Henry Schein, Inc. · NASDAQ:HSIC
Henry Schein — Q1 2024 Earnings Presentation
20 slides from Henry Schein's earnings presentation, May 7, 2024
Slide 1: Q1 2024 Earnings Conference Call
Q1 2024 Earnings Conference Call Financial Results & Outlook May 7, 2024
Slide 2: Cautionary Note Regarding Forward-Looking Statements and Use of Non-GAAP Financial Information
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 ca
Slide 3: Key Takeaways
Key Takeaways Our first quarter financial results reflect solid earnings driven by gross margin expansion and a strong recovery from last quarter’s cyber incident We continue to make good progress on executing our BOLD+1 Strategic Plan and are pleased with the contribution of our recent acquisitions
Slide 4: Q1 Financial Highlights
Q1 Financial Highlights Worldwide Sales Growth Non-GAAP Diluted EPS* +3.7% $1.10 Residual impact of the cyber incident reduced The residual impact of the cyber incident on our sales growth by approximately 300 to 400 basis first quarter 2024 results was consistent with the points with lower PPE Sale
Slide 5: Consolidated Results
Q1 2024 Consolidated Results* Q1 2024 Q1 2023 Q1 2024 Q1 2023 BY GEOGRAPHY (in millions of USD except EPS) (GAAP) (GAAP) (Non-GAAP) (Non-GAAP) 9% Total Sales $3,172 $3,060 $3,172 $3,060 Rest of the World Operating Income $150 $175 $226 $235 18% Europe Operating Margin 4.72% 5.73% 7.11% 7.68% 73% Nor
Slide 6: Worldwide Sales Summary
Q1 2024 Worldwide Sales Summary (in millions of USD) Q1 2024 Q1 2023 y/y ∆ y/y LCI* ∆ Global Dental $1,914 $1,898 0.8% -2.9% Global Medical 1,041 971 7.3% -0.7% Global Technology/VAS 217 191 13.8% 3.2% Total Sales $3,172 $3,060 3.7% -1.8% *LCI reflects internally generated sales in local currencies
Slide 7: Progress on BOLD+1 Strategic Priorities
Progress on BOLD+1 Strategic Priorities Objective Update • Closed TriMed acquisition to enter the high growth high margin foot and ankle, hand and wrist segments of the orthopedic market • With Biotech Dental and S.I.N. Implant System acquisitions, became the #3 Dental Implant/Biomaterials business
Slide 8: Value Creation Through Focused M&A
Value Creation Through Focused M&A Expands complementary Invests for Annual high-growth software, growth in core Acquisition Strategic Rationale Expected Outcome specialty and services distribution Revenue businesses business • Expands dental implant, • Market leader in France clear aligner business
Slide 9: Balanced Capital Allocation Strategy
Balanced Capital Allocation Strategy Disciplined Approach to Balance Sheet Management $197M YTD Operating Cashflow 2.3x Debt-to-EBITDA ratio as of March 30, 2024 $1.2B Available borrowing capacity as of March 30, 2024 Maintain investment grade balance sheet Acquisitions $20M Invested YTD Strong bala
Slide 10: Financial Guidance – FY2024
Financial Guidance – FY2024 We are affirming our guidance for non-GAAP diluted EPS and Adjusted EBITDA growth. In addition, we are updating our guidance for total sales growth. Our projected sales growth reflects continued recovery by our distribution businesses from the cyber incident and a strong
Slide 11: Appendix
Appendix 11
Slide 12: Worldwide Financial Results
Q1 2024 Worldwide Financial Results* Q1 2024 Q1 2023 (in millions of USD except EPS) y/y ∆ (Non-GAAP) (Non-GAAP) Total sales $3,172 $3,060 3.7% Gross profit 1,012 966 4.7% Gross margin 31.89% 31.57% +32 bps Operating expenses (Non-GAAP)** 786 731 7.6% Operating income (Non-GAAP)** $226 $235 -4.0% Op
Slide 13: Adjusted EBITDA
Adjusted EBITDA (in millions of USD) Q1 2024 Q1 2023 Net Income attributable to Henry Schein, Inc. (GAAP) $93 $121 Income attributable to noncontrolling interests 5 7 Net Income (GAAP) 98 128 Interest income (5) (3) Interest expense 30 14 Income taxes 32 39 Depreciation and amortization 73 52 Restru
Slide 14: Global Dental Sales Summary
Q1 2024 Global Dental Sales Summary (in millions of USD) Q1 2024 Q1 2023 y/y ∆ y/y LCI* ∆ North America Dental Consumables $848 $896 -5.4% -5.5% North America Dental Equipment 255 248 3.0% 2.9% North America Dental $1,103 $1,144 -3.6% -3.7% International Dental Consumables $651 $591 10.2% -1.0% Inte
Slide 15: Global Medical Sales Summary
Q1 2024 Global Medical Sales Summary (in millions of USD) Q1 2024 Q1 2023 y/y ∆ y/y LCI* ∆ North America Medical $1,014 $951 6.6% -0.5% International Medical 27 20 40.4% -10.4% Global Medical $1,041 $971 7.3% -0.7% 15 *LCI reflects internally generated sales in local currencies excluding acquisition
Slide 16: Technology/VAS Sales Summary
Q1 2024 Technology/VAS Sales Summary (in millions of USD) Q1 2024 Q1 2023 y/y ∆ y/y LCI* ∆ North America Technology/VAS $189 $166 13.9% 2.3% International Technology/VAS 28 25 12.7% 8.9% Global Technology/VAS $217 $191 13.8% 3.2% 16 *LCI reflects internally generated sales in local currencies exclud
Slide 17: Technology/VAS + Dental Specialty Sales Summary
Q1 2024 Technology/VAS + Dental Specialty Sales Summary (in millions of USD) Q1 2024 Q1 2023 y/y ∆ Global Technology/VAS $217 $191 13.8% Global Dental Specialties* 284 233 21.6% Global Technology/VAS + Dental Specialties $501 $424 18.1% % of Total Sales 15.8% 13.9% *Dental Specialties consists of ou
Slide 18: GAAP to Non-GAAP Income Statements
Q1 2024 GAAP to Non-GAAP Income Statements Acquisition Change in Q1 2024 Restructuring Cyber Incident Q1 2024 (in millions of USD except EPS) GAAP Costs Intangible Costs Contingent Non-GAAP Amortization Consideration Total sales $3,172 $3,172 Gross profit 1,012 1,012 Selling, general and administrat
Slide 19: GAAP & Non-GAAP Reconciliations: Q1 2024 Financial Highlights
GAAP & Non-GAAP Reconciliations Q1 2024 Financial Highlights Henry Schein, Inc. First Quarter 2024 Analyst Presentation Q1 2024 - Financial Highlights (in millions, except per share data) Reconciling Items Acquisition Intangible Cyber Incident-Third-Party Change in Contingent GAAP Restructuring Cost
Slide 20: GAAP & Non-GAAP Reconciliations: 2023 Financial Highlights
GAAP & Non-GAAP Reconciliations 2023 Financial Highlights Henry Schein, Inc. First Quarter 2024 Analyst Presentation Full Year 2023 Financial Highlights (in millions, except per share data) Reconciling Items Cyber Incident- Restructuring and Acquisition Intangible Third-Party Impairment of Impairmen