PDCO
$29.74
Patterson Companies
$.12
.41%
Earnings Details
Quarter April 2022
Wednesday, June 29, 2022 7:00:00 AM
Tweet Share Watch
Summary

Patterson Companies Beats

Patterson Companies (PDCO) reported Quarter April 2022 earnings of $0.71 per share on revenue of $1.6 billion. The consensus earnings estimate was $0.56 per share on revenue of $1.6 billion. The Earnings Whisper number was $0.61 per share. Revenue grew 4.9% on a year-over-year basis.

The company said it expects fiscal 2023 earnings of $2.25 to $2.35 per share. The current consensus earnings estimate is $2.25 per share for the year ending April 30, 2023.

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
$0.71
Earnings Whisper
$0.61
Consensus Estimate
$0.56
Reported Revenue
$1.64 Bil
Revenue Estimate
$1.59 Bil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Patterson Companies Reports Fiscal 2022 Fourth Quarter and Year End Operating Results

  • Fourth quarter reported net sales increased 4.9 percent; fiscal 2022 reported net sales of $6.5 billion increased 9.9 percent.
  • Drove adjusted operating margin expansion during the fourth quarter and fiscal 2022 across both Dental and Animal Health segments.
  • Returned $136.1 million to shareholders in fiscal 2022 through dividends and share repurchases.
  • Achieved fourth quarter GAAP earnings of $0.65 per diluted share; delivered adjusted earnings1 of $0.71 per diluted share.
  • Achieved fiscal 2022 GAAP earnings of $2.06 per diluted share; delivered adjusted earnings1 of $2.27 per diluted share.
  • Issues fiscal 2023 GAAP earnings guidance of $1.96 to $2.06 per diluted share and adjusted earnings1 range of $2.25 to $2.35 per diluted share.

ST. PAUL, Minn.--(BUSINESS WIRE)--Patterson Companies, Inc. (Nasdaq: PDCO) today reported consolidated net sales of $1.64 billion (see attached Sales Summary for further details) in its fiscal fourth quarter ended April 30, 2022, an increase of 4.9 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 5.1 percent over the prior year.

Reported net income attributable to Patterson Companies, Inc. for the fourth quarter of fiscal 2022 was $63.9 million, or $0.65 per diluted share, compared to $28.8 million, or $0.30 per diluted share, in the fourth quarter of fiscal 2021. Adjusted net income1 attributable to Patterson Companies, Inc., which excludes deal amortization, integration and business restructuring expenses and gains on investments, totaled $70.4 million for the fourth quarter of fiscal 2022, or $0.71 per diluted share, compared to $36.6 million in the same quarter of fiscal 2021, or $0.38 per diluted share, an 86.8 percent increase year-over-year. 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. The year-over-year increase in reported and adjusted net income attributable to Patterson Companies, Inc. in the fourth quarter of fiscal 2022 is also due to strong sales growth and margin expansion across both business segments compared to the prior year period.

“Patterson delivered an excellent fourth quarter, culminating a year in which we delivered both top and bottom line growth that exceeded our expectations,” said Mark Walchirk, President and CEO of Patterson Companies. “During fiscal 2022, we achieved $6.5 billion in sales, delivered on our commitment to achieve year-over-year adjusted operating margin improvement, returned cash to shareholders as part of our balanced capital allocation strategy and drove full-year adjusted EPS growth of 19 percent over the prior year.

“Our strong performance during fiscal 2022 and over the past several years reflects our team’s continued focus and execution, which has enabled Patterson to support our customers and generate value for shareholders. While we anticipate the current macro environment will have a moderate impact on our end markets, our proven team, compelling value proposition and strong competitive position give us confidence as we enter fiscal 2023. Our fiscal 2023 guidance anticipates delivering year-over-year revenue growth and operating margin expansion.”

Patterson Dental
Reported net sales in our Dental segment for the fourth quarter of fiscal 2022 were $636.4 million. Internal sales increased 3.4 percent compared to the fiscal 2021 fourth quarter. Internal sales of consumables declined 0.8 percent year-over-year primarily due to the continued moderation of infection control products compared to the pandemic-related performance in the year-ago period. Excluding infection control products, internal sales of consumables increased 2.9 percent over the prior year period. Internal sales of equipment increased 14.3 percent year-over-year driven by strong performance in digital technology and CAD/CAM products and positive growth in the core equipment category. Internal sales of value-added services decreased 3.2 percent year-over-year compared to the prior year period.

