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    Henry Schein Inc (HSIC)

    Board Change
    New Share Buyback Program

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    Business Description

    Henry Schein, Inc. is a global company that operates in the health care distribution and technology sectors, providing a wide range of products and services to dental and medical professionals . The company distributes consumable products, dental specialty items, medical equipment, pharmaceuticals, and personal protective equipment, among other health care products . Additionally, Henry Schein offers technology and value-added services, including practice management software and consultancy services, to enhance the efficiency and effectiveness of health care practices .

    1. Health Care Distribution - Distributes a comprehensive range of products including consumables, dental specialty products, medical equipment, pharmaceuticals, vaccines, surgical products, diagnostic tests, infection-control products, PPE, vitamins, and orthopedic implants .

      • Dental Specialty Products - Offers implants, orthodontics, and endodontics products to dental practitioners and institutions .
      • Medical Equipment and Supplies - Provides small and large equipment, equipment repair services, and branded and generic pharmaceuticals to medical facilities .

    2. Technology and Value-Added Services - Provides software and technology solutions, including practice management systems, consultancy, education, revenue cycle management, financial services, e-services, and continuing education services to health care practitioners .

    3. Corporate Brand Portfolio - Markets and sells a range of cost-effective, high-quality consumable merchandise products, including in vitro diagnostic devices, and manufactures certain dental specialty products .

    Key Metrics

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    Executive Team

    NamePositionStart DateShort Bio
    Stanley M. BergmanChairman, Chief Executive Officer, Director1980Stanley M. Bergman has been with Henry Schein, Inc. since 1980, serving as Chairman and CEO since 1989 and as a director since 1982. Under his leadership, the company has grown significantly, with sales increasing from approximately $600 million in 1995 to about $12.3 billion in 2023 .
    James P. BreslawskiVice Chairman, President, Director1980James P. Breslawski has been with Henry Schein, Inc. since 1980. He has served as Vice Chairman since 2018, President since 2005, and as a director since 1992. He previously held the position of CEO of the Henry Schein Global Dental Group from 2005 to 2018 .
    Brad ConnettChief Executive Officer, North America Distribution Group1997Brad Connett has been with Henry Schein since 1997 and currently serves as the CEO of the North America Distribution Group since 2021. He was previously President of the U.S. Medical Group from 2019 through September 2021 .
    Michael S. EttingerExecutive Vice President, Chief Operating Officer1994Michael S. Ettinger has been with Henry Schein, Inc. since 1994. He has served as the Executive Vice President and COO since July 1, 2022. He oversees various corporate functions and is a member of the board of directors of the Henry Schein Cares Foundation, Inc. .
    Lorelei McGlynnSenior Vice President, Chief Human Resources Officer1999Lorelei McGlynn has been with Henry Schein, Inc. since 1999. She has served as the Senior Vice President, Chief Human Resources Officer since 2013, leading the company's global HR strategy and programs .
    Mark E. MlotekExecutive Vice President, Chief Strategic Officer, Director1994Mark E. Mlotek has been with Henry Schein, Inc. since 1994. He has served as the Executive Vice President and Chief Strategic Officer since 2012 and has been a director since 1995 .
    Walter SiegelSenior Vice President, Chief Legal Officer2013Walter Siegel has been with Henry Schein, Inc. since 2013 and has served as the Senior Vice President and Chief Legal Officer since 2021. He is responsible for the company's worldwide legal, compliance, and regulatory functions .
    Ronald N. SouthSenior Vice President, Chief Financial Officer2008Ronald N. South has been with Henry Schein, Inc. since 2008. He has served as the Senior Vice President and CFO since April 2022. He was previously the Vice President of Corporate Finance and Chief Accounting Officer .
    Andrea AlbertiniChief Executive Officer, International Distribution Group2013Andrea Albertini has been with Henry Schein, Inc. since 2013. He currently serves as the CEO of the International Distribution Group since February 2023. He previously held several key positions within the company .
    Leigh BenowitzSenior Vice President, Chief Global Digital Transformation Officer2017Leigh Benowitz has been with Henry Schein, Inc. since 2017 and has served as the Senior Vice President and Chief Global Digital Transformation Officer since August 2022. She leads the Global eCommerce Transformation Organization .
    Trinh ClarkSenior Vice President, Chief Global Customer Experience Officer2007Trinh Clark has been with Henry Schein, Inc. since 2007 and currently serves as the Senior Vice President and Chief Global Customer Experience Officer since August 2022. She focuses on delivering an exceptional customer experience .
    James MullinsSenior Vice President, Global Supply Chain1988James Mullins has been with Henry Schein, Inc. since 1988 and has served as the Senior Vice President, Global Supply Chain since 2018. He leads the global supply chain and U.S. customer service functions .
    Kelly MurphySenior Vice President, General Counsel2011Kelly Murphy has been with Henry Schein, Inc. since 2011 and has served as the Senior Vice President and General Counsel since 2021. She is responsible for the company's legal activities related to mergers and acquisitions globally .
    Christopher PendergastSenior Vice President, Chief Technology Officer2018Christopher Pendergast has been with Henry Schein, Inc. since 2018 as Senior Vice President and Chief Technology Officer. He brings over 30 years of experience in leading large-scale global IT organizations .
    René Willi, Ph.D.Chief Executive Officer, Global Oral Reconstruction Group2013René Willi, Ph.D., has been with Henry Schein, Inc. since 2013 and currently serves as the CEO of the Global Oral Reconstruction Group since 2021. He was previously the President of the Global Dental Surgical Group .

