- First-quarter 2025 GAAP diluted EPS of $0.88, growth of 22%
compared to the first quarter of 2024
- First-quarter 2025 non-GAAP diluted EPS of $1.15, growth of
4.5% compared to the first quarter of 2024
- Maintains guidance for 2025 non-GAAP diluted EPS of $4.80 to
$4.94, mid-single digit 2025 Adjusted EBITDA growth, and sales
growth of 2% to 4%
- Repurchased $161 million of common stock, or approximately
2.3 million shares
Henry Schein, Inc. (Nasdaq: HSIC), the world’s largest provider
of health care solutions to office-based dental and medical
practitioners, today reported financial results for the first
quarter ended March 29, 2025.
“We are pleased with our first quarter financial results as well
as the momentum we are seeing heading into the second quarter and
remain confident in the fundamentals of our business,” said Stanley
M. Bergman, Chairman of the Board and Chief Executive Officer of
Henry Schein.
“We are advancing our BOLD+1 Strategic Plan, which has been
refreshed for 2025 to 2027, with our team focused on growing the
distribution business through increasing operational efficiency and
enhancing customer experience, growing our dental and medical
specialty businesses and corporate brand products, and further
developing our digital footprint and digital solutions. We remain
committed to our long-term financial goal of high-single-digit to
low-double-digit earnings growth by continuing to successfully
execute against this strategy,” Mr. Bergman added.
First Quarter 2025 Financial Results
- Total net sales for the quarter were $3.2 billion:
- Constant currency total net sales increased 1.4% compared with
the first quarter of 2024. Excluding the impact of personal
protective equipment (PPE) and COVID test kits, constant currency
sales growth was 2.0%.
- As-reported total net sales decreased 0.1% due to a stronger
U.S. dollar versus the first quarter of last year.
- Global Distribution and Value-Added Services sales for
the quarter increased 0.8% in constant currencies compared with the
first quarter of 2024, and increased 1.5% excluding the impact of
PPE and COVID test kits. As-reported sales decreased 0.7%. The main
components include:
- Global Dental Distribution merchandise sales for the
quarter increased 0.4% in constant currencies compared with the
first quarter of 2024, and increased 0.9% excluding the impact of
PPE and COVID test kits. Monthly sales growth accelerated
throughout the quarter after a slow start in January primarily as a
result of weather-related events in the U.S. As-reported sales
decreased 2.1%.
- Global Dental Distribution equipment sales for the
quarter decreased 2.4% in constant currencies compared with the
first quarter of 2024. Sales growth was impacted by a deferral of
sales from the fourth quarter of 2023 to the first quarter of 2024,
resulting in a more difficult year-over-year comparison. Adjusting
for this, global dental equipment sales growth in constant
currencies was approximately flat to prior year. As-reported sales
decreased 4.5%.
- Global Medical Distribution sales for the quarter
increased 3.0% in constant currencies compared with the first
quarter of 2024, and increased 4.4% excluding the impact of PPE and
COVID test kits, reflecting increased patient traffic to physician
offices, strong growth in our home solutions business and growth
from acquisitions. As-reported sales increased 2.9%.
- Global Specialty Products sales for the quarter
increased 4.3% in constant currencies compared with the first
quarter of 2024, reflecting continued growth in implant and
biomaterial sales and acquisition growth. As-reported sales
increased 2.0%.
- Global Technology sales for the quarter increased 3.4%
in constant currencies compared with the first quarter of 2024.
Strong sales growth in practice management systems, including
Dentrix Ascend and Dentally cloud-based solutions, as well as in
revenue cycle management products, was partially offset by lower
sales of certain legacy products that are being sunset. As-reported
sales increased 2.9%.
First-quarter sales growth is detailed in
Exhibit A1.
- GAAP net income2 for the quarter was $110 million, or
$0.88 per diluted share4, and compares with first-quarter 2024 GAAP
net income of $93 million, or $0.72 per diluted share.
