Henry Schein 2009 Annual Report Download - page 41

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29
ITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Cautionary Note Regarding Forward-Looking Statements
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 are identified by
the use of such terms as “may,” “could,” “expect,” “intend,” “believe,” “plan,” “estimate,” “forecast,”
“project,” “anticipate” or other comparable terms.
Risk factors and uncertainties that could cause actual results to differ materially from current and
historical results include, but are not limited to: decreased customer demand and changes in vendor credit
terms; disruptions in financial markets; general economic conditions; effects of a highly competitive market;
changes in the healthcare industry; changes in regulatory requirements; risks from expansion of customer
purchasing power and multi-tiered costing structures; risks associated with our international operations;
fluctuations in quarterly earnings; our dependence on third parties for the manufacture and supply of our
products; transitional challenges associated with acquisitions, including the failure to achieve anticipated
synergies; financial risks associated with acquisitions; regulatory and litigation risks; the dependence on our
continued product development, technical support and successful marketing in the technology segment; risks
from disruption to our information systems; our dependence upon sales personnel, manufacturers and
customers; our dependence on our senior management; possible increases in the cost of shipping our products
or other service issues with our third-party shippers; risks from rapid technological change; possible volatility
of the market price of our common stock; certain provisions in our governing documents that may discourage
third-party acquisitions of us; and changes in tax legislation. 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.
Executive Level Overview
We believe we are the largest distributor of healthcare products and services primarily to office-based
healthcare practitioners. We serve more than 600,000 customers worldwide, including dental practitioners
and laboratories, physician practices and animal health clinics, as well as government and other institutions.
We believe that we have a strong brand identity due to our more than 77 years of experience distributing
healthcare products.
We are headquartered in Melville, New York, employ more than 12,500 people (of which over 5,500 are
based outside the United States) and have operations in the United States, Australia, Austria, Belgium,
Canada, China, the Czech Republic, France, Germany, Hong Kong SAR, Ireland, Israel, Italy, Luxembourg,
the Netherlands, New Zealand, Portugal, Spain, Switzerland and the United Kingdom. We also have affiliates
in Iceland, Saudi Arabia and the United Arab Emirates.
We have established strategically located distribution centers to enable us to better serve our customers
and increase our operating efficiency. This infrastructure, together with broad product and service offerings
at competitive prices, and a strong commitment to customer service, enables us to be a single source of supply
for our customers’ needs. Our infrastructure also allows us to provide convenient ordering and rapid, accurate
and complete order fulfillment.