PDCO
$30.04
Patterson Companies
$.10
.33%
Earnings Details
Quarter April 2021
Wednesday, June 23, 2021 7:00:00 AM
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Summary

Patterson Companies Misses

Patterson Companies (PDCO) reported Quarter April 2021 earnings of $0.38 per share on revenue of $1.6 billion. The consensus earnings estimate was $0.53 per share on revenue of $1.5 billion. The Earnings Whisper number was $0.60 per share. Revenue grew 21.4% on a year-over-year basis.

The company said it expects fiscal 2022 earnings of $1.90 to $2.05 per share. The current consensus earnings estimate is $2.13 per share for the year ending April 30, 2022.

Patterson Companies Inc is a distributors of dental products in North America. The Company operates in three business segments: dental supply, veterinary supply and rehabilitation supply.

Results
Reported Earnings
$0.38
Earnings Whisper
$0.60
Consensus Estimate
$0.53
Reported Revenue
$1.56 Bil
Revenue Estimate
$1.52 Bil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Patterson Companies Reports Fiscal 2021 Fourth-Quarter and Year End Operating Results

  • Fourth-quarter reported net sales increased 21.4 percent year-over-year to $1.56 billion, and internal sales increased 23.5 percent.
  • Fourth-quarter GAAP earnings of $0.30 per diluted share and adjusted earnings per share of $0.38 per diluted share.
  • Fiscal 2021 reported net sales increased 7.7 percent compared to fiscal 2020, and internal sales increased 8.2 percent.
  • Fiscal 2021 Dental segment internal sales increased 10.4 percent and fiscal 2021 Animal Health segment internal sales increased 7.7 percent.
  • Delivered fiscal 2021 GAAP earnings of $1.61 per diluted share and adjusted earnings1 of $1.91 per diluted share, an increase of 23.2 percent over fiscal 2020.
  • Issues fiscal 2022 GAAP earnings guidance of $1.61 to $1.76 per diluted share and adjusted earnings1 range of $1.90 to $2.05 per diluted share.

ST. PAUL, Minn.--(BUSINESS WIRE)--Patterson Companies, Inc. (Nasdaq: PDCO) today reported consolidated net sales of $1.56 billion (see attached Sales Summary for further details) in its fiscal fourth quarter ended April 24, 2021, an increase of 21.4 percent compared to the same period last year. Internal sales, which are adjusted for the effects of currency translation and changes in product selling relationships, increased 23.5 percent.

Reported net income attributable to Patterson Companies, Inc. for the fourth quarter of fiscal 2021 was $28.8 million, or $0.30 per diluted share, compared to a reported net loss attributable to Patterson Companies, Inc. of $608.6 million, or $6.44 per diluted share, in the fourth quarter of fiscal 2020. Adjusted net income1 attributable to Patterson Companies, Inc., which excludes deal amortization, integration and business restructuring expenses, an investment loss and goodwill impairment totaled $36.6 million for the fourth quarter of fiscal 2021, or $0.38 per diluted share, compared to $41.1 million in the same quarter of fiscal 2020, or $0.43 per diluted share. The reported net income and adjusted net income attributable to Patterson Companies, Inc. for the fourth quarter of fiscal 2021 included the after-tax impact of Covid-related inventory adjustments and a LIFO adjustment, both within our Dental segment, of approximately $18.2 million or $0.19 per diluted share.

“Patterson delivered strong performance during our 2021 fiscal year as we navigated the historic challenges posed by the Covid-19 pandemic to support our customers across our end markets,” said Mark Walchirk, President and CEO of Patterson Companies. “We grew our full-year adjusted EPS by 23 percent over the prior year through driving strong top line growth, operational excellence and disciplined expense management.”

“I am incredibly proud of our entire Patterson team for living our values and supporting our customers and business partners through the challenges of this past year. Looking ahead, we expect business conditions in our end markets to continue improving, and we remain focused on delivering top line growth and margin improvement. Additionally, our strengthened balance sheet provides us with the flexibility to consider strategic investments that will help accelerate growth and value creation for our shareholders.”

