- Third quarter reported net sales increased 1.0 percent
year-over-year to $1.62 billion.
- Internal sales increased 0.3 percent year-over-year, driven
by dental consumables growth of 6.3 percent; excluding certain
infection control products, internal sales of dental consumables
increased 7.2 percent year-over-year.
- Delivered third quarter GAAP earnings of $0.52 per diluted
share and adjusted earnings of $0.59 per diluted share.
- Returned $148.8 million to shareholders through dividends
and share repurchases.
- Revises fiscal 2024 GAAP earnings guidance to $1.99 to $2.04
per diluted share and adjusted earnings1 guidance to $2.30 to $2.35
per diluted share.
Patterson Companies, Inc. (Nasdaq: PDCO) today reported
operating results for its fiscal 2024 third quarter ended January
27, 2024.
“Patterson navigated a dynamic environment during our fiscal
third quarter to deliver sales growth and gross margin expansion,”
said Don Zurbay, President and CEO of Patterson Companies. “Our
dental consumables and production animal businesses both continued
to generate above-market sales growth, demonstrating the deep,
differentiated value proposition we provide customers across the
markets we serve.
“We have revised our guidance to reflect current expectations
for the fourth quarter, including continued headwinds in the dental
equipment market. During the fiscal third quarter, we remained
focused on enhancing our long-term performance, including strategic
investments in our capabilities and additional actions to enhance
profitability. Our continued commitment to return capital to
shareholders – including nearly $150 million during the fiscal
third quarter – further underscores our confidence in the
resilience of our end markets and Patterson’s value creation
potential.”
Third Quarter Fiscal 2024 Results
Consolidated net sales were $1.62 billion (see attached Sales
Summary for further details), an increase of 1.0 percent compared
to the same period last year. Internal sales, which are adjusted
for the effects of currency translation, contributions from recent
acquisitions and the net impact of an interest rate swap, increased
0.3 percent over the prior year period.
Reported net income attributable to Patterson Companies, Inc.
for the third quarter of fiscal 2024 was $47.7 million, or $0.52
per diluted share, compared to $53.9 million, or $0.55 per diluted
share, in the third quarter of fiscal 2023. Adjusted net income1
attributable to Patterson Companies, Inc., which excludes deal
amortization, totaled $55.0 million for the third quarter of fiscal
2024, or $0.59 per diluted share, compared to $61.1 million, or
$0.62 per diluted share, in the third quarter of fiscal 2023. The
year-over-year decrease in reported and adjusted net income
attributable to Patterson Companies, Inc. in the third quarter of
fiscal 2024 was primarily due to lower sales of dental equipment
and increased operating expenses compared to the prior year
period.
Patterson Dental
Reported net sales in the Dental segment for the third quarter
of fiscal 2024 were $637.1 million. Internal sales increased 2.5
percent compared to the fiscal 2023 third quarter. Internal sales
of consumables increased 6.3 percent year-over-year. Excluding the
deflationary impact of certain infection control products, internal
sales of consumables increased 7.2 percent year-over-year. Compared
to the prior year period, internal sales of equipment decreased 2.4
percent and internal sales of value-added services decreased 0.2
percent.
Patterson Animal Health
Reported net sales in the Animal Health segment for the third
quarter of fiscal 2024 were $967.3 million. Internal sales
decreased 1.5 percent year-over-year as positive growth in the
production animal business was more than offset by reduced sales in
the companion animal business. Within the Animal Health segment,
internal sales of consumables decreased 2.0 percent, internal sales
of equipment decreased 5.9 percent and internal sales of
value-added services increased 44.2 percent.
Balance Sheet and Capital Allocation
During the first nine months of fiscal 2024, Patterson Companies
used $719.8 million of cash from operating activities and collected
deferred purchase price receivables of $770.3 million, generating
$50.5 million in cash, compared to generating $29.8 million in the
prior year period. Free cash flow1 (see definition below and
attached free cash flow table) during the first nine months of
fiscal 2024 improved by $11.9 million compared to the first nine
months of fiscal 2023 due to a decreased level of working capital
during the first nine months of fiscal 2024.
