Patterson Companies Reports Fiscal 2021 Second-Quarter Operating Results

  • Reported net sales increased 9.5 percent year-over-year to $1.55 billion, and internal sales increased 9.0 percent.
  • Adjusted operating margin increased by 130 bps to 5.3 percent.
  • Dental segment internal sales increased 12.1 percent driven by strong sales growth across consumables, equipment and value-added services.
  • Animal Health segment internal sales increased 6.9 percent due to strong Companion Animal performance and growth in the Production Animal business.
  • Delivered second-quarter GAAP earnings of $0.56 per diluted share and adjusted earnings1 of $0.63 per diluted share, an increase of 62 percent.

ST. PAUL, Minn.--()--Patterson Companies, Inc. (Nasdaq: PDCO) today reported consolidated net sales of $1.55 billion (see attached Sales Summary for further details) in its fiscal second quarter ended October 24, 2020, an increase of 9.5 percent compared to the same period last year. Internal sales, which are adjusted for the effects of currency translation, increased 9.0 percent.

Reported net income attributable to Patterson Companies, Inc. for the second quarter of fiscal 2021 was $54.1 million, or $0.56 per diluted share, compared to a net loss attributable to Patterson Companies, Inc., of $33.1 million, or a loss of $0.35 per diluted share, in the second quarter of 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 and an investment gain, totaled $61.1 million for the second quarter of fiscal 2021, or $0.63 per diluted share, compared to $36.6 million in the same quarter of fiscal 2020, or $0.39 per diluted share. The 62 percent year-over-year increase in the period is primarily attributed to strong sales execution, improved mix, and the benefit of continued expense discipline during the fiscal 2021 second quarter.

Patterson’s strong revenue growth and adjusted earnings in the second quarter reflect the resilience of our customers and the focus and dedication of our team as we continue to successfully execute our strategy,” said Mark Walchirk, President and CEO of Patterson Companies. “Despite the disruption of the COVID-19 pandemic, focused investments in our people, technology and services have enabled us to deepen our partnerships with our customers and continue the sales momentum we are building across our Dental and Animal Health businesses.

I am incredibly proud of the entire Patterson team and our ongoing efforts to protect employee health and safety while ensuring business continuity and support for our customers. I am confident in our ability to drive long-term value by capitalizing on opportunities as business conditions continue to improve in our end markets, while remaining prepared to address challenges related to the pandemic as the situation evolves.”

Patterson Dental

Reported net sales in our Dental segment for the second quarter of fiscal 2021, which represented approximately 41 percent of total company sales, were $631.7 million compared to $564.6 million in the second quarter of last year. Internal sales increased 12.1 percent compared to the fiscal 2020 second quarter.

Patterson Animal Health

Reported net sales in our Animal Health segment for the second quarter of fiscal 2021, which comprised approximately 59 percent of the company’s total sales, were $914.2 million compared to $848.2 million in the second quarter of last year. Internal sales for the segment increased 6.9 percent from the fiscal 2020 second quarter.

Balance Sheet and Capital Allocation

During the first six months of fiscal 2021, Patterson Companies used $423.0 million of cash from operating activities and collected deferred purchase price receivables of $408.9 million, resulting in a use of cash of $14.1 million, compared to generating $197.6 million in the first six months of fiscal 2020. Free cash flow1 (see definition below and attached free cash flow table) generated during the first six months of fiscal 2021 is down $203.3 million compared to the first six months of fiscal 2020, primarily due to an increased level of working capital in the period.

During the second quarter of fiscal 2021, Patterson Companies declared a quarterly cash dividend of $0.26 per share. On a year-to-date basis, Patterson has returned $25.0 million in cash dividends to shareholders.

Year-to-Date Results

Consolidated reported net sales for the first six months of fiscal 2021 totaled $2.80 billion, a 1.9 percent year-over-year increase. Internal sales have increased 1.8 percent compared to the first six months of fiscal 2020. Reported net income attributable to Patterson Companies, Inc. was $78.5 million, or $0.82 per diluted share, compared to a net loss attributable to Patterson Companies, Inc. of $3.1 million, or a net loss of $0.03 per diluted share in last year's period. Adjusted net income1 attributable to Patterson Companies, Inc., which excludes deal amortization, integration and business restructuring expenses, legal reserve costs, accelerated debt-related costs and an investment gain, totaled $92.6 million, or $0.96 per diluted share, compared to adjusted net income attributable to Patterson Companies, Inc. of $62.0 million, or $0.65 per diluted share, in the year-ago period.

