Henry Schein 2005 Annual Report Download - page 4

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increases in our income from continuing operations
($9 million to $162 million, a 33% CAGR) and earnings
from continuing operations per diluted share ($0.35 to
$1.82, a 18% CAGR), which drove our market capitalization
from $400 million at our initial public offering to nearly
$4 billion at the end of 2005 (a 25% CAGR). This 1995
financial data excludes special management compensation
and does not reflect subsequent restatements for pooling
of interest transactions.
During the past decade, the countries where we have
operations grew from 8 to 19, as the number of customers
we serve increased from 200,000 to more than 500,000. To
serve these customers, Team Schein grew from 2,600
members to nearly 11,000.
Our Company’s 10 years of success is a result of the spirit
of partnership with our customers. Each customer has an
individual set of needs that we strive to meet every day,
and the power of this customer partnership can be seen
in our strong financial performance.
Financial and operational successes
We posted record net sales of $4.6 billion in 2005, an
increase of 18.9% over the prior year, including 8.4%
internal growth in local currencies. Our operating margin
expanded by 68 basis points over 2004 while income from
continuing operations and earnings per diluted share from
continuing operations both increased by 30%. Each of our
four business units posted market share gains for the year,
with sales of $1.9 billion for Dental, $1.4 billion for
Medical, $1.3 billion for International, and $88.2 million
for Technology and Value-Added Services.
The financial success of our units was supported by
our operational achievements for the year. Approximately
99% of items ordered in the U.S. and Canada are
shipped without back ordering and are shipped on
the same business day the order is received. We
successfully implemented global corporate programs in
human resources, information technology, inventory
management, distribution, and other key operational
Our Company’s 10 years of
success is a result of the spirit of
partnership with which we
approach each of our 500,000
customer relationships.