Good morning, everyone. My name is John Stansel. I'm a member of the Healthcare Services research team here at J.P. Morgan. I cover Henry Schein. Today, we have Stanley Bergman from Henry Schein, the CEO, and then we have Ron South, CFO. Stan is gonna kick us off with a presentation, then we'll go to about 20 minutes of Q&A. So-
Thank you, John.
Stan, the floor is yours.
Thank you.
You can go up there, or you can do it down here if you wish.
Thank you. Ron?
Yep.
That's you.
Oh, yeah, the cautionary note: if I could read this entire slide, but our presentation would be over. We'd run out of time. So I think everyone understands the safe harbor rules, so please be aware. Thank you.
So, we were asked to put a deck together, John. We've done that, but we will fly through the deck very quickly, and I believe it's on our website, right, Ron? So-
I believe so, yes.
Great. So, we're not going into great detail, but there's a lot of information here. So Henry Schein is the largest provider of products and related services to office-based healthcare practitioners and alternate care sites. The data is on the screen here in terms of size. Over 1 million customers, about 1.5 million practitioners that we service, and again, this is all available on the website. On the distribution side of the business, we're the number one distributor of dental products globally.
We believe we're the number 2 provider, distributor provider of healthcare products to the alternate care sector of healthcare, of, primarily in the medical arena, but this includes physicians, ASCs, ambulatory surgical centers, urgent care centers, renal centers, cancer centers, various government agencies that provide medical services, all outside of acute care sector, and now, of course, into the home care products sector. Our estimated market shares are on the screen. It's essentially an offering of practically every product that our customers would need to run their practice, and, our goal is to drive efficiency, of course, like all companies, and we have, of course, great supply chain systems and very, very good information systems for our customers. Now, side by side with our distribution businesses are our specialty businesses.
We are the number 3 provider of oral surgery products, that's implants, bone regeneration-type products. Number 2 in the endodontic space, and we're a relatively small player, but have quite a nice offering of traditional orthodontics, wires and brackets, and aligners. These are all often under brands that Henry Schein owns. We do a significant amount of R&D in this space, and you can see all the information on the slide. So we have the distribution businesses, we have the dental specialty businesses as it relates to products. We will be entering into the medical specialty businesses with orthopedics. We've announced a transaction there, which we hope to close in the next few months. And then the third leg is the technology and value-added services.
In this regard, the anchor to the mall, if you will, is our practice management software in dentistry, which is the largest provider of practice management software in the world, but more important, the electronic medical record and a whole series of products that operate off this electronic medical record system. In that connection, we've recently introduced an AI system that is quite effective in helping practitioners operate a more efficient practice, diagnosis, and advancing, obviously, quality of care. We have offerings for large practices, smaller practices, the largest provider of software to dental schools and traditional legacy systems, and now gradually moving a significant amount of our business to the cloud. What I think is very, very important is we connect the electronic medical record, the practice management system, all the way to the dental lab through a clinical workflow.
There is more information on this on our website. We provided a lot of information during our investor day in February, but these are all the steps that an efficient clinical practice could install. I think we have the most efficient system, the most extensive system in dentistry, all under one roof. Obviously, these components can be bought from different sources, but we have it all under one roof, connected in an interoperable way and a way that embeds these various components into our practice management software. Our strategic plan for 2022 to 2024 ends this year, is built around four big concepts. One is to build our high-growth, high-margin specialty and software and other value-added services businesses, which I described earlier on. To operationalize our distribution businesses from an efficiency and customer satisfaction point of view.
We're investing significantly in digital software in that area and leveraging our relationships. We have relationships with customers on the dental and medical side for many different businesses, but these customers may not necessarily buy from all of the Henry Schein businesses. So there's a huge opportunity, which we're capitalizing on, to leverage relationships from one side of the house to the other, and driving digital dentistry and digital medicine is a key area of focus. Of course, the plus one stands for our commitment to all five of our constituents: our suppliers, our customers, our team, our investors, and society. We have been a socially responsible company for decades now, before the concept of ESG actually was conceived, and I think this is one of the major reasons why we've had very good growth over the last 28 years since we've been a public company.
Ron, do you wanna go through the financial goals?
