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Henry Schein Reports Record Fourth Quarter Results

February 20, 2012, 08:00 AM
Filed Under: Healthcare

Henry Schein, Inc., the largest provider of healthcare products and services to office-based practitioners, today reported record financial results for the quarter ended December 31, 2011.

The Company is on a 52/53 week fiscal year ending on the last Saturday in December, and 2011 had an extra selling week compared with 2010.  This extra selling week occurred in the fourth quarter of 2011.  In order to facilitate more meaningful comparisons, the Company is providing a separate estimate of the impact of the extra week on sales growth and is providing internal sales growth in local currencies excluding that extra week.

Net sales for the fourth quarter of 2011 were $2.3 billion, an increase of 15.6% compared with the fourth quarter of 2010.  This consists of internal growth of 5.3%, acquisition growth of 4.7%, a decline related to foreign currency exchange of 0.1% and growth due to the extra week of 5.7%. Net income attributable to Henry Schein, Inc. for the fourth quarter of 2011 was $104.7 million, an increase of 12.6% and 15.0%, respectively, compared with the fourth quarter of 2010.

North American Dental sales of $806.6 million increased 11.9%, including internal growth of 4.5%, a decline related to foreign currency exchange of 0.1% and growth due to the extra week of 7.5%.

"Results in our North American Dental group were strong across the board, and reflect steady patient traffic to dental offices and higher demand for dental equipment," commented Mr. Bergman.  "Dental internal growth in local currencies of 4.5% includes 4.8% growth in Dental consumable merchandise sales and 3.8% growth in Dental equipment sales and services revenues, excluding the impact of the extra week."

North American Medical sales of $373.3 million increased 13.9%, including internal growth of 7.1%, acquisition growth of 0.7% and growth due to the extra week of 6.1%.  There was no meaningful impact on sales growth from seasonal influenza vaccine products.

North American Animal Health sales of $255.9 million increased 14.9%, including internal growth of 7.2% and growth due to the extra week of 7.7%.

"We are delighted to have gained market share in all of our business groups during the fourth quarter, with overall mid-single digit internal sales growth complemented by strategic acquisitions.  Also, we are proud that net sales for the year exceeded $8.5 billion for the first time," said Stanley M. Bergman, Chairman and Chief Executive Officer of Henry Schein.  "Overall our view is that the markets we serve are modestly improving, and we look forward to a return to historic market growth of 5% to 6% annually over the longer term."

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