Patterson Animal Health
Reported net sales in our Animal Health segment for the fourth quarter of fiscal 2022 were $1.0 billion. Internal sales growth of 7.6 percent was driven by mid-single digit growth in companion animal and double-digit growth in production animal. Within the Animal Health segment, internal sales of consumables grew 7.4 percent, equipment and software increased 22.0 percent and value-added services decreased 7.2 percent over the prior year period.

Balance Sheet and Capital Allocation
During fiscal 2022, Patterson Companies used $981.0 million of cash from operating activities and collected deferred purchase price receivables of $1,213.5 million, generating $232.5 million in cash, compared to generating $103.4 million during fiscal 2021. Free cash flow1 (see definition below and attached free cash flow table) during fiscal 2022 improved by $116.5 million compared to the fiscal 2021 period due to a decreased level of working capital during fiscal 2022.

In the fourth quarter of fiscal 2022, Patterson Companies declared a quarterly cash dividend of $0.26 per share and returned $25.4 million in cash dividends to shareholders. Also, under an existing repurchase authorization, the company repurchased approximately 1.0 million shares. At of the end of fiscal 2022, Patterson had approximately $465 million of share repurchase authority remaining on its current share repurchase authorization. During fiscal 2022, Patterson Companies returned $136.1 million to shareholders in the form of cash dividends and share repurchases.

Year-to-Date Results
Consolidated reported net sales for fiscal 2022 totaled $6.5 billion, a 9.9 percent year-over-year increase. Sales in fiscal 2022 reflected an extra week of sales results in the fiscal first quarter versus the prior year. Internal sales, which are adjusted 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 9.1 percent compared to fiscal 2021. During fiscal 2022, Dental segment internal sales increased 5.8 percent, including 5.8 percent growth in consumables and 7.6 percent growth in equipment and software. In fiscal 2022, Animal Health segment internal sales increased 12.1 percent, including 11.6 percent growth in consumables and 29.9 percent growth in equipment and software.

Reported net income attributable to Patterson Companies, Inc. in fiscal 2022 was $203.2 million, or $2.06 per diluted share, compared to a $156.0 million, or $1.61 per diluted share in fiscal 2021. Adjusted net income1 attributable to Patterson Companies, Inc. in fiscal 2022, which excludes gains on investments, inventory donation charges, deal amortization, legal reserves and integration and business restructuring expenses totaled $223.7 million, or $2.27 per diluted share, compared to $185.0 million, or $1.91 per diluted share, in the prior fiscal year. Patterson estimates the extra selling week in fiscal 2022 contributed approximately $0.04 to adjusted earnings per diluted share compared to the prior year.

Fiscal 2023 Guidance
Patterson Companies today initiated its fiscal 2023 earnings guidance, which is provided on both a GAAP and non-GAAP adjusted1 basis:

  • GAAP earnings are expected to be in the range of $1.96 to $2.06 per diluted share.
  • Non-GAAP adjusted earnings1 are expected to be in the range of $2.25 to $2.35 per diluted share.
  • Our non-GAAP adjusted earnings1 guidance excludes the after-tax impact of:
    • Deal amortization expenses of approximately $28.5 million ($0.29 per diluted share).

Our guidance reflects the strength of our business and competitive positioning, as well as our expectations for the North American and international end markets in which we operate, which we expect to be affected by inflationary trends, higher interest rates and a potential slow-down in the broader economy. Beyond macroeconomic and geopolitical uncertainty, our guidance further assumes that there are no material adverse developments associated with the pandemic.

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, other income (expense), net income before taxes, income tax expense, net income, net income attributable to Patterson Companies, Inc. and diluted earnings per share attributable to 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 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, 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 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 fluctuations in currency rates.

