Total Revenue [USD, Millions]

Cost of Goods Sold (COGS) [USD, Millions]

SG&A [USD, Millions]

R&D [USD, Millions]

D&A [USD, Millions]

Interest Expense [USD, Millions]

Operating Income (EBIT) [USD, Millions]

Net Income [USD, Millions]

EPS - Basic [USD]

EPS - Diluted [USD]

e395df1464eaaad7c7fe386848bdcf196da9f1b3bdad7b3418f66aed7683cf03

Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Proceeds from / Repayments of Debt [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

e23f75c07f9fca37884a65c511f75e1f1109288b28c4e4ec7cdac97e19bfff50

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 **[0001000228-24-000025_hsic-20240330.htm:31]** **[0001000228-24-000011_form10k20231230.htm:18]** **[0001000228-24-000011_form10k20231230.htm:106]**. The company distributes consumable products, dental specialty items, medical equipment, pharmaceuticals, and personal protective equipment, among other health care products **[0001000228-24-000025_hsic-20240330.htm:31]** **[0001000228-24-000011_form10k20231230.htm:18]** **[0001000228-24-000011_form10k20231230.htm:106]**. 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 **[0001000228-24-000025_hsic-20240330.htm:31]** **[0001000228-24-000011_form10k20231230.htm:18]** **[0001000228-24-000011_form10k20231230.htm:106]**.

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 **[0001000228-24-000025_hsic-20240330.htm:31]** **[0001000228-24-000011_form10k20231230.htm:18]** **[0001000228-24-000011_form10k20231230.htm:106]**.
   - **Dental Specialty Products** - Offers implants, orthodontics, and endodontics products to dental practitioners and institutions **[0001000228-24-000025_hsic-20240330.htm:31]** **[0001000228-24-000011_form10k20231230.htm:18]** **[0001000228-24-000011_form10k20231230.htm:106]**.
   - **Medical Equipment and Supplies** - Provides small and large equipment, equipment repair services, and branded and generic pharmaceuticals to medical facilities **[0001000228-24-000025_hsic-20240330.htm:31]** **[0001000228-24-000011_form10k20231230.htm:18]** **[0001000228-24-000011_form10k20231230.htm:106]**.

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 **[0001000228-24-000025_hsic-20240330.htm:31]** **[0001000228-24-000011_form10k20231230.htm:18]** **[0001000228-24-000011_form10k20231230.htm:106]**.

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 **[0001000228-24-000025_hsic-20240330.htm:31]** **[0001000228-24-000011_form10k20231230.htm:18]** **[0001000228-24-000011_form10k20231230.htm:106]**.

b497a375fb4ab22f49b60c409d15cc298185288f0ab185d4974de8ee315fa539

| Metric (in millions USD) | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|--------------------------|---------|---------|---------|---------|---------|---------|---------|
| Dental Revenue           | **$1,898**  **[0001000228-23-000026_hsic-20230401.htm:12]**  | **$1,957**  **[0001000228-23-000043_hsic-20230701.htm:13]**  | **$1,882**  **[0001000228-23-000052_hsic-20230930.htm:14]**  | N/A     | **$1,914**  **[0001000228-24-000025_hsic-20240330.htm:15]**  | **$1,924**  **[0001000228-24-000054_hsic-20240629.htm:16]**  | **$1,852**  **[0001000228-24-000064_hsic-20240928.htm:15]**  |
| Medical Revenue          | **$971**  **[0001000228-23-000026_hsic-20230401.htm:12]**   | **$950**  **[0001000228-23-000043_hsic-20230701.htm:13]**   | **$1,070**  **[0001000228-23-000052_hsic-20230930.htm:14]**  | N/A     | **$1,041**  **[0001000228-24-000025_hsic-20240330.htm:15]**  | **$998**  **[0001000228-24-000054_hsic-20240629.htm:16]**   | **$1,101**  **[0001000228-24-000064_hsic-20240928.htm:15]**  |
| Total Health Care Distribution Revenue | **$2,869**  **[0001000228-23-000026_hsic-20230401.htm:12]**  | **$2,907**  **[0001000228-23-000043_hsic-20230701.htm:13]**  | **$2,952**  **[0001000228-23-000052_hsic-20230930.htm:14]**  | N/A     | **$2,955**  **[0001000228-24-000025_hsic-20240330.htm:15]**  | **$2,922**  **[0001000228-24-000054_hsic-20240629.htm:16]**  | **$2,953**  **[0001000228-24-000064_hsic-20240928.htm:15]**  |
| Technology and Value-Added Services Revenue | **$191**  **[0001000228-23-000026_hsic-20230401.htm:12]**   | **$193**  **[0001000228-23-000043_hsic-20230701.htm:13]**   | **$210**  **[0001000228-23-000052_hsic-20230930.htm:14]**   | N/A     | **$217**  **[0001000228-24-000025_hsic-20240330.htm:15]**   | **$214**  **[0001000228-24-000054_hsic-20240629.htm:16]**   | **$221**  **[0001000228-24-000064_hsic-20240928.htm:15]**   |
| Total Net Sales          | **$3,060**  **[0001000228-23-000026_hsic-20230401.htm:12]**  | **$3,100**  **[0001000228-23-000043_hsic-20230701.htm:13]**  | **$3,162**  **[0001000228-23-000052_hsic-20230930.htm:14]**  | N/A     | **$3,172**  **[0001000228-24-000025_hsic-20240330.htm:15]**  | **$3,136**  **[0001000228-24-000054_hsic-20240629.htm:16]**  | **$3,174**  **[0001000228-24-000064_hsic-20240928.htm:15]**  |

