Le Lézard
Classified in: Business, Covid-19 virus
Subjects: EARNINGS, Conference Call, Webcast

Patterson Companies Reports Fiscal 2024 Fourth Quarter and Year End Operating Results


Patterson Companies, Inc. (Nasdaq: PDCO) today reported operating results for its fiscal 2024 fourth quarter ended April 27, 2024.

"Throughout fiscal 2024, Patterson navigated a challenging market environment while continuing to make progress on our strategic objectives to better position the organization for the future," said Don Zurbay, President and CEO of Patterson Companies. "Our fourth quarter results were driven by strong performances in our dental consumables and production animal businesses, reflecting the strength of Patterson's value proposition across our resilient end markets and our sustained focus on serving as indispensable partners to our customers. Our outlook reflects the continued confidence in our strategy focused on investing to drive enhanced growth and profitability over the long term combined with the current conditions in our end markets."

Fourth Quarter Fiscal 2024 Results

Consolidated net sales were $1.72 billion (see attached Sales Summary for further details), an increase of 0.1 percent compared to the same period last year. Internal sales, which are adjusted for the effects of currency translation and the net impact of an interest rate swap, decreased 0.5 percent over the prior year period.

Reported net income attributable to Patterson Companies, Inc. for the fourth quarter of fiscal 2024 was $67.0 million, or $0.74 per diluted share, compared to $75.0 million, or $0.77 per diluted share, in the fourth quarter of fiscal 2023. Adjusted net income1 attributable to Patterson Companies, Inc., which excludes deal amortization, totaled $74.4 million for the fourth quarter of fiscal 2024, or $0.82 per diluted share, compared to $82.4 million, or $0.84 per diluted share, in the fourth quarter of fiscal 2023. The year-over-year decrease in reported and adjusted net income attributable to Patterson Companies, Inc. in the fourth quarter of fiscal 2024 is primarily due to lower sales of equipment and the negative impact of the widely reported cybersecurity attack on vendor partner, Change Healthcare, within the value-added services category of the dental segment. Both reported and adjusted net income in the fiscal 2024 fourth quarter were negatively impacted by $0.04 per diluted share due to the cybersecurity attack on Change Healthcare.

Patterson Dental

Reported net sales in the Dental segment for the fourth quarter of fiscal 2024 were $657.8 million. Internal sales decreased 3.8 percent compared to the fiscal 2023 fourth quarter. Internal sales of consumables increased 3.7 percent year-over-year. Excluding the deflationary impact of certain infection control products, internal sales of consumables increased 4.4 percent year-over-year. Compared to the prior year period, internal sales of equipment decreased 11.9 percent. Internal sales of value-added services decreased 11.0 percent compared to the prior year period, primarily due to the negative impact of the cybersecurity attack on Change Healthcare.

Patterson Animal Health

Reported net sales in the Animal Health segment for the fourth quarter of fiscal 2024 were $1.06 billion. Internal sales growth of 2.5 percent year-over-year was driven by sales growth in the production animal business. Compared to the prior year period, internal sales of consumables grew 2.5 percent, equipment decreased 4.0 percent and value-added services increased 15.0 percent.

Balance Sheet and Capital Allocation

During fiscal 2024, Patterson Companies used $789.4 million of cash from operating activities and collected deferred purchase price receivables of $1.03 billion, generating $238.9 million in cash, compared to generating $244.1 million during fiscal 2023. Free cash flow1 (see definition below and attached free cash flow table) during fiscal 2024 declined by $8.6 million compared to the fiscal 2023 period due to operational performance and an increased level of capital spending during fiscal 2024.

In the fourth quarter of fiscal 2024, Patterson Companies declared a quarterly cash dividend of $0.26 per share, returning $23.3 million in cash dividends to shareholders. Also, under a prior repurchase authorization, the company repurchased approximately 0.5 million shares during the fiscal fourth quarter. At of the end of fiscal 2024, Patterson had approximately $500 million of share repurchase authority remaining on its current share repurchase authorization. During fiscal 2024, Patterson Companies returned $327.9 million to shareholders in the form of cash dividends and share repurchases.