In the third quarter of fiscal 2024, Patterson declared a
quarterly cash dividend of $0.26 per share, returning $24.7 million
in cash dividends to shareholders. Also, under an existing share
repurchase authorization, the company repurchased approximately
$124.1 million of shares during the third quarter of fiscal 2024.
Through the first nine months of fiscal 2024, Patterson Companies
returned $289.6 million to shareholders in the form of cash
dividends and share repurchases. At the end of the third quarter of
fiscal 2024, Patterson had approximately $195 million of share
repurchase authority remaining on its current share repurchase
authorization.
Year-to-Date Results
Consolidated reported net sales for the first nine months of
fiscal 2024 totaled $4.85 billion, a 2.0 percent year-over-year
increase. Internal sales for the first nine months of fiscal 2024,
which are adjusted for the effects of currency translation,
contributions from recent acquisitions and the net impact of an
interest rate swap, increased 1.2 percent year-over-year. Through
the first nine months of fiscal 2024, Dental segment internal sales
increased 1.4 percent, including a 4.6 percent increase in
consumables, a 4.7 percent decline in equipment and a 2.9 percent
increase in value-added services. Through the first nine months of
fiscal 2024, Animal Health segment internal sales increased 0.8
percent, including 0.3 percent growth in consumables, a 3.0 percent
decline in equipment and a 59.5 percent increase in value-added
services.
Reported net income attributable to Patterson Companies, Inc.
was $118.9 million, or $1.26 per diluted share, compared to $132.6
million, or $1.35 per diluted share in last year's period. Adjusted
net income1 attributable to Patterson Companies, Inc., which
excludes deal amortization, totaled $140.9 million, or $1.49 per
diluted share, compared to $154.0 million, or $1.57 per diluted
share, in the year-ago period.
Fiscal 2024 Guidance
Patterson Companies today revised its fiscal 2024 earnings
guidance, which is provided on both a GAAP and non-GAAP adjusted1
basis:
- GAAP earnings are expected to be in the range of $1.99 to $2.04
per diluted share.
- Non-GAAP adjusted earnings1 are expected to be in the
range of $2.30 to $2.35 per diluted share.
- Our non-GAAP adjusted earnings1 guidance excludes the
after-tax impact of: - Deal amortization expenses of approximately
$29.3 million ($0.31 per diluted share).
Our guidance reflects the strength of our business and
competitive positioning, as well as our expectations for the North
American and international end markets in which we operate, which
we expect to be affected by the ongoing challenges of inflationary
trends and higher interest rates and additional slow-down in the
broader economy. Beyond macroeconomic and geopolitical uncertainty,
our guidance further assumes that there are no material adverse
developments associated with wide-spread public health
concerns.
1Non-GAAP Financial Measures
The term “internal sales” used in this release represents net
sales adjusted for the effects of currency translation,
contributions from recent acquisitions and the net impact of an
interest rate swap. Foreign currency impact represents the
difference in results that is attributable to fluctuations in
currency exchange rates the company uses to convert results for all
foreign entities where the functional currency is not the U.S.
dollar. The company calculates the impact as the difference between
the current period results translated using the current period
currency exchange rates and using the comparable prior period’s
currency exchange rates. The company believes the disclosure of net
sales excluding the impact of foreign currency, an interest rate
swap and recent acquisitions provides useful supplementary
information to investors in light of fluctuations in these
variables that are independent of our period-over-period
performance.
The term “free cash flow” used in this release is defined as net
cash used in operating activities less capital expenditures plus
the collection of deferred purchase price receivables.
The Reconciliation of GAAP to non-GAAP Measures table appearing
behind the accompanying financial information is provided to adjust
reported GAAP measures, namely net sales, gross profit, operating
expenses, operating income, other income (expense), net, income
before taxes, income tax expense, net income, net loss attributable
to noncontrolling interests, net income attributable to Patterson
Companies, Inc., and diluted earnings per share attributable to
Patterson Companies, Inc. for the impact of deal amortization and
an interest rate swap along with any related tax effects of these
items.
- Deal amortization represents non-cash intangible amortization
expense, primarily related to the acquisition of Animal Health
International.
