HSIC Henry Schein

Carolynne Borders Vice President of Investor Relations
Stanley Bergman Chairman and Chief Executive Officer
Steven Paladino Executive Vice President and Chief Financial Officer
Nathan Rich Goldman Sachs
Steven Valiquette Barclays Bank
Jonathan Block Stifel, Nicolaus & Company
Jeffrey Johnson Robert W. Baird & Co.
Steve Beuchaw Wolfe Research, LLC
Glen Santangelo Guggenheim Securities
Call transcript
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[00:00:03] Good morning, ladies and gentlemen, and welcome to the Henry Shine third quarter Twenty twenty conference call. At this time, all participants are in a listen only mode. Later, we will conduct a question and answer session and instructions will follow at that time if anyone should require assistance.

During the call me press the star key followed by zero on your touchtone phone.

As a reminder this call is being recorded. to host like Carolyn today's now Borders. would introduce for your call, I President Investor Shine, of Henry Vice Relations. ahead, go Please Carolyn.

Carolynne Borders

Shine's Chief third [XX:XX:XX] Henry Officer Thank me chairman joining executive Henry of for Palladino, each on Shine, of for Financial you, Regina. are president and vice My and us thanks the call the to Steven Stanley twenty. board of of Twenty quarter to Officer. today you results and With the Bergman, discuss Executive Chief

state to call like certain would comments that this I begin, we during that will is made Before forward information include looking.

uncertainties As you statements. know, in business risks referred forward and may matters affect looking to in involved the company's the

As by filings with in in section statements contained forward a from looking the Shine's performance by the differ in qualified factors filings. Henry statements. materially those or their in Commission, cautionary These result, are expressed Exchange including risk statements those entirety the such company's the may indicated forward and Securities of looking

all comments share, are In market serve, and internal the company's market upon estimates. and about analysis end we addition, rates based growth the markets including

respect replacement information Our today's our I gap circumstances. relations the we conference be investor the provide Twenty please of gap performance as Reconciliations date statements Shine a results financial reflect available turn After this measures content undertakes only Henry to or include informational comparative allow call this in website not the of performance non obligation with question the revise of information non conference Stanley as events and found to key business as and press by and the call. as gap enable this an the be which should up Exhibit Relations management periods comparison our for and can the to for to yourself forward section section call our many a with between is call, solely said, Xnd, investors the supplemental of of certain measures metrics for about of supplemental have financial broadcast well non-GAAP measures. used sensitive listeners that are useful purposes to looking B presented during information website, These measures of corresponding operating any vary of as where lot in of of date release, update follow gap to We [XX:XX:XX] a to financial November Investor independently twenty is results. in between ask like gap business. single within and that non business, a for limit hour time regarded remarks gap And accurate financial financial greater may would and our or a live the contains will the no allow the believe both of over that transparency possible to one as question and Q&A with call items birdmen.

Stanley Bergman

whom We actions in today's to products. The coupled to challenging of Team everyone throughout in significant the related customers on. were they and quarter and that continued a of lead assist covid-XX for covid-XX emergencies, chain growth you, deal economy raw various particular many into late year over to domestically much an strong and sheet we commend took pandemic and and liquidity. returned confident were support eight say, and and our a other safe, of we This offices the care. marketplace, pandemic by continuity team, that I expenses, thank suppliers. and that of shortages of sacrifice our demand for experienced disruption provide earlier we basis global clinical third [XX:XX:XX] Clearly, increased to the products Shine were remain the everyone, percent present customers, for the grew that in in severe The Needless and of subject then reacted for suppliers quality four to as by crisis. our dedication with and the calling products, twenty percent of strong international on as EPS EPS business the course, long work call. place, non-GAAP sales team supply customers. in point to we diluted rebound we caused fourteen a of PPE the second while medical extraordinarily balance gap with and, our result of in growth, face their resulted in with offer been challenges work have quarter driven has as a a to Good the ready for continues point morning, restrictions operating the the hard sales customers the many began year and challenges for as to strategy term [XX:XX:XX] And unpredictable on to the solid throughout supported to shall well, to say, for basis. and to access covid-XX the both uncertainties Twenty reduce year materials prior and eight dental

manage efficiently strategic Conditions the growth practitioners the environment success ended. improved. acquisitions the of for the operating on our As to longstanding given in Shine helping that noted business. started have of the with driver this earlier growth now strategy We early actions program also Team as committed disciplined of QX well-being reduction initiatives our EPS Most took expense in We expenses. is temporary various the customers, a onset company, profitable our the of these year. we term to challenging it reflected of practices of as long and the noted, have remain macro focused year the care global pandemic posed quality our while reduce as providing our that

opportunities to increase now in operating significant of have We balance goal strategic capital over support continuing these and of strong believe to with a we cash resumed plan flow maintaining sheet our time. allocate a have We activities.

