Henry Schein at Bank of America 2025 Healthcare Conference: Strategic Growth Plans

On Wednesday, 14 May 2025, Henry Schein Inc. (NASDAQ:HSIC) participated in the Bank of America 2025 Healthcare Conference, where CFO Ron South outlined the company’s strategic initiatives amidst mixed market conditions. While the dental market shows promising growth, challenges like foreign exchange impacts persist. The company remains committed to its BOLD+1 strategy aimed at enhancing operational efficiency and driving earnings per share (EPS) growth.

Key Takeaways

• Henry Schein reaffirmed its 2025 revenue growth target of 2% to 4%, despite foreign exchange challenges.
• The BOLD+1 strategy aims for high single-digit to low double-digit EPS growth from 2025 to 2027.
• Dental market trends indicate increased dental office build-outs, driven by demand outpacing supply.
• The company is targeting $75 million to $100 million in cost savings by the end of 2025.
• Adoption of Dentrix Ascend, a cloud-based practice management system, is progressing with 10% customer penetration.

Financial Results

• 2025 Guidance:

- Revenue growth target set at 2% to 4%, primarily driven by internal growth.

- Acquisition growth expected to contribute less than 1%.

- Foreign exchange posed a 1.5-point headwind in Q1, with plans to offset this impact throughout the year.

• BOLD+1 Strategy:

- Targeting high single-digit to low double-digit EPS growth from 2025 to 2027.

- Aiming for $75 million to $100 million in cost savings through restructuring by the end of 2025.

• Medical Segment Growth:

- Home solutions business growing in high single digits internally, and 23% year-over-year with the Ascentis acquisition.

Operational Updates

• Dental Market Trends:

- January was affected by weather-related softness, with improvements noted in February and March.

- Encouraging trends observed in March and April, with increased de novo dental office build-outs.

• Implant Market:

- Strong growth in European implant business, while the US market remains flat with a focus on value implants.

• New Products and Services:

- Launch of TAPR Pro conical implant product and new eligibility products for patient insurance coverage.

• E-commerce Platform:

- Beta version launched in the UK and Ireland; global launch planned for Canada and the US in the second half of 2025.

• Integration of Dental and Medical:

- Shared distribution infrastructure with 25% to 30% common SKUs under integrated management.

Future Outlook

• BOLD+1 Strategy Drivers:

- Continued push for new products and services launched in late 2024.

- Expansion through acquisitions in home solutions.

- Leveraging infrastructure for specialty product growth and cost management.

• Implant Market Strategy:

- Focus on value implants for general practitioners and expansion within DSO practices.

• Home Solutions Growth:

- Investment in home solutions due to faster growth and better margins.

Q&A Highlights

• KKR Relationship:

- KKR’s Capstone division aids in operational improvements and private label strategy.

• Dentrix Ascend Adoption:

- Approximately 10% of customers have adopted Dentrix Ascend, with ongoing focus on SaaS model development.

• Excitement for the Next Year:

- Accelerated build-out of dental supply and leveraging KKR’s expertise.

For a detailed understanding of Henry Schein’s strategic initiatives and market performance, readers are encouraged to refer to the full transcript below.

Full transcript - Bank of America 2025 Healthcare Conference:

Alan Lutz, Host, Healthcare Tech and Distribution at BofA, BofA: Welcome to day two of the BofA Healthcare Conference. My name is Alan Lutz. I run Healthcare Tech and Distribution here at BofA. We are very excited to welcome Henry Schein. We have CFO Ron South.

Ron, thank you for joining us.

Ron South, CFO, Henry Schein: Thank you, Al.

Alan Lutz, Host, Healthcare Tech and Distribution at BofA, BofA: I wanted to start talking about recent dental trends that you’re seeing in the market. So if we go back to the call from, I believe, last week, talked about January, some weather related impacts, and then February and March seems like the trends improved for the dental end market in North America. Can you talk about, you know, sort of the trajectory of dental demand through the

Ron South, CFO, Henry Schein: course

Alan Lutz, Host, Healthcare Tech and Distribution at BofA, BofA: of 1Q? And then as we think about what you’ve seen in April so far, can you comment on if that’s held the trajectory that you saw exiting March and just really anything you’ve seen as we go into 2Q?

Ron South, CFO, Henry Schein: Certainly. So, as you mentioned, Alan, January was a soft month. I don’t think it was only soft for us. I think a lot of the market indicators and a lot of the patient traffic surveys that were out there indicated it was a soft month. And that I’m referring primarily to The US when mentioning that, but we did attribute a lot of that to some of the weather that occurred in the middle of the month in the middle of the country.

