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Henry Schein Reports Record Second Quarter 2019 Financial Results From Continuing Operations

MELVILLE, N.Y.--(BUSINESS WIRE)--

  • GAAP diluted EPS from continuing operations of $0.78, up 8.3% over prior-year GAAP diluted EPS from continuing operations
  • Non-GAAP diluted EPS from continuing operations of $0.84, up 10.5% over prior-year non-GAAP diluted EPS from continuing operations
  • Company provides 2019 GAAP diluted EPS from continuing operations guidance range representing year-over-year growth of 18% to 23%; affirms 2019 non-GAAP diluted EPS from continuing operations guidance range representing year-over-year growth of 7% to 10%

Henry Schein, Inc. (HSIC), the world’s largest provider of health care solutions to office-based dental and medical practitioners, today reported record second 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.

Net sales from continuing operations for the quarter ended June 29, 2019, were $2.4 billion, an increase of 5.7% compared with the second quarter of 2018. The 5.7% increase consisted of 7.8% growth in local currencies and a 2.1% decline related to foreign currency exchange. In local currencies, internally generated sales increased 3.5% and growth from acquisitions was 4.3%. Excluding approximately $23.9 million in low-margin corporate revenues from product sales to Covetrus under the transition services agreement entered into in connection with the Animal Health spin-off, internal sales growth in local currencies was approximately 2.4% (see Exhibit A for details of sales growth).

Net income attributable to Henry Schein, Inc. from continuing operations for the second quarter of 2019 was $116.8 million, or $0.78 per diluted share, compared with prior-year net income from continuing operations of $110.6 million, or $0.72 per diluted share. Non-GAAP net income from continuing operations for the second quarter of 2019 was $125.7 million, or $0.84 per diluted share, compared with non-GAAP net income from continuing operations of $117.0 million, or $0.76 per diluted share, for the second quarter of 2018. Non-GAAP results for the second quarter of 2019 and 2018 exclude certain costs noted in Exhibit B, which provides a reconciliation of GAAP net income and diluted EPS from continuing operations to non-GAAP net income and diluted EPS from continuing operations.

“We are pleased to deliver solid year-over-year growth in earnings per share from continuing operations in the second quarter of 8.3% on a GAAP basis and 10.5% on a non-GAAP basis. This growth reflects our progress with infrastructure optimization as we position Henry Schein for continued gains in the global dental and medical markets. Softness in North America Dental and Technology and Value-Added Services sales was offset by solid growth in dental sales in the DACH region, dental specialty sales and medical sales,” said Stanley M. Bergman, Chairman of the Board and Chief Executive Officer of Henry Schein.

“Although we believe second quarter growth in the U.S. dental end market was slower than in recent quarters, we note that market growth rates in any particular quarter may vary, and we had a difficult comparable in the prior year. We affirm our belief that the global dental and medical markets remain generally stable, and that we are well positioned to continue to grow our presence in the end markets we serve.”

Dental sales of $1.6 billion decreased 0.7%, consisting of 2.1% growth in local currencies and a 2.8% decline related to foreign currency exchange. In local currencies, internally generated sales increased 0.7% and growth from acquisitions was 1.4%. The 0.7% internal growth in local currencies included 0.3% growth in North America and 1.3% growth internationally.

“In North America, second quarter dental consumables internal sales growth of 1.3% in local currencies compares with a prior-year quarter that had strong sales growth of 4.7%, and is reflective of relatively low end market growth, yet we believe Henry Schein grew slightly faster than the market. Dental equipment internal sales declined by 2.9% in local currencies in the second quarter, mainly due to a decline in high-tech equipment sales,” commented Mr. Bergman.

“Internationally, dental consumables internal sales in local currencies grew by 2.3% and dental equipment internal sales in local currencies declined by 2.0%,” Mr. Bergman continued. “While we generated solid double-digit equipment sales growth in the second quarter in Germany and surrounding countries following the International Dental Show in March, this was offset by significantly lower sales in Brazil related to a change in our business model.”