Fiscal 2024 Full Year Results

Consolidated reported net sales for fiscal 2024 totaled $6.57 billion, a 1.5 percent year-over-year increase. Internal sales for 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 0.8 percent year-over-year. Fiscal 2024 Dental segment internal sales were flat compared to the prior fiscal year, including a 4.4 percent increase in consumables, a 6.9 percent decline in equipment and a 0.8 percent decrease in value-added services. Fiscal 2024 Animal Health segment internal sales increased 1.3 percent, including 0.8 percent growth in consumables, a 3.3 percent decline in equipment and a 42.6 percent increase in value-added services.

Reported net income attributable to Patterson Companies, Inc. in fiscal 2024 was $185.9 million, or $1.98 per diluted share, compared to $207.6 million, or $2.12 per diluted share in fiscal 2023. Adjusted net income1 attributable to Patterson Companies, Inc., which excludes deal amortization, totaled $215.3 million, or $2.30 per diluted share, compared to $236.4 million, or $2.42 per diluted share, in the prior year.

Fiscal 2025 Guidance

Patterson Companies today initiated its fiscal 2025 earnings guidance, which is provided on both a GAAP and non-GAAP adjusted1 basis:

Our guidance reflects the strength of our business and competitive positioning as well as completed and previously announced acquisitions. It does not include the impact of unplanned share repurchases, potential future acquisitions or similar transactions, impairments, restructuring and integration expenses not previously publicly disclosed, or amortization expense of acquired intangible assets. Our guidance assumes North American and international end market conditions consistent with current market conditions.

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.

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.

Fourth Quarter Conference Call and Replay

Patterson Companies' fiscal 2024 fourth 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 2023 fourth 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: 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; risks of selling private label products, including the risk of adversely affecting our relationships with suppliers; adverse changes in supplier rebates or other purchasing incentives; 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 inherent in our growing use of AI systems to automate processes and analyze data; adverse impacts of wide-spread public health concerns as we experienced with the COVID-19 pandemic and may experience in the future; 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; risks from the formation or expansion of GPOs, provider networks and buying groups that may place us at a competitive disadvantage; 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 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

 

Twelve Months Ended

 

April 27,
2024

 

April 29,
2023

 

April 27,
2024

 

April 29,
2023

 

 

 

 

 

 

 

 

Net sales

$

1,722,660

 

 

$

1,721,152

 

 

$

6,568,272

 

 

$

6,471,471

 

 

 

 

 

 

 

 

 

Gross profit

 

371,155

 

 

 

389,761

 

 

 

1,380,242

 

 

 

1,372,945

 

 

 

 

 

 

 

 

 

Operating expenses

 

283,368

 

 

 

284,651

 

 

 

1,127,318

 

 

 

1,096,974

 

 

 

 

 

 

 

 

 

Operating income

 

87,787

 

 

 

105,110

 

 

 

252,924

 

 

 

275,971

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

Other income, net

 

12,389

 

 

 

4,747

 

 

 

35,039

 

 

 

27,826

 

Interest expense

 

(13,031

)

 

 

(10,798

)

 

 

(44,910

)

 

 

(33,636

)

 

 

 

 

 

 

 

 

Income before taxes

 

87,145

 

 

 

99,059

 

 

 

243,053

 

 

 

270,161

 

 

 

 

 

 

 

 

 

Income tax expense

 

20,204

 

 

 

24,217

 

 

 

57,534

 

 

 

63,563

 

 

 

 

 

 

 

 

 

Net income

 

66,941

 

 

 

74,842

 

 

 

185,519

 

 

 

206,598

 

Net loss attributable to noncontrolling interests

 

(95

)

 

 

(123

)

 

 

(412

)

 

 

(959

)

Net income attributable to Patterson Companies, Inc.

$

67,036

 

 

$

74,965

 

 

$

185,931

 

 

$

207,557

 

 

 

 

 

 

 

 

 

Earnings per share attributable to Patterson Companies, Inc.:

 

 

 

 

 

 

 

Basic

$

0.75

 

 

$

0.77

 

 

$

2.00

 

 

$

2.14

 

Diluted

$

0.74

 

 

$

0.77

 

 

$

1.98

 

 

$

2.12

 

 

 

 

 

 

 

 

 

Weighted average shares:

 

 

 

 

 

 

 

Basic

 

89,613

 

 

 

97,224

 

 

 

92,969

 

 

 

97,027

 

Diluted

 

90,227

 

 

 

97,768

 

 

 

93,679

 

 

 

97,815

 

 

 

 

 

 

 

 

 