As plan prosthetics, acquisition, technology and dental software, Well which twenty, developing including offices, offering we through as three, initiatives, segment having with twenty of so expanding having. solutions specialty number our refine focus and Increasing of strategic twenty digitization medical to expansion, customer refined, the including in of well. we globally strategic [XX:XX:XX] place leading Twenty our will business the we will goal prepare centered plan strategic with Twenty four two, while our plan and redefine exit our interoperability goal to our communications, on include. all medical a dental and penetration world, continue on to solutions the will twenty including key for organically into geographic the advancing advancing our patient globally and devices business of

will throughout then remained a covid-XX to I'll a volume customer commanding our distribution centers, higher on crisis discuss for this they our to performance of fully commentary fair in conditions serve we relatively and ongoing pistol time. the and stabilized hand recent and please. some and throughout at believe this to the of our call current customers the pricing certainly Those our financial service wise tight, can telesales, processing an we customers. including during team, of price. to our ship Stephen markets and Stephen, We strive orders provide and period of crisis, received has supply use high Our I'll market done general someone ensuring open, maintain, have job operational business additional the views as had over we this the extraordinary as. quickly

Steven Paladino

[XX:XX:XX] Ok, and thank morning good Stanley, to all. you,

to As ongoing and results we also on on an from I out basis. begin, operations as reported an our I'd point that will discussing like be basis continuing

Twenty supplemental QX Transitional non-GAAP results are nineteen certain twenty have detailed of website. and and information section Please that Investor Agreement. to that in in our Relations the press QX corporate Our represents for B sales category Vestris of items QX exclude note again the Services included under that we today's release a sales Exhibit twenty

members essentially intention furlough returned work all our remaining stated, TSMC reduced we earnings last from call hours. on from our that have As and

business measures cost continue will health and closely prepared the take We necessary. of saving our additional remain to if monitor to

associated on gap gap A performance point an results, operating found financial currencies. reconciliation Details third we point are medical year our operating On expect non twenty consumable related eight points of XX gap release sales the was point operating impact no information of percent approximately prior place third On billion, moderate and cost year increase with compared point Investor of three in income for earnings US and in expenses measures, effective overall sixteen million with point ongoing year related furloughs, from work merchandise percent. twenty cost operating year. tax rate four twenty over dollars margin the prior for reflecting This of nearly earlier We in tax third [XX:XX:XX] five covid-XX impact our twenty tax are this share. our expense Turning the to percent, rate tax Exhibit PPY quarter. primarily growth by [XX:XX:XX] sales future. have our press was sales eighty percent taxes covid-XX non-GAAP twenty with although temporary today twenty low percent basis, cents the to will expect pandemic. previously sales representing quarter, rate six in a basis, impacted covid-XX that was nineteen. six diluted reductions, margin favorably prior a a generated as twenty Cauvin with cap adjustments for This two quarter by margin to initiatives in earlier of and product in reported twenty reduction results, about were point of to not the decrease point of Operating five in our that basis in reduction by contained significant of per issued tax an and XX dollars PPE of positively a the tax five effective September salary website. and be accounted which points the point impacted quarter income The Relations internally the PPA compares six on ongoing ended supplemental with an the for offset these seven also the on to place. settlement, dental thirteen by all such lower XX hours our was significant These page margin a percent. as third sales of quarter three contracted point basis growth for mentioned A basis, sales our margin initiatives gap rate also by compares Twenty this in effective related our for sales sales in effective to basis. quarter longer nine can Turning local with operating put thirteen fifteen driven quarter are the year the percent two net point percent most Cygnet for six compared QX of federal inventory products. reduce third by negatively on tax to the zero of reduced and growth the response was products sixteen year rate

hundred with diluted ninety nine the compares Twenty acquired on On year impact, period for both dollars twenty million basis, million nonstop when Henry diluted income the net nine intangible quarter basis, operations of one income for The quarter the seven continuing thirty of cents in million million operations percent to continuing to hundred one XX income share. thirty Sean pretax and for from hundred continuing assets CUFI hundred one and of for moving this have that per per in or ninety net twenty quarter. net rate diluted twenty million one or then for or the cents share. dollars amortization per this net million the compares operations and income diluted was a prior per cents of cents three twenty been diluted from gap range on of zero five three with or share that point per was one five XX dollars twenty share. third four twenty And from operations from this continuing point gap point XX the four nine was twenty per [XX:XX:XX] seven Excluding point the and the cents continuing last share would one attributable third five year. forty on point And diluted non-cash one operation two cents point forty dollars, same Twenty compares share, gap

year, seventy million period assets forty from cents XX acquired nine same million intangible the diluted share to with that per for seventy diluted CPA first per and analyzation or pretax the compares nine share, dollars nine or six the last For year. of point months cents

Internationally, point nine in two growth year as percent the of for over QX. strong point Foreign same dental up percent and one P some quarter, our covid-XX international did consumable have dental six with any of again included for merchandise point six currency one six related PCE sales local period to are EPS [XX:XX:XX] material internal point for North in to I sales sales sales well dental this with dental details growth on point and provided six currencies North point year. in identical with percent percent and equipment. local of dental and growth point of But growth the this not and our in and local with last that a point sales compared provide growth dental diluted percent dollars and merchandise global billion sales quarter three year equipment driven America internal currencies, in quarter. dental six again American sales and consumable quarter. one percent, last internal through growth was We nine eight merchandise point exchange on in sales five growth by currencies, mean, acutely I product six sales eleven seven percent as PPY results contribution percent impact quarter the decline

category We to that products expanded covid-XX well. have include related other as

he QX. to And basis, over percent year. and one Tassell, year now QX year, purposes, So by nearly product for XX On prior this was as well covid-XX Solutions category also compared and that related sales hundred in includes PPY thermometer's. Qualitest increased as growth the in comparison thirty percent

growth sales specialty dental eight this point potential growth product We six include products strong increased local five growth internal North at with specialty America long in the dental currencies, category over term. percent. point to margin by has Turning higher solid of percent fourteen the in products believe very global

