Business Context and Reporting Period
Company: Henry Schein, Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: June 4, 2018
Event: Regulation FD Disclosure regarding an upcoming appearance by Chairman and CEO Stanley M. Bergman on CNBC's "Mad Money" to discuss projected earnings growth for the remainder of fiscal 2018.
Key Financial Metrics
The filing does not provide specific historical revenue, profit, cash flow, margin, debt, or liquidity figures for the current period. It focuses exclusively on forward-looking non-GAAP earnings per share (EPS) guidance.
- 2018 Non-GAAP Diluted EPS Guidance: Projected growth of 12-15% compared to 2017 non-GAAP diluted EPS.
- Non-GAAP Adjustments: Excludes costs related to restructuring and the spin-off and merger of the Henry Schein Animal Health business.
- GAAP Reconciliation: Not provided due to the uncertainty of predicting the timing and financial impact of restructuring and spin-off expenses.
Material Changes
This filing does not report material changes to historical financial results compared to prior periods. It serves to reiterate guidance previously disclosed in the earnings release on May 8, 2018, and to clarify the methodology regarding non-GAAP measures in anticipation of public commentary.
Guidance, Outlook, and Risks
Management Commentary and Outlook
Management expects to reaffirm the 12-15% non-GAAP diluted EPS growth projection for fiscal 2018. The company emphasizes that non-GAAP measures exclude items not representative of underlying business performance, such as restructuring charges and transaction expenses related to the Animal Health spin-off.
Risks and Contingencies
The filing includes a comprehensive list of risk factors that could cause actual results to differ materially from forward-looking statements, including:
- Highly competitive and consolidating market conditions.
- Dependence on third-party manufacturers, suppliers, and sales personnel.
- Global macro-economic conditions and currency fluctuations.
- Regulatory changes in the healthcare industry and data privacy laws.
- Cybersecurity risks and information system disruptions.
- Execution risks associated with the Henry Schein One joint venture and the spin-off/merger of the Animal Health business with Vets First Choice.
Investor Verification Checklist
- Verify the specific 2017 non-GAAP diluted EPS baseline to calculate the absolute 2018 target range.
- Review the May 8, 2018 earnings release for the original disclosure of the 12-15% guidance.
- Monitor the status and closing timeline of the Henry Schein Animal Health spin-off and merger with Vets First Choice.
- Assess the potential magnitude of restructuring charges and transaction expenses that will impact GAAP results but are excluded from the non-GAAP guidance.
- Review the company's most recent 10-K or 10-Q for detailed risk factors regarding the Henry Schein One joint venture.