Dividends declared per common share

$

0.26

 

 

$

0.26

 

 

$

1.04

 

 

$

1.04

 

 

PATTERSON COMPANIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)

 
 

 

April 27,
2024

 

April 29,
2023

 

 

 

 

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

114,462

 

$

159,669

Receivables, net

 

547,287

 

 

477,384

Inventory

 

782,898

 

 

795,072

Prepaid expenses and other current assets

 

334,116

 

 

351,011

Total current assets

 

1,778,763

 

 

1,783,136

Property and equipment, net

 

229,081

 

 

212,283

Operating lease right-of-use assets, net

 

122,295

 

 

92,956

Goodwill and identifiable intangibles, net

 

349,589

 

 

388,293

Investments

 

166,320

 

 

160,022

Long-term receivables, net and other

 

250,684

 

 

242,456

Total assets

$

2,896,732

 

$

2,879,146

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

745,375

 

$

724,993

Other accrued liabilities

 

245,610

 

 

250,949

Operating lease liabilities

 

32,815

 

 

28,390

Current maturities of long-term debt

 

122,750

 

 

36,000

Borrowings on revolving credit

 

186,000

 

 

45,000

Total current liabilities

 

1,332,550

 

 

1,085,332

Long-term debt

 

328,911

 

 

451,231

Non-current operating lease liabilities

 

92,464

 

 

67,376

Other non-current liabilities

 

141,075

 

 

156,672

Total liabilities

 

1,895,000

 

 

1,760,611

Stockholders' equity

 

1,001,732

 

 

1,118,535

Total liabilities and stockholders' equity

$

2,896,732

 

$

2,879,146

 

PATTERSON COMPANIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)

 
 

 

Twelve Months Ended

 

April 27,
2024

 

April 29,
2023

 

 

 

 

Operating activities:

 

 

 

Net income

$

185,519

 

 

$

206,598

 

Adjustments to reconcile net income to net cash used in operating activities:

 

 

 

Depreciation and amortization

 

88,156

 

 

 

83,704

 

Stock-based compensation

 

17,871

 

 

 

15,543

 

Non-cash losses (gains) and other, net

 

204

 

 

 

654

 

Change in assets and liabilities:

 

 

 

Receivables

 

(1,102,618

)

 

 

(1,047,075

)

Inventory

 

11,039

 

 

 

(11,086

)

Accounts payable

 

21,343

 

 

 

43,095

 

Accrued liabilities

 

(2,788

)

 

 

(21,714

)

Other changes from operating activities, net

 

(8,104

)

 

 

(24,571

)

Net cash used in operating activities

 

(789,378

)

 

 

(754,852

)

Investing activities:

 

 

 

Additions to property and equipment and software

 

(67,626

)

 

 

(64,220

)

Collection of deferred purchase price receivables

 

1,028,277

 

 

 

998,912

 

Payments related to acquisitions, net of cash acquired

 

(1,108

)

 

 

(33,280

)

Payments related to investments

 

?

 

 

 

(15,000

)

Other investing activities

 

?

 

 

 

15,155

 

Net cash provided by investing activities

 

959,543

 

 

 

901,567

 

Financing activities:

 

 

 

Dividends paid

 

(98,333

)

 

 

(101,346

)

Repurchases of common stock

 

(229,508

)

 

 

(55,492

)

Payments on long-term debt

 

(36,000

)

 

 

(1,500

)

Draw on revolving credit

 

141,000

 

 

 

16,000

 

Other financing activities

 

6,936

 

 

 

15,854

 

Net cash used in financing activities

 

(215,905

)

 

 

(126,484

)

Effect of exchange rate changes on cash

 

533

 

 

 

(2,576

)

Net change in cash and cash equivalents

 

(45,207

)

 

 

17,655

 

Cash and cash equivalents at beginning of period

 

159,669

 

 

 

142,014

 

Cash and cash equivalents at end of period

$

114,462

 

 

$

159,669

 

 

PATTERSON COMPANIES, INC.
SALES SUMMARY
(Dollars in thousands)
(Unaudited)

 
 

 

April 27,
2024

 

April 29,
2023

 

Total
Sales
Growth

 

Foreign
Exchange
Impact

 

Net
Interest
Rate
Swap

 

Acquisition
Impact

 

Internal
Sales
Growth

Three Months Ended

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated net sales

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumable

$

1,376,634

 

$

1,333,446

 

3.2%

 

0.4%

 

?%

 

?%

 

2.8%

Equipment

 

249,071

 

 

279,901

 

(11.0)

 

?

