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Published: 2021-02-17 06:04:21 ET

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EX-99.1 2 exhibit991.htm PRESS RELEASE FEBRUARY 17, 2021 exhibit991

-1-

FOR IMMEDIATE RELEASE

HENRY SCHEIN REPORTS FOURTH QUARTER 2020 FINANCIAL RESULTS

FROM CONTINUING OPERATIONS

●

Total

net sales growth of 18.6% in fourth quarter 2020 versus prior-year

●

Record total net sales growth for second half of 2020

●

GAAP diluted EPS from continuing operations of $0.99 versus prior-year

GAAP diluted EPS from continuing

operations of $2.25, which included a net gain on sale of equity investments

of $1.27

●

Non-GAAP diluted EPS from continuing operations of $1.00 versus prior-year

non-GAAP diluted EPS from

continuing operations of $0.97

●

Introduces guidance for 2021 non-GAAP diluted EPS from continuing operations

MELVILLE, N.Y.,

February 17, 2021 –

Henry Schein, Inc. (Nasdaq: HSIC), the world’s largest provider of health care

solutions to office-based dental and medical practitioners, today reported fourth quarter financial

results from continuing

operations. Results from continuing operations exclude contributions

from Henry Schein’s former Animal Health business,

which was spun off in February 2019 to form a new publicly traded company, Covetrus (Nasdaq: CVET).

Total net sales for the quarter ended December 26, 2020,

were $3.2 billion, an increase of 18.6% compared with the

fourth quarter of 2019, driven by sales of personal protective equipment (PPE)

and COVID-19 related products. The 18.6%

increase included 17.1% internal growth in local currencies, 0.3%

growth from acquisitions and 1.2% growth related to

foreign currency exchange.

(See Exhibit A for details of sales growth).

GAAP net income attributable to Henry Schein, Inc. from continuing operations

for the fourth quarter of 2020 was

$141.9 million, or

$0.99 per diluted share, compared with prior-year GAAP net income from continuing

operations of $330.6

million, or $2.25 per diluted share, which included a net gain on sale of equity

investments of approximately $186.8 million,

or $1.27 per diluted share.

Non-GAAP net income from continuing operations for the fourth quarter

of 2020 was $143.6

million, or $1.00 per diluted share, compared with prior-year non-GAAP net income

from continuing operations of $143.0

million, or $0.97 per diluted share. Exhibit B provides a reconciliation of GAAP

net income and diluted EPS from continuing

operations to non-GAAP net income and diluted EPS from continuing operations.

Operating margin was unfavorably

impacted by significant inventory adjustments associated with PPE and COVID-19

related products, and lower supplier

rebates, partially offset by lower expenses as a percentage of sales. Operating margin was also negatively

impacted by a non-

cash intangible asset impairment charge of approximately $18.1 million, or $0.07

per diluted share. Both GAAP and non-

GAAP net income for the fourth quarter 2020 were favorably impacted

by income tax resolutions in the U.S. and

internationally, which lowered income tax expense by approximately $14.6 million, or $0.10 per diluted share.

NEWS

RELEASE

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“Against the backdrop of a most challenging year in our history due to

the COVID-19 pandemic, with an

unprecedented human toll and economic impact worldwide,

Henry Schein’s unwavering focus on our customers, along with

our resilience and agility, enabled us to deliver fourth quarter total net sales growth of 18.6%. In addition, we

delivered

record total net sales growth for the second half of 2020 as our end markets

have rebounded,

and we recognize the

commitment and sacrifice of our Team Schein Members globally,” said Stanley M. Bergman, Chairman of the Board and

Chief Executive Officer of Henry Schein.

“We were successful in supporting practices that were initially open for emergency

services and also assisting customers preparing to restore practices

to increased operating capacity as restrictions eased. Over

time, we expect that patient traffic will improve to pre-COVID-19 levels.”

“I remain confident that Henry Schein is well-positioned for future continued

success given the breadth of our

products, services and support across the global dental and medical markets,”

Mr. Bergman continued.

Dental sales for the fourth quarter of 2020 of $1.8 billion increased

7.2% versus the prior-year. In local currencies,

internally generated sales increased 5.1% with 0.4%

growth from acquisitions and 1.7% growth related to foreign currency

exchange. The 5.1%

internal growth in local currencies included a decline of 0.7%

in North America and an increase of

14.2% internationally.

Global dental consumable merchandise internal sales increased by 10.0%

in local currencies. Excluding PPE and

COVID-19 related products, sales increased by 5.0%. In North America,

dental consumable merchandise internal sales in

local currencies increased 5.3%, or 0.4% excluding PPE and COVID-19

related products, and dental equipment internal sales

in local currencies decreased 13.2%. Dental equipment sales performance

was impacted by a difficult prior-year comparison.

