Henry Schein Q2 2024 Update

TL;DR

Henry Schein Q2 2024 results are in. Check the 10-Q for debt and credit facility details.

AI Summary

Henry Schein Inc. reported its second quarter 2024 results, ending June 29, 2024. The company's filing indicates a fiscal year end of December 28. Specific financial figures and debt details are available within the report, including information on revolving credit facilities and loans payable.

Why It Matters

This filing provides investors with an update on Henry Schein's financial performance and debt structure for the second quarter of 2024, impacting investment decisions.

Risk Assessment

Risk Level: medium — The filing contains detailed financial information, including debt and credit facilities, which are crucial for assessing the company's financial health and risk.

Key Numbers

• 48,000,000 — Fiscal Year End (Indicates the end of the company's fiscal year is December 28.)
• 2024-06-29 — Reporting Period End Date (The end date for the financial data presented in this 10-Q filing.)
• 2023-12-31 — Previous Year End Date (Provides a comparative point for financial performance.)

Key Players & Entities

• Henry Schein Inc. (company) — Filer of the 10-Q report
• 20240629 (date) — End of the reporting period for the 10-Q
• 135 Duryea Rd, Melville, NY 11747 (location) — Business and mailing address of Henry Schein Inc.
• 000-27078 (dollar_amount) — SEC file number for Henry Schein Inc.

FAQ

Key Financial Figures

• $0.01 — Common Stock Additional Other Total $0.01 Par Value Paid-in Retained Comprehen

Filing Documents

• hsic-20240629.htm (10-Q) — 2186KB
• ex311.htm (EX-31.1) — 11KB
• ex312.htm (EX-31.2) — 11KB
• ex321.htm (EX-32.1) — 6KB
• ex991.htm (EX-99.1) — 29KB
• 0001000228-24-000054.txt ( ) — 11636KB
• hsic-20240629.xsd (EX-101.SCH) — 71KB
• hsic-20240629_cal.xml (EX-101.CAL) — 88KB
• hsic-20240629_def.xml (EX-101.DEF) — 366KB
• hsic-20240629_lab.xml (EX-101.LAB) — 882KB
• hsic-20240629_pre.xml (EX-101.PRE) — 560KB
• hsic-20240629_htm.xml (XML) — 2390KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Page ITEM 1. Condensed Consolidated Financial Statements: Condensed Consolidated Balance Sheets as of June 29, 2024 and December 30, 2023 3 Condensed Consolidated Statements of Income for the three and six months ended June 29, 2024 and July 1, 2023 4 Condensed Consolidated Statements of Comprehensive Income for the three and six months ended June 29, 2024 and July 1, 2023 5 Condensed Consolidated Statement of Changes in Stockholders' Equity for the three months ended June 29, 2024 and July 1, 2023 6 Condensed Consolidated Statement of Changes in Stockholders' Equity for the six months ended June 29, 2024 and July 1, 2023 7 Condensed Consolidated Statements of Cash Flows for the six months ended June 29, 2024 and July 1, 2023 8 Notes to Condensed Consolidated Financial Statements 9 Note 1 – Basis of Presentation 9 Note 2 – Significant Accounting Policies and Recently Issued Accounting Standards 10 Note 3 – Cyber Incident 11 Note 4 – Net Sales from Contracts with Customers 12 Note 5 – Segment Data 13 Note 6 – Business Acquisitions 14 Note 7 – Fair Value Measurements 19 Note 8 – Debt 21 Note 9 – Income Taxes 24 Note 10 – Plans of Restructuring 25 Note 11 – Legal Proceedings 26 Note 12 – Stock-Based Compensation 28 Note 13 – Redeemable Noncontrolling Interests 30 Note 14 – Comprehensive Income 30 Note 15 – Earnings Per Share 32 Note 16 – Supplemental Cash Flow Information 32 Note 17 – Related Party Transactions 33 ITEM 2.

Management's Discussion and Analysis of

Management's Discussion and Analysis of Financial Condition and Results of Operations 34 ITEM 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 50 ITEM 4.

Controls and Procedures

Controls and Procedures 51

OTHER INFORMATION

PART II. OTHER INFORMATION ITEM 1.

Legal Proceedings

Legal Proceedings 52 ITEM 1A.

