Henry Schein, Inc. (hsic) Ceo Stanley Bergman on Q2 2019 Results - Earnings Call Transcript

Henry Schein, Inc. (NASDAQ:HSIC) Q2 2019 Earnings Conference Call August 6, 2019 10:00 AM ETCompany ParticipantsCarolynne Borders - Vice President, Investor RelationsStanley Bergman - Chairman & Chief Executive OfficerSteven Paladino - Executive Vice President & Chief Financial OfficerConference Call ParticipantsGlen Santangelo - GuggenheimJeff Johnson - BairdJonathan Block - StifelJohn Kreger - William BlairKevin Ellich - Craig-HallumNathan Rich - Goldman SachsOperatorGood morning ladies and gentlemen and welcome to the Henry Schein Second Quarter 2019 Conference Call. At this time, all participants are in listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions] As a reminder, this call is being recorded.I would now like to introduce your host for today's call, Carolynne Borders, Henry Schein's Vice President of Investor Relations. Please go ahead Carolynne.Carolynne BordersThank you, Holly, and thanks to each of you for joining us to discuss Henry Schein's results for the 2019 second quarter. With me on the call today are Stanley Bergman, Chairman of the Board and Chief Executive Officer of Henry Schein; and Steven Paladino, Executive Vice President and Chief Financial Officer.Before we begin, I would like to state that certain comments made during this call will include information that is forward-looking. As you know, risks and uncertainties involved in the company's business may affect the matters referred to in forward-looking statements. As a result, the company's performance may materially differ from those expressed in or indicated by such forward-looking statements.These forward-looking statements are qualified in their entirety by the cautionary statements contained in Henry Schein's filings with the Securities and Exchange Commission, including in the Risk Factors section of our Annual Report on Form 10-K. In addition, all comments about the markets we serve, including end-market growth rates and market share, are based upon the company's internal analysis and estimates.Our conference call remarks will include both GAAP and non-GAAP results. We believe the non-GAAP financial measures provide investors with useful supplemental information about the financial performance of our business, enable the comparison of financial results between periods where certain items may vary independently of business performance, and allow for greater transparency with respect to the key metrics used by management in our operating of our business.These non-GAAP financial measures are presented solely for informational and comparative purposes and should not be regarded as a replacement for the corresponding GAAP measures. These reconciliations can be found in the supplemental info section of our Investor Relations website.The content of this call contains time-sensitive information that is accurate only as of the date of the live broadcast, August 6, 2019. Henry Schein undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of this call.Please limit yourself to a single question and a follow-up during Q&A to allow us with many listeners as possible to ask a question within the one hour that we have allotted for this call.With that said, I would like to turn the call over to Stanley Bergman.Stanley BergmanThank you, Carolynne. Good morning, everyone, and thank you for joining us today. I'd like to start by highlighting our solid earnings performance for the second quarter as we delivered 8.3% year-over-year growth in GAAP diluted EPS from continuing operations and 10.5% growth on a non-GAAP basis.Now that our 2019 restructuring initiative is complete, we're providing guidance for 2019 GAAP diluted EPS from continuing operations including those restructuring costs. We are also affirming our prior guidance range for 2019 non-GAAP diluted EPS from continuing operations all of which Steven will discuss in greater detail.While second quarter topline results reflect some softness in the North American dental sales, this was offset by solid growth in dental sales in the DACH region, dental specialty sales and medical sales. Although, we believe second quarter grow in the U.S. Dental end market was slower than in recent quarters, we note that the market growth rates in any particular quarter may vary and we had a difficult comparable in the prior year.In other words, I think it is important to take into account the 2018 growth for the quarter versus the 2019 growth for the quarter and make sure that that is understood. We reaffirm our belief that the global Dental and Medical markets remain generally stable and that we are well positioned to continue to grow our presence in the end markets we serve. We've had a track record of growing market share in the markets that we serve and we're confident that we can continue to grow our market share in the years to come.As you know, we have multiple initiatives underway at Henry Schein, aimed at positioning the company for long-term growth. This includes promoting higher-margin products and services. We continue to make good progress with the expansion of our product portfolio, with new internally developed solutions and others through acquisitions. We are well focused on optimizing our infrastructure, as we position Henry Schein for continued growth in the global Dental and Medical markets. So we remain optimistic about the future.At this time, I'll hand the call over to Steven to review our financial results and guidance and then I'll provide some additional commentary on our recent business performance and accomplishments. Steven?Steven PaladinoOkay. Thank you, Stanley, and good morning to all. As we begin, I'd like to point out that I will be discussing our results from continuing operations as reported on a GAAP basis and also on a non-GAAP basis. Our Q2 2019 and Q2 2018 non-GAAP results exclude certain costs that are detailed in Exhibit B of today's press release, which is also available in the Investor Relations section of our website.Please note that as we did last quarter, we have included a corporate sales category for Q2 that represents product sales to Covetrus under the transitional services agreements entered into in connection with the Animal Health spin-off that was completed in February of 2019. We expect these sales to Covetrus to continue into the first half of 2020. These are low-margin sales that have a negligible impact on our operating income. For 2019, we expect these corporate sales to total approximately $100 million.Turning now to our Q2 results. Net sales from continuing operations for the quarter ended June 29, 2019, were $2.4 billion, reflecting a 5.7% increase compared with the second quarter of 2018, with internally generated sales growth in local currencies of 3.5%. When excluding those product sales to Covetrus under the TSA, internal sales growth in local currencies was 2.4%. The details of our sales growth are contained in Exhibit A of our earnings news release that was issued today.On a GAAP basis, our operating margin for the second quarter of 2019 was 6.6% and declined about 15 basis points compared with the second quarter of 2018. On a non-GAAP basis, which excludes restructuring costs, our operating margin was 7.1% and essentially flat on a year-over-year basis. Again you can find a reconciliation of GAAP operating income to non-GAAP operating income in the supplemental info page on the Investor Relations page of our website.Turning to taxes. Our reported GAAP effective tax rate for the second quarter of 2019 was 23.6%. This compares with the 23.7% GAAP effective tax rate for the second quarter of last year. On a non-GAAP basis, our effective tax rate was slightly higher at 23.7% for the quarter and that's consistent with the prior year non-GAAP tax rate. Again please refer to the supplemental information page on the Investor Relations page of our website for a reconciliation of GAAP taxes to non-GAAP taxes. We estimate our full year effective tax rate will continue to be in the 24% range on both a GAAP and non-GAAP basis.Moving on to net income from continuing operations attributable to Henry Schein for Q2 of 2019, it was $116.8 million or $0.78 per diluted share and this compares with the prior year GAAP net income of $110.6 million or $0.72 per share. Non-GAAP net income for the second quarter of 2019 was $125.7 million or $0.84 per diluted share and this compares with non-GAAP net income of $117 million or 76% -- $0.76 per diluted share for the second quarter of 2018. This represents growth of 7.4% and 10.5%, respectively for net income and EPS.I'd like to provide some additional detail on our results from continuing operations and note that amortization from acquired intangible assets was $28 million pre-tax or $0.14 per diluted share for the current quarter of Q2 and that compares to $18.4 million pre-tax or $0.09 per diluted share in the same period last year.For the first half of the year that's a same number was $49.8 million prêt-ax or $0.25 per diluted share and compares to $37.1 million pre-tax or $0.18 per diluted share in the same period last year. I'll also note that in Q2 of this year, foreign currency exchange negatively impacted our diluted EPS by $0.01 per share.Let's now look at some of the details of our sales results for the second quarter. Our dental sales were $1.6 billion and decreased 0.7% compared with the prior year with positive internal growth in local currencies of 0.7%.North American internal growth in local currencies was 0.3% and included a 1.3% growth in sales of dental consumable merchandise. Note again that there's 1.3% growth is also from a tough prior year comparison where we reported 4.7% growth -- internal growth in local currencies.Our dental equipment sales and service, internal sales declined by 2.9% in local currencies on a year-over-year basis in North America. This was mainly due to a decline in high-tech equipment sales versus the same period last year, primarily related to our digital sensor center category. And also internal CAD/CAM equipment sales in local currencies in North America decreased by 6.4% in the current quarter.We faced a tough year-over-year comparison due to the Omnicam system promotion that bolstered sales in Q2 of last year. And we saw a decline in the average sales price due to promotional activity to sell out the Omnicam 1.0 units that we had in inventory during Q2, 2019. Internal traditional equipment sales in local currencies was essentially flat year-over-year.If we look at international dental sales growth, in local currencies, it was 1.3%. This included 2.3% growth in dental consumable merchandise which was negatively impacted by approximately 100 basis points due to the timing of Holy Thursday and Good Friday holidays. As you may recall, we saw benefit from this timing in the first quarter of 2019 and now we're seeing the reversal of that.International dental equipment sales and service revenue declined 2.0% versus the same period. This