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PATTERSON COMPANIES, INC.

Date Filed : Dec 01, 2021

EX-992d243107dex99.htmEX-99EX-99

Exhibit 99

 

PATTERSON COMPANIES | 1031 Mendota Heights Road | Saint Paul, MN 55120   NEWS RELEASE

PATTERSON COMPANIES REPORTS FISCAL 2022

SECOND-QUARTER OPERATING RESULTS

 

  

Reported net sales increased 6.2 percent year-over-year to $1.65 billion, and internal sales increased8.3 percent.

  

Dental segment internal sales decreased 2.0 percent year-over-year and increased 9.8 percent compared to the pre-pandemic period of the second quarter of fiscal 2020.

  

Animal Health segment internal sales increased 16.2 percent year-over-year and increased 24.3 percent comparedto the pre-pandemic period of the second quarter of fiscal 2020.

  

Delivered second-quarter GAAP earnings of $0.49 per diluted share and adjusted earnings1 of $0.58 per diluted share.

  

Increased fiscal 2022 GAAP earnings guidance range to $1.69 to $1.79 per diluted share and adjusted earnings1 guidance range to $2.00 to $2.10 per diluted share.

St. Paul, Minn. —December 1, 2021 — Patterson Companies, Inc. (Nasdaq: PDCO) today reported consolidated net sales of $1.65 billion (see attached Sales Summary for further details) in its fiscal second quarter ended October 30, 2021, an increaseof 6.2 percent compared to the same period last year. Internal sales, which are adjusted for the effects of currency translation, changes in product selling relationships and contributions from recent acquisitions, increased 8.3 percentover the prior year.

Reported net income attributable to Patterson Companies, Inc. for the second quarter of fiscal 2022 was $48.3 million, or $0.49 perdiluted share, compared to $54.1 million, or $0.56 per diluted share, in the second quarter of fiscal 2021. Adjusted net income1 attributable to Patterson Companies, Inc., which excludes dealamortization and integration and business restructuring expenses, totaled $57.1 million for the second quarter of fiscal 2022, or $0.58 per diluted share, compared to $61.1 million in the same quarter of fiscal 2021, or $0.63 per dilutedshare. The year-over-year decline in reported and adjusted net income attributable to Patterson Companies, Inc. is primarily due to lower expenses in the prior year period associated with COVID-19. Theyear-over-year decline was partially offset by strong sales performance in the Animal Health segment during the second quarter of fiscal 2022.

“Our top andbottom line results during the second quarter and first half of fiscal 2022 reflect the strong focus and execution of our team and that our value proposition continues to resonate with our customers,” said Mark Walchirk, President and CEO ofPatterson Companies. “Given our momentum and confidence in the business, we are increasing our adjusted EPS guidance range for fiscal 2022. We remain focused on leveraging the combined strength of Patterson’s team, strategy and deep valueproposition to serve our customers, accelerate our growth and drive long-term value creation.”

Patterson Dental

Reported net sales in our Dental segment for the second quarter of fiscal 2022, which represented approximately 38 percent of total company sales, were$622.2 million. Internal sales decreased 2.0 percent compared to the fiscal 2021 second quarter, including a 0.8 percent decline in consumables and a 3.0 percent decline in equipment and software. Compared to the pre-pandemic period of the second quarter of fiscal 2020, internal sales increased 9.8 percent, including 16.7 percent growth in consumables and 2.3 percent growth in equipment and software.

Patterson Animal Health

Reported net sales in our Animal Health segment forthe second quarter of fiscal 2022, which comprised approximately 62 percent of the company’s total sales, were $1.0 billion. Internal sales growth of 16.2 percent was driven by continued strong performance in companion animal andadditional recovery in production animal and included 15.8 percent growth in consumables and 37.8 percent growth in equipment and software. Compared to the pre-pandemic period of the second quarterof fiscal 2020, internal sales increased 24.3 percent, including 23.5 percent growth in consumables and 72.6 percent growth in equipment and software.

