ZHENRY SCHEIN® Q2 2022 NASDAQ: HSIC Safe Harbor Provision Cautionary Note Regarding Forward-Looking Statements and Use of Non-GAAP Financial Information 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 ...

Financial Data and Key Metrics Changes - Total net sales for Q1 2022 were $3.2 billion, reflecting an 8.7% growth compared to the prior year period [38] - GAAP net income for Q1 2022 was $181 million, or $1.30 per diluted share, compared to $166 million or $1.16 per diluted share in Q1 2021 [40] - Operating margin for Q1 2022 was 7.7%, a decrease of 17 basis points compared to the prior year [39] Business Line Data and Key Metrics Changes - Global Dental sales were $1.8 billion, an increase of 2.2% compared to the same period last year, with internal sales growth of 3.5% in local currencies [41] - Global Medical sales grew 18.3% to $1.2 billion, driven by growth in COVID test kits and other point-of-care diagnostics [45] - Technology and Value-Added Services sales increased by 23.4% to $179 million, with internal growth of 11.1% in local currencies [44] Market Data and Key Metrics Changes - North America dental internal sales growth in local currencies was 4.8%, driven by strong performance in equipment, which grew 13.2% [42] - International dental internal sales growth in local currencies was 1.8%, impacted by lower PPE and COVID-19 related product sales [43] - International medical sales were strong, particularly in the UK, benefiting from favorable comparisons to the prior year [44] Company Strategy and Development Direction - The company is executing a strategic plan from 2022 to 2024, focusing on building complementary software and services businesses, enhancing customer experience, and driving digital transformation [8][9] - The company aims to affirm its full-year 2022 GAAP diluted EPS guidance of $4.75 to $4.91, reflecting solid growth and stability [9] Management's Comments on Operating Environment and Future Outlook - Management is monitoring inflation's impact on business, estimating a 3% price inflation on product offerings so far this year [10] - The company has not seen significant supply chain impacts from recent lockdowns in China, as most manufacturing partners are located outside affected regions [14] - Management remains bullish on the equipment market, particularly in digital dental equipment, and expects continued strong demand [28][29] Other Important Information - The company did not repurchase any shares during Q1 2022 but has $200 million authorized for future share repurchases [46] - Operating cash flow for Q1 2022 was $93 million, compared to $63 million for the same period last year [47] Q&A Session Summary Question: Update on April trends in specialty dental, general dental, and medical - Equipment sales remained strong in April with double-digit internal sales growth, while PPE sales were lower due to reduced glove prices [56] Question: Guidance on organic growth considering acquisitions and currency impacts - The internal growth is now expected to be closer to 3.5% to 5.5% due to trends in COVID test kit sales and foreign exchange headwinds [59] Question: Insights on dental equipment business and supply issues - Demand for dental equipment remains strong, but supply challenges persist, particularly for traditional equipment due to supplier exits [81] Question: Seasonality of earnings and future expectations - Earnings may be choppier than historically due to various market dynamics, including COVID test kit pricing and PPE demand [84] Question: Trends in implant sales in the U.S. and internationally - The company is seeing strong demand for implants, with expectations for continued growth into Q2 [88]

ZHENRY SCHEIN® Q1 2022 NASDAQ: HSIC Safe Harbor Provision Cautionary Note Regarding Forward-Looking Statements and Use of Non-GAAP Financial Information 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 ...

ZHENRY SCHEIN® Q4 2021 NASDAQ: HSIC Safe Harbor Provision Cautionary Note Regarding Forward-Looking Statements and Use of Non-GAAP Financial Information 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 ...

Henry Schein, Inc. (NASDAQ:HSIC) Q4 2021 Earnings Conference Call February 15, 2022 10:00 AM ET Company Participants Graham Stanley - Vice President, Investor Relations and Strategic Financial Project Officer Stanley Bergman - Chairman and Chief Executive Officer Steven Paladino - Executive Vice President and Chief Financial Officer Ron South - Vice President, Corporate Finance and Chief Accounting Officer Conference Call Participants Matt Miksic - Credit Suisse Jeff Johnson - Baird Nathan Rich - Goldman Sa ...