decline was primarily related to a change in our business model in Brazil. And if you exclude the Brazil equipment sales, our international dental equipment internal sales growth was 2.6% in local currency. And as we expected our performance in the DACH region, Germany, and Austria, as well as The Netherlands saw a boost from the IDS Trade Show in March of this year.Medical sales were $698 million in the second quarter, an increase of 13.6% with internally generated sales growth at local currencies of 7.6%. The 7.6% internal growth at local currencies comprised 7.8% growth in North America and 1% growth internationally.We are very pleased with our overall Medical sales results, which once again, was driven by solid organic growth along with strategic acquisitions. We believe our Medical group is very well-positioned with large group practices, independent physician offices, and other ultimate sites of care with strong customer relationships in each category contributing to our growth.Technology and Value-Added Services sales from continuing operations were $125 million in the second quarter, an increase of 39.9% with internally generated sales in local currencies down 1.21%.In North America, the Technology and Value-Added Services internal sales growth in local currencies was down 1.8% on an as-reported basis. However, when normalizing for product switches from direct to agency sales and ongoing transition of our technology platforms to a cloud-based SaaS model, internal sales growth in North America increased by 0.7%.Internationally, our internal Technology and Value-Added Services sales increased by 1.9% in local currencies. I'll also note that our dental equipment sales -- our slower dental equipment sales led to lower financial services revenue as we financed less equipment related to lower sales.We continue to repurchase common stock in the open market during the second quarter borrowing approximately 1.2 million shares at an average price of $64.95 for total of approximately $77 million. The impact of this repurchase of shares on our second quarter diluted EPS was immaterial.At the close of the second quarter, Henry Schein had approximately $173 million authorized for future repurchases of common stock. If we take a brief look at some of the highlights of our cash flow, operating cash flow from continuing operations for the quarter was $165.5 million which compares to $176.5 million for the second quarter of last year and we continue to believe we'll have strong operating cash flow for the full year.As part of our previously disclosed restructuring initiative, we recorded a pretax charge in Q2 of 2019 of $11.9 million or $0.06 per diluted share. This restructuring charge primarily includes severance pay and facility closing costs.During the second quarter, we concluded this 2018/2019 initiative which had a total cost of $79.5 million. We do not expect to record any additional restructuring cost in the second quarter of 2019. I'll now conclude my remarks by noting that we are providing 2019 financial GAAP -- financial guidance on a GAAP basis and also affirming our 2019 non-GAAP diluted EPS guidance range.On a GAAP basis 2019 diluted EPS attributable to Henry Schein, which includes restructuring cost of $0.08 per diluted share, is expected to be in the range of $3.31 to $3.23. This represents growth of 18% to 23% compared to the 2018 GAAP diluted EPS from continuing operations, which was $2.80.On a non-GAAP basis 2019 diluted EPS attributable to Henry Schein is expected to be $3.38 to $3.50 reflecting growth of 7% to 10%, compared with the 2018 non-GAAP diluted EPS from continuing operations, which was of $3.17. Our outlook for 2019 non-GAAP diluted EPS from continuing operations excludes the $0.08 restructuring expenses and also $0.01 credit to income tax expense that relates to the Animal Health spin-off. 2019 non-GAAP diluted EPS from continuing operations excluded certain expenses and benefits, netting to a charge of $0.37 per diluted share as reflected in our 2018 earnings press release.As always, our guidance for 2019 GAAP and non-GAAP attributable to Henry Schein is for continuing operations, as well as any completed or previously announced acquisitions, but does not include the impact of any potential future acquisitions. Also our guidance assumes foreign exchange rates are generally consistent with current levels. Finally, the guidance assumes that the end markets remain stable and are consistent with current market conditions. With that I'd like to now turn the call back over to Stanley.Stanley BergmanThank you, Steven. Let me begin with a review of business highlights from our second quarter, starting with Dental. Dental consumable merchandise sales in North America grew by 1.3% in local currency. It's on an internal basis without acquisitions. As Steven mentioned, this is a tough prior year comparable, but we also believe this result is reflective of a relatively low end market growth in the U. S. and that Henry Schein grew slightly faster than our end markets in the U.S.We believe that we continue to increase our global market share in line with our goal, which remains to grow faster than our end markets. A highlight of our North American Dental consumables merchandise business has been sales of specialty dental products which includes implants, orthodontic, endodontic solutions as well as bone regeneration products. Sales of these products continue to grow at healthy rates.In the second quarter, global internal dental specialty sales increased by 6.5% in local currencies, all on an internal basis without acquisitions. Acquisitions add to that and so our global position in the specialty areas continues to grow very, very nicely and we are pleased with the performances of those businesses.As Steven mentioned, North American dental equipment sales growth was impacted by lower high-tech equipment sales, especially CAD/CAM sales as we had a difficult comparable. During the second quarter of 2018, we had our most successful promotion of Omnicam systems. In the second quarter of 2019, we had a successful Omnicam inventory clearance promotion. So we were focused on Omnicam in this quarter from an inventory clearance point of view. And this resulted in lower units failing prices. So if you take that category into account it had a significant dampening effect on our 2019 second quarter sales of equipment.That said, Dentsply Sirona's new Primescan system has been generating a lot of excitement among dentists and we will start focusing more and more on this system, not only in Europe where we had actually done very well, but in the U.S. as our Omnicam inventory is completed.In North America, we had historically only sold other brands of CAD/CAM solutions, while we have had a relatively small market share in the past for Dentsply Sirona's CAD/CAM systems we believe we are well-positioned to grow this market share over time along with the other brands of CAD/CAM solutions that we offer and have had such great success.Let me point out also that, although traditional equipment sales reflect this was on 8.4% growth in the second quarter of 2018. In March, we participated in the IDS event in Germany, which occurs every two years. While we had a successful IDS with the second quarter sales in local currencies in the DACH region growing by 11.8%, we believe we had an extremely successful IDS and picked up market share specifically on the equipment side and the DACH regions.Our international dental equipment internal sales in local currencies declined by 2%. Why? The decline was largely due, in fact due to the negative sales impact associated with Brazil that Steven discussed.Notably, international CAD/CAM equipment internal sales experience double-digit growth in local currencies, driven to a large extent by Primescan in Europe. The dental community, manufacturers, distributors and practitioners all agree and there's a lot of published on this that continued innovation is key to improvement in digital dentistry workflow, and therefore, better quality of care and more efficient practices.For the benefit of cost, for the practice, yes but also for the patient. We expect to see increased adoption of a broad array of digital dentistry solutions over time as we educate practitioners on the benefits of these solutions that meaningfully advance the dental profession.We remain extremely optimistic about the future of digital dentistry and particularly our role in that not only with respect to dental operatories but also in the dental laboratory field where we are of course the leader in supply consumables and equipment to dental laboratories.We continue to believe that there is a significant opportunity for us to increase our global sales of CAD/CAM products in all the markets we are active in as dentistry moves through this digital platform. Today we have full access to a broad array of solutions for our customers.So, in June Henry Schein made a couple of strategic investments -- or in this quarter shall we say. In June the acquisition was of an investment of the Hayes Handpiece franchise, a leading provider of dental handpiece products and services in the U.S., Canada, and the U.K. with 2018 sales of approximately $11.3 million. The Hayes sales and repair business is an excellent complement to our expansive dental support and services business activities that are growing. In other words, yet another Value-Add Services opportunity for our customers to avail themselves of.Yesterday, we announced the acquisition of Cliniclands which serves dentists in Sweden, Denmark, and Norway with dental consumables, implants, prosthetic, and orthodontic solutions and equipment. This represents Henry Schein's dental initial presence in Scandinavia.Cliniclands have sales for the 12 months ended March 31st, 2019 of approximately $9.5 million. So, we are optimistic, comfortable with our Dental business -- with the strategy and believe we are making very good progress in our strategic goals as we advance our presence in the dental operatory and dental laboratory markets.Now, let's review the Medical business. We delivered solid Medical internal sales growth in the second quarter of 7.6% in local currencies. Our unique sales and marketing push to Medical customers including large integrated delivery networks, as well as large group practices that comprise the largest part of the market, have served as well.Many of these healthcare services groups are sophisticated large-scale organizations that require high touch approach and we have a proven model to service both ends of the spectrum, large IDNs as well as independent GPs which ultimately are Henry Schein's end customers. So, we feel good with our strategy to advance our position in the physician, ambulatory care, with the surgery centers, or urgent centers markets, both with GPs and with specialists.We are also investing in a huge amount in the specialty areas such as orthopedics, podiatry, neurology, and many others sub-segments of healthcare