Date of Report (Date of earliest event reported)
|
May 4, 2015
|
(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
|
(Former name or former address, if changed since last report.)
|
HENRY SCHEIN, INC.
|
|
By:
|
/s/ Steven Paladino
|
Steven Paladino
|
|
Executive Vice President and
|
|
Chief Financial Officer
|
|
(principal financial and accounting
|
|
officer)
|
Exhibit No.
|
Description
|
99.1
|
Press Release dated May 4, 2015.
|
·
|
For 2015 the Company expects adjusted diluted EPS attributable to Henry Schein, Inc. to be $5.90 to $6.00, which represents growth of 8% to 10% compared with 2014.
|
·
|
This 2015 guidance excludes restructuring costs of approximately $0.29 to $0.33 per diluted share related to a previously announced corporate initiative to rationalize the Company’s operations and provide significant expense efficiencies.
|
·
|
Guidance for 2015 adjusted diluted EPS attributable to Henry Schein, Inc. is for current continuing operations as well as completed or previously announced acquisitions, and does not include the impact of potential future acquisitions, if any.
|
CONTACTS:
|
Investors
|
Steven Paladino
|
|
Executive Vice President and Chief Financial Officer
|
|
steven.paladino@henryschein.com
|
|
(631) 843-5500
|
|
Carolynne Borders
|
|
Vice President, Investor Relations
|
|
carolynne.borders@henryschein.com
|
|
(631) 390-8105
|
|
Media
|
|
Susan Vassallo
|
|
Vice President, Corporate Communications
|
|
susan.vassallo@henryschein.com
|
|
(631) 843-5562
|
HENRY SCHEIN, INC.
|
|||||||||
CONSOLIDATED STATEMENTS OF INCOME
|
|||||||||
(in thousands, except per share data)
|
|||||||||
(unaudited)
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
||||
|
|
|
|
|
March 28,
|
|
March 29,
|
||
|
|
|
|
|
2015
|
|
2014
|
||
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
2,463,646
|
|
$
|
2,430,159
|
|||
Cost of sales
|
|
|
1,750,251
|
|
|
1,733,446
|
|||
|
|
Gross profit
|
|
|
713,395
|
|
|
696,713
|
|
Operating expenses:
|
|
|
|
|
|
|
|||
|
Selling, general and administrative
|
|
|
545,166
|
|
|
539,445
|
||
|
Restructuring costs
|
|
|
6,862
|
|
|
-
|
||
|
|
Operating income
|
|
|
161,367
|
|
|
157,268
|
|
Other income (expense):
|
|
|
|
|
|
|
|||
|
Interest income
|
|
|
3,455
|
|
|
3,455
|
||
|
Interest expense
|
|
|
(6,263)
|
|
|
(5,258)
|
||
|
Other, net
|
|
|
120
|
|
|
3,580
|
||
|
|
Income before taxes and equity in earnings of affiliates
|
|
|
158,679
|
|
|
159,045
|
|
Income taxes
|
|
|
(49,127)
|
|
|
(49,623)
|
|||
Equity in earnings of affiliates
|
|
|
2,028
|
|
|
706
|
|||
Net income
|
|
|
111,580
|
|
|
110,128
|
|||
|
Less: Net income attributable to noncontrolling interests
|
|
|
(8,133)
|
|
|
(8,029)
|
||
Net income attributable to Henry Schein, Inc.
|
|
$
|
103,447
|
|
$
|
102,099
|
|||
|
|
|
|
|
|
|
|
|
|
Earnings per share attributable to Henry Schein, Inc.:
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
1.24
|
|
$
|
1.20
|
||
|
Diluted
|
|
$
|
1.22
|
|
$
|
1.18
|
||
|
|
|
|
|
|
|
|
|
|
Weighted-average common shares outstanding:
|
|
|
|
|
|
|
|||
|
Basic
|
|
|
83,230
|
|
|
84,808
|
||
|
Diluted
|
|
|
84,715
|
|
|
86,518
|
HENRY SCHEIN, INC.