Certainly. The long-term financial goals, for those of you who are familiar with the Investor Day we did last year, these are consistent with what we communicated then, but just to kinda reinforce them. We have long-term financial goals, total sales growth in the 6%-8% range. That is as reported, so that would include some acquisitions in there. Non-GAAP operating margin expansion of a minimum 10 basis points a year. We do think that we could have some years where we could exceed that quite well. And non-GAAP diluted EPS growth of 8%-11%, going forward.
There could be some years, for example, you know, the last couple of years where we've had some headwinds with PPE, market conditions around PPE pricing, COVID test kit, market demand, that, you know, makes it a little more difficult to achieve that 8%-11%. But we think over the long term, non-GAAP diluted EPS growth of 8%-11% is an achievable goal for us. To the right-hand side, you can see, you know, non-GAAP operating income contribution from our, what we consider to be a, our high-growth, high-margin businesses. That would be our specialty businesses in dental, implants, endodontics, orthodontics, plus our, our technology and value-added services. In 2019, those businesses contributed 32% of our operating income.
We have a goal of those businesses contributing 40% of operating income by the end of next year, and we think we're well on the way to achieving that goal. That takes us to investment merits.
Go ahead, Ron.
Certainly. You know, so in terms of the investment merits, it is. We have, you know, the core distribution business, where we think we can continue to provide some operating efficiencies. We always are looking for opportunities for some tuck-ins, where we can leverage existing infrastructure or to expand our geographic footprint, similar to the acquisition we did in Switzerland in 2022, and gave us some distribution in that part of Europe. We continue to have, you know, the long-term sustainable earnings growth, and that continues to be a focus for us going forward. I'll skip down here, you know, to the last bullet. You know, a deep and experienced management team. We're a very long-tenured team at Henry Schein.
We understand the importance of delivering on the results and delivering on our promises, and that is something that is ingrained within the culture of Henry Schein. So, with that, I believe we're there.
Okay. So that, I think that was a wonderful overview of kind of the longer-term trajectory of the company. Moving to the recent history, I think, you know, we're a few months on from the cybersecurity event that happened in October 2023. As part of third quarter earnings, you called out a $0.55-$0.75 headwind to adjusted EPS for the fourth quarter. Can you just remind investors how to think about that, the different components, and anything you've kind of learned as time has gone on, as you've got a little bit of distance behind you?
Right. So I, I'll deal with the concepts, and Ron can cover the numbers. So, John, we, we recovered pretty quickly from a customer service point of view, the ability to service customers. We were hit in middle of October. Within a few days, we were shipping products, but our website was not working for about a month. We wanted to be very careful about ensuring that we didn't infect our customers in any way. But essentially, we restored all of our systems through our backups, and most of our systems, certainly all of our customer-related systems and all systems enabling us to undertake business, whether it's procurement or shipping, have been up and running for a while. So, we're obviously cautious, like all companies should be, in the area of cybersecurity.
Unfortunately, healthcare companies have been hit particularly bad in the last year and a half. But we're back to undertaking business in a way that we were undertaking business pre the event. Ron, maybe on the math?
Yeah, so certainly. So we have estimated a $0.55-$0.75 per share impact from, you know, from the cyber event. We have not provided any changes to that estimate at this point in time. You know, the effect on the business was largely restricted to our distribution business, to our U.S. medical and dental distribution business, as well as in Canada, and as well as in Europe. It did not impact distribution in Brazil, Australia, which are really kind of the two larger markets outside of North America and Europe for us. It had very little effect on our specialty business. The only really only impact was in orthodontics, which is a small business of ours, as you're aware. So this is really restricted to distribution.
So the recovery did involve some providing some promotions in an effort to regain that small group of customers who are more what I'll say, transactional type of customers for us. They weren't necessarily those who we had very close strategic relationships, but those who were transactional, who simply go to the website and buy product, and one day they went to the website, and they couldn't buy product, so they went to somebody else's website. So we did have some promotions to regain a lot of that business. We feel pretty good about that recovery. We're still analyzing those results. Those promotions have not continued into 2024, but we continue to analyze what the effects of this might be. When we disclose our Q4 earnings, we'll of course be updating this information.
With that release, we will also be providing 2024 guidance, and to the extent that the cyber incident has any effect in 2024, we'll be sure to kind of call that out and talk to that as part of that guidance.
Great. Then I guess kind of following that up, do you feel you learned something about your sales force here? You know, how they were able to manage through this? It sounds like you think your customer base is relatively intact.