Patterson Dental

Reported net sales in our Dental segment for the fourth quarter of fiscal 2021, which represented approximately 40 percent of total company sales, were $616.0 million compared to $409.6 million in the fourth quarter of last year. Internal sales increased 49.1 percent compared to the fiscal 2020 fourth quarter, including 53.1 percent growth in consumables and 63.0 percent growth in equipment and software.

Patterson Animal Health

Reported net sales in our Animal Health segment for the fourth quarter of fiscal 2021, which comprised approximately 60 percent of the company’s total sales, were $939.3 million compared to $853.2 million in the fourth quarter of last year. Internal sales for the segment increased 13.8 percent from the fiscal 2020 fourth quarter with companion animal posting internal sales growth of 29.6 percent compared to the same period one year ago.

Full-Year Fiscal 2021 Results

Consolidated reported net sales for fiscal 2021 totaled $5.91 billion, a 7.7 percent year-over-year increase. Internal sales for fiscal 2021 increased 8.2 percent compared to fiscal 2020. Reported net income attributable to Patterson Companies, Inc. in fiscal 2021 was $156.0 million, or $1.61 per diluted share, compared to a net loss attributable to Patterson Companies, Inc, of $588.4 million, or $6.25 per diluted share in fiscal 2020. Adjusted net income1 attributable to Patterson Companies, Inc., which excludes deal amortization, integration and business restructuring expenses, legal reserve costs, accelerated debt-related costs, investment (gain) loss and goodwill impairment, totaled $185.0 million, or $1.91 per diluted share. This compares to $147.6 million, or $1.55 per diluted share in fiscal 2020, representing a 23.2 percent increase year-over-year.

Balance Sheet and Capital Allocation

During the full year of fiscal 2021, Patterson Companies used $730.5 million of cash from operating activities and collected deferred purchase price receivables of $834.0 million, netting $103.5 million in cash, compared to a total of $297.4 million during the full year of fiscal 2020. The previous year period contained a trade accounts receivable facility amount of $29.0 million. Free cash flow1 (see definition below and attached free cash flow table) generated during fiscal 2021 was $77.7 million, which was $148.9 million lower than fiscal 2020 primarily due to an increased level of working capital during fiscal 2021.

In the fourth quarter of fiscal 2021, Patterson Companies declared a quarterly cash dividend of $0.26 per share. For the full year of fiscal 2021, Patterson returned $75.2 million in cash dividends to shareholders.

Fiscal 2022 Guidance

  • Patterson Companies today announced 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 $1.61 to $1.76 per diluted share.
  • Non-GAAP adjusted earnings1 are expected to be in the range of $1.90 to $2.05 per diluted share.
  • Our non-GAAP adjusted earnings1 guidance excludes the after-tax impact of:
    • Deal amortization expenses of approximately $28.2 million ($0.29 per diluted share).

Our guidance is for current operations as well as completed or previously announced acquisitions and does not include the impact of potential future 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 will improve over those experienced in fiscal 2021 and not revert back to the pandemic environment of early fiscal 2021.

1Non-GAAP Financial Measures

The Reconciliation of GAAP to non-GAAP Measures table appearing behind the accompanying financial information is provided to adjust reported GAAP measures, namely operating income (loss), income (loss) before taxes, income tax expense (benefit), net income (loss), net income (loss) attributable to Patterson Companies, Inc. and diluted earnings (loss) per share attributable to Patterson Companies, Inc., for the impact of deal amortization, integration and business restructuring expenses, legal reserve costs, accelerated debt-related costs, discrete tax matters, investment (gain) loss and goodwill impairment, 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 less the one-time benefit from the initiation of our trade accounts receivables facilities plus the collection of deferred purchase price receivables.

