Henry Schein(US:HSIC)2024-05-07 10:11Financial Performance - First-quarter 2024 sales increased by 3.7% to $3.2 billion compared to the first quarter of 2023[6] - GAAP diluted EPS for the quarter was $0.72, down from $0.91 in the first quarter of 2023, while non-GAAP diluted EPS was $1.10, down from $1.21[10] - Net income attributable to Henry Schein, Inc. for Q1 2024 was $93 million, down 23.2% from $121 million in Q1 2023[38] - Diluted EPS attributable to Henry Schein, Inc. decreased by 20.9% to $0.72 in Q1 2024 from $0.91 in Q1 2023[38] - Non-GAAP net income attributable to Henry Schein, Inc. was $143 million in Q1 2024, down 11.3% from $161 million in Q1 2023[38] - Total net income (GAAP) for Q1 2024 was $98 million, compared to $128 million in Q1 2023, reflecting a decline of 23.4%[44] Sales and Revenue - The company tightened its total sales growth guidance for 2024 to a range of 8% to 10%, reflecting recovery from last year's cyber incident[5] - Total sales for Q1 2024 were $3,172 million, representing a growth of 3.7% compared to $3,060 million in Q1 2023[34] - Global Medical sales grew by 7.3%, while Global Dental sales saw a decrease of 2.9% internally[7] - Dental merchandise sales decreased by 3.7% to $1,914 million in Q1 2024 from $1,898 million in Q1 2023[34] Cash Flow and Assets - Cash and cash equivalents at the end of Q1 2024 were $159 million, down from $171 million at the end of Q4 2023[31] - The company reported a cash flow from operating activities of $197 million in Q1 2024, significantly up from $27 million in Q1 2023[31] - Total assets decreased from $10,573 million to $10,145 million, a decline of approximately 4.1%[29] - Total current liabilities decreased from $2,683 million to $2,334 million, a reduction of approximately 13%[29] Costs and Expenses - Adjusted EBITDA for the quarter was $255 million, consistent with the first quarter of 2023[10] - Adjusted EBITDA for Q1 2024 was $255 million, slightly down from $256 million in Q1 2023, indicating a decrease of 0.4%[44] - Interest expense increased significantly to $30 million in Q1 2024 from $14 million in Q1 2023, marking a rise of 114.3%[44] - Depreciation and amortization expenses rose to $73 million in Q1 2024, up from $52 million in Q1 2023, an increase of 40.4%[44] - Income taxes for Q1 2024 were $32 million, down from $39 million in Q1 2023, a decrease of 17.9%[44] Strategic Initiatives - The company continues to focus on its BOLD+1 Strategic Plan and is optimistic about contributions from recent acquisitions[3] - The company repurchased approximately 1 million shares at an average price of $75.10 per share, totaling around $75 million[6] - Henry Schein has approximately $190 million authorized for future stock repurchases[8] Restructuring and Incident Impact - The company incurred restructuring costs of $10 million in Q1 2024, down from $30 million in Q1 2023[39] - Cyber incident-related professional fees amounted to $5 million in Q1 2024, with no such costs reported in Q1 2023[44] - Internal sales decreased by 1.8%, impacted by a 300 to 400 basis points decline due to the residual effects of last year's cyber incident[6] - Equity in earnings of affiliates, net of tax, showed a slight improvement, decreasing to a loss of $3 million in Q1 2024 from a loss of $4 million in Q1 2023[44]