Medical sales of $697.6 million increased 13.6%, consisting of 13.8% growth in local currencies and a 0.2% decline related to foreign currency exchange. In local currencies, internally generated sales increased 7.6% and growth from acquisitions was 6.2%.

“We are pleased with Medical internal sales growth of 7.6% in local currencies during the second quarter,” remarked Mr. Bergman. “Solid organic growth was complemented by our recent acquisition of North American Rescue. We believe our Medical group is well-positioned with large group practices, independent physician offices and alternate sites of care, with strong customer relationships in each category contributing to our growth.”

Technology and Value-Added Services sales from continuing operations of $125.1 million increased 39.9%, consisting of 41.2% growth in local currencies and a 1.3% decline related to foreign currency exchange. In local currencies, internally generated sales declined by 1.1% and growth from acquisitions was 42.3%. Growth from acquisitions was driven by the formation of Henry Schein One in the third quarter of 2018. Beginning in the third quarter of 2019, sales from Henry Schein One will be a component of internal sales growth.

“North America Technology and Value-Added Services internal sales growth in local currencies declined by 1.8% on an as-reported basis. When normalizing for product switches from direct to agency sales and an ongoing transition of our technology platform to a cloud-based SaaS model, internal sales growth in local currencies increased by 0.7%. The year-over-year growth rate was negatively impacted by a decline in dental equipment sales, which led to lower financial services revenue.

“Internationally, internal Technology and Value-Added Services sales increased by 1.9% in local currencies. We are excited about the foundation we are building with Henry Schein One to deliver end-to-end management and marketing systems to improve digital dental practice workflow and the entire patient experience so that our customers build more successful and efficient practices,” said Mr. Bergman.

Stock Repurchase Plan

The Company repurchased approximately 1.2 million shares of its common stock during the second quarter at an average price of $64.95 per share, for a total of approximately $77 million. The impact of the repurchase of shares on second quarter 2019 diluted EPS was immaterial. At the end of the second quarter of 2019, Henry Schein had approximately $173 million authorized and available for future stock repurchases.

Year-to-Date Results

Net sales from continuing operations for the first half of 2019 were $4.8 billion, an increase of 4.8% compared with the first half of 2018. This consisted of 7.2% growth in local currencies and a decline of 2.4% related to foreign currency exchange. In local currencies, internally generated sales increased 3.9% and growth from acquisitions was 3.3%.

Net income attributable to Henry Schein, Inc. from continuing operations for the first half of 2019 was $235.2 million, or $1.56 per diluted share, compared with net income from continuing operations of $222.2 million, or $1.44 per diluted share in the first half of 2018. Non-GAAP net income from continuing operations for the first half of 2019 was $246.3 million, or $1.64 per diluted share, compared with non-GAAP net income from continuing operations of $230.6 million, or $1.50 per diluted share, for the first half of 2018. Non-GAAP results for the first half of 2019 and 2018 exclude certain items noted in Exhibit B, which provides a reconciliation of GAAP net income and diluted EPS from continuing operations to non-GAAP net income and diluted EPS from continuing operations.

Restructuring Program

Henry Schein previously disclosed a comprehensive restructuring initiative designed to increase profitability by improving business efficiencies, reducing redundancies and maximizing the Company's infrastructure. The Company recorded a pretax restructuring charge in the second quarter of 2019 of $11.9 million, or $0.06 per diluted share. For the first half of 2019, Henry Schein recorded a pretax restructuring charge of $16.6 million, or $0.08 per diluted share. These charges primarily include severance pay and facility closing costs. This restructuring program is now complete and we do not expect to record any additional restructuring costs in the second half of 2019.

