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    Patterson Companies Reports Fiscal 2025 First Quarter Operating Results

    8/28/24 7:00:00 AM ET
    $PDCO
    Medical Specialities
    Health Care
    Get the next $PDCO alert in real time by email
    • First quarter reported net sales decreased 2.2 percent year-over-year to $1.54 billion, and internal sales decreased 2.8 percent.
    • Returned $73.3 million to shareholders in first quarter of fiscal 2025 through dividends and share repurchases.
    • Delivered first quarter GAAP earnings of $0.15 per diluted share and adjusted earnings1 of $0.24 per diluted share; both GAAP and adjusted earnings1 were negatively impacted by the cybersecurity attack on Change Healthcare compared to the prior year.
    • Reaffirms fiscal 2025 GAAP earnings guidance range of $2.00 to $2.10 per diluted share and adjusted earnings1 guidance range of $2.33 to $2.43 per diluted share.

    Patterson Companies, Inc. (NASDAQ:PDCO) today reported operating results for its fiscal 2025 first quarter ended July 27, 2024.

    "Our first quarter results fell short of our expectations, primarily due to the greater than anticipated impact of the Change Healthcare cybersecurity attack on the value-added services category in our dental segment, along with lower sales in our companion animal business and the timing of certain corporate expenses," said Don Zurbay, President and CEO of Patterson Companies. "In light of these factors and against the backdrop of a challenging macroeconomic environment, we are taking dedicated cost and management actions across Patterson to deliver on our financial plan for fiscal 2025, and maintaining a strategic focus on supporting our customers with the deep and differentiated value-proposition they expect from us."

    First Quarter Fiscal 2025 Results

    Consolidated net sales were $1.54 billion (see attached Sales Summary for further details), a decrease of 2.2 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 2.8 percent over the prior year period.

    Reported net income attributable to Patterson Companies, Inc. for the first quarter of fiscal 2025 was $13.7 million, or $0.15 per diluted share, compared to $31.2 million, or $0.32 per diluted share, in the first quarter of fiscal 2024. Adjusted net income1 attributable to Patterson Companies, Inc., which excludes deal amortization totaled $21.0 million for the first quarter of fiscal 2025, or $0.24 per diluted share, compared to $38.6 million, or $0.40 per diluted share, in the first quarter of fiscal 2024. The year-over-year decrease in reported and adjusted net income attributable to Patterson Companies, Inc. in the first quarter of fiscal 2025 is related to lower retail sales and operating margins in both business segments and the continued negative impact of the widely reported cybersecurity attack on vendor Change Healthcare, within the value-added services category of the dental segment. Both reported and adjusted net income in the fiscal 2025 first quarter were negatively impacted by the cybersecurity attack on Change Healthcare compared to the prior year period.

    Patterson Dental

    Reported net sales in the Dental segment for the first quarter of fiscal 2025 were $550.4 million. Internal sales decreased 2.8 percent compared to the fiscal 2024 first quarter. Internal sales of consumables decreased 2.1 percent year-over-year. Excluding the deflationary impact of certain infection control products, internal sales of consumables decreased 1.7 percent year-over-year. Compared to the prior year period, internal sales of equipment decreased 2.4 percent. Internal sales of value-added services decreased 6.7 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 first quarter of fiscal 2025 were $982.4 million. Internal sales declined 2.8 percent compared to the fiscal 2024 first quarter. Compared to the prior year period, internal sales of consumables declined 3.0 percent, equipment decreased 3.8 percent and value-added services increased 8.3 percent.

    Balance Sheet and Capital Allocation

    During the first quarter of fiscal 2025, Patterson Companies used $285.0 million of cash from operating activities and collected deferred purchase price receivables of $271.8 million, using $13.1 million in cash, compared to using $11.4 million during the first quarter of fiscal 2024. Free cash flow1 (see definition below and attached free cash flow table) during the first quarter of fiscal 2025 improved by $1.8 million compared to the first quarter of fiscal 2024.