Part I [Business](index=4&type=section&id=ITEM%201.%20Business) Henry Schein, Inc. provides global healthcare solutions to dental and medical practitioners through distribution and technology services - Henry Schein is the world's largest provider of health care products and services to office-based dental and medical practitioners, serving over **one million customers worldwide**[16](index=16&type=chunk)[17](index=17&type=chunk) - The company operates through two reportable segments: Health Care Distribution (global dental and medical businesses) and Technology and Value-Added Services (software and other services)[20](index=20&type=chunk) Net Sales by Principal Category (2019-2021) | Category | 2021 | 2020 | 2019 | | :--- | :--- | :--- | :--- | | **Health care distribution:** | | | | | Dental products | 60.8% | 58.4% | 64.2% | | Medical products | 34.0% | 35.8% | 29.8% | | Total health care distribution | 94.8% | 94.2% | 94.0% | | **Technology and value-added services:** | | | | | Software and related products | 5.2% | 5.1% | 5.2% | - The company's business strategy focuses on increasing sales to its existing customer base, acquiring new customers, leveraging value-added services for cross-selling, and pursuing strategic acquisitions and joint ventures[49](index=49&type=chunk) - As of year-end 2021, the company employs over **21,600 people**, with approximately half based outside the United States, including over **3,450 field sales consultants** and approximately **2,100 telesales representatives**[18](index=18&type=chunk)[35](index=35&type=chunk)[113](index=113&type=chunk) [Risk Factors](index=26&type=section&id=ITEM%201A.%20Risk%20Factors) Key risks include the COVID-19 pandemic, supply chain reliance, intense competition, regulatory compliance, data privacy, and cybersecurity threats - The COVID-19 pandemic poses a material risk, potentially impacting supply and demand for PPE and COVID-19 tests, customer payment capabilities, and workforce stability due to vaccine mandates[138](index=138&type=chunk)[139](index=139&type=chunk)[141](index=141&type=chunk) - The company is highly dependent on third-party suppliers, with its **top 10 health care distribution suppliers** accounting for approximately **30% of aggregate purchases in 2021**[143](index=143&type=chunk) - The healthcare distribution industry is highly competitive, facing pressure from other major distributors, manufacturers selling directly, and the growth of third-party online commerce sites[149](index=149&type=chunk) - Significant regulatory risks exist, including failure to comply with healthcare fraud and abuse laws (e.g., Anti-Kickback Statutes, Stark Law), which could lead to severe penalties[166](index=166&type=chunk)[168](index=168&type=chunk) - The company is subject to numerous evolving data privacy laws such as HIPAA, GDPR, CCPA, and China's PIPL, with non-compliance potentially resulting in substantial fines and reputational harm[177](index=177&type=chunk)[178](index=178&type=chunk)[179](index=179&type=chunk) - Cybersecurity risks are a major concern, as a breach of information systems could disrupt operations, lead to loss of business information, and result in significant financial and reputational damage[192](index=192&type=chunk)[193](index=193&type=chunk)[196](index=196&type=chunk) [Unresolved Staff Comments](index=43&type=section&id=ITEM%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved SEC staff comments issued 180 days or more before the 2021 fiscal year-end - There are no unresolved staff comments from the SEC as of the end of the **2021 fiscal year**[205](index=205&type=chunk) [Properties](index=44&type=section&id=ITEM%202.%20Properties) The health care distribution segment utilizes approximately 5.6 million square feet of global property, adequate for current operations - The company's health care distribution segment utilizes approximately **5.6 million square feet** of property space across numerous countries for its operations[206](index=206&type=chunk) [Legal Proceedings](index=44&type=section&id=ITEM%203.%20Legal%20Proceedings) Legal proceedings information is detailed in Note 14 of the Consolidated Financial Statements - Information regarding legal proceedings is detailed in **Note 14** of the financial statements[208](index=208&type=chunk) [Mine Safety Disclosures](index=44&type=section&id=ITEM%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Mine safety disclosures are not applicable[209](index=209&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=45&type=section&id=ITEM%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Henry Schein's common stock trades on Nasdaq, with an active share repurchase program and no anticipated cash dividends - The company's share repurchase program, reinstated in March 2021, has a total authorization of **$4.2 billion**, with approximately **$4.0 billion** repurchased as of December 25, 2021[214](index=214&type=chunk)[215](index=215&type=chunk)[216](index=216&type=chunk) - As of December 25, 2021, **$200.0 million** remained available for future common stock share repurchases under the authorized program[216](index=216&type=chunk) - The company has not declared any cash or stock dividends in fiscal years 2021 or 2020 and does not anticipate doing so in the foreseeable future[218](index=218&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=47&type=section&id=ITEM%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Fiscal 2021 net sales grew 22.6% to $12.4 billion, driven by COVID-19 product sales and acquisitions, reflecting strong operating income and liquidity Consolidated Operating Results (in thousands) | Metric | 2021 | 2020 | 2019 | | :--- | :--- | :--- | :--- | | Net sales | $12,401,021 | $10,119,141 | $9,985,803 | | Gross profit | $3,672,251 | $2,814,228 | $3,090,886 | | Operating income | $851,656 | $535,303 | $718,261 | | Net income attributable to Henry Schein, Inc. | $631,232 | $403,794 | $694,734 | - Net sales for 2021 increased **22.6% year-over-year**, consisting of a **21.1% increase in local currency revenue** (16.9% internal growth, 4.2% from acquisitions) and a **1.5% positive impact from foreign currency exchange**[264](index=264&type=chunk) - Sales of PPE and COVID-19 related products were approximately **$1.74 billion in 2021**, an estimated increase of **34.2%** versus the prior year[264](index=264&type=chunk) - The company completed a restructuring initiative started in 2019, incurring charges of **$7.9 million in 2021**, with no further separate restructuring costs expected in 2022[258](index=258&type=chunk)[259](index=259&type=chunk)[260](index=260&type=chunk) Cash Flow