On February 25, 2025, Henry Schein Inc (HSIC, Financial) released its 8-K filing detailing the financial results for the fourth quarter and full year of 2024. The company, a leading provider of healthcare products and services to dental and medical practitioners, operates through two main segments: healthcare distribution and technology & value-added services. The majority of its revenue is derived from the healthcare distribution segment.
Henry Schein Inc reported a fourth-quarter GAAP diluted EPS of $0.74, which fell short of the analyst estimate of $0.93. However, the non-GAAP diluted EPS was $1.19, significantly surpassing the estimate. The company's total net sales for the quarter were $3.2 billion, which is below the estimated revenue of $3.295 billion. This growth was driven by a 5.5% internal sales increase and a 0.7% boost from acquisitions, partially offset by a 0.4% decrease due to foreign currency exchange.
The company faces challenges such as restructuring costs and the impact of foreign currency fluctuations, which could affect future profitability. However, the strategic restructuring is expected to yield significant cost savings, positioning the company for future growth.
Henry Schein Inc's financial achievements are noteworthy in the medical distribution industry. The company reported an operating cash flow of $204 million for the fourth quarter and $848 million for the full year, marking an increase of $348 million compared to 2023. This robust cash flow is crucial for sustaining operations and funding strategic initiatives.
The company's adjusted EBITDA for the quarter was $270 million, up from $172 million in the fourth quarter of 2023, highlighting improved operational efficiency. These achievements underscore the company's ability to navigate a challenging market environment and capitalize on growth opportunities.
The income statement reveals a net income of $94 million for the fourth quarter, a significant increase from $18 million in the same period of 2023. The balance sheet shows total assets of $10.218 billion, with a slight decrease in cash and cash equivalents to $122 million from $171 million in 2023. The company's liabilities remained stable, with total liabilities at $5.381 billion.
Key metrics such as the non-GAAP net income of $149 million and the adjusted EBITDA of $1.061 billion for the full year reflect the company's strong financial health and operational performance.
Our fourth quarter financial results reflect relatively stable dental and medical end-markets. We continued to make progress on our 2022 to 2024 BOLD+1 Strategic Plan which we recently completed, exceeding our 2024 target of generating 40% of our worldwide operating income from high-growth, high-margin businesses," said Stanley M. Bergman, Chairman of the Board and Chief Executive Officer of Henry Schein.
The company announced a new organizational structure to enhance growth and efficiency, with Andrea Albertini and Tom Popeck appointed to lead key business groups. This strategic realignment is expected to drive growth by leveraging the current product portfolio and expanding the e-commerce business.
Henry Schein Inc's performance in the fourth quarter and full year of 2024 demonstrates resilience and strategic foresight. The company's ability to exceed non-GAAP EPS estimates and achieve significant cash flow growth positions it well for future expansion. The restructuring efforts and strategic realignment are expected to yield long-term benefits, enhancing the company's competitive position in the healthcare distribution industry.
Looking ahead, Henry Schein Inc anticipates continued growth, with 2025 non-GAAP diluted EPS expected to range between $4.80 and $4.94, reflecting a 1% to 4% increase over 2024. The company's focus on high-growth, high-margin businesses and strategic investments will be key drivers of future success.
Explore the complete 8-K earnings release (here) from Henry Schein Inc for further details.
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