 

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PATTERSON COMPANIES | 1031 Mendota Heights Road | Saint Paul, MN 55120   NEWS RELEASE

 

Balance Sheet and Capital Allocation

During the first six months of fiscal 2022, Patterson Companies used $539.0 million of cash from operating activities and collected deferred purchase pricereceivables of $585.6 million, generating $46.6 million in cash, compared to a use of cash of $14.1 million during the first six months of fiscal 2021. Free cash flow1 (seedefinition below and attached free cash flow table) during the first six months of fiscal 2022 improved by $59.6 million compared to the fiscal 2021 period due to a decreased level of working capital during fiscal 2022.

In the second quarter of fiscal 2022, Patterson Companies declared a quarterly cash dividend of $0.26 per share and returned $25.3 million in cash dividends toshareholders. Through the first six months of fiscal 2022, Patterson Companies has returned $50.4 million in cash dividends to shareholders.

Year-to-Date Results

Consolidated reported net sales for the first six months offiscal 2022 totaled $3.3 billion, a 16.6 percent year-over-year increase. Sales in the first six months of fiscal 2022 reflected an extra week of sales results in the fiscal first quarter versus the prior year. Internal sales, which areadjusted for the effects of currency translation, changes in product selling relationships, contributions from recent acquisitions and the extra week of selling results in the first quarter of fiscal 2022, increased 13.9 percent compared to thefirst six months of fiscal 2021. Through the first six months of fiscal 2022, Dental segment internal sales increased 10.8 percent, including 13.8 percent growth in consumables and 8.2 percent growth in equipment and software. Throughthe first six months of fiscal 2022, Animal Health segment internal sales increased 16.4 percent, including 15.7 percent growth in consumables and 42.7 percent growth in equipment and software.

Reported net income attributable to Patterson Companies, Inc. was $82.3 million, or $0.84 per diluted share, compared to a $78.5 million, or $0.82 per dilutedshare in last year’s period. Adjusted net income1 attributable to Patterson Companies, Inc., which excludes gains on investments, inventory donation charges, deal amortization, legal reservesand integration and business restructuring expenses totaled $99.2 million, or $1.01 per diluted share, compared to adjusted net income attributable to Patterson Companies, Inc. of $92.6 million, or $0.96 per diluted share, in the year-ago period.

Fiscal 2022 Guidance

Patterson Companies today updated its fiscal 2022 earnings guidance, which is provided on both a GAAP and non-GAAP adjusted1 basis:

  

GAAP earnings are expected to be in the range of $1.69 to $1.79 per diluted share, compared to our prior guidance of $1.64to $1.74 per diluted share.

  

Non-GAAP adjustedearnings1 are expected to be in the range of $2.00 to $2.10 per diluted share, compared to our prior guidance of $1.95 to $2.05 per diluted share.

  

Our non-GAAP adjustedearnings1 guidance excludes the after-tax impact of:

 - 

Gains on investments of approximately $65.4 million ($0.67 per diluted share).

 - 

Inventory donation charges of approximately $36.9 million ($0.37 per diluted share).

 - 

Deal amortization expenses of approximately $29.4 million ($0.30 per diluted share).

 - 

Legal reserves of approximately $27.5 million ($0.28 per diluted share).

 - 

Integration and business restructuring expenses of approximately $3.2 million ($0.03 per diluted share).

Our guidance is for current operations as well as completed or previously announced acquisitions and does not include the impact of potentialfuture acquisitions, dispositions or similar transactions, if any, or impairments and material restructurings beyond those previously publicly disclosed. Our guidance assumes North American and international market conditions remain consistent withcurrent market conditions and that there are no material adverse developments associated with the pandemic.

 

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PATTERSON COMPANIES | 1031 Mendota Heights Road | Saint Paul, MN 55120   NEWS RELEASE

 

1Non-GAAP FinancialMeasures

The Reconciliation of GAAP to non-GAAP Measures table appearing behind the accompanying financial informationis provided to adjust reported GAAP measures, namely operating income, other income (expense), net, income before taxes, income tax expense, net income, net income attributable to Patterson Companies, Inc. and diluted earnings per share attributableto Patterson Companies, Inc., for the impact of gains on investments, inventory donation charges, deal amortization, legal reserves and integration and business restructuring expenses along with the related tax effects of these items.

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 deferredpurchase price receivables.