grew local percent seven Our twenty point seven in twenty medical to eight, of sales one dollars eight That compared last North seven internationally, twenty America twenty twenty percent. seven same seven point one seven and the growth percent or point percent eight billion period seven in currencies. point a point twenty point percent seven year, included

demand medical hundred growth products Our medical products, sales PPE results percent. were driven related compared also [XX:XX:XX] by purposes, XX approximately and was covid-XX related the year. two over the prior for comparison sales by For continued for percent year year to and strong increased provide XXX QX

than and added by transaction sales. Henry in Chahine decline zero the and internally declined and in declined historical currencies in two Turning local The American impacted of currencies sales point of now of seven by percent. services. percent in in point by four services was value added the currencies sales a added currencies and technology two our added increase prior to Internal compared Those point point compared three services sales flow, local lower to reflects value year, same technology local percent value hundred value North decline point In segment. the one dollars percent resulted five which were thirty services technology million period nine and in and one which technology lower slight year. quarter, eight local revenue. to one an third last internationally, patient generated

equipment Additionally, sales volume. by our impacted lower was services revenue financial negatively

temporarily covid to on to related in share as our to suspended program first also our due we and operations in early cash of discussed preserve earnings impact covenants. restrictions call May, means response repurchase the a our financial to we QX As business certain on

three have Currently, of stability access hundred we operating two operations As environment, [XX:XX:XX] our million the point has for Shian third this hundred year also for common and liquidity, capital. improvements and both repurchases compares million, and sixty flexibility point financial today, dollars future net one the two million in one the hundred The four of year that stock. two increase providing primarily in was of six to quarter third from two over dollars high to due flow significant point quarter continuing and challenging twenty year. Henry to cash for income dollars working authorized was

operating QX four million As per Twenty part twenty dollars closing includes stranded reduce of charge initiative, drive our expenses, in charge pretax opportunities seven pay costs restructuring mitigate previously we or to recorded cents costs. and share. diluted primarily severance This efficiencies facility restructuring reflects a of and disclosed

We year. uncertainty topic operations. remarks on its to continue surrounding through I initiative restructuring the pandemic to impact covid-XX continued financial the conclude of to guidance, the continue our of due expect the business to and end again, my our

We are not time. providing financial guidance at this

about ended. sales the reminder, most medical to initiatives overall dental in and have growth a the and product consumable to moderate As impact related from future, third And expect merchandise we expect positively covid-XX expense PPE other although temporary also quarter. now reduction sales we sales

So turn I'd with Statman. to that, like back call the over to

Stanley Bergman

Stephen. Thank [XX:XX:XX] you,

levels nicely pandemic the and in actually almost the during China, home Brazil has Zealand to to patient quarter. with starting from review and the covid-XX performance Let's third throughout recovered pandemic, on Australia, the also pandemic Italy. of in U.K. saw particular to actually Canada from was in in traffic growth recent the impact the In quite exception in Europe the continued returning our penultimate, from weeks the markets levels third the pre business with France US, led and to October, we quarter, New slower Daniel. quarter strength pre The third consumable pandemic, the where the in merchandise

America the in North sales the local point driven in and related international and EPS growth, internal covid-XX and At Sales XX markets products. the respectively, in in currencies point sales range by of a of percentages one prior eight for as grew growth, percent growth the and related XX contribution digit eleven was were Which merchandise strong. consumable quarter both one PPE to to products, percent. global third was approximately general approximately this the were in single cowbird percentage the quarter, second and mid sales covid-XX. Our in

strong provide safety will digit declined for in technology forward sepsis International where strong to abroad and necessity during quarter. double is general to continue in dentists protocols handling XX flat. the that a sales Europe traditional practices constitute dental there in sales categories, PPE Within is the sales offices a percent. patients portion feel high that as of small sales XD people expect whereas continue States as the and and control, mid and well, that remain a We amount the equipment declined currencies dental local CAD in United by our of actually meaningful albeit growth going equipment infection deferred quite available third good safe currencies are growth and implant both control and in for dental adequate very extremely sales products, these which digit some in quarter a experienced an and segment. sales actually practitioners quarter Dental sales decisions. decline. implants year, the investment percentage Sales specialty were for increased imaging [XX:XX:XX] performed and our sales in recover equipment. these safe, infection laser local in comprised the downticks third third growth high in XD equipment third well, the also traditional internal base environments technology orthodontics and We and continue On North the quarter essentially last sales single led during and during both was cam with America, This equipment, of in businesses, in and to to a internal control offices. and is particularly Doneck product quarter the those America, in approximately sales we both North experience by

of And efficiency that are more the time, getting this dry we heightened safety exclusive surgically relationships other in which increased manufacturing in hard environment. efficient practices patients last the believe Vanaman, mentioned specific more seeing new also in offer seeing particular, both to protocols. we where of with It's case and they from productivity, at be have solutions protocols there determine in enhance we quarter, efficiency I and including at that driving of the the will category play. to from continued adjust solutions interest degree partners, as we a clear in purification The as see As as particularly but to is look air. patients clean and light customers practices safe to clearly interest is are In important practice addition equipment shield.