as well as our recent investments in North American Rescue. All this has enabled us to grow faster than the end market growth.Now let's move to the Technology and Value-Added Services business. July marked the one-year anniversary the formation of Henry Schein One, a platform designed to deliver powerful dental software solutions that help dentists operate more efficiently their practices and build awareness for the practice. So, that at the end of the day our goal is to help the practitioner operate a more efficient practice, so that they can be positioned to provide outstanding clinical care and at the same time, we are significantly focused on creating demand for our customers bringing to the attention to the public the importance of oral care and in fact identifying potential customers -- patients for our practitioners and driving their traffic into the practitioners' offices.We have spent the past year listening to our customers and rather than offer a selection of our solutions, we have created bundled commercial platforms for our Henry Schein One technology services that are specifically designed to best meet the practitioners' evolving practice needs. Of course, part of this includes our transition to SaaS or cloud-based delivery model systems. In this model our customers can reduce their upfront cost, as they will no longer need expensive application service and software at the practice.As Henry Schein One continues to innovate and effectively deliver those solutions, practitioners will access those innovations and upgrades via the cloud. This includes advanced websites, reputation management tools, improved search engine results, online marketing and automated digital communications.For each of these areas we have business functions as business is focused to advance these specific areas of software and related services in the dental practice. No one else has complete an offering as we do and no other business has the installed base that we have to seek synergies between that installed base and these value-added services in the software field that we are offering.These transitions have impacted our growth rates in the near term, but we believe that we are positioning Henry Schein One to increase sales of these higher-margin solutions through this recurring revenue model for a long time to come. We are really comfortable and in fact excited about this business model and are making progress on advancing the business model, a unique set of businesses, functions, software opportunities that Henry Schein has to take into our software customers but in general to our dental customers, laboratory customers and into the general marketplace of the dental community.We also see significant opportunities to coordinate efforts between our Henry Schein One and Henry Schein Dental distribution team. The goal is to increasingly cross-sell our software solutions with practitioners, who rely on Henry Schein for consumable merchandise and equipment products used every day. While many of these customers use our practice management software solutions today, we believe that a significant upside opportunity in selling our new patient engagement and patient acquisition tools. We look forward to beginning to launch these programs later this year.As a final comment, in July, we announced our entry into Italian dental practice management software market with a small but important strategic acquisition of a company named Elite Computer Italia. Although, we have served dental practitioners in Italy since 2004, we are now well positioned to offer the highly regarded OrisLine family of software products. Elite had sales of approximately $6 million in 2018, not material, but very important from a strategic point of view.This, of course, follows our earlier acquisition that we announced earlier acquisitions of Lighthouse, a provider of easy-to-use dental practice management patient communication software with 2018 sales of approximately $50 million, as well as Kopfwerk, a leading dental practice management solution company in Austria with sales of US$2.2 million. These solutions are being integrated into the one - Henry Schein One portfolio of technology solutions, dedicating to delivering end-to-end management and marketing systems for dental practice. Again it's not the amount of the sale in these instances, but the stickiness that we believe the Italian and Austrian acquisitions will create through our core business as well. We plan to continue to expand our technology software offerings in both North America and international markets.So in summary, we believe that we continue to make solid progress in implementing our 2018 to 2019 corporate strategic plan and reach in fact the halfway mark, which is centered around three key strategies: distribution with expansion of our core dental and Medical businesses as we continue to build scale and expand our geographies. Huge amount of progress being made in this area, and it is hard actually always to understand all the ups and downs because this is a complex set of matrix. But in general we are very, very comfortable with the progress we're making on the distribution side of our dental and Medical businesses.The second strategy is to advance value-added services, obviously, to advance our solutions, services and support for our customers. These are profitable business initiatives that also provide stickiness to our base customers and so the synergies here have shown to be very, very productive.And our third strategy, partnering with our broad set of manufacturers as well as building Henry Schein brand equity with a key goal of expanding our product margin. It is critical that our customers understand the value that we provide under the Henry Schein brand in terms of services products, so we need to ensure that our brand commitment is clearly understood while at the same time advancing Henry Schein products and services sold under Henry Schein own brands.With that operator, we would like to open the call for questions. Thank you.Question-and-Answer SessionOperatorOperator Instructions] And our first question will come from the line of Glen Santangelo with Guggenheim.Glen SantangeloYeah. Thanks and good morning. Steve, I just wanted to talk to you a little bit more about the equipment side of business. It feels like the real delta relative to your expectations was on the equipment side. And so I was hoping you can maybe unpack that equipment number a little bit and maybe; A, give us a better sense of what you saw on basic versus high-tech and how meaningful was Brazil? Just anything that might be helpful for us as we think about modeling the back half of the year.And then secondly for Stan as a follow-up with respect to the Technology and value-added services, I appreciate the comments. And it certainly seems like you have the right strategy in place with the Henry Schein One platform. But this is the first quarter I can think of where growth in this segment was negative. And so I was just kind of curious as do you view this quarter as a one-off, or was there some type of inflection that we should be aware of? Thanks and I'll stop there.Stanley BergmanOkay. Glen, I'll start with your first question. Thanks for the question. If we look at the North American dental equipment side, roughly two-thirds of our sales in North American equipment is traditional equipment and roughly one-third is high-tech equipment.What we saw was during the quarter, we saw traditional equipment being relatively flat year-over-year growth. And really the weakness on a year-over-year basis was in the high-tech category and there's really two pieces of it. There's digital imaging both the 2D and the 3D imaging which was down. And we think the big reason why it was down was average selling prices are down in this product category and it's also become more of a mature category as more and more people have access -- or have digital X-ray.Separately, the other key component of high-tech equipment is CAD/CAM. On the CAD/CAM side, again Stanley spoke about that we will focus on blowing out the old Omnicam equipment during the quarter. We really while we were selling the new Primescan, I think in earnest we'll really focus more of that in the second half of the year.So, those two categories really were down in the high-tech equipment, call it roughly 6% or 7%. And when you blend that together with traditional equipment, you get to that negative 2.9% for the quarter.If you look at international equipment, international equipment was really negatively impacted by then Brazil. And just to give you a little bit more detail, there are certain segments of the core dental equipment market in Brazil which A, are very low-margin; and B, require significant dating or terms of sale which could run a year or longer.And because of those two conditions, it's really not very profitable at all and we decided to stop selling to those segments of equipment. And when you back out that, our international dental equipment sales grew by 2.6% in constant currency. So, really we had decent growth in international dental equipment excluding the Brazil activity. So, hopefully that provides you the additional color that you were looking for.Glen SantangeloYes, that's great. And maybe Stan if we can talk about that Tech and Value-Added Services?Stanley BergmanYes sure. Just let me also emphasize that the comparables are really important. In 2018, we had a significant and successful promotion of Omnicam in the U.S. And also we had something like 8% growth -- over 8% of our traditional equipment.So, you add those too and it's sort of almost a perfect storm. But we remain highly, highly enthusiastic about our Dental business on the equipment side in the U.S., North America, Canada, as well where we're doing quite well, and in Europe. So, on the Henry Schein financials -- what is it? Call it...Steven PaladinoTechnology and Value-Add.Stanley BergmanTech and Value-Added Services there's quite a bit that goes into it. Remember from a sales point of view, it's a relatively small number compared to the whole company. So within that, our financial services, the fact that on a comparable basis, equipment sales was lower in North America than in the previous year that impacted our ability to provide leasing services.The second is within that business, there is a business called TechCentral which sells computer hardware, not a great business, but it's a service. We are selling less computer hardware than in the past because essentially the stuff can be bought at lower prices elsewhere. And I think it's just an area that is not as robust as in the past certainly compared to the previous year. And that brings -- suppresses the earnings.There's lumpiness that has to be taken into account. We have some pretty large contracts and you have to be very careful at fine point. Henry Schein's former practice solutions businesses sold a lot of demand generation software, but nowhere near the amount of demand generation software as Internet