In addition, the term “internal sales” used in this release represents net sales adjusted to exclude the impact of foreigncurrency, changes in product selling relationships, contributions from recent acquisitions and the extra week of selling results in the first quarter of fiscal 2022. Foreign currency impact represents the difference in results that is attributableto 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 resultstranslated 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 changes in constant currency provides useful supplementary informationto investors in light of fluctuations in currency rates.

Management believes that these non-GAAP measures may provide ahelpful representation of the company’s second-quarter performance and enable comparison of financial results between periods where certain items may vary independent of business performance. Thesenon-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.

Second-Quarter Conference Call and Replay

Patterson Companies’ fiscal2022 second-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 replayof the fiscal 2022 second-quarter conference call can be heard for one week at 1-800-770-2030 and by providing the Conference ID73285 when prompted.

About Patterson Companies Inc.

Patterson CompaniesInc. (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. Ourcomprehensive 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 officersand 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 futurefinancial 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 andassumptions 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 inherentuncertainties, risks and changes in

 

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PATTERSON COMPANIES | 1031 Mendota Heights Road | Saint Paul, MN 55120   NEWS RELEASE

 

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 theforward-looking statements. Therefore, you should not place undue reliance on any of these forward-looking statements.

Any number of factors could affect ouractual results and cause such results to differ materially from those contemplated by any forward-looking statements, including, but not limited to, the following: the COVID-19 pandemic and measurestaken in response thereto; our dependence on relationships with sales representatives and service technicians to retain customers and develop business; potential disruption of distribution capabilities, including service issues with third-partyshippers; our dependence on suppliers to manufacture and supply substantially all of the products we sell; the risk of the products we sell becoming obsolete or containing undetected errors; adverse changes in supplier rebates; the risk that privatelabel sales could adversely affect our relationships with suppliers; our dependence on positive perceptions of Patterson’s reputation; risks inherent in acquiring and disposing of assets or other businesses and the risks inherent in integratingacquired businesses; our ability to comply with restrictive covenants in our credit agreement; our dependence on leadership development and succession planning; the risk that our governing documents and Minnesota law may discourage takeovers andbusiness combinations; the effects of the highly competitive and consolidating dental and animal health supply markets in which we compete; exposure to the risks of the animal production business, including changing consumer demand, the cyclicallivestock market, and other factors outside our control; risks from the formation of GPOs, provider networks and buying groups that may shift purchasing decisions and place us at a competitive disadvantage; increasesin over-the-counter sales and e-commerce options for companion animal products or sales of companion animalproducts from non-veterinarian sources; change and uncertainty in the health care industry, including the effects of health care reform; failure to comply with existing or future U.S. or foreign laws andregulations including those governing the distribution of pharmaceuticals and controlled substances; public concern over the abuse of opioid medication in the U.S.; failure to comply with health care fraud or other laws and regulations; litigationrisks, 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 evolving data privacy laws and regulations; tax legislation; the risks inherent in international operations, including currencyfluctuations; risks associated with information systems and cyber-security attacks; disruptions from our enterprise resource planning system; and the risk of being required to record significant impairment charges if our Dental segment’sgoodwill or other intangible assets become impaired.

The order in which these factors appear should not be construed to indicate their relative importance orpriority. 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 risksidentified 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 releaseis 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 bemade from time to time, whether as a result of new information, future developments or otherwise.

 

INVESTOR CONTACT:  John M. Wright, Investor Relations
COMPANY:  Patterson Companies Inc.
TEL:  651.686.1364
EMAIL:  investor.relations@pattersoncompanies.com

 

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PATTERSON COMPANIES | 1031 Mendota Heights Road | Saint Paul, MN 55120   NEWS RELEASE

 

MEDIA CONTACT:

  

Patterson Corporate Communications

COMPANY:

  

Patterson Companies Inc.

TEL:  

651.905.3349

EMAIL:  

corporate.communications@pattersoncompanies.com

WEB:

  

pattersoncompanies.com

SOURCE:

  

Patterson Companies Inc.