Management believes that these non-GAAP measures may provide a helpful representation of the company's fourth quarter 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 2022 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 2022 fourth quarter conference call can be heard for one week at 1-800-770-2030 and by providing the Conference ID 71954 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 COVID-19 pandemic and measures taken in response thereto; uncertain macro-economic conditions, including inflationary pressures; 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-party shippers; 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 or other purchasing incentives; 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 and disposing of assets or other businesses and the risks inherent in integrating acquired businesses; our ability to comply with restrictive covenants in our credit agreement; turnover or loss of key personnel or highly skilled employees; the risk that our governing documents and Minnesota law may discourage takeovers and business combinations; risks related to climate change; 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 cyclical livestock market, and other factors outside our control, and the risks of the companion animal business, including the possibility of disease adversely affecting the pet population; risks from the formation or expansion of GPOs, provider networks and buying groups that may shift purchasing decisions and place us at a competitive disadvantage; increases in over-the-counter sales and e-commerce options for companion animal products or sales of companion animal products from non-veterinarian sources; 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 health care fraud or other laws and regulations; litigation risks, 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 currency fluctuations; and risks associated with information systems, software products and cyber-security attacks.

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 30,
2022

 

April 24,
2021

 

April 30,
2022

 

April 24,
2021

 

 

 

 

 

 

 

 

 

Net sales

 

$

1,638,772

 

 

$

1,561,793

 

 

$

6,499,405

 

 

$

5,912,066

 

Gross profit

 

 

348,239

 

 

 

304,405

 

 

 

1,289,087

 

 

 

1,203,130

 

Operating expenses

 

 

275,401

 

 

 

267,057

 

 

 

1,132,085

 

 

 

992,523

 

Operating income

 

 

72,838

 

 

 

37,348

 

 

 

157,002

 

 

 

210,607

 

Other income (expense):

 

 

 

 

 

 

 

 

Gains on investments

 

 

890

 

 

 

 

 

 

101,809

 

 

 

 

Other income, net

 

 

13,318

 

 

 

4,028

 

 

 

27,731

 

 

 

13,608

 

Interest expense

 

 

(4,693

)

 

 

(5,680

)

 

 

(20,288

)

 

 

(24,284

)

Income before taxes

 

 

82,353

 

 

 

35,696

 

 

 

266,254

 

 

 

199,931

 

Income tax expense

 

 

18,954

 

 

 

7,182

 

 

 

64,540

 

 

 

44,822

 

Net income

 

 

63,399

 

 

 

28,514

 

 

 

201,714

 

 

 

155,109

 

Net loss attributable to noncontrolling interests

 

 

(479

)

 

 

(241

)

 

 

(1,496

)

 

 

(872

)

Net income attributable to Patterson Companies, Inc.

 

$

63,878

 

 

$

28,755

 

 

$

203,210

 

 

$

155,981

 

Earnings per share attributable to Patterson Companies, Inc.:

 

 

 

 

 

 

 

 

Basic

 

$

0.66

 

 

$

0.30

 

 

$

2.09

 

 

$

1.63

 

Diluted

 

$

0.65

 

 

$

0.30

 

 

$

2.06

 

 

$

1.61

 

Weighted average shares:

 

 

 

 

 

 

 

 

Basic

 

 

97,476

 

 

 

95,977

 

 

 

97,277

 

 

 

95,599

 

Diluted

 

 

98,680

 

 

 

97,393

 

 

 

98,514

 

 

 

96,664

 

Dividends declared per common share

 

$

0.26

 

 

$

0.26

 

 

$

1.04

 

 

$

1.04

 

PATTERSON COMPANIES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)

 

 

 

April 30,
2022

 

April 24,
2021

 

 

 

 

 

ASSETS

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

142,014

 

$

143,244

Receivables, net

 

 

447,162

 

 

449,235

Inventory

 

 

785,604

 

 

736,778

Prepaid expenses and other current assets

 

 

304,242

 

 

286,672

Total current assets

 

 

1,679,022

 

 

1,615,929

Property and equipment, net

 

 

213,140

 

 

219,438

Operating lease right-of-use assets, net

 

 

70,722

 

 

77,217

Goodwill and identifiable intangibles, net

 

 

393,244

 

 

419,576

Investments

 

 

139,182

 

 

105,522

Long-term receivables, net and other

 

 

246,320

 

 

