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Published: 2023-05-09 00:00:00 ET

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EX-99.1 2 exhibit991.htm PRESS RELEASE MAY 9, 2023 exhibit991

-1-

FOR IMMEDIATE RELEASE

HENRY SCHEIN REPORTS FIRST-QUARTER

2023 FINANCIAL RESULTS

●

First-quarter 2023 net sales of $3.1 billion decreased 3.8% compared with first-quarter 2022;

internal sales

increased 6.3% in local currencies excluding sales of personal protective equipment (PPE) products and

COVID-19 test kits

●

First-quarter GAAP diluted EPS of $0.91 compared with first-quarter 2022

GAAP diluted EPS of $1.30

●

First-quarter non-GAAP diluted EPS of $1.21 compared

with first-quarter 2022 non-GAAP diluted EPS of

$1.44

●

Updating full-year 2023 non-GAAP diluted EPS guidance to $5.18

to $5.35, reflecting an estimated $0.05 to

$0.10 first year dilution from the Biotech Dental acquisition

MELVILLE, N.Y.,

May 9, 2023 –

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

to office-based dental and medical practitioners, today reported financial results for the

first quarter ended April 1, 2023.

“We are pleased to report solid financial results for the first quarter of 2023 that are in-line with the expectations we

provided at the beginning of the year and reflect the good earnings

momentum in our underlying core businesses.

Market

trends stayed consistent with those we discussed during the previous quarter’s conference call, and as anticipated, our

results

continued to be impacted by decreased sales of PPE products and COVID-19

test kits. Excluding these product categories,

we achieved strong internal sales growth of 6.3% in local currencies.

Our financial results were also adversely impacted by

acquisition related expenses and foreign exchange,” said Stanley M. Bergman, Chairman

of the Board and Chief Executive

Officer of Henry Schein. “We are executing well on our BOLD +1 Strategic Plan, and the underlying fundamentals of our

core business remain solid.

“First quarter sales growth in our Dental business,

excluding PPE products,

reflects stable patient traffic.

Dental

merchandise sales were very good, and our dental equipment sales were

solid. Traditional equipment sales grew well, while

digital equipment sales continued to decrease.

“Our Technology and Value

-Added Services business had an excellent quarter. Growth in North America continued

to be driven by Dentrix and Dentrix Ascend cloud-based solutions and customers

upgraded

from our Easy Dental product.

International growth was supported by Dentally,

our cloud-based solution for outside the United States. We also saw growth

with our revenue cycle management insurance claims product driven by

the number of e-claims we processed and the

enhanced functionality of our electronic invoicing and reimbursement

solutions.

-2-

“Our Medical business achieved growth of approximately 4%,

excluding sales of PPE products and COVID-19 test

kits. We expect internal sales growth in our core Medical business to continue to grow, but at a slower pace than last year

given the prior year comparison resulting from the significant growth we

achieved last year,” concluded Mr. Bergman.

First-Quarter Financial Results

●

Total

net sales

for the quarter were $3.1 billion, a decrease of 3.8% compared with

the first quarter of 2022. The

3.8% decrease included a 3.7%

decrease in local currencies excluding acquisitions,

1.4% growth from acquisitions

and a 1.5%

decrease related to foreign currency exchange

. Sales of PPE products and COVID-19 test kits in the first

quarter were $201 million, a decrease of $287 million versus the prior-year

period. When excluding sales of PPE

products and COVID-19 test kits, first-quarter internal sales growth

in local currencies was 6.3% compared with the

prior-year period.

●

GAAP net income

for the quarter was $121 million, or $0.91 per diluted share, compared with

first-quarter 2022

GAAP net income of $181 million, or $1.30 per diluted share.

●

Non-GAAP net income

for the quarter was $161 million, or $1.21 per diluted share, compared with

first-quarter

2022 non-GAAP net income of $200 million, or $1.44 per diluted share

. First-quarter 2023 non-GAAP diluted EPS

excludes restructuring expenses of $30 million, or $0.16 per diluted share,

and amortization expense of acquired

intangible assets of $30 million pre-tax, or $0.14 per diluted share, and was

negatively impacted by:

●

an estimated decreased contribution of $0.24 per diluted share from sales

of PPE products and COVID-19

test kits compared with the first quarter last year.