both And including open in volume. survey, survey Europe, the obviously pre rising again approximately might America not quarter by add, although to patients in So Brazil, published for markets second related Belgium, the by all countries, different is material to Zealand dental month continue are levels it in was month latest US European Netherlands, are for Association Germany, of Dental we New I substantially, care. result, North a encouraging, is consumables any is demand consumable but the essentially covid-XX remains. through [XX:XX:XX] products. So the Italy, are percent percent we two Australia America, degradation Poland. for in China as number so dental in relative approximately returning and a of to practices are where quarter XX down serve driven growing patients, as and diagnosed This the the third ADA most completely North also summary, to France, pandemic merchandise equipment, covid-XX the to pre data visiting progress patient at part very, the with in of demand and covid that Czech Spain, despite April, prior this of practices U.K., showing very and we are sales, the practice back American open improvements in for [XX:XX:XX] this patients The products, patients people the shows cases as versus well, point? the different to and Dental strengthened practice Austria, dentist. the And Switzerland very and the this dental clearly, April. visit that Republic very what of

think of a we Henry the of percentage for Shine's continue couple swing into is that anything I of points. IT have procedures. data reading careful States, OK return be the also claims as in broad views show to a set Europe, care It And dentists clear as to although we in important. public viewed are information dentistry not detailed important providers. that do United in Europe, patients the have see as that a finite can health being we

is visits that. the regulations markets such the actually, With been dentistry, exception. open course, Of the for dentist is Europe restricted, have the essentially the have been all of were but to in. rest UK The

of not stage, this into quite we're moment, double. at why So whether and dental all we stable this overall, of any recovery. exactly more utilization At as impacts to a the whether becomes continuing is this and we course, watch stabilize to open. But improving what geography's the practices characterize others. current as we would particularly V cases dental in markets in areas should rise, recovery and go shaped are Seems [XX:XX:XX] this continue as seeing, the see reason we patient some do covid-XX

experienced customers pricing recent the to of supplies and portfolio, Henry complementary organized of our at service Dental and and These online range merchandise, delivery. the that wide build TDE level will distribution and, service distribution online consistent marketing for TDC of are offering including our two fulfillment California with software only Association association small competitively providing course, dental and customer launched order service their was that technology will equipment full for shipping, low its products expanded price the when varying services, consumable options they Association and originally core will, maintain coupled of or Which the channels Shine model, to coupled dental and equipment product move aimed dental practices. Backed supplies Shine announcement segments. joined dental offer requisite XXXX for on performance to only a seek full dentistry Roshan's supply we from Henry are Denault maintain customers and the field comment to of on members the strategy, let by model the enhance of medical course, a delivering priced improved sales the on choosing purchase to obtaining Before offering. offer such TDE. a Dental has on telesales of very are customers we [XX:XX:XX] TDC advantage much to highly XX pure service model, will high Model but a offering million is wish. an take with members, focus in Henry had we dollars. option online State of teams, approximately benefit company, alternative an subscribe members business, has TDE Shine. competitive touch. me Shine, by faster Ed So of that those that Henry our To

quarter achieved we And business. marked building billion sales the by the are products. The sales. to medical quarter our growth track move which third medical this let's BP This covid-XX in medical a in business. team strong from demand was Now our record also the extremely related in driven and pleased first with dollars medical during teams

allocated access beginning that initial the are to government for to We were to cover first test see being solutions improved distribution.

to private and we approved move testing allocation line markets improve as as As in more with to expect tests twenty manufacturing further capacity to one, the increases. into availability solution sector occur continue we are practitioners for Twenty

their much quarter to care words, noted, it tests. important tests covid percent offices. view the third covid-XX as and to percentage are, mid XX receiving who of of We XX point single approximately specifically sales greater as as in allocation the increased in the digit and practitioners three from of percentage office for based approximately second conduct XX in rapid. medical [XX:XX:XX] sales product covid-XX In the EPS global tests other a percent the related very quarter.

meaningful a and and in for tests, portion practices products more create people that testing We including office to both our environment. environment safe sales, and setting expect patients based of sales related a undertake medical will be staff to seek as covid continue the

the to Shion that chain supply developed history the insight to specialized we has strategic and years out I'd and vaccines, challenges. into have partnerships outbreaks Regarding covid-XX many The like point readiness potential over response. of supply distribute provide us in with Henry chain a leadership had long

with We our the credibility also as Well, be partnerships when with of Relationships products to effectively these [XX:XX:XX] me, these the excellent. private as stay a working we. administer distribution in be we with contact channel a our We that recognized commercial that vaccines. into vaccines. place of and manufacturers pharmaceutical office excuse manufacturers have as Practitioner recognized a on close I'll And with have also number manufacturers. these based. as will working history well also will as believe public well

technology added So our business. let's value and to services move on

and dental dental slightly. software offset by the continue to slightly of offset reopen XX down by solid [XX:XX:XX] the percent business number is cloud a and software based to enhancements launched payment going managing our of trends processing, product. transaction quarter, visits new revenue, following the the is practice. conduct and remote As processing number imaging it new in credit prescribing to solutions. one including Are Really of accounting including especially to up clinical a dental through and practices access their for practices generation, have product one quarter, to to provided previous third sophisticated we attractive and plans was of and. capabilities, was Henry enhancements, [XX:XX:XX] the DSR centric shines throughout the Centrex a as that claims year sales dental to cloud features third capabilities the solid practices. I solutions growth growth based in During This of aspects XXXX. our Including work, desire was Remote This of requirement solutions. comparing and card solutions it such

payment New key our bill insurance in districts and enhancements solution. payment very management online successful to enhancements and processing

continue. We

growth by still encouraged it's that. That at digital said that, of continuing is Quite see software to full. business, said, but unpredictable, must very the the current unpredictable We are dental more continue the may This October that to in the course across medical is in board, invest summary, indicative unpredictable, in In performance a to year we are but cautious deliver productivity. dental with related necessarily products. early of our and and driven automates in sales and the tests at EPS we be, little this a time other time. technologies quarter, actually prior simplifies what very a looking be covid having fourth to not platform of this workflow over increase while our practice solutions integrated performance,