Summary (in thousands) | Activity | 2021 | 2020 | | :--- | :--- | :--- | | Net cash provided by operating activities | $709,580 | $593,519 | | Net cash used in investing activities | ($677,217) | ($115,019) | | Net cash used in financing activities | ($332,957) | ($181,794) | [Quantitative and Qualitative Disclosures About Market Risk](index=65&type=section&id=ITEM%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company manages foreign currency and credit market risks using forward contracts and a total return swap, with variable interest rate exposure - The company uses foreign currency forward contracts to hedge against exchange rate fluctuations; a hypothetical **5% change in the average value of the U.S. dollar in 2021** would have changed net income by approximately **$8.4 million**[319](index=319&type=chunk) - A total return swap is used to economically hedge the liabilities of the company's SERP and DCP, with a notional value of **$88.7 million** at year-end 2021[321](index=321&type=chunk) - The company has variable interest rate exposure on its revolving credit facility and its U.S. trade accounts receivable securitization, which had an outstanding balance of **$105.0 million** at year-end 2021[323](index=323&type=chunk)[325](index=325&type=chunk) [Financial Statements and Supplementary Data](index=67&type=section&id=ITEM%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the audited consolidated financial statements for fiscal year 2021, including the auditor's report and detailed notes - The independent auditor, BDO USA, LLP, issued an **unqualified opinion** on the consolidated financial statements and the effectiveness of internal control over financial reporting[330](index=330&type=chunk)[331](index=331&type=chunk) - The critical audit matter identified by the auditor relates to the significant judgment used in determining revenue growth rates for valuing customer relationships acquired in certain business combinations[336](index=336&type=chunk)[337](index=337&type=chunk) Consolidated Balance Sheet Highlights (in thousands) | Account | Dec 25, 2021 | Dec 26, 2020 | | :--- | :--- | :--- | | Total Assets | $8,481,091 | $7,772,532 | | Total Liabilities | $3,804,587 | $3,460,448 | | Total Stockholders' Equity | $4,063,192 | $3,984,385 | - The company is a defendant in multiple lawsuits related to the distribution of prescription opioids, which it intends to defend vigorously; sales of opioids represented less than **0.2% of 2021 revenue**[535](index=535&type=chunk)[537](index=537&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=126&type=section&id=ITEM%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no disagreements with its accountants on any accounting principles, financial disclosure, or auditing matters - There were no disagreements with accountants on accounting and financial disclosure[603](index=603&type=chunk) [Controls and Procedures](index=126&type=section&id=ITEM%209A.%20Controls%20and%20Procedures) Management concluded disclosure controls and internal control over financial reporting were effective, despite changes from acquisitions and COVID-19 - Management concluded that disclosure controls and procedures were effective as of the end of the fiscal year[604](index=604&type=chunk) - Management's report concluded that internal control over financial reporting was effective as of December 25, 2021, based on the COSO framework[609](index=609&type=chunk) - A material change in internal control over financial reporting occurred during the quarter, driven by the integration of acquisitions and changes to operating methods due to the COVID-19 pandemic[605](index=605&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=130&type=section&id=ITEM%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Director, executive officer, and corporate governance information, including the Code of Ethics, is incorporated by reference from the 2022 Proxy Statement - Most information for this item is incorporated by reference from the forthcoming **2022 Proxy Statement**[623](index=623&type=chunk) - The company has adopted a Code of Ethics for its CEO and senior financial officers, which is available on its website[626](index=626&type=chunk) [Executive Compensation](index=130&type=section&id=ITEM%2011.%20Executive%20Compensation) Executive compensation details, including the Compensation Discussion and Analysis, are incorporated by reference from the 2022 Proxy Statement - All information for this item is incorporated by reference from the forthcoming **2022 Proxy Statement**[627](index=627&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=131&type=section&id=ITEM%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Equity compensation plan details and security ownership information are incorporated by reference from the 2022 Proxy Statement Equity Compensation Plan Information (as of Dec 25, 2021) | Plan Category | Number of Common Shares to be Issued Upon Exercise | Weighted-Average Exercise Price | Number of Common Shares Available for Future Issuances | | :--- | :--- | :--- | :--- | | Plans Approved by Stockholders | - | $ - | 9,597,745 | | Plans Not Approved by Stockholders | - | - | - | | Total | - | $ - | 9,597,745 | [Certain Relationships and Related Transactions, and Director Independence](index=131&type=section&id=ITEM%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Related party transactions and director independence information is incorporated by reference from the 2022 Proxy Statement - All information for this item is incorporated by reference from the forthcoming **2022 Proxy Statement**[629](index=629&type=chunk) [Principal Accounting Fees and Services](index=131&type=section&id=ITEM%2014.%20Principal%20Accounting%20Fees%20and%20Services) Fees paid to the independent registered public accounting firm are incorporated by reference from the 2022 Proxy Statement - All information for this item is incorporated by reference from the forthcoming **2022 Proxy Statement**[630](index=630&type=chunk) Part IV [Exhibits, Financial Statement Schedules](index=131&type=section&id=ITEM%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section lists all financial statements, schedules, and exhibits filed as part of the Annual Report on Form 10-K - This item lists all financial statements, schedules (**Schedule II**), and exhibits filed with the **10-K report**[632](index=632&type=chunk)[633](index=633&type=chunk) [Form 10-K Summary](index=138&type=section&id=ITEM%2016.%20Form%2010-K%20Summary) The company indicates that no Form 10-K summary is provided - No Form 10-K summary is included[643](index=643&type=chunk)