●

acquisition-related expense of $0.04 per diluted share, compared with

the first quarter last year acquisition-

related expense of less than $0.01 per diluted share.

●

foreign currency exchange of approximately $0.02 per diluted share versus

the first quarter last year.

●

Global Dental sales

were $1.9 billion for the quarter, an increase of 3.8% compared with the prior-year period.

Internally generated sales increased 4.0% in local currencies and acquisitions

contributed 2.3% growth. This growth

was offset by a 2.5% decrease related to foreign currency exchange. The 4.0%

internal sales increase in local

currencies reflects a 1.6%

increase in North America and 7.6% growth internationally.

●

Global Dental consumable merchandise internal sales increased

by 4.0% in local currencies. Excluding

sales of PPE products,

internal sales growth was 8.4% in local currencies.

●

Global Dental equipment internal sales growth

was 3.9% in local currencies.

●

Global Medical sales

were $1.0 billion for the quarter, a decrease of 17.2% compared with the prior-year period.

Internally generated sales decreased 17.1% in local currencies,

while foreign currency exchange resulted in a

decrease of 0.1%. Internal sales increased 4.2% in local currencies when

excluding sales of PPE products and

COVID-19 test kits.

See Exhibit A for details of sales growth.

See Exhibit B for a reconciliation of GAAP net income and diluted

EPS to non-GAAP net income and diluted EPS.

-3-

●

Global Technology and Value

-Added Services sales

were $191 million for the quarter, an increase of 6.8%

compared with the prior-year period,

driven by the strength of Henry Schein One.

This included 6.5% internal sales

growth in local currencies and 1.5% growth from acquisitions,

offset by a 1.2% decrease related to foreign currency

exchange.

Stock Repurchase Plan

During the first quarter of 2023, the Company repurchased approximately

1.2 million shares of its common stock at

an average price of $81.70 per share, for a total of $100 million. The

impact of the repurchase of shares on first-quarter

diluted EPS was immaterial. At quarter-end, Henry Schein had approximately

$415 million authorized and available for

future stock repurchases.

2023 Financial Guidance

Guidance for 2023 is for current continuing operations as well as completed

acquisitions and does not include the

impact of future share repurchases, announced or potential future acquisitions,

integration and restructuring expenses, and

excludes amortization expense of acquired intangible assets.

This guidance also assumes that foreign currency exchange rates

remain generally consistent with current levels and that end markets remain

consistent with current market conditions. While

the recently closed Biotech Dental acquisition is now reflected within

our guidance, our recently announced acquisition of

S.I.N. Implant System is not.

●

2023 sales growth is expected to be approximately 1% to 3% over 2022,

unchanged from prior guidance.

●

2023 sales of PPE products are expected to decline about 20% to 25%,

unchanged from prior guidance.

●

2023 sales of COVID-19 test kits are now expected to decrease by approximately

65% to 70% from 2022 versus

prior guidance for a decrease of approximately 35% to 40%.

●

2023 non-GAAP operating margin is expected to be 10 to 15 basis points below 2022 non-GAAP

operating margin

of 8.2%, largely a result of lower PPE products and COVID-19 test kit sales and

profits, and acquisition-related

expenses. 2023 guidance reflects high single-digit to low double-digit

growth in non-GAAP operating income over

2022 when excluding the contribution from PPE products and COVID-19

test kits,

and acquisition-related expenses.

●

2023 non-GAAP diluted EPS attributable to Henry Schein, Inc.:

●

is now expected to be $5.18 to $5.35, reflecting growth of -4%

to -1% compared with 2022 non-GAAP diluted

EPS of $5.38, which also excludes amortization expense of acquired intangible

assets.

●

includes $0.05 to $0.10 dilution from the Biotech Dental acquisition, primarily

due to non-cash acquisition

accounting adjustments for inventory and acquisition-related expenses.

●

the impact on 2023 non-GAAP diluted EPS from lower contributions

to earnings from sales of PPE products and

COVID-19 test kits is estimated to be $0.35 to $0.40, unchanged

from prior guidance.

-4-

Adjustments to 2023 GAAP Diluted EPS

The Company is providing guidance for 2023 diluted EPS on a non-GAAP

basis, as noted above.

