Henry Schein 2005 Annual Report Download - page 19

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NOTES FOR SELECTED FINANCIAL DATA:
(1) Adjusted to reflect the effects of discontinued operations.
(2) During 2004, we recorded a non-recurring $13.2 million pre-tax ($8.4 million post-tax) charge related to the
Fluvirin®contract with Chiron Corporation. The effect that this charge had on earnings per share for the year
ended December 25, 2004 was $(0.10).
(3) Consists of consumable products, small equipment, laboratory products, large dental equipment, branded and
generic pharmaceuticals, vaccines, surgical products, diagnostic tests, infection-control products, and vitamins.
(4) Consists of products sold in the United States and Canada.
(5) Consists of products sold in the United States’ medical and veterinary markets.
(6) Consists of products sold in the dental, medical and veterinary markets, primarily in Europe.
(7) Consists of practice management software and other value-added products and services, which are sold
primarily to healthcare providers in the United States and Canada.
The following table sets forth, for the periods indicated, a reconciliation of operating income and income from continuing operations adjusted to reflect the effects of discontinued
operations, as reported to adjusted operating income and adjusted income from continuing operations. The diluted earnings from continuing operations per share and weighted-average
common shares outstanding information reflects a two-for-one stock split effected in the form of a dividend that became effective on February 28, 2005.
Years ended
December 25, December 27, December 28, December 30,
2004 2003 2002 1995
(in thousands, except per share data)
Operating income (loss), as reported $ 209,750 $ 232,296 $ 189,853 $ (1,036)
Adjustments:
Merger, integration, and restructuring credits - - (734) -
Special management compensation costs - - - 20,797
One-time charge related to influenza vaccine contract 13,246 - - -
Adjusted operating income 222,996 232,296 189,119 19,761
Adjusted operating margin 5.7% 7.3% 7.1% 3.2%
Income (loss) from continuing operations, as reported 125,336 138,074 113,707 (10,216)
Adjustments, net of tax:
Merger, integration, and restructuring credits - - (734) -
Special management compensation costs - - - 19,623
Gains on real estate transactions - (454) (890) -
One-time charge related to influenza vaccine contract 8,358 - - -
Adjusted income from continuing operations $ 133,694 $ 137,620 $ 112,083 $ 9,407
Diluted earnings (loss) from continuing operations per share:
As reported $ 1.40 $ 1.53 $ 1.27 $ (0.38)
Adjusted 1.50 1.53 1.25 0.35
Diluted weighted-average common shares outstanding: 89,462 89,975 89,744 26,894
Non-GAAP Disclosures
USE OF NON-GAAP MEASURES:
The above information includes financial measures that are not calculated and presented in accordance
with accounting principles generally accepted in the United States ("GAAP"). The above table reconciles
operating income, income from continuing operations and diluted earnings (loss) from continuing
operations per share, our most directly comparable measure calculated and presented in accordance
with GAAP, to comparable amounts as adjusted to eliminate the effect of one-time items.
We eliminated the effect of such one-time items to assist in evaluating the underlying operational
performance of our business, excluding such one-time items, 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.