2019 EPS Guidance

For 2019, Henry Schein today provided GAAP financial guidance and affirmed non-GAAP financial guidance. The Company’s Animal Health business was spun off to shareholders as of February 7, 2019, and that business is classified as a discontinued operation for all current and prior periods presented. Guidance is as follows:

  • 2019 diluted EPS from continuing operations attributable to Henry Schein, Inc. is expected to be $3.31 to $3.43. This guidance reflects growth of 18% to 23% compared with 2018 GAAP diluted EPS from continuing operations of $2.80.
  • 2019 non-GAAP diluted EPS from continuing operations attributable to Henry Schein, Inc. is expected to be $3.38 to $3.50, reflecting growth of 7% to 10% compared with 2018 non-GAAP diluted EPS from continuing operations of $3.17. Our outlook for 2019 non-GAAP diluted EPS from continuing operations excludes $0.08 of restructuring expenses and a $0.01 credit to income tax expense related to the animal health spin-off. 2018 non-GAAP diluted EPS from continuing operations excluded certain expenses and benefits, netting to a charge of $0.37 per diluted share, as reflected in Henry Schein’s fourth quarter and full year 2018 earnings press release.
  • Guidance for 2019 GAAP and non-GAAP diluted EPS attributable to Henry Schein, Inc. 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. Guidance also assumes foreign exchange rates that are generally consistent with current levels.

Second Quarter 2019 Conference Call Webcast

The Company will hold a conference call to discuss second quarter 2019 financial results today, beginning at 10:00 a.m. Eastern time. Individual investors are invited to listen to the conference call through Henry Schein’s website at www.henryschein.com. In addition, a replay will be available beginning shortly after the call has ended.

About Henry Schein, Inc.

Henry Schein, Inc. (HSIC) is a solutions company for health care professionals powered by a network of people and technology. With approximately 19,000 Team Schein Members worldwide, the Company's network of trusted advisors provides more than 1 million customers globally with more than 300 valued solutions that improve operational success and clinical outcomes. Our Business, Clinical, Technology, and Supply Chain solutions help office-based dental and medical practitioners work more efficiently so they can provide quality care more effectively. These solutions also support dental laboratories, government and institutional health care clinics, as well as other alternate care sites.

Henry Schein operates through a centralized and automated distribution network, with a selection of more than 120,000 branded products and Henry Schein private-brand products in stock, as well as more than 180,000 additional products available as special-order items.

A FORTUNE 500 Company and a member of the S&P 500® and the Nasdaq 100® indexes, Henry Schein is headquartered in Melville, N.Y., and has operations or affiliates in 32 countries. The Company's sales from continuing operations reached $9.4 billion in 2018, and have grown at a compound annual rate of approximately 13 percent since Henry Schein became a public company in 1995.

For more information, visit Henry Schein at www.henryschein.com, Facebook.com/HenrySchein, and @HenrySchein on Twitter.

Cautionary Note Regarding Forward-Looking Statements and Use of Non-GAAP Financial Information

In accordance with the "Safe Harbor" provisions of the Private Securities Litigation Reform Act of 1995, we provide the following cautionary remarks regarding important factors that, among others, could cause future results to differ materially from the forward-looking statements, expectations and assumptions expressed or implied herein. All forward-looking statements made by us are subject to risks and uncertainties and are not guarantees of future performance. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance and achievements or industry results to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These statements include EPS guidance and are generally identified by the use of such terms as "may," "could," "expect," "intend," "believe," "plan," "estimate," "forecast," "project," "anticipate" or other comparable terms. A full discussion of our operations and financial condition, including factors that may affect our business and future prospects, is contained in documents we have filed with the United States Securities and Exchange Commission, or SEC, and will be contained in all subsequent periodic filings we make with the SEC. These documents identify in detail important risk factors that could cause our actual performance to differ materially from current expectations.