7703e933402bc268f67fc9d7bbcac2e32dc0b4d34d276d57dd27c64b799e3798

| Metric (in million USD) | Q1 2022 | Q2 2023 | Q3 2023 | Q1 2023 | Q2 2024 | Q3 2024 | Q4 2023 | Q4 2022 |
|-------------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| North America Revenue   | 2,411  **[0001000228-23-000026_hsic-20230401.htm:11]**  | 2,262  **[0001000228-23-000043_hsic-20230701.htm:12]**  | 2,363  **[0001000228-23-000052_hsic-20230930.htm:13]**  | 2,261  **[0001000228-23-000026_hsic-20230401.htm:11]**  | 2,285  **[0001000228-24-000054_hsic-20240629.htm:15]**  | 2,355  **[0001000228-24-000064_hsic-20240928.htm:14]**  | N/A | N/A |
| International Revenue   | 768  **[0001000228-23-000026_hsic-20230401.htm:11]**    | 838  **[0001000228-23-000043_hsic-20230701.htm:12]**    | 799  **[0001000228-23-000052_hsic-20230930.htm:13]**    | 799  **[0001000228-23-000026_hsic-20230401.htm:11]**    | 851  **[0001000228-24-000054_hsic-20240629.htm:15]**    | 819  **[0001000228-24-000064_hsic-20240928.htm:14]**    | N/A | N/A |
| Global Total Revenue    | 3,179  **[0001000228-23-000026_hsic-20230401.htm:11]**  | 3,100  **[0001000228-23-000043_hsic-20230701.htm:12]**  | 3,162  **[0001000228-23-000052_hsic-20230930.htm:13]**  | 3,060  **[0001000228-23-000026_hsic-20230401.htm:11]**  | 3,136  **[0001000228-24-000054_hsic-20240629.htm:15]**  | 3,174  **[0001000228-24-000064_hsic-20240928.htm:14]**  | N/A | N/A |

e97be0bfee6a82c5e525f92a32ba382d77d3a37b7938e71781e726b1076a3182

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?

26de9ea2fd17a516b2784aaa1cb2d39067e4753db429161e1cc91035474a2867

Health Care Distribution

- Dental

- Animal Health

- Medical

Technology and Value-Added Services

Corporate TSA Revenues

Total Revenue

499b4aad713a4bffd2114e8458263869f4f96f75fa488dd9f5179701f0d4307b

North America

International

United States

Other

5e20f770a3c4cb7e4dce1721023e709ee29ebd917fe17bfdd73e49c1ecd5bfb5

- **Patterson Dental division of Patterson Companies, Inc.** - Primary competitor in the U.S. dental market  **[0001000228-24-000011_form10k20231230.htm:20]** .
- **Benco Dental Supply Company** - Competitor in the U.S. dental market  **[0001000228-24-000011_form10k20231230.htm:20]** .
- **McKesson Corporation** - Primary competitor in the U.S. medical market  **[0001000228-24-000011_form10k20231230.htm:20]** .
- **Medline Industries, Inc.** - Primary competitor in the U.S. medical market  **[0001000228-24-000011_form10k20231230.htm:20]** .
- **Carestream Health, Inc.** - Competitor in dental software  **[0001000228-24-000011_form10k20231230.htm:20]** .
- **Carestream Dental LLC** - Competitor in dental software  **[0001000228-24-000011_form10k20231230.htm:20]** .
- **Centaur Software Development Co Pty Ltd. (d.b.a. dental4windows, dental4web)** - Competitor in dental software  **[0001000228-24-000011_form10k20231230.htm:20]** .
- **Open Dental Software, Inc.** - Competitor in dental software  **[0001000228-24-000011_form10k20231230.htm:20]** .
- **PlanetDDS LLC** - Competitor in dental software  **[0001000228-24-000011_form10k20231230.htm:20]** .
- **Good Methods Global Inc. (d.b.a. CareStack)** - Competitor in dental software  **[0001000228-24-000011_form10k20231230.htm:20]** .
- **Curve Dental, LLC** - Competitor in dental software  **[0001000228-24-000011_form10k20231230.htm:20]** .
- **Vyne Therapeutics Inc.** - Competitor in revenue cycle management, patient relationship management, and patient demand generation software  **[0001000228-24-000011_form10k20231230.htm:20]** .
- **EDI-Health Group, Inc. (d.b.a. Dental X Change, Inc.)** - Competitor in revenue cycle management, patient relationship management, and patient demand generation software  **[0001000228-24-000011_form10k20231230.htm:20]** .
- **Weave Communications, Inc.** - Competitor in revenue cycle management, patient relationship management, and patient demand generation software  **[0001000228-24-000011_form10k20231230.htm:20]** .
- **Solutionreach, Inc.** - Competitor in revenue cycle management, patient relationship management, and patient demand generation software  **[0001000228-24-000011_form10k20231230.htm:20]** .
- **NextGen division of Quality Systems, Inc.** - Competitor in medical practice management and electronic medical records  **[0001000228-24-000011_form10k20231230.htm:20]** .
- **eClinicalWorks** - Competitor in medical practice management and electronic medical records  **[0001000228-24-000011_form10k20231230.htm:20]** .
- **Allscripts Healthcare Solutions, Inc.** - Competitor in medical practice management and electronic medical records  **[0001000228-24-000011_form10k20231230.htm:20]** .
- **Epic Systems Corporation** - Competitor in medical practice management and electronic medical records  **[0001000228-24-000011_form10k20231230.htm:20]** .
- **GACD Group** - Competitor in international dental and medical product distribution  **[0001000228-24-000011_form10k20231230.htm:20]** .
- **Proclinic SA** - Competitor in international dental and medical product distribution  **[0001000228-24-000011_form10k20231230.htm:20]** .
- **Lifco AB** - Competitor in international dental and medical product distribution  **[0001000228-24-000011_form10k20231230.htm:20]** .
- **Planmeca Oy** - Competitor in international dental and medical product distribution  **[0001000228-24-000011_form10k20231230.htm:20]** .
- **Billericay Dental Supply Co. Ltd.** - Competitor in international dental and medical product distribution  **[0001000228-24-000011_form10k20231230.htm:20]** .

a594f15ca1215dedb80f1c0f3a283dfe9f8608704d0edda4eecf353dc2722817

688f2b03e8ff7bfdc10fe9aca2b6bc1e3fbadbeea33a4c47bf77c853d48ab915

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Total Sales Growth**: Expected to be **4% to 5%** over 2023  **[HSIC_3405773_5]** .
  2. **Non-GAAP Diluted EPS**: Increased to a range of **$4.74 to $4.82**, reflecting growth of 5% to 7% compared with 2023  **[HSIC_3405773_5]** .
  3. **Adjusted EBITDA**: Expected to grow in the low double-digit percentages versus 2023 adjusted EBITDA of **$984 million**  **[HSIC_3405773_5]** .
  4. **Non-GAAP Effective Tax Rate**: Estimated to be **25%**  **[HSIC_3405773_5]** .
  5. **Restructuring Savings**: Estimated to provide over **$50 million** in annual run rate savings, with a goal of **$75 million to $100 million** by the end of 2025  **[HSIC_3405773_4]** .
  6. **Share Repurchases**: Continued repurchase of shares expected, with **$455 million** authorized and available  **[HSIC_3405773_4]** .