313,829

Total assets

 

$

2,741,630

 

$

2,751,511

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable

 

$

681,321

 

$

609,264

Other accrued liabilities

 

 

276,000

 

 

294,400

Operating lease liabilities

 

 

29,348

 

 

32,252

Current maturities of long-term debt

 

 

 

 

100,750

Borrowings on revolving credit

 

 

29,000

 

 

53,000

Total current liabilities

 

 

1,015,669

 

 

1,089,666

Long-term debt

 

 

488,554

 

 

487,545

Non-current operating lease liabilities

 

 

43,332

 

 

48,318

Other non-current liabilities

 

 

151,440

 

 

161,311

Total liabilities

 

 

1,698,995

 

 

1,786,840

Stockholders' equity

 

 

1,042,635

 

 

964,671

Total liabilities and stockholders' equity

 

$

2,741,630

 

$

2,751,511

PATTERSON COMPANIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

 

 

 

Twelve Months Ended

 

 

April 30,
2022

 

April 24,
2021

 

 

 

 

 

Operating activities:

 

 

 

 

Net income

 

$

201,714

 

 

$

155,109

 

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

 

 

 

 

Depreciation and amortization

 

 

81,992

 

 

 

78,896

 

Gains on investments

 

 

(101,809

)

 

 

 

Non-cash employee compensation

 

 

23,805

 

 

 

30,488

 

Non-cash (gains) losses and other, net

 

 

(1,431

)

 

 

1,318

 

Change in assets and liabilities:

 

 

 

 

Receivables

 

 

(1,144,833

)

 

 

(916,694

)

Inventory

 

 

(53,871

)

 

 

91,193

 

Accounts payable

 

 

80,904

 

 

 

(268,338

)

Accrued liabilities

 

 

(27,630

)

 

 

85,849

 

Other changes from operating activities, net

 

 

(39,835

)

 

 

11,660

 

Net cash used in operating activities

 

 

(980,994

)

 

 

(730,519

)

Investing activities:

 

 

 

 

Additions to property and equipment

 

 

(38,308

)

 

 

(25,788

)

Collection of deferred purchase price receivables

 

 

1,213,497

 

 

 

833,958

 

Acquisitions, net of cash acquired

 

 

(19,793

)

 

 

 

Sale of investments

 

 

75,942

 

 

 

396

 

Other investing activities

 

 

7,690

 

 

 

2,097

 

Net cash provided by investing activities

 

 

1,239,028

 

 

 

810,663

 

Financing activities:

 

 

 

 

Dividends paid

 

 

(101,111

)

 

 

(75,183

)

Repurchases of common stock

 

 

(35,000

)

 

 

 

Payments on long-term debt

 

 

(100,750

)

 

 

 

(Payment) draw on revolving credit

 

 

(24,000

)

 

 

53,000

 

Other financing activities

 

 

7,627

 

 

 

(462

)

Net cash used in financing activities

 

 

(253,234

)

 

 

(22,645

)

Effect of exchange rate changes on cash

 

 

(6,030

)

 

 

7,801

 

Net change in cash and cash equivalents

 

 

(1,230

)

 

 

65,300

 

Cash and cash equivalents at beginning of period

 

 

143,244

 

 

 

77,944

 

Cash and cash equivalents at end of period

 

$

142,014

 

 

$

143,244

 

PATTERSON COMPANIES, INC.

SALES SUMMARY

(Dollars in thousands)

(Unaudited)

  

 

 

April 30,
2022

 

April 24,
20211

 

Total
Sales
Growth

 

Foreign
Exchange
Impact

 

53rd
Week

 

Other2

 

Internal
Sales
Growth

Three Months Ended

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated net sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumable

 

$

1,324,427

 

 

$

1,262,747

 

4.9

%

 

(0.6

)%

 

%

 

0.4

%

 

5.1

%

Equipment and software

 

 

236,713

 

 

 

205,777

 

15.0

 

 

(0.1

)

 

 

 

 

 

15.1

 

Value-added services and other

 

 

77,632

 

 

 

93,269

 

(16.8

)

 

(0.4

)

 

 

 

(0.1

)

 

(16.3

)

Total

 

$

1,638,772

 

