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Quarterly Information (Unaudited)
 12 Months Ended
Dec. 28, 2013
Quarterly Financial Data [Abstract]  
Quarterly Information (Unaudited)

Note 18 – Quarterly Information (Unaudited)

 

The following tables present certain quarterly financial data:

   Quarters ended
   March 30, June 29, September 28, December 28,
   2013 (1) 2013 2013 (2) (3) 2013
Net sales  $2,293,511 $2,391,810 $2,348,956 $2,526,370
Gross profit   646,991  669,856  639,647  699,520
Operating income   153,629  176,065  160,477  186,883
Net income   98,686  121,435  116,372  134,969
              
Amounts attributable to             
 Henry Schein, Inc.:            
Net income   91,478  108,430  107,378  124,268
              
Earnings per share attributable to             
 Henry Schein, Inc.:            
              
 Basic  $1.06 $1.26 $1.25 $1.46
 Diluted   1.03  1.23  1.23  1.43
              
   Quarters ended
   March 31, June 30, September 29, December 29,
   2012 (4) 2012 2012 2012
Net sales  $2,099,019 $2,201,452 $2,231,058 $2,408,438
Gross profit   610,579  624,395  609,044  663,495
Operating income   133,295  154,702  149,622  181,342
Net income   89,061  107,302  105,310  121,715
              
Amounts attributable to             
 Henry Schein, Inc.:            
Net income   80,752  98,086  96,771  112,467
              
Earnings per share attributable to             
 Henry Schein, Inc.:            
              
 Basic  $0.92 $1.11 $1.11 $1.29
 Diluted   0.89  1.08  1.08  1.26
              
              
(1)See Note 5 - "Debt" for details of expenses related to the refinancing of HSAH debt incurred during the first quarter
 of 2013.
(2)See Note 9 - "Business Acquisitions, Divestiture and Other Transaction" for details of the loss on sale of equity
 investment incurred during the third quarter of 2013.
(3)See Note 12 - "Incomes Taxes" for details of the reduction of our valuation allowance related to certain deferred tax
 assets incurred during the third quarter of 2013.
(4)See Note 10 - "Plans of Restructuring" for details of the restructuring costs incurred during the first quarter of 2012.

We experience fluctuations in quarterly earnings. As a result, we may fail to meet or exceed the expectations of securities analysts and investors, which could cause our stock price to decline.

 

Our business is subject to seasonal and other quarterly fluctuations. Net sales and operating profits generally have been higher in the third and fourth quarters due to the timing of sales of seasonal products (including influenza vaccine, equipment and software products), purchasing patterns of office-based health care practitioners and year-end promotions. Net sales and operating profits generally have been lower in the first quarter, primarily due to increased sales in the prior two quarters. We expect our historical seasonality of sales to continue in the foreseeable future. Quarterly results also may be adversely affected by a variety of other factors, including:

 

• timing and amount of sales and marketing expenditures;

 

• timing of pricing changes offered by our vendors;

 

• timing of the introduction of new products and services by our vendors;

 

• timing of the release of upgrades and enhancements to our technology-related products and services;

 

• changes in or availability of vendor contracts or rebate programs;

 

• vendor rebates based upon attaining certain growth goals;

 

• changes in the way vendors introduce or deliver products to market;

 

• costs of developing new applications and services;

 

• our ability to correctly identify customer needs and preferences and predict future needs and preferences;

 

• exclusivity requirements with certain vendors may prohibit us from distributing competitive products manufactured by other vendors;

 

• loss of sales representatives;

 

• costs related to acquisitions and/or integrations of technologies or businesses;

 

• costs associated with our self-insured medical and dental insurance programs;

 

• general market and economic conditions, as well as those specific to the health care industry and related industries;

 

• our success in establishing or maintaining business relationships;

 

• unexpected difficulties in developing and manufacturing products;

 

• product demand and availability or recalls by manufacturers;

 

• exposure to product liability and other claims in the event that the use of the products we sell results in injury;

 

• increases in the cost of shipping or service issues with our third-party shippers;

 

• restructuring costs; and

 

• changes in accounting principles.

 

Any change in one or more of these or other factors could cause our annual or quarterly operating results to fluctuate. If our operating results do not meet market expectations, our stock price may decline.