In addition, we believe some practices potentially held off on year-end equipment purchases as U.S.

tax incentives may be

more favorable in 2021. Internationally, dental consumable merchandise internal sales in local currencies increased 16.7%, or

11.4% excluding PPE and COVID-19 related products, and dental equipment internal sales

in local currencies increased

6.8%.

“We reported strong overall global dental sales growth in the fourth quarter. High-acuity procedures, including dental

specialties and restorative procedures, also contributed to year-over-year sales growth.

The 5.0% quarterly growth rate for

global dental consumable sales is among the highest recorded by Henry Schein

since 2017. International sales results for both

consumable merchandise and equipment were strong. Dental patient traffic has remained at stable

levels compared to the

third quarter of 2020,

even in countries experiencing more stringent lockdown rules, with

the exception of the U.K.,” noted

Mr. Bergman.

Medical sales for the fourth quarter of 2020 of $1.2 billion increased 48.5%

compared with the same period last year,

consisting of 48.2%

growth in local currencies with 0.3%

growth related to foreign currency exchange.

There was no

acquisition growth in the quarter.

“Our Medical business experienced strong year-over-year sales growth in the fourth quarter driven

by continued

demand for PPE and COVID-19 related products, most specifically

for COVID-19 test sales. For the second quarter in a row,

our global Medical business has achieved over $1 billion in quarterly

sales,”

remarked Mr. Bergman. “Excluding sales of

PPE and COVID-19 related products, sales increased by approximately

3.6%. We believe solid COVID-19 test sales growth

is likely to continue while COVID-19 cases remain at relatively high

levels.”

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Technology and Value

-Added Services sales of $138.7

million increased 1.2%

versus the prior-year. The 1.2%

increase included a decline of 0.7%

in internal local currency sales,

offset by 1.2%

growth from acquisitions and 0.7%

growth related to foreign currency exchange.

“Technology and Value

-Added Services sales in the quarter were impacted by lower transactional

revenue associated

with a lower number of patient visits compared to pre-COVID-19 practice volume.

We also experienced a difficult prior-year

comparison that benefited from hardware upgrades

as we helped transition customers to address new operating system

requirements.

In addition, lower dental equipment sales volume in North America

impacted our hardware revenue,” said Mr.

Bergman. “We

were pleased with solid growth in our Dentrix Ascend cloud-based

software and North America financial

services sales. We continue to invest in our technology solutions, including Henry Schein One, which is a key resource to

help drive business success for dental practices.”

2020 Financial Results

Total net sales for 2020 were $10.1 billion, an increase of 1.3%

compared with 2019. In local currencies, internally

generated sales increased 0.8%. Changes in foreign currency exchange

resulted in a 0.1% decline in sales, while acquisitions

contributed 0.6%

to growth.

GAAP net income attributable to Henry Schein, Inc. from continuing operations

for 2020 was $402.8 million, or

$2.81 per diluted share, compared with GAAP net income from continuing

operations for 2019 of $700.7 million,

or $4.69 per diluted share.

Non-GAAP net income from continuing operations for 2020 was $425.3

million, or $2.97 per

diluted share, compared with non-GAAP net income from continuing

operations for 2019 of $523.6 million, or $3.51 per

diluted share. The decline in non-GAAP net income was driven by COVID-19,

primarily during the second quarter. Exhibit

B provides a reconciliation of GAAP net income and diluted EPS from

continuing operations to non-GAAP net income and

diluted EPS from continuing operations.

Stock Repurchase Plan

Prior to the suspension of the Company’s share repurchase program due to COVID-19, for fiscal year 2020

Henry

Schein repurchased approximately 1.2 million shares of common stock at

an average price of $61.49 for a total of $73.8

million. At fiscal year-end, Henry Schein had $201 million authorized

and available for future stock repurchases. Pursuant to

amendments to certain credit facilities, Henry Schein is restricted from engaging

in stock repurchases until the Company

reports second-quarter 2021 financial results.

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Financial Guidance

Henry Schein today introduced guidance for 2021 non-GAAP

diluted EPS from continuing operations.

At this time,

the Company is not providing guidance for 2021 GAAP diluted EPS

from continuing operations as it is unable to provide an

accurate estimate of expenses related to an ongoing restructuring initiative

in 2021. Financial guidance is as follows:

●

2021 non-GAAP diluted EPS from continuing operations attributable

to Henry Schein, Inc. is expected to be at or

above 2019 non-GAAP diluted EPS from continuing operations of $3.51.