Yeah. So, John, our sales force played a very important role during the period before our website was up. So customers could order from us using our tele-services and our sales force, who could pick up the orders. This was for a period of 3-4 weeks. Of course, our larger customers were able to buy from us using various forms, electronic ordering. And so our sales force got very close to our customers again in a very different sense, and I think it was a good morale builder, and in the end, I think a way in which we gained a significant amount of trust. Where we were challenged was with the episodic customers that would buy digitally, that go and look at a price on our website and on a competitor's website and then come back to us if they liked the price.
Obviously, they couldn't go to the website for that month, but that's behind us now, and we've been providing website services now for a while.
Is there a way to think about that episodic group as a part of your customer base?
Yes, they're an important part of our customer base. We do have websites under different brands. Most of those were working, but the Henry Schein website was not working, and this impulse shopping, this notion of customers shopping, looking around for products and pricing, I think is a key part of our strategy, and we are investing in that area through our global e-commerce platform. So it is an important part of our business. I think customers will just include us again now in their shopping spree when they go to look for products at different prices.
You said you kind of completed promotions. Is there a chance that you, after you've reviewed the data, closed the books fully, that you would resume them in targeted ways, or is there data that you look at in that area?
Well, we've always had targeted promotions.
It's critical, whether it's through our e-commerce platform, whether it's through social media, through our sales force, through our telesales, or simply even mailers today. We still have, believe it or not, mailers to customers. That's always been a key part, and we will be very careful to scrutinize our data, and if a customer hasn't come back, we'll of course offer promotions. But I don't think we'll have to offer the significant promotions that we offered in the fourth quarter, which were really geared to get towards customers coming back, but more important, to saying to our customers: "You were loyal to us. Thank you. We want to share your pain, and here's a deal.
I think moving to the other major topic in the dental space has been kind of the macro backdrop since October. I think there was, there's been a variety of commentary coming out of the third quarter about general pockets, where things have been stronger or weaker. Some publicly available surveys have been a bit more ambiguous since then. You know, what is your view on kind of the state of the dental industry right now and demand trends broadly?
So I think one has to be, John, a little bit careful. At the end of the third quarter, there were a lot of cancellations that were related to flu. I don't know if it was COVID per se, but some COVID, but just general flu. So there was pullback, and there was cancellations, and then from the data we've heard, it's public information, we've read, it seems like things got better in October, November, maybe December. So I'm not sure to what extent there's these macro concerns. There are some macro concerns. I think there's been a lot of dialogue about macro concerns in the implant field. Well, I think there were a lot of implant procedures undertaken in the post-COVID period, call it end of 2021, 2022. Those were not run rates. Those were unusual situations.
You saw it also in the orthopedic field and ambulatory surgical field. So I think a lot of that has been absorbed. There obviously is some pullback because of economic uncertainties, but I'm not sure the degree of pullback. I'm certainly don't think it's massive. It's small amounts, I think, at the edge. Equipment, you could say, we didn't have double-digit growth, but we also were working off a backlog in 2021, 2022. And now I think we've mid-single digits are more back to a normalized pattern, taking into account that traditional equipment is doing well. Digital equipment is doing well, but at a lower price per unit with many more units being sold.
There's a lot of puts and takes here, John, that are relative to the dental industry, but I would not correlate this with anything in a huge way relative to the economy. I mean, there are countries where there are issues, but-
Mm-hmm. That, that gets me to my next question: You know, how do you feel about-- I feel like we sometimes myopically focus on the North American dental market. How are you viewing international growth?
I think Europe is a little bit more down. I don't think it's as significantly down. I've read a lot of negative comments about Europe. Look, in the dental world, specifically in equipment but also in consumables, prices were taken up quite high in 2022, maybe the end of 2021, 2022, and there was some resistance by customers who said, "You know what? There are alternatives to maybe some of these brands at a higher price, and I'm gonna look at them, whether it's secondary brands or it's the Henry Schein corporate brand." So there has been what some may call deflation, but it's not a deflationary concept in the normal way in which we talk about inflation. It's really a switching of brands, and so that resulted in some reduction in sales, perhaps, and not necessarily in units.
So, there have been some reduction in sales, but I don't think that's necessarily only the result of a concern with the economy, the macro concern. The units are still there, it appears, on our side, but more a dampening on pricing of particular products.
Got it. So you mentioned implants earlier on. How are you thinking about the difference between, say, a high-end and a low-end or value implant, how you're positioned there? Obviously, the S.I.N. acquisition-
Mm-hmm.
