Henry Schein, Inc. (HSIC) Bundle
A Brief History of Henry Schein, Inc.
Henry Schein, Inc. has established itself as a leading provider of healthcare products and services, with a focus on dental, medical, and animal health sectors. As of 2024, the company continues to expand its global reach and enhance its service offerings.
Company Overview
Founded in 1932, Henry Schein has grown through strategic acquisitions and organic growth. The company operates in more than 30 countries and serves over a million customers worldwide.
Financial Performance
For the third quarter ended September 28, 2024, Henry Schein reported net sales of $3.174 billion, a slight increase from $3.162 billion in the same quarter of 2023. Year-to-date, net sales reached $9.482 billion, compared to $9.322 billion for the first nine months of 2023.
| Financial Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Net Sales | $3.174 billion | $3.162 billion | $9.482 billion | $9.322 billion |
| Gross Profit | $993 million | $995 million | $3.023 billion | $2.936 billion |
| Operating Income | $157 million | $200 million | $466 million | $576 million |
| Net Income | $99 million | $143 million | $302 million | $419 million |
Debt and Financial Management
As of September 28, 2024, Henry Schein's total debt stood at $2.653 billion, compared to $2.351 billion at the end of 2023. The company maintains a robust liquidity position with cash and cash equivalents of $126 million as of September 28, 2024.
Acquisitions and Strategic Initiatives
Henry Schein has consistently pursued growth through acquisitions. In 2024, the company undertook several strategic acquisitions to enhance its technology and value-added services portfolio. Notably, the company has made significant investments in digital solutions aimed at improving customer engagement and operational efficiency.
Market Position and Future Outlook
As a leading distributor in the healthcare sector, Henry Schein is well-positioned to capitalize on emerging market trends, including the increasing demand for integrated healthcare solutions. The company’s focus on innovation and customer service is expected to drive future growth.
Stock Performance
Henry Schein's stock has shown resilience in the market, with a share repurchase program that has returned significant capital to shareholders. As of September 28, 2024, the company had repurchased approximately $5.1 billion worth of shares since the inception of its repurchase programs.
| Stock Repurchase Details | Amount (in billions) | Shares Repurchased | Available for Future Repurchases |
|---|---|---|---|
| Total Repurchased | $5.1 | 94.76 million | $0.455 |
Challenges and Resilience
Despite facing challenges such as the impacts of the COVID-19 pandemic and a recent cyber incident, Henry Schein has demonstrated resilience through effective crisis management and a commitment to its strategic priorities.
Conclusion on Financial Health
As of September 28, 2024, Henry Schein's effective tax rate was 25.1%, reflecting the company's strong financial management practices. The company continues to evaluate the implications of global tax reforms, including the OECD's Pillar Two rules, which establish a minimum global tax rate of 15% effective January 1, 2024.
A Who Owns Henry Schein, Inc. (HSIC)
Ownership Structure
As of 2024, Henry Schein, Inc. (HSIC) has a diversified ownership structure comprising institutional investors, individual shareholders, and company insiders. The total number of shares outstanding is approximately 125,154,194.
Major Shareholders
The following table outlines the major shareholders of Henry Schein, Inc., including their respective ownership percentages:
| Shareholder | Ownership Percentage | Shares Owned |
|---|---|---|
| Vanguard Group, Inc. | 8.37% | 10,482,174 |
| BlackRock, Inc. | 7.90% | 9,883,277 |
| State Street Corporation | 4.83% | 6,053,932 |
| Wellington Management Group LLP | 5.15% | 6,438,944 |
| Invesco Ltd. | 4.02% | 5,029,923 |
| Company Insiders (Executives and Board Members) | 1.25% | 1,561,925 |
Institutional Ownership
As of the end of 2024, approximately 90% of Henry Schein's shares are held by institutional investors, reflecting strong confidence in the company’s ongoing performance and strategic direction. The following table provides a breakdown of institutional ownership:
| Institution | Shares Held | Ownership Percentage |
|---|---|---|
| Vanguard Group, Inc. | 10,482,174 | 8.37% |
| BlackRock, Inc. | 9,883,277 | 7.90% |
| State Street Corporation | 6,053,932 | 4.83% |
| Wellington Management Group LLP | 6,438,944 | 5.15% |
| Invesco Ltd. | 5,029,923 | 4.02% |
| Others | 37,374,944 | 30.00% |
Insider Holdings
Insider ownership, including executives and board members, accounts for approximately 1.25% of total shares, indicating a commitment from the leadership team. The following table summarizes insider holdings:
| Name | Position | Shares Owned |
|---|---|---|
| Stanley M. Bergman | Chairman & CEO | 1,200,000 |
| James J. Breslawski | President | 200,000 |
| Other Executives | Various | 161,925 |
Market Capitalization
The market capitalization of Henry Schein, Inc. as of October 2024 is approximately $8.38 billion, calculated based on the current share price of approximately $67.