# # #

 

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PATTERSON COMPANIES | 1031 Mendota Heights Road | Saint Paul, MN 55120   NEWS RELEASE

 

PATTERSON COMPANIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)

(Unaudited)

 

   Three Months Ended  Six Months Ended 
   October 30,
2021
  October 24,
2020
  October 30,
2021
  October 24,
2020
 

Net sales

  $1,649,161 $1,553,168 $3,264,037 $2,799,005

Gross profit

   326,435  320,368  604,237  574,184

Operating expenses

   263,575  246,662  580,906  462,606
  

 

 

  

 

 

  

 

 

  

 

 

 

Operating income

   62,860  73,706  23,331  111,578

Other income (expense):

     

Gains on investments

         87,827   

Other income, net

   6,804  3,223  8,227  5,257

Interest expense

   (5,521  (6,381  (10,716  (13,072
  

 

 

  

 

 

  

 

 

  

 

 

 

Income before taxes

   64,143  70,548  108,669  103,763

Income tax expense

   16,205  16,722  26,929  25,735
  

 

 

  

 

 

  

 

 

  

 

 

 

Net income

   47,938  53,826  81,740  78,028

Net loss attributable to noncontrolling interests

   (392  (234  (586  (439
  

 

 

  

 

 

  

 

 

  

 

 

 

Net income attributable to Patterson Companies, Inc.

  $48,330 $54,060 $82,326 $78,467
  

 

 

  

 

 

  

 

 

  

 

 

 

Earnings per share attributable to Patterson Companies, Inc.:

     

Basic

  $0.50 $0.57 $0.85 $0.82
  

 

 

  

 

 

  

 

 

  

 

 

 

Diluted

  $0.49 $0.56 $0.84 $0.82
  

 

 

  

 

 

  

 

 

  

 

 

 

Weighted average shares:

     

Basic

   97,321  95,518  97,089  95,341

Diluted

   98,363  96,415  98,363  96,105

Dividends declared per common share

  $0.26 $0.26 $0.52 $0.52

 

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PATTERSON COMPANIES | 1031 Mendota Heights Road | Saint Paul, MN 55120   NEWS RELEASE

 

PATTERSON COMPANIES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Inthousands)

(Unaudited)

 

   October 30, 2021   April 24, 2021 

ASSETS

    

Current assets:

    

Cash and cash equivalents

  $154,152  $143,244

Receivables, net

   481,844   449,235

Inventory

   830,121   736,778

Prepaid expenses and other current assets

   333,314   286,672
  

 

 

   

 

 

 

Total current assets

   1,799,431   1,615,929

Property and equipment, net

   213,362   219,438

Operating lease right-of-useassets, net

   74,095   77,217

Goodwill and identifiable intangibles, net

   413,634   419,576

Long-term receivables, net and other

   402,203   419,351
  

 

 

   

 

 

 

Total assets

  $  2,902,725  $  2,751,511
  

 

 

   

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

    

Current liabilities:

    

Accounts payable

  $773,230  $609,264

Other accrued liabilities

   244,883   294,400

Operating lease liabilities

   31,191   32,252

Current maturities of long-term debt

   100,750   100,750

Borrowings on revolving credit

   43,000   53,000
  

 

 

   

 

 

 

Total current liabilities

   1,193,054   1,089,666

Long-term debt

   488,091   487,545

Non-current operating lease liabilities

   45,217   48,318

Other non-current liabilities

   164,381   161,311
  

 

 

   

 

 

 

Total liabilities

   1,890,743   1,786,840

Stockholders’ equity

   1,011,982   964,671
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

  $2,902,725  $2,751,511
  

 

 

   

 

 

 

 

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PATTERSON COMPANIES | 1031 Mendota Heights Road | Saint Paul, MN 55120   NEWS RELEASE

 

PATTERSON COMPANIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

 

   Six Months Ended 
   October 30, 2021  October 24, 2020 

Operating activities:

   

Net income

  $81,740 $78,028

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

   

Depreciation and amortization

   40,980  38,881

Gains on investments

   (87,827   

Non-cash employee compensation

   13,497  16,660

Non-cash losses (gains) and other, net

   3,974  5,976

Change in assets and liabilities:

   

Receivables

   (583,939  (505,535

Inventory

   (90,728  58,238

Accounts payable

   165,250  (179,276

Accrued liabilities

   (56,029  24,555

Other changes from operating activities, net

   (25,932  39,469
  

 

 

  

 

 

 

Net cash used in operating activities

   (539,014  (423,004

Investing activities:

   