The Company believes the comparison to

2019 non-GAAP diluted EPS from continuing operations is most appropriate

given the impact of COVID-19 on 2020

results of operations.

●

Guidance for 2021 non-GAAP diluted EPS attributable to Henry Schein, Inc.

is for current continuing operations as

well as completed or previously announced acquisitions, and does not

include the impact of potential future

acquisitions, if any, restructuring expenses or share repurchases. Guidance also assumes foreign exchange rates that

are generally consistent with current levels, and that end markets remain stable

and are consistent with current market

conditions. Guidance does not assume any material market changes

associated with COVID-19.

Adjustments to Projected 2021 Non-GAAP Diluted EPS

The Company has provided guidance for 2021 non-GAAP diluted EPS

from continuing operations,

as noted above.

A reconciliation to the Company’s projected 2021 diluted EPS from continuing operations prepared on a GAAP

basis is not

provided because the Company is unable to provide without unreasonable

effort an estimate of costs related to an ongoing

restructuring program to mitigate stranded costs and drive additional operating

efficiencies, including the corresponding tax

effect that will be included in the Company’s 2021 diluted EPS from continuing operations prepared on a GAAP basis. The

inability to provide these reconciliations is due to the uncertainty and inherent

difficulty of predicting the occurrence,

magnitude, financial impact,

and the timing of related costs. Management does not believe

these items are representative of

the Company’s underlying business performance. For the same reasons, the Company is unable to address the probable

significance of the unavailable information, which could be material to

future results.

Fourth Quarter 2020 Conference Call Webcast

The Company will hold a conference call to discuss fourth quarter 2020 financial

results today, beginning at 10:00

a.m. Eastern time. Individual investors are invited to listen to the conference

call through Henry Schein’s website by visiting

www.henryschein.com/IRwebcasts

. In addition, a replay will be available beginning shortly

after the call has ended for a

period of one week.

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About Henry Schein, Inc.

Henry Schein, Inc. (Nasdaq: HSIC) is a solutions company for health care

professionals powered by a network of

people and technology. With more than 19,000

Team Schein Members

worldwide, the Company's network of trusted

advisors provides more than 1 million customers globally with more

than 300 valued solutions that help improve operational

success and clinical outcomes. Our Business, Clinical, Technology, and Supply Chain solutions help office-based

dental

and

medical

practitioners work more efficiently so they can provide quality care more effectively. These solutions also

support

dental laboratories

government and institutional health care clinics

, as well as other alternate care sites.

Henry Schein operates through a centralized and automated distribution

network, with a selection of more than

120,000 branded products and Henry Schein private-brand products

in stock, as well as more than 180,000 additional

products available as special-order items.

A FORTUNE 500 Company and a member of the S&P 500® index, Henry Schein is headquartered in Melville,

N.Y.,

and has operations or affiliates in 31 countries and territories. The Company's sales reached

$10.1 billion in 2020, and

have grown at a compound annual rate of approximately 12 percent since Henry

Schein became a public company in 1995.

For more information, visit Henry Schein at

www.henryschein.com

Facebook.com/HenrySchein

and

@HenrySchein on Twitter

Cautionary Note Regarding Forward-Looking Statements and Use

of Non-GAAP Financial Information

In accordance with the “Safe Harbor” provisions of the Private Securities

Litigation Reform Act of 1995, we provide

the following cautionary remarks regarding important factors that,

among others, could cause future results to differ

materially from the forward-looking statements, expectations and assumptions

expressed or implied herein. All forward-

looking statements made by us are subject to risks and uncertainties

and are not guarantees of future performance.

These

forward-looking statements involve known and unknown risks, uncertainties

and other factors that may cause our actual

results, performance and achievements or industry results to be materially different

from any future results, performance or

achievements expressed or implied by such forward-looking statements. These

statements include EPS guidance and are

generally identified by the use of such terms as “may,” “could,” “expect,” “intend,” “believe,” “plan,” “estimate,” “forecast,”

“project,” “anticipate,” “to be,” “to make” or other comparable

terms.

A fuller discussion of our operations,

financial

condition, and status of litigation matters, including factors that may

affect our business and future prospects, is contained in

documents we have filed with the United States Securities and Exchange

Commission, or SEC, and will be contained in all

subsequent periodic filings we make with the SEC. These documents identify

in detail important risk factors that could cause

our actual performance to differ materially from current expectations.