- gives you a new value implant that can enter the U.S. market and has some DSO interests. Now, how are you seeing... So you look forward how the implant side of the business grows, where and where the pockets are that drive that?
Right. So Henry Schein has always had the view that we, our Camlog and BioHorizons implants are premium implants. Having said that, they sold, have traditionally sold at a discount to maybe some of the global brands. So we've always viewed that we have a value premium brand. At the same time, we cultivated an economy area of implants, particularly doing well in Germany with Medentis, but we didn't have really a economy brand in the United States that could compete with our major competitors in implants. Each one of them had an economy standalone brand. So what the investment in SIN has enabled to do, enabled us to do, is bring in a Brazilian implant, high quality, and be in a position to sell it at a lower price than in the United States, the BioHorizons brand.
And that has positioned us to compete with our competitors, who, as I noted early on, did have such a separate brand, and this is particularly important with DSOs, where we were at a disadvantage in that we did not have an economy brand. Those products are approved in the U.S. They were approved shortly before the closing of the deal, and we believe we will be able to go into DSOs with an offering that we didn't have in the past on the economy side and do well. But I will say that the premium market, I don't think, is in trouble. What is growing is the economy as more patients are brought into the implant world, and implants are being viewed as standard of care.
Understood. You mentioned DSOs there. You know, how are you thinking about the overall DSO, you know, cadence of expansion these days, you know, given kind of changes in rates, and expected changes in rates in 2024? How do you, how do you view kind of-
Yeah
... de novo and acquisitions for the DSO space?
So the DSO world, in simplistic terms, could be divided into two. Those DSOs that had good funding, yes, their cost went up, but they have funding, and they can expand their DSOs. De novo, additional equipment, adding, AI software, investing in software. And then on the other side, you have the DSOs where they were with a shoehorn funded, and those DSOs are struggling a bit now. I'm not aware of any that have really, are not gonna make it, but they're going to have to cut deals with their banks and whatever, and get new equity. But there's still enough income to keep these DSOs in business. So there are parts of the DSO world that are not really investing as much as they were, but the well-run DSOs are investing.
Is that kind of one of the key drivers for that traditional backlog that has run kind of above trend for you for the last couple of quarters?
I don't believe there's a weighted mix towards DSOs. I think it's just the normal mix. But dentists are investing in their practice. I think in this post-COVID period, they want the practice to look modern, sterile, and that's to a large extent why we are seeing sales growth in the traditional equipment. I would also say that some practices are growing because patients are now seeing the practitioners in the suburbs, whereas they may have seen them in the city before. So those patients are investing, and of course, the whole world of digital, namely the, DI devices, these are all growing. If you take out the printers, I think that market is growing.
Now, shifting topics a little bit to the medical side of the business. What do you see as the state there? I mean, we're kind of coming off of a year where you were lapping through some COVID headwinds. You know, you've got the PPE normalizing at this point. What do you see as the puts and takes around medical distribution, particularly in the alternative site of care, as you've highlighted? And then I guess, you know, it's a topic du jour, but, you know, cough, cold, and flu kind of picked up in December. You know, is that something that meaningfully matters to your, your business?
Right. Without getting into the quarter, let me say, take out PPE, take out COVID tests, and take out potential increase in sales because of these new flus. A couple of them going around right now. The Medical business continues to grow in that patients are moving from the acute care setting to the ASC, to the physician office, and to other set areas of care outside of the acute care setting. So that business is in a good market and continues to grow for us.
You just recently announced kind of the expansion into orthopedics with the TriMed acquisition. Now, that seems to include medical specialty business.
Yes.
Should we, I guess, A, how does it enhance the value proposition for an ASC or, say, a specialist who may do something in that area? And then, B, should we think about that business as contributing kind of similar to a dental specialty from, like, a growth-
Yes
... and margin profile?
As we've been talking for a while, and when we had a discussion at our Investor Day on our strategies, we have been talking about a specialty area in the medical arena, similar to what we have in dental. But there are more options on the medical side, and we will focus specifically on devices and maybe some other products that ultimately end up being used by our customers, whether it's the physician in their practice, and particularly, as you pointed out, John, the ASC, the ambulatory surgical center. So we want to use those relationships with the ASCs, those GPO relationships, to advance our medical specialty business.