Brands sold. So we are reporting internal growth, not complete growth. If you look at the complete growth, I think, the business grew by something like 40%.It really doesn't matter exactly whether the internal growth is perfect or not. What counts is where this deal is going to end up or where this joint venture is going to end up a year from now when the -- or actually you'll start seeing it in the next quarter, when the deal has been annualized. So, whether, it's a couple of hundred basis points or even, yes, one way or the other, it's not that relevant and it's really very hard to determine what the exact internal growth rate is on these demand generation software systems, because if we switch a customer to an Internet Brands system, that's a negative on our internal growth.So I think, at the end of the day, the success of this business should be judged, actually next quarter and beyond, when this deal annualizes, because it's a very small base. And for the reasons I've given you, one can misinterpret the impact of a few hundred basis points either way, in terms of sales or even profits. OperatorThank you. Your next question will come from the line of Jeff Johnson, Baird.Jeff JohnsonThank you. Good morning, guys. Steve, I wanted to follow-up on Glen's question on the equipment side of the business in North America this quarter. I think your explanations make total sense, getting rid of some of that Omnicam inventory in that. But maybe, talk to us about just the underlying demand or an interest you're seeing from dentists on digital impression systems, number one. And maybe counter that DI versus full in office CAD/CAM. What do you think over the next year or two you might see the mix of full systems versus the DI? Would be interested in your thoughts there. Thank you.Steven PaladinoSure. Thanks Jeff. I would say that we expect to see continued interest in both the standalone DI, as well as the full systems. I think that there are some customers who kind of would like to walk before they run, so they move to DI and then hopefully over time they'll buy the full CAD/CAM system. It's hard to really predict with great accuracy which will be stronger than the other. But I think they'll both be pretty good growers. Does that help you?Jeff JohnsonIt does. Thank you. And maybe be just as a follow-up, on the consumable side in North America, on the dental side, you gave a 6.5% global, I believe, specialty business. But if I assume specialty in North America was up somewhere in that same ballpark, it would seem as if the general consumables part of your business was flat maybe even down a little bit.So two questions on that. One, just what's going on in your DSO business versus your GP or general practitioner kind of private dentist business? Any difference to call out in growth rate between those two? And just, is there any changes going on with any kind of contractual status with any of your DSOs, at least, at this point? Thank you.Steven PaladinoOkay. Thanks Jeff. No. The real issue with consumables and why it was a little bit softer on a year-over-year basis versus the prior quarter over the last couple of quarters, related to one of the months of during the quarter. We really saw an extremely weak April. We're not sure we understand exactly why April was as weak as it was, but the good news was it rebounded in May and May was stronger. And June was really very strong for us.I'll also note that the month of July, while it wasn't quite as strong as June was also a pretty solid month in consumable merchandise for us. So it really wasn't related to DSO's mix between DSOs and private practice or anything like that. It was really just that April month was extremely weak for us. And again we're kind of scratching our heads saying why was that month so weak? But yeah it rebounded in May, June and July. So that was the key reason.Stanley BergmanAnd Jeff I think what's important to add to Steven's comments is that, although we are doing very well with the specialties as a percentage of total sales of consumables, it's small. But it is important from an operating margin and operating -- profit contribution. So I think it's hard sometimes to see that when you look at the externally reported numbers.Jeff JohnsonUnderstood. Thank you.OperatorAnd our next question is going to come from the line of Jonathan Block, Stifel.Jonathan BlockGreat. Thanks guys. Good morning. Maybe just two for me. The first one, it's more of a clarification Stanley and Steven, but I think it's important one. So for Brazil it just seems like a different approach to market. And so I believe we should think about that headwind continuing into the back half of 2019 and even 1Q 2020. Is that correct before you lap and change any approach to market? And then I got a second question.Stanley BergmanI think you've got to allow for that to annualize out. An unusual phenomenon in Brazil is a couple of very strong different equipment providers. And for us to compete with them in certain areas particularly this traditional equipment it's just not worth it. We did have a similar situation in Italy, maybe a decade ago and we addressed that through in a strategic alliance that we entered into in Italy and that has resulted -- I'm not saying we will do that in Brazil or not. It's too early to tell.But we just don't think it's a good idea to operate in this traditional equipment market in Brazil when the margins are so low and the gating is so long and the risks of bad debt receivables is high. So having said that the consumable business is doing extremely well and it's our intention to focus on high-tech equipment and particularly the specialty areas in Brazil as well as our core business, which as I said is doing well. But Brazil has been a very good market for us. Don't read anything into this other than we're getting out of an unprofitable business.Jonathan BlockGot it. Very helpful. And then let's shift gears, Stan I'll stick with you. On capital deployment, you've gone through -- you finished the restructuring now. You've got the big check or cash deals from Covetrus. I know you've done some small deals. But with a better balance sheet and restructuring now in the rearview mirror, maybe you can talk to Schein's appetite for something larger, possibly more transformative and how your pipeline looks over the next six to 12 months from a deals perspective? Thanks guys.Stanley BergmanYeah, sure. Our pipeline remains solid. Obviously no deals until they're done. We have appetite for something larger but it has to make sense. There are very strict investment criteria not so much on what we paid for the business or the size of the business or the profit of the business going into it, but what it looks like once integrated into the Henry Schein portfolio. We have interest in Medical. We have interest in expanding globally on our core business. We have appetite for specialty businesses in dental and Medical. And so adding to the software platform continues. I think we put quite a bit of capital to work already this year and we expect to continue in years to come.But we -- as you know, we are conservative and we view the future of an acquisition not so much with the cash return only, but -- which has to be good, but the accounting fully loaded with depreciation and amortization. And I think if we are reporting on a cash basis, actually our performance this quarter over the first six months will be better. But at the end of the day, we prefer to go at this more conservative approach which has stood us well for the past 25 years.OperatorAnd our next question is going to come from the line of John Kreger, William Blair.John KregerHi, thanks very much. Stan can you talk about the runway that you see remaining within the digital -- various digital categories and dental? It sounds like kind of classic imaging has -- or is getting closer to a full penetration. But if you could just sort of go down the list, where do you see the biggest opportunities for penetration expansion over let's say the next five years? Thanks.Stanley BergmanYes. So, that actually is a very good question. On the imaging, the machines themselves, I think there's a lot of runaway in this country and abroad although I do think the average price per unit is coming down. I'm not saying our profit per unit is coming down, but I think there has to be some deflation in this area I would say, particularly in the U.S. So, I think that's what you could expect. But having said that, there are still many, many dentists that could use digital imaging in their practice.The second thing on the centers that's more commoditized, we're hoping that one or two manufacturers come out with some unique technology. There are promises in that regard, but we haven't seen.So, at the moment to a large extent, it's digitalized -- the digital sensors are a mature product and so it's replacement business. Having said that, there is an opportunity in the cloud area. Having said that a lot of that may actually in our world be classified over time as technology products versus equipment. So, there is opportunity there. We're very excited we've invested in that area.As it relates to the prosthetic side, I think the lab world continues to advance in that area. We're going to see a few more larger labs and much less smaller labs. As these larger labs consolidate, they're investing heavily in the space, I believe we're the leader in this space and we'll do well.As it relates to full systems, I think we will continue to see expansion in that area. We continue in Germany where the market is the most advanced. We are well-positioned to continue with the full system. We have sold the Sirona system there for decades and have the expertise. I think over time you will see our expertise expand in North America in this regard and we will do better.But we're relatively new to the Sirona full CAD/CAM system and our sales capabilities are expanding. This is a big opportunity for us going forward. As it relates to DI, I think there will be opportunity here. I think the prices are coming down. But those manufacturers that come up with new technology as Primescan is, will do well. We did well with Primescan in Europe. I think in the DACH region where we had the IDS and that was a great place to show the product. I think, you've got to show these products at shows, at conventions to really get the traction. And in the U.S. we will focus on Omnicam. I think there's a Primescan opportunity here.I also want to point out one other thing that Sirona will this year is in the fourth quarter, not the third quarter. So I think one has to take a look at all these ups and downs before judging the company's performance on any one quarter. I think you will see that in a given 12-month period, we have done well in this equipment world, also the consumables and remain quite optimistic that we will be able to continue to do well in equipment global market share.But please do not watch each quarter and make decisions on one quarter versus