- Non-GAAP net income2 for the quarter was $143 million,
or $1.15 per diluted share4, and compares with first-quarter 2024
non-GAAP net income of $143 million, or $1.10 per diluted
share.
- Adjusted EBITDA3 for the quarter was $259 million and
compares with first-quarter 2024 Adjusted EBITDA of $255
million.
Restructuring Plan
During the first quarter of 2025, the Company recorded $25
million in restructuring costs and expects to achieve annual
run-rate savings at the high end of its $75 million to $100 million
goal by the end of 2025.
Share Repurchases
During the first quarter of 2025, the Company repurchased
approximately 2.3 million shares of its common stock at an average
price of $71.58 per share, for a total of $161 million. The impact
of these share repurchases on first-quarter diluted EPS was
immaterial.
At the end of the quarter, Henry Schein had $718 million
authorized and available for future stock repurchases.
2025 Financial Guidance
Henry Schein today maintained its financial guidance for 2025.
Guidance is for current continuing operations as well as
acquisitions that have closed and does not include the impact of
restructuring and integration expenses, amortization expense of
acquired intangible assets, the insurance claim recovery associated
with the cybersecurity incident and costs associated with
shareholder advisory matters. This guidance also assumes that
foreign currency exchange rates remain generally consistent with
current levels and that additional tariffs will not be
introduced.
- 2025 non-GAAP diluted EPS attributable to Henry Schein, Inc. is
unchanged and is expected to be $4.80 to $4.94, reflecting growth
of 1% to 4% compared with 2024 non-GAAP diluted EPS of $4.74.
- 2025 total sales growth is unchanged and is expected to be
approximately 2% to 4% over 2024.
- 2025 Adjusted EBITDA3 growth is unchanged and is expected to
increase mid-single digits compared with 2024.
Adjustments to 2025 GAAP Net Income and Diluted EPS
The Company is providing guidance for 2025 diluted EPS on a
non-GAAP basis and for 2025 Adjusted EBITDA, as noted above. The
Company is not providing a reconciliation of its 2025 non-GAAP
diluted EPS guidance to its projected 2025 diluted EPS prepared on
a GAAP basis, or its 2025 Adjusted EBITDA guidance to net income
prepared on a GAAP basis. This is because the Company is unable to
provide without unreasonable effort an estimate of restructuring
costs related to an ongoing initiative to drive operating
efficiencies, including the corresponding tax effect, which will be
included in the Company’s 2025 diluted EPS and net income, prepared
on a GAAP basis. The inability to provide this reconciliation is
due to the uncertainty and inherent difficulty of predicting the
occurrence, magnitude, financial impact and timing of related
costs.
Management does not believe these items are representative of
the Company’s underlying business performance. For the same
reasons, the Company is unable to address the probable significance
of the unavailable information, which could be material to future
results.
First-Quarter 2025 Conference Call Webcast
The Company will hold a conference call to discuss first-quarter
2025 financial results today, beginning at 8:00 a.m. Eastern time.
Individual investors are invited to listen to the conference call
through Henry Schein’s website by visiting
https://investor.henryschein.com/webcasts. In addition, a replay
will be available beginning shortly after the call has ended for a
period of one week.
The Company will be posting slides that provide a summary of its
first-quarter 2025 financial results on its website at
https://www.henryschein.com/us-en/Corporate/investor-presentations.aspx.
About Henry Schein, Inc.
Henry Schein, Inc. (Nasdaq: HSIC) is a solutions company for
health care professionals powered by a network of people and
technology. With approximately 25,000 Team Schein Members
worldwide, the Company's network of trusted advisors provides more
than 1 million customers globally with more than 300 valued
solutions that help improve operational success and clinical
outcomes. Our Business, Clinical, Technology and Supply Chain
solutions help office-based dental and medical practitioners work
more efficiently so they can provide quality care more effectively.
These solutions also support dental laboratories, government and
institutional health care clinics, as well as other alternate care
sites.
Henry Schein operates through a centralized and automated
distribution network, with a selection of more than 300,000 branded
products and Henry Schein corporate brand products in our main
distribution centers.