With the TriMed acquisition and with our business, where we actually manufacture saws and blades for orthopedics, we have a platform that we will start advancing in a similar way, correctly, as you point out, to what we've done in the dental specialties world.
Okay. And so thinking about the, what, $1.2 billion of acquisitions that you've completed over the last recent, you know, year plus, how do you think about that contribution, knowing that you also funded that with some leverage? Is that something you think can accrete in 2024, or is that something where we think that's more of a story for 2025 at this point?
Take this Ron.
Certainly, clearly from an operating income perspective, on a non-GAAP basis, okay, excluding the amortization expense, these, these will be contributors to operating income growth for us in 2024. You know, as a group, they should be fairly neutral to us, from an EPS standpoint, you know, given the interest expense associated with doing the acquisitions. But, we're comfortable that we will see, clearly see an accretive position, with this group as a whole. You know, kind of look at them as the, as, as like you said, there's a kind of a $1 billion plus of acquisitions out there in 2025.
Then thinking about, you laid out kind of a capital allocation framework as part of the Investor Day last year. Clearly, this is—this year, 2023, was a bit of a deviation from that kind of framework, because I think you—$300 million-$400 million was kind of the range that you talked about for M&A in a given year. You know, how does that change how you think about capital allocation in 2024 and potentially 2025?
I suspect, you know, 2023 really demonstrates the opportunistic approach we take in M&A. And, and in 2023, we had a, you know, a vast array of opportunities that we were able to take advantage of. We had ourselves set up well with a clean balance sheet. We had leverage of under 1. We had about 0.7 leverage going into 2023. So we were able to take on, you know, some financing in order to achieve the acquisitions that we saw as being, you know, very beneficial to advancing our strategic plan. I suspect-
... I mean, my expectations are for 2024, our capital allocation will return to something that is much more consistent with the run rate we had going into 2023. Meaning that what we will still do some acquisitions, you know, expect that to be more in that $300 million-$400 million range that we had prior to 2023. We'll continue to do share repurchases. That will also be typically, well, that was around $300-$400 million as well. And plus, you know, now we have to look at if there's opportunities, as we look at the kind of so-called accretion model of capital allocation, is there increased efficiencies around actually paying down some of the debt we incurred in 2023?
That'll be an additional factor that we'll have to take into consideration when looking at capital allocation.
Okay. So I think we've listed a bunch of puts and takes about 2024 here between, you know, cybersecurity, potentially some of the macro you've laid out in the past, that's a, potentially moving to the lower end of your market growth ranges. The different M&A kind of, you know, mix, kind of how that may impact your business. Are there any other things that when people are sharpening their pencils on their 2024 thoughts, they should keep in mind?
Well, you know, obviously, it's just math. Having taken on the additional debt, and given interest rates where they are, we will incur greater interest expense than we have historically.
Mm-hmm.
That'll be part of it. Not to get into the weeds too much on income taxes, but, you know, Pillar Two puts a little bit of pressure on the effective tax rate. I think that's consistent for most multinationals out there. So, you know, most companies are calling out 100-200 basis points of pressure on the ETR there. That's something we're, you know, we have to be very careful with. So those are all things that we'll be taking into consideration when providing our 2024 guidance.
Okay. And then one of the acquisitions we didn't touch on earlier was Shields, and you did an acquisition a few years back called Prism.
Mm-hmm.
You now built about a $300 million pro forma run rate home health distribution business. You know, I think that's... How do you see that as a complementary, and then do you-- I, if I remember correctly, you don't have all of the different product lines that a, you know, a comprehensive home health distributor might have at this point.
Right.
You know, do you need to add those or-
We always had, John, a reasonable offering of home care products, which we provide to our IDN customers. But we didn't have the whole line, and nor did we have the billing capabilities, and our IDN customers were looking for that. So we now have that billing capability. We now have a pretty comprehensive line. I would say that we don't have the ability to deliver everything nationally.
Mm-hmm.
Our goal is in the next few months to make sure that we have the ability to offer all of our, home care products nationally. And if it's not national, then it's leased to the areas where we have IDNs that-
Mm-hmm
... are asking for this. So that's the goal, and, aspirationally, that team is heading towards a billion-dollar company. I can't tell you the year, the date, but we've hired management to do that, and we've got a very good management team in place.