another. This is a lumpy business. As you'll recall, I think, four quarters ago we had something like 18% growth in the equipment. And so, we just have to be very careful as we judge the company based on any one particular quarter and make any decisions relative to one particular category. The dental equipment business is good. Dentists are investing in their practices and high-tech is definitely an area of growth.John KregerGreat. Thanks Stan. There's also one quick follow-up. How are you feeling about your clear aligner offering within ortho? Is it gaining any traction, or it's just still too soon to tell? Thanks.Stanley BergmanWell, that's also a good question. So I would say to you that, as we've said on numerous calls, we're early into this aligner strategy. We believe we have a very good solution. We're educating the markets on the benefits of our clear aligner solutions, which includes the SLX for the specialists and the Reveal for the GP.We believe that the long-term opportunity for growth in this market is attractive. The whole market is attractive and we believe that we all get a share of that, both from a sales point of view and a profit point of view. And we're excited about participating, but it's much too early for us to come to any conclusions.We know on the specialists side we're getting good traction from our KOLs, we have some very good KOLs. And the Henry Schein sales force is quite excited to be selling the Reveal product. It was voted the number one product at our June National Sales Meeting. That's not so long ago. We have to allow for our products to be understood by our specialty customers and by our sales force in the Henry Schein Dental business.We're not abroad yet. We expect to bring it -- take it abroad sometime in 2020. I think a combination of Reveal and SLX. But in any event, our orthodontic business is small. It's a meaningful business and adds to our overall market share growth in the specialty area. So kind of long story short, we're very small in this space. We're quite small in orthodontics. We're bigger in endodontics and implants, in particular in bone regeneration. So I think the clear aligners will add to our specialty position. But at this point, it's relatively small.John KregerVery helpful. Thank you.OperatorOur next question will come from the line of Kevin Ellich, Craig-Hallum. Kevin EllichThanks for taking the question. Stan, last quarter, I think, we talked about some of the innovative dental models like mobile dental. So I wanted to get your thoughts this time on the concierge dental market and businesses like dental bar in New York and other disruptors. I guess, where do you think -- where do you see that in the overall grand scheme of things? And how much could that add to your growth?Stanley BergmanYeah. What I don't think I should do is comment on any specific provider. Having said that, innovation is going to occur. I think the DSO will continue to grow. In particular this mid-sized practices continue to grow. They're bringing innovative ideas to the marketplace. I'm not sure with this retail in close dentistry is going to go. I'm quite sure that where a dentist is involved in providing clinical care it's going to be well-received. Where a dentist is not involved, I think there's going to be challenges. I'm not a clinician but I can only imagine that if dentists are not involved it's not going to -- there's not going to be the appropriate quality of care.Having said that, over time whitening products did go in the drug store shelf. And at the same time, our dentists are doing very well with lighting products. So I do believe that there will be additions to this model, equivalents of Uber in transportation. And I can only think that this will be advantageous because half of the American population doesn't go to the dentist. And in particular, I believe some of these models will attract millennials and the younger generation to see a dentist.Having said that, I have to say that dental DSOs that have retail space, ground floor on Main Street's tend to be doing very, very well. So I remain quite optimistic about the future of dentistry because at the foundation the studies that are coming out are showing that there is a direct correlation between good oral care and good health care, so I think this is only going to get better as the payers and even the federal government and local governments understand the importance of oral care in the continuum of care.Kevin EllichAppreciate that. And then with the Cliniclands acquisition, just wanted to see if you could give us any details on how fast the Scandinavian dental markets are growing. And then what are the geographies would you like to expand into? And I have a follow-up for Steve.Stanley BergmanYeah. First of all please remember it's a very small business $10 million, $9.5 million. It's essentially a electronic business with some salespeople, doesn't sell a huge amount of equipment. We will expand that. The market is a big market. I would not expect to gain significant market share with this particular vehicle, but it is a fast growing business. It will generate sales. It helps advance our digital platform.But that digital platform will have to be married with other kinds of practice management software at the time as well as equipment sales and service and we believe field sales representation.We're in this business is essentially Swedish that has some business in Denmark. We already sale some products in Denmark from our German business and sale some products in Norway. These are - Norway's a very small market. And that's the area we expect to -- this business to continue to grow. We're hopeful by the way that the business will also help us advance our implant market share and our specialty businesses in general.Kevin EllichGreat. And then how fast do you think the U.S. end market is going? I know you said you want to pace it, but just wondering if you had a number that you can help us out with.Stanley BergmanYeah. Again very, very hard to tell. We believe the markets are definitely stable; they are going to the minus category. If you had asked that question in April, I would to be concerned. But in May and June and July, as Steven pointed out, we believe there's much more traction in the markets that we're hearing from our suppliers. But the market is definitely stable and leading in a positive direction.I'm not sure there's much inflation. There could be with some of the DSO's deflation, but in any event, I do not believe the market is going backwards. For us, of course, we want to continue to grow our core businesses which obviously grow faster if the market is growing faster. But for us the opportunity lies in our specialty businesses, gaining market share with our Henry Schein One business not only in the U.S. and Canada, but globally.So, the markets are in a positive direction, but I think the Henry Schein prospects of the future are much more driven not only by the market growth, but all these other strategies to enter to advance our position into higher-margin areas and products and services and also, of course, to become more efficient as providers of these products and services. OperatorWe have time for one last question. That will come from the line of Nathan Rich, Goldman Sachs.Nathan RichHi, thanks for taking the questions. Just two quick ones for Steve. Gross margins are up nicely in the quarter. I was just wondering if you could kind of comment on what drove the expansion. I know you're rolling -- still rolling in some of the higher-margin tech businesses. So, just curious how much of those contributed to the margin performance in the quarter. And if you could kind of comment on the margin trends you're seeing for the Dental and Medical businesses?Steven PaladinoSure. So, thanks for the question Nathan. If you look at overall gross margins, gross margins were driven -- the improvement was driven virtually completely by Technology and a greater percentage of Technology including the acquisition or the joint venture with Henry Schein One.I think it's important also to note that that came with incremental expenses. So, when you look at operating margin expansion, the opposite is true. The operating margin expansion came exclusively from the Healthcare Distribution business not a Technology business. So, it's a little bit complicated there, but gross margin is driven by Technology, but operating margins driven by Healthcare Distribution. Nathan RichOkay, that's helpful. And just a very quick follow-up Steve. When you -- you talked about kind of June and July being strong kind of relative to April what's the magnitude of the delta that we should be thinking about as you're talking about the area you're seeing that's kind of month-to-month volatility?Steven PaladinoYes. It was quite significant the magnitude. If you look at North American consumables, April was actually down slightly and May and June were positive and grew from May to June. So really a big turnaround between April, that weakness that we saw versus May and June. So, we're hopeful that that's a bit of an anomaly because again we have three months after April where we saw a pretty decent growth in consumable sales. And again it's hard to isolate why that one was so weak, but it just was. Carolynne BordersHolly, we're ready to take questions.OperatorThank you. At this time, there are no further questions. I'll turn the call over to you for closing comments.Stanley BergmanThank you very much operator. As we close today's call, I would like to reiterate that we are most excited about the future of Henry Schein and many opportunities ahead in global Dental and Medical markets we serve. We are halfway through our 2018, 2019 and 2020 strategic plan.We're quite pleased with the progress we've made as we advance our key initiatives, not only to grow our footprint and our position and market share in the global Dental and Medical markets, both growth in terms of market share and profitability, the whole area of value-added services, the second strategy and marketing Schein value-added services as important connections to our core business. That's moving along quite nicely.And then, of course, to make sure that our customers understand clearly what the brand commitment is of Henry Schein, what we do, how we differentiate ourselves from our competition, the value we provide to our suppliers, and at the same time advance our market position our brands, specifically in the specialty areas, Dental and Medical that we own.So very, very excited about the future. Of course, if you have any further questions, please contact Carolynne Borders in Investor Relations 631-390-8105. And look forward to speaking to you again at the Baird Healthcare Conference in September or when we next report our earnings in early November. So have a very good rest of the summer. Thank you. OperatorThank you for joining today's Henry Schein second quarter 2019 conference call. We appreciate your participation. You may now disconnect.

