Henry Schein 2003 Annual Report Download - page 62

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HENRY SCHEIN, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(In thousands, except share and per share data)
Note 15–Quarterly Information (Unaudited) (Continued)
(1) During the third quarter of 2003, we recognized a $2.0 million loss, net of tax, from the sale of a discontinued operation (see Note 7).
The effect of this loss on discontinued operation was $(0.04) on basic and diluted earnings per share for the third quarter of 2003.
(2) In the first quarter of 2003, we recorded a $726 pre-tax ($454 after-tax) gain related to a real estate transaction. This gain was
included in the "Other, net" line on the consolidated statements of income.
(3) In the third quarter of 2002, we recorded a $1.4 million pre-tax ($890 after-tax) gain related to a real estate transaction. This gain was
included in the "Other, net" line on the consolidated statements of income. In addition, in the fourth quarter of 2002, we recorded a
net credit of $734 related to a reversal of previously accrued merger, integration and restructuring costs.
(4) Diluted earnings per share calculations for each quarter include the effect of dilutive stock options, which are added to the quarter’s
weighted-average number of common shares outstanding for each period. As a result of this dilutive adjustment, as well as changes
in the number of common shares outstanding from quarter to quarter, the sum of the quarters does not equal the full year diluted
earnings per common share amount.
Our business is subject to seasonal and other quarterly influences. Net sales and operating profits are generally higher in the third and
fourth quarters due to timing of seasonal product sales, software and equipment sales, year-end promotions and purchasing patterns of
office-based healthcare practitioners and are generally lower in the first quarter primarily due to the increased purchases in the prior
quarter.
Quarterly results also may be materially affected by a variety of other factors, including the timing of acquisitions and related costs, timing
of sales, special promotional campaigns, fluctuations in exchange rates and adverse weather conditions.
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