The Company is

not providing a reconciliation of its 2023 non-GAAP guidance

to the Company’s projected 2023 diluted EPS prepared on a

GAAP basis. This is because the Company is unable to provide without

unreasonable effort an estimate of integration and

restructuring costs related to an ongoing initiative to drive operating efficiencies,

including the corresponding tax effect that

will be included in the Company’s 2023 diluted EPS prepared on a GAAP basis. The inability to provide this

reconciliation is

due to the uncertainty and inherent difficulty of predicting the occurrence, magnitude,

financial impact and 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.

First-Quarter 2023 Conference Call Webcast

The Company will hold a conference call to discuss first-quarter 2023 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.

The Company will be posting slides that provide a summary of its first-quarter

2023

financial results on its website at

https://www.henryschein.com/us-en/Corporate/investor-presentations.aspx

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 22,000 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

300,000 branded products and Henry Schein corporate brand products

in our distribution centers.

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 32 countries and territories. The Company's sales

reached $12.6 billion in 2022, and

have grown at a compound annual rate of approximately 12.1 percent since Henry

Schein became a public company in 1995.

For more information, visit Henry Schein at www.henryschein.com, Facebook.com/HenrySchein,

Instagram.com/HenrySchein,

and Twitter.com/HenrySchein

-5-

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, including our Annual Report

on Form 10-K, 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”) products and COVID-19 related product

sales

and inventory levels, whether additional resurgences or variants of the virus will adversely

impact the resumption of normal

operations, whether supply chain disruptions will adversely impact our

business, the impact of integration and restructuring

programs as well as of any future acquisitions, general economic conditions

including exchange rates, inflation and recession,

and more generally current expectations regarding performance in current

and future periods.

Forward looking statements

also include the (i) ability of the Company to have continued access to a

variety of COVID-19 test types, and expectations

regarding COVID-19 test sales, demand and inventory levels, 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

and any variants thereof, as well as other disease outbreaks,

epidemics, pandemics, or similar wide-spread public health concerns

and other natural disasters; 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 (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; legal, regulatory, compliance, cybersecurity, 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; adverse changes in supplier rebates or other purchasing

incentives; risks related to the sale of corporate

brand products; effects of a highly competitive (including, without limitation, competition from

third-party online commerce

sites) and consolidating market; the 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 and domestic

macroeconomic and political conditions, including inflation, deflation,

recession, fluctuations in energy pricing and the value

of the U.S. dollar as compared to foreign currencies and changes to other

economic indicators, international trade agreements,

potential trade barriers and terrorism; 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 collection, storage and processing of

sensitive personal information or standards in electronic health records

or transmissions; changes in tax legislation; risks

related to product liability, intellectual property and other claims; litigation risks; new or unanticipated litigation

developments and the status of litigation matters; risks associated with

customs policies or legislative import restrictions;

cyberattacks or other privacy or data security breaches; risks associated with

our global operations; our dependence on our

senior management, employee hiring and retention, and our relationships

with customers, suppliers and manufacturers; 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 except as required by law.

-6-

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 the

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

Ronald N. South

Senior Vice President and Chief Financial Officer

ronald.south@henryschein.com

(631) 843-5500

Graham Stanley

Vice President, Investor Relations and Strategic Financial Project Officer

graham.stanley@henryschein.com

(631) 843-5500

Media

Ann Marie Gothard

Vice President, Global Corporate Media Relations

annmarie.gothard@henryschein.com

(631) 390-8169

(TABLES TO FOLLOW)

-7-

HENRY SCHEIN, INC.

CONDENSED CONSOLIDATED

STATEMENTS

OF INCOME

(in millions,

except share and per share data)

(unaudited)

Three Months Ended

April 1,

March 26,

2023

2022

Net sales

3,060

3,179

Cost of sales

2,094

2,206

Gross profit

966

973

Operating expenses:

Selling, general and administrative

717

682

Depreciation and amortization

Restructuring costs

Operating income

175

244

Other income (expense):

Interest income

Interest expense

(14)

(7)

Other, net

(1)

Income before taxes, equity in earnings of affiliates and noncontrolling interests

163

239

Income taxes

(39)

(57)

Equity in earnings of affiliates

Net income

128

186

Less: Net income attributable to noncontrolling interests

(7)

(5)

Net income attributable to Henry Schein, Inc.