- Interest rate swap -- Our customer financing net sales include
the impact of changes in interest rates on deferred purchase price
receivables, as the average interest rate in our contract portfolio
may not fluctuate at the same rate as interest rate markets,
resulting in an increase or reduction of gain on contract sales. We
enter into an interest rate swap to hedge a portion of the related
interest rate risk. These agreements do not qualify for hedge
accounting, and the gains or losses on an interest rate swap are
reported in other income and expense in our condensed consolidated
statements of operation and other comprehensive income. We present
a non-GAAP adjustment to reclassify the mark-to-market adjustment
on the interest rate swap from other income (expense) to net sales
to align the swap impact with the impact on customer financing net
sales. We believe adjusted net sales, adjusted gross profit and
adjusted operating income, which include the gains and losses on
the interest rate swap, provides additional comparability from
period to period because they present the impact of interest rate
fluctuations, net of the mark-to-market swap adjustment, within
adjusted net sales. We note the net impact of interest rate
fluctuations has a minimal impact on net income.
Management believes that these non-GAAP measures may provide a
helpful representation of the company’s performance and enable
comparison of financial results between periods where certain items
may vary independent of business performance. These non-GAAP
financial measures are presented solely for informational and
comparative purposes and should not be regarded as a replacement
for corresponding, similarly captioned, GAAP measures.
Third Quarter Conference Call and Replay
Patterson Companies’ fiscal 2024 third quarter conference call
will start at 8:30 a.m. Eastern today. Investors can listen to a
live webcast of the conference call at www.pattersoncompanies.com.
The conference call will be archived on the Patterson Companies
website. A replay of the fiscal 2024 third quarter conference call
can be heard for one week at 1-800-770-2030 and by providing the
Conference ID 67281 when prompted.
About Patterson Companies Inc.
Patterson Companies Inc. (Nasdaq: PDCO) connects dental and
animal health customers in North America and the U.K. to the latest
products, technologies, services and innovative business solutions
that enable operational and professional success. Our comprehensive
portfolio, distribution network and supply chain is equaled only by
our dedicated, knowledgeable people who deliver unrivalled
expertise and unmatched customer service and support.
Learn more: pattersoncompanies.com
This press release contains, and our officers and
representatives may from time to time make, certain
“forward-looking statements” within the meaning of the safe harbor
provisions of the U.S. Private Securities Litigation Reform Act of
1995, including statements regarding future financial performance,
and the objectives and expectations of management. Forward-looking
statements often include words such as “believes,” “expects,”
“anticipates,” “estimates,” “intends,” “plans,” “seeks” or words of
similar meaning, or future or conditional verbs, such as “will,”
“should,” “could” or “may.”
Forward-looking statements are neither historical facts nor
assurances of future performance. Instead, they are based only on
our current beliefs, expectations and assumptions regarding the
future of our business, future plans and strategies, projections,
anticipated events and trends, the economy and other future
conditions. Because forward-looking statements relate to the
future, they are subject to inherent uncertainties, risks and
changes in circumstances that are difficult to predict and many of
which are outside of our control. Our actual results and financial
condition may differ materially from those indicated in the
forward-looking statements. Therefore, you should not place undue
reliance on any of these forward-looking statements.
