Henry Schein 2014 Annual Report Download - page 14

NON-GAAP DISCLOSURES
The following table sets forth, for the applicable periods, a reconciliation of operating income, net income attributable to Henry Schein, Inc., and diluted earnings per share adjusted to reflect the effects
of restructuring costs and other adjustments.
USE OF NON-GAAP MEASURES:
The information (left) includes financial measures that are not calculated and presented in
accordance with accounting principles generally accepted in the United States (“GAAP”).
The table (left) reconciles operating income, income attributable to Henry Schein, Inc., and
diluted earnings per share attributable to Henry Schein, Inc., our most directly comparable
measure calculated and presented in accordance with GAAP, to comparable amounts as
adjusted to eliminate the effect of restructuring costs.
We eliminated the effect of restructuring costs to assist in evaluating the underlying operational
performance of our business, excluding such costs, over the periods presented. We believe that
this presentation is appropriate and facilitates such an evaluation by us, investors and analysts.
These measures should be considered supplemental to, and not a substitute for or superior to,
financial measures calculated in accordance with GAAP.
NOTES:
(1) During 2012, we recorded restructuring costs of $15.2 million pre-tax ($10.5 million
post-tax). During 2010, we recorded restructuring costs of $12.3 million pre-tax ($8.3 million
post-tax). The effect that these charges had on earnings per diluted share attributable
to Henry Schein, Inc. was ($0.12) and ($0.09), respectively.
(2) During 2013, we reduced the remaining valuation allowance of $13.4 million on the deferred
tax asset associated with a net operating loss carryforward outside of the United States. The
effect that this transaction had on earnings per diluted share attributed to Henry Schein, Inc.
was $0.15.
(3) Represents a loss on divestiture in 2013 of a noncontrolling interest in a dental wholesale
distributor in the Middle East. The effect that this transaction had on earnings per diluted
share attributable to Henry Schein, Inc. was ($0.14).
(4) In February 2013, we repaid the then outstanding debt related to the Henry Schein Animal
Health, formerly Butler Schein Animal Health, transaction. As part of this transaction, we
recorded a one-time interest charge of $6.2 million pre-tax ($2.7 million post-tax) related to
the accelerated amortization of deferred financing costs. The effect that this transaction had
on earnings per diluted share attributed to Henry Schein, Inc. was ($0.03).
Years Ended
December 28, December 29,
2013 2012
Operating income, as reported $ 677,054 $ 618,961
Operating margin, as reported 7.1% 6.9%
Adjustments:
Restructuring costs (1) – $ 15,192
Adjusted operating income $ 677,054 $ 634,153
Adjusted operating margin 7.1% 7.1%
Net income attributable to Henry Schein, Inc.:
As reported $ 431,554 $ 388,076
Adjustments, net of tax:
Restructuring costs (1) – $ 10,537
Foreign tax benet (2) $ (13,398) –
Loss on sale of equity investment (3) $ 12,535 –
December 25,
2010
$ 521,131
6.9%
$ 12,285
$ 533,416
7.1%
$ 325,789
$ 8,260
–
–
–
$ 334,049
$ 3.49
$ 3.58
93,268
Accelerated amortization of deferred nancing costs (4) $ 2,679 –
Adjusted income attributable to Henry Schein, Inc.: $ 433,370 $ 398,613
Diluted earnings per share attributable to Henry Schein, Inc.:
As reported $ 4.93 $ 4.32
Adjusted $ 4.95 $ 4.44
Diluted weighted-average common shares outstanding: 87,622 89,823
(in thousands, except per share data)
COMMON STOCK
Henry Schein Common Stock trades on the NASDAQ® Stock Market under the symbol “HSIC.”
ANNUAL MEETING OF SHAREHOLDERS
Our Annual Meeting of Shareholders will be held on June 22, 2015 at 10:00 a.m. EDT at The Melville Marriott Long Island,
located at 1350 Walt Whitman Road, Melville, New York 11747.
SHAREHOLDER REPORTS AND INVESTOR INQUIRIES
For shareholder inquiries, including requests for quarterly and annual reports, contact our Investor Relations department at [phone],
or e-mail your request to [email protected]. Printed materials can also be requested through the Company’s website.
FORM 10-K
Our Annual Report on Form 10-K for the scal year ended December 27, 2014 has been led with the SEC and is available free of charge through
our Internet website, www.henryschein.com. Stockholders may also obtain a copy of the Form 10-K upon written request to Henry Schein, Inc.,
135 Duryea Road, Melville, New York 11747, Attn: Investor Relations, via e-mail at [email protected] or facsimile at [phone]. In response
to such request, the Company will furnish without charge the Form 10-K including nancial statements, nancial schedules and a list of exhibits.
INDEPENDENT AUDITORS
BDO USA, LLP
100 Park Avenue, New York, New York 10017
LEGAL COUNSEL
Proskauer Rose, LLP
Eleven Times Square, New York, New York 10036
STOCK TRANSFER AGENT
For address changes, account cancellation, registration changes and lost stock certicates, please contact:
Continental Stock Transfer & Trust Company
17 Battery Place, 8th Floor, New York, New York 10004
[phone]
HENRY SCHEIN 2014