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Henry Schein(HSIC) - 2025 Q1 - Quarterly Results
HSICHenry Schein(HSIC)2025-05-05 10:14
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Financial Performance - First-quarter 2025 GAAP diluted EPS was 0.88,agrowthof220.88, a growth of 22% compared to Q1 2024[6] - First-quarter 2025 non-GAAP diluted EPS was 1.15, reflecting a growth of 4.5% compared to Q1 2024[6] - Total net sales for Q1 2025 were 3.2billion,withconstantcurrencysalesgrowthof1.43.2 billion, with constant currency sales growth of 1.4% compared to Q1 2024[7] - Global Medical Distribution sales increased by 3.0% in constant currencies compared to Q1 2024, with as-reported sales up by 2.9%[12] - Global Specialty Products sales grew by 4.3% in constant currencies compared to Q1 2024, with as-reported sales increasing by 2.0%[12] - Net sales for Q1 2025 were 3,168 million, a slight decrease of 0.1% compared to 3,172millioninQ12024[32]−GrossprofitforQ12025was3,172 million in Q1 2024[32] - Gross profit for Q1 2025 was 1,000 million, down from 1,012millioninQ12024,reflectingagrossmarginof31.51,012 million in Q1 2024, reflecting a gross margin of 31.5%[32] - Operating income increased to 175 million in Q1 2025, compared to 150millioninQ12024,representingagrowthof16.7150 million in Q1 2024, representing a growth of 16.7%[32] - Net income attributable to Henry Schein, Inc. rose to 110 million in Q1 2025, up from 93millioninQ12024,markinganincreaseof18.393 million in Q1 2024, marking an increase of 18.3%[32] - Basic earnings per share increased to 0.89 in Q1 2025, compared to 0.72inQ12024,reflectingagrowthof23.60.72 in Q1 2024, reflecting a growth of 23.6%[32] - Net income attributable to Henry Schein, Inc. for Q1 2025 was 110 million, representing a 17.7% increase from 93millioninQ12024[42]−DilutedEPSattributabletoHenrySchein,Inc.increasedby22.293 million in Q1 2024[42] - Diluted EPS attributable to Henry Schein, Inc. increased by 22.2% to 0.88 in Q1 2025, up from 0.72inQ12024[42]−Non−GAAPnetincomeattributabletoHenrySchein,Inc.remainedstableat0.72 in Q1 2024[42] - Non-GAAP net income attributable to Henry Schein, Inc. remained stable at 143 million, with a slight increase of 0.5% compared to Q1 2024[42] - Non-GAAP diluted EPS attributable to Henry Schein, Inc. rose by 4.5% to 1.15inQ12025,comparedto1.15 in Q1 2025, compared to 1.10 in Q1 2024[42] Shareholder Actions - The company repurchased 161millionofcommonstock,approximately2.3millionshares,duringQ12025[10]GuidanceandStrategicPlans−Thecompanymaintainedits2025non−GAAPdilutedEPSguidanceof161 million of common stock, approximately 2.3 million shares, during Q1 2025[10] Guidance and Strategic Plans - The company maintained its 2025 non-GAAP diluted EPS guidance of 4.80 to 4.94,reflectinggrowthof14.94, reflecting growth of 1% to 4% compared to 2024[19] - The company is focused on enhancing operational efficiency and customer experience as part of its refreshed BOLD+1 Strategic Plan for 2025 to 2027[4] Restructuring and Costs - The company recorded 25 million in restructuring costs in Q1 2025, aiming for annual savings of 75millionto75 million to 100 million by the end of 2025[9] - Restructuring costs for Q1 2025 were reported at 25millionpre−tax,upfrom25 million pre-tax, up from 10 million in Q1 2024, with net restructuring costs of 17million[43]−AcquisitionintangibleamortizationforQ12025was17 million[43] - Acquisition intangible amortization for Q1 2025 was 43 million pre-tax, slightly down from 46millioninQ12024,withnetamortizationof46 million in Q1 2024, with net amortization of 27 million[44] - Costs associated with shareholder advisory matters amounted to 8millioninQ12025[45]CashFlowandAssets−Totalcurrentassetsincreasedto8 million in Q1 2025[45] Cash Flow and Assets - Total current assets increased to 4,037 million as of March 29, 2025, compared to 3,983millionattheendof2024[34]−Totalassetsgrewto3,983 million at the end of 2024[34] - Total assets grew to 10,480 million as of March 29, 2025, up from 10,218millionattheendof2024[34]−CashandcashequivalentsattheendofQ12025were10,218 million at the end of 2024[34] - Cash and cash equivalents at the end of Q1 2025 were 127 million, a slight increase from 122millionatthebeginningoftheperiod[37]−Thecompanyreportedanetcashprovidedbyoperatingactivitiesof122 million at the beginning of the period[37] - The company reported a net cash provided by operating activities of 37 million in Q1 2025, down from 197millioninQ12024[37]SalesandServices−Totalglobaldistributionandvalue−addedservicessalesdecreasedby0.7197 million in Q1 2024[37] Sales and Services - Total global distribution and value-added services sales decreased by 0.7% to 2,676 million in Q1 2025 compared to 2,693millioninQ12024[39]OtherFinancialMetrics−AdjustedEBITDAforQ12025was2,693 million in Q1 2024[39] Other Financial Metrics - Adjusted EBITDA for Q1 2025 was 259 million, compared to 255millioninQ12024[12]−AdjustedEBITDAforQ12025wasreportedat255 million in Q1 2024[12] - Adjusted EBITDA for Q1 2025 was reported at 259 million, an increase from 255millioninQ12024[47]−Thechangeincontingentconsiderationwasrecordedat255 million in Q1 2024[47] - The change in contingent consideration was recorded at 2 million in Q1 2025, compared to 15millioninQ12024[45]−Thecompanyreceived15 million in Q1 2024[45] - The company received 20 million in insurance proceeds related to a cyber incident, with $15 million net of taxes recognized in Q1 2025[44]