    In the first quarter of fiscal 2025, 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 $50.0 million of shares during the fiscal first quarter. At of the end of the first quarter of fiscal 2025, Patterson had approximately $450 million of share repurchase authority remaining on its current share repurchase authorization. During the first quarter of fiscal 2025, Patterson Companies returned $73.3 million to shareholders in the form of cash dividends and share repurchases.

    Fiscal 2025 Guidance

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

    • GAAP earnings are expected to be in the range of $2.00 to $2.10 per diluted share.
    • Non-GAAP adjusted earnings1 are expected to be in the range of $2.33 to $2.43 per diluted share.
    • Our non-GAAP adjusted earnings1 guidance excludes the after-tax impact of:
      • Deal amortization expenses of approximately $29.1 million ($0.33 per diluted share).

    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 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 and an interest rate swap 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.

    First Quarter Conference Call and Replay

    Patterson Companies' fiscal 2025 first 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 2025 first 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

     

    July 27, 2024

     

    July 29, 2023

     

     

     

     

    Net sales

    $

    1,541,742

     

     

    $

    1,576,745

     

     

     

     

     

    Gross profit

     

    312,609

     

     

     

    319,055

     

     

     

     

     

    Operating expenses

     

    283,240

     

     

     

    280,833

     

     

     

     

     

    Operating income

     

    29,369

     

     

     

    38,222

     

     

     

     

     

    Other income (expense):

     

     

     

    Other income, net

     

    1,714

     

     

     

    11,901

     

    Interest expense

     

    (13,223

    )

     

     

    (9,512

    )

     

     

     

     

    Income before taxes

     

    17,860

     

     

     

    40,611

     

     

     

     

     

    Income tax expense

     

    4,221

     

     

     

    9,481

     

     

     

     

     

    Net income

     

    13,639

     

     

     

    31,130

     

    Net loss attributable to noncontrolling interests

     

    (76

    )

     

     

    (104

    )

    Net income attributable to Patterson Companies, Inc.

    $

    13,715

     

     

    $

    31,234

     

     

     

     

     

    Earnings per share attributable to Patterson Companies, Inc.:

     

     

     

    Basic

    $

    0.16

     

     

    $

    0.33

     

    Diluted

    $

    0.15

     

     

    $

    0.32

     

     

     

     

     

    Weighted average shares:

     

     

     

    Basic

     

    88,127

     

     

     

    95,544

     

    Diluted

     

    88,645

     

     

     

    96,190

     

     

     

     

     

    Dividends declared per common share

    $

    0.26

     

     

    $

    0.26

     

     

    PATTERSON COMPANIES, INC.

    CONDENSED CONSOLIDATED BALANCE SHEETS

    (In thousands)

    (Unaudited)

     

     

    July 27, 2024

     

    April 27, 2024

     

     

     

     

    ASSETS

     

     

     

    Current assets:

     

     

     

    Cash and cash equivalents

    $

    148,079

     

    $

    114,462

    Receivables, net

     

    442,342

     

     

    547,287

    Inventory, net

     

    849,504

     

     

    782,898

    Prepaid expenses and other current assets

     

    322,185

     

     

    334,116

    Total current assets

     

    1,762,110

     

     

    1,778,763

    Property and equipment, net

     

    226,151

     

     

    229,081

    Operating lease right-of-use assets, net

     

    124,473

     

     

    122,295

    Goodwill and identifiable intangibles, net

     

    340,166

     

     

    349,589

    Investments

     

    167,386

     

     

    166,320

    Long-term receivables, net and other

     

    254,472

     

     

    250,684

    Total assets

    $

    2,874,758

     

    $

    2,896,732

     

     

     

     

    LIABILITIES AND STOCKHOLDERS' EQUITY

     

     

     

    Current liabilities:

     

     

     

    Accounts payable

    $

    656,977

     

    $

    745,375

    Other accrued liabilities

     

    223,025

     

     

    245,610

    Operating lease liabilities

     

    33,643

     