A FORTUNE 500 Company and a member of the S&P 500® index,
Henry Schein is headquartered in Melville, N.Y., and has operations
or affiliates in 33 countries and territories. The Company's sales
reached $12.7 billion in 2024, and have grown at a compound annual
rate of approximately 11.2 percent since Henry Schein became a
public company in 1995.
For more information, visit Henry Schein at www.henryschein.com,
Facebook.com/HenrySchein, Instagram.com/HenrySchein, and
@HenrySchein on X.
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 cause future results to differ materially from the
forward-looking statements, expectations and assumptions expressed
or implied herein. All forward-looking statements made by us are
subject to risks and uncertainties and are not guarantees of future
performance. These forward-looking statements involve known and
unknown risks, uncertainties and other factors that may cause our
actual results, performance and achievements or industry results to
be materially different from any future results, performance or
achievements expressed or implied by such forward-looking
statements.
These statements include total sales growth, EPS and Adjusted
EBITDA guidance and are generally identified by the use of such
terms as “may,” “could,” “expect,” “intend,” “believe,” “plan,”
“estimate,” “forecast,” “project,” “anticipate,” “to be,” “to make”
or other comparable terms. A fuller discussion of our operations,
financial condition and status of litigation matters, including
factors that may affect our business and future prospects, is
contained in documents we have filed with the United States
Securities and Exchange Commission, or SEC, including our Annual
Report on Form 10-K, and will be contained in all subsequent
periodic filings we make with the SEC. These documents identify in
detail important risk factors that could cause our actual
performance to differ materially from current expectations.
Risk factors and uncertainties that could cause actual results
to differ materially from current and historical results include,
but are not limited to: our dependence on third parties for the
manufacture and supply of our products and where we manufacture
products, our dependence on third parties for raw materials or
purchased components; risks relating to the achievement of our
strategic growth objectives; risks related to the Strategic
Partnership Agreement with KKR Hawaii Aggregator L.P. entered into
in January 2025; our ability to develop or acquire and maintain and
protect new products (particularly technology products) and
services and utilize new technologies that achieve market
acceptance with acceptable margins; transitional challenges
associated with acquisitions, dispositions and joint ventures,
including the failure to achieve anticipated synergies/benefits, as
well as significant demands on our operations, information systems,
legal, regulatory, compliance, financial and human resources
functions in connection with acquisitions, dispositions and joint
ventures; certain provisions in our governing documents that may
discourage third-party acquisitions of us; adverse changes in
supplier rebates or other purchasing incentives; risks related to
the sale of corporate brand products; risks related to activist
investors; security risks associated with our information systems
and technology products and services, such as cyberattacks or other
privacy or data security breaches (including the October 2023
incident); effects of a highly competitive (including, without
limitation, competition from third-party online commerce sites) and
consolidating market; changes in the health care industry; risks
from expansion of customer purchasing power and multi-tiered
costing structures; increases in shipping costs for our products or
other service issues with our third-party shippers, and increases
in fuel and energy costs; changes in laws and policies governing
manufacturing, development and investment in territories and
countries where we do business; general global and domestic
macro-economic and political conditions, including inflation,
deflation, recession, unemployment (and corresponding increase in
under-insured populations), consumer confidence, sovereign debt
levels, ongoing wars, fluctuations in energy pricing and the value
of the U.S. dollar as compared to foreign currencies, changes to
other economic indicators and international trade agreements; the
threat or outbreak of war, terrorism or public unrest (including,
without limitation, the war in Ukraine, the Israel-Gaza war and
other unrest and threats in the Middle East and the possibility of
a wider European or global conflict); changes to laws and policies
governing foreign trade, tariffs and sanctions, including the
current imposition of additional new tariffs by the U.S. on
numerous countries, retaliatory tariffs and potential for
additional retaliatory tariffs; greater restrictions on imports and
exports; supply chain disruption; geopolitical wars; failure to
comply with existing and future regulatory requirements, including
relating to health care; risks associated with the EU Medical
Device Regulation; failure to comply with laws and regulations
relating to health care fraud or other laws and regulations;
failure to comply with laws and regulations relating to the
collection, storage and processing of sensitive personal
information or standards in electronic health records or
transmissions; changes in tax legislation, changes in tax rates and
availability of certain tax deductions; risks related to product
liability, intellectual property and other claims; risks associated
with customs policies or legislative import restrictions; risks
associated with disease outbreaks, epidemics, pandemics (such as
the COVID-19 pandemic), or similar wide-spread public health
concerns and other natural or man-made disasters; risks associated
with our global operations; litigation risks; new or unanticipated
litigation developments and the status of litigation matters; our
dependence on our senior management, employee hiring and retention,
increases in labor costs or health care costs, and our
relationships with customers, suppliers and manufacturers; and
disruptions in financial markets. The order in which these factors
appear should not be construed to indicate their relative
importance or priority.