Any number of factors could affect our actual results and cause
such results to differ materially from those contemplated by any
forward-looking statements, including, but not limited to, the
following: wide-spread public health concerns as we experienced,
and may continue to experience, with the COVID-19 pandemic; our
dependence on suppliers to manufacture and supply substantially all
of the products we sell; potential disruption of distribution
capabilities, including service issues with third-party shippers;
our dependence on relationships with sales representatives and
service technicians to retain customers and develop business;
adverse changes in supplier rebates or other purchasing incentives;
risks of selling private label products, including the risk of
adversely affecting our relationships with suppliers; the risk of
technological and market obsolescence for the products we sell; the
risk of failing to innovate and develop new and enhanced software
and e-services products; our dependence on positive perceptions of
Patterson’s reputation; risks associated with illicit human use of
pharmaceutical products we distribute; risks inherent in acquiring
and disposing of assets or other businesses and risks inherent in
integrating acquired businesses; turnover or loss of key personnel
or highly skilled employees; risks associated with information
systems, software products and cyber-security attacks; risks
related to climate change; our ability to comply with restrictive
covenants and other limits in our credit agreement; the risk that
our governing documents and Minnesota law may discourage takeovers
and business combinations; the effects of the highly competitive
dental and animal health supply markets in which we compete; the
effects of consolidation within the dental and animal health supply
markets; exposure to the risks of the animal production business,
including changing consumer demand, the cyclical livestock market,
weather conditions, the availability of natural resources and other
factors outside our control, and the risks of the companion animal
business, including the possibility of disease adversely affecting
the pet population; exposure to the risks of the health care
industry, including changes in demand due to political, economic
and regulatory influences and other factors outside our control;
increases in over-the-counter sales and e-commerce options; risks
from the formation or expansion of GPOs, provider networks and
buying groups that may place us at a competitive disadvantage;
risks of litigation and government inquiries and investigations,
including the diversion of management’s attention, the cost of
defending against such actions, the possibility of damage awards or
settlements, fines or penalties, or equitable remedies (including
but not limited to the revocation of or non-renewal of licenses)
and inherent uncertainty; failure to comply with health care fraud
or other laws and regulations; change and uncertainty in the health
care industry; failure to comply with existing or future U.S. or
foreign laws and regulations including those governing the
distribution of pharmaceuticals and controlled substances; failure
to comply with evolving data privacy laws and regulations; tax
legislation; risks inherent in international operations, including
currency fluctuations; and uncertain macro-economic conditions,
including inflationary pressures.
The order in which these factors appear should not be construed
to indicate their relative importance or priority. We caution that
these factors may not be exhaustive, accordingly, any
forward-looking statements contained herein should not be relied
upon as a prediction of actual results.
You should carefully consider these and other relevant factors,
including those risk factors in Part I, Item 1A, (“Risk Factors”)
in our most recent Form 10-K and information which may be contained
in our other filings with the U.S. Securities and Exchange
Commission, or SEC, when reviewing any forward-looking
statement.
Investors should understand it is impossible to predict or
identify all such factors or risks. As such, you should not
consider the foregoing list, or the risks identified in our SEC
filings, to be a complete discussion of all potential risks or
uncertainties.
Any forward-looking statement made by us in this press release
is based only on information currently available to us and speaks
only as of the date on which it is made. We do not undertake any
obligation to release publicly any revisions to any forward-looking
statements whether written or oral, that may be made from time to
time, whether as a result of new information, future developments
or otherwise.
PATTERSON COMPANIES,
INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(In thousands, except per
share amounts)
(Unaudited)
Three Months Ended
Nine Months Ended
January 27, 2024
January 28, 2023
January 27, 2024
January 28, 2023
Net sales
$
1,616,095
$
1,600,850
$
4,845,612
$
4,750,319
Gross profit
351,006
342,962
1,009,087
983,184
Operating expenses
280,994
267,040
843,950
812,323
Operating income
70,012
75,922
165,137
170,861
Other income (expense):
Other income, net
3,653
3,096
22,650
23,079
Interest expense
(11,725
)
(9,731
)
(31,879
)
(22,838
)
Income before taxes
61,940
69,287
155,908
171,102
Income tax expense
14,347
15,440
37,330
39,346
Net income
47,593
53,847
118,578
131,756
Net loss attributable to noncontrolling
interests
(110
)
(82
)
(317
)
(836
)
Net income attributable to Patterson
Companies, Inc.
