Henry Schein, Inc. · NASDAQ:HSIC
Henry Schein — Q3 2024 Earnings Presentation
21 slides from Henry Schein's earnings presentation, Nov 5, 2024
Slide 1: Q3 2024 Earnings Conference Call
Q3 2024 Earnings Conference Call Financial Results & Outlook November 5, 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 businesses performed well during the third quarter with growth and efficiency throughout the business driven by the successful implementation of our BOLD+1 Strategic Plan. We believe we continued to steadily gain market share in our dental and medical distribution business followin
Slide 4: Q3 Financial Highlights
Q3 Financial Highlights Worldwide Sales Growth* Non-GAAP Diluted EPS** $1.22 +0.4% Foreign currency exchange impact on our third Underlying sales growth reflects improving sales quarter diluted EPS was unfavorable by trends in our distribution businesses approximately one cent versus the prior year
Slide 5: Consolidated Results
Q3 2024 Consolidated Results* Q3 2024 Q3 2023 Q3 2024 Q3 2023 BY GEOGRAPHY (in millions of USD except EPS) (GAAP) (GAAP) (Non-GAAP) (Non-GAAP) 9% Total Sales $3,174 $3,162 $3,174 $3,162 Rest of the World Operating Income $157 $200 $243 $255 17% Europe Operating Margin 4.94% 6.34% 7.64% 8.09% 74% Nor
Slide 6: Worldwide Sales Summary
Q3 2024 Worldwide Sales Summary (in millions of USD) Q3 2024 Q3 2023 y/y ∆ y/y LCI* ∆ Global Dental $1,852 $1,882 -1.6% -1.6% Global Medical 1,101 1,070 2.9% -4.8% Global Technology/VAS 221 210 5.1% -1.1% Total Sales $3,174 $3,162 0.4% -2.6% *LCI reflects internally generated sales in local currenci
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 Invests for complementary Annual growth in core Acquisition Strategic Rationale Expected Outcome high-growth software, Revenue specialty and services distribution business businesses • Expand product offering and • Strengthens relationship with existing pro
Slide 9: Balanced Capital Allocation Strategy
Balanced Capital Allocation Strategy Disciplined Approach to Balance Sheet Management $644M YTD Operating Cashflow 2.8x Debt-to-EBITDA ratio as of September 28, 2024 $455M Remaining share Maintain investment grade repurchase balance sheet authorization as of 9/28/2024 Acquisitions $223M Invested YTD
Slide 10: Financial Guidance – FY2024
Financial Guidance – FY2024 Our 2024 total sales growth is now expected to be approximately 4% to 5% over 2023, versus our previous guidance of 4% to 6% growth. We now expect non-GAAP diluted EPS to be in the range of $4.74 to $4.82, which compares with previous guidance of $4.70 to $4.82, and refle
Slide 11: Summary - Q3 2024
Summary - Q3 2024 Raising FY24 non-GAAP EPS guidance from $4.70 - $4.82 to $4.74 - $4.82 Overall stable market conditions in Q3 and into October. Business highlights include: - steadily gaining market share sequentially compared to the second quarter in our dental and medical distribution businesses
Slide 12: Appendix
Appendix 12
Slide 13: Worldwide Financial Results
Q3 2024 Worldwide Financial Results* Q3 2024 Q3 2023 (in millions of USD except EPS) y/y ∆ (Non-GAAP) (Non-GAAP) Total sales $3,174 $3,162 0.4% Gross profit 993 995 -0.2% Gross margin 31.28% 31.47% -19 bps Operating expenses (Non-GAAP)** 750 740 1.5% Operating income (Non-GAAP)** $243 $255 -5.2% Ope
Slide 14: Adjusted EBITDA
Adjusted EBITDA (in millions of USD) Q3 2024 Q3 2023 Net Income attributable to Henry Schein, Inc. (GAAP) $99 $137 Income attributable to noncontrolling interests - 6 Net Income (GAAP) 99 143 Interest income (7) (6) Interest expense 34 25 Income taxes 32 39 Depreciation and amortization 74 69 Restru
Slide 15: Global Dental Sales Summary
Q3 2024 Global Dental Sales Summary (in millions of USD) Q3 2024 Q3 2023 y/y ∆ y/y LCI* ∆ North America Dental Consumables $823 $866 -5.0% -4.9% North America Dental Equipment 266 268 -0.6% -0.3% North America Dental $1,089 $1,134 -3.9% -3.8% International Dental Consumables $601 $599 0.3% 0.9% Inte
Slide 16: Global Medical Sales Summary
Q3 2024 Global Medical Sales Summary (in millions of USD) Q3 2024 Q3 2023 y/y ∆ y/y LCI* ∆ North America Medical $1,076 $1,044 3.0% -4.8% International Medical 25 26 -4.7% -5.9% Global Medical $1,101 $1,070 2.9% -4.8% 16 *LCI reflects internally generated sales in local currencies excluding acquisit
Slide 17: Technology/VAS Sales Summary
Q3 2024 Technology/VAS Sales Summary (in millions of USD) Q3 2024 Q3 2023 y/y ∆ y/y LCI* ∆ North America Technology/VAS $190 $185 2.3% -3.1% International Technology/VAS 31 25 25.4% 13.4% Global Technology/VAS $221 $210 5.1% -1.1% 17 *LCI reflects internally generated sales in local currencies exclu
Slide 18: Technology/VAS + Dental Specialty Sales Summary
Q3 2024 Technology/VAS + Dental Specialty Sales Summary (in millions of USD) Q3 2024 Q3 2023 y/y ∆ Global Technology/VAS $221 $210 5.1% Global Dental Specialties* 258 259 -0.1% Global Technology/VAS + Dental Specialties $479 $469 2.2% % of Total Sales 15.1% 14.8% *Dental Specialties consists of our
Slide 19: GAAP to Non-GAAP Income Statements
Q3 2024 GAAP to Non-GAAP Income Statements Acquisition Cyber Incident Q3 2024 Restructuring Q3 2024 (in millions of USD except EPS) Intangible Costs GAAP Costs Non-GAAP Amortization (Recovery) Total sales $3,174 $3,174 Gross profit 993 993 Selling, general and administrative 724 9 733 Depreciation a
Slide 20: GAAP & Non-GAAP Reconciliations
GAAP & Non-GAAP Reconciliations Q3 2024 Financial Highlights Henry Schein, Inc. Third Quarter 2024 Analyst Presentation Q3 2024 - Financial Highlights (in millions, except per share data) Reconciling Items Cyber Incident-Insurance Acquisition Intangible Proceeds, Net of Third-Party GAAP Restructurin
Slide 21: GAAP & Non-GAAP Reconciliations
GAAP & Non-GAAP Reconciliations 2023 Financial Highlights Henry Schein, Inc. Third 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