Fiscal 2021 Guidance

Due to the continued uncertainty surrounding the COVID-19 pandemic and its impact on business operations, Patterson is not providing fiscal 2021 financial guidance at this time.

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, 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 and an investment gain, 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 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. 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 second-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.

Second-Quarter Conference Call and Replay

Patterson Companies’ fiscal 2021 second-quarter earnings conference call will start at 10 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 second-quarter conference call can be heard for one week at 800-585-8367 and by providing the Conference ID 1517668 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, 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 Six Months Ended
October 24,
2020
October 26,
2019
October 24,
2020
October 26,
2020
 
Net sales

$

1,553,168

 

$

1,418,744

 

$

2,799,005

 

$

2,747,395

 

Gross profit

 

320,368

 

 

301,494

 

 

574,184

 

 

591,548

 

Operating expenses

 

246,662

 

 

319,640

 

 

462,606

 

 

593,020

 

Operating income (loss)

 

73,706

 

 

(18,146

)

 

111,578

 

 

(1,472

)

Other income (expense):
Other income, net

 

3,223

 

 

269

 

 

5,257

 

 

32,186

 

Interest expense

 

(6,381

)

 

(9,046

)

 

(13,072

)

 

(17,736

)

Income (loss) before taxes

 

70,548

 

 

(26,923

)

 

103,763

 

 

12,978

 

Income tax expense

 

16,722

 

 

6,426

 

 

25,735

 

 

16,520

 

Net income (loss)

 

53,826

 

 

(33,349

)

 

78,028

 

 

(3,542

)

Net loss attributable to noncontrolling interests

 

(234

)

 

(220

)

 

(439

)

 

(455

)

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

$

54,060

 

$

(33,129

)

$

78,467

 

$

(3,087

)

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

$

0.57

 

$

(0.35

)

$

0.82

 

$

(0.03

)

Diluted

$

0.56

 

$

(0.35

)

$

0.82

 

$

(0.03

)

Weighted average shares:
Basic

 

95,518

 

 

94,093

 

 

95,341

 

 

93,944

 

Diluted

 

96,415

 

 

94,093

 

 

96,105

 

 

93,944

 

Dividends declared per common share

$

0.26

 

$

0.26

 

$

0.52

 

$

0.52

 

 
PATTERSON COMPANIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
   
  October 24, 2020 April 25, 2020
ASSETS  
Current assets:  
Cash and cash equivalents  

$

139,481

$

77,944

Receivables, net  

 

491,687

 

416,523

Inventory  

 

761,941

 

812,194

Prepaid expenses and other current assets  

 

263,149

 

236,104

Total current assets  

 

1,656,258

 

1,542,765

Property and equipment, net  

 

298,460

 

303,725

Operating lease right-of-use assets, net  

 

81,171

 

79,021

Goodwill and identifiable intangibles, net  

 

435,682

 

452,229

Long-term receivables, net and other  

 

317,453

 

337,610

Total assets  

$

2,789,024

$

2,715,350

   
LIABILITIES AND STOCKHOLDERS' EQUITY  
Current liabilities:  
Accounts payable  

$

690,755

$

862,093

Other accrued liabilities  

 

239,317

 

182,099

Operating lease liabilities  

 

31,814

 

30,706

Borrowings on revolving credit  

 

111,000

 

-

Total current liabilities  

 

1,072,886

 

1,074,898

Long-term debt  

 

588,329

 

587,766

Non-current operating lease liabilities  

 

53,796

 

49,854

Other non-current liabilities  

 

181,286

 

166,388

Total liabilities  

 

1,896,297

 

1,878,906

Stockholders' equity  

 

892,727

 

836,444

Total liabilities and stockholders' equity  

$

2,789,024

$

2,715,350

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

Six Months Ended

October 24,
2020

 

October 26,
2019

 
Operating activities:
Net income (loss)

$

78,028

 

$

(3,542

)

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

 

38,881

 

 

41,275

 

Investment gain

 

-

 

 

(34,334

)

Non-cash employee compensation

 

16,660

 

 

19,302

 

Non-cash losses (gains) and other, net

 

5,976

 

 

-

 

Change in assets and liabilities:
Receivables

 

(505,535

)

 