Forward looking statements include the overall impact

of the Novel Coronavirus Disease 2019 (COVID-19) on the Company, its results of operations, liquidity, and financial

condition (including any estimates of the impact on these items), the rate and

consistency with which dental and other

practices resume or maintain normal operations in the United States and

internationally, expectations regarding personal

protective equipment (“PPE”) and COVID-19 related product sales and inventory

levels and whether additional resurgences

of the virus will adversely impact the resumption of normal operations,

the impact of restructuring programs as well as of any

future acquisitions, and more generally current expectations regarding

performance in current and future periods.

Forward

looking statements also include the (i) ability of the Company to make

additional testing available, the nature of those tests

and the number of tests intended to be made available and the timing for availability, the nature of the target market, as well

as the efficacy or relative efficacy of the test results given that the test efficacy has not been, or will not have

been,

independently verified under normal FDA procedures and (ii) potential

for the Company to distribute the COVID-19

vaccines and ancillary supplies.

Risk factors and uncertainties that could cause actual results to differ materially from

current and historical results

include, but are not limited to: risks associated with COVID-19,

as well as other disease outbreaks, epidemics, pandemics, or

similar wide spread public health concerns and other natural disasters or

acts of terrorism; our dependence on third parties for

the manufacture and supply of our products; our ability to develop or acquire

and maintain and protect new products

-6-

(particularly technology products) and technologies that achieve market acceptance

with acceptable margins; transitional

challenges associated with acquisitions, dispositions and joint

ventures, including the failure to achieve anticipated

synergies/benefits; financial and tax risks associated with acquisitions, dispositions and

joint ventures; certain provisions in

our governing documents that may discourage third-party acquisitions

of us; effects of a highly competitive (including,

without limitation, competition from third-party online commerce sites) and consolidating

market; the potential repeal or

judicial prohibition on implementation of the Affordable Care Act; changes

in the health care industry; risks from expansion

of customer purchasing power and multi-tiered costing structures; increases

in shipping costs for our products or other

service issues with our third-party shippers; general global macro-economic

and political conditions, including international

trade agreements and potential trade barriers; failure to comply with

existing and future regulatory requirements; risks

associated with the EU Medical Device Regulation; failure to comply

with laws and regulations relating to health care fraud

or other laws and regulations; failure to comply with laws and regulations relating

to the confidentiality of sensitive personal

information or standards in electronic health records or transmissions;

changes in tax legislation; litigation risks; new or

unanticipated litigation developments and the status of litigation

matters; cyberattacks or other privacy or data security

breaches; risks associated with our global operations; our dependence on

our senior management, as well as employee hiring

and retention; and disruptions in financial markets. The order in which these

factors appear should not be construed to

indicate their relative importance or priority.

We caution that these factors may not be exhaustive and that many of these factors are beyond our ability to control

or predict. Accordingly, any forward-looking statements contained herein should not be relied upon as a prediction of

actual

results. We undertake no duty and have no obligation to update forward-looking statements.

Included within the press release are non-GAAP financial measures that supplement

the Company’s Consolidated

Statements of Income prepared under generally accepted accounting

principles (GAAP). These non-GAAP financial

measures adjust the Company’s actual results prepared under GAAP to exclude certain items.

In the schedules attached to

this press release, the non-GAAP measures have been reconciled to and should

be considered together with the Consolidated

Statements of Income. Management believes that non-GAAP

financial measures provide investors with useful supplemental

information about the financial performance of our business, enable comparison

of financial results between periods where

certain items may vary independent of business performance and allow

for greater transparency with respect to key metrics

used by management in operating our business. These non-GAAP

financial measures are presented solely for informational

and comparative purposes and should not be regarded as a replacement for corresponding,

similarly captioned, GAAP

measures.

CONTACTS:

Investors

Steven Paladino

Executive Vice President and Chief Financial Officer

steven.paladino@henryschein.com

(631) 843-5500

Carolynne Borders

Vice President, Investor Relations

carolynne.borders@henryschein.com

(631) 390-8105

Media

Ann Marie Gothard

Vice President, Corporate Media Relations

annmarie.gothard@henryschein.com

(631) 390-8169

(TABLES TO FOLLOW)

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HENRY SCHEIN, INC.