     

    32,815

    Current maturities of long-term debt

     

    123,875

     

     

    122,750

    Borrowings on revolving credit

     

    320,000

     

     

    186,000

    Total current liabilities

     

    1,357,520

     

     

    1,332,550

    Long-term debt

     

    327,153

     

     

    328,911

    Non-current operating lease liabilities

     

    94,261

     

     

    92,464

    Other non-current liabilities

     

    143,323

     

     

    141,075

    Total liabilities

     

    1,922,257

     

     

    1,895,000

    Stockholders' equity

     

    952,501

     

     

    1,001,732

    Total liabilities and stockholders' equity

    $

    2,874,758

     

    $

    2,896,732

     

    PATTERSON COMPANIES, INC.

    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

    (In thousands)

    (Unaudited)

     

     

    Three Months Ended

     

    July 27, 2024

     

    July 29, 2023

     

     

     

     

    Operating activities:

     

     

     

    Net income

    $

    13,639

     

     

    $

    31,130

     

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

     

     

     

    Depreciation and amortization

     

    22,750

     

     

     

    21,033

     

    Stock-based compensation

     

    8,060

     

     

     

    7,015

     

    Non-cash losses (gains) and other, net

     

    1,745

     

     

     

    2,268

     

    Change in assets and liabilities:

     

     

     

    Receivables

     

    (140,656

    )

     

     

    (154,602

    )

    Inventory

     

    (65,292

    )

     

     

    (114,323

    )

    Accounts payable

     

    (91,995

    )

     

     

    (11,093

    )

    Accrued liabilities

     

    (22,698

    )

     

     

    (21,715

    )

    Other changes from operating activities, net

     

    (10,523

    )

     

     

    (13,079

    )

    Net cash used in operating activities

     

    (284,970

    )

     

     

    (253,366

    )

    Investing activities:

     

     

     

    Additions to property and equipment and software

     

    (13,507

    )

     

     

    (17,087

    )

    Collection of deferred purchase price receivables

     

    271,834

     

     

     

    242,013

     

    Payments related to acquisitions, net of cash acquired

     

    —

     

     

     

    (1,108

    )

    Net cash provided by investing activities

     

    258,327

     

     

     

    223,818

     

    Financing activities:

     

     

     

    Dividends paid

     

    (23,312

    )

     

     

    (25,432

    )

    Repurchases of common stock

     

    (50,000

    )

     

     

    (29,508

    )

    Payments on long-term debt

     

    (750

    )

     

     

    (750

    )

    Draw on revolving credit

     

    134,000

     

     

     

    31,000

     

    Other financing activities

     

    (1,151

    )

     

     

    1,574

     

    Net cash provided by (used in) financing activities

     

    58,787

     

     

     

    (23,116

    )

    Effect of exchange rate changes on cash

     

    1,473

     

     

     

    1,568

     

    Net change in cash and cash equivalents

     

    33,617

     

     

     

    (51,096

    )

    Cash and cash equivalents at beginning of period

     

    114,462

     

     

     

    159,669

     

    Cash and cash equivalents at end of period

    $

    148,079

     

     

    $

    108,573

     

     

    PATTERSON COMPANIES, INC.

    SALES SUMMARY

    (Dollars in thousands)

    (Unaudited)

     

     

    July 27, 2024

     

    July 29, 2023

     

    Total

    Sales

    Growth

     

    Foreign

    Exchange

    Impact

     

    Net Interest Rate Swap

     

    Internal Sales

    Growth

    Three Months Ended

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Consolidated net sales

     

     

     

     

     

     

     

     

     

     

     

    Consumable

    $

    1,278,413

     

    $

    1,315,725

     

     

    (2.8

    )%

     

    —

    %

     

    —

    %

     

    (2.8

    )%

    Equipment

     

    159,286

     

     

    163,971

     

     

    (2.9

    )

     

    (0.2

    )

     

    —

     

     

    (2.7

    )

    Value-added services and other

     

    104,043

     