There was also the fires in California at that point in time. And so, you know, some of the softness we saw in January began to turn itself around. A little better patient traffic in February, and then that improved even more so in March. I will say, you know, one of the things we said on the call last week was that we were encouraged by what we saw April in terms of coming out of as we came out of the first quarter. Sometimes in March and April, you can get a little bit of timing of Easter, you know, year over year.

I like to look at those as really a combined two month period. And, you know, when we looked at March and April, that combined two month period, you know, continued to be encouraging. So, you know, patient traffic can really be driven by a couple of things. We do think that kind of your standard hygiene visits continue to be fairly consistent, but I do believe that there is a continued demand for dental services in The U. S.

That exceed the existing supply. One of the other encouraging things that we saw in a metric that we follow closely in the market is we are starting to see an increase in the rate of build outs of dental offices and new de novos being built at a rate that’s a little higher than what we have seen historically over the last couple of years. So while that’s not gonna play into the immediate increase, an immediate increase in short term, or I’m sorry, in patient traffic, we do see that as an encouraging metric at this point.

Alan Lutz, Host, Healthcare Tech and Distribution at BofA, BofA: And then on the increase in de novo build outs you talked about, you know, on the call, can you talk about, I guess, a couple of things? Why do you think that’s taking place right now? And then, I guess, there any way to size how much more it is versus maybe a quarter or two ago? And then how broad is it? Is it maybe regionally dependent?

Are you seeing it across the country? Just any more color on the quantitative and qualitative factors of that specific piece as we think about the growth of de novo builds.

Ron South, CFO, Henry Schein: You know, I would say in terms of what’s driving it, I got to believe that, you know, and a lot of this is being driven by the larger DSOs, and I have to believe that the larger DSOs are as aware as we are of the fact that the demand for dental services exceeds supply. So I think there’s a level of confidence that they have that if they are adding dental practices to their portfolio, that they’re going to be operating at a very high utilization level within those offices. So I think that’s part of it. There may have been some hesitancy over the last year or so that could have been associated with expectations of interest rates coming down, and you eventually get to a point where you’re gonna decide if it doesn’t look like interest rates are gonna come down, then you’re gonna start that investment process. So I do think that’s part of what may be driving this, but I’ll emphasize that might be my theory as opposed, you could talk to others and maybe perhaps get different opinions on that, but that’s my opinion on this, right?

In terms of the geography associated with this, I don’t think we’re seeing it concentrated in any one place, that I’m aware of. You know, no one has brought that to my attention. So, I have to believe that it’s relatively broad across, you know, across those areas that, you know, there has been some speculation, in the past that there are certain pockets of rural America where there is a shortage of dentistry, perhaps are trying to fill some of that. I don’t know that for a fact, but it wouldn’t surprise me if that was the case.

Alan Lutz, Host, Healthcare Tech and Distribution at BofA, BofA: And then around that, you mentioned demand exceeds supply. Think, you know, yesterday we were having a conversation, it was difficult for you to get a dental appointment recently, and patient traffic trends seem to be pretty stable, pretty good. Are more dentists retiring over the past year or so? Is that a driver of this? Or what do you think is causing those things to be or causing demand to exceed supply?

Is the issue that there’s fewer practices that are now open because of that, or is there something else that’s maybe going on?

Ron South, CFO, Henry Schein: Well, we did definitely see an increase in the retirements of dentists in the early stages of the pandemic. I think there were a lot of older dentists who just decided that was a good time for them to kind of exit their practice. So I think that did shrink that supply a little bit. Also, you flash back to 2020, ’20 ’20 ’1, you also had a lot of disruption in the end market associated with, you know, people changing dentists. You had a lot of people switch from a dentist perhaps that was close to where they worked, to a dentist that was closer to where they lived, they were working from home more frequently.

So there was a lot of turnover amongst our customers and throughout the entire sector of patients. That created some opportunity for a lot of practices to add a chair, do some renovation. And we we had a period of time there in ’twenty one, ’twenty two, where every quarter our standard equipment, which is the chairs, units and lights, the chair that the patient is being treated in, we were getting double digit increases kind of year over year in the sales of standard equipment. So there was this kind of churn that has already happened. That is now that dust has settled and we saw that base of business come up on equipment and now it’s kind of leveled off a little bit.