 

$

1,561,793

 

4.9

%

 

(0.6

)%

 

%

 

0.4

%

 

5.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dental

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumable

 

$

354,255

 

 

$

357,223

 

(0.8

)%

 

%

 

%

 

%

 

(0.8

)%

Equipment and software

 

 

208,357

 

 

 

182,525

 

14.2

 

 

(0.1

)

 

 

 

 

 

14.3

 

Value-added services and other

 

 

73,805

 

 

 

76,284

 

(3.2

)

 

 

 

 

 

 

 

(3.2

)

Total

 

$

636,417

 

 

$

616,032

 

3.3

%

 

(0.1

)%

 

%

 

%

 

3.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Animal Health

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumable

 

$

970,172

 

 

$

905,524

 

7.1

%

 

(0.9

)%

 

%

 

0.6

%

 

7.4

%

Equipment and software

 

 

28,356

 

 

 

23,252

 

22.0

 

 

 

 

 

 

 

 

22.0

 

Value-added services and other

 

 

9,315

 

 

 

10,541

 

(11.6

)

 

(3.7

)

 

 

 

(0.7

)

 

(7.2

)

Total

 

$

1,007,843

 

 

$

939,317

 

7.3

%

 

(0.9

)%

 

%

 

0.6

%

 

7.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Value-added services and other

 

$

(5,488

)

 

$

6,444

 

(185.2

)%

 

%

 

%

 

%

 

(185.2

)%

Total

 

$

(5,488

)

 

$

6,444

 

(185.2

)%

 

%

 

%

 

%

 

(185.2

)%

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 months ended April 30, 2022. Other represents the impact of this change in revenue recognition, as well as the impact of an acquisition on sales during the three months ended April 30, 2022.

PATTERSON COMPANIES, INC.

SALES SUMMARY

(Dollars in thousands)

(Unaudited)

 

 

 

April 30,
2022

 

April 24,
20211

 

Total
Sales
Growth

 

Foreign
Exchange
Impact

 

53rd
Week

 

Other2

 

Internal
Sales
Growth

Twelve Months Ended

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated net sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumable

 

$

5,248,040

 

$

4,748,416

 

10.5

%

 

0.8

%

 

2.0

%

 

(2.2

)%

 

9.9

%

Equipment and software

 

 

920,424

 

 

822,063

 

12.0

 

 

0.5

 

 

1.5

 

 

 

 

10.0

 

Value-added services and other

 

 

330,941

 

 

341,587

 

(3.1

)

 

0.5

 

 

1.4

 

 

(0.1

)

 

(4.9

)

Total

 

$

6,499,405

 

$

5,912,066

 

9.9

%

 

0.7

%

 

1.9

%

 

(1.8

)%

 

9.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dental

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumable

 

$

1,424,677

 

$

1,314,236

 

8.4

%

 

0.5

%

 

2.1

%

 

%

 

5.8

%

Equipment and software

 

 

800,144

 

 

730,928

 

9.5

 

 

0.5

 

 

1.4

 

 

 

 

7.6

 

Value-added services and other

 

 

291,311

 

 

281,857

 

3.4

 

 

0.2

 

 

1.4

 

 

 

 

1.8

 

Total

 

$

2,516,132

 

$

2,327,021

 

8.1

%

 

0.5

%

 

1.8

%

 

%

 

5.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Animal Health

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumable

 

$

3,823,363

 

$

3,434,180

 

11.3

%

 

0.8

%

 

2.0

%

 

(3.1

)%

 

11.6

%

Equipment and software

 

 

120,280

 

 

91,135

 

32.0

 

 

 

 

2.1

 

 

 

 

29.9

 

Value-added services and other

 

 

39,231

 

 

34,679

 

13.1

 

 

2.5

 

 

2.4

 

 

(1.1

)

 

9.3

 

Total

 

$

3,982,874

 

$

3,559,994

 

11.9

%

 

0.8

%

 

2.0

%

 

(3.0

)%

 

12.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Value-added services and other

 

$

399

 

$

25,051

 

(98.4

)%

 

%

 

%

 

%

 

(98.4

)%

Total

 

$

399

 

$

25,051

 

(98.4

)%

 

%

 

%

 

%

 

(98.4

)%

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 twelve months ended April 30, 2022. Other represents the impact of this change in revenue recognition, as well as the impact of an acquisition on sales during the twelve months ended April 30, 2022.