In addition, the term “internal sales” used in this release represents net sales adjusted to exclude the impact of foreign currency and changes in product selling relationships. 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 changes in constant currency provides useful supplementary information to investors in light of significant fluctuations in currency rates.

Management believes that these non-GAAP measures may provide a helpful representation of the company's fourth-quarter and full year 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 2021 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 2021 fourth quarter conference call can be heard for one week at 800-585-8367 and by providing the Conference ID 2782998 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: the effects of the highly competitive dental and animal health supply markets in which we compete; the COVID-19 pandemic and measures taken in response thereto; general economic conditions, including political and economic uncertainty; risks from disruption to our information systems; our ability to comply with restrictive covenants in our amended credit agreement; our dependence on relationships with sales representatives, service technicians and customers; our ability to realize the long-term strategic benefits of our acquisition of Animal Health International; potential disruption of distribution capabilities, including service issues with third-party shippers; our ability to provide our sales force and customers with the latest technology; our dependence on suppliers for the manufacture and supply of the products we sell; material changes in our purchasing relationship with suppliers; the risk that private label sales could adversely affect our relationships with suppliers; our dependence on positive perceptions of Patterson’s reputation; risks inherent in acquiring other businesses; the risk that our acquired technology or developed technology might not be successful in maintaining or gaining customers; litigation risks, including new or unanticipated litigation developments and new or unanticipated regulatory investigations; changes in consumer preferences; regulatory restrictions; the cyclicality of the livestock market; the outbreak of an infectious disease within the production animal or companion animal population; pressure from animal rights groups; adverse changes in supplier rebates; fluctuations in quarterly financial results; volatility in the price of our stock; risks from the expansion of customer purchasing power; increases in over-the-counter sales of companion animal products; the risks inherent in international operations, including currency fluctuations; the effects of health care reform; failure to comply with regulatory requirements and data privacy laws; cyberattacks or other privacy or data security breaches; the risk of the products we sell becoming obsolete or containing undetected errors; volatility in the financial markets; our dependence on our senior management; our dependence on leadership development and succession planning; disruptions from our enterprise resource planning system; risks associated with shareholder activism; the risk of being required to record impairment charges; the risk of audit by tax authorities; risks associated with interest rate fluctuations; and the risk that our governing documents and Minnesota law may discourage takeovers and business combinations. 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, as amended and supplemented by our Quarterly Report on Form 10-Q for the quarterly period ended October 24, 2020, 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 24,
2021

 

April 25,
2020

 

April 24,
2021

 

April 25,
2020

 

 

 

 

 

 

 

 

Net sales

$

1,561,793

 

 

$

1,286,461

 

 

$

5,912,066

 

 

$

5,490,011

 

 

 

 

 

 

 

 

 

Gross profit

304,405

 

 

294,032

 

 

1,203,130

 

 

1,197,410

 

 

 

 

 

 

 

 

 

Operating expenses

267,057

 

 

233,440

 

 

992,523

 

 

1,094,474

 

 

 

 

 

 

 

 

 

Goodwill impairment

 

 

675,055

 

 

 

 

675,055

 

 

 

 

 

 

 

 

 

Operating income (loss)

37,348

 

 

(614,463)

 

 

210,607

 

 

(572,119)

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

Other income (expense), net

4,028

 

 

(10,994)

 

 

13,608

 

 

23,499

 

Interest expense

(5,680)

 

 

(7,467)

 

 

(24,284)

 

 

(41,787)

 

 

 

 

 

 

 

 

 

Income (loss) before taxes

35,696

 

 

(632,924)

 

 

199,931

 

 

(590,407)

 

 

 

 

 

 

 

 

 

Income tax expense (benefit)

7,182

 

 

(24,127)

 

 

44,822

 

 

(1,040)

 

 

 

 

 

 

 

 

 

Net income (loss)

28,514

 

 

(608,797)

 

 

155,109

 

 

(589,367)

 

Net loss attributable to noncontrolling interests

(241)

 

 

(211)

 

 

(872)

 

 

(921)

 

Net income (loss) attributable to Patterson Companies, Inc.

