Page 1

HENRY SCHEIN SOLUTIONS FOR HEALTH CARE PROFESSIONALS Henry Schein Reports Record Third - Quarter 2021 Financial Results From Continuing Operations November 2 , 2021 • Total net sales of $ 3.2 billion up 11.9 % versus prior year • GAAP diluted EPS from continuing operations of $ 1.15 versus prior - year GAAP diluted EPS from continuing operations of $ 0.99 • Non - GAAP diluted EPS from continuing operations of $ 1.10 versus prior - year non - GAAP diluted EPS from continuing operations of $ 1.03 • Increases 2021 guidance for non - GAAP diluted EPS from continuing operations to a range of $ 4.27 to $ 4.35 • Introduces preliminary guidance for 2022 non - GAAP diluted EPS from continuing operations reflecting mid to high single - digit growth over 2021 guidance for non - GAAP diluted EPS from continuing operations MELVILLE , N.Y .-- ( BUSINESS WIRE ) -- Nov . 2 , 2021-- Henry Schein , Inc. ( Nasdaq : HSIC ) , the world's largest provider of health care solutions to office - based dental and medical practitioners , today reported record third - quarter financial results from continuing operations . Results from continuing operations exclude contributions from Henry Schein's former Animal Health business , which was spun off in February 2019 to form a new publicly traded company , Covetrus ( Nasdaq : CVET ) . Total net sales for the quarter ended September 25 , 2021 , were $ 3.2 billion , up 11.9 % compared with the third quarter of 2020. The 11.9 % increase included 7.2 % internal growth in local currencies , 3.9 % growth from acquisitions and 0.8 % growth related to foreign currency exchange . ( See Exhibit A for details of sales growth . ) GAAP net income attributable to Henry Schein , Inc. from continuing operations for the third quarter of 2021 was 162.3 million , or $ 1.15 per diluted share , compared with prior - year GAAP net income attributable to Henry Schein , Inc. from continuing operations of $ 141.7 million , or $ 0.99 per diluted share . Non - GAAP net income from continuing operations for the third quarter of 2021 was $ 154.8 million , or $ 1.10 per diluted share , compared with prior - year non - GAAP net income from continuing operations of $ 147.0 million , or $ 1.03 per diluted share . Exhibit B provides a reconciliation of GAAP net income and diluted EPS from continuing operations to non - GAAP net income and diluted EPS from continuing operations . " Today we reported record third - quarter financial results , driven by a keen focus on execution by Team Schein and steady patient traffic , resulting in excellent momentum across the entire company . We believe that patient traffic was generally similar to the previous quarter for our dental customers and is improving for our medical customers . Compared with the year - ago quarter , Henry Schein's worldwide internal sales in local currencies increased a robust 7.2 % , or 6.3 % excluding sales of personal protective equipment ( PPE ) and COVID - 19 related products , " said Stanley M. Bergman , Chairman of the Board and Chief Executive Officer of Henry Schein . " Our third quarter financial results are solid with growth in diluted EPS from continuing operations of 16.2 % on a GAAP basis and 6.8 % on a non - GAAP basis . " Global Dental sales for the third quarter of 2021 of $ 1.8 billion increased 10.5 % versus the prior - year period . In local currencies , internally generated sales increased 5.2 % with 3.9 % growth from acquisitions and 1.4 % growth related to foreign currency exchange . The 5.2 % internal growth in local currencies included growth of 4.7 % in North America and 5.9 % internationally . Global Dental consumable merchandise internal sales growth was 2.9 % in local currencies . Excluding sales of PPE and COVID - 19 related products , internal sales growth in local currencies was 4.8 % . In North America , dental consumable merchandise internal sales in local currencies increased 3.9 % , and 5.7 % when excluding sales of PPE and COVID - 19 related products , and dental equipment internal sales in local currencies increased 7.8 % . Internationally , dental consumable merchandise internal sales in local currencies increased 1.3 % , and 3.5 % when excluding sales of PPE and COVID - 19 related products , and dental equipment internal sales in local currencies increased 23.9 % . " North America dental consumable merchandise internal sales growth in local currencies with and without PPE and COVID - 19 related products was solid in the third quarter . Consumable merchandise sales continued to improve , which we believe were bolstered by a steady flow of patient traffic , " said Mr. Bergman . " North America dental equipment sales growth reflected strong sales of high - technology equipment and modest growth of traditional equipment sales which remain impacted by equipment manufacturing and office construction delays . Overall gains in consumable merchandise and equipment sales in North America and International markets reflect the continuing recovery of underlying markets . " Global Medical sales for the third quarter of 2021 of $ 1.2 billion increased 15.5 % versus the comparable period last year , consisting of 13.1 % internal growth in local currencies and 2.4 % growth from acquisitions . There was no impact related to foreign currency exchange . Excluding sales of PPE and COVID - 19 related products , internal sales in local currencies increased 8.3 % . " Global Medical internal sales growth in local currencies for the third quarter was once again very strong , with and without sales of PPE and COVID - 19 related products . Trends in the physician office , ambulatory surgery center and alternate care markets all were positive , and we have increased the number of accounts we serve and further penetrated existing accounts , " said Mr. Bergman . Global Technology and Value - Added Services sales of $ 168.6 million increased 21.9 % versus the prior - year quarter and included 6.3 % internal sales growth in local currencies , 14.7 % growth from acquisitions and 0.9 % growth related to foreign currency exchange . " Global Technology and Value - Added Services sales growth was driven by the acquisitions we made over the past year software analytics and by expanding our range of dental practice solutions . We also saw solid sales growth in Dentrix technical support , our Dentrix Ascend cloud solution and our Software of Excellence business in the UK , " added Mr. Bergman . Stock Repurchase Plan During the third quarter of 2021 , the Company repurchased approximately 650,000 shares of its common stock at an average price of $ 76.77 per