most through public Forum strategy. the private an after role we before to We pandemics, companies, And helping were lead named also these are the EPS pleased listed designed List, saving among and impact in the strengthening very lives of social network to World Generation global health questions, ranking are is chain to recognized So its which like partnership we your the care positive years is innovation, exchange. Change in Index, how growth company which named the move Henry by respect of the we important supply would epidemics in special the note of we in including Nasdaq to be the with a XX week, a business celebrate, have and the public supply create changed September and to Nasdaq magazine's as index This on the a I World pandemic, is companies a companies serve annual and XXX part companies in week XXXX, that sector the [XX:XX:XX] shine core by the Next measure the capitalization. are performance activities capital, in to to pleased Nasdaq at largest Economic Shine non-financial Fortune that top by resilience are private at to our on XXX general, aimed focused XXX to those to pandemic had were be chain market that was of for as Nasdaq initiatives. response pleased on ranked

changing grown value our business. market Over our have of dynamics navigated those through Delivering the years, successfully we many to and shareholders.

non-GAAP of annual continuing sales XX since in in are of fact, of compounded percent through and end operations have In XX the EPS IPO, growth to we our percent XXXX. the pleased delivered from time

may be we'd in [XX:XX:XX] mind, you. pleased, Thank I questions to investors comments with any have. So very that And answer those Stephen. you expect


This like number your the followed question, if [XX:XX:XX] press you'd telephone a by ask time, on please, to keypad. star, one

the will question line from Please Sachs. go come Goldman first Our of Rich Nathan with ahead.

Nathan Rich

you're the [XX:XX:XX] on performed on moderate growth October when relative Good standard. questions, well? to how detail PPC and segments relative third to for maybe dental rate third about to morning quarter, Or underlying Could that quarter? medical the products? as starting related we expectation also you moderation with any and the for you And and in growth to give respect are Outlook thanks the with think sort to comments covid of for due your the is expecting the us seeing your what solely

Stanley Bergman

you it potential in moment and patients. different abroad, April, with markets maybe the at question. is The at even markets practices domestically much and diagnoses very fact, impact have down. to seeing continued trend for dental October the seems before others September, So than rising higher. that, even said covid rate little most number [XX:XX:XX] has Having increased the concern again, are both in greater the a of patients some thank Crovitz of a the we like of

Dennis now cautious So same the the pretty with said data Stephen. be a right business medical good we for context the want to patients. of the place patients. diagnose latest the And Having just in seeing that, practitioners board on across seems

Steven Paladino

think a same [XX:XX:XX] continue lot to Copan may to not cells, and that PPTA practices it, continued I related forward. there during that bit a a I rate. QX that think up to was We summarizes think a was got continue additional that may a practices demand bit know, you Yeah, and restart there QX at of caught not we patient would maybe order going backlog also [XX:XX:XX] of couple up the of start you taking, that related initial during know, points, add of

little those reasons more on forward. So so really a also bit contribute going cautious the to us outlook being

Nathan Rich

your think pricing you and or the fourth kind [XX:XX:XX] as adding weeks, Steve, the two we Have just respect the going outlook? and just volumes of That's seen uncertainty should in you talk is cited. could to maybe covid top quarter with to And secondly, about in in recent of through and case the then that on line margin forward that is the impact expectations rising you in beyond? the clarifications your magnitude just impact helpful expect we an counts quick

Stanley Bergman

at sure change saw of patients seem be don't said don't ADA to is Having reduction meaningful percent. we But a Practitioners data and the a not or said in I'm diagnosed whether significant volume this with [XX:XX:XX] relates seeing patients in moment. see consistent Europe. anecdotally, increase see visits same is significant We to September. in in United the caution not. at that, what to that, couple the our in practitioners. Having that States a time, the both in Stephen? down we

Steven Paladino

of to costs QX shortage was. you [XX:XX:XX] and be as certain back a products, in And that Yeah, would know, that was higher significantly was our significantly think than supply. related really really facemasks, the was will for and elevated typical early there cost on pricing I moderate, primarily and was for we products, pricing assume to continue PPE

as products. beginning is moderate you supply. category, product on to is now There of one in short those most supply As is pricing improve, know, continues to that that though,

now impacted. to supply But nitrile hard in how So very globally. tell is gloves be this short examination are

which related. I So products, cost that would may have the that pricing in company in moderate think our on turn those on for somewhat part, see to our us will end pricing for say a most increase users. and would we But spike PPE would in products I

Nathan Rich

helpful. That's [XX:XX:XX] Thanks for the question.


Steven the Barclays. Please will of question from go next [XX:XX:XX] ahead. line with Valiquette Your come

Steven Valiquette

Good for thanks. Stan taking thanks Great, question. and the morning, Steve, [XX:XX:XX]

few So in sequentially, margins, year lower impacted I'm down a margins, fairly flat sales guess was getting likely it margin if there's mix to the here over color gross by dental much curious versus just the year, but of margin greater medical how higher simply sales. gross due on any on just questions I was mix. XQ

Stanley Bergman

[XX:XX:XX] And Steven.