    Questions to Ask Management

    1. Given the restructuring savings target of $75 million to $100 million by the end of 2025, what specific risks could hinder achieving these savings, and how confident are you in realizing operating margin expansion next year?
    2. With a shift towards lower-priced alternative and owned-brand dental products impacting sales but maintaining profitability, how do you plan to drive top-line growth while preserving margins amid increased competition from second-tier manufacturers?
    3. After losing customers to drug wholesalers due to last year's cyber incident, what specific strategies are you employing to regain market share in the medical distribution business, and how will you differentiate your services to prevent further customer attrition?
    4. Despite increasing your non-GAAP EPS guidance for 2024, you have lowered your total sales growth guidance; what factors are causing this divergence, and how sustainable is your EPS growth given the reduced sales outlook?
    5. Considering your significant investments in the global e-commerce platform leading to higher depreciation expenses, how confident are you that these investments will generate the anticipated growth to offset increased costs, especially with the planned U.S. launch next year?

    Share Repurchase Program

    Program DetailsProgram 1
    Approval DateMarch 3, 2003
    End Date/DurationOngoing
    Total Additional Amount$5.5 billion
    Remaining Authorization$455 million
    DetailsLatest authorization of $500 million on July 31, 2024

    Debt Maturity Schedule

    YearAmount Due (millions)Debt TypeInterest Rate (%)% of Total Debt
    202450Private Placement Facility3.001.9% = (50 / 2,653) * 100
    2024109Current Maturities of LT DebtVarious (0.00-9.42)4.1% = (109 / 2,653) * 100
    2024638Bank Credit LinesN/A24.1% = (638 / 2,653) * 100
    2026722Term Loan6.0427.2% = (722 / 2,653) * 100
    2027100Private Placement Facility3.423.8% = (100 / 2,653) * 100
    2028100Private Placement Facility3.323.8% = (100 / 2,653) * 100
    202875Private Placement Facility4.792.8% = (75 / 2,653) * 100
    2029100Private Placement Facility3.523.8% = (100 / 2,653) * 100
    2030100Private Placement Facility2.353.8% = (100 / 2,653) * 100
    203075Private Placement Facility4.842.8% = (75 / 2,653) * 100
    2031100Private Placement Facility2.483.8% = (100 / 2,653) * 100
    2033100Private Placement Facility2.583.8% = (100 / 2,653) * 100
    203375Private Placement Facility4.962.8% = (75 / 2,653) * 100
    2033150Private Placement Facility4.945.7% = (150 / 2,653) * 100

    Competitors

    Competitors mentioned in the company's latest 10K filing.

    • Patterson Dental division of Patterson Companies, Inc. - Primary competitor in the U.S. dental market .
    • Benco Dental Supply Company - Competitor in the U.S. dental market .
    • McKesson Corporation - Primary competitor in the U.S. medical market .
    • Medline Industries, Inc. - Primary competitor in the U.S. medical market .
    • Carestream Health, Inc. - Competitor in dental software .
    • Carestream Dental LLC - Competitor in dental software .
    • Centaur Software Development Co Pty Ltd. (d.b.a. dental4windows, dental4web) - Competitor in dental software .
    • Open Dental Software, Inc. - Competitor in dental software .
    • PlanetDDS LLC - Competitor in dental software .
    • Good Methods Global Inc. (d.b.a. CareStack) - Competitor in dental software .
    • Curve Dental, LLC - Competitor in dental software .
    • Vyne Therapeutics Inc. - Competitor in revenue cycle management, patient relationship management, and patient demand generation software .
    • EDI-Health Group, Inc. (d.b.a. Dental X Change, Inc.) - Competitor in revenue cycle management, patient relationship management, and patient demand generation software .
    • Weave Communications, Inc. - Competitor in revenue cycle management, patient relationship management, and patient demand generation software .
    • Solutionreach, Inc. - Competitor in revenue cycle management, patient relationship management, and patient demand generation software .
    • NextGen division of Quality Systems, Inc. - Competitor in medical practice management and electronic medical records .
    • eClinicalWorks - Competitor in medical practice management and electronic medical records .
    • Allscripts Healthcare Solutions, Inc. - Competitor in medical practice management and electronic medical records .
    • Epic Systems Corporation - Competitor in medical practice management and electronic medical records .
    • GACD Group - Competitor in international dental and medical product distribution .
    • Proclinic SA - Competitor in international dental and medical product distribution .
    • Lifco AB - Competitor in international dental and medical product distribution .
    • Planmeca Oy - Competitor in international dental and medical product distribution .
    • Billericay Dental Supply Co. Ltd. - Competitor in international dental and medical product distribution .

    Auditor

    NameStart DateEnd DateReason for Change
    BDO USA, P.C.1984 PresentCurrent auditor

    Latest news

    Recent developments and announcements about HSIC.