Alan Lutz, Host, Healthcare Tech and Distribution at BofA, BofA: Okay. I I want to switch gears a little bit. The update on the 2025 guidance. Guidance was unchanged, but it seems like a lot was going on underneath the hood over the past quarter tariffs. There was a big change in FX.

Can you talk about kind of what obviously, the guidance didn’t change, but can you talk about some of the things underneath the surface that may have evolved in the guidance from when you initially gave it last week?

Ron South, CFO, Henry Schein: Certainly. So, you know, the first thing I’ll address is FX, because I think there may have been a little confusion there. Our original guidance that we provided at the February assumed that the 2025 foreign exchange rates would be consistent with the foreign exchange rates in 2024, Even though at that point in time, the rates did differ somewhat, but we were looking at it more from what we wanted our original guidance to really be driven by what we thought we could do from an internal growth, plus a little bit of acquisition growth perspective. What the rates did since the February, what happened was we ended up with a in the first quarter, we had about a one and a half point headwind on a top line basis associated with foreign exchange versus the prior year. But based on where we were, rates were when we released earnings on May 5, we feel like we could compensate for that if those rates were to stay consistent the balance of the year.

So it got us right back to a foreign exchange neutral perspective, right? So we held to that 2% to 4% revenue growth, primarily all of that being internal with a small amount, less than 1% of that coming from acquisition growth. That was on the foreign exchange piece. In terms of the other, some of the other things that are happening in the business, you know, we really, most of, you know, other aspects of the business are meeting our expectations. In spite of that kind of slow start in January, while we look at what’s happening in dental consumables, we also had a little bit of a hurdle with dental equipment in The U.

S. In the first quarter, because last year in the first quarter, we had an inflated sales number because of the deferral of certain equipment installations from the fourth quarter of ’twenty three into that quarter. When we kind of looked at that and kind of looked through those numbers, we were, you know, essentially meeting expectations across the board.

Alan Lutz, Host, Healthcare Tech and Distribution at BofA, BofA: And then, you know, that was more of a nitty gritty question on the 2025 guide, but as we think about the BOLD plus one strategy, 2025 to 2027, you talked about getting back to high single digit to low double digit EPS growth. On the call last week, Stanley called out operational efficiency through cost management, growing specialty, growing own brands, expanding digital. As you think about the drivers to get back to those types of growth rates sustainably, how do you think about the biggest factors, the biggest drivers within your business that are going to get you there?

Ron South, CFO, Henry Schein: Certainly, think, you know, the things that we’ve been, I’d say probably most focused on, that are getting a lot our attention internally is, you know, one is, you know, a continued push of some of the new products and services that we launched in the latter part of ’twenty four, maintaining traction with that throughout ’twenty five. So the TAPR Pro conical implant product as an example. We’re converting a lot of existing customers and really starting to shift that focus more to converting new customers or other people in the market to that product. It can be a long process. A lot of your typical oral surgeon isn’t quick to convert on implants, but we are working on that process.

It also includes some new technology products that have come out of Henry Schein One, eligibility products, for example, that are very much a sticky point with our customers. It gives them greater visibility into what the complete insurance coverage is of their patients so they can talk to them about what some of the treatment plans may be, what the cost will be to that patient without having to interrupt the treatment to call the insurance company to get that type of clarification. Very important, that’s another example. It also includes kind of expanding through acquisition in some of the areas that we feel very bullish on, specifically in the home solutions part of our business in medical. It’s really our acquisition in the first quarter of Ascentis, you know, prolongs that.

Ascentis gives us access to continuous glucose monitors that we can sell. And just as a point of clarification for everyone, we’re not providing home health care, we are providing products to home health care providers. So we can now distribute continuous glucose monitors to patients who are being treated at home, very consistent with our strategy in medical of following the patient. Where are more and more people getting their care? They’re getting it in ambulatory surgical centers on an outpatient basis.

They’re getting more and more of their treatments in a physician office as opposed to a hospital. And now you’re seeing more and more people being treated at home, hence our increased investment in home solutions. I would say another aspect that we’ve really have focused on, and you mentioned the BOLD plus one strategy, Alan, the L in the BOLD stands for leverage. And it’s how do we better leverage this great infrastructure we have in place to help grow other aspects of the business? So we’re now starting to sell more of our specialty products, leveraging our US Distribution Sales Force, for example.