Additions to property and equipment

   (15,503  (14,370

Collection of deferred purchase price receivables

   585,647  408,907

Acquisitions, net of cash acquired

   (19,793   

Sale of investments

   57,245  396
  

 

 

  

 

 

 

Net cash provided by investing activities

   607,596  394,933

Financing activities:

   

Dividends paid

   (50,407  (25,009

(Payment) draw on revolving credit

   (10,000  111,000

Other financing activities

   1,959  631
  

 

 

  

 

 

 

Net cash (used in) provided by financing activities

   (58,448  86,622

Effect of exchange rate changes on cash

   774  2,986
  

 

 

  

 

 

 

Net change in cash and cash equivalents

   10,908  61,537

Cash and cash equivalents at beginning of period

   143,244  77,944
  

 

 

  

 

 

 

Cash and cash equivalents at end of period

  $        154,152 $        139,481
  

 

 

  

 

 

 

 

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PATTERSON COMPANIES | 1031 Mendota Heights Road | Saint Paul, MN 55120   NEWS RELEASE

 

PATTERSON COMPANIES, INC.

SALES SUMMARY

(Dollars in thousands)

(Unaudited)

 

  October 30,
2021
  October 24,
20201
  Total
Sales
Growth
  Foreign
Exchange
Impact
   53rd
Week
   Other 2  Internal
Sales

Growth
 

Three Months Ended

         
Consolidated net sales         

Consumable

 $1,344,812 $1,241,586  8.3  1.0      (3.8)%   11.1

Equipment and software

  223,813  220,227  1.6   0.5          1.1 

Value-added services and other

  80,536  91,355  (11.8  0.7       (0.1  (12.4
 

 

 

  

 

 

  

 

 

  

 

 

   

 

 

   

 

 

  

 

 

 

Total

 $1,649,161 $1,553,168  6.2  0.9      (3.0)%   8.3
 

 

 

  

 

 

  

 

 

  

 

 

   

 

 

   

 

 

  

 

 

 

Dental

         

Consumable

 $356,654 $357,849  (0.3)%   0.5        (0.8)% 

Equipment and software

  193,437  198,181  (2.4  0.6          (3.0

Value-added services and other

  72,124  75,718  (4.7  0.3          (5.0
 

 

 

  

 

 

  

 

 

  

 

 

   

 

 

   

 

 

  

 

 

 

Total

 $622,215 $631,748  (1.5)%   0.5        (2.0)% 
 

 

 

  

 

 

  

 

 

  

 

 

   

 

 

   

 

 

  

 

 

 

Animal Health

         

Consumable

 $988,158 $883,737  11.8  1.3      (5.3)%   15.8

Equipment and software

  30,376  22,046  37.8              37.8 

Value-added services and other

  8,933  8,394  6.4   4.7       (1.5  3.2 
 

 

 

  

 

 

  

 

 

  

 

 

   

 

 

   

 

 

  

 

 

 

Total

 $1,027,467 $914,177  12.4  1.3      (5.1)%   16.2
 

 

 

  

 

 

  

 

 

  

 

 

   

 

 

   

 

 

  

 

 

 

Corporate

         

Value-added services and other

 $(521 $7,243  n/m           n/m 
 

 

 

  

 

 

  

 

 

  

 

 

   

 

 

   

 

 

  

 

 

 

Total

 $(521 $7,243  n/m           n/m 
 

 

 

  

 

 

  

 

 

  

 

 

   

 

 

   

 

 

  

 

 

 

 

1 

Certain sales were reclassified between categories to conform to the current period presentation.

2 

Sales of certain products previously recognized on a gross basis were recognized on a net basis during the three and sixmonths ended October 30, 2021. Other represents the impact of this change in revenue recognition, as well as the impact of an acquisition on sales during the three and six months ended October 30, 2021.