 

?

 

?

 

(11.0)

Value-added services and other

 

96,955

 

 

107,805

 

(10.1)

 

0.3

 

5.3

 

?

 

(15.7)

Total

$

1,722,660

 

$

1,721,152

 

0.1%

 

0.3%

 

0.3%

 

?%

 

(0.5)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dental

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumable

$

366,297

 

$

353,295

 

3.7%

 

?%

 

?%

 

?%

 

3.7%

Equipment

 

217,317

 

 

246,820

 

(12.0)

 

(0.1)

 

?

 

?

 

(11.9)

Value-added services and other

 

74,202

 

 

83,391

 

(11.0)

 

?

 

?

 

?

 

(11.0)

Total

$

657,816

 

$

683,506

 

(3.8)%

 

?%

 

?%

 

?%

 

(3.8)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Animal Health

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumable

$

1,010,337

 

$

980,151

 

3.1%

 

0.6%

 

?%

 

?%

 

2.5%

Equipment

 

31,754

 

 

33,081

 

(4.0)

 

?

 

?

 

?

 

(4.0)

Value-added services and other

 

22,089

 

 

18,946

 

16.6

 

1.6

 

?

 

?

 

15.0

Total

$

1,064,180

 

$

1,032,178

 

3.1%

 

0.6%

 

?%

 

?%

 

2.5%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate

 

 

 

 

 

 

 

 

 

 

 

 

 

Value-added services and other

$

664

 

$

5,468

 

(87.9)%

 

?%

 

103.6%

 

?%

 

(191.5)%

Total

$

664

 

$

5,468

 

(87.9)%

 

?%

 

103.6%

 

?%

 

(191.5)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PATTERSON COMPANIES, INC.
SALES SUMMARY
(Dollars in thousands)
(Unaudited)

 
 

 

April 27,
2024

 

April 29,
2023

 

Total
Sales
Growth

 

Foreign
Exchange
Impact

 

Net
Interest
Rate
Swap

 

Acquisition
Impact

 

Internal
Sales
Growth

Twelve Months Ended

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated net sales

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumable

$

5,274,012

 

$

5,147,330

 

2.5%

 

0.5%

 

?%

 

0.1%

 

1.9%

Equipment

 

888,597

 

 

950,403

 

(6.5)

 

(0.1)

 

?

 

?

 

(6.4)

Value-added services and other

 

405,663

 

 

373,738

 

8.5

 

0.4

 

0.7

 

3.7

 

3.7

Total

$

6,568,272

 

$

6,471,471

 

1.5%

 

0.4%

 

?%

 

0.3%

 

0.8%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dental

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumable

$

1,415,789

 

$

1,358,823

 

4.2%

 

(0.2)%

 

?%

 

?%

 

4.4%

Equipment

 

766,345

 

 

823,978

 

(7.0)

 

(0.1)

 

?

 

?

 

(6.9)

Value-added services and other

 

306,500

 

 

309,341

 

(0.9)

 

(0.1)

 

?

 

?

 

(0.8)

Total

$

2,488,634

 

$

2,492,142

 

(0.1)%

 

(0.1)%

 

?%

 

?%

 

?%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Animal Health

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumable

$

3,858,223

 

$

3,788,507

 

1.8%

 

0.8%

 

?%

 

0.2%

 

0.8%

Equipment

 

122,252

 

 

126,425

 

(3.3)

 

?

 

?

 

?

 

(3.3)

Value-added services and other

 

86,594

 

 

49,990

 

73.2

 

3.1

 

?