We’re selling more and more of our endodontic products, specifically through our US sales force and starting to get some good traction on the endodontic side. So how do we, you know, better leverage the whole business? And that was one of the things we remain focused on right now. A fourth item would be, you know, how do we continue to manage our costs? And one of the things we mentioned on the call last week was that our original goal, we really feel good about our original goal of 75,000,000 to $100,000,000 of cost savings based on the restructuring plans we put in place over the course of ’twenty four, the initiatives and the actions that we’re taking over the course of this year, that by the end of this year, we will have completed enough actions that we feel like we’ll be very much at the high end of that 75,000,000 to $100,000,000 range in terms of reduction in costs going into 2026.

And then the last item would be the global e commerce platform. This is something we’re really excited about, and something that we have made a significant investment in over the last several years, And in the latter part of ’twenty four, we launched essentially a beta version of this in The UK and Ireland, and taking some of the feedback we’re getting through that process and applying it to The US. And in the second half of this year, we’ll be launching the Global Ecommerce platform in Canada and The US. And we feel like that will help us, you know, really kind of help the customer experience in terms of being able to see, click on videos, to see demos of equipment, to better understand what are some of the product offerings we have, and we think it can ultimately enhance some revenue growth and some margin growth as we get to.

Alan Lutz, Host, Healthcare Tech and Distribution at BofA, BofA: Thank you for all of that. The first thing you mentioned, Ron, was implants. And, you know, before we get into Henry Schein’s strategy, would love, you know, a second to talk about the market growth rate for implants. You know, the growth has been pretty stable at Henry Schein. Has the market changed at all over the past couple of quarters?

I guess compare 4Q to 1Q, April versus 1Q. Is there really any change in demand either on, you know, on the upside or downside? Just curious if anything there has evolved over the past couple of quarters.

Ron South, CFO, Henry Schein: Yeah, think when you, you know, when you’ll think about the implant market, you really almost have to look at it as a matrix, because you have the European market versus The U. S. Market, you have the premium implant market versus the value implant market. If I look at our European business, our European business was, you know, had very good growth in the first quarter versus the prior year. It really grew towards the high single digits.

And, you know, we’re fairly confident that the market is not growing at that same pace. So we feel like we were, you know, we were definitely successful in taking some market share in Europe, and specifically in the Germany, Austria, Switzerland region, and the DACH region, where, you know, we really saw our most successful growth. And that’s a, you know, is it a premium, is it a value? I would say it’s closer to a premium, but it’s a very price competitive type of premium product, right? In The U.

S, what we’re seeing in The U. S. Is a relatively flat market, and what we said on the call was that we see a flat market in The US and our revenue growth is consistent with that, meaning our revenue growth was flat as well. But I think in The US, what we’re seeing is a little more pressure on the premium side and a little bit of upside on the value side. And so, you you’re getting more and more growth.

What I’ll say is that the growth in implants in The US for us has been disproportionate to the value as opposed to the value implant, as opposed to the premium implant, which for us is an indication of more and more general practitioners who are looking to perform implants within their practice, as opposed to referring that work to an oral surgeon. But a general practitioner will typically only address this if it’s a straightforward procedure for them. If it’s a complex procedure, they’re still gonna reference that to an oral surgeon. If it’s a straightforward procedure, they’re comfortable doing that with a value implant, which means they don’t require a lot of kind of tack on service that comes with that surgical planning, other service that you would get with a premium implant. Our DSO customers are very interested in this.

They see this as an opportunity for them to increase the revenue base of their existing practices, if they can maintain these implant procedures within their practices, as opposed to referencing them out. So the fact that we got access to this value implant through our SIN acquisition in Brazil, who had an FDA approved value implant, has given us a much broader and meaningful portfolio in The US. So you have the TAPR PRO conical coming from BioHorizons, and you also have the value implant coming from SIN has really kind of filled out the portfolio for us in The U. S. And it gives us a lot of optimism going forward with that, you know, with that business, you know, going forward, even though it has been relatively flat the last couple of years as the market has been flat.

Alan Lutz, Host, Healthcare Tech and Distribution at BofA, BofA: Yeah, you know, that was really my next question is around the strategy within the implant business. And Ron, you basically just answered the question that I had there. But as you think about maybe to go a step further, you talked about growth in value, maybe a little bit less so in premium. Is there any way to talk about maybe some of the early success you’ve had with SIN? Is it too early to talk about the rollout there in terms of the contribution, the acceptance, the interest level?

I assume it’s a lot of DSOs that are interested. I guess maybe unpack that a little bit. And then the same with the ProConical.