CONSOLIDATED STATEMENTS

OF INCOME

(in thousands, except per share data)

Three Months Ended

Years

Ended

December 26,

December 28,

December 26,

December 28,

2020

2019

2020

2019

(unaudited)

Net sales

3,165,725

2,668,941

10,119,141

9,985,803

Cost of sales

2,306,014

1,858,343

7,304,798

6,894,917

Gross profit

859,711

810,598

2,814,343

3,090,886

Operating expenses:

Selling, general and administrative

674,131

615,323

2,246,947

2,357,920

Restructuring costs (credits)

4,380

(1,059)

32,093

14,705

Operating income

181,200

196,334

535,303

718,261

Other income (expense):

Interest income

2,361

3,389

9,842

15,757

Interest expense

(11,968)

(9,333)

(41,377)

(50,792)

Other, net

(1,663)

(907)

(3,873)

(2,919)

Income from continuing operations before taxes,

equity in earnings of affiliates and noncontrolling interests

169,930

189,483

499,895

680,307

Income taxes

(29,409)

(42,189)

(95,374)

(159,515)

Equity in earnings of affiliates

4,536

3,129

12,344

17,900

Net gain on sale of equity investments

1,572

186,769

1,572

186,769

Net income from continuing operations

146,629

337,192

418,437

725,461

Income (loss) from discontinued operations, net of tax

712

(747)

986

(6,323)

Net income

147,341

336,445

419,423

719,138

Less: Net income attributable to noncontrolling interests

(4,708)

(6,583)

(15,629)

(24,770)

Plus: Net loss attributable to noncontrolling interests

from discontinued operations

366

Net income attributable to Henry Schein, Inc.

142,633

329,862

403,794

694,734

Amounts attributable to Henry Schein Inc.:

Continuing operations

141,921

330,609

402,808

700,691

Discontinued operations

712

(747)

986

(5,957)

Net income attributable to Henry Schein, Inc.

142,633

329,862

403,794

694,734

Earnings per share from continuing operations attributable

to Henry Schein, Inc.:

Basic

1.00

2.27

2.83

4.74

Diluted

0.99

2.25

2.81

4.69

Earnings (loss) per share from discontinued operations

attributable to Henry Schein, Inc.:

Basic

0.01

(0.01)

0.01

(0.04)

Diluted

(0.01)

0.01

(0.04)

Earnings per share attributable to Henry Schein, Inc.:

Basic

1.00

2.27

2.83

4.70

Diluted

1.00

2.24

2.82

4.65

Weighted

-average common shares outstanding:

Basic

142,379

145,404

142,504

147,817

Diluted

143,328

147,078

143,404

149,257

-8-

HENRY SCHEIN, INC.

CONSOLIDATED

BALANCE SHEETS

(in thousands, except share and per share data)

December 26,

December 28,

2020

2019

ASSETS

Current assets:

Cash and cash equivalents

421,185

106,097

Accounts receivable, net of reserves of $88,030 and $60,002

1,424,787

1,246,246

Inventories, net

1,512,499

1,428,799

Prepaid expenses and other

432,944

445,360

Total current assets

3,791,415

3,226,502

Property and equipment, net

342,004

329,645

Operating lease right-of-use assets, net

288,847

231,662

Goodwill

2,504,392

2,462,495

Other intangibles, net

479,429

572,878

Investments and other

366,445

327,919

Total assets

7,772,532

7,151,101

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable

1,005,655

880,266

Bank credit lines

73,366

23,975

Current maturities of long-term debt

109,836

109,849

Operating lease liabilities

64,716

65,349

Accrued expenses:

Payroll and related

295,329

265,206

Taxes

138,671

165,171

Other

595,529

528,553

Total current liabilities

2,283,102

2,038,369

Long-term debt

515,773

622,908

Deferred income taxes

30,065

64,989

Operating lease liabilities

238,727

176,267

Other liabilities

392,781

331,173

Total liabilities

3,460,448

3,233,706

Redeemable noncontrolling interests

327,699

287,258

Commitments and contingencies

Stockholders' equity:

Preferred stock, $.01 par value, 1,000,000 shares authorized,

none outstanding

Common stock, $.01 par value, 480,000,000 shares authorized,

142,462,571 outstanding on December 26, 2020 and

143,353,459 outstanding on December 28, 2019

1,425

1,434

Additional paid-in capital

47,768

Retained earnings

3,454,831

3,116,215

Accumulated other comprehensive loss

(108,084)

(167,373)

Total Henry Schein, Inc. stockholders' equity

3,348,172

2,998,044

Noncontrolling interests

636,213

632,093

Total stockholders' equity

3,984,385

3,630,137

Total liabilities, redeemable noncontrolling

interests and stockholders' equity

7,772,532

7,151,101

-9-

HENRY SCHEIN, INC.