We caution that these factors may not be exhaustive and that
many of these factors are beyond our ability to control or predict.
Accordingly, any forward-looking statements contained herein should
not be relied upon as a prediction of actual results. We undertake
no duty and have no obligation to update forward-looking statements
except as required by law.
Included within the press release are non-GAAP financial
measures that supplement the Company’s Consolidated Statements of
Income prepared under generally accepted accounting principles
(GAAP). These non-GAAP financial measures adjust the Company’s
actual results prepared under GAAP to exclude certain items. In the
schedule attached to the press release, the non-GAAP measures have
been reconciled to and should be considered together with the
Consolidated Statements of Income. Management believes that
non-GAAP financial measures provide investors with useful
supplemental information about the financial performance of our
business, enable comparison of financial results between periods
where certain items may vary independent of business performance
and allow for greater transparency with respect to key metrics used
by management in operating our business. The impact of certain
items that are excluded include integration and restructuring
costs, and amortization of acquisition-related assets, because the
amount and timing of such charges are significantly impacted by the
timing, size, number and nature of the acquisitions we consummate
and occur on an unpredictable basis. These non-GAAP financial
measures are presented solely for informational and comparative
purposes and should not be regarded as a replacement for
corresponding, similarly captioned, GAAP measures.
1 See Exhibit A for details of sales growth. Internal sales
growth is calculated from total net sales using constant foreign
currency exchange rates and excludes sales from acquisitions.
2 See Exhibit B for a reconciliation of GAAP net income and
diluted EPS to non-GAAP net income and diluted EPS.
3 See Exhibit C for a reconciliation of GAAP net income to
Adjusted EBITDA.
4 References to diluted EPS refer to diluted EPS attributable to
Henry Schein, Inc.
(TABLES TO FOLLOW)
HENRY SCHEIN, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF INCOME
(in millions, except share and
per share data)
(unaudited)
Three Months Ended
March 29,
March 30,
2025
2024
Net sales
$
3,168
$
3,172
Cost of sales
2,168
2,160
Gross profit
1,000
1,012
Operating expenses:
Selling, general and administrative
738
791
Depreciation and amortization
62
61
Restructuring costs
25
10
Operating income
175
150
Other income (expense):
Interest income
6
5
Interest expense
(35
)
(30
)
Other, net
(1
)
2
Income before taxes, equity in earnings of
affiliates and noncontrolling interests
145
127
Income taxes
(35
)
(32
)
Equity in earnings of affiliates, net of
tax
3
3
Net income
113
98
Less: Net income attributable to
noncontrolling interests
(3
)
(5
)
Net income attributable to Henry Schein,
Inc.
