Henry Schein, Inc. (HSIC) has reported 23.73 percent rise in profit for the quarter ended Apr. 01, 2017. The company has earned $140.75 million, or $1.76 a share in the quarter, compared with $113.75 million, or $1.37 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $140.75 million, or $1.76 a share compared with $116.80 million or $1.41 a share, a year ago. Revenue during the quarter grew 7.74 percent to $2,922.95 million from $2,712.96 million in the previous year period. Gross margin for the quarter contracted 52 basis points over the previous year period to 28.15 percent. Total expenses were 93.36 percent of quarterly revenues, down from 93.51 percent for the same period last year. This has led to an improvement of 14 basis points in operating margin to 6.64 percent.
Operating income for the quarter was $193.97 million, compared with $176.19 million in the previous year period.
"We believe that the markets we serve are generally healthy and are growing, and that our global Dental, Animal Health, and Medical groups all continued to gain market share during the quarter,” said Stanley M. Bergman, chairman of the Board and chief executive officer of Henry Schein. “We are affirming guidance for 2017 diluted EPS that represents growth of 16% to 18% compared to 2016 GAAP diluted EPS, or growth of 8% to 10% compared to 2016 non-GAAP diluted EPS."
For financial year 2017, the company projects diluted earnings per share to be in the range of $7.17 to $7.30.
Operating cash flow remains negativeHenry Schein, Inc. has spent $52.59 million cash to meet operating activities during the quarter as against cash outgo of $77.80 million in the last year period. The company has spent $34.68 million cash to meet investing activities during the quarter as against cash outgo of $71 million in the last year period.
Cash flow from financing activities was $83.66 million for the quarter, down 42.46 percent or $61.72 million, when compared with the last year period.
Cash and cash equivalents stood at $62.89 million as on Apr. 01, 2017, down 12.18 percent or $8.73 million from $71.61 million on Mar. 26, 2016.
Working capital declines
Henry Schein, Inc. has witnessed a decline in the working capital over the last year. It stood at $1,106.83 million as at Apr. 01, 2017, down 13.77 percent or $176.67 million from $1,283.50 million on Mar. 26, 2016. Current ratio was at 1.48 as on Apr. 01, 2017, down from 1.65 on Mar. 26, 2016.
Cash conversion cycle (CCC) has decreased to 35 days for the quarter from 70 days for the last year period. Days sales outstanding went down to 40 days for the quarter compared with 42 days for the same period last year.
Days inventory outstanding has decreased to 35 days for the quarter compared with 71 days for the previous year period. At the same time, days payable outstanding went down to 40 days for the quarter from 43 for the same period last year.
Debt increases substantially
Henry Schein, Inc. has witnessed an increase in total debt over the last one year. It stood at $1,398.75 million as on Apr. 01, 2017, up 26.28 percent or $291.10 million from $1,107.65 million on Mar. 26, 2016. Total debt was 20.44 percent of total assets as on Apr. 01, 2017, compared with 16.78 percent on Mar. 26, 2016. Debt to equity ratio was at 0.50 as on Apr. 01, 2017, up from 0.38 as on Mar. 26, 2016. Interest coverage ratio deteriorated to 16.97 for the quarter from 24.72 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
