Henry Schein shines in Q4, full year

Henry Schein CEO Stanley Bergman.

An impressive rise in adjusted earnings per share highlighted 2015 fourth-quarter and year-end financials released Wednesday by Henry Schein Inc.

For 4Q 2015, which ended Dec. 31, the global healthcare-products provider reported EPS of $1.67, a 7.1 percent year-over-year jump. The aggressively expanding Melville company credited the quarterly increase – and a year-end EPS of $5.96, up 9.6 percent from 2014’s per-share earnings – to strong revenues across its Dental, Medical, Animal Health and Technology operating segments.

Henry Schein reported fourth-quarter net income of $129.9 million, which was actually 2.3 percent below the net income reported in 4Q 2014, though the company’s quarterly revenues soared past $2.85 billion, a 5.5 percent year-over-year jump.

While unfavorable foreign currency exchange rates stunted overall revenue growth, the year-over-year quarterly revenue spike was fueled by a 10.3 percent growth in local currencies, the company said, as well as single-digit increases in revenues from internal sales and revenues from acquisitions.

While it’s overall international sales dropped 2.1 percent in 2015, Henry Schein experienced solid 9.7 percent annual sales growth in its North American markets, driving total 2015 revenues up 2.5 percent, past $10.63 billion, the company reported.

Henry Schein Chairman and CEO Stanley Bergman said he was “delighted” by his company’s 4Q 2015 sales growth, which eclipsed analysts’ expectations.

“We believe we gained market share on an overall basis during the quarter both in North America and internationally,” Bergman said. “We are especially pleased with our worldwide internal sales growth in local currencies.”

The company reported fourth-quarter revenues of $1.439 billion from global Dental sales, a year-over-year quarterly climb of 1.5 percent; $756.2 million from global Animal Health sales, a 3.4 percent year-over-year increase; $561.6 million from worldwide Medical sales, up 21.6 percent year-over-year; and $93.8 million in Technology and Value-Added Services sales around the world, a 2.8 percent fourth-quarter improvement.

The Technology segment’s growth would have been bigger, the company noted, if not for 1.7 percent of revenues lost to unfavorable currency exchanges.

Bergman noted “local internal sales growth at multiyear high levels across our dental business” and an Animal Health segment that “continued to benefit from strategic acquisitions.”

Global Medical sales climbed thanks primarily to “continued success with large practices and integrated delivery networks,” the CEO added, while key acquisitions – including majority shares in Pennsylvania-based health informatics specialist Vetstreet and Australian software provider RxWorks Inc., both of which were announced in 2015 and completed in January – bolstered the Technology/Value-Added Service segment.

“We are particularly excited about the potential to pair our practice-management software solutions with the data-analytics capabilities from Vetstreet,” Bergman noted.

Overall, the CEO credited Henry Schein’s strong 2015 performance on its “long-standing strategy of organic growth complemented by strategic acquisitions,” of which there were many in 2015. In addition to announcing the Vetstreet and RxWorks deals, Henry Schein picked up majority shares in Italian dental-equipment distributor Dental Trey, Germany’s Scil Animal Care Co. and Scandinavian veterinary-products manufacturer Jorgen Kruuse A/S, along with a 50 percent share of Romanian animal-care manufacturer Maravet.

The company also announced a distribution deal with global med-tech provider Medtronic, which selected Henry Schein Medical as the exclusive distributor of its diabetes medications.

All told, the Fortune 500 company now has operations or affiliations in 33 countries. With those $10.63 billion in reported global sales, the self-billed “world’s largest provider of healthcare products and services” remains Long Island’s largest public company, ranked by revenue.