Risk factors and uncertainties that could cause actual results to differ materially from current and historical results include, but are not limited to: effects of a highly competitive and consolidating market; our dependence on third parties for the manufacture and supply of our products; our dependence upon sales personnel, customers, suppliers and manufacturers; our dependence on our senior management; fluctuations in quarterly earnings; risks from expansion of customer purchasing power and multi-tiered costing structures; increases in shipping costs for our products or other service issues with our third-party shippers; general global macro-economic conditions; risks associated with currency fluctuations; risks associated with political and economic uncertainty; disruptions in financial markets; volatility of the market price of our common stock; changes in the health care industry; implementation of health care laws; failure to comply with regulatory requirements and data privacy laws; risks associated with our global operations; transitional challenges associated with acquisitions, dispositions and joint ventures, including the failure to achieve anticipated synergies/benefits; financial and tax risks associated with acquisitions, dispositions and joint ventures; litigation risks; new or unanticipated litigation developments; the dependence on our continued product development, technical support and successful marketing in the technology segment; our dependence on third parties for certain technologically advanced components; increased competition by third party online commerce sites; risks from disruption to our information systems; cyberattacks or other privacy or data security breaches; certain provisions in our governing documents that may discourage third-party acquisitions of us; and changes in tax legislation. The order in which these factors appear should not be construed to indicate their relative importance or priority.

We caution that these factors may not be exhaustive and that many of these factors are beyond our ability to control or predict. Accordingly, any forward-looking statements contained herein should not be relied upon as a prediction of actual results. We undertake no duty and have no obligation to update forward-looking statements.

Included within the press release are non-GAAP financial measures that supplement the Company’s Consolidated Statements of Income prepared under generally accepted accounting principles (GAAP). These non-GAAP financial measures adjust the Company’s actual results prepared under GAAP to exclude certain items. In the schedules attached to this press release, the non-GAAP measures have been reconciled to and should be considered together with the Consolidated Statements of Income. Management believes that non-GAAP financial measures provide investors with useful supplemental information about the financial performance of our business, enable comparison of financial results between periods where certain items may vary independent of business performance and allow for greater transparency with respect to key metrics used by management in operating our business. These non-GAAP financial measures are presented solely for informational and comparative purposes and should not be regarded as a replacement for corresponding, similarly captioned, GAAP measures.

HENRY SCHEIN, INC.

CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per share data)

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

June 29,

 

June 30,

 

June 29,

 

June 30,

 

 

2019

 

2018

 

2019

 

2018

 

 

 

 

 

 

 

 

 

Net sales

 

$

2,447,827

 

 

$

2,316,032

 

 

$

4,808,095

 

 

$

4,589,482

Cost of sales

 

 

1,680,396

 

 

 

1,597,704

 

 

 

3,288,974

 

 

 

3,152,025

Gross profit

 

 

767,431

 

 

 

718,328

 

 

 

1,519,121

 

 

 

1,437,457

Operating expenses:

 

 

 

 

 

 

 

 

Selling, general and administrative

 

 

593,218

 

 

 

552,723

 

 

 

1,167,826

 

 

 

1,106,937

Restructuring costs

 

 

11,925

 

 

 

8,497

 

 

 

16,566

 

 

 

11,172

Operating income

 

 

162,288

 

 

 

157,108

 

 

 

334,729

 

 

 

319,348

Other income (expense):

 

 

 

 

 

 

 

 

Interest income

 

 

3,654

 

 

 

3,724

 

 

 

8,425

 

 

 

7,177

Interest expense

 

 

(12,785

)

 

 

(17,235

)

 

 

(29,086

)

 

 

(34,139

)

Other, net

 

 

(1,416

)

 

 

(437

)

 

 

(1,835

)

 

 

(1,187

)

Income from continuing operations before taxes, equity in earnings of affiliates and noncontrolling interests

 

151,741

 

 

 

143,160

 

 

 

312,233

 

 

 

291,199

Income taxes

 

 

(35,880

)

 

 

(33,879

)

 

 

(75,362

)

 

 