$

28,755

 

 

$

(608,586)

 

 

$

155,981

 

 

$

(588,446)

 

 

 

 

 

 

 

 

 

Earnings (loss) per share attributable to Patterson Companies, Inc.:

 

 

 

 

 

 

 

Basic

$

0.30

 

 

$

(6.44)

 

 

$

1.63

 

 

$

(6.25)

 

Diluted

$

0.30

 

 

$

(6.44)

 

 

$

1.61

 

 

$

(6.25)

 

 

 

 

 

 

 

 

 

Weighted average shares:

 

 

 

 

 

 

 

Basic

95,977

 

 

94,462

 

 

95,599

 

 

94,154

 

Diluted

97,393

 

 

94,462

 

 

96,664

 

 

94,154

 

 

 

 

 

 

 

 

 

Dividends declared per common share

$

0.26

 

 

$

0.26

 

 

$

1.04

 

 

$

1.04

 

 

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

 

 

April 24,
2021

 

April 25,
2020

 

 

 

 

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

143,244

 

 

$

77,944

 

Receivables, net

449,235

 

 

416,523

 

Inventory

736,778

 

 

812,194

 

Prepaid expenses and other current assets

286,672

 

 

236,104

 

Total current assets

1,615,929

 

 

1,542,765

 

Property and equipment, net

219,438

 

 

303,725

 

Operating lease right-of-use assets, net

77,217

 

 

79,021

 

Goodwill and identifiable intangibles, net

419,576

 

 

452,229

 

Long-term receivables, net and other

419,351

 

 

337,610

 

Total assets

$

2,751,511

 

 

$

2,715,350

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

609,264

 

 

$

862,093

 

Other accrued liabilities

294,400

 

 

182,099

 

Operating lease liabilities

32,252

 

 

30,706

 

Current maturities of long-term debt

100,750

 

 

 

Borrowings on revolving credit

53,000

 

 

 

Total current liabilities

1,089,666

 

 

1,074,898

 

Long-term debt

487,545

 

 

587,766

 

Non-current operating lease liabilities

48,318

 

 

49,854

 

Other non-current liabilities

161,311

 

 

166,388

 

Total liabilities

1,786,840

 

 

1,878,906

 

Stockholders' equity

964,671

 

 

836,444

 

Total liabilities and stockholders' equity

$

2,751,511

 

 

$

2,715,350

 

 

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

 

 

Twelve Months Ended

 

April 24,
2021

 

April 25,
2020

 

 

 

 

Operating activities:

 

 

 

Net income (loss)

$

155,109

 

 

$

(589,367)

 

Adjustments to reconcile net income (loss) to net cash used in operating activities:

 

 

 

Depreciation and amortization

78,896

 

 

82,182

 

Investment gain

 

 

(34,334)

 

Goodwill impairment

 

 

675,055

 

Non-cash employee compensation

30,488

 

 

37,354

 

Accelerated amortization of debt issuance costs on early retirement of debt

 

 

8,984

 

Non-cash losses (gains) and other, net

1,318

 

 

 

Change in assets and liabilities:

 

 

 

Receivables

(916,694)

 

 

(540,065)

 

Inventory

91,193

 

 

(59,258)

 

Accounts payable

(268,338)

 

 

219,613

 

Accrued liabilities

85,849

 

 

25,474

 

Long term receivables

(5,801)

 

 

(7,156)

 

Other changes from operating activities, net

17,461

 

 

(62,026)

 

Net cash used in operating activities

(730,519)

 

 

(243,544)

 

Investing activities:

 

 

 

Additions to property and equipment

(25,788)

 

 

(41,809)

 

Collection of deferred purchase price receivables

833,958

 

 