Kind of interesting on the IDN side, another medical distributor talked about potentially trying to move into the ASC market and referenced their relationships with IDNs as kind of an entryway-
Right
... into expanding into that, that area. You know, you've talked a lot today about kind of adding services around your medical distribution business. How do you foresee those conversations going, and how do you articulate that value prop to them?
Our area of competency is really the smaller ambulatory surgical centers.
Mm-hmm.
The big ones that look like a hospital, where you have a truck delivering pallet loads of stuff, one from the med-surg provider and one from the drug wholesaler, that's not us.
Mm-hmm.
What we are focused on is the ASC that would get a shipment each day of med- surg products and pharmaceuticals, and we're one of the few companies that can put it all in one box or multiple boxes, but deliver it all together, and that's where we have very, very good relationships. Because these ASCs are either being managed by our own IDN customers or by physician groups, and that's where we want to grow, and we've been growing quite rapidly over the last few years, but we still have a relatively small market share. But it's everything, and today, very often, when an ASC starts up, they will or they want to add, they will buy some equipment direct. There'll be some equipment from a med- surg dealer and some pharmaceuticals from a drug distributor.
We have everything in one place, and it's quite impressive what our team has put together in the last few years.
And so when we think about potential M&A going forward, is it something that looks more in the vein of what you're doing with orthopedics, or is it something that's completely new? Is it a geographic focus? How do you think about kind of what that kind of consistent M&A spend that you-
Yeah
... do prioritize look like?
On the distribution side, there are pockets where we're not as strong. For example, in the United States, we, in the Midwest, we felt we could be stronger, and we acquired,
Midway
... Midwest, Midway, in early part of this year, of last year. We acquired a medical distributor in Australia. As John referenced, a distributor of dental products in the French part of Switzerland. So our goal is to round out our distribution, but our goal is also on the dental specialty side, to add to that, whether it's in products, maybe we want a unique product to add on the dental side, or, could be some form of service or, on the service side, including software. But I don't think, I mean, I can't tell you for sure, that there's anything transformational in there. You could say that orthopedics is quite transformational, and it is.... but I think we've mentioned this on many occasions.
We put a team together 3, almost 4 years ago, to put us into the orthopedic space, and that team is now acting on their convictions. I mean, they've also run other parts of Henry Schein. But I don't think it's anything transformational.
We haven't touched on technology in the Henry Schein One platform.
Yeah.
So how much of the kind of above-trend growth, you know, is driven by, say, conversion to the cloud, just further digitalization in the dentist's office or dentists who are just not using practice management generally?
So-
What are the kind of the rank levers?
So Ron just attended the budget meeting. He can't tell you the budget, but he can give you a feel for takeaways he had from the meeting.
Yeah, you know, for us, there's two, I think, very meaningful opportunities at Henry Schein One on the technology side. You know, one is, and you've touched on it, John, a little bit with, in terms of, you know, a greater emphasis on a cloud-based practice management system, which is Dentrix, Dentrix Ascend. We're getting kinda year-over-year growth of about 40% with that product, but that's coming off a relatively low base. It still represents a, you know, less than 10% of the total, you know, systems we have out there. But we are seeing, you know, that really as our focus of growth going forward. And then, when you look at the, you know, Dentrix, which is the on-prem product, plus Dentrix Ascend, there's still a lot of opportunity for us.
I mean, those, those two systems together now constitute 50%-55% of, of the market out there. So it's difficult to add a, a lot of meaningful market share, but where there's great opportunity for us is increasing size of wallet within those customers. There are additional modules which could be very beneficial for them in terms of running a more efficient practice and a more profitable practice. So we're really putting a lot more focus around revenue cycle management and Detect AI, our artificial intelligence product, that we're now selling through Henry Schein One, as an opportunity with those existing customers to increase share of wallet as well.
Great. And I'm gonna steal my boss's last question. She always has the same one, which is: When we're back here in 12 months, what are people gonna appreciate about Henry Schein that they don't appreciate right now?
I think, the distribution businesses are understood, but we have these other two legs. The specialty device business, which in itself has become one of the biggest players in dentistry, I think that's not necessarily fully understood, and the value of the services, in particular, the Henry Schein One services and related services like revenue cycle management, our brokerage business. I think these will all be areas that we certainly are committed to growing, and we hope to continue to increase our operating income from products and services where we own the brand, and we can control the R&D.
Great, perfect. I think that does it for today.
Thank you.
Thank you very much, everyone.
Thank you, all.