Revenue during the quarter grew 6.68 percent to $2,865.15 million from $2,685.84 million in the previous year period. Gross margin for the quarter contracted 33 basis points over the previous year period to 27.55 percent. Total expenses were 92.99 percent of quarterly revenues, up from 92.97 percent for the same period last year. That has resulted in a contraction of 3 basis points in operating margin to 7.01 percent.

Operating income for the quarter was $200.72 million, compared with $188.88 million in the previous year period.

"We are pleased to report record financial results for the third quarter. We believe we continue to gain market share in each of our business groups as our company is well served by our diversified portfolio and an expanding global customer base," said Stanley M. Bergman, chairman of the Board and chief executive officer of Henry Schein. "We are affirming guidance for 2016 adjusted non-GAAP diluted EPS growth of 10% to 11%, or 7% to 8% on a GAAP basis, compared to 2015 results. In addition, we are pleased to introduce guidance for 2017 diluted EPS that represents growth of 17% to 19% on a GAAP basis, or 9% to 11% on an adjusted non-GAAP basis, both compared with the respective midpoints of 2016 guidance."

For financial year 2016, the company forecasts diluted earnings per share to be in the range of $6.11 to $6.16. The company forecasts diluted earnings per share to be in the range of $6.55 to $6.60 on adjusted basis.

The company has spent $179.83 million cash to meet investing activities during the nine month period as against cash outgo of $203.47 million in the last year period.

The company has spent $171.14 million cash to carry out financing activities during the nine month period as against cash outgo of $98.01 million in the last year period.

Cash and cash equivalents stood at $76.19 million as on Sep. 24, 2016, up 25.98 percent or $15.71 million from $60.48 million on Sep. 26, 2015.

Working capital declines
Henry Schein, Inc. has witnessed a decline in the working capital over the last year. It stood at $1,246.30 million as at Sep. 24, 2016, down 5.79 percent or $76.59 million from $1,322.89 million on Sep. 26, 2015. Current ratio was at 1.61 as on Sep. 24, 2016, down from 1.74 on Sep. 26, 2015.

Cash conversion cycle (CCC) has decreased to 35 days for the quarter from 66 days for the last year period. Days sales outstanding were almost stable at 40 days for the quarter, when compared with the last year period.

Days inventory outstanding has decreased to 32 days for the quarter compared with 64 days for the previous year period. At the same time, days payable outstanding went down to 37 days for the quarter from 39 for the same period last year.