540,944

 

Other investing activities

2,493

 

 

 

Net cash provided by investing activities

810,663

 

 

499,135

 

Financing activities:

 

 

 

Dividends paid

(75,183)

 

 

(100,442)

 

Proceeds from issuance of long-term debt, net

 

 

296,700

 

Payments on long-term debt

 

 

(460,840)

 

Draw on revolving credit

53,000

 

 

 

Other financing activities

(462)

 

 

(6,647)

 

Net cash used in financing activities

(22,645)

 

 

(271,229)

 

Effect of exchange rate changes on cash

7,801

 

 

(2,064)

 

Net change in cash and cash equivalents

65,300

 

 

(17,702)

 

Cash and cash equivalents at beginning of period

77,944

 

 

95,646

 

Cash and cash equivalents at end of period

$

143,244

 

 

$

77,944

 

 

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

 

 

April 24,
2021

 

April 25,
20201

 

Total
Sales
Growth

 

Foreign
Exchange
Impact

 

Other2

 

Internal
Sales
Growth

Three Months Ended

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated net sales

 

 

 

 

 

 

 

 

 

 

 

Consumable

$

1,262,772

 

 

$

1,061,273

 

 

19.0

%

 

1.6

%

 

(4.3)

%

 

21.7

%

Equipment and software

206,190

 

 

127,738

 

 

61.4

 

 

1.6

 

 

 

 

59.8

 

Value-added services and other

92,831

 

 

97,450

 

 

(4.7)

 

 

0.6

 

 

 

 

(5.3)

 

Total

$

1,561,793

 

 

$

1,286,461

 

 

21.4

%

 

1.5

%

 

(3.6)

%

 

23.5

%

 

 

 

 

 

 

 

 

 

 

 

 

Dental

 

 

 

 

 

 

 

 

 

 

 

Consumable

$

357,248

 

 

$

231,551

 

 

54.3

%

 

1.2

%

 

%

 

53.1

%

Equipment and software

182,938

 

 

110,927

 

 

64.9

 

 

1.9

 

 

 

 

63.0

 

Value-added services and other

75,846

 

 

67,116

 

 

13.0

 

 

0.5

 

 

 

 

12.5

 

Total

$

616,032

 

 

$

409,594

 

 

50.4

%

 

1.3

%

 

%

 

49.1

%

 

 

 

 

 

 

 

 

 

 

 

 

Animal Health

 

 

 

 

 

 

 

 

 

 

 

Consumable

$

905,524

 

 

$

829,722

 

 

9.1

%

 

1.7

%

 

(5.5)

%

 

12.9

%

Equipment and software

23,252

 

 

16,811

 

 

38.3

 

 

 

 

 

 

38.3

 

Value-added services and other

10,541

 

 

6,708

 

 

57.1

 

 

3.4

 

 

 

 

53.7

 

Total

$

939,317

 

 

$

853,241

 

 

10.1

%

 

1.7

%

 

(5.4)

%

 

13.8

%

 

 

 

 

 

 

 

 

 

 

 

 

Corporate

 

 

 

 

 

 

 

 

 

 

 

Value-added services and other

$

6,444

 

 

$

23,626

 

 

(72.7)

%

 

%

 

%

 

(72.7)

%

Total

$

6,444

 

 

$

23,626

 

 

(72.7)

%

 

%

 

%

 

(72.7)

%

 

 

 

 

 

 

 

 

 

 

 

 

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 twelve months ended April 24, 2021.