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Total Sales Growth**: Expected to be **4% to 6%** over 2023  **[HSIC_3396605_7]** .
  2. **Non-GAAP Diluted EPS**: Expected to be in the range of **$4.70 to $4.82**, reflecting growth of **4% to 7%**  **[HSIC_3396605_7]** .
  3. **Adjusted EBITDA Growth**: Expected to grow in the low double-digit percentages versus 2023  **[HSIC_3396605_7]** .
  4. **Non-GAAP Effective Tax Rate**: Estimated to be **25%**  **[HSIC_3396605_7]** .
  5. **Operating Income Contribution**: Specialties products, technology, and value-added services expected to contribute more than **40%** of total non-GAAP operating income  **[HSIC_3396605_7]** .
  6. **Stock Repurchase**: An additional **$500 million** authorized, with expectations to repurchase approximately **$175 million** in shares  **[HSIC_3396605_6]** .
  7. **Restructuring Plan Savings**: Targeting between **$75 million to $100 million** in annual savings  **[HSIC_3396605_1]** .

### Q1 2024 Earnings Call
- **Issued Period**: Q1 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Non-GAAP Diluted EPS**: Expected to be in the range of **$5 to $5.16**, reflecting growth of **11% to 15%**  **[HSIC_3386779_5]** .
  2. **Adjusted EBITDA Growth**: Expected to increase by more than **15%**  **[HSIC_3386779_5]** .
  3. **Total Sales Growth**: Expected to be **8% to 10%** over 2023  **[HSIC_3386779_5]** .
  4. **Cyber Incident Impact**: Guidance excludes potential insurance claim proceeds related to a cyber incident  **[HSIC_3386779_5]** .
  5. **Market Conditions**: Assumes consistent foreign currency exchange rates and market conditions  **[HSIC_3386779_6]** .

### Q4 2023 Earnings Call
- **Issued Period**: Q4 2023
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Non-GAAP Diluted EPS**: Expected to be in the range of **$5 to $5.16**, reflecting growth of **11% to 15%**  **[HSIC_3375216_6]** .
  2. **Total Sales Growth**: Expected to be **8% to 12%** over 2023  **[HSIC_3375216_6]** .
  3. **Adjusted EBITDA Growth**: Expected to increase by more than **15%**  **[HSIC_3375216_6]** .
  4. **Market Growth Rates**: Expected to be at the lower end of long-term assumptions  **[HSIC_3375216_6]** .
  5. **Foreign Currency Exchange Rates**: Assumed to be consistent with current levels  **[HSIC_3375216_6]** .
  6. **End Markets**: Assumed to remain consistent with current conditions  **[HSIC_3375216_6]** .

These guidance metrics reflect Henry Schein's expectations for FY 2024, considering various market conditions and internal factors.

6d6517886cb9231af05db4fadf529b6b635015f9af4afe314c51b552c859f4fc

| Name                  | Position                                                      | Start Date | Short Bio                                                                                                                                                                                                                                                                                                                                                       |
|-----------------------|---------------------------------------------------------------|------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Stanley M. Bergman    | Chairman, Chief Executive Officer, Director                   | 1980       | Stanley 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  **[0001193125-24-091374_d19133ddef14a.htm:7]** **[0001193125-23-097107_d286501ddef14a.htm:7]** .                                                   |
| James P. Breslawski   | Vice Chairman, President, Director                            | 1980       | James 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**  **[0001193125-24-091374_d19133ddef14a.htm:61]** **[0001000228-24-000011_form10k20231230.htm:43]** **[0001193125-23-097107_d286501ddef14a.htm:8]** .                                                                     |
| Brad Connett          | Chief Executive Officer, North America Distribution Group     | 1997       | Brad 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**  **[0001193125-24-091374_d19133ddef14a.htm:61]** **[0001193125-23-097107_d286501ddef14a.htm:62]** .                                                                                                            |
| Michael S. Ettinger   | Executive Vice President, Chief Operating Officer             | 1994       | Michael 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.  **[0001000228-24-000011_form10k20231230.htm:43]** **[0001193125-23-097107_d286501ddef14a.htm:63]** **[0001193125-24-091374_d19133ddef14a.htm:62]** .                                                                         |
| Lorelei McGlynn       | Senior Vice President, Chief Human Resources Officer          | 1999       | Lorelei 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  **[0001193125-24-091374_d19133ddef14a.htm:62]** **[0001193125-23-097107_d286501ddef14a.htm:63]** .                                                                                                                                        |
| Mark E. Mlotek        | Executive Vice President, Chief Strategic Officer, Director   | 1994       | Mark 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**  **[0001193125-24-091374_d19133ddef14a.htm:11]** **[0001000228-24-000011_form10k20231230.htm:43]** **[0001193125-23-097107_d286501ddef14a.htm:11]** .                                                                                                                 |
| Walter Siegel         | Senior Vice President, Chief Legal Officer                    | 2013       | Walter 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  **[0001193125-24-091374_d19133ddef14a.htm:62]** **[0001000228-24-000011_form10k20231230.htm:43]** **[0001193125-23-097107_d286501ddef14a.htm:63]** .                                                                                                            |
| Ronald N. South       | Senior Vice President, Chief Financial Officer                | 2008       | Ronald 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  **[0001193125-24-091374_d19133ddef14a.htm:63]** **[0001193125-23-097107_d286501ddef14a.htm:64]** **[0001000228-24-000011_form10k20231230.htm:44]** .                                                                                                                    |
| Andrea Albertini      | Chief Executive Officer, International Distribution Group     | 2013       | Andrea 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  **[0001193125-24-091374_d19133ddef14a.htm:65]** **[0001000228-24-000011_form10k20231230.htm:44]** **[0001193125-23-097107_d286501ddef14a.htm:66]** .                                                                                                                       |
| Leigh Benowitz        | Senior Vice President, Chief Global Digital Transformation Officer | 2017       | Leigh 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  **[0001193125-24-091374_d19133ddef14a.htm:65]** **[0001000228-24-000011_form10k20231230.htm:44]** **[0001193125-23-097107_d286501ddef14a.htm:66]** .                                                                                                        |
| Trinh Clark           | Senior Vice President, Chief Global Customer Experience Officer | 2007       | Trinh 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  **[0001193125-24-091374_d19133ddef14a.htm:65]** **[0001000228-24-000011_form10k20231230.htm:44]** **[0001193125-23-097107_d286501ddef14a.htm:66]** .                                                                                                      |
| James Mullins         | Senior Vice President, Global Supply Chain                    | 1988       | James 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  **[0001193125-24-091374_d19133ddef14a.htm:65]** **[0001000228-24-000011_form10k20231230.htm:44]** **[0001193125-23-097107_d286501ddef14a.htm:66]** .                                                                                                                               |
| Kelly Murphy          | Senior Vice President, General Counsel                        | 2011       | Kelly 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  **[0001193125-24-091374_d19133ddef14a.htm:66]** **[0001193125-23-097107_d286501ddef14a.htm:67]** .                                                                                                        |
| Christopher Pendergast| Senior Vice President, Chief Technology Officer               | 2018       | Christopher 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  **[0001193125-24-091374_d19133ddef14a.htm:66]** **[0001193125-23-097107_d286501ddef14a.htm:67]** .                                                                                                                                    |
| René Willi, Ph.D.     | Chief Executive Officer, Global Oral Reconstruction Group     | 2013       | René 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  **[0001193125-24-091374_d19133ddef14a.htm:66]** **[0001193125-23-097107_d286501ddef14a.htm:67]** .                                                                                                                         |

