Henry Schein Inc. (HSIC) said Tuesday morning that its board of directors has approved increasing its $200 – $300 million-share buyback program announced in April by an additional $300 million. Approximately $243 million worth of shares of the original plan (3.2 million shares) have been bought-back already as part of the initial plan as the company executes its plan to try and build greater shareholder value.
At current prices around $77 per share, the additional plan represents about 4 percent of the 88.3 million shares outstanding as of September 29 of the world’s largest provider of health care products and services to office-based dental, medical and animal practitioners.
Shares will be purchased through negotiated transactions or through open market purchases, according to today’s corporate statement.
“Earlier this year we stated our intention to repurchase $200 million to $300 million annually in Henry Schein shares reflective of the strength in our balance sheet and our confidence in the long-term prospects of our business,” said Stanley M. Bergman, Chairman and Chief Executive Officer of Henry Schein.
On November 7, the Melville, New York-based company said that net sales for the third quarter increased 5.7 percent to $2.2 billion, despite a 3.2 percent decline related to an unfavorable foreign currency exchange. Net income rose 5.2 percent from the year prior quarter to $96.8 million, or $1.08 per diluted share. Analysts were expecting earnings of $1.07 per share and revenue of $2.24 billion.
Shares of HSIC closed Monday at $77.07, up about 20 percent for 2012. Interesting, traders have kept shares rangebound for about six months between a support level around $73 per share and 52-week highs at about $80, providing 10 percent swings for investors focused on those parameters.