Risk Factors

Risk Factors 52 ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds 52 ITEM 5. Other Information 52 ITEM 6. Exhibits 53 Signature 54 Table of Contents See accompanying notes. 3 PART I. FINANCIAL INFORMATION

CONDENSED CONSOLIDATED

ITEM 1. CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS HENRY SCHEIN, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in millions, except share data) June 29, December 30, 2024 2023 (unaudited) ASSETS Current assets: Cash and cash equivalents $ 138 $ 171 Accounts receivable, net of allowance for credit losses of $ 82 and $ 83 (1) 1,559 1,863 Inventories, net of reserves of $ 145 and $ 192 1,657 1,815 Prepaid expenses and other 587 639 Total current assets 3,941 4,488 Property and equipment, net 518 498 Operating lease right-of-use assets 304 325 Goodwill 3,905 3,875 Other intangibles, net 1,081 916 Investments and other 502 471 Total assets $ 10,251 $ 10,573 LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 867 $ 1,020 Bank credit lines 505 264 Current maturities of long-term debt 106 150 Operating lease liabilities 75 80 Accrued expenses: Payroll and related 279 332 Taxes 150 137 Other 567 700 Total current liabilities 2,549 2,683 Long-term debt (1) 1,891 1,937 Deferred income taxes 115 54 Operating lease liabilities 261 310 Other liabilities 431 436 Total liabilities 5,247 5,420 Redeemable noncontrolling interests 856 864 Commitments and contingencies (nil) (nil) Stockholders' equity: Preferred stock, $ 0.01 par value, 1,000,000 shares authorized, none outstanding - - Common stock, $ 0.01 par value, 480,000,000 shares authorized, 127,080,545 outstanding on June 29, 2024 and 129,247,765 outstanding on December 30, 2023 1 1 Additional paid-in capital - - Retained earnings 3,803 3,860 Accumulated other comprehensive loss ( 292 ) ( 206 ) Total Henry Schein, Inc. stockholders' equity 3,512 3,655 Noncontrolling interests 636 634 Total stockholders' equity 4,148 4,289 Total liabilities, redeemable noncontrolling interests and stockholders' equity $ 10,251 $ 10,573 (1) Amounts

financial statements

financial statements. The unaudited interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes to the consolidated financial on Form 10-K for the year ended December 30, 2023 and with the information contained in our other publicly- available filings with the Securities and Exchange Commission. The condensed consolidated financial statements reflect all adjustments considered necessary for a fair presentation of the consolidated results of operations and financial position for the interim periods presented. All such adjustments are of a normal recurring nature. The preparation of financial statements in conformity with accounting principles generally accepted in the United assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial revenues and expenses during the reporting period. Actual results could differ from those estimates. The results of operations for the three and six months ended June 29, 2024 are not necessarily indicative of the results to be expected for any other interim period or for the year ending December 28, 2024. Our condensed consolidated financial statements reflect estimates and assumptions made by us that affect, among other things, our goodwill, long-lived asset and definite-lived intangible asset valuation; inventory valuation; equity investment valuation; assessment of the annual effective tax rate; valuation of deferred income taxes and income tax contingencies; the allowance for doubtful accounts; hedging activity; supplier rebates; measurement of compensation cost for certain share-based performance awards and cash bonus plans; and pension plan assumptions. We consolidate the results of operations and financ

financial statements

financial statements. In November 2023, the FASB issued ASU 2023-07, " Segment Reporting (Topic 280): Improvements to Reportable Segments ," which aims to improve financial reporting by requiring disclosure of incremental segment information on an annual and interim basis for all public entities to enable investors to develop more decision-useful financial analyses. Currently, Topic 280 requires that a public entity disclose certain information about its reportable segments. For example, a public entity is required to report a measure of segment profit or loss that the chief operating decision maker uses to assess segment performance and make decisions about allocating resources. Topic 280 also requires other specified segment items and amounts, such as depreciation, amortization and depletion expense, to be disclosed under certain circumstances. The amendments in this ASU do not change or remove those disclosure requirements and do not change how a public entity identifies its operating segments, aggregates those operating segments or applies the quantitative thresholds to determine its reportable segments. This ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years Table of Contents HENRY SCHEIN, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (in millions, except share and per share data) (unaudited ) 11 beginning after December 15, 2024. Early adoption is permitted. We are currently evaluating the impact that ASU 2023- 07 will have on our consolidated financial statements. Note 3 – Cyber Incident In October 2023 Henry Schein experienced a cyber incident that primarily affected the operations of our North American and European dental and medical distribution businesses. Henry Schein One, our practice management software, revenue cycle management and patient relationship management solutions business, was not affected, and our manufacturing businesses were mostl

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