Henry Schein 2003 Annual Report Download - page 2

Henry Schein, Inc.
ABOUTHENRYSCHEIN
Henry Schein, Inc., a FORTUNE 500®company, is the largest distributor of
healthcare products and services to office-based healthcare practitioners in the
combined North American and European markets. The Company's sales
reached a record $3.4 billion in 2003.
Recognized for its excellent customer service and highly competitive prices,
Henry Schein’s four business groups—Dental, Medical, International, and
Technology—serve more than 425,000 customers worldwide. Its customers
include:
■Approximately 75% of the estimated 135,000 U.S. and Canadian office-
based dental practices and 15,000 dental laboratories;
■Over 45% of the estimated 230,000 U.S. office-based physician practices,
as well as surgical centers and other alternate-care sites;
■Over 70% of the estimated 24,000 U.S. veterinary clinics;
■Approximately 170,000 office-based dental, medical, and veterinary practices
overseas, primarily in Western Europe, Australia, and New Zealand; and
■Government and other institutions providing healthcare services.
Henry Schein operates through a centralized and automated distribution
network that serves customers in more than 125 countries. The Company
offers a comprehensive selection of over 90,000 national and Henry Schein
private-brand products.
Henry Schein also offers a wide range of innovative value-added practice
solutions, including such leading practice-management software systems as
DENTRIX®and Easy Dental®for dental practices, and AVIMark®for veterinary
clinics, which were installed in over 50,000 practices; and ARUBA®, Henry
Schein's electronic catalog and ordering system.
With headquarters in Melville, N.Y., Henry Schein employs nearly 8,000
people in 16 countries.
3,353.8
2,558.2
2,381.7
2,284.5
$ 3,000
$ 2,500
$ 2,000
$ 1,500
$ 1,000
$ 500
0
99 00 01 02 03
2,825.0
$ 3,500
7.0
7%
6%
5%
4%
3%
2%
1%
0
99 00 01 02 03
5.8
5.4
5.2
6.9
3.09
2.59
$ 2.50
$ 2.00
$ 1.50
$ 1.00
$ .50
0
99 00 01 02 03
2.01
1.67
1.44
$ 3.00
$ 3.50 35%
30%
25%
20%
15%
10%
5%
099 00 01 02 03
34.1
22.0
23.5
27.2
34.0
128,843
134,669
$ 200
$ 150
$ 100
$ 50
$ 25
0 99 00 01 02 03
56,493
152,994
190,911
NET SALES OPERATING EARNINGS PER DILUTED SHARE RETURN ON OPERATING CASH FLOW
MARGIN FROM CONTINUING OPERATIONS COMMITTED CAPITAL FROM CONTINUING OPERATIONS
($ in millions) (in dollars) ($ in thousands)
Note: Operating Margin and Earnings Per Diluted Share from Continuing Operations have been adjusted to exclude certain one-time items. See “Reconciliation of Certain
Operating Results” on page 15. Return on Committed Capital represents operating income over average committed capital (committed capital equals inventory plus trade
accounts receivables and net property, plant, and equipment less trade accounts payables).