$
47,703
$
53,929
$
118,895
$
132,592
Earnings per share attributable to
Patterson Companies, Inc.:
Basic
$
0.52
$
0.55
$
1.26
$
1.37
Diluted
$
0.52
$
0.55
$
1.26
$
1.35
Weighted average shares:
Basic
92,009
97,327
94,088
96,957
Diluted
92,519
97,977
94,704
97,881
Dividends declared per common share
$
0.26
$
0.26
$
0.78
$
0.78
PATTERSON COMPANIES,
INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(In thousands)
(Unaudited)
January 27, 2024
April 29, 2023
ASSETS
Current assets:
Cash and cash equivalents
$
123,998
$
159,669
Receivables, net
484,530
477,384
Inventory
902,733
795,072
Prepaid expenses and other current
assets
321,302
351,011
Total current assets
1,832,563
1,783,136
Property and equipment, net
226,013
212,283
Operating lease right-of-use assets,
net
108,506
92,956
Goodwill and identifiable intangibles,
net
359,593
388,293
Investments
164,459
160,022
Long-term receivables, net and other
248,815
242,456
Total assets
$
2,939,949
$
2,879,146
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities:
Accounts payable
$
683,300
$
724,993
Other accrued liabilities
234,151
250,949
Operating lease liabilities
31,137
28,390
Current maturities of long-term debt
4,125
36,000
Borrowings on revolving credit
331,000
45,000
Total current liabilities
1,283,713
1,085,332
Long-term debt
448,219
451,231
Non-current operating lease
liabilities
80,499
67,376
Other non-current liabilities
155,353
156,672
Total liabilities
1,967,784
1,760,611
Stockholders' equity
972,165
1,118,535
Total liabilities and stockholders'
equity
$
2,939,949
$
2,879,146
PATTERSON COMPANIES,
INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Nine Months Ended
January 27, 2024
January 28, 2023
Operating activities:
Net income
$
118,578
$
131,756
Adjustments to reconcile net income to net
cash used in operating activities:
Depreciation and amortization
65,198
62,298
Non-cash employee compensation
15,395
11,349
Non-cash losses (gains) and other, net
4,120
7,227
Change in assets and liabilities:
Receivables
(744,275
)
(729,039
)
Inventory
(106,328
)
(155,184
)
Accounts payable
(43,533
)
20,947
Accrued liabilities
(14,510
)
(40,909
)
Other changes from operating activities,
net
(14,494
)
(36,642
)
Net cash used in operating activities
(719,849
)
(728,197
)
Investing activities:
Additions to property and equipment and
software
(51,196
)
(42,442
)
Collection of deferred purchase price
receivables
770,319
758,001
Payments related to acquisitions, net of
cash acquired
(1,108
)
(33,257
)
Payments related to investments
—
(15,000
)
Net cash provided by investing
activities
718,015
667,302
Financing activities:
Dividends paid
(75,021
)
(75,954
)
Repurchases of common stock
(214,587
)
(15,000
)
Payments on long-term debt
(35,250
)
—
Draw on revolving credit
286,000
146,000
Other financing activities
4,767
12,866
Net cash provided by (used in) financing
activities
(34,091
)
67,912
Effect of exchange rate changes on
cash
254
(1,741
)
Net change in cash and cash
equivalents
(35,671
)
5,276
Cash and cash equivalents at beginning of
period
159,669
142,014
Cash and cash equivalents at end of
period
$
123,998
$
147,290
PATTERSON COMPANIES,
INC.
SALES SUMMARY
(Dollars in thousands)
(Unaudited)
January 27, 2024
January 28, 2023
Total Sales
Growth
Foreign Exchange
Impact
Net Interest Rate Swap
Acquisition Impact
Internal Sales
Growth
Three Months Ended
Consolidated net sales
Consumable
$
1,262,290
$
1,250,859
0.9
%
0.6
%
—
%
0.1
%
0.2
%
Equipment
245,262
252,671
(2.9
)
—
—
—
(2.9
)
Value-added services and other
108,543
97,320
11.5
0.4
(1.7
)
3.4
9.4
Total
$
1,616,095
$
1,600,850
1.0
%
0.5
%
(0.1
)%
0.3
%
0.3
%
Dental
Consumable
$
350,953
$
330,199
6.3
%
—
%
—
%
—
%
6.3
%
Equipment
211,352
216,642
(2.4
)
—
—
—
(2.4
)
Value-added services and other
74,832
74,955
(0.2
)
—
—
—
(0.2
)
Total
$
637,137
$
621,796
2.5
%
—
%
—
%
—
%
2.5
%
Animal Health
Consumable
$
911,337
$
920,660
(1.0
)%
0.8
%
—
%
0.2
%
(2.0
)%
Equipment
33,910
36,029
(5.9
)
—
—
—
(5.9
)
Value-added services and other
22,030
12,689
73.6
3.0
—
26.4
44.2
Total
$
967,277
$
969,378
(0.2
)%
0.8
%
—
%
0.5
%
(1.5
)%
Corporate
Value-added services and other
$
11,681
$
9,676
20.7
%
—
%
(16.8
)%
—
%
37.5
%
Total
$
11,681
$
9,676
20.7
%
—
%
(16.8
)%
—
%
37.5
%
PATTERSON COMPANIES,
INC.