Henry Schein, Inc. (NASDAQ:HSIC) Q3 2021 Earnings Conference Call November 2, 2021 10:00 AM ET Company Participants Graham Stanley - Vice President of Investor Relations and Strategic Financial Project Officer Stanley Bergman - Executive Chairman & CEO Steven Paladino - EVP, CFO & Executive Director Conference Call Participants John Kreger - William Blair Jeffrey Johnson - Robert W. Baird Jonathan Block - Stifel Jason Bednar - Piper Sandler Operator Good morning, ladies and gentlemen, and welcome to the Hen ...

Henry Schein, Inc. (NASDAQ:HSIC) Q2 2021 Earnings Conference Call August 3, 2021 10:00 AM ET Company Participants Carolynne Borders - VP, IR Stanley Bergman - Executive Chairman & CEO Steven Paladino - EVP, CFO & Executive Director Conference Call Participants John Kreger - William Blair & Company Jonathan Block - Stifel, Nicolaus & Company Jeffrey Johnson - Robert W. Baird & Co. Jason Bednar - Piper Sandler & Co. Steven Valiquette - Barclays Bank Nathan Rich - Goldman Sachs Group Operator Good morning, lad ...

ZHENRY SCHEIN® Q1 2021 NASDAQ: HSIC Safe Harbor Provision Cautionary Note Regarding Forward-Looking Statements and Use of Non-GAAP Financial Information 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 ...

Henry Schein, Inc. (NASDAQ:HSIC) Q1 2021 Results Conference Call May 4, 2021 10:00 AM ET Company Participants | --- | |---------------------------------------------------------------------------------------------| | | | Carolynne Borders - VP, IR Stanley Bergman - Chairman and CEO Steven Paladino - EVP and CFO | | Conference Call Participants | | Jeff Johnson - Baird | | Elizabeth Anderson - Evercore Steven Valiquette - Barclays | | Jon Block - Stifel | | John Kreger - William Blair | | Nathan Rich - Goldma ...