Henry Schein 2009 Annual Report Download - page 112

HENRY SCHEIN, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
(In thousands, except share and per share data)
100
Note 17 – Quarterly Information (Unaudited) – (Continued)
March 29, 2008
(1) (2) (3)
June 28, 2008
(1) (2) (3)
September 27,
2008 (1) (2) (3)
December 27,
2008 (1) (2) (3)
Net sales ..................................................... 1,518,243$ 1,636,782$ 1,644,209$ 1,581,179$
Gross profit ................................................ 448,427 485,366 475,594 464,908
Operating income ....................................... 85,665 113,796 115,414 104,411
Income from continuing operations ............ 55,144 72,023 72,818 69,291
Net income ................................................. 54,690 71,701 72,766 62,217
Amounts attributable to
Henry Schein, Inc.:
Income from continuing operations ............ 51,767$ 64,924$ 67,548$ 63,108$
Loss from discontinued operations,
net of tax ................................................ (327) (354) (60) (7,149)
Net income ................................................. 51,440 64,570 67,488 55,959
Earnings per share attributable to
Henry Schein, Inc.:
From continuing operations
per share:
Basic ...................................................... 0.58$ 0.72$ 0.76$ 0.71$
Diluted ................................................... 0.56 0.70 0.74 0.71
From net income:
Basic ...................................................... 0.58$ 0.72$ 0.76$ 0.63$
Diluted ................................................... 0.56 0.70 0.74 0.63
Quarters ended
(1) Adjusted to reflect the effects of discontinued operations.
(2) On August 5, 2009, we completed the sale of a wholesaler of dental consumables for aggregate consideration of $14.2
million, of which $13.2 million has been received as of December 26, 2009. As a result of this sale, included in operating
results from discontinued operations for 2009 is a net gain, net of tax, of $2.6 million or $0.03 per diluted share.
During November 2008, we reached a decision to exit the wholesale ultrasound business and dispose of such operations
during the fourth quarter of 2008. This business was a component of our healthcare distribution business. We have
classified the operating results of this business as discontinued operations in the accompanying consolidated statements
of income for all periods presented. In connection with this decision, we assessed our long-lived assets for impairment,
which resulted in the recording of an impairment charge of $11.2 million ($7.3 million after-tax) for the write-down of
all long-lived assets, including goodwill of $6.7 million.
On November 5, 2008, we announced certain actions to reduce operating costs. These actions included the elimination of
approximately 300 positions from our global operations, or approximately 2.5% of our workforce at that time, and the closing
of several smaller facilities. During the years ended December 26, 2009 and December 27, 2008, we incurred one-time
restructuring costs of approximately $3.0 million (approximately $2.1 million after taxes) and $23.2 million (approximately
$16.0 million after taxes), respectively, consisting of employee severance pay and benefits, facility closing costs, representing
primarily lease termination and asset write-off costs, and outside professional and consulting fees directly related to the
restructuring plan.
(3) Adjusted to reflect the effects of the adoption of provisions contained within ASC Topic 470-20, “Debt with Conversion
and Other Options.”
We experience fluctuations in quarterly earnings. As a result, we may fail to meet or exceed the
expectations of securities analysts and investors, which could cause our stock price to decline.