(70,021

)

Equity in earnings of affiliates

 

 

5,556

 

 

 

5,310

 

 

 

8,186

 

 

 

8,130

Net income from continuing operations

 

 

121,417

 

 

 

114,591

 

 

 

245,057

 

 

 

229,308

Income (loss) from discontinued operations

 

 

(2,221

)

 

 

32,918

 

 

 

(11,217

)

 

 

66,832

Net Income

 

 

119,196

 

 

 

147,509

 

 

 

233,840

 

 

 

296,140

Less: Net income attributable to noncontrolling interests

 

 

(4,664

)

 

 

(3,955

)

 

 

(9,891

)

 

 

(7,138

)

Less: Net (income) loss attributable to noncontrolling interests from discontinued operations

 

 

-

 

 

 

(2,342

)

 

 

366

 

 

 

(7,572

)

Net income attributable to Henry Schein, Inc.

 

$

114,532

 

 

$

141,212

 

 

$

224,315

 

 

$

281,430

Amounts attributable to Henry Schein Inc.:

 

 

 

 

 

 

 

 

Continuing operations

 

$

116,753

 

 

$

110,636

 

 

$

235,166

 

 

$

222,170

Discontinued operations

 

 

(2,221

)

 

 

30,576

 

 

 

(10,851

)

 

 

59,260

Net income attributable to Henry Schein, Inc.

 

$

114,532

 

 

$

141,212

 

 

$

224,315

 

 

$

281,430

 

 

 

 

 

 

 

 

 

Earnings per share from continuing operations attributable to Henry Schein, Inc.:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.79

 

 

$

0.72

 

 

$

1.58

 

 

$

1.45

Diluted

 

$

0.78

 

 

$

0.72

 

 

$

1.56

 

 

$

1.44

 

 

 

 

 

 

 

 

 

Earnings (loss) per share from discontinued operations attributable to Henry Schein, Inc.:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.01

)

 

$

0.20

 

 

$

(0.07

)

 

$

0.39

Diluted

 

$

(0.01

)

 

$

0.20

 

 

$

(0.07

)

 

$

0.38

 

 

 

 

 

 

 

 

 

Earnings per share attributable to Henry Schein, Inc.:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.77

 

 

$

0.92

 

 

$

1.50

 

 

$

1.84

Diluted

 

$

0.77

 

 

$

0.92

 

 

$

1.49

 

 

$

1.83

 

 

 

 

 

 

 

 

 

Weighted-average common shares outstanding:

 

 

 

 

 

 

 

 

Basic

 

 

148,148

 

 

 

153,353

 

 

 

149,310

 

 

 

153,210

Diluted

 

 

149,423

 

 

 

154,189

 

 

 

150,560

 

 

 

154,163

Note: Certain prior period amounts have been reclassified to conform to the current period presentation.

HENRY SCHEIN, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share data)

 

 

 

 

 

 

June 29,

 

December 29,

 

 

2019

 

2018

 

 

(unaudited)

 

 

ASSETS

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

84,924

 

 

$

56,885

Accounts receivable, net of reserves of $54,130 and $53,121

 

 

1,203,925

 

 

 

1,168,776

Inventories, net

 

 

1,367,516

 

 

 

1,415,512

Prepaid expenses and other

 

 

452,349

 

 

 

451,033

Assets of discontinued operations

 

 

-

 

 

 

1,083,014

Total current assets

 

 

3,108,714

 

 

 

4,175,220

Property and equipment, net

 

 

315,422

 

 

 

314,221

Operating lease right-of-use assets, net

 

 

236,113

 

 

 

-

Goodwill

 

 

2,431,103

 

 

 

2,081,029

Other intangibles, net

 

 

631,337

 

 

 

376,031

Investments and other

 

 

389,648

 

 

 

420,367

Assets of discontinued operations

 

 

-

 

 

 

1,133,659

Total assets

 