(209,100

)

Inventory

 

58,238

 

 

(27,238

)

Accounts payable

 

(179,276

)

 

118,301

 

Accrued liabilities

 

24,555

 

 

102,301

 

Long term receivables

 

687

 

 

(4,292

)

Other changes from operating activities, net

 

38,782

 

 

(17,326

)

Net cash used in operating activities

 

(423,004

)

 

(14,653

)

 
Investing activities:
Additions to property and equipment

 

(14,370

)

 

(22,851

)

Collection of deferred purchase price receivables

 

408,907

 

 

212,307

 

Other investing activities

 

396

 

 

-

 

Net cash provided by investing activities

 

394,933

 

 

189,456

 

Financing activities:
Dividends paid

 

(25,009

)

 

(50,504

)

Payments on long-term debt

 

-

 

 

(87,090

)

Draw on revolving credit

 

111,000

 

 

-

 

Other financing activities

 

631

 

 

(4,067

)

Net cash provided by (used in) financing activities

 

86,622

 

 

(141,661

)

Effect of exchange rate changes on cash

 

2,986

 

 

787

 

Net change in cash and cash equivalents

 

61,537

 

 

33,929

 

Cash and cash equivalents at beginning of period

 

77,944

 

 

95,646

 

Cash and cash equivalents at end of period

$

139,481

 

$

129,575

 

PATTERSON COMPANIES, INC.
SALES SUMMARY
(Dollars in thousands)
(Unaudited)
 
October 24,
2020
October 26,
20191
Total
Sales
Growth
Foreign
Exchange
Impact
Internal
Sales
Growth
Three Months Ended
 
Consolidated net sales
Consumable

$

1,241,586

$

1,127,481

10.1

%

0.6

%

9.5

%

Equipment and software

 

220,181

 

205,790

7.0

 

(0.1

)

7.1

 

Value-added services and other

 

91,401

 

85,473

6.9

 

0.1

 

6.8

 

Total

$

1,553,168

$

1,418,744

9.5

%

0.5

%

9.0

%

 
Dental
Consumable

$

357,849

$

304,565

17.5

%

(0.2

)%

17.7

%

Equipment and software

 

198,135

 

188,192

5.3

 

(0.1

)

5.4

 

Value-added services and other

 

75,764

 

71,846

5.5

 

(0.1

)

5.6

 

Total

$

631,748

$

564,603

11.9

%

(0.2

)%

12.1

%

 
Animal Health
Consumable

$

883,737

$

822,916

7.4

%

0.9

%

6.5

%

Equipment and software

 

22,046

 

17,598

25.3

 

-

 

25.3

 

Value-added services and other

 

8,394

 

7,674

9.4

 

2.2

 

7.2

 

Total

$

914,177

$

848,188

7.8

%

0.9

%

6.9

%

 
Corporate
Value-added services and other

$

7,243

$

5,953

21.7

%

-

%

21.7

%

Total

$

7,243

$

5,953

21.7

%

-

%

21.7

%

 
 
Six Months Ended
 
Consolidated net sales
Consumable

$

2,286,567

$

2,222,665

2.9

%

0.2

%

2.7

%

Equipment and software

 

349,558

 

348,323

0.4

 

(0.1

)

0.5

 

Value-added services and other

 

162,880

 

176,407

(7.7

)

-

 

(7.7

)

Total

$

2,799,005

$

2,747,395

1.9

%

0.1

%

1.8

%

 
Dental
Consumable

$

614,452

$

608,039

1.1

%

(0.1

)%

1.2

%

Equipment and software

 

311,098

 

313,876

(0.9

)

(0.1

)

(0.8

)

Value-added services and other

 

136,493

 

143,824

(5.1

)

(0.1

)

(5.0

)

Total

$

1,062,043

$

1,065,739

(0.3

)%

(0.1

)%

(0.2

)%

 
Animal Health
Consumable

$

1,672,115

$

1,614,626

3.6

%

0.2

%

3.4

%

Equipment and software

 

38,460

 

34,447

11.6

 

-

 

11.6

 

Value-added services and other

 

15,755

 

16,654

(5.4

)

0.7

 

(6.1

)

Total

$

1,726,330

$

1,665,727

3.6

%

0.2

%

3.4

%

 
Corporate
Value-added services and other

$

10,632

$

15,929

(33.3

)%

-

%

(33.3

)%

Total

$

10,632

$

15,929

(33.3

)%

-

%

(33.3

)%

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

 
PATTERSON COMPANIES, INC.
OPERATING INCOME BY SEGMENT
(In thousands)
(Unaudited)
 