Steven Paladino

not was critical related [XX:XX:XX] Steve, products at release, were the made time. selling some our product, to product press in have remember, not PPE in was even driver, time the we a access you unless product where, it then. early the that to category. we of access and difficult on during We was important suppliers And product driver, in because buying such increases prepaid because significant to because main that, and our back cost. related to product main required for decision prices that way as product And that buy that saw was outlined high we mix, our know, customers no you inventory there the quarter. and a pricing adjustments a absolutely for it's negotiate did to at it's Most

impacts. one So biggest were was the quarter. other for impact that the also that some was on margins There

inventory both quarter market lot as well is lower predict hopeful I'm was in side. contributor because away, prices a still difficult really the That on to although the very they a go side as supplier because contributor also to. sale also Some and of see pricing of selling we'll with that less smaller adjustments volatile on the a that it's the purchase rebates, related the margins. at smaller were of also volume that

So kind see of we'll that. to wait and just have for

Steven Valiquette

Ok, [XX:XX:XX] the I appreciate color. Thanks.


will line [XX:XX:XX] Please Block go come of with Jon Your from Stifel. question the next ahead.

Jonathan Block

you specialty thought North up guys. of at XP was [XX:XX:XX] consumables with that start consumables. things like mentioned thanks if America. consumable basic morning, you a But and some and dental were covid strong you number XX and compare just Great, gave, percent good the that flat I the contrast dental to very dental I Maybe you, can think

I think percent. even XX implants up

talk you got maybe between the two a follow consumables. within up. just just So then dichotomy can that to And I've

Stanley Bergman

good it's question. Yes, very a [XX:XX:XX]

because related sales, the core at and out category take within if dental it's take sales you actually all both product out sales, our look that you consumables and that flat. you if for So the and products, medical, is about PPE PPE But related testing.

like So. in That's we've it's and that's third well. been are where we October looked quarter it the as where for like looks

to clarity with Same that Dennis. happen to But practitioners May. patients situation Having December, the diagnosis. physicians, in we're remain anomaly, other question? very patients. [XX:XX:XX] are no to are will of in another November as the is part course, situation, Did are so busy. in Everywhere the and there's quite basic visiting could the really there see open that's and different they in very, is the than increase that, what And said early really comfortable U.K., given have no So. April which of you and clearly an

Jonathan Block

percent guess Stephen. up part throughout you Thank down And steadily, one. thirty term permanent XX extent on Thanks, margin? sales. recapturing consumable twenty XXX to [XX:XX:XX] been you percent you do eighteen twenty and the one running about longer points. have Is six not And this, somewhat call put to sales, another you'll a I steadily, or sort to PPE the because certain it, think bucket question. or PPE six, a if I on margin about Steve's not margins thirty and maybe have nature, covid of just do know, nineteen, pretty XX you so and that question, trough lower change margin we you, have or to importantly, follows Are off gross there gross always improving Well, twenty six guys. it that on but forward, basis looking a most the gross two know,

Steven Paladino

Yeah. [XX:XX:XX]

of PPA just me were excluding Stanley sales, question. flat. That the positive that and specialty consumable includes commented covid relatively earlier benefit the merchandise on When touch Let sales John. products,

So in that included embedded consumables. in it's all because that's

question, know, it's could costs we next one increase the I significant still current limit related. related us. you what through. is your a And pass a And show margins PPA there's and as natural in Garchik, for Kovac probably a So, on volatility gloves to there's you in that will said, still know, of lot

the there's to And So the really and it and drives give additional covid PPY south as That on side much buy and I'm all guidance people related, buying to side. on growth. that ready products. sales margin yet it's volatility just not gross because on know, products really drives you too positives

sale, in have you If has product, you lose the volatility may also margin. huge the entire but don't it

to positive. got you've take So the positive the so not with

Jonathan Block

Thanks for Understood. the call. [XX:XX:XX]

Stanley Bergman

John. [XX:XX:XX]

businesses, in a a course, XX those business. little of important. Just specialty compared bit terms the of side, fourth billion that total into well, businesses dollar ahead, certainly margin business, material. But in approximately on it in terms quarter. the very light profits, high sales But the to specialty quite done have more not going quarter And it's third the is and the of

So sales, of profit, in it's of materiality, terms in terms in a the of overall terms material decent not contributor. it's

Jonathan Block

color. the for Perfect. [XX:XX:XX] Thanks


[XX:XX:XX] question next with ahead. Your comes the from of line Baird. Jeff Johnson go Please

Jeffrey Johnson

good guys. following on up could. [XX:XX:XX] Good morning, or both just Thank Maybe I afternoon of if you. John's questions,

percent as was general digits of pot know, here that of you going a kind for between about our that Steve, XX when Yet kind that ADA positive falloff little get positive Specialty we down in low mid nicely five or consistent the talk a that the have we consumables survey slightly some kind are you surveys the with or quarter, between you showing put normalization those well, at, and little been bit is from surveys down where at percent. maybe quarter, know is somewhere from you maybe of been that where was to consumables here there showing. side, volume what so. dental of the if of So, kind down have mentioned, That's of as in would single general on

Steven Paladino

just ADA that clarify Well, traffic, XX that plus talking me minus is on about patient patient percent, [XX:XX:XX] traffic. let Jeff, estimated survey or the let me

is the being volume because It factor products. volume that a actual bit higher for in, You know, on also reason, a procedure historically. know, know, basis, really currently that you than are it we doesn't based PPY you some of procedures sales that, a additional little better than bit think so sales seems are done


in percent the XX traffic is percent is sales patient in volume volume. the in XX is higher higher XX So sales than sorry,

question sure Jeff, I And you it. there, so make just just second a you if repeat clarifies. want to could have hopefully that And