$
110
$
93
Earnings per share attributable to
Henry Schein, Inc.:
Basic
$
0.89
$
0.72
Diluted
$
0.88
$
0.72
Weighted-average common shares
outstanding:
Basic
123,776,073
128,720,661
Diluted
124,848,221
129,769,580
HENRY SCHEIN, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(in millions, except share
data)
March 29,
December 28,
2025
2024
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents
$
127
$
122
Accounts receivable, net of allowance for
credit losses of $81 and $78
1,578
1,482
Inventories, net
1,842
1,810
Prepaid expenses and other
490
569
Total current assets
4,037
3,983
Property and equipment, net
556
531
Operating lease right-of-use assets
294
293
Goodwill
3,956
3,887
Other intangibles, net
1,028
1,023
Investments and other
609
501
Total assets
$
10,480
$
10,218
LIABILITIES, REDEEMABLE NONCONTROLLING
INTERESTS AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable
$
908
$
962
Bank credit lines
867
650
Current maturities of long-term debt
56
56
Operating lease liabilities
77
75
Accrued expenses:
Payroll and related
243
303
Taxes
160
139
Other
606
618
Total current liabilities
2,917
2,803
Long-term debt
1,968
1,830
Deferred income taxes
135
102
Operating lease liabilities
256
259
Other liabilities
485
387
Total liabilities
5,761
5,381
Redeemable noncontrolling interests
765
806
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.01 par value,
1,000,000 shares authorized,
none outstanding
-
-
Common stock, $0.01 par value, 480,000,000
shares authorized,
122,243,683 outstanding on March 29, 2025
and
124,155,884 outstanding on December 28,
2024
1
1
Additional paid-in capital
-
-
Retained earnings
3,626
3,771
Accumulated other comprehensive loss
(317
)
(379
)
Total Henry Schein, Inc. stockholders'
equity
3,310
3,393
Noncontrolling interests
644
638
Total stockholders' equity
3,954
4,031
Total liabilities, redeemable
noncontrolling interests and stockholders' equity
$
10,480
$
10,218
HENRY SCHEIN, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(in
millions)/(unaudited)
Three Months Ended
March 29,
March 30,
2025
2024
Cash flows from operating
activities:
Net income
$
113
$
98
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization
73
73
Impairment charge on intangible assets
1
-
Non-cash restructuring charges
1
1
Stock-based compensation expense
5
8
Provision for losses on trade and other
accounts receivable
2
5
Provision for (benefit from) deferred
income taxes
(7
)
2
Equity in earnings of affiliates
(3
)
(3
)
Distributions from equity affiliates
2
2
Changes in unrecognized tax benefits
2
2
Other
(27
)
(6
)
Changes in operating assets and
liabilities, net of acquisitions:
Accounts receivable
(74
)
190
Inventories
(14
)
74
Other current assets
75
41
Accounts payable and accrued expenses
(112
)
(290
)
Net cash provided by operating
activities
37
197
Cash flows from investing
activities:
Purchases of property and equipment
(31
)
(41
)
Payments related to equity investments and
business acquisitions,
net of cash acquired
(51
)
(20
)
Proceeds from loan to affiliate
-
1
Capitalized software costs
(12
)
(9
)
Other
(5
)
(3
)
Net cash used in investing activities
(99
)
(72
)
Cash flows from financing
activities:
Net change in bank credit lines
215
-
Proceeds from issuance of long-term
debt
150
90
Principal payments for long-term debt
(15
)
(60
)
Proceeds from issuance of stock upon
exercise of stock options
1
1
Payments for repurchases and retirement of
common stock
(161
)
(75
)
Payments for taxes related to shares
withheld for employee taxes
(12
)
(7
)
Distributions to noncontrolling
shareholders
(4
)
(6
)
Payments for contingent consideration
(12
)
-
Acquisitions of noncontrolling interests
in subsidiaries
(73
)
(94
)
Net cash provided by (used in) financing
activities
89
(151
)
Effect of exchange rate changes on cash
and cash equivalents
(22
)
14
Net change in cash and cash
equivalents
5
(12
)
Cash and cash equivalents, beginning of
period
122
171
Cash and cash equivalents, end of
period
$
127
$
159
Exhibit A - First Quarter Sales
Henry Schein, Inc.