|
|||||||||
CONSOLIDATED BALANCE SHEETS
|
|||||||||
(in thousands, except share and per share data)
|
|||||||||
March 28,
|
December 27,
|
||||||||
2015
|
2014
|
||||||||
(unaudited)
|
|||||||||
ASSETS
|
|||||||||
Current assets:
|
|||||||||
Cash and cash equivalents
|
$
|
59,202
|
$
|
89,474
|
|||||
Accounts receivable, net of reserves of $74,051 and $80,671
|
1,099,273
|
1,127,517
|
|||||||
Inventories, net
|
1,297,825
|
1,327,796
|
|||||||
Deferred income taxes
|
52,619
|
56,591
|
|||||||
Prepaid expenses and other
|
293,335
|
311,788
|
|||||||
Total current assets
|
2,802,254
|
2,913,166
|
|||||||
Property and equipment, net
|
292,044
|
311,496
|
|||||||
Goodwill
|
1,855,714
|
1,884,123
|
|||||||
Other intangibles, net
|
601,472
|
643,736
|
|||||||
Investments and other
|
387,780
|
386,286
|
|||||||
Total assets
|
$
|
5,939,264
|
$
|
6,138,807
|
|||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|||||||||
Current liabilities:
|
|||||||||
Accounts payable
|
$
|
716,975
|
$
|
860,996
|
|||||
Bank credit lines
|
163,067
|
182,899
|
|||||||
Current maturities of long-term debt
|
14,586
|
5,815
|
|||||||
Accrued expenses:
|
|||||||||
Payroll and related
|
181,584
|
237,511
|
|||||||
Taxes
|
152,310
|
151,162
|
|||||||
Other
|
318,317
|
341,728
|
|||||||
Total current liabilities
|
1,546,839
|
1,780,111
|
|||||||
Long-term debt
|
653,718
|
542,776
|
|||||||
Deferred income taxes
|
248,445
|
253,118
|
|||||||
Other liabilities
|
181,246
|
181,830
|
|||||||
Total liabilities
|
2,630,248
|
2,757,835
|
|||||||
Redeemable noncontrolling interests
|
573,137
|
564,527
|
|||||||
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,
|
|||||||||
83,870,731 outstanding on March 28, 2015 and
|
|||||||||
84,008,537 outstanding on December 27, 2014
|
839
|
840
|
|||||||
Additional paid-in capital
|
244,748
|
265,363
|
|||||||
Retained earnings
|
2,689,620
|
2,642,523
|
|||||||
Accumulated other comprehensive loss
|
(201,867)
|
(95,132)
|
|||||||
Total Henry Schein, Inc. stockholders' equity
|
2,733,340
|
2,813,594
|
|||||||
Noncontrolling interests
|
2,539
|
2,851
|
|||||||
Total stockholders' equity
|
2,735,879
|
2,816,445
|
|||||||
Total liabilities, redeemable noncontrolling interests and stockholders' equity
|
$
|
5,939,264
|
$
|
6,138,807
|
HENRY SCHEIN, INC.