PATTERSON COMPANIES, INC.

OPERATING INCOME BY SEGMENT

(In thousands)

(Unaudited)

  

 

 

Three Months Ended

 

Twelve Months Ended

 

 

April 30,
2022

 

April 24,
2021

 

April 30,
2022

 

April 24,
2021

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

 

 

 

 

 

 

 

Dental

 

$

61,603

 

 

$

29,227

 

 

$

180,212

 

 

$

201,244

 

Animal Health

 

 

41,043

 

 

 

32,518

 

 

 

114,403

 

 

 

88,123

 

Corporate

 

 

(29,808

)

 

 

(24,397

)

 

 

(137,613

)

 

 

(78,760

)

Total

 

$

72,838

 

 

$

37,348

 

 

$

157,002

 

 

$

210,607

 

PATTERSON COMPANIES, INC.

RECONCILIATION OF GAAP TO NON-GAAP MEASURES

(Dollars in thousands, except per share amounts)

(Unaudited)

 

For the three months ended April 30, 2022

 

GAAP

 

Deal
amortization

 

Integration and
business
restructuring
expenses

 

Legal
reserves

 

Inventory
donation
charges

 

Gains on
investments

 

Non-GAAP

Operating income

 

$

72,838

 

 

$

9,405

 

$

 

$

 

$

 

$

 

 

$

82,243

 

Other income (expense), net

 

 

9,515

 

 

 

 

 

 

 

 

 

 

 

(890

)

 

 

8,625

 

Income before taxes

 

 

82,353

 

 

 

9,405

 

 

 

 

 

 

 

 

(890

)

 

 

90,868

 

Income tax expense

 

 

18,954

 

 

 

2,237

 

 

 

 

 

 

 

 

(227

)

 

 

20,964

 

Net income

 

 

63,399

 

 

 

7,168

 

 

 

 

 

 

 

 

(663

)

 

 

69,904

 

Net loss attributable to noncontrolling interests

 

 

(479

)

 

 

 

 

 

 

 

 

 

 

 

 

 

(479

)

Net income attributable to Patterson Companies, Inc.

 

$

63,878

 

 

$

7,168

 

$

 

$

 

$

 

$

(663

)

 

$

70,383

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

0.65

 

 

$

0.07

 

$

 

$

 

$

 

$

(0.01

)

 

$

0.71

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income as a % of sales

 

 

4.4

%

 

 

 

 

 

 

 

 

 

 

 

 

5.0

%

Effective tax rate

 

 

23.0

%

 

 

 

 

 

 

 

 

 

 

 

 

23.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months ended April 24, 2021

 

GAAP

 

Deal
amortization

 

Integration and
business
restructuring
expenses

 

Legal
reserves

 

Inventory
donation
charges

 

Gains on
investments

 

Non-GAAP

Operating income

 

$

37,348

 

 

$

9,261

 

$

1,090

 

$

 

$

 

$

 

 

$

47,699

 

Other income (expense), net

 

 

(1,652

)

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,652

)

Income before taxes

 

 

35,696

 

 

 

9,261

 

 

1,090

 

 

 

 

 

 

 

 

 

46,047

 

Income tax expense

 

 

7,182

 

 

 

2,196

 

 

273

 

 

 

 

 

 

 

 

 

9,651

 

Net income

 

 

28,514

 

 

 

7,065

 

 

817

 

 

 

 

 

 

 

 

 

36,396

 

Net loss attributable to noncontrolling interests

 

 

(241

)

 

 

 

 

 

 

 

 

 

 

 

 

 

(241

)

Net income attributable to Patterson Companies, Inc.

