MELVILLE, New York--Henry Schein, a provider of health-care products and services to office-based dental, medical, and animal health practitioners, has reported record financial results for the quarter ended June 30, 2012.

Net sales for the second quarter of 2012 were $2.2 billion, an increase of 3.3% compared with the second quarter of 2011. This consists of 6.5% growth in local currencies and a 3.2% decline related to foreign currency exchange. In local currencies, internally generated sales increased 4.6% and acquisition growth was 1.9%.

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Net income attributable to Henry Schein for the second quarter of 2012 was $98.1 million or $1.08 per diluted share. Excluding restructuring costs of $3.4 million pre-tax or $0.03 per diluted share, net income attributable to Henry Schein for the second quarter of 2012 was $100.3 million or $1.11 per diluted share, an increase of 6.2% and 9.9%, respectively, compared with the second quarter of 2011.

"While we are pleased with the performance of each of our business units during the quarter, our financial results were adversely affected by foreign currency exchange, general economic conditions, and a difficult prior-year comparison related to increased sales from the biennial IDS trade show last year. Despite these factors we are pleased to affirm our financial guidance for 2012," commented Stanley M. Bergman, chairman and chief executive officer of Henry Schein.

"In recent weeks, we completed a number of strategic acquisitions in our global dental, animal health, and medical businesses that further our strategic priority of global growth in important market segments, and new geographies. Through these transactions, we are able to reach more practitioners with more products and services than ever before."

Global dental sales of $1.2 billion declined 1.3%, consisting of 2.6% growth in local currencies and a 3.9% decline related to foreign currency exchange. In local currencies, internally generated sales increased 2.1% and acquisition growth was 0.5%. The 2.1% internal growth in local currencies included 3.2% growth in North America and 0.5% international growth.

"North America dental growth is highlighted by the strongest equipment sales growth in eight quarters. We believe that we continued to gain market share in our global dental business," commented Bergman.

"Dental specialty markets are important components of our growth strategy, and we recently strengthened our global orthodontics business with the acquisition of Ortho Technology. We also acquired Accord, which establishes our presence in Thailand and can serve as an anchor for further expansion into Southeast Asia."

Global animal health sales of $586.3 million increased 11.4%, including 14.9% growth in local currencies and a 3.5% decline related to foreign currency exchange. In local currencies, internally generated sales increased 8.7% and acquisition growth was 6.2%. The 8.7% internal growth in local currencies included 14.2% growth in North America and 3.4% international growth.

"Our animal health business continued to make impressive gains in market share, in particular in North America," commented Bergman.

"During the second quarter, we completed our acquisition of AUV Veterinary Services. This transaction brings us a leading presence in the Netherlands and Belgium, and advances our Pan-European strategy of providing animal health practitioners across the continent with the products and services needed to operate more efficient practices and deliver high-quality care."

Global medical sales of $361.1 million increased 5.9%, including 6.6% growth in local currencies, all internally generated, and a 0.7% decline related to foreign currency exchange. The 6.6% internal growth in local currencies included 7.2% growth in North America and a 2.2% decline in international.

"More than 90% of our global medical sales are from North America, and our continued impressive growth in that region was largely due to increased penetration of integrated delivery networks, larger group practices, and ambulatory surgery centers, as well as solid growth in sales of pharmaceutical products and medical equipment," remarked Bergman.

"Our acquisition of Modern Laboratory Services last month reflects our commitment to the clinical laboratory market and strengthens our position in the western U.S., which is an area of exciting growth for us."

Global technology and value-added services sales of $68.2 million increased 9.8%, including 10.6% growth in local currencies and a 0.8% decline related to foreign currency exchange. In local currencies, internally generated sales increased 8.6% and acquisition growth was 2.0%. The 8.6% internal growth in local currencies included 9.0% growth in North America and 6.2% international growth.

"Solid technology and value-added services internal sales were bolstered by strategic acquisitions," added Bergman.

"More than 85% of revenue from this business is derived from North America, and quarterly results included particular strength in recurring revenue streams on both the technology and financial services sides of the business."

The company announced that it repurchased approximately 1.6 million shares of its common stock during the second quarter at an average price of $75.09 per share, or approximately $118.3 million. The impact of the repurchase of shares on second quarter diluted EPS was less than $0.01. At the close of the second quarter, Henry Schein had $143.1 million authorized for future repurchases of its common stock.

For the first half of 2012, net sales of $4.3 billion increased 5.4% compared with the first half of 2011. This increase includes 7.4% growth in local currencies and a 2.0% decline related to foreign currency exchange. In local currencies, internally generated sales increased 6.2% and acquisition growth was 1.2%.

Net income attributable to Henry Schein for the first half of 2012 was $178.8 million or $1.98 per diluted share. Excluding restructuring costs of $15.2 million pre-tax or $0.12 per diluted share, net income attributable to Henry Schein for the first half of 2012 was $189.4 million or $2.09 per diluted share, an increase of 10.8% and 14.2%, respectively, compared with the first half of 2011.

Henry Schein affirmed 2012 financial guidance, as follows:

* For 2012, the company expects diluted EPS attributable to Henry Schein to be $4.30 to $4.40, which represents growth of 8% to 11% compared with 2011 results.
*The company notes that the 2012 fiscal year includes one less week than 2011.
*Guidance for 2012 diluted EPS attributable to Henry Schein excludes restructuring costs.
*Guidance for 2012 diluted EPS attributable to Henry Schein is for current continuing operations, as well as completed or previously announced acquisitions, and does not include the impact of potential future acquisitions, if any.

For more information, visit the Henry Schein Web site at www.henryschein.com.

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