Henry Schein Confirms Fourth Quarter 2002 EPS Guidance, Provides 2003 EPS Guidance, Outlines Financial Goals
MELVILLE, N.Y.--(BUSINESS WIRE)--Nov. 21, 2002--Henry Schein, Inc. (Nasdaq NM: HSIC), the largest provider of healthcare products and services to office-based practitioners in the combined North American and European markets, today confirmed guidance for fourth quarter 2002 earnings per diluted share to be $0.65 to $0.67.
This will result in a full year 2002 growth rate of 17% to 18%, on a comparable basis. The Company also provided guidance for 2003 earnings per diluted share to be $2.93 to $2.98. This increase represents a growth rate in the mid-teens compared with the Company's guidance for 2002 earnings per diluted share, excluding a one-time gain of $0.02 per share. The Company noted that this 2003 EPS guidance is for current operations, and does not include the impact of potential acquisitions.
Henry Schein management provided this financial guidance at an Analyst/Investor Day being held today in New York City. A live and 30-day archived Webcast of the entire event is available through the Corporate Information link on the Company's Web site, www.henryschein.com.
"Henry Schein's financial engine is working extremely well," said Stanley M. Bergman, Chairman, Chief Executive Officer and President of Henry Schein, at today's Analyst/Investor Day, which carried the theme "Henry Schein - The Complete Picture of Health." "Our financial performance for 2002 represents the Company's third consecutive year of an EPS growth rate in the high teens or more, on a comparable basis."
In addition to 2003 EPS guidance, the Company announced the following financial goals for the coming three years:
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Net sales - organic growth of 7% to 9% on a full-year basis
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Operating margin - expansion of 30 to 50 basis points on a full-year basis
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Cash flow from operations - to approximate net income on a full-year basis
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Return on committed capital - to be 30% to 35% on a full-year basis
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Days sales outstanding - to be 45 days or lower on a quarterly basis at the end of 2005
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Inventory turns - to be at least 8 to 8.5 turns per year at the end of 2005
Henry Schein, Inc. is the largest distributor of healthcare products and services to office-based healthcare practitioners in the combined North American and European markets. Recognized for its excellent customer service and low prices, the Company serves more than 400,000 customers worldwide, including dental practices and laboratories, physician practices and veterinary clinics, as well as government and other institutions.
The Company operates its four business groups - Dental, Medical, International and Technology - through a centralized and automated distribution network, which provides customers in more than 125 countries with a comprehensive selection of over 80,000 national and Henry Schein private-brand products. Henry Schein also offers a wide range of innovative value-added practice solutions, including such leading practice management software systems as DENTRIX(R) and Easy Dental(R) for dental practices, and AVImark(R) for veterinary clinics, which are installed in over 44,000 practices; and ArubA(R), Henry Schein's electronic catalog and ordering system. Headquartered in Melville, New York, Henry Schein employs over 6,700 people in 16 countries. The Company's 2001 sales reached a record $2.6 billion. For more information, visit the Henry Schein Web site at www.henryschein.com.
Certain information contained herein includes information that is forward-looking. The matters referred to in forward-looking statements may be affected by the risks and uncertainties involved in the Company's business. These forward-looking statements are qualified in their entirety by the cautionary statements contained in the Company's Securities and Exchange Commission filings.
| CONTACT: | Henry Schein, Inc., Melville |
|---|---|
| Steven Paladino, 631/843-5500 | |
| or Susan Vassallo, 631/843-5562 | |
| svassa@henryschein.com | |