Henry Schein(HSIC)2024-02-26 16:00Financial Performance - Fourth quarter total net sales were $3.0 billion, a decrease of 10.5% compared to Q4 2022, with an internal sales decrease of 12.0%[8]. - For full-year 2023, total net sales were $12.3 billion, a decrease of 2.4% compared to 2022, with an internal sales decrease of 4.4%[10]. - Fourth quarter sales in Global Dental were $1.8 billion, down 10.9%, while Global Medical sales were $1.0 billion, down 17.0%[7]. - Total Global sales for Q4 2023 decreased by 12.0% to $3,017 million compared to Q4 2022[39]. - Total Health Care Distribution sales for Q4 2023 decreased by 13.1% to $2,805 million compared to Q4 2022[39]. - North America Total Dental sales for Q4 2023 decreased by 12.1% to $1,053 million compared to Q4 2022[39]. - Full Year 2023 Total Global sales decreased by 2.4% to $12,339 million compared to Full Year 2022[42]. - Full Year 2023 Total Health Care Distribution sales decreased by 3.3% to $11,533 million compared to Full Year 2022[42]. - Full Year 2023 Technology and Value-Added Services sales increased by 11.4% to $806 million compared to Full Year 2022[42]. Earnings and Income - Fourth quarter GAAP diluted EPS was $0.13, while non-GAAP diluted EPS was $0.66, reflecting an estimated impact of $0.70 to $0.75 per diluted share from the cybersecurity incident[5][9]. - GAAP net income for 2023 was $416 million, or $3.16 per diluted share, down from $538 million, or $3.91 per diluted share in 2022[13]. - Net income attributable to Henry Schein, Inc. for Q4 2023 was $18 million, compared to $47 million in Q4 2022, a decrease of 61.7%[31]. - Basic earnings per share for Q4 2023 were $0.13, down from $0.35 in Q4 2022, a decline of 62.9%[31]. - Non-GAAP net income attributable to Henry Schein, Inc. for Full Year 2023 was $593 million, a decrease of 20.0% compared to Full Year 2022[45]. - Net income attributable to Henry Schein, Inc. for Q4 2023 was $18 million, a decrease from $47 million in Q4 2022, with full-year net income at $416 million compared to $538 million in 2022[51]. Cash Flow and Investments - Cash and cash equivalents at the end of Q4 2023 were $171 million, up from $117 million at the end of Q4 2022[36]. - The company reported a net cash used in investing activities of $327 million for Q4 2023, compared to $65 million in Q4 2022[36]. - The company invested $287 million in acquisitions during Q4 2023 and $955 million for the full year[12]. Debt and Liabilities - Long-term debt increased to $1,937 million as of December 30, 2023, from $1,040 million as of December 31, 2022, an increase of 86.2%[34]. - Total current liabilities rose to $2,683 million as of December 30, 2023, compared to $2,224 million as of December 31, 2022, an increase of 20.6%[34]. Future Outlook - The company expects 2024 non-GAAP diluted EPS to be between $5.00 and $5.16, reflecting growth of 11% to 15% compared to 2023[18]. - 2024 sales growth is anticipated to be approximately 8% to 12% over 2023, driven by merchandise sales recovery and acquisitions[18]. - Adjusted EBITDA for full-year 2024 is expected to increase by more than 15%[18]. Operational Metrics - Gross profit for Q4 2023 was $925 million, down from $999 million in Q4 2022, reflecting a gross margin of 30.7%[31]. - Operating income decreased to $39 million in Q4 2023 from $72 million in Q4 2022, representing a decline of 45.8%[31]. - Adjusted EBITDA for Q4 2023 was $172 million, down from $279 million in Q4 2022, with a full-year total of $984 million compared to $1,125 million in 2022[51]. Other Expenses - The company incurred one-time professional and other fees of $11 million related to a cybersecurity incident in Q4 2023[50]. - Interest expense for Q4 2023 was $29 million, significantly higher than $12 million in Q4 2022, with full-year interest expense at $87 million compared to $35 million in 2022[51]. - Depreciation and amortization for Q4 2023 was $68 million, up from $52 million in Q4 2022, with a full-year total of $248 million compared to $212 million in 2022[51]. - Restructuring and integration costs for Q4 2023 were $11 million, down from $96 million in Q4 2022[46]. - Acquisition intangible amortization for Q4 2023 was $43 million, up from $31 million in Q4 2022, with a full-year total of $151 million compared to $126 million in 2022[47]. - Impairment charges for certain intangible assets in Q4 2023 were $7 million, down from $34 million in Q4 2022, with net impairment charges for the full year at $5 million compared to $23 million in 2022[48]. - The company recorded an impairment of capitalized assets of $27 million in Q4 2023, with a net impact of $19 million after taxes[48]. - The amount attributable to noncontrolling interests in net income for Q4 2023 was $(1) million, compared to $4 million in Q4 2022[51].