 

27.5

 

42.6

Total

$

4,067,069

 

$

3,964,922

 

2.6%

 

0.8%

 

?%

 

0.5%

 

1.3%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate

 

 

 

 

 

 

 

 

 

 

 

 

 

Value-added services and other

$

12,569

 

$

14,407

 

(12.8)%

 

?%

 

17.2%

 

?%

 

(30.0)%

Total

$

12,569

 

$

14,407

 

(12.8)%

 

?%

 

17.2%

 

?%

 

(30.0)%

 

PATTERSON COMPANIES, INC.
OPERATING INCOME BY SEGMENT
(In thousands)
(Unaudited)

 
 

 

Three Months Ended

 

Twelve Months Ended

 

April 27,
2024

 

April 29,
2023

 

April 27,
2024

 

April 29,
2023

 

 

 

 

 

 

 

 

Operating income (loss)

 

 

 

 

 

 

 

Dental

$

62,230

 

 

$

79,121

 

 

$

209,807

 

 

$

237,268

 

Animal Health

 

50,934

 

 

 

46,622

 

 

 

139,077

 

 

 

126,994

 

Corporate

 

(25,377

)

 

 

(20,633

)

 

 

(95,960

)

 

 

(88,291

)

Total

$

87,787

 

 

$

105,110

 

 

$

252,924

 

 

$

275,971

 

 

PATTERSON COMPANIES, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
(Dollars in thousands, except per share amounts)
(Unaudited)

 
 

For the three months ended April 27, 2024

 

GAAP

 

Deal
amortization

 

Interest rate
swap

 

Non-GAAP

Net sales

 

$

1,722,660

 

 

$

?

 

 

$

6,360

 

 

$

1,729,020

 

Gross profit

 

 

371,155

 

 

 

?

 

 

 

6,360

 

 

 

377,515

 

Operating expenses

 

 

283,368

 

 

 

(9,655

)

 

 

?

 

 

 

273,713

 

Operating income

 

 

87,787

 

 

 

9,655

 

 

 

6,360

 

 

 

103,802

 

Other income (expense), net

 

 

(642

)

 

 

?

 

 

 

(6,360

)

 

 

(7,002

)

Income before taxes

 

 

87,145

 

 

 

9,655

 

 

 

?

 

 

 

96,800

 

Income tax expense

 

 

20,204

 

 

 

2,305

 

 

 

?

 

 

 

22,509

 

Net income

 

 

66,941

 

 

 

7,350

 

 

 

?

 

 

 

74,291

 

Net loss attributable to noncontrolling interests

 

 

(95

)

 

 

?

 

 

 

?

 

 

 

(95

)

Net income attributable to Patterson Companies, Inc.

 

$

67,036

 

 

$

7,350

 

 

$

?

 

 

$

74,386

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share attributable to Patterson Companies, Inc.*

 

$

0.74

 

 

$

0.08

 

 

$

?

 

 

$

0.82

 

 

 

 

 

 

 

 

 

 

Gross margin

 

 

21.5

%

 

 

 

 

 

 

21.8

%

Operating margin

 

 

5.1

%

 

 

 

 

 

 

6.0

%

Effective tax rate

 

 

23.2

%

 

 

 

 

 

 

23.3

%

 

 

 

 

 

 

 

 

 

For the three months ended April 29, 2023

 

GAAP

 

Deal
amortization

 

Interest rate
swap

 

Non-GAAP

Net sales

 

$

1,721,152

 

 

$

?

 

 

$

693

 

 

$

1,721,845

 

Gross profit

 

 

389,761

 

 

 

?

 

 

 

693

 

 

 

390,454

 

Operating expenses

 

 

284,651

 

 

 

(9,772

)

 

 

?

 

 

 

274,879

 

Operating income

 

 

105,110

 

 

 

9,772

 

 

 

693

 

 

 

115,575

 

Other income (expense), net

 

 

(6,051

)

 

 

?

 

 

 

(693

)

 

 

(6,744

)

Income before taxes

 

 

99,059

 

 

 

9,772

 

 

 

?

 

 

 

108,831

 

Income tax expense

 

 

24,217

 

 

 

2,337

 

 

 

?

 

 

 

26,554

 

Net income

 

 

74,842

 

 

 

7,435

 

 

 

?

 

 

 

82,277

 

Net loss attributable to noncontrolling interests

 

 

(123

)

 

 

?

 

 

 

?

 

 

 

(123

)

Net income attributable to Patterson Companies, Inc.

 

$

74,965

 

 

$

7,435

 

 

$

?

 

 

$

82,400

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share attributable to Patterson Companies, Inc.*

 

$

0.77

 

 

$

0.08

 

 

$

?

 

 

$

0.84

 

 

 

 

 

 

 

 

 

 

Gross margin

 

 

22.6

%

 

 

 

 

 

 

22.7

%

Operating margin

 

 

6.1

%

 

 

 

 

 

 

6.7

%

Effective tax rate

 

 

24.4

%

 

 

 

 

 

 

24.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

* 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 twelve months ended April 27, 2024

 

GAAP

 

Deal
amortization

 

Interest rate
swap

 

Non-GAAP

Net sales

 

$

6,568,272

 

 

$

?