Recent Performance and Trends
In the most recent quarter, Henry Schein reported net sales of $3.17 billion for the three months ended September 28, 2024, a slight increase compared to $3.16 billion in the same period of the previous year. The company’s net income for this period was $99 million, translating to a diluted earnings per share of $0.78.
The following table summarizes the recent financial performance of Henry Schein:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Sales | $3.17 billion | $3.16 billion |
| Net Income | $99 million | $143 million |
| Earnings Per Share (Diluted) | $0.78 | $1.05 |
Henry Schein, Inc. (HSIC) Mission Statement
Overview of Mission Statement
Henry Schein, Inc. aims to provide innovative healthcare solutions to enhance the performance of healthcare professionals and improve patient care. The company emphasizes its commitment to delivering quality products and services that meet the needs of its customers across various sectors.
Core Values and Principles
- Integrity: Upholding the highest ethical standards in all business dealings.
- Teamwork: Collaborating with stakeholders to achieve common goals.
- Customer Focus: Prioritizing customer needs and satisfaction.
- Innovation: Continuously seeking new ways to improve products and services.
- Community Commitment: Engaging in corporate social responsibility initiatives.
Financial Performance Metrics
As of September 28, 2024, Henry Schein reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Sales | $3,174 million | $3,162 million | +0.38% |
| Gross Profit | $993 million | $995 million | -0.20% |
| Operating Income | $157 million | $200 million | -21.5% |
| Net Income | $99 million | $143 million | -30.77% |
| Earnings Per Share (Diluted) | $0.78 | $1.05 | -25.71% |
Market Segments and Revenue Sources
Henry Schein operates primarily in the healthcare distribution and technology sectors, with a focus on dental and medical products. The distribution of net sales for Q3 2024 is as follows:
| Segment | Net Sales (Q3 2024) | Net Sales (Q3 2023) |
|---|---|---|
| Dental | $1,852 million | $1,882 million |
| Medical | $1,101 million | $1,070 million |
| Technology and Value-Added Services | $221 million | $210 million |
Strategic Objectives
Henry Schein's strategic objectives include:
- Expanding global market presence through acquisitions and partnerships.
- Investing in technology to enhance operational efficiencies.
- Improving customer engagement through innovative solutions.
- Enhancing supply chain management for better service delivery.
Corporate Social Responsibility
The company is committed to community engagement and sustainability initiatives, focusing on:
- Supporting healthcare access in underserved communities.
- Implementing environmentally sustainable practices in operations.
- Promoting health education and awareness programs.
Recent Acquisitions and Growth Strategies
In 2024, Henry Schein acquired a 60% equity interest in TriMed Inc. for $316 million, enhancing its offerings in orthopedic solutions. This acquisition is part of a broader strategy to diversify and strengthen its product portfolio.
Conclusion
Henry Schein remains dedicated to its mission of providing superior healthcare solutions while maintaining a strong financial foundation and commitment to corporate responsibility.
How Henry Schein, Inc. (HSIC) Works
Company Overview
Henry Schein, Inc. (HSIC) operates as a global healthcare solutions company, providing products and services to office-based dental and medical practitioners, dental laboratories, and other healthcare providers. The company functions through two primary segments: health care distribution and technology & value-added services.
Financial Performance
For the nine months ending September 28, 2024, Henry Schein reported net sales of $9,482 million, an increase from $9,322 million in the same period of 2023. The breakdown of net sales by segment is as follows:
| Segment | Net Sales (2024) | Net Sales (2023) | Change ($ million) | Change (%) |
|---|---|---|---|---|
| Dental | $5,690 | $5,737 | ($47) | (0.8%) |
| Medical | $3,140 | $2,991 | $149 | 5.0% |
| Technology & Value-Added Services | $652 | $594 | $58 | 9.7% |
The company’s gross profit for the nine months ended September 28, 2024, was $3,023 million, compared to $2,936 million for the same period in 2023. This reflects a gross margin of approximately 31.9% for 2024.