2025 First Quarter
Sales Summary
(in millions)
(unaudited)
Q1 2025
over Q1 2024
Constant Currency
Growth
Q1 2025
Q1 2024
Local Internal Growth
Acquisition Growth
Total Constant Currency
Growth
Foreign Exchange
Impact
Total Sales Growth
U.S. Distribution
and Value-Added Services
Merchandise
$
591
$
592
-0.2
%
0.0
%
-0.2
%
0.0
%
-0.2
%
Equipment
187
205
-8.9
%
0.0
%
-8.9
%
0.0
%
-8.9
%
Value-Added Services
45
52
-15.7
%
2.3
%
-13.4
%
0.0
%
-13.4
%
Total Dental
823
849
-3.3
%
0.2
%
-3.1
%
0.0
%
-3.1
%
Medical
1,030
998
2.0
%
1.2
%
3.2
%
0.0
%
3.2
%
Total U.S. Distribution and Value-Added
Services
1,853
1,847
-0.4
%
0.7
%
0.3
%
0.0
%
0.3
%
International
Distribution and Value-Added Services
Merchandise
594
618
0.2
%
0.9
%
1.1
%
-5.0
%
-3.9
%
Equipment
197
197
2.9
%
1.4
%
4.3
%
-4.2
%
0.1
%
Value-Added Services
7
4
1.3
%
69.8
%
71.1
%
-12.4
%
58.7
%
Total Dental
798
819
0.8
%
1.4
%
2.2
%
-4.8
%
-2.6
%
Medical
25
27
-4.1
%
0.0
%
-4.1
%
-3.5
%
-7.6
%
Total International Distribution and
Value-Added Services
823
846
0.7
%
1.3
%
2.0
%
-4.8
%
-2.8
%
Global
Distribution and Value-Added Services
Global Merchandise
1,185
1,210
0.0
%
0.4
%
0.4
%
-2.5
%
-2.1
%
Global Equipment
384
402
-3.2
%
0.8
%
-2.4
%
-2.1
%
-4.5
%
Global Value-Added Services
52
56
-14.4
%
7.2
%
-7.2
%
-0.9
%
-8.1
%
Global Dental
1,621
1,668
-1.3
%
0.8
%
-0.5
%
-2.4
%
-2.9
%
Global Medical
1,055
1,025
1.8
%
1.2
%
3.0
%
-0.1
%
2.9
%
Total Global Distribution and
Value-Added Services
2,676
2,693
-0.1
%
0.9
%
0.8
%
-1.5
%
-0.7
%
Global Specialty Products
367
360
0.3
%
4.0
%
4.3
%
-2.3
%
2.0
%
Global Technology
162
157
3.4
%
0.0
%
3.4
%
-0.5
%
2.9
%
Eliminations
(37
)
(38
)
n/a
n/a
n/a
n/a
n/a
Total Global
$
3,168
$
3,172
0.2
%
1.2
%
1.4
%
-1.5
%
-0.1
%
Note: Prior period amounts have been
reclassified to conform to the current period presentation.
Exhibit B
Henry Schein, Inc.
2025 First Quarter
Reconciliation of reported
GAAP net income and diluted EPS attributable to Henry Schein,
Inc.
to non-GAAP net income and
diluted EPS attributable to Henry Schein, Inc.
(in millions, except per share
data)
(unaudited)
First Quarter
%
2025
2024
Growth
Net income attributable to Henry
Schein, Inc.
$
110
$
93
17.7
%
Diluted EPS attributable to Henry
Schein, Inc.
$
0.88
$
0.72
22.2
%
Non-GAAP Adjustments, net of tax and
attribution to noncontrolling interests
Restructuring costs (1)
$
17
$
7
Acquisition intangible amortization
(2)
27
28
Cyber incident-insurance proceeds, net of
third-party advisory expenses (3)
(15
)
4
Change in contingent consideration (4)
(2
)
11
Costs associated with shareholder advisory
matters (5)
6
-
Non-GAAP adjustments to net
income
$
33
$
50
Non-GAAP adjustments to diluted
EPS
$
0.27
$
0.38
Non-GAAP net income attributable to
Henry Schein, Inc.