|
||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
||||||||||
(in thousands)
|
||||||||||
(unaudited)
|
||||||||||
Three Months Ended
|
||||||||||
March 28,
|
March 29,
|
|||||||||
2015
|
2014
|
|||||||||
Cash flows from operating activities:
|
||||||||||
Net income
|
$
|
111,580
|
$
|
110,128
|
||||||
Adjustments to reconcile net income to net cash used in
|
||||||||||
operating activities:
|
||||||||||
Depreciation and amortization
|
37,149
|
36,136
|
||||||||
Stock-based compensation expense
|
8,499
|
8,963
|
||||||||
Provision for losses on trade and other accounts receivable
|
1,251
|
1,323
|
||||||||
Provision for deferred income taxes
|
17,226
|
15,744
|
||||||||
Equity in earnings of affiliates
|
(2,028)
|
(706)
|
||||||||
Distributions from equity affiliates
|
2,335
|
1,972
|
||||||||
Changes in unrecognized tax benefits
|
1,268
|
2,455
|
||||||||
Other
|
3,680
|
(482)
|
||||||||
Changes in operating assets and liabilities, net of acquisitions:
|
||||||||||
Accounts receivable
|
(9,861)
|
(29,602)
|
||||||||
Inventories
|
(11,906)
|
41,559
|
||||||||
Other current assets
|
(3,659)
|
(23,446)
|
||||||||
Accounts payable and accrued expenses
|
(182,188)
|
(219,293)
|
||||||||
Net cash used in operating activities
|
(26,654)
|
(55,249)
|
||||||||
Cash flows from investing activities:
|
||||||||||
Purchases of fixed assets
|
(15,493)
|
(18,484)
|
||||||||
Payments for equity investments and business
|
||||||||||
acquisitions, net of cash acquired
|
(13,637)
|
(144,679)
|
||||||||
Other
|
(1,185)
|
(3,931)
|
||||||||
Net cash used in investing activities
|
(30,315)
|
(167,094)
|
||||||||
Cash flows from financing activities:
|
||||||||||
Proceeds from (repayments of) bank borrowings
|
(19,886)
|
114,768
|
||||||||
Proceeds from issuance of debt
|
125,000
|
190,387
|
||||||||
Principal payments for long-term debt
|
(736)
|
(396)
|
||||||||
Proceeds from issuance of stock upon exercise of stock options
|
7,577
|
16,450
|
||||||||
Payments for repurchases of common stock
|
(75,707)
|
(75,306)
|
||||||||
Excess tax benefits related to stock-based compensation
|
2,844
|
3,350
|
||||||||
Distributions to noncontrolling shareholders
|
(3,113)
|
(3,763)
|
||||||||
Acquisitions of noncontrolling interests in subsidiaries
|
(205)
|
(83,793)
|
||||||||
Net cash provided by financing activities
|
35,774
|
161,697
|
||||||||
Effect of exchange rate changes on cash and cash equivalents
|
(9,077)
|
1,145
|
||||||||
Net change in cash and cash equivalents
|
(30,272)
|
(59,501)
|
||||||||
Cash and cash equivalents, beginning of period
|
89,474
|
188,616
|
||||||||
Cash and cash equivalents, end of period
|
$
|
59,202
|
$
|
129,115
|
Exhibit A - QTD Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Henry Schein, Inc.
|
|||||||||||||||
2015 First Quarter
|
|||||||||||||||
Sales Summary
|
|||||||||||||||
(in thousands)
|
|||||||||||||||
(unaudited)
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1 2015 over Q1 2014
|
|||||||||||||||
Global
|
Q1 2015
|
|
Q1 2014
|
|
Total Sales
Growth
|
|
Foreign
Exchange
Growth
|
|
Local
Currency
Growth
|
|
Acquisition
Growth
|
|
Local
Internal
Growth
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dental
|
$
|
1,250,073
|
|
$
|
1,296,928
|
|
-3.6%
|
|
-6.9%
|
|
3.3%
|
|
0.6%
|
|
2.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Animal Health
|
|
684,324
|
|
|
654,488
|
|
4.6%
|
|
-7.8%
|
|
12.4%
|
|
7.9%
|
|
4.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Medical
|
|
443,533
|
|
|
397,414
|
|
11.6%
|
|
-0.9%
|
|
12.5%
|
|
0.9%
|
|
11.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Health Care Distribution
|
|
2,377,930
|
|
|
2,348,830
|
|
1.2%
|
|
-6.2%
|
|
7.4%
|
|
2.7%
|
|
4.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Technology and value-added services
|
|
85,716
|
|
|
81,329
|
|
5.4%
|
|
-2.6%
|
|
8.0%
|
|
0.1%
|
|
7.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Global
|
$
|
2,463,646
|
|
$
|
2,430,159
|
|
1.4%
|
|
-6.0%
|
|
7.4%
|
|
2.6%
|
|
4.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America
|
Q1 2015
|
|
Q1 2014
|
|
Total Sales
Growth
|
|
Foreign
Exchange
Growth
|
|
Local
Currency
Growth
|
|
Acquisition
Growth
|
|
Local
Internal
Growth
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dental
|
$
|
795,592
|
|
$
|
769,596
|
|
3.4%
|
|
-1.0%
|
|
4.4%
|
|
0.0%
|
|
4.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Animal Health
|
|
338,349
|
|
|
305,649
|
|
10.7%
|
|
0.0%
|
|
10.7%
|
|
9.4%
|
|
1.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Medical
|
|
424,644
|
|
|
375,118
|
|
13.2%
|
|
0.0%
|
|
13.2%
|
|
1.0%
|
|
12.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Health Care Distribution
|
|
1,558,585
|
|
|
1,450,363
|
|
7.5%
|
|
-0.5%
|
|
8.0%
|
|
2.2%