 

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

 

 

April 24,
2021

 

April 25,
20201

 

Total
Sales
Growth

 

Foreign
Exchange
Impact

 

Other2

 

 

Internal
Sales
Growth

Twelve Months Ended

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated net sales

 

 

 

 

 

 

 

 

 

 

 

Consumable

$

4,748,441

 

 

$

4,374,829

 

 

8.5

%

 

0.6

%

 

(1.3)

%

 

9.2

%

Equipment and software

822,267

 

 

749,390

 

 

9.7

 

 

0.3

 

 

 

 

9.4

 

Value-added services and other

341,358

 

 

365,792

 

 

(6.7)

 

 

0.2

 

 

 

 

(6.9)

 

Total

$

5,912,066

 

 

$

5,490,011

 

 

7.7

%

 

0.5

%

 

(1.0)

%

 

8.2

%

 

 

 

 

 

 

 

 

 

 

 

 

Dental

 

 

 

 

 

 

 

 

 

 

 

Consumable

$

1,314,261

 

 

$

1,141,189

 

 

15.2

%

 

0.3

%

 

%

 

14.9

%

Equipment and software

731,132

 

 

677,677

 

 

7.9

 

 

0.3

 

 

 

 

7.6

 

Value-added services and other

281,628

 

 

283,056

 

 

(0.5)

 

 

0.1

 

 

 

 

(0.6)

 

Total

$

2,327,021

 

 

$

2,101,922

 

 

10.7

%

 

0.3

%

 

%

 

10.4

%

 

 

 

 

 

 

 

 

 

 

 

 

Animal Health

 

 

 

 

 

 

 

 

 

 

 

Consumable

$

3,434,180

 

 

$

3,233,640

 

 

6.2

%

 

0.7

%

 

(1.7)

%

 

7.2

%

Equipment and software

91,135

 

 

71,713

 

 

27.1

 

 

 

 

 

 

27.1

 

Value-added services and other

34,679

 

 

30,900

 

 

12.2

 

 

1.5

 

 

 

 

10.7

 

Total

$

3,559,994

 

 

$

3,336,253

 

 

6.7

%

 

0.7

%

 

(1.7)

%

 

7.7

%

 

 

 

 

 

 

 

 

 

 

 

 

Corporate

 

 

 

 

 

 

 

 

 

 

 

Value-added services and other

$

25,051

 

 

$

51,836

 

 

(51.7)

%

 

%

 

%

 

(51.7)

%

Total

$

25,051

 

 

$

51,836

 

 

(51.7)

%

 

%

 

%

 

(51.7)

%

 

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 twelve months ended April 24, 2021.

 

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

 

 

Three Months Ended

 

Twelve Months Ended

 

April 24,
2021

 

April 25,
2020

 

April 24,
2021

 

April 25,
2020

 

 

 

 

 

 

 

 

Operating income (loss)

 

 

 

 

 

 

 

Dental

$

29,227

 

 

$

32,846

 

 

$

201,244

 

 

$

168,304

 

Animal Health

32,518

 

 

(645,979)

 

 

88,123

 

 

(594,743)

 

Corporate

(24,397)

 

 

(1,330)

 

 

(78,760)

 

 

(145,680)

 

Total

$

37,348

 

 

$

(614,463)

 

 

$

210,607

 

 

$

(572,119)

 

 

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

 

For the three months ended April 24, 2021

 

GAAP

 

Deal
amortization

 

Integration
and
business
restructuring
expenses

 

Legal
reserve
costs

 

Accelerated
debt-related
costs

 

Investment
(gain) loss

 

Goodwill
impairment

 

Non-GAAP

Operating income (loss)

 

$

37,348

 

 

$

9,261

 

 

$

1,090

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

47,699

 

Other expense, net

 

(1,652)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,652)

 

Income (loss) before taxes

 

35,696

 

 

9,261

 

 

1,090

 

 

 

 

 

 

 

 

 

 

46,047

 

Income tax expense (benefit)

 

7,182

 

 

2,196

 

 

273

 

 

 

 

 

 

 

 

 

 

9,651

 

Net income (loss)

 

28,514

 

 

7,065

 

 

817

 

 

 

 

 

 

 

 

 

 

36,396

 

Net loss attributable to noncontrolling interests

 

(241)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(241)

 

Net income (loss) attributable to Patterson Companies, Inc.