CONSOLIDATED STATEMENTS

OF CASH FLOWS

(in thousands)

Three Months Ended

Years

Ended

December 26,

December 28,

December 26,

December 28,

2020

2019

2020

2019

(unaudited)

Cash flows from operating activities:

Net income

147,341

336,445

419,423

719,138

Income (loss) from discontinued operations

712

(747)

986

(6,323)

Income from continuing operations

146,629

337,192

418,437

725,461

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

47,023

48,732

185,538

184,942

Impairment charge on intangible assets

18,126

20,275

Gain on sale of equity investments

(2,096)

(250,167)

(2,096)

(250,167)

Stock-based compensation expense

15,436

11,810

8,788

44,920

Provision for losses on trade and other accounts receivable

547

5,036

35,137

12,612

Benefit

from deferred income taxes

(4,784)

(589)

(52,977)

(4,057)

Equity in earnings of affiliates

(4,536)

(3,129)

(12,344)

(17,900)

Distributions from equity affiliates

5,949

3,556

16,002

71,469

Changes in unrecognized tax benefits

(6,516)

(1,594)

(24,881)

1,941

Other

10,876

7,806

5,012

5,684

Changes in operating assets and liabilities, net of acquisitions:

Accounts receivable

10,509

42,695

(189,349)

(72,689)

Inventories

(5,987)

(60,391)

(31,817)

14,702

Other current assets

45,267

13,057

(6,479)

(57,291)

Accounts payable and accrued expenses

68,662

141,284

224,273

160,851

Net cash provided by operating activities from continuing operations

345,105

295,298

593,519

820,478

Net cash provided by (used in) operating activities from discontinued operations

4,743

(2,738)

5,391

(166,391)

Net cash provided by operating activities

349,848

292,560

598,910

654,087

Cash flows from investing activities:

Purchases of fixed assets

(11,030)

(27,263)

(48,829)

(76,219)

Proceeds (payments) related to equity investments and business

(7,965)

1,214

(60,173)

(655,879)

acquisitions, net of cash acquired

Proceeds from sale of equity investment

2,020

296,751

14,020

307,251

Proceeds from (repayments to) loan to affiliate

208

265

(1,243)

16,713

Other

(4,296)

(1,927)

(18,794)

(14,175)

Net cash provided by (used in) investing activities from continuing operations

(21,063)

269,040

(115,019)

(422,309)

Net cash used in investing activities from discontinued operations

(2,064)

Net cash provided by (used in) investing activities

(21,063)

269,040

(115,019)

(424,373)

Cash flows from financing activities:

Net change in bank borrowings

(439,057)

(84,066)

45,082

(927,912)

Proceeds from issuance of long-term debt

501,421

741

Principal payments for long-term debt

(759)

(250,692)

(611,216)

(260,944)

Debt issuance costs

(196)

(3,879)

(391)

Debt extinguishment costs

(401)

Proceeds from issuance of stock upon exercise of stock options

Payments for repurchases of common stock

(200,000)

(73,789)

(525,000)

Payments for taxes related to shares withheld for employee taxes

(292)

(63)

(14,299)

(10,814)

Distribution received related to Animal Health Spin-off

1,120,000

Proceeds related to Animal Health Share Sale

361,090

Proceeds from (distributions to) noncontrolling shareholders

(3,891)

(1,931)

(7,886)

51,498

Acquisitions of noncontrolling interests in subsidiaries

(4,604)

(19,538)

(2,358)

Proceeds from (payments to) Henry Schein Animal Health Business

2,572

(2,738)

2,711

(169,295)

Net cash used in financing activities from continuing operations

(446,227)

(539,490)

(181,794)

(363,351)

Net cash provided by (used in) financing activities from discontinued operations

(4,743)

2,738

(5,391)

147,371

Net cash used in financing activities

(450,970)

(536,752)

(187,185)

(215,980)

Effect of exchange rate changes on cash and cash equivalents from continuing operations

9,875

5,993

18,382

14,394

Effect of exchange rate changes on cash and cash equivalents from discontinued operations

(2,240)

Net change in cash and cash equivalents from continuing operations

(112,310)

30,841

315,088

49,212

Net change in cash and cash equivalents from discontinued operations

(23,324)

Cash and cash equivalents, beginning of period

533,495

75,256

106,097

56,885

Cash and cash equivalents, end of period

421,185

106,097

421,185

106,097

-10-

Exhibit A - Fourth Quarter Sales

Henry Schein, Inc.