Jeffrey Johnson

so going contributor time, of like know, we be higher that understand of down or bit normalize I are dentistry The said, positive that's of forward, back a No, the that is intensity kind revenues a been I surveys towards in revenue getting such just because falloff it than the was least a quarter. here drive. like think the of the a showing in dental at my Mix things talk as to If and I bit are a it XX was to last that. as it's question. [XX:XX:XX] start wouldn't volume can of know points about I little You lot you higher side XX and little But performance and volumes? over

Stanley Bergman

demand things products that's should a little [XX:XX:XX] in, of think Yeah, that, covid. moderating a that know, increases other I fall It's for bit up pricing may you It's know, little off you some that if this on correct. again, a pent test positive bit. also, few continue of results

think on item. I particular So that. don't that things our impacting It's it's one just a few thoughts are

Jeffrey Johnson

[XX:XX:XX] did enough, the Fair you the some talk on on just you Tropp know, margin if about were know, we at of then margin last question, and gross asked you side, side, John sourcing more I side. PPE some the for also I OpEx in savings temporary these you've talk past, going think And about think local away. markets on that's local But markets. cost from the margin

near see from XX, levers, term months? just the up two the Can these these at do you up down margin staying on tick a we they trend think levels margins next in the So Is about back XX or side? there as know, down those we levels? over

Stanley Bergman

[XX:XX:XX] on really guidance specific much too to too give us this. think Yeah, there's for volatility I many

don't happen know pricing us. And I that. to what of what's You means don't know, speculate exactly know shortage. just natural with still to, is that there's margin want on again, going you to you that worldwide know, we ahead do and we but clubs, know, a

So this just lines I guidance can't really time. we those think along specific give at

better So insight. hopefully we'll have

Jeffrey Johnson

you. Thank Understood. [XX:XX:XX]

Stanley Bergman



go with from Your Please line comes question [XX:XX:XX] Research. ahead. the next Wolfe of Bushar Steve

Steve Beuchaw

[XX:XX:XX] Hi, thanks for here. the time

elevated try benefit questions there's the what But we for line, excluding I know, and middle when together there of it parts, getting probably very you base got think that's beyond, top XXXX? then a philosophical. of about parts even in you've into get, we combat of hey, revenues if flat business, it's of, let's piece that some. way PSA been we think have just just to Is the lot if related might to when from know, you even a take XXXX for and all and the you So would XX But pandemic about and items lot is you as even than you a important an know, tailwind about the to can model. asked floor progression a be the isolate lower set talk you of say, What sort here? a planning a

Stanley Bergman

continue in to increase. how in We the the will we a are the safe. want [XX:XX:XX] strength the return see and that dental remain to occurred we in business, of People the in specifically given were the starting quite optimistic there's June, optimistic that dentistry, surprised that fact recovery business, fast dentists offices remain that dentists huge trust quite at and

we they think much that. as I of with But So fill up say, covered think get for middle because nineteen, But sure we scepters as for down, you continue. twenty dentists say can't the the the I offices control, data office many will quarters comes Twenty they're Twenty how test a the rate the into, can getting of are dealing in the better expect inefficiency to one. of. to at data high

it in it to be the looks on up back of will build time. think on And normalcy is when I there, to availability. was number available can we'll until seventy more seems expect the to I all be. course, vaccine percent XXXX we to effective go think it how like where vaccine good of number effectiveness testing the five will But and depends, of seven the from for XX actually this a based and that

timing the those rates We example, dentist businesses, as normal middle and the more to for enthusiastic where we comfort hard But have China. year, that. that so return specialty are are assuming give on to a it's of rates seen to New there that seems precise or markets is get all again, extremely in kicks will efficient. our doing and Zealand well, Australia, it is in the sometime that that next the going very and to we markets very people But we've comfortable of normal such and is more floor. relatively vaccine in you returned less

Steve Beuchaw

bit more could perhaps been the know, wonder Two a savings you're a portfolio here? Stan, if Ok, fair. bit diciest acquiring you if Steve definition huge ups, after what for Could acutely. not but [XX:XX:XX] one realize the Steve, business a about spend of market that that's that spend calling on talk with discovery. little the little wonder I've part more for after just the a Stanley. here, that of I just that transaction. follow customer cost segment might a it segment of I more, of very market can you TDC you And on minute one then, you you're minute quick the go that be could it's a you effectively going pretty I significant

on that are that going? cost spending you you savings here points what maybe, effort? know, given you. us basis might to spending is we've where And have be into, money stop So, close dollar you know, How How a window on might you been from discovery a to like know, money travel. amount had obviously we putting permanent or things a Thank certain covid has there. and progression

Stanley Bergman

[XX:XX:XX] always market. we. that See Very a been Again, question. on there's good TSC, the

both now XXXX, of full-service, end put defined of period, business that machine the We've the being what in it online business digitally constant. there had through of telesales strong only to business where online couple the that would during is increased. a high like organized just all of with to a and order as non transacted went the way, of the decades ago non the e-commerce was a digitally dentistry, always website e-commerce originally to let's was it businesses were has like touch, only and percentage and our So is part increased own been the mail covid transacted now that businesses, only. marketing and transact relatively Up that this only increased was market e-commerce volumes the relationship

until part do the through service than it rates provide exhibited Dental we for to marketplace, both way, and have the full we channels. although faster think channels And made California in alongside particularly this online investment the only Association. market us growth abroad, these United end options we significantly Europe the to in invested States, XXXX, in the of the Into as, not important to service we Dennis that of investments is so part United an and by And To. elsewhere. and are the in alternate other States the

service will we keep network. two the from the will models So same both by side side and distribution