 

$

28,755

 

 

$

7,065

 

 

$

817

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

36,637

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares*

 

97,393

 

 

 

 

 

 

 

 

 

 

 

 

 

 

97,393

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

0.30

 

 

$

0.07

 

 

$

0.01

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

0.38

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss) as a % of sales

 

2.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

3.1

%

Effective tax rate

 

20.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

21.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months ended April 25, 2020

 

GAAP

 

Deal
amortization

 

Integration
and
business
restructuring
expenses

 

Legal
reserve
costs

 

Accelerated
debt-related
costs

 

Investment
(gain) loss

 

Goodwill
impairment

 

Non-GAAP

Operating income (loss)

 

$

(614,463)

 

 

$

9,252

 

 

$

2,000

 

 

$

 

 

$

 

 

$

 

 

$

675,055

 

 

$

71,844

 

Other expense, net

 

(18,461)

 

 

 

 

 

 

 

 

 

 

623

 

 

 

 

(17,838)

 

Income (loss) before taxes

 

(632,924)

 

 

9,252

 

 

2,000

 

 

 

 

 

 

623

 

 

675,055

 

 

54,006

 

Income tax expense (benefit)

 

(24,127)

 

 

2,201

 

 

500

 

 

 

 

 

 

156

 

 

34,428

 

 

13,158

 

Net income (loss)

 

(608,797)

 

 

7,051

 

 

1,500

 

 

 

 

 

 

467

 

 

640,627

 

 

40,848

 

Net loss attributable to noncontrolling interests

 

(211)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(211)

 

Net income (loss) attributable to Patterson Companies, Inc.

 

$

(608,586)

 

 

$

7,051

 

 

$

1,500

 

 

$

 

 

$

 

 

$

467

 

 

$

640,627

 

 

$

41,059

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares*

 

94,462

 

 

 

 

 

 

 

 

 

 

 

 

 

 

95,394

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

(6.44)

 

 

$

0.07

 

 

$

0.02

 

 

$

 

 

$

 

 

$

 

 

$

6.72

 

 

$

0.43

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss) as a % of sales

 

(47.8)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

5.6

%

Effective tax rate

 

3.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

24.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

* When we present GAAP or non-GAAP net loss attributable to Patterson Companies, Inc., incremental shares related to dilutive securities are not included in the diluted EPS calculation because they would have an anti-dilutive impact on EPS. When we present GAAP or non-GAAP net income attributable to Patterson Companies, Inc., incremental shares related to dilutive securities are included in the diluted EPS calculation.

** May not sum due to rounding and difference in weighted average shares used to calculate diluted earnings (loss) per share.

 

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

 
 

For the twelve months ended April 24, 2021

 

GAAP

 

Deal
amortization

 

Integration
and
business
restructuring
expenses

 

Legal
reserve
costs

 

Accelerated
debt-related
costs

 

Investment
(gain) loss

 

Goodwill
impairment

 

Non-GAAP

Operating income (loss)

 

$

210,607

 

 

$

37,002

 

 

$

1,090

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

248,699

 

Other expense, net

 

(10,676)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(10,676)

 

Income (loss) before taxes

 

199,931

 

 

37,002

 

 

1,090

 

 

 

 

 

 

 

 

 

 

238,023

 

Income tax expense (benefit)

 

44,822

 

 

8,792

 

 

273

 

 

 

 

 

 

 

 

 

 

53,887

 

Net income (loss)

 

155,109

 

 

28,210

 

 

817

 

 

 

 

 

 

 

 

 

 

184,136

 

Net loss attributable to noncontrolling interests

 

(872)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(872)

 

Net income (loss) attributable to Patterson Companies, Inc.