224a933410ab0c7e0c5705d6cc03e5ae10c6d653c47a42f3ab561f88639dbce0

| Program Details          | Program 1       |
|--------------------------|-----------------|
| Approval Date            | March 3, 2003   |
| End Date/Duration        | Ongoing  **[0001000228-24-000064_hsic-20240928.htm:53]** **[0001000228-24-000064_hsic-20240928.htm:46]**   |
| Total Additional Amount  | **$5.5 billion**  **[0001000228-24-000064_hsic-20240928.htm:53]** **[0001000228-24-000064_hsic-20240928.htm:46]**  |
| Remaining Authorization  | **$455 million**  **[0001000228-24-000064_hsic-20240928.htm:53]** **[0001000228-24-000064_hsic-20240928.htm:46]**  |
| Details                  | Latest authorization of **$500 million** on July 31, 2024  **[0001000228-24-000064_hsic-20240928.htm:53]** **[0001000228-24-000064_hsic-20240928.htm:46]**  |

c9798aedd60a0fdfc35806137554de1277d0e7eaeb162fd80d4d3f0e4cdc43c4

**Annual guidance for FY 2024:**
- **Total Sales Growth**: 4% to 5%  **[HSIC_3405773_5]**  (lowered from 4% to 6%  **[HSIC_3396605_7]** )  
- **Non-GAAP Diluted EPS**: $4.74 to $4.82  **[HSIC_3405773_5]**  (raised from $4.70 to $4.82  **[HSIC_3396605_7]** )  
- **Adjusted EBITDA**: Low double-digit percentages  **[HSIC_3405773_5]**  (no change from prior guidance  **[HSIC_3396605_7]** )  
- **Non-GAAP Effective Tax Rate**: 25%  **[HSIC_3405773_5]**  (no change from prior guidance  **[HSIC_3396605_7]** )  
- **Restructuring Savings**: Over $50 million in annual run rate savings with a goal of $75 million to $100 million by the end of 2025  **[HSIC_3405773_4]**  (no change from $75 million to $100 million  **[HSIC_3396605_1]** )  
- **Share Repurchases**: $455 million authorized and available  **[HSIC_3405773_4]**  (no change from prior guidance  **[HSIC_3396605_6]** )  

a3d61f41b69afffd1649c0e83dca05837277b9dc8fb4544fac16a153bf1f79e7

1. **2025 Growth Expectations**  
   **Q:** What's the outlook for 2025 growth and margins?  
   **A:** Management anticipates improved organic growth in 2025 as the business emerges from current disruptions like the cybersecurity incident and PPE headwinds.  **[HSIC_3396605_11]**  They expect continued market share gains, especially in specialty products like implants and endodontics, and believe the fundamentals of the business remain intact.  **[HSIC_3396605_11]**  The restructuring program will contribute savings, with benefits starting in the fourth quarter of 2024 and continuing into 2025.  **[HSIC_3396605_11]** 

2. **Manufacturer Relationships**  
   **Q:** What's the status of your agreement with Dentsply Sirona?  
   **A:** Management affirmed a good relationship with Dentsply Sirona, noting they are likely Henry Schein's largest customer while Dentsply Sirona is one of their biggest global suppliers.  **[HSIC_3396605_12]**  Although not disclosing specific contract details, they emphasized mutual commitment and ongoing collaboration across multiple countries.  **[HSIC_3396605_12]** 

3. **Customer Recapture Post-Cyber Incident**  
   **Q:** Why expect customer recapture after cybersecurity incident?  
   **A:** Management is confident in recapturing customers lost after the cyber incident, citing sequential month-over-month improvement.  **[HSIC_3396605_10]**  Sales teams are re-engaging smaller accounts, and outbound calls have resumed in the last six weeks.  **[HSIC_3396605_10]**  They believe customers are receptive and expect to continue regaining market share over time.  **[HSIC_3396605_10]** 

