- Fourth quarter reported net sales increased 0.1 percent
year-over-year to $1.72 billion, and internal sales decreased 0.5
percent.
- Fourth quarter internal sales benefitted from strong growth
in production animal as well as dental consumables growth of 3.7
percent year-over-year.
- Returned $327.9 million to shareholders in fiscal 2024
through dividends and share repurchases.
- Delivered fourth quarter GAAP earnings of $0.74 per diluted
share and adjusted earnings1 of $0.82 per diluted share; both GAAP
and adjusted earnings1 were negatively impacted by $0.04 per
diluted share due to the cybersecurity attack on Change
Healthcare.
- Achieved fiscal 2024 GAAP earnings of $1.98 per diluted
share and adjusted earnings of $2.30 per diluted share.
- Issues fiscal 2025 GAAP earnings guidance of $2.00 to $2.10
per diluted share and adjusted earnings1 guidance of $2.33 to $2.43
per diluted share.
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:
- 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,
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.
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
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240618970352/en/
INVESTOR CONTACT: John M. Wright, Investor Relations
TEL: 651.686.1364 EMAIL:
investor.relations@pattersoncompanies.com MEDIA CONTACT:
Patterson Corporate Communications TEL: 651.905.3349
EMAIL: corporate.communications@pattersoncompanies.com
WEB: pattersoncompanies.com
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