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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 .
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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 .
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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 .
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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 .
- 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?
- 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?
- 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?
- 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?
- 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?
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 .
Recent developments and announcements about HSIC.
Corporate Leadership
- 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.
- 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.
Leadership Change
Who is leaving: No departures were mentioned in the documents.
Who is stepping up:
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
Henry Schein, Inc. (HSIC) has announced changes to its Board of Directors as of January 29, 2025:
Legal & Compliance
- 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.
- 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.
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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.
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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.
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Regulatory and Compliance Considerations:
- The transaction is subject to customary closing conditions, including regulatory approvals under the Hart-Scott-Rodino Act and foreign regulations.
Legal Proceedings
Summary of the Legal Matter Involving Henry Schein, Inc. (HSIC):
Key Parties Involved:
Nature of the Proceedings:
Potential Financial and Operational Consequences:
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.
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Financial Actions
New Share Buyback Program
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
- 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.
- 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.
- The company has increased its share repurchase program authorization by $500 million, with $250 million to be executed through accelerated share repurchases.
Earnings Report
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:
2025 Financial Guidance:
Additional Updates:
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.
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