4. **Current Business Trends**  
   **Q:** How are trends in July and Q3 so far?  
   **A:** The positive momentum from Q2 has continued into July.  **[HSIC_3396605_14]**  Distribution businesses are experiencing growth as they recapture market share.  **[HSIC_3396605_14]**  Management expects this trend to persist throughout the third quarter and into the fourth quarter as well.  **[HSIC_3396605_14]** 

5. **Shift to Private Label Brands**  
   **Q:** Is shift to private labels affecting guidance?  
   **A:** The move towards corporate brands is embedded in their guidance.  **[HSIC_3396605_16]**  Customers are more cost-conscious, opting for lower-priced options, including Henry Schein's own brands.  **[HSIC_3396605_16]**  This shift may slightly depress sales but is positive for gross profit margins.  **[HSIC_3396605_16]** 

6. **Implant Business Growth**  
   **Q:** What's the growth outlook for implants?  
   **A:** The implant business is performing well in Europe, particularly in **Germany** and **France**, where they hold strong market positions.  **[HSIC_3396605_13]**  In the U.S., growth was slower due to pending FDA approval of a new product, but approval was received in mid-June, and they expect improved performance as they launch the product.  **[HSIC_3396605_13]** 

7. **Medical Customers Ordering Elsewhere**  
   **Q:** Are large medical customers ordering away?  
   **A:** While some large customers temporarily ordered elsewhere, most have returned, including one large customer resuming pharmaceutical orders.  **[HSIC_3396605_15]**  The focus is now on re-engaging smaller practices where sales teams haven't had time to reconnect.  **[HSIC_3396605_15]**  Overall, they expect recovery in this area.  **[HSIC_3396605_15]** 

8. **EPS Guidance for Second Half**  
   **Q:** How should we think about H2 EPS guidance?  
   **A:** Management expects to maintain momentum in market share gains, with contributions from specialty and technology businesses.  **[HSIC_3396605_18]**  The guidance reflects continued growth in the second half, supported by initiatives like the new implant product launch in North America.  **[HSIC_3396605_18]** 

9b679620ed4874f43d5c92ce8128cdfe6e489ff741384dc5a6cfc3bbe4575607

1. **2025 Guidance Expectations**  
   **Q:** Should we lower 2025 revenue and EPS estimates?  
   **A:** Management suggested that current Street estimates of over **4% revenue growth** and nearly **11% EPS growth** for 2025 might be optimistic. They recommend awaiting February guidance, as market momentum and market trends will influence projections.

2. **Margin Improvement and Restructuring Savings**  
   **Q:** Will margins improve next year despite restructuring and depreciation?  
   **A:** Management expects **operating margins to improve** in 2025. They believe that restructuring savings of **$75 million to $100 million** by the end of 2025 will more than offset higher depreciation expenses.

3. **Capital Allocation in 2025**  
   **Q:** Will capital allocation in 2025 match prior years?  
   **A:** The company anticipates capital allocation in 2025 to align with historical trends, including **$300 million to $400 million** for share repurchases and similar amounts for M&A, with potential for accelerated debt reduction.

4. **Dental and Medical Market Outlook**  
   **Q:** What's driving your optimistic outlook for 2025?  
   **A:** Management foresees stable to improving dental and medical markets in 2025, driven by practitioners investing in digital technology, steady equipment sales, and potential benefits from lower interest rates.

5. **Market Share Recovery**  
   **Q:** Will market share recovery boost consumables next year?  
   **A:** The company expects continued market share recovery in distribution businesses, potentially providing tailwinds in consumables, especially in the first half of 2025.

6. **Implant Business Performance**  
   **Q:** What's behind the strong implant performance?  
   **A:** The introduction of the **tapered pro conical implant** and increased confidence among sales teams are driving strong implant sales, leading to market share gains in North America.

7. **Competitive Environment and Pricing**  
   **Q:** Are dental manufacturers becoming more competitive?  
   **A:** There's a trend of consumers opting for lower-priced alternatives, prompting manufacturers to compete more aggressively. This may impact pricing dynamics going into 2025.

8. **Medical Business Trends**  
   **Q:** How is the medical segment performing?  
   **A:** The medical business is stable, recovering from past challenges. Growth is expected in areas like home care and orthopedics, with positive trends in ambulatory surgical centers.

9. **Technology and Value-added Services**  
   **Q:** What's causing headwinds in value-added services?  
   **A:** Timing issues and a shift from on-premise sales to SaaS models are affecting reported revenues. However, the business is growing, and these effects are expected to normalize.

10. **Clear Aligner Business Restructuring**  
    **Q:** What's happening with the clear aligner business?  
    **A:** The company is transitioning from the Reveal brand to **Smilers**, consolidating offerings to leverage a better product and reduce costs, though it may take a few quarters to fully implement.

d89bcc0affc43f359c6ecf3aa434e0da56f4831aa9748e1fcb7386ae5dccfffe

| Name         | Start Date | End Date | Reason for Change |
|--------------|------------|----------|-------------------|
| BDO USA, P.C. | 1984  **[0001000228-24-000011_form10k20231230.htm:90]**    | Present  | Current auditor   |

ff9f09c00ba331518eeb627cb4c7ef30ed4f5d6cac46a69ad686a5f5e1c3409d

e4c4d79eff3a135c5f03c92b932b6f288c23b2df7bedf70133059f0775d420b0

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

cb27b296d8b7ce7f19ab56f25b91f3a09c20a32d6b3eae6c0e3f17109b3fe1c1

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b728a854240f2a15f728c4a14358292aa1bda6201fb4f05649789c208e0ed8c6