Operating Expenses
Operating expenses for the nine months ending September 28, 2024, totaled $2,296 million, compared to $2,149 million for the same period in 2023. The breakdown is as follows:
| Expense Type | 2024 ($ million) | 2023 ($ million) |
|---|---|---|
| Selling, General and Administrative | 2,296 | 2,149 |
| Depreciation and Amortization | 188 | 152 |
| Restructuring Costs | 73 | 59 |
Net Income
Net income attributable to Henry Schein for the nine months ended September 28, 2024, was $296 million, compared to $398 million for the same period in 2023. The earnings per share (EPS) for the period was $2.30 diluted, compared to $3.02 diluted in 2023.
Cash Flow
Cash flows from operating activities for the nine months ending September 28, 2024, amounted to $644 million, compared to $532 million for the same period in 2023. The cash flows from investing activities were a net outflow of $372 million, while financing activities showed a net outflow of $306 million.
Sales by Geography
As of September 28, 2024, the breakdown of net sales by geography is as follows:
| Region | Net Sales (2024) | Net Sales (2023) |
|---|---|---|
| North America | $6,946 million | $6,886 million |
| International | $2,536 million | $2,436 million |
Acquisitions
On April 1, 2024, Henry Schein acquired a 60% voting equity interest in TriMed Inc. for a total consideration of $316 million, which included cash and redeemable noncontrolling interests. This acquisition aims to enhance its orthopedic treatment solutions.
Market Challenges
Henry Schein faces challenges including a decrease in sales of Personal Protective Equipment (PPE) products, which were approximately $478 million for the nine months ending September 28, 2024, down from $540 million in the previous year. This reflects an estimated decrease of 11.3% year-over-year.
Stockholder Equity
As of September 28, 2024, total stockholders' equity for Henry Schein was $4,139 million, compared to $4,289 million at the end of the previous fiscal year.
Effective Tax Rate
The effective tax rate for the nine months ending September 28, 2024, was 25.1%, up from 22.5% in the prior year.
How Henry Schein, Inc. (HSIC) Makes Money
Revenue Streams
Henry Schein, Inc. generates revenue primarily through the distribution of healthcare products and services. Their main segments include:
- Health Care Distribution
- Technology and Value-Added Services
Financial Performance Overview
As of the nine months ended September 28, 2024, Henry Schein reported net sales of $9,482 million, an increase from $9,322 million in the same period of 2023, representing a growth of 1.7%.
| Financial Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Sales | $3,174 million | $3,162 million | +0.4% |
| Cost of Sales | $2,181 million | $2,167 million | +0.6% |
| Gross Profit | $993 million | $995 million | -0.2% |
| Operating Income | $157 million | $200 million | -21.5% |
| Net Income | $99 million | $143 million | -30.8% |
Segment Performance
The health care distribution segment, which includes dental and medical products, contributed significantly to the overall revenue.
| Segment | Net Sales (9M 2024) | Net Sales (9M 2023) | Change (%) |
|---|---|---|---|
| Dental | $5,690 million | $5,737 million | -0.8% |
| Medical | $3,140 million | $2,991 million | +5.0% | Total Health Care Distribution | $8,830 million | $8,728 million | +1.2% |
| Technology and Value-Added Services | $652 million | $594 million | +9.7% |
Impact of Cyber Incident
The company faced challenges due to a cyber incident that affected operations, leading to a slower recovery in sales. The estimated decrease in sales of personal protective equipment (PPE) was approximately $36 million or 13.4% for the nine months ended September 28, 2024, compared to the previous year.
Operating Expenses
Operating expenses for the nine months ended September 28, 2024, totaled $2,296 million, compared to $2,149 million in 2023. The significant components include:
| Expense Type | Amount (9M 2024) | Amount (9M 2023) |
|---|---|---|
| Selling, General and Administrative | $2,296 million | $2,149 million |
| Depreciation and Amortization | $188 million | $152 million |
| Restructuring Costs | $73 million | $59 million |
Cash Flow Overview
For the nine months ended September 28, 2024, Henry Schein reported:
- Net cash provided by operating activities: $644 million
- Net cash used in investing activities: ($372 million)
- Net cash used in financing activities: ($306 million)
Stock Performance
As of September 28, 2024, the diluted earnings per share attributable to Henry Schein, Inc. was $0.78, down from $1.05 in the same quarter of 2023.
| Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Earnings Per Share (Diluted) | $0.78 | $1.05 |
| Weighted-Average Shares Outstanding (Diluted) | 127,054,934 | 131,442,135 |
Taxation
The effective tax rate for the nine months ended September 28, 2024, was 25.1%, compared to 22.5% for the same period in 2023.
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Resources:
- Henry Schein, Inc. (HSIC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Henry Schein, Inc. (HSIC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Henry Schein, Inc. (HSIC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.