 

$

155,981

 

 

$

28,210

 

 

$

817

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

185,008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares*

 

96,664

 

 

 

 

 

 

 

 

 

 

 

 

 

 

96,664

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

1.61

 

 

$

0.29

 

 

$

0.01

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

1.91

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss) as a % of sales

 

3.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

4.2

%

Effective tax rate

 

22.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

22.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the twelve months ended April 25, 2020

 

GAAP

 

Deal
amortization

 

Integration
and
business
restructuring
expenses

 

Legal
reserve
costs ‡

 

Accelerated
debt-related
costs

 

Investment
(gain) loss

 

Goodwill
impairment

 

Non-GAAP

Operating income (loss)

 

$

(572,119)

 

 

$

37,010

 

 

$

15,461

 

 

$

81,254

 

 

$

 

 

$

 

 

$

675,055

 

 

$

236,661

 

Other expense, net

 

(18,288)

 

 

 

 

 

 

 

 

9,943

 

 

(33,711)

 

 

 

 

(42,056)

 

Income (loss) before taxes

 

(590,407)

 

 

37,010

 

 

15,461

 

 

81,254

 

 

9,943

 

 

(33,711)

 

 

675,055

 

 

194,605

 

Income tax expense (benefit)

 

(1,040)

 

 

8,802

 

 

3,870

 

 

7,113

 

 

2,486

 

 

(7,728)

 

 

34,428

 

 

47,931

 

Net income (loss)

 

(589,367)

 

 

28,208

 

 

11,591

 

 

74,141

 

 

7,457

 

 

(25,983)

 

 

640,627

 

 

146,674

 

Net loss attributable to noncontrolling interests

 

(921)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(921)

 

Net income (loss) attributable to Patterson Companies, Inc.

 

$

(588,446)

 

 

$

28,208

 

 

$

11,591

 

 

$

74,141

 

 

$

7,457

 

 

$

(25,983)

 

 

$

640,627

 

 

$

147,595

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares*

 

94,154

 

 

 

 

 

 

 

 

 

 

 

 

 

 

95,059

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

(6.25)

 

 

$

0.30

 

 

$

0.12

 

 

$

0.78

 

 

$

0.08

 

 

$

(0.27)

 

 

$

6.74

 

 

$

1.55

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss) as a % of sales

 

(10.4)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

4.3

%

Effective tax rate

 

0.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

24.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

‡ Includes costs and expenses incurred in the first quarter of fiscal 2020 of $17,666 related to the settlement of litigation with SourceOne Dental, Inc., costs and expenses incurred in the second quarter of fiscal 2020 of $58,300 related to the then-probable settlement of litigation with the U.S. Attorney's Office for the Western District of Virginia and $5,288 related to other legal proceedings.

* When we present GAAP or non-GAAP net loss attributable to Patterson Companies, Inc., incremental shares related to dilutive securities are not included in the diluted EPS calculation because they would have an anti-dilutive impact on EPS. When we present GAAP or non-GAAP net income attributable to Patterson Companies, Inc., incremental shares related to dilutive securities are included in the diluted EPS calculation.

** May not sum due to rounding and difference in weighted average shares used to calculate diluted earnings (loss) per share.

 

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

 

 

Twelve Months Ended

 

April 24,
2021

 

April 25,
2020

 

 

 

 

Net cash used in operating activities

$

(730,519)

 

 

$

(243,544)

 

Additions to property and equipment

(25,788)

 

 

(41,809)

 

Collection of deferred purchase price receivables

833,958

 

 

540,944

 

Impact of trade account receivables facility

 

 

(29,000)

 

Free cash flow

$

77,651

 

 

$

226,591

 

 

INVESTOR CONTACT:
John M. Wright, Investor Relations

Patterson Companies Inc.
651.686.1364
investor.relations@pattersoncompanies.com

MEDIA CONTACT:
Patterson Corporate Communications

Patterson Companies Inc.
651.905.3349
corporate.communications@pattersoncompanies.com

pattersoncompanies.com

Source: Patterson Companies Inc.