) (1,706) (6,757) (3,266)
Equity in earnings (losses) of affiliates .................... (528) 227 (505) 335
------------- ------------- ------------- -------------
Income from continuing operations ............................ 54,439 45,001 97,853 80,460
Discontinued operations:
Income (loss) from operations of discontinued
components (including write-down of long-lived assets
of $32.7 million in 2007 and a loss on sale of
discontinued operation of $32.3 million in 2006) ..... (32,700) 346 (32,560) (31,660)
Income tax benefit (expense) ............................. 12,098 (129) 12,038 12,677
------------- ------------- ------------- -------------
Income (loss) from discontinued operations ............... (20,602) 217 (20,522) (18,983)
------------- ------------- ------------- -------------
Net income ................................................... $ 33,837 $ 45,218 $ 77,331 $ 61,477
============= ============= ============= =============
Earnings from continuing operations per share:
Basic .................................................... $ 0.62 $ 0.51 $ 1.11 $ 0.92
============= ============= ============= =============
Diluted .................................................. $ 0.60 $ 0.50 $ 1.08 $ 0.90
============= ============= ============= =============
Loss from discontinued operations per share:
Basic .................................................... $ (0.24) $ 0.00 $ (0.23) $ (0.22)
============= ============= ============= =============
Diluted .................................................. $ (0.23) $ 0.00 $ (0.22) $ (0.21)
============= ============= ============= =============
Earnings per share:
Basic .................................................... $ 0.38 $ 0.51 $ 0.88 $ 0.70
============= ============= ============= =============
Diluted .................................................. $ 0.37 $ 0.50 $ 0.86 $ 0.69
============= ============= ============= =============
Weighted-average common shares outstanding:
Basic .................................................... 88,390 88,381 88,154 87,713
============= ============= ============= =============
Diluted .................................................. 90,591 89,823 90,344 89,344
============= ============= ============= =============
Note: The above prior period amounts have been restated to reflect the effects
of our discontinued operations.
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HENRY SCHEIN, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share data)
June 30, December 30,
2007 2006
------------- -------------
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents .................................................. $ 190,971 $ 248,647
Available-for-sale securities............................................... 88,000 47,999
Accounts receivable, net of reserves of $40,287 and $40,536 ................ 637,229 610,020
Inventories, net ........................................................... 579,474 584,103
Deferred income taxes ...................................................... 29,338 28,240
Prepaid expenses and other ................................................. 123,846 125,839
------------- -------------
Total current assets ............................................... 1,648,858 1,644,848
Property and equipment, net .................................................... 223,227 225,038
Goodwill ....................................................................... 771,834 773,801
Other intangibles, net ......................................................... 155,623 161,542
Investments and other .......................................................... 97,110 75,917
------------- -------------
Total assets ....................................................... $ 2,896,652 $ 2,881,146
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable ........................................................... $ 361,031 $ 414,062
Bank credit lines .......................................................... 2,367 2,528
Current maturities of long-term debt ....................................... 27,830 41,036
Accrued expenses:
Payroll and related ..................................................... 104,099 110,401
Taxes ................................................................... 56,303 59,007
Other ................................................................... 181,875 183,054
------------- -------------
Total current liabilities .......................................... 733,505 810,088
Long-term debt ................................................................. 450,260 455,806
Deferred income taxes ........................................................... 57,957 62,334
Other liabilities .............................................................. 62,962 60,209
Minority interest .............................................................. 24,687 21,746
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,
89,062,402 outstanding on June 30, 2007 and
88,499,321 outstanding on December 30, 2006 ............................. 891 885
Additional paid-in capital .................................................. 643,033 614,551
Retained earnings ........................................................... 867,213 808,164
Accumulated other comprehensive income ...................................... 56,144 47,363
------------- -------------
Total stockholders' equity ......................................... 1,567,281 1,470,963
------------- -------------
Total liabilities and stockholders' equity ......................... $ 2,896,652 $ 2,881,146
============= =============
Note: The above includes $10.4 million of accounts receivable, net of reserves,
and $3.9 million of inventories, net of reserves, related to discontinued
components that are held-for-sale as of June 30, 2007.