Ron South, CFO, Henry Schein: Yeah, I think, you know, with the SIN value implant, we do feel like it is early. Let’s be clear on that, it is early. But I think we’re seeing some traction, we do believe that, you know, we can stimulate some better growth there going forward. You know, a source of that will be our, you know, some of our DSO customers who have expressed an interest in having a value implant. We didn’t have a value implant to offer them, you know, before the SIN transaction.

So that was a big part of that, you know, a very important aspect of that transaction for us. I would say, you know, the TaperPro conical is a very important product for us in the sense that it is a type of product that is a deeper connection, and it is a portion of the market, the implant market, in which we did not have an alternative to offer to the practitioners. And, you know, that is up to about 50% of the market. So that was 50% of the market that we really didn’t have a product that we could address that need for, and that really filled a big gap for us. But like I said, that’s the type of product that you’re looking, you know, ultimately, we’re going to have to convert others from competing products to that product, and that is a slow process.

That will take some time, but we do feel pretty comfortable with the quality of the product. We’ve got a lot of good key opinion leaders out there who have really given us favorable reviews of that product. And we think that’s gonna bode well for us going forward.

Alan Lutz, Host, Healthcare Tech and Distribution at BofA, BofA: I want to switch gears to medical for a second. I think the flu season hit The United States maybe later than it typically Can you talk about what you think the steady state utilization is within medical, what you’re seeing in the first quarter, and anything you can say about April?

Ron South, CFO, Henry Schein: I’d say on the core medical side, it’s really still kind of in that low single digit range, you know, just in terms of steady state. You’re right, we did see, you know, some benefit to revenues in February and March. I mean, we really see that more in, for example, point of care diagnostic kits, which is an important product category for us. When you see those sales begin to go up, you know it’s because a lot of people are going to their physician and are being tested for strep, they’re being tested for flu, they’re being tested for a number of potential respiratory illnesses. And we did see, you know, some growth in that product category versus last year.

But, you know, there’s also just the ongoing churn of consumables, that when you have an increase in patient traffic going through the office of just other things you’re gonna sell, the cotton balls, the gloves, everything that go with it, get consumed every time there’s a patient visit. But I think over time, it’s still kind of in a low single digit range. I do think what outpaces that growth, and something we talked about on the call, is our home solutions business. Our home solutions business is growing in the high single digits on an internal basis, with the acquisition of Ascentis, it grew about 23% year over year, but about 9% on an internal basis. So, you know, hence the ongoing emphasis as we look at our M and A pipeline, where can we continue to grow on home solutions, because that aspect of the business is growing faster than core medical, and it does get better margins than core medical.

So it is an attractive area for us to continue to invest.

Alan Lutz, Host, Healthcare Tech and Distribution at BofA, BofA: One of your peers last week in the medical side announced they were looking to separate the medical segment from the rest of their business. And they said that there wasn’t a lot of overlap between that specific business and their other more core business. As we think about Henry Schein, can you talk about the overlap in terms of SKUs, technology, you know, shared facilities, things like that between medical and dental. Is there a lot of overlap? Are they relatively separate?

Anything you can say to that?

Ron South, CFO, Henry Schein: Certainly. So, you know, over the last multiple years, you know, by design, we have really overlapped those businesses more and more. So it is a shared distribution infrastructure. So we don’t have any distribution centers that are dedicated only to dental or only to medical. They are shared distribution centers.

I’d say on a, you know, there’s about 25 to 30% common SKUs across the two. And even the way we approach managing those businesses now is very much a joint process. You know, the senior management is a US distribution senior management team. It’s not a dental team, it’s not a medical team, it’s a US distribution team. There are dedicated sales forces that would be the most distinct feature that separates the two.

So, you know, there are a lot of, the customer service, you know, if someone calls up and says, I didn’t get my box or my box is damaged, that call isn’t going to a specific dental customer service or a specific medical customer service individual, is going to customer service. The one area you did mention that is distinct would be on the technology side, and by that, to clarify what I mean there is Henry Schein One, which sells practice management software to dentists, that is a dental specific software. That is not a software that we sell. We don’t have an offering right now of software that we sell to physicians. So that is the one area that is dental only, you know, within our business.

But the distribution business itself, as it stands, it is a highly integrated type of approach to market. And we do see a lot of, I’ll say, combination of dental and medical services being provided, an increasing number. Community health centers are an important customer category for us. More and more of those community health centers are offering medical and dental services within their premise. You also have somebody like an Aspen Dental, who has opened some medical facilities as well, and they can continue to buy through us.

