Henry Schein Inc, Melville, NY, has reported record financial results for the quarter that ended June 28, 2008. Net sales for the second quarter of 2008 were $1.6 billion, an increase of 18.6% compared with the second quarter of 2007. The company had previously announced an initiative of reducing sales of certain lower-margin pharmaceutical products. Excluding sales of those products, internal net sales growth in local currencies was 6.6%.
Income from continuing operations for the second quarter of 2008 was $65.5 million, or $0.71 per diluted share, up 20.3% and 18.3%, respectively, compared with the second quarter of 2007.
"Second quarter financial results reflect a strong contribution from our International Group, as well as solid growth in our Dental Group," said Stanley M. Bergman, chairman and CEO of Henry Schein. "These results illustrate Henry Schein’s ability to deliver consistent sales and earnings growth."
Dental Group sales of $660 million increased 9.7%. Dental consumable merchandise sales increased 7.9% (6.3% internal growth and 1.6% acquisition growth), and dental equipment sales and service revenues were up 11.0% (9.9% internal growth and 1.1% acquisition growth).
"Our Dental Group continues to gain market share in consumable merchandise and in equipment," Bergman said. "We recorded another quarter of double-digit growth in equipment sales and service revenues, highlighted by gains in high-tech products, including acceleration in sales of the E4D CAD/CAM product compared with the first quarter."
Henry Schein announced that it repurchased 602,000 shares of common stock during the second quarter of 2008 for a total purchase price of nearly $32 million. Approximately $109 million remains authorized for future common stock repurchases. The impact of the share repurchases during the quarter was immaterial to diluted EPS.
Henry Schein affirms 2008 financial guidance, as follows: 2008 diluted EPS is expected to be $2.93 to $3.00, representing growth of 14% to 16% compared with 2007.