Henry Schein, Inc. (hsic) Ceo Stanley Bergman on Q2 2019 Results - Earnings Call Transcript 1

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K2 Dental Chair  Dental Equipment Manufacturers | Airel India | Showcase India
K2 Dental Chair Dental Equipment Manufacturers | Airel India | Showcase India
Airel India Pvt Ltd is a leading manufacturer of , dental instruments, dental materials, dental equipment, confident dental chair, dental products, and dental tools. Get best dental chair cost, price online at Showcase India.Incorporated in 2006. Airel India Private Limited is one of the leading manufacturers and suppliers of latest and the most advantageous dental chair, dental instruments, dental materials, dental chair price, dental equipment, confident dental chair, dental products, dental tools at best price. Ergonomic access and patient comfort combined - dental chair Hygienic - Hygienic has been thought of everywhere on the dental chair as one can integrate the IGN Calbenium disinfection system, to improve asepsis. Compact - Simply placed on the top of the stand for easy cleaning, this compact designed glass bowl can be easily removed and cleaned. Comfortable - Whatever position you are working in, both the patient's and practitioner's comfort has been carefully studied so that all operations are conducted smoothly and calmly. Ergonomics - The double articulated headrest adapts perfectly to all your patient's head positions so they feel really comfortable. Both mobile joints and pneumatic vertical slide movement are adjusted by as single button·RELATED QUESTIONWhy are there few dental equipment manufacturers? Is there anyone who have an idea to manufacture dental equipment?First of all the market is limited, there are only a limited number of dentists. The competition is also tough, in several ways. If you have a new and desirable product it is easy to sell - but you will saturate the market eventually, and the demand will be stable at a low level. If you produce instruments or complete units you must compete both with the quality and the price of existing brands, which is not easy.My own experience is that dentists seldom buy cheap, low quality equipment, because it is difficult to do a good job with bad instruments, and in the end you don't save any money doing that.Chinese manufacturers produce very cheap instruments and units (I can't personally say anything about the quality level), but still the big German, American, Japanese and Finnish brands are doing well because they are considered the best you can get.Why are there few dental equipment manufacturers? Is there anyone who have an idea to manufacture dental equipment?
Oral Health in China: From Vision to Action
Oral Health in China: From Vision to Action
Chinese president Xi Jinping made clear at the National Health and Wellness Conference that health is the prerequisite for people's all-around development and a precondition for the sustainable development of China. Oral health is an indispensable component of overall health in humans. However, the long neglect of oral health in overall health agendas has made oral diseases an increasing concern. With this perspective, we described the global challenges of oral diseases, with an emphasis on the challenges faced by China. We also described and analyzed the recently released health policies of the Chinese government, which aim to guide mid-term and long-term oral health promotion in China. More importantly, we called for specific actions to fulfill the larger goal of oral health for the nation. The implementation of primordial prevention efforts against oral diseases, the integration of oral health into the promotion of overall health, and the management of oral diseases in conjunction with other chronic non-communicable diseases with shared risk factors were highly recommended. In addition, we suggested the reform of standard clinical residency training, the development of domestic manufacturing of dental equipment and materials, the revitalization traditional Chinese medicine for the prevention and treatment of oral diseases, and integration of oral health promotion into the Belt and Road Initiative. We look forward to seeing a joint effort from all aspects of the society to fulfill the goal of Healthy China 2030 and ensure the oral health of the nation.The Chinese president Xi Jinping made a keynote speech at the National Health and Wellness Conference on 19th August 2016. The speech made clear that health is the prerequisite for people's all-around development and a precondition for the economic and social development of China. The Chinese government is determined to give strategic priority to developing people's fitness and accelerating the development of a healthy China. This speech set a clear direction for China's health policy in the future. Since October 2016, the Chinese government has released a series of policies regarding health and healthy development in China. The Healthy China 2030 blueprint released by the Central Committee of the Communist Party of China in October 2016 underlined five specific targets for the all-around development of healthy China in the next 15 years, which includes improving the country's health level, controlling major risk factors, increasing the health service capacity, expanding the scale of health industry, and optimization the health service system. Of note, most of the health policies released by the government cover the promotion of oral health, indicating the tremendous political will of the Chinese government to invest in public oral health. The central idea of these policies is to realize a paradigm shift from a treatment-centered practice to the prevention-oriented management of oral diseases. All these policies will guide mid-term to long-term efforts toward oral health promotion and provide good opportunities for the development of sustainable public oral health in China.
Skid Row Dental Clinic Feels Bureaucracy's Bite
Skid Row Dental Clinic Feels Bureaucracy's Bite
When $75,000 worth of donated dental equipment landed on the loading dock of a skid row shelter, relief seemed on the way for the receding gums and rotted teeth of the city's most neglected mouths.USC dentistry professor Alvin Rosenblum thought he had cleared the highest hurdles in his effort to start a free clinic for the homeless at the Union Rescue Mission.He had secured the equipment. He had found the space. He had students ready to work.What he didn't have was a building permit. Advertisement A year later, the dental chairs are still in boxes. Teeth on skid row are still going untreated. And the shelter's building engineer waits in countless lines at the Department of Building and Safety."There is so much lip service about taking care of needy people," Rosenblum said. "But when it comes down to it, we get hung up. It's disheartening."The proposed construction to accommodate the clinic is minor. The mission needs to add doors to three non-load-bearing walls, build some partitions and repair plumbing and electrical wiring to install six dental chairs.But the permit process has dragged on for months, costing the mission thousands of dollars and thwarting the efforts of those who wish to help. Advertisement City officials concede that the process is confusing and often time-consuming and say they are working to streamline the system.But they are not working fast enough to satisfy the mission's building engineer, Richard Anderson. Flailing his arms in disbelief, Anderson told how it took three days to get past an ordinance that required him to increase parking for patients.He paused, waiting for his message to sink in:Homeless patients don't drive cars.The mission paid an architect at least $100 an hour to spend three days wading through bureaucratic regulations, Anderson said. And that was just one--real or potential--setback.In Los Angeles, he said, each piece of equipment installed in the clinic must be approved by the city, even if it has been approved elsewhere in the state. "Now, I've got to find out if these chairs have been approved by the city," he said, adding, with eyes flaring, "What if they're not?"*But Anderson said his biggest gripe is not so much with the regulations that require him to amend endless details on his blueprints. He said there's no smooth, easily understandable and logical way to get through the city's permit process. Advertisement "You get in line to get your stuff," he said. "Then you get out of line, get your receipt and get back in the same line."Last Wednesday, he said, he arrived at the department's office in the morning and didn't leave until 4:30 p.m. Often, he said, he may wait more than an hour and a half in one line only to find out it's the wrong one.He said only his faith in God is able to temper his frustration."Normally I say to myself, 'This is not eternity,' " he said. "I'm not going to be frustrated in eternity."Anderson said there is a good rationale behind most regulations, and that complying with any individual requirement is not that onerous. It is the cumulative effect of dozens of seemingly minor regulations that takes a toll. And some regulations do not originate with city bureaucrats.Changes in the federal Americans With Disabilities Act require the mission to reverse the swing of two bathroom doors. When the building was completed three years ago, the doors fit the code. Now they don't. That's $1,000 per steel doorway, Anderson said.As far as negotiating Los Angeles' permit process, Victor Penera, the Building and Safety Department's chief of engineering, acknowledged that clients can be confused.He said a task force Mayor Richard Riordan established three years ago streamlined the arcane permit process when business and civic leaders reported that it had caused a 50% drop in construction over five years. Advertisement Riordan's press secretary Noelia Rodriguez said the mayor approved 66 of the task force's recommendations to cut red tape, half of which he implemented by executive order. The others, she said, are working their way through the City Council.Even so, she said, the city still loses businesses and other organizations due to what she called the byzantine permit process."When any type of organization can go across to Burbank and get away from red tape, it's a no-brainer," she said. "People would do that."But Penera said the building and safety office has become more user-friendly and is trying to reduce confusion for those who are not accustomed to the process."We've addressed that by having a greeter at the entrance," he said. "He's there to help you."Penera said case managers are also on hand to sit down with applicants, explain the process and work through all potential hitches in their plans.But Anderson said no one has ever greeted him or informed him of case managers."Oh no, no, no, " he said. "If they got that going, it's the best-kept secret in City Hall."Delays have become so routine that Rosenblum has stopped seeking donations. He has no answer to benefactors' questions about when the clinic is going to open.Regulatory nightmares convinced Rosenblum's colleague, Dr. Charles Goldstein, that Los Angeles was not the place for his good works. Goldstein runs a mobile dental clinic that treats poor children from Baja California to the San Joaquin Valley. More than 70,000 children have been helped since he began in 1971, he said--all outside the city of Los Angeles."It's too tough to work here," he said. "It's too difficult because of the regulations."In Goldstein's case, Los Angeles Unified School District health regulations were the problem. His dental students are required to get tuberculosis tests every six months, which he said is unnecessarily stringent.Meanwhile, at the mission, many of the poor and homeless do not have Medi-Cal and can't find regular dental treatment. Last week, a 27-year-old woman named Cindy brought her 2-year-old daughter from her nearby apartment to get food."I have problems with my gums," Cindy said. "They bleed. It's painful. I try not to eat meat because it hurts so bad."Her teeth are yellow and her gums have receded to expose the roots. Big gaps mark where she had pulled out dangling teeth with her bare hands.She said she looked forward to using the free clinic at the mission mostly because she doesn't know where else she can get treatment for her daughter, who does not have Medi-Cal.*Goldstein said many homeless people suffer from periodontal disease, and that he's seen more than his share of infections and swollen faces as a result of neglect."In most cases it's not life-threatening," he said. "But it's pain and it's suffering."Missing front teeth can often be a major hindrance in finding a job. Some employers think missing teeth indicate laziness or stupidity, Rosenblum said.He said the clinic would offer all the services of a general dentist, including emergency treatment and cosmetic work for those looking for jobs.He said USC would also start a program to teach parents and children preventive care and would distribute fluoride and sealants to prevent decay. He said the mission's clinic would be comparable to the largest free clinic in the county, the Los Angeles Free Clinic at Beverly and La Cienega boulevards.Dental students, supervised by faculty, would do the bulk of the work, Rosenblum said. He estimated that students would handle 60 appointments every week."There are people who need attention," said Rosenblum. "A lot of people could have been treated in this last year."