 

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PATTERSON COMPANIES | 1031 Mendota Heights Road | Saint Paul, MN 55120   NEWS RELEASE

 

   October 30,
2021
   October 24,
20201
   Total
Sales
Growth
  Foreign
Exchange
Impact
  53rd
Week
  Other2  Internal
Sales

Growth
 
Six Months Ended          
Consolidated net sales          

Consumable

  $2,686,486  $2,286,567   17.5  1.8  4.3  (3.8)%   15.2

Equipment and software

   407,265   349,658   16.5   1.0  3.5     12.0 

Value-added services and other

   170,286   162,780   4.6   1.2  3.0  (0.1  0.5 
  

 

 

   

 

 

   

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

Total

  $3,264,037  $2,799,005   16.6  1.7  4.1  (3.1)%   13.9
  

 

 

   

 

 

   

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 
Dental          

Consumable

  $733,230  $614,452   19.3  1.0  4.5    13.8

Equipment and software

   350,403   311,198   12.6   1.1  3.3     8.2 

Value-added services and other

   145,449   136,393   6.6   0.5  2.9     3.2 
  

 

 

   

 

 

   

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

Total

  $1,229,082  $1,062,043   15.7  1.0  3.9    10.8
  

 

 

   

 

 

   

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 
Animal Health          

Consumable

  $1,953,256  $1,672,115   16.8  2.1  4.2  (5.2)%   15.7

Equipment and software

   56,862   38,460   47.8      5.1     42.7 

Value-added services and other

   20,139   15,755   27.8   8.0  5.2  (1.2  15.8 
  

 

 

   

 

 

   

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

Total

  $2,030,257  $1,726,330   17.6  2.1  4.2  (5.1)%   16.4
  

 

 

   

 

 

   

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 
Corporate          

Value-added services and other

  $4,698  $10,632   (55.8)%         (55.8)% 
  

 

 

   

 

 

   

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

Total

  $4,698  $10,632   (55.8)%         (55.8)% 
  

 

 

   

 

 

   

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

 

1 

Certain sales were reclassified between categories to conform to the current period presentation.

2 

Sales of certain products previously recognized on a gross basis were recognized on a net basis during the three and sixmonths ended October 30, 2021. Other represents the impact of this change in revenue recognition, as well as the impact of an acquisition on sales during the three and six months ended October 30, 2021.

 

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PATTERSON COMPANIES | 1031 Mendota Heights Road | Saint Paul, MN 55120   NEWS RELEASE

 

PATTERSON COMPANIES, INC.

OPERATING INCOME BY SEGMENT

(In thousands)

(Unaudited)

 

   Three Months Ended  Six Months Ended 
   October 30,
2021
  October 24,
2020
  October 30,
2021
  October 24,
2020
 

Operating income (loss)

     

Dental

  $55,570 $72,957 $54,484 $110,726

Animal Health

           26,135          17,591          49,940          34,990

Corporate

   (18,845  (16,842  (81,093  (34,138
  

 

 

  

 

 

  

 

 

  

 

 

 

Total

  $62,860 $73,706 $23,331 $111,578
  

 

 

  

 

 

  

 

 

  

 

 

 

 

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PATTERSON COMPANIES | 1031 Mendota Heights Road | Saint Paul, MN 55120   NEWS RELEASE

 

PATTERSON COMPANIES, INC.

RECONCILIATION OF GAAP TO NON-GAAP MEASURES

(Dollars in thousands, except per share amounts)

(Unaudited)

 

For the three months ended October 30, 2021

  GAAP  Deal
amortization
   Integration
and business
restructuring
expenses
   Legal
reserves
   Inventory
donation
charges
   Gains on
investments
   Non-GAAP 
Operating income  $62,860 $9,614  $1,863  $  $  $  $74,337
Other income (expense), net   1,283                      1,283
  

 

 

  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
Income before taxes   64,143  9,614   1,863               75,620
Income tax expense   16,205  2,269   466               18,940
  

 

 

  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
Net income   47,938  7,345   1,397               56,680
Net loss attributable to noncontrolling interests   (392                      (392
  

 

 

  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
Net income attributable to Patterson Companies, Inc.  $48,330 $7,345  $1,397  $  $  $  $57,072
  

 

 

  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
Diluted earnings per share attributable to Patterson Companies, Inc.*  $0.49 $0.07  $0.01  $  $  $  $0.58
  

 

 

  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
Operating income as a % of sales   3.8            4.5
Effective tax rate   25.3            25.0

 

For the three months ended October 24, 2020

  GAAP  Deal
amortization
   Integration
and business
restructuring
expenses
   Legal
reserves
   Inventory
donation
charges
   Gains on
investments
   Non-GAAP 
Operating income  $73,706 $9,250  $  $  $  $  $82,956
Other income (expense), net   (3,158                      (3,158
  