121

181

Earnings per share attributable to Henry Schein, Inc.:

Basic

0.92

1.31

Diluted

0.91

1.30

Weighted-average common

shares outstanding:

Basic

131,365,789

137,296,581

Diluted

133,039,886

139,237,472

-8-

HENRY SCHEIN, INC.

CONDENSED CONSOLIDATED

BALANCE SHEETS

(in millions, except share data)

April 1,

December 31,

2023

2022

(unaudited)

ASSETS

Current assets:

Cash and cash equivalents

126

117

Accounts receivable, net of allowance for credit losses of $65 and $65

1,470

1,442

Inventories, net

1,918

1,963

Prepaid expenses and other

438

466

Total current assets

3,952

3,988

Property and equipment, net

396

383

Operating lease right-of-use assets

280

284

Goodwill

2,917

2,893

Other intangibles, net

548

587

Investments and other

479

472

Total assets

8,572

8,607

LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND

STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable

855

1,004

Bank credit lines

236

103

Current maturities of long-term debt

Operating lease liabilities

Accrued expenses:

Payroll and related

231

314

Taxes

156

132

Other

566

592

Total current liabilities

2,172

2,224

Long-term debt

1,021

1,040

Deferred income taxes

Operating lease liabilities

274

275

Other liabilities

368

361

Total liabilities

3,875

3,936

Redeemable noncontrolling interests

570

576

Commitments and contingencies

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,

131,196,783 outstanding on April 01, 2023 and

131,792,817 outstanding on December 31, 2022

Additional paid-in capital

Retained earnings

3,684

3,678

Accumulated other comprehensive loss

(213)

(233)

Total Henry Schein, Inc. stockholders' equity

3,472

3,446

Noncontrolling interests

655

649

Total stockholders' equity

4,127

4,095

Total liabilities, redeemable noncontrolling

interests and stockholders' equity

8,572

8,607

-9-

HENRY SCHEIN, INC.

CONDENSED CONSOLIDATED

STATEMENTS

OF CASH FLOWS

(in millions)

(unaudited)

Three Months Ended

April 1,

March 26,

2023

2022

Cash flows from operating activities:

Net income

128

186

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

Depreciation and amortization

Non-cash restructuring charges

Stock-based compensation expense

Provision for losses on trade and other accounts receivable

Provision for (benefit from) deferred income taxes

(3)

Equity in earnings of affiliates

(4)

Distributions from equity affiliates

Changes in unrecognized tax benefits

Other

(1)

(7)

Changes in operating assets and liabilities, net of acquisitions:

Accounts receivable

(20)

Inventories

(9)

Other current assets

Accounts payable and accrued expenses

(243)

(188)

Net cash provided by operating activities

Cash flows from investing activities:

Purchases of fixed assets

(31)

(19)

Payments related to equity investments and business acquisitions,

net of cash acquired

(1)

(5)

Proceeds from loan to affiliate

Other

(9)

(7)

Net cash used in investing activities

(39)

(27)

Cash flows from financing activities:

Net change in bank borrowings

132

Proceeds from issuance of long-term debt

Principal payments for long-term debt

(1)

(53)

Proceeds from issuance of stock upon exercise of stock options

Payments for repurchases and retirement of common stock

(100)

Payments for taxes related to shares withheld for employee taxes

(30)

(26)

Distributions to noncontrolling shareholders

(4)

(5)

Acquisitions of noncontrolling interests in subsidiaries

(8)

(10)

Net cash provided by (used in) financing activities

(62)

Effect of exchange rate changes on cash and cash equivalents

Net change in cash and cash equivalents

Cash and cash equivalents, beginning of period

117

118

Cash and cash equivalents, end of period

126

-10-

Exhibit A - First Quarter Sales

Henry Schein, Inc.