6e070e06b6c14aaf3af123a9f369815336726dbcc13c6e801dec275cb344a787

| Year | Amount Due (millions) | Debt Type               | Interest Rate (%) | % of Total Debt                                                                 |
|----------|---------------------------|-----------------------------|------------------------|------------------------------------------------------------------------------------|
| 2024     | 50                        | Private Placement Facility  | 3.00                  | 1.9% = (50 / 2,653) * 100 **[0001000228-24-000064_hsic-20240928.htm:22]** **[0001000228-24-000064_hsic-20240928.htm:21]**                                         |
| 2024     | 109                       | Current Maturities of LT Debt | Various (0.00-9.42)   | 4.1% = (109 / 2,653) * 100 **[0001000228-24-000064_hsic-20240928.htm:21]** **[0001000228-24-000064_hsic-20240928.htm:46]**                                        |
| 2024     | 638                       | Bank Credit Lines           | N/A                   | 24.1% = (638 / 2,653) * 100 **[0001000228-24-000064_hsic-20240928.htm:21]** **[0001000228-24-000064_hsic-20240928.htm:46]**                                       |
| 2026     | 722                       | Term Loan                   | 6.04                  | 27.2% = (722 / 2,653) * 100 **[0001000228-24-000064_hsic-20240928.htm:22]** **[0001000228-24-000064_hsic-20240928.htm:21]**                                       |
| 2027     | 100                       | Private Placement Facility  | 3.42                  | 3.8% = (100 / 2,653) * 100 **[0001000228-24-000064_hsic-20240928.htm:22]**                                                |
| 2028     | 100                       | Private Placement Facility  | 3.32                  | 3.8% = (100 / 2,653) * 100 **[0001000228-24-000064_hsic-20240928.htm:22]**                                                |
| 2028     | 75                        | Private Placement Facility  | 4.79                  | 2.8% = (75 / 2,653) * 100 **[0001000228-24-000064_hsic-20240928.htm:22]**                                                 |
| 2029     | 100                       | Private Placement Facility  | 3.52                  | 3.8% = (100 / 2,653) * 100 **[0001000228-24-000064_hsic-20240928.htm:22]**                                                |
| 2030     | 100                       | Private Placement Facility  | 2.35                  | 3.8% = (100 / 2,653) * 100 **[0001000228-24-000064_hsic-20240928.htm:22]**                                                |
| 2030     | 75                        | Private Placement Facility  | 4.84                  | 2.8% = (75 / 2,653) * 100 **[0001000228-24-000064_hsic-20240928.htm:22]**                                                 |
| 2031     | 100                       | Private Placement Facility  | 2.48                  | 3.8% = (100 / 2,653) * 100 **[0001000228-24-000064_hsic-20240928.htm:22]**                                                |
| 2033     | 100                       | Private Placement Facility  | 2.58                  | 3.8% = (100 / 2,653) * 100 **[0001000228-24-000064_hsic-20240928.htm:22]**                                                |
| 2033     | 75                        | Private Placement Facility  | 4.96                  | 2.8% = (75 / 2,653) * 100 **[0001000228-24-000064_hsic-20240928.htm:22]**                                                 |
| 2033     | 150                       | Private Placement Facility  | 4.94                  | 5.7% = (150 / 2,653) * 100 **[0001000228-24-000064_hsic-20240928.htm:22]**                                                |

2dab9fd1cedc70c5fc63da6bbeddca147e167bc175578ef9035b8a6fe2678da8

526103e8dd7611431857085afc7bb197cbf9545266af5569546eedd67266b404

- **Recent acquisitions are performing well, exceeding expectations, and contributing positively to growth, particularly in value-added services and dental specialties.**  **[HSIC_3386779_20]** **[HSIC_3386779_21]**
- **Record high gross margin** of nearly **32%** driven by strategic focus on **high-growth, high-margin businesses**, with stable margins in distribution expected to continue.  **[HSIC_3386779_8]**
- **Stronger sales and earnings growth anticipated in the second half of the year**, driven by recovery from the cyber incident, new product launches in implants and technology, and ongoing recovery efforts.  **[HSIC_3386779_21]** **[HSIC_3386779_22]**

aecec1f0ca6202d26e0fa345119304027243a98c75872e97e754c6703154c998

- **Henry Schein is still recovering from a cyber incident that resulted in the loss of customers to drug wholesalers in its medical business.** The company acknowledges that it "did lose some customers, specifically lost some to drug wholesalers" and needs to regain some pharmaceutical distribution business.  **[HSIC_3405773_15]**
- **There is a market shift towards lower-priced alternative brands and generic products in the dental market, which may impact Henry Schein's sales revenue and margins.** Customers are moving towards "lower-priced alternative brands and our own brands," leading to "stable to slightly reduction in dollar sales" despite units increasing in low single digits.  **[HSIC_3405773_11]** **[HSIC_3405773_6]**
- **The company's operating margin expansion in 2025 is uncertain and depends on achieving revenue growth in the distribution business, which may face challenges.** Management states that "we need to see what kind of momentum we have... before we can commit" to operating margin expansion, indicating potential risks to profitability improvement.  **[HSIC_3405773_9]**

c95b2e42939ff850721b9ec54baaf3075fdb4e3a0ff3c8eae7fc34917e88fb30

- **High interest rates are impacting demand for high-cost dental procedures**, such as $20,000 to $30,000 implants, which could negatively affect equipment sales and services.  **[HSIC_3386779_19]**
- **Pricing pressure continues in certain product categories**, notably gloves (PPE), leading to lower sales growth and margins as customers trade down from premium brands to lower-priced or private label products.  **[HSIC_3386779_14]**
- **Higher SG&A expenses due to recent acquisitions may lead to increased costs and less predictability in expenses**, potentially impacting profitability over time.  **[HSIC_3386779_17]**

cd3eb46af649dfce4a5397147f2c2b36b32d4253a83c068310c26e7053e44421

- **Henry Schein has a robust pipeline of new product innovations** across dental specialties, including implants, endodontics, orthodontics, and software solutions, which are expected to drive growth and outpace the market.  **[HSIC_3375216_9]**
- The company is **gaining market share in digital equipment sales**, especially intra-oral scanners, 3D printing, and imaging, by helping practitioners operate more efficient practices through their **integrated digital workflow and software solutions**.  **[HSIC_3375216_18]**
- **Recent acquisitions are performing well**, integrating seamlessly without significant additional investment, and are expected to be **accretive**, supporting the company's pivot to higher-growth, higher-margin products and services.  **[HSIC_3375216_22]**