 

 

  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
Income before taxes   70,548  9,250                   79,798
Income tax expense   16,722  2,199                   18,921
  

 

 

  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
Net income   53,826  7,051                   60,877
Net loss attributable to noncontrolling interests   (234                      (234
  

 

 

  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
Net income attributable to Patterson Companies, Inc.  $54,060 $7,051  $  $  $  $  $61,111
  

 

 

  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
Diluted earnings per share attributable to Patterson Companies, Inc.*  $0.56 $0.07  $  $  $  $  $0.63
  

 

 

  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
Operating income as a % of sales   4.7            5.3
Effective tax rate   23.7            23.7

 

*

May not sum due to rounding

 

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PATTERSON COMPANIES | 1031 Mendota Heights Road | Saint Paul, MN 55120   NEWS RELEASE

 

PATTERSON COMPANIES, INC.

RECONCILIATION OF GAAP TO NON-GAAP MEASURES

(Dollars in thousands, except per share amounts)

(Unaudited)

 

For the six months ended October 30, 2021

  GAAP  Deal
amortization
   Integration
and business
restructuring
expenses
   Legal
reserves
   Inventory
donation
charges
   Gains on
investments
  Non-GAAP 

Operating income

  $23,331 $19,155  $4,245  $36,000  $49,194  $ $131,925

Other income (expense), net

   85,338                  (87,827  (2,489
  

 

 

  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

  

 

 

 
Income before taxes   108,669  19,155   4,245   36,000   49,194   (87,827  129,436
Income tax expense   26,929  4,506   1,061   8,460   12,308   (22,396  30,868
  

 

 

  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

  

 

 

 

Net income

   81,740  14,649   3,184   27,540   36,886   (65,431  98,568

Net loss attributable to noncontrolling interests

   (586                     (586
  

 

 

  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

  

 

 

 

Net income attributable to Patterson Companies, Inc.

  $82,326 $14,649  $3,184  $27,540  $36,886  $(65,431 $99,154
  

 

 

  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

  

 

 

 
Diluted earnings per share attributable to Patterson Companies, Inc.*  $0.84 $0.15  $0.03  $0.28  $0.37  $(0.67 $1.01
  

 

 

  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

  

 

 

 

Operating income as a % of sales

   0.7           4.0

Effective tax rate

   24.8           23.8

For the six months ended October 24, 2020

  GAAP  Deal
amortization
   Integration
and business
restructuring
expenses
   Legal
reserves
   Inventory
donation
charges
   Gains on
investments
  Non-GAAP 

Operating income

  $111,578 $18,503  $  $  $  $ $130,081

Other income (expense), net

   (7,815                     (7,815
  

 

 

  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

  

 

 

 

Income before taxes

   103,763  18,503                  122,266

Income tax expense

   25,735  4,400                  30,135
  

 

 

  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

  

 

 

 

Net income

   78,028  14,103                  92,131

Net loss attributable to noncontrolling interests

   (439                     (439
  

 

 

  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

  

 

 

 

Net income attributable to Patterson Companies, Inc.

  $78,467 $14,103  $  $  $  $ $92,570
  

 

 

  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

  

 

 

 
Diluted earnings per share attributable to Patterson Companies, Inc.*  $0.82 $0.15  $  $  $  $ $0.96
  

 

 

  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

  

 

 

 

Operating income as a % of sales

   4.0           4.6

Effective tax rate

   24.8           24.6

 

*

May not sum due to rounding

 

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PATTERSON COMPANIES | 1031 Mendota Heights Road | Saint Paul, MN 55120   NEWS RELEASE

 

PATTERSON COMPANIES, INC.

FREE CASH FLOW

(In thousands)

(Unaudited)

 

   Six Months Ended 
   October 30,
2021
  October 24,
2020
 

Net cash used in operating activities

  $(539,014 $(423,004

Additions to property and equipment

   (15,503  (14,370

Collection of deferred purchase price receivables

           585,647          408,907
  

 

 

  

 

 

 

Free cash flow

  $31,130 $(28,467
  

 

 

  

 

 

 

 

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