They don’t have to go elsewhere to buy, Aspen being a very important dental customer of ours. So you are seeing more and more of a crossover, even in the end market, between dental and medical services being provided.

Alan Lutz, Host, Healthcare Tech and Distribution at BofA, BofA: I think one member of KKR has joined the Henry Schein board, another will join shortly, assuming they can. You know, I guess as you think about or as they think about the opportunities that they’ve brought to your attention or the early conversations that you’ve had, I would say conversations that we’ve had with investors really center around two areas: cross sell opportunities to drive revenue, whether that’s more through, you know, DSO customers and standardizing different products to sell there. And then there’s OpEx. You’ve obviously been doing a restructuring program. Can you talk about, I guess, within those buckets, what are the certain initial areas of focus that KKR has, you know, between those two buckets?

Or if there’s other things that are outside of that, what are some things that they’re bringing to your attention?

Ron South, CFO, Henry Schein: Yeah, so we have had, you know, multiple discussions with KKR, specifically with people from their Capstone division, which is like their internal consulting arm. And, you know, we’ve really, at this point, the approach with them has been more, they have asked us, you know, what are your initiatives? What are the most important things you’re working on right now? And what can we do to help? So, you know, you’re always looking at, is our go to market as efficient as it can be?

What can we do to help with overall margins? We’ve talked a little bit to them about private label strategy, what makes sense in terms of private label strategy. And of course, G and A is another area that you mentioned. So they bring a wealth of information, they bring a lot of experience. It’s been, I think, some very, very good discussions with them in terms of seeing their perspective.

It’s interesting getting someone who, you know, a group of people who have seen a lot of different things across a lot of different industries and a lot of different businesses provide their perspective of our business. And so we’re still on the stage of sharing a lot of information with them, getting some feedback, and that will continue to progress and we’ll continue to begin to prioritize some of these things perhaps as the year goes on.

Alan Lutz, Host, Healthcare Tech and Distribution at BofA, BofA: Got it. Makes sense. And then shifting gears again, Dentrix Ascend, and some of the technology assets that you have. You mentioned on the last call good adoption of cloud based systems into DSOs. As you think about the opportunity to grow Dentrix Ascend within your customer base, you know, what’s the go to market strategy?

What’s the current penetration rate within your DSO customers? Just trying to understand, is there an urgency for them to make the switch? How can you really get them, you know, over the finish line to make that move?

Ron South, CFO, Henry Schein: So, you know, I think we’re approaching about 10,000 customers on Dentrix Ascend right now, which still puts it at about 10% of our customer base. Most of those customers are new customers. You do pick up some conversions though from the on prem Dentrix product to the SaaS product. I think we’ll increase that pace of conversion as the Ascend product becomes more attractive. We continue to really emphasize the development of the SaaS model, you know, versus the Dentrix model.

A lot of our Dentrix customers like that product, and you’re going to have to show them something that is much better than what they have to get them to convert. And so that’s really where we are prioritizing a lot of the development. Having said that, we still, obviously, Dentrix is a very important part of our business. We still fully support our customers who are on Dentrix, and that’s going to continue on for some time. But over time, we’re going to see more and more, you know, some conversions, and most of our new business is in, you know, those who are signing up for the SaaS model versus buying an on prem model.

Alan Lutz, Host, Healthcare Tech and Distribution at BofA, BofA: That’s great. And then with the last thirty seconds or so, you know, what are you most excited about with Henry Schein for the next year? Where do you think the most opportunity lies or what are you most excited about?

Ron South, CFO, Henry Schein: Well, I said, some of the metrics that we’ve been looking at in terms of perhaps a little more of an accelerated build out of the end supply of dentistry. Obviously, we’re excited about that. We think that that provides us with some optimism around expansion of supply, which in turn will put more patients into seats. It’s just that much greater churn of consumable merchandise, greater sales of equipment to equip those offices. But I’m also excited about the relationship with KKR.

I believe that they bring a great perspective for us. They bring a level of expertise and a track record that if we can couple it up with the expertise that we have internally, you know, it should really be powerful for us. I’m excited about that as well.

Alan Lutz, Host, Healthcare Tech and Distribution at BofA, BofA: All right, that’s great. We’ll leave it there. Thank you, Ron.

Ron South, CFO, Henry Schein: Very good. Thank you.

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