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HENRY SCHEIN, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Three Months Ended
-----------------------------
June 30, July 1,
2007 2006
------------- -------------
Cash flows from operating activities:
Net income ................................................................. $ 33,837 $ 45,218
Adjustments to reconcile net income to net cash
provided by operating activities:
Loss on sale of discontinued operation, net of tax .................. -- --
Depreciation and amortization ....................................... 17,670 15,806
Stock-based compensation expense .................................... 6,608 5,517
Impairment from write down of long-lived assets of
discontinued operations ....................................... 32,667 --
Provision for losses on trade and other accounts receivable ......... 1 561
Provision for (benefit from) deferred income taxes .................. (11,833) 959
Undistributed earnings (losses) of affiliates ....................... 528 (227)
Minority interest in net income of subsidiaries ..................... 3,842 1,706
Other ............................................................... 151 701
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable ........................................... (12,809) (7,622)
Inventories ................................................... 11,510 (19,274)
Other current assets .......................................... (7,413) 5,003
Accounts payable and accrued expenses ......................... 39,884 (9,731)
------------- -------------
Net cash provided by operating activities ...................................... 114,643 38,617
------------- -------------
Cash flows from investing activities:
Purchases of fixed assets ................................................. (12,403) (21,486)
Payments for equity investment and business acquisitions,
net of cash acquired ................................................... (14,391) (32,475)
Cash received from business divestiture ................................... -- 36,527
Purchases of available-for-sale securities ................................ (70,501) (62,919)
Proceeds from sales of available-for-sale securities ...................... 30,000 61,930
Proceeds from maturities of available-for-sale securities ................. -- 1,200
Net payments for foreign exchange forward contract settlements ............ (7,692) (13,644)
Other ..................................................................... 653 (26)
------------- -------------
Net cash used in investing activities .......................................... (74,334) (30,893)
------------- -------------
Cash flows from financing activities:
Proceeds from issuance of long-term debt .................................. 55 --
Repayments of bank borrowings ............................................. (26) (1,223)
Principal payments for long-term debt ..................................... (17,468) (3,830)
Proceeds from issuance of stock upon exercise of stock options ............ 12,929 8,492
Payments for repurchases of common stock .................................. -- (23,439)
Excess tax benefits related to stock-based compensation ................... 2,169 2,863
Other ..................................................................... (721) 2,235
------------- -------------
Net cash provided by (used in) financing activities ............................ (3,062) (14,902)
------------- -------------
Net change in cash and cash equivalents ........................................ 37,247 (7,178)
Effect of exchange rate changes on cash and cash equivalents ................... (732) 6,767
Cash and cash equivalents, beginning of period ................................. 154,456 138,745
------------- -------------
Cash and cash equivalents, end of period ....................................... $ 190,971 $ 138,334
============= =============
Six Months Ended
-----------------------------
June 30, July 1,
2007 2006
------------- -------------
Cash flows from operating activities:
Net income ................................................................. $ 77,331 $ 61,477
Adjustments to reconcile net income to net cash
provided by operating activities:
Loss on sale of discontinued operation, net of tax .................. -- 19,363
Depreciation and amortization ....................................... 35,227 30,158
Stock-based compensation expense .................................... 10,725 9,374
Impairment from write down of long-lived assets of
discontinued operations ....................................... 32,667 --
Provision for losses on trade and other accounts receivable ......... 232 679
Provision for (benefit from) deferred income taxes .................. (18,688) 5,937
Undistributed earnings (losses) of affiliates ....................... 505 (335)
Minority interest in net income of subsidiaries ..................... 6,757 3,266
Other ............................................................... (570) (412)
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable ........................................... (16,756) (3,023)
Inventories ................................................... 15,446 (31,755)
Other current assets .......................................... 4,469 8,146
Accounts payable and accrued expenses ......................... (66,604) (102,258)
------------- -------------
Net cash provided by operating activities ...................................... 80,741 617
------------- -------------
Cash flows from investing activities:
Purchases of fixed assets ................................................. (21,336) (32,654)
Payments for equity investment and business acquisitions,
net of cash acquired ................................................... (41,823) (105,187)
Cash received from business divestiture ................................... -- 36,527
Purchases of available-for-sale securities ................................ (88,001) (147,340)
Proceeds from sales of available-for-sale securities ...................... 48,000 168,961
Proceeds from maturities of available-for-sale securities ................. -- 1,280
Net payments for foreign exchange forward contract settlements ............ (11,613) (14,805)
Other ..................................................................... (4,609) 165
------------- -------------
Net cash used in investing activities .......................................... (119,382) (93,053)
------------- -------------
Cash flows from financing activities:
Proceeds from issuance of long-term debt .................................. 483 --
Repayments of bank borrowings ............................................. (281) --
Principal payments for long-term debt ..................................... (17,925) (6,475)
Proceeds from issuance of stock upon exercise of stock options ............ 23,620 25,600
Payments for repurchases of common stock .................................. (30,689) (23,439)
Excess tax benefits related to stock-based compensation ................... 8,022 9,788
Other ..................................................................... (1,457) 2,049
------------- -------------
Net cash provided by (used in) financing activities ............................ (18,227) 7,523
------------- -------------
Net change in cash and cash equivalents ........................................ (56,868) (84,913)
Effect of exchange rate changes on cash and cash equivalents ................... (808) 12,564
Cash and cash equivalents, beginning of period ................................. 248,647 210,683
------------- -------------
Cash and cash equivalents, end of period ....................................... $ 190,971 $ 138,334
============= =============
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Exhibit A
Henry Schein, Inc.