     

    97,049

     

     

    7.2

     

     

    (0.1

    )

     

    10.7

     

     

    (3.4

    )

    Total

    $

    1,541,742

     

    $

    1,576,745

     

     

    (2.2

    )%

     

    (0.1

    )%

     

    0.7

    %

     

    (2.8

    )%

     

     

     

     

     

     

     

     

     

     

     

     

    Dental

     

     

     

     

     

     

     

     

     

     

     

    Consumable

    $

    344,117

     

    $

    352,047

     

     

    (2.3

    )%

     

    (0.2

    )%

     

    —

    %

     

    (2.1

    )%

    Equipment

     

    133,858

     

     

    137,549

     

     

    (2.7

    )

     

    (0.3

    )

     

    —

     

     

    (2.4

    )

    Value-added services and other

     

    72,382

     

     

    77,704

     

     

    (6.8

    )

     

    (0.1

    )

     

    —

     

     

    (6.7

    )

    Total

    $

    550,357

     

    $

    567,300

     

     

    (3.0

    )%

     

    (0.2

    )%

     

    —

    %

     

    (2.8

    )%

     

     

     

     

     

     

     

     

     

     

     

     

    Animal Health

     

     

     

     

     

     

     

     

     

     

     

    Consumable

    $

    934,296

     

    $

    963,678

     

     

    (3.0

    )%

     

    —

    %

     

    —

    %

     

    (3.0

    )%

    Equipment

     

    25,428

     

     

    26,422

     

     

    (3.8

    )

     

    —

     

     

    —

     

     

    (3.8

    )

    Value-added services and other

     

    22,689

     

     

    20,890

     

     

    8.6

     

     

    0.3

     

     

    —

     

     

    8.3

     

    Total

    $

    982,413

     

    $

    1,010,990

     

     

    (2.8

    )%

     

    —

    %

     

    —

    %

     

    (2.8

    )%

     

     

     

     

     

     

     

     

     

     

     

     

    Corporate

     

     

     

     

     

     

     

     

     

     

     

    Value-added services and other

    $

    8,972

     

    $

    (1,545

    )

     

    n/m

     

     

    —

    %

     

    n/m

     

     

    (0.2

    )%

    Total

    $

    8,972

     

    $

    (1,545

    )

     

    n/m

     

     

    —

    %

     

    n/m

     

     

    (0.2

    )%

     

    PATTERSON COMPANIES, INC.

    OPERATING INCOME BY SEGMENT

    (In thousands)

    (Unaudited)

     

     

    Three Months Ended

     

    July 27, 2024

     

    July 29, 2023

     

     

     

     

    Operating income (loss)

     

     

     

    Dental

    $

    27,058

     

     

    $

    38,670

     

    Animal Health

     

    25,367

     

     

     

    29,693

     

    Corporate

     

    (23,056

    )

     

     

    (30,141

    )

    Total

    $

    29,369

     

     

    $

    38,222

     

     

    PATTERSON COMPANIES, INC.

    RECONCILIATION OF GAAP TO NON-GAAP MEASURES

    (Dollars in thousands, except per share amounts)

    (Unaudited)

     

    For the three months ended July 27, 2024

     

    GAAP

     

    Deal amortization

     

    Interest rate swap

     

    Non-GAAP

    Net sales

     

    $

    1,541,742

     

     

    $

    —

     

     

    $

    (3,755

    )

     

    $

    1,537,987

     

    Gross profit

     

     

    312,609

     

     

     

    —

     

     

     

    (3,755

    )

     

     

    308,854

     

    Operating expenses

     

     

    283,240

     

     

     

    (9,639

    )

     

     

    —

     

     

     

    273,601

     

    Operating income

     

     

    29,369

     

     

     

    9,639

     

     

     

    (3,755

    )

     

     

    35,253

     

    Other income (expense), net

     

     

    (11,509

    )

     

     

    —

     

     

     

    3,755

     

     

     

    (7,754

    )

    Income before taxes

     

     

    17,860

     

     

     

    9,639

     

     

     

    —

     

     

     

    27,499

     

    Income tax expense

     

     

    4,221

     

     

     

    2,305

     

     

     

    —

     

     

     

    6,526

     

    Net income

     

     

    13,639

     

     

     

    7,334

     

     

     

    —

     

     

     

    20,973

     

    Net loss attributable to noncontrolling interests

     

     

    (76

    )

     

     

    —

     

     

     

    —

     

     

     

    (76

    )

    Net income attributable to Patterson Companies, Inc.