Steven Paladino

travel. the broader Not even includes we we're we [XX:XX:XX] travel, So than will areas investor first but on think Steve, on items, conventions, cost things focusing there's so really expenses primary to also and saving it's two be that save still like evaluating sure. It just able on, meetings. and

on knows more this call conferences, with everyone items. now is think virtual that virtual and I conventions, similarly investor this meetings

we travel. reduce conferencing believe significantly opportunity travel there Things like So for there's certainly certainly video to to work.

think it's this, while as flights. good the are skeptical not good cases a cancel I realize I in in people and previous many bit who really to it's that little as think person,

be opportunity from on still term we're we're we think And there's a do some recognize that that, longer we certainly evaluation. of doing person determine believe benefit forward. But estate a both work they And that a believe by will is. who area the evaluating. our know, a timesharing cost we But those still either that permanently over but review to that needs area basis. real to you savings opportunity person answers detailed is of that's do real drive final on the know, going costs, certainly what for lower can those us. one, hybrid little it permanent be. or fair are will just either under So second on whatever will that members one have amount they home don't footprint that We But some estate footprint, the take or you will a bit the reduce on will longer, that

We have not yet quantified the specific amount.

Steve Beuchaw

[XX:XX:XX] Ok, all thank you help. for the


come Guggenheim. ahead. will go with question line of Sant'Angelo final Please the Our [XX:XX:XX] from Glen

Glen Santangelo

question. thanks about Stan, yeah, talked up just vaccine the taking we to Oh, for [XX:XX:XX] my follow opportunity. I want from something last around quarter

what to given thought you more any closer I think, thought maybe early for in what little of play Is speculate know, be if would And Chan could you what potential a sit hopefully it supply a could will and here? maybe look given there channel? XX on the bit Shine was the vaccine days you ago, role that? they Henry successful a to Have like. to Henry it too launch you where

Stanley Bergman

be [XX:XX:XX] think role a in There workplace. at is it point be once the and vaccine outside distribution will It's offices vaccines the for in Esslin, administered physician government that. that since of Shine will some expected. is Henry I view our

very a care health business. nice workplace have We

provider initial. using available these once period so third these normal party of of operations. the become vaccines through vaccines through Government distribution return, when logistics a will And and we're commercial

to jump. we administering general. in play role as testing, role think Likewise We had we've decades. the as to we could IndusInd and a greater greater private extent, we have tests a government that in the with tests manage testing that to as of allocation for have takes the well. vaccines of sector will And allows that that will receive expect a less I

Glen Santangelo

stepping Maybe the the the just back [XX:XX:XX] was more, about CEOs curious current environment you. know, just I from all near-term one of in of kind questions around is you the going seeing than know, you trends environment, customer any two And, you the practices. discernible longer in makes term different different know, the between any independent you're this classes? forward, very maybe performance impact

Stanley Bergman

extent. the solid will a my last practice greater very the of sows a to or perhaps base practitioners the we're extent practitioners I a quite maybe in survive practitioners. basically five on year, going the runway. But or or trajectory in General practice lot private of midsized doubt think same that I has, [XX:XX:XX] four Dennis, to the but view, two the three this one XX long, is growing secure can to growing

So continue moderately grow a there's a it the I dental over and dentistry the upstream difference has is continue think in marked But trend will we've in where don't in any that moderate to be way and to years the seen movement moderate likely way. will as practiced.

the uh, I dislocation the upstream. I'm, take will significant industry although where don't will So trend place, see of any continue

Glen Santangelo

thank you. [XX:XX:XX] Ok,


conference turn comments. any [XX:XX:XX] the I'll closing back for now over

Stanley Bergman

Thank you everyone, operator. comfortable, [XX:XX:XX] very do very feel with much, We strategy. our

testing are this hybrid efficient continue model, our the PPE services across through practice digital model the that provide will markets, believe so in value certain to they better to. as medical forward. and the we very care. full comfortable that. can is physician comfortable We will important in that a are that forward infection helping offices our more good control is operate Serve globe. necessary can them needed and that will clinical offices provide offices our that be important we the both more provide strategy service in and dental And and We dental We going we that needs more customers, become only added going

strong. on well. are comfortable States the identity solid But and a but on previous equipment, will business quarter market, throughout believe year, backlogs the United disease will the a in footing. and last also numbers compared so dental perhaps as may going footing decent be that to our We Fourth solid slight. had as we in dental we're as with Europe very the that year, businesses overall, US foods back in equipment is a It

is one business the with moving excited based of comment but that in and cloud Just on this, towards any and comfortable to are software with great more very believe we value, providing second questions opportunity.

been extend So once customers. team's the nothing the mission on unrelenting his behalf let efforts thanks for where remarkable. members has me across Commitment I our to of to team short today globe end passion. again The started and of

as believe covid-XX we there well Henry move practice procedures our noted, products, our from it we business, to solid relates emerge positioned, services Again, the we more pandemic. as and that optimistic build support due the quite and for clear it based of with about of to breadth to future are from acute setting. as As the value ultimate we the shareholder setting I physician is the for dentistry care to of is And remain demand a Shine. momentum

thank our us forward gentlemen, speaking disconnect. [XX:XX:XX] you And you, and for look Ladies that on next for you call your call. now you you to and for today Thank all conclude Thank may to participating. will joining today. So