Oncology Pharmaceutical and Specialty Pharmacy Discontinued Operations
2007 Quarterly and 2006 Quarterly and Full Year Results
(In thousands, except per share data)
(unaudited)
YTD
1Q07 2Q07 2Q07
------------ ------------ ------------
Net sales $ 24,014 $ 26,204 $ 50,218
Cost of sales 22,086 24,338 46,424
------------ ------------ ------------
Gross profit 1,928 1,866 3,794
Operating expenses:
Selling, general and administrative 1,748 1,875 3,623
------------ ------------ ------------
Operating income (loss) 180 (9) 171
Other income (expense):
Interest income 19 25 44
Interest expense (62) (54) (116)
Other, net 3 (32,662)* (32,659)*
------------ ------------ ------------
Income (loss) before taxes 140 (32,700) (32,560)
Income tax benefit (expense) (60) 12,098 12,038
------------ ------------ ------------
Net income (loss) from discontinued operations $ 80 $ (20,602) $ (20,522)
============ ============ ============
Earnings (loss) from discontinued
operations per share:
Basic $ 0.00 $ (0.24) $ (0.23)
Diluted $ 0.00 $ (0.23) $ (0.22)
Weighted-average common shares outstanding:
Basic 87,911 88,390 88,154
Diluted 89,984 90,591 90,344
YTD
1Q06 2Q06 3Q06 4Q06 4Q06
------------ ------------ ------------ ------------ ------------
Net sales $ 28,196 $ 27,371 $ 25,467 $ 23,872 $ 104,906
Cost of sales 26,115 25,156 23,519 22,018 96,808
------------ ------------ ------------ ------------ ------------
Gross profit 2,081 2,215 1,948 1,854 8,098
Operating expenses:
Selling, general and administrative 1,800 1,825 1,874 1,837 7,336
------------ ------------ ------------ ------------ ------------
Operating income (loss) 281 390 74 17 762
Other income (expense):
Interest income 15 15 18 14 62
Interest expense (29) (64) (37) (43) (173)
Other, net 6 5 4 5 20
------------ ------------ ------------ ------------ ------------
Income (loss) before taxes 273 346 59 (7) 671
Income tax benefit (expense) (105) (129) (20) (34) (288)
------------ ------------ ------------ ------------ ------------
Net income (loss) from discontinued operations $ 168 $ 217 $ 39 $ (41) $ 383
============ ============ ============ ============ ============
Earnings (loss) from discontinued
operations per share:
Basic $ 0.00 $ 0.00 $ 0.00 $ (0.00) $ 0.00
Diluted $ 0.00 $ 0.00 $ 0.00 $ (0.00) $ 0.01
Weighted-average common shares outstanding:
Basic 87,310 88,381 88,291 88,580 87,952
Diluted 89,242 89,823 90,015 90,488 89,820
Note: This schedule is intended to provide historical financial results for the
discontinued oncology pharmaceutical and specialty pharmacy businesses for the
2006 and 2007 year-to-date periods.
* Amount primarily represents write-off of long-lived assets of the discontinued
oncology pharmaceutical and specialty pharmacy businesses.
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Exhibit B
Henry Schein, Inc.
2007 Second Quarter
Sales Growth Rate Summary
(unaudited)
Q2 2007 over Q2 2006
--------------------
Consolidated Dental Medical International Technology
------------ ----------- ------------ ------------- ------------
Internal Sales Growth 8.3% 10.5% 7.7% 4.4% 25.5%
Acquisitions 5.6% 6.7% 4.0% 5.0% 10.9%
------------ ----------- ------------ ------------- ------------
Local Currency Sales Growth 13.9% 17.2% 11.7% 9.4% 36.4%
Foreign Currency Exchange 2.4% 0.3% -- 8.0% 0.1%
------------ ----------- ------------ ------------- ------------
Total Sales Growth 16.3% 17.5% 11.7% 17.4% 36.5%
============ =========== ============ ============= ============
Q2 YTD 2007 over Q2 YTD 2006
----------------------------
Consolidated Dental Medical International Technology
------------ ----------- ------------ ------------- ------------
Internal Sales Growth 6.6% 10.2% 3.7% 2.8% 21.6%
Acquisitions, net of divestiture 6.9% 6.9% 9.0% 5.0% 9.0%
------------ ----------- ------------ ------------- ------------
Local Currency Sales Growth 13.5% 17.1% 12.7% 7.8% 30.6%
Foreign Currency Exchange 2.4% -- -- 8.5% --
------------ ----------- ------------ ------------- ------------
Total Sales Growth 15.9% 17.1% 12.7% 16.3% 30.6%
============ =========== ============ ============= ============
FOR: Henry Schein, Inc.
CONTACT: Steven Paladino
Executive Vice President and
Chief Financial Officer
steven.paladino@henryschein.com
(631) 843-5500
Investors:
Neal Goldner
Vice President, Investor Relations
neal.goldner@henryschein.com
(631) 845-2820
Media:
Susan Vassallo
Vice President, Corporate Communications
susan.vassallo@henryschein.com
(631) 843-5562
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