 

 

$

12,447

 

 

$

6,580,719

 

Gross profit

 

 

1,380,242

 

 

 

?

 

 

 

12,447

 

 

 

1,392,689

 

Operating expenses

 

 

1,127,318

 

 

 

(38,539

)

 

 

?

 

 

 

1,088,779

 

Operating income

 

 

252,924

 

 

 

38,539

 

 

 

12,447

 

 

 

303,910

 

Other income (expense), net

 

 

(9,871

)

 

 

?

 

 

 

(12,447

)

 

 

(22,318

)

Income before taxes

 

 

243,053

 

 

 

38,539

 

 

 

?

 

 

 

281,592

 

Income tax expense

 

 

57,534

 

 

 

9,218

 

 

 

?

 

 

 

66,752

 

Net income

 

 

185,519

 

 

 

29,321

 

 

 

?

 

 

 

214,840

 

Net loss attributable to noncontrolling interests

 

 

(412

)

 

 

?

 

 

 

?

 

 

 

(412

)

Net income attributable to Patterson Companies, Inc.

 

$

185,931

 

 

$

29,321

 

 

$

?

 

 

$

215,252

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share attributable to Patterson Companies, Inc.*

 

$

1.98

 

 

$

0.31

 

 

$

?

 

 

$

2.30

 

 

 

 

 

 

 

 

 

 

Gross margin

 

 

21.0

%

 

 

 

 

 

 

21.2

%

Operating margin

 

 

3.9

%

 

 

 

 

 

 

4.6

%

Effective tax rate

 

 

23.7

%

 

 

 

 

 

 

23.7

%

 

 

 

 

 

 

 

 

 

For the twelve months ended April 29, 2023

 

GAAP

 

Deal
amortization

 

Interest rate
swap

 

Non-GAAP

Net sales

 

$

6,471,471

 

 

$

?

 

 

$

9,968

 

 

$

6,481,439

 

Gross profit

 

 

1,372,945

 

 

 

?

 

 

 

9,968

 

 

 

1,382,913

 

Operating expenses

 

 

1,096,974

 

 

 

(37,932

)

 

 

?

 

 

 

1,059,042

 

Operating income

 

 

275,971

 

 

 

37,932

 

 

 

9,968

 

 

 

323,871

 

Other income (expense), net

 

 

(5,810

)

 

 

?

 

 

 

(9,968

)

 

 

(15,778

)

Income before taxes

 

 

270,161

 

 

 

37,932

 

 

 

?

 

 

 

308,093

 

Income tax expense

 

 

63,563

 

 

 

9,083

 

 

 

?

 

 

 

72,646

 

Net income

 

 

206,598

 

 

 

28,849

 

 

 

?

 

 

 

235,447

 

Net loss attributable to noncontrolling interests

 

 

(959

)

 

 

?

 

 

 

?

 

 

 

(959

)

Net income attributable to Patterson Companies, Inc.

 

$

207,557

 

 

$

28,849

 

 

$

?

 

 

$

236,406

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share attributable to Patterson Companies, Inc.*

 

$

2.12

 

 

$

0.29

 

 

$

?

 

 

$

2.42

 

 

 

 

 

 

 

 

 

 

Gross margin

 

 

21.2

%

 

 

 

 

 

 

21.3

%

Operating margin

 

 

4.3

%

 

 

 

 

 

 

5.0

%

Effective tax rate

 

 

23.5

%

 

 

 

 

 

 

23.6

%

 

 

 

 

 

 

 

 

 

* May not sum due to rounding.

 

PATTERSON COMPANIES, INC.
FREE CASH FLOW
(In thousands)
(Unaudited)

 
 

 

Twelve Months Ended

 

April 27,
2024

 

April 29,
2023

 

 

 

 

Net cash used in operating activities

$

(789,378

)

 

$

(754,852

)

Additions to property and equipment and software

 

(67,626

)

 

 

(64,220

)

Collection of deferred purchase price receivables

 

1,028,277

 

 

 

998,912

 

Free cash flow

$

171,273

 

 

$

179,840

 

 

 

 

 

 


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