HENRY SCHEIN, INC. 
Henry Schein, Inc.
Second Quarter 2020 Analyst Presentation
Growth Since Going Public
From Continuing Operations
(in millions, except per share data)
Reconciling Items | ||||||||||||||||||||||||||||
Special | ||||||||||||||||||||||||||||
Management | Tax Credit Related to | Net Gain on Sale of | ||||||||||||||||||||||||||
GAAP Basis | Compensation Costs | Restructuring Costs | Animal Health Spin-Off | Investments | Non-GAAP | |||||||||||||||||||||||
1995 | 2019 | CAGR | 1995 | 2019 | 1995 | 2019 | 1995 | 2019 | 1995 | 2019 | 1995 | 2019 | CAGR | |||||||||||||||
Net Sales | $ | 583.6 | $ | 9,985.8 | 12.56% | $ | - | $ | - | $ | - | $ | - | $ | 583.6 | $ | 9,985.8 | 12.6% | ||||||||||
Operating Income | $ | (2.5) | $ | 718.3 | 225% | $ | 20.8 | $ | - | $ | 14.7 | $ | 18.3 | $ | 733.0 | 16.6% | ||||||||||||
Operating Margin | -0.43% | 7.19% | 762 | bp | 3.13% | 7.34% | 18 bps* | |||||||||||||||||||||
Net Income | $ | (11.0) | $ | 700.7 | 218% | $ | 19.6 | $ | - | $ | 11.0 | $ | (1.3) | $ | (186.8) | $ | 8.6 | $ | 523.6 | 18.7% | ||||||||
Diluted EPS | $ | (0.21) | $ | 4.69 | 213% | $ | 0.37 | $ | - | $ | 0.07 | $ | (0.01) | $ | (1.25) | $ | 0.16 | $ | 3.51 | 13.7% |
* Average annual increase
Henry Schein, Inc.
Second Quarter 2020 Analyst Presentation Full Year 2019 Financial Highlights
From Continuing Operations
(in millions, except per share data)
Reconciling Items | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tax Credit Related | One-time tax | One-time tax charge | International | Transition Tax on | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net Gain on Sale of | to Animal Health | reorganization related | related to the Animal | Legal Entity | Repatriated Foreign | ||||||||||||||||||||||||||||||||||||||||||||||||||
GAAP Basis | Litigation Settlement | Restructuring | Investments | Spin-off | to HS One | Health Spin-off | Reorganization | Earnings | Total Reconciling Items | Non-GAAP | |||||||||||||||||||||||||||||||||||||||||||||
2018 | 2019 | Growth | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | Growth | ||||||||||||||||||||||||||||||||
Net Sales | $ | 9,417.6 | $ | 9,985.8 | 6.0% | $ | - | $ | - | $ | 9,417.6 | $ | 9,985.8 | 6.0% | |||||||||||||||||||||||||||||||||||||||||
Operating Income | $ | 600.6 | $ | 718.3 | 19.6% | $ | 38.5 | $ | - | $ | 54.4 | $ | 14.7 | $ | 92.9 | $ | 14.7 | $ | 693.5 | $ | 733.0 | 5.7% | |||||||||||||||||||||||||||||||||
Operating Margin | 6.38% | 7.19% | 81 | bp | 7.36% | 7.34% | (2) | bp | |||||||||||||||||||||||||||||||||||||||||||||||
Net Income | $ | 430.7 | $ | 700.7 | 62.7% | $ | 28.9 | $ | - | $ | 40.8 | $ | 11.0 | $ | - | $ | (186.8) | $ | - | $ | (1.3) | $ | 3.9 | $ | - | $ | 3.1 | $ | - | $ (10.6) | $ | - | $ | (10.0) | $ | - | $ | 56.0 | $ | (177.1) | $ | 486.8 | $ | 523.6 | 7.6% | ||||||||||
Diluted EPS | $ | 2.80 | $ | 4.69 | 67.5% | $ | 0.19 | $ | - | $ | 0.27 | $ | 0.07 | $ | - | $ | (1.25) | $ | - | $ | (0.01) | $ | 0.03 | $ | - | $ | 0.02 | $ | - | $ (0.07) | $ | - | $ | (0.07) | $ | - | $ | 0.37 | $ | (1.19) | $ | 3.17 | $ | 3.51 | 10.7% |
Henry Schein, Inc.