Inside the Dental Office - Tools of the Trade
Inside the Dental Office - Tools of the Trade
The dental office can be a mysterious place for the uninitiated. Even for those who have been going to regular appointments their entire lives, it might be difficult to name or pick out more than a couple of the common instruments. Of course, the most important tool in the hands of any competent dentist comes in the form of their own talent and experience. This is why the average person can typically not purchase dental equipment over the counter. While the tools have specific purposes, they are best left to the professionals. Here are some of the tools of the trade and how a dentist uses them to care for your teeth. The Mirror There is perhaps no more important tool in a dental office than the mirror. Without it, a dentist would have a very difficult time seeing behind teeth and getting a good look at exactly what is going on inside a patient's mouth. If you've ever tried to examine your teeth in the mirror, you know how frustrating it can be. You can get a good look at your front teeth, and even a few of those closer to the back. But when it comes to looking around at the other side or examining those in the back of your mouth, you're going to be out of luck. In combination with some bright lights, the dentist can use small mirrors to get a very close look at your teeth and gums, helping them to diagnose problems. The Scraper No dental office is complete without several forms of this important tool. Very sharp and extremely hard, the scraper is used to scrape away plaque from the teeth before it can harden to the point where nothing can get rid of it. The dentist will usually bring it out during an examination, simultaneously getting rid of some of that build up while also watching out for more serious problems like gum disease and cavity formation. It is this scraper that usually causes the gums to bleed during an appointment, but when used carefully on healthy gums, bleeding should be kept to a minimum. The Drill Teeth are made from the hardest material the human body can form-enamel. That means a special tool is needed to break through this enamel without smashing the tooth altogether. The drill serves that purpose. Even people who don't have an inherent fear of the dentist tend to get a shiver up their spine when they think of the sound that drill makes, but without it , many advanced surgical procedures would be impossible.
Hot Wheels: Arizona Man Designs Flame-Throwing Wheelchair
Hot Wheels: Arizona Man Designs Flame-Throwing Wheelchair
A fire-spitting device has turned an ordinary motorized wheelchair into a set of hot wheels.The flame-throwing wheelchair is the brainchild of Lance Greathouse, a Glendale, Ariz., dental equipment repairman."It started out as a rescue helicopter seat. I had an electric golf cart and an old lawn mower and put the parts together and it was born," Greathouse told ABCNews.com.His other creations in development include a six-wheel-drive chair, an ejection seat wheelchair and a "Dr. Evil chair," named after the Austin Powers character, complete with a barbecue."They show the person's personality - what they're like, what they're about," Greathouse said.In between creating tricked-out wheelchairs, Greathouse said he also restores a few each month at his own expense and donates them to an Arizona charity."There are so many wheelchairs laying around not doing any good. I'm constantly getting requests for chairs," he said.His passion for restoring wheelchairs and dreaming up custom creations came, he said, when he watched his brother's five-year battle with a rare form of Parkinson's."I saw people treat him really differently in his wheelchair," Greathouse said. "It was, 'What's happened to you?' They felt sorry for him"After he created a souped-up wheelchair for his brother, Brent, Greathouse said it "changed the way people looked at him."He said he hopes his custom creations do the same thing for other people who use them."They want to live and have fun just like everybody else, [but] there aren't any choices out there," he said. "A lot of people think I am crazy, but every disabled person who sits in my chair says, 'We love it!'"
Newport Man Blew Investors' Millions Gambling in Vegas, Feds Say
Newport Man Blew Investors' Millions Gambling in Vegas, Feds Say
A Newport Beach man who allegedly secured millions from investors for his dental equipment company blew the money gambling in Las Vegas and paying for his children's private-school tuitions, according to a federal indictment.William Knox is charged with six counts of wire fraud for taking investment money for his company, Osseous Technologies of America, but spending the money on himself instead, the indictment says.Knox raised at least $3.5 million - including $1.5 million from an investor in Pasadena - from 2010 to 2012, says the indictment, which was handed down this month.Knox allegedly also convinced a Laguna Beach resident to wire $200,000 for a 30-day loan, saying it would help keep the business running and that another dental company would preparing to buy Osseous for $10 million. Advertisement But the same day that the $200,000 arrived in his company's bank account, Knox allegedly withdrew the money in cashier's checks and deposited it in a gambling account at the Venetian casino in Las Vegas, the document alleges.Court documents describe Knox as following a similar pattern with the Pasadena investor, whose money ended up at another casino.Using a hidden recorder planted on one of his alleged victims, FBI agents recorded Knox admitting he gambled away the money, according to court documents. The tape reportedly recorded Knox saying he contemplated suicide after he realized that his alleged fraud would be uncovered.Knox went on to say that he was committed to a mental facility after he told a therapist he'd thought of killing himself and his family, according to an FBI agent's description of the recording. Advertisement Agents arrested Knox on Nov. 18 after prosecutors filed a criminal complaint. The grand jury indictment was unsealed Dec. 4.Knox has pleaded not guilty and is free on a $125,000 bond. An attorney for Knox said she had little to say yet about the case."I'm still waiting to get any evidence from the government," said the lawyer, Stephanie Ames.ALSO:Nearly 100 cats, dogs rescued from filthy conditionsSan Jose shop owner is glad he sold winning Mega Millions ticketNCIS agent pleads guilty in bribery scandal, may get 20-year Advertisement Jeremiah Dobruck writes for Times Community News
Fred Lee's Social Network: Vancouver Fraser Port Authority's Gala
Fred Lee's Social Network: Vancouver Fraser Port Authority's Gala
Days before Thanksgiving, port terminals and suppliers came together to give thanks and support the communities where they live, work and play. Presented by the Vancouver Fraser Port Authority, a capacity crowd gathered for the annual Port Fundraising Gala in partnership with Global Container Terminals, Fraser Surrey Docks, Western Stevedoring, and DP World Vancouver. Sharing a commitment to create thriving communities where they operate, the port terminals and suppliers for 18 years have come together to support their port region, raising more than $1.9 million for deserving charities in Metro Vancouver.The 19th edition would catapult the tally well beyond the $2 million mark. Vancouver Fraser Port Authority president and chief executive officerwelcomed attendees to the multi-course fundraising dinner co-chaired by , and .This year's event was held in honour and support of three charitable organizations, Harvest Project on the North Shore, Mission Possible in Vancouver's Downtown Eastside and Reach Child and Youth Development Society south of the Fraser River. Through ticket purchases, the sale of auction items, and the generous contributions of attendees, the evening endeavours looked to meet or exceed last year's $240,000 raised to support the charities working hard to improve the lives of thousands of people each year."The people and businesses we call neighbours make Metro Vancouver one of the world's most livable regions, and as a port community, we share a commitment to create thriving communities where we live and work," said Silvester. "By working together, we continue to prove that when we raise one another up, we all flourish." Established in 1988, the Chinese Canadian Dental Society of British Columbia (CCDSBC) was created to promote and encourage its members to contribute to their community and the Canadian society-at-large. Over the years through its annual gala fundraiser, CCDSBC has raised funds to establish bursaries and endowment funds, update dental equipment at Vancouver General Hospital, and contributed to the purchase of a mobile community clinic in partnership with UBC's Faculty of Dentistry.For CCDSBC's 30th anniversary celebrations, the B.C. Dental Association's Save A Smile program, supporting the urgent dental care needs of B.C. children from low-income families, was beneficiary of the charity dinner. To date, the program has supported 2,000 children in accessing dental treatment, says Dr. Angelique Leung, chair of the program, addressing the party crowd that convened at the Hyatt Regency Hotel for the Cruise Around the World-themed party.Captained by longtime event chair , the dental-do of fine food, wine and entertainment would take guests around the globe. Sought-after luxury cruises to Asia, the Middle East and the Mediterranean, part of an exclusive live auction, would contribute to a record night and $100,000 collected, putting smiles on the faces of everyone involved. Taking a page from the CCDSBC playbook, dental professionals from the South Asian community hosted its second annual fundraiser. Created in 2017, the Indo Canadian Dental Association (ICDA) welcomed a capacity crowd to Richmond's River Rock Show Theatre for its Sitarry Night Gala, held over the Thanksgiving weekend. Committed to promoting and raising funds for oral health care in the community, this year's lavish Bollywood luau led by Dr. benefited the B.C. Oral Cancer Prevention Program at UBC and efforts to lessen the hardship caused by the disease though public education, early detection and effective treatmentAttended by some one hundred dentists and their loved ones, industry partners, notable dignitaries and community and leaders, 500 guests were in attendance for the TD-sponsored, black-tie merrymaker. A spirited live auction and a raffle of a one-once bar of gold donated by Nicola Wealth Management had revellers digging deep into their wallets to support the cause. The evening of camaraderie and fundraising also paid tribute to , the legendary South Asian VOICE photo journalist often referred to as the "Smile Catcher" who passed away from a lengthy battle with throat cancer.