2023 First Quarter

Sales Summary

(in millions)

(unaudited)

Q1 2023 over Q1 2022

Local Currency Growth

Global

Q1 2023

Q1 2022

Local Internal

Growth

Acquisition

Growth

Total Local

Currency

Growth

Foreign

Exchange

Impact

Total Sales

Growth

Dental Merchandise

1,487

1,428

4.0%

2.5%

6.5%

-2.4%

4.1%

Dental Equipment

411

400

3.9%

1.5%

5.4%

-2.6%

2.8%

Total Dental

1,898

1,828

4.0%

2.3%

6.3%

-2.5%

3.8%

Medical

971

1,172

-17.1%

0.0%

-17.1%

-0.1%

-17.2%

Total Health Care Distribution

2,869

3,000

-4.3%

1.4%

-2.9%

-1.5%

-4.4%

Technology and Value

-Added Services

191

179

6.5%

1.5%

8.0%

-1.2%

6.8%

Total Global

3,060

3,179

-3.7%

1.4%

-2.3%

-1.5%

-3.8%

Local Currency Growth

North America

Q1 2023

Q1 2022

Local Internal

Growth

Acquisition

Growth

Total Local

Currency

Growth

Foreign

Exchange

Impact

Total Sales

Growth

Dental Merchandise

896

868

1.3%

2.5%

3.8%

-0.5%

3.3%

Dental Equipment

248

237

2.6%

2.5%

5.1%

-0.9%

4.2%

Total Dental

1,144

1,105

1.6%

2.5%

4.1%

-0.6%

3.5%

Medical

951

1,150

-17.3%

0.0%

-17.3%

0.0%

-17.3%

Total Health Care Distribution

2,095

2,255

-8.1%

1.3%

-6.8%

-0.3%

-7.1%

Technology and Value

-Added Services

166

156

5.4%

1.8%

7.2%

-0.1%

7.1%

Total North America

2,261

2,411

-7.2%

1.3%

-5.9%

-0.3%

-6.2%

Local Currency Growth

International

Q1 2023

Q1 2022

Local Internal

Growth

Acquisition

Growth

Total Local

Currency

Growth

Foreign

Exchange

Impact

Total Sales

Growth

Dental Merchandise

591

560

8.1%

2.6%

10.7%

-5.2%

5.5%

Dental Equipment

163

5.8%

0.0%

5.8%

-5.2%

0.6%

Total Dental

754

723

7.6%

2.0%

9.6%

-5.2%

4.4%

Medical

-6.3%

0.0%

-6.3%

-5.3%

-11.6%

Total Health Care Distribution

774

745

7.2%

1.9%

9.1%

-5.2%

3.9%

Technology and Value

-Added Services

13.5%

0.0%

13.5%

-8.4%

5.1%

Total International

799

768

7.4%

1.8%

9.2%

-5.2%

4.0%

Note: Certain prior period amounts have been reclassified to

conform to the current period presentation.

-11-

###

Exhibit B

Henry Schein, Inc.

2023 First Quarter

Reconciliation of reported GAAP net income and diluted EPS attributable to

Henry Schein, Inc.

to non-GAAP net income and diluted EPS attributable to Henry Schein,

Inc.

(in millions, except per share data)

(unaudited)

First Quarter

2023

2022

Growth

Net income attributable to Henry Schein, Inc.

121

181

(32.8)

Diluted EPS attributable to Henry Schein, Inc.

0.91

1.30

(30.0)

Non-GAAP Adjustments

Restructuring costs, net of tax (1)

Acquisition intangible amortization, net of tax (2)

Non-GAAP adjustments to net income

Non-GAAP adjustments to diluted EPS

0.30

0.14

Non-GAAP net income attributable to Henry Schein, Inc.

161

200

(19.6)

Non-GAAP diluted EPS attributable to Henry Schein, Inc.

1.21

1.44

(16.0)

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.

Net income growth rates are

based on actual values and may not

recalculate due to rounding.

Amounts may not sum due to rounding.

(1)

Restructuring Costs

The following table presents details of our restructuring costs:

First Quarter

2023

2022

Restructuring costs - pre-tax, as reported

Income tax benefit

(8)

Amount attributable to noncontrolling interests

(1)

Restructuring costs, net

Q1 2023 restructuring costs primarily consisted of employee severance

and costs related to the exit of facilities.

(2)

Acquisition Intangible Amortization

The following table presents details of amortization of acquired intangible

assets:

First Quarter

2023

2022

Acquisition intangible amortization - pre-tax, as reported

Income tax benefit

(7)

(8)

Amount attributable to noncontrolling interests

(4)

Acquisition intangible amortization, net