Second Quarter 2020 Analyst Presentation
Q2 2020 - Financial Highlights
From Continuing Operations
(in millions, except per share data)
Reconciling Items | ||||||||||||||||
2019-Restructuring | 2020-Restructuring | |||||||||||||||
GAAP Basis | Costs | Costs | Non-GAAP | |||||||||||||
Q2 2019 | Q2 2020 | Growth | Q2 2019 | Q2 2020 | Growth | |||||||||||
Net Sales | $ | 2,447.8 | $ | 1,684.4 | -31.2% | $ | 2,447.8 | $ | 1,684.4 | -31.2% | ||||||
Operating Income | $ | 162.3 | $ | (7.4) | -104.6% | $ | 11.9 | $ | 15.9 | $ | 174.2 | $ | 8.5 | -95.1% | ||
Operating Margin | 6.63% | -0.44% | (707) | bp | 7.12% | 0.50% | (662) | bp | ||||||||
Net Income | $ | 116.8 | $ | (11.4) | -109.8% | $ | 8.9 | $ | 12.0 | $ | 125.7 | $ | 0.6 | -99.5% | ||
Diluted EPS | $ | 0.78 | $ | (0.08) | -110.3% | $ | 0.06 | $ | 0.08 | $ | 0.84 | $ | - | -100.0% |
Henry Schein, Inc.
Second Quarter 2020 Analyst Presentation Q2 2020 - Financial Highlights
From Continuing Operations
(in millions, except per share data)
Reconciling Items
2019 and 2020 Restructuring Costs and 2019 | |||||||||||||||||
GAAP Basis | Tax Credit Related to Animal Health Spin-off | Non-GAAP | |||||||||||||||
Q2 2019 | Q2 2020 | Growth | Q2 2019 | Q2 2020 | Q2 2019 | Q2 2020 | Growth | ||||||||||
Net Sales | $ | 2,447.8 | $ | 1,684.4 | -31.2% | $ | - | $ | - | $ | 2,447.8 | $ | 1,684.4 | -31.2% | |||
Operating Income | $ | 162.3 | $ | (7.4) | -104.6% | 11.9 | 15.9 | $ | 174.2 | $ | 8.5 | -95.1% | |||||
Operating Margin | 6.63% | -0.44% | (707) bp | 7.12% | 0.50% | (662) | bp |
Henry Schein, Inc. | ||||||||||||||||||||||||||
Second Quarter 2020 Analyst Presentation | ||||||||||||||||||||||||||
Operating Income and Margin Highlights | ||||||||||||||||||||||||||
From Continuing Operations | ||||||||||||||||||||||||||
(in millions, except per share data) | ||||||||||||||||||||||||||
GAAP | Reconciling Items | Non-GAAP | ||||||||||||||||||||||||
2017 | 2018 | 2019 | Q2 2020 | 2017 | 2018 | 2019 | Q2 2020 | 2017 | 2018 | 2019 | Q2 2020 | |||||||||||||||
Net Sales | $ | 8,883.4 | $ | 9,417.6 | $ | 9,985.8 | $ | 1,684.4 | Net Sales | $ | 8,883.4 | $ | 9,417.6 | $ | 9,985.8 | $ | 1,684.4 | |||||||||
Operating Income | $ | 669.8 | $ | 600.6 | $ | 718.3 | $ | (7.4) | $ | 5.3 | $ | 92.9 | $ | 14.7 | $ | 15.9 | Operating Income | $ | 675.1 | $ | 693.5 | $ | 733.0 | $ | 8.5 | |
Operating Margin | 7.54% | 6.38% | 7.19% | -0.44% | Operating Margin | 7.60% | 7.36% | 7.34% | 0.50% | |||||||||||||||||
Operating Income Growth % | 20% | Operating Income Growth % | 6% | |||||||||||||||||||||||
Operating Margin % | 7.19% | Operating Margin % | 7.34% | |||||||||||||||||||||||
CAGR | 3.56% | CAGR | 4.20% |
Henry Schein, Inc. | |||||||||||||||||
Second Quarter 2020 Analyst Presentation | |||||||||||||||||
Earnings Highlights | |||||||||||||||||
From Continuing Operations | |||||||||||||||||
(in millions, except per share data) | |||||||||||||||||
GAAP EPS | GAAP Net Income | ||||||||||||||||
2017 | 2018 | 2019 | Q2 2020 | 2017 | 2018 | 2019 | Q2 2020 | ||||||||||
GAAP Earnings per share | $ | 1.85 | $ | 2.80 | $ | 4.69 | $ | (0.08) | GAAP Net Income | $ | 293.2 | $ | 430.7 | $ | 700.7 | $ | (11.4) |