$
143
$
143
0.5
%
Non-GAAP diluted EPS attributable to
Henry Schein, Inc.
$
1.15
$
1.10
4.5
%
Management believes that non-GAAP
financial measures provide investors with useful supplemental
information about the financial performance of our business, enable
comparison of financial results between periods where certain items
may vary independent of business performance and allow for greater
transparency with respect to key metrics used by management in
operating our business. These non-GAAP financial measures are
presented solely for informational and comparative purposes and
should not be regarded as a replacement for corresponding,
similarly captioned, GAAP measures. Net income growth rates are
based on actual values and may not recalculate due to rounding.
Amounts may not sum due to rounding.
(1)
Restructuring
Costs
The following table presents details of
our restructuring costs:
First Quarter
2025
2024
Restructuring costs - pre-tax, as
reported
$
25
$
10
Income tax benefit
(7
)
(3
)
Amount attributable to noncontrolling
interests
(1
)
-
Restructuring costs, net
$
17
$
7
(2)
Acquisition
Intangible Amortization
The following table presents details of
amortization of acquired intangible assets:
First Quarter
2025
2024
Acquisition intangible amortization -
pre-tax, as reported
$
43
$
46
Income tax benefit
(10
)
(11
)
Amount attributable to noncontrolling
interests
(6
)
(7
)
Acquisition intangible amortization,
net
$
27
$
28
(3)
Represents cyber insurance proceeds, net
of one time professional and other fees related to remediation of
our Q4 2023 cyber incident. During Q1 2025, we received insurance
proceeds of $20 million ($15 million, net of taxes) under this
policy representing the remaining insurance recovery of losses
related to the cyber incident.
(4)
Represents a change in the fair value of
contingent consideration of $2 million ($2 million, net of taxes)
and $15 million ($11 million, net of taxes) recorded during Q1 2025
and Q1 2024, respectively, related to our acquisitions.
(5)
Represents costs associated with
shareholder advisory matters of $8 million ($6 million, net of
taxes) recorded during Q1 2025.
Exhibit C
Henry Schein, Inc.
2025 First Quarter
Reconciliation of reported
GAAP net income to Adjusted EBITDA
(in millions)
(unaudited)
First Quarter
2025
2024
Net income attributable to Henry
Schein, Inc. (GAAP)
$
110
$
93
Income attributable to noncontrolling
interests
3
5
Net income (GAAP)
113
98
Definitional adjustments:
Interest income
(6
)
(5
)
Interest expense
35
30
Income taxes
35
32
Depreciation and amortization
73
73
Non-GAAP adjustments:
Restructuring costs
25
10
Cyber incident-insurance proceeds, net of
third-party advisory expenses
(20
)
5
Impairment of intangible assets
1
-
Change in contingent consideration
(2
)
15
Costs associated with shareholder advisory
matters
8
-
Other adjustments:
Equity in earnings of affiliates, net of
tax
(3
)
(3
)
Adjusted EBITDA (non-GAAP)
$
259
$
255
Adjusted EBITDA is a non-GAAP measure that
we calculate in the manner reflected on Exhibit C. We define
Adjusted EBITDA as net income, excluding (i) net income
attributable to noncontrolling interests, (ii) interest income and
expense, (iii) income taxes, (iv) depreciation and amortization,
(v) restructuring costs, (vi) cyber incident-insurance proceeds,
net of third-party advisory expenses, (vii) impairment of
intangible assets, (viii) change in contingent consideration, (ix)
costs associated with shareholder advisory matters, and (x) equity
in earnings of affiliates, net of tax. Amounts may not sum due to
rounding.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250502630706/en/
Investors Ronald N. South Senior
Vice President and Chief Financial Officer
ronald.south@henryschein.com (631) 843-5500
Graham Stanley Vice President, Investor Relations and Strategic
Financial Project Officer graham.stanley@henryschein.com (631)
843-5500
Media Tim Vassilakos Executive
Director, Global Corporate Communications
timothy.vassilakos@henryschein.com (516)-510-0926
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