How Moving to Bolivia Saved Our Retirement
How Moving to Bolivia Saved Our Retirement
By David Hammond, InternationalLiving.comThis article comes to us courtesy of InternationalLiving.com, the world's leading authority on how to live, work, invest, travel, and retire better overseas.Nestled in an Andean valley at 6,000 feet, the Bolivian city of Tarija is truly one of South America's great undiscovered gems. You'll find colonial architecture, a near-perfect Mediterranean climate, and vineyards outside town stretching to the horizon. It's also one of the most affordable cities in the Americas: you can live a comfortable retirement in a centrally-located apartment for $1,200 a month, including rent, enjoy a delicious three-course meal for as little as $4, or visit one of its many medical facilities from $20. Tarija is home to 235,000 people, among them a small community of around 250 expats -- mostly from Europe, North America, and New Zealand. Last year Martin and Joyce Powell joined them when they sold their home and belongings in Glasgow, Kentucky, and began a new life as expat retirees in Tarija. Like many expats, the couple's main reason for moving abroad was financial. They calculated that, even when Social Security payments came, they wouldn't have enough to retire. "In the U.S., I would have worked until I died," says Martin. "Moving to Tarija was a way to make things work out. And we can enjoy a much higher standard of living here." In Kentucky, Martin, 60, had been a professional butler. Among his clients was Kentucky Governor John Y. Brown, Jr. He also had his own commercial cleaning business that he and Joyce, 58, worked at together. A friend from Kentucky had retired to Tarija, Bolivia, 10 years ago. This friend returns to Kentucky every year or two, and when he learned Martin and Joyce were considering retiring abroad, he encouraged them to visit Tarija. "We loved the climate," says Martin. "We don't have extremes in temperature, and the nights cool off." Average daytime highs range between 78 F and 86 F. Nighttime low temperatures range from 46 F to 62 F. "Tarijia is different enough to be interesting and small enough to be comfortable. We are still discovering new things. We love the older Spanish-style buildings and the plazas," says Martin. "There are lots of parks, and they are all clean and beautiful. But the best part of life here ... we don't have to work." As for Joyce, she says: "I love the mountain views here. Every time I look at them they fill my heart." Tarija's colorful and bustling main plaza, Plaza de Armas Luis de Fuentes y Vargas, has several good restaurants nearby. And just two blocks away is another plaza: Plaza Mariscal Antonio José de Sucre, with green lawns, lush trees, and wide walks. Altogether, Tarija has 15 plazas and parks, as well as four lookout points, where there's high ground, called miradores. Colonial architecture in Tarija includes several churches, such as the Basilica of San Francisco and the Church of San Roque, built in the early 1600s. For shopping, you'll find 11 markets where you get the freshest produce at the best price, as well as family-owned bakeries and butcher shops. You'll also find half-a-dozen supermarkets--good places to get paper goods and toiletries. An Emphasis on Family and FriendshipMartin and Joyce have made friends with local Bolivians and they eat out with other expats regularly. Sometimes the Powells' Bolivian neighbors hold dances in their homes, clearing the patio or terrace to make room. "We dance for a couple of hours, then they serve a meal. After that, we dance for a couple more hours. It's a traditional Bolivian dance that's like line dancing--with the women on one side and the men on the other," says Martin.The Powells also enjoy going on picnics in the nearby countryside with their local friends. "Everyone brings their own meat and a side dish," says Joyce. "At the picnics they cook over charcoal. They season steaks with salt and lemon when they barbecue here," says Martin. Martin and Joyce's friends, who've lived in Tarija all their lives, have taken them to special spots outside town. One is a thermal lake. "It's a two-acre lake that feels like a two-acre bathtub," says Martin. "When you go deeper, it gets warmer instead of colder." Joyce has practiced paper-folding, making origami figures, since she was young. In Tarija, some of the local children have taken an interest in her hobby, and Joyce is now teaching them the craft. The couple pays $200 a month for a centrally located apartment. "It's one-and-a-half years old. It's a two-bedroom place, with a garage on the first floor, near the plaza," says Martin. Martin and Joyce pay around $21 a month, total, for their home utilities, which include electricity, gas, and water. WiFi is around $38 a month and they pay $15 a month for their two smartphones. They have limited-minute plans, with their unused minutes rolling over into the next month. They also have MagicJack, a VoIP phone service that allows them to make unlimited calls to the U.S. over the Internet, for $40 a year. Like many expats in Tarija, Martin and Joyce get by fine without a car, opting instead for public transportation. A taxi is around 60 cents per person to the edge of town. Taxis with a regular route like a bus, called taxis trufis, cost around 30 cents per person. A bus ride is around 22 cents."But most of the time we walk to do our shopping and take care of daily errands," says Joyce. As for food prices, "canned foods, processed foods, and imported foods cost more [than the U.S.]. Fruits and vegetables are cheap. Dairy and meat are about the same," says Joyce. Healthcare for $75 a monthMartin has a heart condition. One night he had a cardiac emergency. Joyce called one of their new local friends, who helped her get Martin to Tarija's cardiac hospital. "They saved his life," says Joyce. "The total cost was $600. The most expensive thing was the seven hours of oxygen." The cost to visit the heart doctor for a checkup is $22. "It's not Star Trek modern, but it's clean, sufficient, and nice," says Martin of the cardiac hospital. Martin and Joyce also visit a dentist in Tarija. "The dental equipment here is more advanced than I've seen in the U.S.," says Martin. Minus medical expenses, the Powells' total living costs come to around $1,000 a month. Most of the medications that Martin gets cost only 30% of what they would in the States. The couple are currently in the process of joining a Bolivian healthcare plan that will cover almost all of their medications for $75 a month. Martin and Joyce are enjoying a retirement that would have been impossible in the U.S. They're living in a place and a climate they love. And they're sharing the adventure of learning a new language and discovering a new culture. "For me, it's choosing something new that I like. It's a beautiful thing," says Martin. "We didn't come 4,000 miles to live the same way we did in Kentucky," says Martin. "We like the Bolivian people and find them warm and hospitable." To overcome the language barrier, Martin and Joyce took Spanish lessons. They've joined a local church where they've made friends and get an opportunity to practice their Spanish. And Martin builds his vocabulary reading the local paper. "There is very little crime here. There is a little bit of 'ticky-tacky' (unfinished homes and graffiti), but I don't see it anymore. It's like a wrinkle on someone you love," says Martin.Related Articles:Retired In Our 40s And Homesteading In BelizeEscape The "Rocking Chair" Retirement In Costa RicaCotacachi, Ecuador Is What Small-Town USA Once WasEarlier on Huff/Post50:
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