 

$

28,755

 

 

$

7,065

 

$

817

 

$

 

$

 

$

 

 

$

36,637

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

0.30

 

 

$

0.07

 

$

0.01

 

$

 

$

 

$

 

 

$

0.38

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income as a % of sales

 

 

2.4

%

 

 

 

 

 

 

 

 

 

 

 

 

3.1

%

Effective tax rate

 

 

20.1

%

 

 

 

 

 

 

 

 

 

 

 

 

21.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

* 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 30, 2022

 

GAAP

 

Deal
amortization

 

Integration and
business
restructuring
expenses

 

Legal
reserves

 

Inventory
donation
charges

 

Gains on
investments

 

Non-GAAP

Operating income

 

$

157,002

 

 

$

37,812

 

$

4,245

 

$

36,000

 

$

49,194

 

$

 

 

$

284,253

 

Other income (expense), net

 

 

109,252

 

 

 

 

 

 

 

 

 

 

 

(101,809

)

 

 

7,443

 

Income before taxes

 

 

266,254

 

 

 

37,812

 

 

4,245

 

 

36,000

 

 

49,194

 

 

(101,809

)

 

 

291,696

 

Income tax expense

 

 

64,540

 

 

 

8,990

 

 

1,061

 

 

8,460

 

 

12,308

 

 

(25,896

)

 

 

69,463

 

Net income

 

 

201,714

 

 

 

28,822

 

 

3,184

 

 

27,540

 

 

36,886

 

 

(75,913

)

 

 

222,233

 

Net loss attributable to noncontrolling interests

 

 

(1,496

)

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,496

)

Net income attributable to Patterson Companies, Inc.

 

$

203,210

 

 

$

28,822

 

$

3,184

 

$

27,540

 

$

36,886

 

$

(75,913

)

 

$

223,729

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

2.06

 

 

$

0.29

 

$

0.03

 

$

0.28

 

$

0.37

 

$

(0.77

)

 

$

2.27

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income as a % of sales

 

 

2.4

%

 

 

 

 

 

 

 

 

 

 

 

 

4.4

%

Effective tax rate

 

 

24.2

%

 

 

 

 

 

 

 

 

 

 

 

 

23.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the twelve months ended April 24, 2021

 

GAAP

 

Deal
amortization

 

Integration and
business
restructuring
expenses

 

Legal
reserves

 

Inventory
donation
charges

 

Gains on
investments

 

Non-GAAP

Operating income

 

$

210,607

 

 

$

37,002

 

$

1,090

 

$

 

$

 

$

 

 

$

248,699

 

Other income (expense), net

 

 

(10,676

)

 

 

 

 

 

 

 

 

 

 

 

 

 

(10,676

)

Income before taxes

 

 

199,931

 

 

 

37,002

 

 

1,090

 

 

 

 

 

 

 

 

 

238,023

 

Income tax expense

 

 

44,822

 

 

 

8,792

 

 

273

 

 

 

 

 

 

 

 

 

53,887

 

Net income

 

 

155,109

 

 

 

28,210

 

 

817

 

 

 

 

 

 

 

 

 

184,136

 

Net loss attributable to noncontrolling interests

 

 

(872

)

 

 

 

 

 

 

 

 

 

 

 

 

 

(872

)

Net income attributable to Patterson Companies, Inc.

 

$

155,981

 

 

$

28,210

 

$

817

 

$

 

$

 

$

 

 

$

185,008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

1.61

 

 

$

0.29

 

$

0.01

 

$

 

$

 

$

 

 

$

1.91

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income as a % of sales

 

 

3.6

%

 

 

 

 

 

 

 

 

 

 

 

 

4.2

%

Effective tax rate

 

 

22.4

%

 

 

 

 

 

 

 

 

 

 

 

 

22.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

* May not sum due to rounding.

PATTERSON COMPANIES, INC.

FREE CASH FLOW

(In thousands)

(Unaudited)

 

 

 

Twelve Months Ended

 

 

April 30,
2022

 

April 24,
2021

 

 

 

 

 

Net cash used in operating activities

 

$

(980,994

)

 

$

(730,519

)

Additions to property and equipment

 

 

(38,308

)

 

 

(25,788

)

Collection of deferred purchase price receivables

 

 

1,213,497

 

 

 

833,958

 

Free cash flow

 

$

194,195

 

 

$

77,651

 

 

INVESTORS:
John M. Wright, Investor Relations

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

MEDIA:
Patterson Corporate Communications

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

Source: Patterson Companies Inc.