$

7,112,337

 

 

$

8,500,527

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable

 

$

745,621

 

 

$

785,756

Bank credit lines

 

 

242,787

 

 

 

951,458

Current maturities of long-term debt

 

 

9,136

 

 

 

8,280

Operating lease liabilities

 

 

68,288

 

 

 

-

Liabilities of discontinued operations

 

 

-

 

 

 

577,607

Accrued expenses:

 

 

 

 

Payroll and related

 

 

224,574

 

 

 

242,876

Taxes

 

 

108,590

 

 

 

154,613

Other

 

 

426,281

 

 

 

498,237

Total current liabilities

 

 

1,825,277

 

 

 

3,218,827

Long-term debt

 

 

973,147

 

 

 

980,344

Deferred income taxes

 

 

72,177

 

 

 

27,218

Operating lease liabilities

 

 

178,240

 

 

 

-

Other liabilities

 

 

329,568

 

 

 

357,741

Liabilities of discontinued operations

 

-

 

 

 

62,453

Total liabilities

 

 

3,378,409

 

 

 

4,646,583

Redeemable noncontrolling interests

 

 

287,714

 

 

 

219,724

Redeemable noncontrolling interests from discontinued operations

 

 

-

 

 

 

92,432

Commitments and contingencies

 

 

 

 

 

 

 

 

 

Stockholders' equity:

 

 

 

 

Preferred stock, $.01 par value, 1,000,000 shares authorized, none outstanding

 

 

-

 

 

 

-

Common stock, $.01 par value, 480,000,000 shares authorized,

 

 

 

 

147,823,846 outstanding on June 29, 2019 and

 

 

 

 

151,401,668 outstanding on December 29, 2018

 

 

1,478

 

 

 

1,514

Additional paid-in capital

 

 

65,356

 

 

 

-

Retained earnings

 

 

2,900,387

 

 

 

3,208,589

Accumulated other comprehensive loss

 

 

(139,944

)

 

 

(248,771

)

Total Henry Schein, Inc. stockholders' equity

 

 

2,827,277

 

 

 

2,961,332

Noncontrolling interests

 

 

618,937

 

 

 

580,456

Total stockholders' equity

 

 

3,446,214

 

 

 

3,541,788

Total liabilities, redeemable noncontrolling interests and stockholders' equity

 

$

7,112,337

 

 

$

8,500,527

Note: Certain prior period amounts have been reclassified to conform to the current period presentation.

...

HENRY SCHEIN, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands, unaudited)

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

June 29,

 

June 30,

 

June 29,

 

June 30,

 

 

2019

 

2018

 

2019

 

2018

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net income

 

$

119,196

 

 

$

147,509

 

 

$

233,840

 

 

$

296,140

 

Income (loss) from discontinued operations

 

 

(2,221

)

 

 

32,918

 

 

 

(11,217

)

 

 

66,832

 

Income from continuing operations

 

 

121,417

 

 

 

114,591

 

 

 

245,057

 

 

 

229,308

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

49,055

 

 

 

35,441

 

 

 

89,355

 

 

 

71,147

 

Stock-based compensation expense

 

 

12,662

 

 

 

13,355

 

 

 

19,772

 

 

 

21,054

 

Provision for losses on trade and other accounts receivable

 

 

2,192

 

 

 

2,545

 

 

 

3,976

 

 

 

5,328

 

Provision for deferred income taxes

 

 

(5,648

)

 

 

(4,890

)

 

 

2,284

 

 

 

(224

)

Equity in earnings of affiliates

 

 

(5,556

)

 

 

(5,310

)

 

 

(8,186

)

 

 

(8,130

)

Distributions from equity affiliates

 

 

9,056

 

 

 

5,796

 

 

 

61,357

 

 

 

9,344

 

Changes in unrecognized tax benefits

 

 

1,221

 

 

 

(1,656

)

 

 

4,435

 

 