     

    $

    13,715

     

     

    $

    7,334

     

     

    $

    —

     

     

    $

    21,049

     

     

     

     

     

     

     

     

     

     

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

     

    $

    0.15

     

     

    $

    0.08

     

     

    $

    —

     

     

    $

    0.24

     

     

     

     

     

     

     

     

     

     

    Gross margin

     

     

    20.3

    %

     

     

     

     

     

     

    20.1

    %

    Operating margin

     

     

    1.9

    %

     

     

     

     

     

     

    2.3

    %

    Effective tax rate

     

     

    23.6

    %

     

     

     

     

     

     

    23.7

    %

     

     

     

     

     

     

     

     

     

    For the three months ended July 29, 2023

     

    GAAP

     

    Deal amortization

     

    Interest rate swap

     

    Non-GAAP

    Net sales

     

    $

    1,576,745

     

     

    $

    —

     

     

    $

    6,775

     

     

    $

    1,583,520

     

    Gross profit

     

     

    319,055

     

     

     

    —

     

     

     

    6,775

     

     

     

    325,830

     

    Operating expenses

     

     

    280,833

     

     

     

    (9,626

    )

     

     

    —

     

     

     

    271,207

     

    Operating income

     

     

    38,222

     

     

     

    9,626

     

     

     

    6,775

     

     

     

    54,623

     

    Other income (expense), net

     

     

    2,389

     

     

     

    —

     

     

     

    (6,775

    )

     

     

    (4,386

    )

    Income before taxes

     

     

    40,611

     

     

     

    9,626

     

     

     

    —

     

     

     

    50,237

     

    Income tax expense

     

     

    9,481

     

     

     

    2,304

     

     

     

    —

     

     

     

    11,785

     

    Net income

     

     

    31,130

     

     

     

    7,322

     

     

     

    —

     

     

     

    38,452

     

    Net loss attributable to noncontrolling interests

     

     

    (104

    )

     

     

    —

     

     

     

    —

     

     

     

    (104

    )

    Net income attributable to Patterson Companies, Inc.

     

    $

    31,234

     

     

    $

    7,322

     

     

    $

    —

     

     

    $

    38,556

     

     

     

     

     

     

     

     

     

     

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

     

    $

    0.32

     

     

    $

    0.08

     

     

    $

    —

     

     

    $

    0.40

     

     

     

     

     

     

     

     

     

     

    Gross margin

     

     

    20.2

    %

     

     

     

     

     

     

    20.6

    %

    Operating margin

     

     

    2.4

    %

     

     

     

     

     

     

    3.4

    %

    Effective tax rate

     

     

    23.3

    %

     

     

     

     

     

     

    23.5

    %

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    * May not sum due to rounding

     

     

     

     

     

     

     

     

     

    PATTERSON COMPANIES, INC.

    FREE CASH FLOW

    (In thousands)

    (Unaudited)

     

     

    Three Months Ended

     

    July 27, 2024

     

    July 29, 2023

    Net cash used in operating activities

    $

    (284,970

    )

     

    $

    (253,366

    )

    Additions to property and equipment and software

     

    (13,507

    )

     

     

    (17,087

    )

    Collection of deferred purchase price receivables

     

    271,834

     

     

     

    242,013

     

    Free cash flow

    $

    (26,643

    )

     

    $

    (28,440

    )

     

    View source version on businesswire.com: https://www.businesswire.com/news/home/20240828954044/en/

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