GAAP EPS Growth % | 51% | 68% | |||||||||||||||
GAAP EPS CAGR | 51% | ||||||||||||||||
2017 | 2018 | 2019 | Q2 2020 | 2017 | 2018 | 2019 | Q2 2020 | ||||||||||
Restructuring costs | $ | - | $ | 0.27 | $ | 0.07 | $ | 0.08 | Restructuring costs | $ | 40.8 | $ | 11.0 | $ | 12.0 | ||
Litigation Settlement | $ | 0.02 | $ | 0.19 | Litigation Settlement | $ | 3.2 | $ | 28.9 | ||||||||
Loss on Sale of Equity Investment | $ | 0.11 | Loss on Sale of Equity Investment | $ | 17.6 | ||||||||||||
Transitional Tax on Repatriated Foreign | Transitional Tax on Repatriated | ||||||||||||||||
Earnings | $ | 0.88 | $ | (0.07) | Foreign Earnings | $ | 140.0 | $ | (10.0) | ||||||||
Deferred Taxes Associated with U.S. Tax | Deferred Taxes Associated with U.S. | ||||||||||||||||
Reform Legislation | $ | 0.02 | Tax Reform Legislation | $ | 3.0 | ||||||||||||
One-time tax on reorganization related | One-time tax on reorganization | ||||||||||||||||
to HS One | $ | 0.03 | related to HS One | $ | 3.9 | ||||||||||||
International Legal Entity | International Legal Entity | ||||||||||||||||
Reorganization | $ | (0.07) | Reorganization | $ | (10.6) | ||||||||||||
One-Time Tax Charge Related to the | One-Time Tax Charge Related to the | ||||||||||||||||
Animal Health Spin-Off | $ | 0.02 | Animal Health Spin-Off | $ | 3.1 | ||||||||||||
Tax Credit Related to Animal Health Spin- | Tax Credit Related to Animal Health | ||||||||||||||||
Off | $ | (0.01) | Spin-Off | $ | (1.3) | ||||||||||||
Net Gain on Sale ofInvestments | $ | (1.25) | Net Gain on Sale of Investments | $ | (186.8) | ||||||||||||
Non-GAAP EPS | Non-GAAP Net Income | ||||||||||||||||
2017 | 2018 | 2019 | Q2 2020 | 2017 | 2018 | 2019 | Q2 2020 | ||||||||||
Non-GAAP EPS | $ | 2.89 | $ | 3.17 | $ | 3.51 | $ | - | Non-GAAP Net Income | $ | 457.0 | $ | 486.8 | $ | 523.6 | $ | 0.6 |
Non-GAAP EPS Growth % | 10% | 11% | |||||||||||||||
Non-GAAP EPS CAGR | 10% |
Henry Schein, Inc.
Second Quarter 2020 Analyst Presentation Income Tax Rate Reconciliation
From Continuing Operations (in millions, except tax rate)
Q2 2020 | |||||
Pretax income | Tax Expense | Tax Rate | |||
Income Tax Rate - GAAP | $ | (16.2) | $ | 1.0 | 5.86% |
Add back Non-GAAP Adjustments | |||||
Restructuring costs | 15.9 | (4.0) | |||
Income Tax Rate - Non-GAAP | $ | (0.3) | $ | (3.0) | N/A |
Henry Schein, Inc.
Second Quarter 2020 Analyst Presentation Net Debt to EBITDA
From Continuing Operations (in millions, except ratio)
Last Twelve Months Ending June 2020 | ||||||||||
Reconciling Items | ||||||||||
Impairment | ||||||||||
Charges and Deal | ||||||||||
GAAP | Letters of Credit | Cash Adjustment | Costs | Restructuring Costs | Non-GAAP | |||||
Net Debt | $ | 832.5 | $ | 12.7 | $ | 46.1 | $ | - | $ | 891.3 |
EBITDA, as calculated | 767.0 | $ | 7.9 | 18.9 | 793.7 | |||||
Net Debt to EBITDA | 1.09 | 1.12 | ||||||||
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Disclaimer
Henry Schein Inc. published this content on 04 August 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 August 2020 12:36:11 UTC