70e8dc4984a4b0713e992aee2d01bd84812909808c5a24b3a86f3012052ed9e4

1. **Revenue Guidance and Core Growth**  
   **Q:** What's the expected core organic growth rate and components of revenue guidance for 2024?  
   **A:** Henry Schein expects about **3%** growth from recovery on the cybersecurity incident and another **3%** from acquisitions, totaling **6%** of growth. FX is anticipated to add **0.5% to 1%**, resulting in a core organic growth rate of **3% to 4%** for 2024. This reflects accelerated growth in technology and value-added services, as well as growth in the core and specialty businesses.  **[HSIC_3375216_10]** **[HSIC_3375216_11]** **[HSIC_3375216_16]** 

2. **EPS Growth and Investments Impact**  
   **Q:** Why is the normalized EPS growth for 2024 projected to be low single digits despite solid revenue growth?  
   **A:** The low single-digit EPS growth is due to ongoing investments in the business, including projects deferred from 2023 and necessary expenditures for future growth. These investments are impacting earnings estimates for 2024 but are expected to position the company for stronger growth in 2025, aligning with long-term goals of **6% to 8%** revenue growth and **8% to 11%** EPS growth.  **[HSIC_3375216_14]** **[HSIC_3375216_15]** 

3. **Margin Assumptions and Pressure**  
   **Q:** How are margins expected to evolve in light of the cybersecurity recovery?  
   **A:** Adjusted EBITDA margin is anticipated to expand by about **30 basis points** at the midpoint. However, there is margin pressure from recovery efforts related to the cyber incident and investments delayed from 2023, such as the global e-commerce platform. As revenues ramp up over the year, margins are expected to improve.  **[HSIC_3375216_12]** 

4. **Capital Allocation Plans**  
   **Q:** What are the capital allocation priorities for 2024 regarding M&A, debt paydown, and share repurchases?  
   **A:** Henry Schein plans to return to a historical M&A spend of **$300 million to $400 million**, down from over $1 billion in 2023. The company will continue share repurchases, though these are not included in the guidance. Given higher debt levels, debt paydown is also being considered as an accretive use of capital compared to share repurchases.  **[HSIC_3375216_13]** 

5. **Equipment Sales Outlook Post-Cybersecurity Incident**  
   **Q:** What is the outlook for equipment sales and market share after the cybersecurity incident?  
   **A:** The company expects good equipment sales growth in the first quarter as orders pushed from Q4 due to the cybersecurity incident are fulfilled. Demand for digital equipment, such as intraoral scanners and 3D printers, remains strong, and the company anticipates gaining market share in this rapidly growing segment. Traditional equipment markets are approximately flat, but Henry Schein continues to edge forward in market share both in the U.S. and internationally.  **[HSIC_3375216_8]** **[HSIC_3375216_18]** 

6. **Recovery of Merchandise Sales**  
   **Q:** How is the company addressing the gap in merchandise sales caused by the cybersecurity incident?  
   **A:** Efforts are focused on regaining business from 'infill shoppers' who were affected when the website was down. The e-commerce platform is back online, and the company is actively marketing to these customers. Recovery to pre-incident levels is expected within **2 to 4 months**, and the brand remains strong in the marketplace.  **[HSIC_3375216_20]** 

7. **Intraoral Scanner Pricing Pressure**  
   **Q:** Has pricing for intraoral scanners reached the bottom industry-wide?  
   **A:** The company anticipates slight additional price erosion in the first **3 to 4 months** of the year but believes prices will stabilize thereafter. Introduction of lower-priced, less feature-rich systems may expand the market rather than further depress prices. Overall, they are close to the bottom on price erosion for intraoral scanners.  **[HSIC_3375216_19]** 

8. **Specialty Product Launches and Acquisitions**  
   **Q:** What is the contribution of specialty product launches and recent acquisitions to growth?  
   **A:** A range of new products is being introduced across endodontics, orthodontics, implants, and software, including advances in pediatric endodontic programs and AI-driven revenue cycle management tools. Acquisitions like Biotech and SIM are performing well, with new software launching in the U.S. and innovative products being introduced to Latin America. These initiatives are expected to contribute positively to organic growth.  **[HSIC_3375216_9]** 

9. **Specialty Dental Business Demand**  
   **Q:** How is demand in the specialty dental business, including clear aligners?  
   **A:** The clear aligner business, while less than **10%** of the specialty segment, is performing well, especially among Dental Service Organizations (DSOs) in France and other European countries. Although relatively small and not expected to significantly impact corporate numbers, it enhances the company's product offerings to customers. Overall, the specialty dental business is growing nicely.  **[HSIC_3375216_23]** 

10. **Incremental Opportunity with Sales Force Changes**  
    **Q:** Is moving surgical products to Field Sales Consultants (FSCs) an incremental opportunity?  
    **A:** Yes, transitioning products like EdgeEndo to FSCs in the U.S. and Canada represents a positive opportunity. Historically, these products had limited distribution, and the new approach is expected to drive progress in the oral surgery community and generate increased sales, especially after the national sales meeting in the summer.  **[HSIC_3375216_17]** 

ec3331badb67f9ff7b070b026c86a6679e487b6176745b39044b97607e278ba5

- **Henry Schein reduced its 2024 total sales growth expectations from 8%–10% to 4%–6% due to a slower-than-anticipated recovery from a cyber incident and flat market growth, raising concerns about hitting revenue targets.**  **[HSIC_3396605_9]** **[HSIC_3396605_7]**
- **The company's recovery of market share in its distribution businesses is progressing slower than expected, with customers shifting towards lower-cost options, potentially pressuring sales and margins.**  **[HSIC_3396605_14]** **[HSIC_3396605_9]** **[HSIC_3396605_18]**
- **Delays in key product launches, such as the FDA approval of a new dental implant in the U.S. which was expected in March/April but received in June, have led to decreased sales and could hinder competitive positioning.**  **[HSIC_3396605_13]**

