Financial Reports: Schein, Sportsman’s Guide

Schein Income Lower on Fluvirin
Although Melville, NY-based Henry Schein (Nasdaq: HSIC) reported strong net sales for both the fourth quarter and the year, its bottom line was hurt by the pulling of the Fluvirin vaccine by its manufacturer.

The supplier of medical, dental, and veterinary products was the primary distributor of Fluvirin to the U.S. market. On Oct. 5, Chiron Corp., the manufacturer of Fluvirin, said it would not supply the influenza vaccine this season. Schein took a fourth-quarter one-time charge of $13.2 million as a result.

Fourth-quarter net income totaled $29.6 million, compared with $35.5 million for 2003. Excluding the charge, net income for the quarter ended Dec. 25 would have been $37.9 million, up nearly 7% from the previous year. Net sales for the fourth quarter were a record $1.19 billion, up 26% from $946.9 million.

For the year, sales reached $4.1 billion, up 20% from $3.4 billion for 2003. Net income was down 7%, to $128.2 million from $137.5 million.

Acquisition Fuels Sportsman’s Guide
Thanks in part to its June 29 acquisition of The Golf Warehouse and, South St. Paul, MN-based The Sportsman’s Guide (Nasdaq: SGDE) reported higher annual sales and income.

The outdoor gear cataloger posted a 23% rise in earnings, to $7.6 million for the year ended Dec. 31, compared with $6.2 million for 2003. Sales jumped 19%, to $232.5 million from $194.7 million.

Excluding the acquisition, sales from the core business rose 6% for the year. Internet-based sales accounted for 42% of its revenue, compared with 36% a year earlier.

Sales for the fourth quarter increased 29%, to $92.5 million. Fourth-quarter net earnings increased 21%, to $4.6 million.

In a release, Sportsman’s Guide said it made progress toward paying down the debt incurred as a result of the TGW acquisition, ending the year with $8.6 million in cash and $5.0 million in long-term bank debt.

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