|
|
5.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Technology and value-added services
|
|
70,665
|
|
|
66,884
|
|
5.7%
|
|
-0.3%
|
|
6.0%
|
|
0.1%
|
|
5.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total North America
|
$
|
1,629,250
|
|
$
|
1,517,247
|
|
7.4%
|
|
-0.5%
|
|
7.9%
|
|
2.1%
|
|
5.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
|
Q1 2015
|
|
Q1 2014
|
|
Total Sales
Growth
|
|
Foreign
Exchange
Growth
|
|
Local
Currency
Growth
|
|
Acquisition
Growth
|
|
Local
Internal
Growth
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dental
|
$
|
454,481
|
|
$
|
527,332
|
|
-13.8%
|
|
-15.5%
|
|
1.7%
|
|
1.5%
|
|
0.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Animal Health
|
|
345,975
|
|
|
348,839
|
|
-0.8%
|
|
-14.6%
|
|
13.8%
|
|
6.4%
|
|
7.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Medical
|
|
18,889
|
|
|
22,296
|
|
-15.3%
|
|
-16.8%
|
|
1.5%
|
|
0.0%
|
|
1.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Health Care Distribution
|
|
819,345
|
|
|
898,467
|
|
-8.8%
|
|
-15.2%
|
|
6.4%
|
|
3.4%
|
|
3.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Technology and value-added services
|
|
15,051
|
|
|
14,445
|
|
4.2%
|
|
-13.2%
|
|
17.4%
|
|
0.1%
|
|
17.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total International
|
$
|
834,396
|
|
$
|
912,912
|
|
-8.6%
|
|
-15.2%
|
|
6.6%
|
|
3.4%
|
|
3.2%
|
Exhibit B
|
|
|
|
|
|
|
|
|
|
|
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Henry Schein, Inc.
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2015 First Quarter
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Reconciliation of reported GAAP net income and diluted EPS attributable to Henry Schein, Inc. to
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non-GAAP net income and diluted EPS attributable to Henry Schein, Inc.
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(in thousands, except per share data)
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(unaudited)
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First Quarter
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|||||
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%
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2015
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|
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2014
|
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Growth
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|
Net Income attributable to Henry Schein, Inc.
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$
|
103,447
|
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$
|
102,099
|
|
1.3
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%
|
Diluted EPS attributable to Henry Schein, Inc.
|
$
|
1.22
|
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$
|
1.18
|
|
3.4
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%
|
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Non-GAAP Adjustments (after-tax)
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Restructuring costs (1)
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$
|
5,002
|
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$
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-
|
|
|
|
Total non-GAAP adjustments to Net Income attributable to
|
|
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Henry Schein, Inc.
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$
|
5,002
|
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$
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-
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Total non-GAAP adjustments to diluted EPS attributable to
|
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Henry Schein, Inc.
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$
|
0.06
|
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$
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-
|
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|
|
|
|
|
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|
|
|
|
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Non-GAAP Net Income attributable to Henry Schein, Inc.
|
$
|
108,449
|
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$
|
102,099
|
|
6.2
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%
|
Non-GAAP diluted EPS attributable to Henry Schein, Inc.
|
$
|
1.28
|
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$
|
1.18
|
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8.5
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%
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(1)
|
Represents $6,862 of restructuring costs, net of $1,860 tax benefit, resulting in an after-tax effect of $5,002.
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