 

757

 

Other

 

 

(2,284

)

 

 

3,009

 

 

 

(1,045

)

 

 

(2,078

)

Changes in operating assets and liabilities, net of acquisitions:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

(5,872

)

 

 

(27,114

)

 

 

(17,452

)

 

 

(38,802

)

Inventories

 

 

8,922

 

 

 

(6,800

)

 

 

86,803

 

 

 

(68,010

)

Other current assets

 

 

(44,316

)

 

 

(14,136

)

 

 

(62,098

)

 

 

(4,448

)

Accounts payable and accrued expenses

 

 

24,603

 

 

 

61,645

 

 

 

(125,472

)

 

 

(103,378

)

Net cash provided by operating activities from continuing operations

 

 

165,452

 

 

 

176,476

 

 

 

298,786

 

 

 

111,868

 

Net cash provided by (used in) operating activities from discontinued operations

 

 

(2,221

)

 

 

111,354

 

 

 

(169,294

)

 

 

105,018

 

Net cash provided by operating activities

 

 

163,231

 

 

 

287,830

 

 

 

129,492

 

 

 

216,886

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Purchases of fixed assets

 

 

(14,790

)

 

 

(16,586

)

 

 

(30,708

)

 

 

(30,229

)

Payments for equity investments and business

 

 

 

 

 

 

 

 

acquisitions, net of cash acquired

 

 

(18,468

)

 

 

(980

)

 

 

(622,441

)

 

 

(1,344

)

Proceeds from sale of equity investment

 

 

-

 

 

 

-

 

 

 

10,500

 

 

 

-

 

Proceeds/(payments) for loan to affiliate

 

 

(72

)

 

 

(13,700

)

 

 

15,868

 

 

 

(18,200

)

Other

 

 

(5,686

)

 

 

(4,042

)

 

 

(8,762

)

 

 

(7,463

)

Net cash used in investing activities from continuing operations

 

 

(39,016

)

 

 

(35,308

)

 

 

(635,543

)

 

 

(57,236

)

Net cash used in investing activities from discontinued operations

 

 

-

 

 

 

(4,166

)

 

 

(2,064

)

 

 

(17,404

)

Net cash used in investing activities

 

 

(39,016

)

 

 

(39,474

)

 

 

(637,607

)

 

 

(74,640

)

 

 

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Proceeds from (repayments of) bank borrowings

 

 

(56,895

)

 

 

226,162

 

 

 

(709,012

)

 

 

438,217

 

Proceeds from issuance of debt

 

 

-

 

 

 

-

 

 

 

741

 

 

 

100,000

 

Principal payments for long-term debt

 

 

(1,662

)

 

 

(16,741

)

 

 

(9,038

)

 

 

(24,082

)

Debt issuance costs

 

 

(391

)

 

 

(147

)

 

 

(391

)

 

 

(177

)

Proceeds from issuance of stock upon exercise of stock options

 

 

-

 

 

 

-

 

 

 

34

 

 

 

3,022

 

Payments for repurchases of common stock

 

 

(76,782

)

 

 

(53,355

)

 

 

(226,782

)

 

 

(53,355

)

Payments for taxes related to shares withheld for employee taxes

 

 

(856

)

 

 

(2,653

)

 

 

(10,527

)

 

 

(17,665

)

Distribution received related to Animal Health Spin-off

 

 

-

 

 

 

-

 

 

 

1,120,000

 

 

 

-

 

Proceeds related to Animal Health Share Sale

 

 

-

 

 

 

-

 

 

 

361,090

 

 

 

-

 

Proceeds from (distributions to) noncontrolling stockholders

 

 

(2,807

)

 

 

(4,129

)

 

 

49,398

 

 

 

(4,678

)

Acquisitions of noncontrolling interests in subsidiaries

 

 

3,787

 

 

 

(24,723

)

 

 

(2,270

)

 

 

(286,156

)