SALES SUMMARY
(Dollars in thousands)
(Unaudited)
January 27, 2024
January 28, 2023
Total Sales
Growth
Foreign Exchange
Impact
Net Interest Rate Swap
Acquisition Impact
Internal Sales
Growth
Nine Months Ended
Consolidated net sales
Consumable
$
3,897,378
$
3,813,884
2.2
%
0.6
%
—
%
0.2
%
1.4
%
Equipment
639,526
670,502
(4.6
)
(0.1
)
—
—
(4.5
)
Value-added services and other
308,708
265,933
16.1
0.4
(1.2
)
5.2
11.7
Total
$
4,845,612
$
4,750,319
2.0
%
0.5
%
(0.1
)%
0.4
%
1.2
%
Dental
Consumable
$
1,049,492
$
1,005,528
4.4
%
(0.2
)%
—
%
—
%
4.6
%
Equipment
549,028
577,158
(4.9
)
(0.2
)
—
—
(4.7
)
Value-added services and other
232,298
225,950
2.8
(0.1
)
—
—
2.9
Total
$
1,830,818
$
1,808,636
1.2
%
(0.2
)%
—
%
—
%
1.4
%
Animal Health
Consumable
$
2,847,886
$
2,808,356
1.4
%
0.9
%
—
%
0.2
%
0.3
%
Equipment
90,498
93,344
(3.0
)
—
—
—
(3.0
)
Value-added services and other
64,505
31,044
107.8
4.0
—
44.3
59.5
Total
$
3,002,889
$
2,932,744
2.4
%
0.9
%
—
%
0.7
%
0.8
%
Corporate
Value-added services and other
$
11,905
$
8,939
33.2
%
—
%
(35.7
)%
—
%
68.9
%
Total
$
11,905
$
8,939
33.2
%
—
%
(35.7
)%
—
%
68.9
%
PATTERSON COMPANIES,
INC.
OPERATING INCOME BY
SEGMENT
(In thousands)
(Unaudited)
Three Months Ended
Nine Months Ended
January 27, 2024
January 28, 2023
January 27, 2024
January 28, 2023
Operating income (loss)
Dental
$
53,630
$
60,302
$
147,577
$
158,147
Animal Health
32,104
30,197
88,143
80,372
Corporate
(15,722
)
(14,577
)
(70,583
)
(67,658
)
Total
$
70,012
$
75,922
$
165,137
$
170,861
PATTERSON COMPANIES,
INC.
RECONCILIATION OF GAAP TO
NON-GAAP MEASURES
(Dollars in thousands, except
per share amounts)
(Unaudited)
For the three months ended January 27,
2024
GAAP
Deal amortization
Interest rate swap
Non-GAAP
Net sales
$
1,616,095
$
—
$
(3,474
)
$
1,612,621
Gross profit
351,006
—
(3,474
)
347,532
Operating expenses
280,994
(9,630
)
—
271,364
Operating income
70,012
9,630
(3,474
)
76,168
Other income (expense), net
(8,072
)
—
3,474
(4,598
)
Income before taxes
61,940
9,630
—
71,570
Income tax expense
14,347
2,304
—
16,651
Net income
47,593
7,326
—
54,919
Net loss attributable to noncontrolling
interests
(110
)
—
—
(110
)
Net income attributable to Patterson
Companies, Inc.
$
47,703
$
7,326
$
—
$
55,029
Diluted earnings per share attributable to
Patterson Companies, Inc.*
$
0.52
$
0.08
$
—
$
0.59
Gross margin
21.7
%
21.6
%
Operating margin
4.3
%
4.7
%
Effective tax rate
23.2
%
23.3
%
For the three months ended January 28,
2023
GAAP
Deal amortization
Interest rate swap
Non-GAAP
Net sales
$
1,600,850
$
—
$
(1,849
)
$
1,599,001
Gross profit
342,962
—
(1,849
)
341,113
Operating expenses
267,040
(9,482
)
—
257,558
Operating income
75,922
9,482
(1,849
)
83,555
Other income (expense), net
(6,635
)
—
1,849
(4,786
)
Income before taxes
69,287
9,482
—
78,769
Income tax expense
15,440
2,272
—
17,712
Net income
53,847
7,210
—
61,057
Net loss attributable to noncontrolling
interests
(82
)
—
—
(82
)
Net income attributable to Patterson
Companies, Inc.