2020 Fourth Quarter

Sales Summary

(in thousands)

(unaudited)

Q4 2020 over Q4 2019

Global

Q4 2020

Q4 2019

Total Sales

Growth

Foreign

Exchange

Growth

Local

Currency

Growth

Acquisition

Growth

Local

Internal

Growth

Dental

1,846,372

1,722,154

7.2%

1.7%

5.5%

0.4%

5.1%

Medical

1,171,373

788,659

48.5%

0.3%

48.2%

0.0%

48.2%

Total Health Care Distribution

3,017,745

2,510,813

20.2%

1.3%

18.9%

0.3%

18.6%

Technology and value-added services

138,711

137,102

1.2%

0.7%

0.5%

1.2%

-0.7%

Total excluding Corporate TSA Revenue

3,156,456

2,647,915

19.2%

1.2%

18.0%

0.4%

17.6%

Corporate TSA revenues (1)

9,269

21,026

-55.9%

0.0%

-55.9%

0.0%

-55.9%

Total Global

3,165,725

2,668,941

18.6%

1.2%

17.4%

0.3%

17.1%

North America

Q4 2020

Q4 2019

Total Sales

Growth

Foreign

Exchange

Growth

Local

Currency

Growth

Acquisition

Growth

Local

Internal

Growth

Dental

1,058,367

1,061,077

-0.3%

0.1%

-0.4%

0.3%

-0.7%

Medical

1,137,313

769,135

47.9%

0.0%

47.9%

0.0%

47.9%

Total Health Care Distribution

2,195,680

1,830,212

20.0%

0.1%

19.9%

0.1%

19.8%

Technology and value-added services

119,456

117,608

1.6%

0.1%

1.5%

0.9%

0.6%

Total excluding Corporate TSA Revenue

2,315,136

1,947,820

18.9%

0.1%

18.8%

0.2%

18.6%

Corporate TSA revenues (1)

n/a

Total North America

2,315,136

1,947,820

18.9%

0.1%

18.8%

0.2%

18.6%

International

Q4 2020

Q4 2019

Total Sales

Growth

Foreign

Exchange

Growth

Local

Currency

Growth

Acquisition

Growth

Local

Internal

Growth

Dental

788,005

661,077

19.2%

4.3%

14.9%

0.7%

14.2%

Medical

34,060

19,524

74.5%

11.4%

63.1%

0.0%

63.1%

Total Health Care Distribution

822,065

680,601

20.8%

4.5%

16.3%

0.7%

15.6%

Technology and value-added services

19,255

19,494

-1.2%

4.4%

-5.6%

2.8%

-8.4%

Total excluding Corporate TSA Revenue

841,320

700,095

20.2%

4.6%

15.6%

0.6%

15.0%

Corporate TSA revenues (1)

9,269

21,026

-55.9%

0.0%

-55.9%

0.0%

-55.9%

Total International

850,589

721,121

18.0%

4.4%

13.6%

0.7%

12.9%

(1)

Corporate TSA revenues represents sales of certain

products to Covetrus under the transition services agreement

entered into in connection with the Animal

Health spin-off, which ended in December 2020.

-11-

Exhibit A - Full Year Sales

Henry Schein, Inc.

Full Year

2020

Sales Summary

(in thousands)

(unaudited)

Full Year

2020 over Full Year

2019

Global

Full Year 2020

Full Year 2019

Total Sales

Growth

Foreign

Exchange

Growth

Local

Currency

Growth

Acquisition

Growth

Local

Internal

Growth

Dental

5,912,593

6,415,865

-7.8%

-0.2%

-7.6%

0.4%

-8.0%

Medical

3,617,017

2,973,586

21.6%

0.0%

21.6%

0.9%

20.7%

Total Health Care Distribution

9,529,610

9,389,451

1.5%

-0.1%

1.6%

0.5%

1.1%

Technology and value-added services

514,258

515,085

-0.2%

0.1%

-0.3%

2.9%

-3.2%

Total excluding Corporate TSA Revenue

10,043,868

9,904,536

1.4%

-0.1%

1.5%

0.6%

0.9%

Corporate TSA revenues (1)

75,273

81,267

-7.4%

0.0%

-7.4%

0.0%

-7.4%

Total Global

10,119,141

9,985,803

1.3%

-0.1%

1.4%

0.6%

0.8%

North America

Full Year 2020

Full Year 2019

Total Sales

Growth

Foreign

Exchange

Growth

Local

Currency

Growth

Acquisition

Growth

Local

Internal

Growth

Dental

3,471,521

3,911,746

-11.3%

-0.1%

-11.2%

0.0%

-11.2%

Medical

3,514,670

2,894,137

21.4%

0.0%

21.4%

0.9%

20.5%

Total Health Care Distribution

6,986,191

6,805,883

2.6%

-0.1%

2.7%

0.4%

2.3%

Technology and value-added services

446,830

445,317

0.3%

-0.1%

0.4%

2.6%

-2.2%

Total excluding Corporate TSA Revenue

7,433,021

7,251,200

2.5%

0.0%

2.5%

0.5%

2.0%

Corporate TSA revenues (1)