51720ca5faaca54b8d3ba603b3661837ddbbd67962502067b3c92f87a97ad444

- **Henry Schein is recovering from the cyber incident, regaining customers, and growing market share in its core distribution business**, particularly in the medical segment, leading to a stable and improving performance.  **[HSIC_3405773_15]**
- **The company is experiencing strong growth in its high-margin implant business**, notably in North America with the adoption of the BioHorizons tapered pro conical implant, and is gaining market share in Europe, indicating solid momentum in this segment.  **[HSIC_3405773_12]** **[HSIC_3405773_6]**
- **Operational efficiencies and restructuring initiatives are leading to significant cost savings, with expectations of operating margin expansion in 2025**, as lower operating expenses offset increased depreciation, positioning the company for improved profitability.  **[HSIC_3405773_14]** **[HSIC_3405773_9]**

9eb660156d240fd27a78da1d8cc686aae0b01b03d07307e4054b96d2e0e504a6

1. **Gross Margin Drivers**  
   **Q:** What's driving record gross margins, and can they be sustained?  
   **A:** Management explained that the record high gross margin of nearly **32%** was largely due to a favorable mix, with growth in higher-margin value-added services and specialty businesses resulting from strategic acquisitions. They believe this performance is consistent with their expectations and strategic plan, but sustainability will depend on the ongoing recovery in distribution businesses.  **[HSIC_3386779_8]** 

2. **Dental Equipment Sales Outlook**  
   **Q:** Why didn't Dental equipment sales rebound as expected post-cyber incident, and what's the outlook?  
   **A:** The shift of dental equipment sales from the fourth quarter to the first was less than anticipated because sales teams were focused on customer support during the cyber incident. Equipment backlog has been restored to pre-pandemic levels. Management expects modest growth going forward, citing stable traditional equipment sales and growth in the **CAD/CAM** area, though they remain cautious due to factors like interest rates affecting large DSOs.  **[HSIC_3386779_9]** 

3. **Implant Market Growth and Share**  
   **Q:** How is the company performing in the implant market amid low single-digit growth?  
   **A:** The company is not significantly impacted by price sensitivity in full arch implants, as their price points are lower than other premium brands and their customers focus less on full arch procedures. They highlighted the successful launch of the **Easy 2 implant system** in Germany and anticipate expanding their U.S. market with a new bone level implant, potentially addressing **40% to 50%** of the market they couldn't previously serve.  **[HSIC_3386779_10]** 

4. **Technology Segment Impact from Cyber Incident**  
   **Q:** How did the Change Healthcare cyber incident affect the Technology segment?  
   **A:** The cyber incident caused stagnation in revenue growth for Henry Schein One in March, as dental practices faced cash flow issues and deferred acquiring new technology products. The company assisted customers by providing alternative claims processing and extending terms. Growth has since returned to normal levels, and they expect continued strength supported by new software product launches.  **[HSIC_3386779_12]** 

5. **Dental Consumables Market Trends**  
   **Q:** Are customers trading down in dental consumables due to pricing pressures?  
   **A:** Pricing in dental consumables is relatively stable, with inflation at **1% to 2%**, but a shift towards corporate brands has offset much of this. Margins have stabilized, and while there is some pressure in specific areas like gloves, overall the market remains stable without significant trading down by customers.  **[HSIC_3386779_14]** 

6. **Medical Distribution Competitive Dynamics**  
   **Q:** How is competition affecting the Medical distribution business?  
   **A:** Competitive pressures affecting other parts of healthcare distribution are not impacting the company. They continue to win new awards without losing existing customers, particularly among IDNs and group practices. The shift of procedures from acute care to alternate care settings continues, and their unique service is highly appreciated by customers.  **[HSIC_3386779_13]** 

7. **Acquisitions Performance**  
   **Q:** How are recent acquisitions performing?  
   **A:** Management is pleased with recent acquisitions, noting some are exceeding expectations. The integration of implant businesses **Biotech Dental** and **SIN** is progressing well, contributing to internal growth from the second and third quarters, respectively. The Home Solutions business, approaching **$350 million** in annual revenue, is performing well, and they are satisfied with value-added services acquisitions like Large Practice Sales.  **[HSIC_3386779_21]** 

8. **Dental Market Stability**  
   **Q:** What is management's view on dental market trends amid investor skepticism?  
   **A:** Management views the U.S. dental market as stable, possibly leaning toward growth. While factors like weather and seasonal illnesses impacted patient traffic early in the quarter, improvements began in March. High interest rates may affect costly procedures, but basic patient traffic is good. They remain positive about dentistry's future, expecting continued stability and growth in both consumables and equipment.  **[HSIC_3386779_18]** 

9. **Home Health Opportunities**  
   **Q:** Is the company focusing on expanding in home health care?  
   **A:** The company sees home health care as a significant growth area, with the Home Solutions business approaching **$350 million** in annual revenue. They plan to grow organically and through additional investments, integrating businesses onto a common platform to provide national service with high customer satisfaction.  **[HSIC_3386779_17]** 

10. **Guidance and Revenue Growth Cadence**  
    **Q:** What is the expected revenue and earnings growth cadence for the year?  
    **A:** Management expects sales growth to be more significant in the back half of the year, driven by ongoing recovery from the cyber incident and new product launches in implants and technology. They anticipate better growth in **Q3 and Q4** compared to **Q2**, with contributions from acquisition integrations and market share gains in distribution.  **[HSIC_3386779_22]** 

5effc16a5cfc5b78b2848c21cc71161798abe09831fce421f469be76638e01ba

- **Margin pressures are expected due to the ongoing recovery from the cybersecurity incident**, which led to delayed projects and increased costs being incurred in 2024.  **[HSIC_3375216_12]**
- **Organic growth is projected to be low, with internal revenue growth guidance of only 3% to 4%**, relying heavily on acquisitions and recovery from the cyber incident for growth.  **[HSIC_3375216_16]** ,  **[HSIC_3375216_10]**
- **Pricing pressure in intra-oral scanners continues to be a headwind**, with possible further price erosion expected in early 2024, impacting growth and margins.  **[HSIC_3375216_19]**

4f0313de2a58d0189d2ce12199c205b2975cbc0791c974117e7981d64d9c7dfb

Henry Schein Inc (HSIC)

Financials