$
53,929
$
7,210
$
—
$
61,139
Diluted earnings per share attributable to
Patterson Companies, Inc.*
$
0.55
$
0.07
$
—
$
0.62
Gross margin
21.4
%
21.3
%
Operating margin
4.7
%
5.2
%
Effective tax rate
22.3
%
22.5
%
* May not sum due to rounding
PATTERSON COMPANIES,
INC.
RECONCILIATION OF GAAP TO
NON-GAAP MEASURES
(Dollars in thousands, except
per share amounts)
(Unaudited)
For the nine months ended January 27,
2024
GAAP
Deal amortization
Interest rate swap
Non-GAAP
Net sales
$
4,845,612
$
—
$
6,087
$
4,851,699
Gross profit
1,009,087
—
6,087
1,015,174
Operating expenses
843,950
(28,884
)
—
815,066
Operating income
165,137
28,884
6,087
200,108
Other income (expense), net
(9,229
)
—
(6,087
)
(15,316
)
Income before taxes
155,908
28,884
—
184,792
Income tax expense
37,330
6,913
—
44,243
Net income
118,578
21,971
—
140,549
Net loss attributable to noncontrolling
interests
(317
)
—
—
(317
)
Net income attributable to Patterson
Companies, Inc.
$
118,895
$
21,971
$
—
$
140,866
Diluted earnings per share attributable to
Patterson Companies, Inc.*
$
1.26
$
0.23
$
—
$
1.49
Gross margin
20.8
%
20.9
%
Operating margin
3.4
%
4.1
%
Effective tax rate
23.9
%
23.9
%
For the nine months ended January 28,
2023
GAAP
Deal amortization
Interest rate swap
Non-GAAP
Net sales
$
4,750,319
$
—
$
9,275
$
4,759,594
Gross profit
983,184
—
9,275
992,459
Operating expenses
812,323
(28,160
)
—
784,163
Operating income
170,861
28,160
9,275
208,296
Other income (expense), net
241
—
(9,275
)
(9,034
)
Income before taxes
171,102
28,160
—
199,262
Income tax expense
39,346
6,746
—
46,092
Net income
131,756
21,414
—
153,170
Net loss attributable to noncontrolling
interests
(836
)
—
—
(836
)
Net income attributable to Patterson
Companies, Inc.
$
132,592
$
21,414
$
—
$
154,006
Diluted earnings per share attributable to
Patterson Companies, Inc.*
$
1.35
$
0.22
$
—
$
1.57
Gross margin
20.7
%
20.9
%
Operating margin
3.6
%
4.4
%
Effective tax rate
23.0
%
23.1
%
* May not sum due to rounding
PATTERSON COMPANIES,
INC.
FREE CASH FLOW
(In thousands)
(Unaudited)
Nine Months Ended
January 27, 2024
January 28, 2023
Net cash used in operating activities
$
(719,849
)
$
(728,197
)
Additions to property and equipment and
software
(51,196
)
(42,442
)
Collection of deferred purchase price
receivables
770,319
758,001
Free cash flow
$
(726
)
$
(12,638
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240228516796/en/
INVESTOR John M. Wright, Investor Relations COMPANY:
Patterson Companies Inc. TEL: 651.686.1364 EMAIL:
investor.relations@pattersoncompanies.com
MEDIA: Patterson Corporate Communications COMPANY:
Patterson Companies Inc. TEL: 651.905.3349 EMAIL:
corporate.communications@pattersoncompanies.com
WEB: pattersoncompanies.com
Patterson Companies (NASDAQ:PDCO)
Historical Stock Chart
From Feb 2025 to Mar 2025
Patterson Companies (NASDAQ:PDCO)
Historical Stock Chart
From Mar 2024 to Mar 2025