    Corporate Leadership

      Leadership Change

      ·
      6 days ago

      Who is leaving: No departures were mentioned in the documents.

      Who is stepping up:

      • Robert J. Hombach: Appointed as an independent director and will join the Strategic Advisory Committee.
      • Max Lin: To join the Board as Vice Chair of the Nominating and Governance Committee and a member of the Strategic Advisory Committee.
      • William K. 'Dan' Daniel: To join the Board and serve on the Compensation and Strategic Advisory Committees.

      Why: These appointments are part of a strategic partnership with KKR, which has acquired a 12% stake in Henry Schein, aiming to enhance governance and drive growth.

      Board Change

      ·
      6 days ago

      Henry Schein, Inc. (HSIC) has announced changes to its Board of Directors as of January 29, 2025:

      • Max Lin and William K. 'Dan' Daniel will join the Board as independent directors, representing KKR, following a strategic investment by KKR. Mr. Lin will serve as Vice Chair of the Nominating and Governance Committee and join the Strategic Advisory Committee. Mr. Daniel will join the Compensation and Strategic Advisory Committees.
      • Robert J. Hombach has also been appointed as an independent director. He will join the Strategic Advisory Committee and brings extensive financial and strategic experience in healthcare.

    Legal & Compliance

      Legal Proceedings

      ·
      6 days ago

      Summary of the Legal Matter Involving Henry Schein, Inc. (HSIC):

      Key Parties Involved:

      • Henry Schein, Inc. (HSIC): A global provider of healthcare solutions for dental and medical practitioners.
      • KKR Hawaii Aggregator L.P.: A Delaware-based investment firm affiliated with KKR, a leading global investment company.

      Nature of the Proceedings:

      • On January 29, 2025, Henry Schein entered into a Strategic Partnership Agreement with KKR Hawaii Aggregator L.P. This agreement includes a $250 million investment by KKR in Henry Schein's common stock, making KKR a 12% shareholder with the potential to increase its stake to 14.9% through open market purchases.
      • The agreement also involves the appointment of two KKR representatives, Max Lin and William K. "Dan" Daniel, to Henry Schein's Board of Directors. These appointments are subject to regulatory conditions and specific ownership thresholds.

      Potential Financial and Operational Consequences:

      1. Financial Impact:

        • KKR's investment demonstrates confidence in Henry Schein's management and strategic direction. The company has also increased its share repurchase program authorization by $500 million.
        • Preliminary unaudited financial results for 2024 show revenue of $12.7 billion and non-GAAP net income of $605 million. For 2025, Henry Schein projects low to mid-single-digit growth in revenue and non-GAAP earnings per share.

      2. Operational Impact:

        • The collaboration with KKR is expected to focus on strategic growth, operational excellence, and capital allocation. KKR's representatives will contribute to governance and strategic planning through their roles on the Board's committees.
        • The Board will temporarily expand to 16 members but will reduce to 14 after the 2025 Annual Meeting, aligning with governance adjustments.

      3. Regulatory and Compliance Considerations:

        • The transaction is subject to customary closing conditions, including regulatory approvals under the Hart-Scott-Rodino Act and foreign regulations.

      Conclusion: This strategic partnership positions Henry Schein for enhanced shareholder value and operational growth, leveraging KKR's expertise and financial backing. The collaboration is expected to drive the company's next phase of growth while maintaining a focus on governance and strategic initiatives.

      Citations: , , , ,

    Financial Actions

      New Share Buyback Program

      ·
      6 days ago

      Henry Schein, Inc. (HSIC) has announced an increase of $500 million to its stock repurchase program, with $250 million allocated for accelerated share repurchases.

    Financial Reporting

      Earnings Report

      ·
      6 days ago

      Henry Schein, Inc. (HSIC) Earnings Update

      Henry Schein, Inc. has announced that it will release its fourth-quarter and full-year 2024 financial results on Tuesday, February 25, 2025, before the stock market opens. A live webcast of the earnings conference call will also be held on the same day at 8:00 a.m. Eastern Time.

      Key Preliminary Financial Highlights for 2024:

      • Fourth Quarter Revenue: $3.2 billion.
      • Full-Year Revenue: $12.7 billion.
      • GAAP Net Income: $94 million for Q4, $390 million for the full year.
      • Non-GAAP Net Income: $149 million for Q4, $605 million for the full year.
      • Adjusted EBITDA: $270 million for Q4, $1,061 million for the full year.
      • Operating Cash Flow: $204 million for Q4, $848 million for the full year.

      2025 Financial Guidance:

      • Revenue Growth: Expected to grow in the low to mid-single digits compared to 2024.
      • Non-GAAP EPS Growth: Also projected to grow in the low to mid-single digits.
      • Adjusted EBITDA Growth: Anticipated to grow in the mid-single digits.

      Additional Updates:

      • The company has increased its share repurchase program authorization by $500 million, with $250 million to be executed through accelerated share repurchases.

      Stay tuned for the detailed earnings report and conference call on February 25, 2025, for further insights into the company's performance and strategic direction.

      Sources: ,