4,098

n/a

Total North America

7,433,021

7,255,298

2.4%

-0.1%

2.5%

0.5%

2.0%

International

Full Year 2020

Full Year 2019

Total Sales

Growth

Foreign

Exchange

Growth

Local

Currency

Growth

Acquisition

Growth

Local

Internal

Growth

Dental

2,441,072

2,504,119

-2.5%

-0.5%

-2.0%

0.8%

-2.8%

Medical

102,347

79,449

28.8%

2.6%

26.2%

0.0%

26.2%

Total Health Care Distribution

2,543,419

2,583,568

-1.6%

-0.4%

-1.2%

0.7%

-1.9%

Technology and value-added services

67,428

69,768

-3.4%

0.9%

-4.3%

5.8%

-10.1%

Total excluding Corporate TSA Revenue

2,610,847

2,653,336

-1.6%

-0.4%

-1.2%

0.9%

-2.1%

Corporate TSA revenues (1)

75,273

77,169

-2.5%

0.0%

-2.5%

0.0%

-2.5%

Total International

2,686,120

2,730,505

-1.6%

-0.3%

-1.3%

0.8%

-2.1%

(1)

Corporate TSA revenues represents sales of certain

products to Covetrus under the transition services agreement

entered into in connection with the Animal

Health spin-off, which ended in December 2020.

-12-

###

Exhibit B

Henry Schein, Inc.

2020 Fourth Quarter and Full Year

Reconciliation of reported GAAP net income from continuing operations

and

diluted EPS from continuing operations attributable to Henry Schein,

Inc.

to non-GAAP net income from continuing operations and

diluted EPS from continuing operations attributable to Henry Schein,

Inc.

(in thousands, except per share data)

(unaudited)

Fourth Quarter

Full Year

2020

2019

Growth

2020

2019

Growth

Net Income from continuing operations attributable to Henry

Schein, Inc.

141,921

330,609

(57.1)

402,808

700,691

(42.5)

Diluted EPS from continuing operations attributable to Henry

Schein, Inc.

0.99

2.25

(56.0)

2.81

4.69

(40.1)

Non-GAAP Adjustments

Restructuring costs (credits) - Pre-tax (1)

4,380

(1,059)

32,093

14,705

Income tax expense (benefit) for restructuring costs (credits) (1)

(1,095)

265

(8,023)

(3,676)

Net gain on sale of equity investments (2)

(1,572)

(186,769)

(1,572)

(186,769)

Tax credit related to Animal Health spin-off (3)

(1,333)

Total non-GAAP adjustments to Net Income from continuing

operations

1,713

(187,563)

22,498

(177,073)

Non-GAAP adjustments to diluted EPS from continuing

operations

0.01

(1.28)

0.16

(1.19)

Non-GAAP Net Income from continuing operations attributable to

Henry Schein, Inc.

143,634

143,046

0.4

425,306

523,618

(18.8)

Non-GAAP diluted EPS from continuing operations attributable

to Henry Schein, Inc.

1.00

0.97

3.1

2.97

3.51

(15.4)

Management believes that non-GAAP financial measures

provide investors with useful supplemental information

about the financial

performance of our business, enable comparison of financial results

between periods where certain items may

vary independent of

business performance and allow for greater transparency

with respect to key metrics used by management

in operating our business.

These non-GAAP financial measures are

presented solely for informational and

comparative purposes and should not be regarded

as a

replacement for corresponding,

similarly captioned, GAAP measures.

Earnings per share numbers may not

sum due to rounding.

(1)

Represents Q4 2020 restructuring costs of $4,380,

net of $1,095 tax benefit, resulting in an after-tax effect of $3,285, and 2020

restructuring costs of $32,093, net of $8,023 tax benefit, resulting in an after-tax

effect of $24,070.

Represents Q4 2019 restructuring

credits of $1,059, net of $265 tax expense,

resulting in an after-tax effect of $794, and 2019 restructuring

costs of $14,705 net of

$3,676 tax benefit, resulting in an after-tax effect of $11,

029.

(2)

Represents a net after-tax gain on a sale of equity investments during

Q4 2020 and Q4 2019.

(3)

Represents a change in estimate of $1,333 to income tax expense related to a one-time

tax expense recorded in Q4 2018 as a result of

a reorganization of legal entities completed in preparation for the

Animal Health spin-off,

which was completed on February 7, 2019.