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Henry Schein posts higher sales, net income

Henry Schein said on Tuesday, Feb. 21, 2017,

Henry Schein said on Tuesday, Feb. 21, 2017, that its fourth-quarter sales rose 9.5 percent to $3.1 billion, and that net income grew 7.1 percent to $139.2 million. Above, the company's Melville headquarters is seen on Dec. 31, 2014. Credit: Steve Pfost

Henry Schein Inc., Long Island’s largest publicly traded company, Tuesday posted increases in sales and net income for the quarter ended Dec. 31 driven by acquisitions, organic growth and a quirk of the calendar.

Fourth-quarter net sales at the Melville-based global distributor of dental, medical and animalhealth products to practitioners’ offices were $3.1 billion, an increase of 9.5 percent compared with the 2015 period. Internal sales growth in local currencies accounted for 4.2 percent of the increase, acquisition growth 1.3 percent and an extra sales week in the quarter 5.5 percent. The growth was tempered by a 1.5 percent decline related to currency exchange.

For the year, net sales of $11.6 billion increased 8.9 percent compared with 2015.

Net income for the quarter grew 7.1 percent to $139.2 million. Earnings per share climbed 10.9 percent to $1.73 per diluted share.

Shares of Henry Schein gained 2.9 percent to close at $173.01 yesterday on the Nasdaq Stock Market.

“The markets we serve are experiencing consistent growth, and we remain focused on gaining share across all our business units,” Stanley M. Bergman, chairman and chief executive, said in a statement.

Bergman said the company announced seven strategic acquisitions in 2016 with a total investment of about $229 million as the company expanded its product lines and geographic presence.

Separately, Henry Schein said on Monday it had agreed to acquire Southern Anesthesia + Surgical, a distributor of products used by oral surgeons and dental anesthesiologists. Terms for the West Columbia, South Carolina, company were not disclosed.

In the fourth quarter Henry Schein’s top performing segment was technology and value-added services, which reported a 19.6 percent increase in sales to $112.2 million. Acquisitions accounted for about half of that growth, the company said.

In a research note Robert W. Baird & Co. Inc. analyst Jeff Johnson said strength in the market for dental consumables bolsters the case for “improving momentum” in 2017.

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