Three Months Ended Six Months Ended
October 24,
2020
October 26,
2019
October 24,
2020
October 26,
2019
 
Operating income (loss)
Dental

$

72,957

 

$

52,632

 

$

110,726

 

$

86,636

 

Animal Health

 

17,591

 

 

18,174

 

 

34,990

 

 

37,798

 

Corporate

 

(16,842

)

 

(88,952

)

 

(34,138

)

 

(125,906

)

Total

$

73,706

 

$

(18,146

)

$

111,578

 

$

(1,472

)

PATTERSON COMPANIES, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
(Dollars in thousands, except per share amounts)
(Unaudited)
 
For the three months ended October 24, 2020 GAAP Deal
amortization
Integration
and business
restructuring
expenses
Legal
reserve
costs
Accelerated
debt-related
costs
Investment
gain
Non-GAAP
Operating income (loss)

$

73,706

 

$

9,250

$

-

$

-

$

-

$

-

$

82,956

 

Other income (expense), net

 

(3,158

)

 

-

 

-

 

-

 

-

 

-

 

(3,158

)

Income (loss) before taxes

 

70,548

 

 

9,250

 

-

 

-

 

-

 

-

 

79,798

 

Income tax expense (benefit)

 

16,722

 

 

2,199

 

-

 

-

 

-

 

-

 

18,921

 

Net income (loss)

 

53,826

 

 

7,051

 

-

 

-

 

-

 

-

 

60,877

 

Net loss attributable to noncontrolling interests

 

(234

)

 

-

 

-

 

-

 

-

 

-

 

(234

)

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

$

54,060

 

$

7,051

$

-

$

-

$

-

$

-

$

61,111

 

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

$

0.56

 

$

0.07

$

-

$

-

$

-

$

-

$

0.63

 

 
Operating income (loss) as a % of sales

 

4.7

%

 

5.3

%

Effective tax rate

 

23.7

%

 

23.7

%

 
For the three months ended October 26, 2019 GAAP Deal
amortization
Integration
and business
restructuring
expenses
Legal
reserve
costs†
Accelerated
debt-related
costs
Investment
gain
Non-GAAP
Operating income (loss)

$

(18,146

)

$

9,238

$

3,792

$

61,300

$

-

$

-

$

56,184

 

Other income (expense), net

 

(8,777

)

 

-

 

-

 

-

 

959

 

-

 

(7,818

)

Income (loss) before taxes

 

(26,923

)

 

9,238

 

3,792

 

61,300

 

959

 

-

 

48,366

 

Income tax expense (benefit)

 

6,426

 

 

2,200

 

948

 

2,125

 

240

 

-

 

11,939

 

Net income (loss)

 

(33,349

)

 

7,038

 

2,844

 

59,175

 

719

 

-

 

36,427

 

Net loss attributable to noncontrolling interests

 

(220

)

 

-

 

-

 

-

 

-

 

-

 

(220

)

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

$

(33,129

)

$

7,038

$

2,844

$

59,175

$

719

$

-

$

36,647

 

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

$

(0.35

)

$

0.07

$

0.03

$

0.62

$

0.01

$

-

$

0.39

 

 
Operating income (loss) as a % of sales

 

(1.3

)%

 

4.0

%

Effective tax rate

 

(23.9

)%

 

24.7

%

† Includes 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 $3,000 related to other legal proceedings.
* 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 six months ended October 24, 2020 GAAP Deal
amortization
Integration
and business
restructuring
expenses
Legal
reserve
costs
Accelerated
debt-related
costs
Investment
gain
Non-GAAP
Operating income (loss)

$

111,578

 

$

18,503

$

-

$

-

$

-

$

-

 

$

130,081

 

Other income (expense), net

 

(7,815

)

 

-

 

-

 

-

 

-

 

-

 

 

(7,815

)

Income (loss) before taxes

 

103,763

 

 

18,503

 

-

 

-

 

-

 

-

 

 

122,266

 

Income tax expense (benefit)

 

25,735

 

 

4,400

 

-

 

-

 

-

 

-

 

 

30,135

 

Net income (loss)

 

78,028

 

 

14,103

 

-

 

-

 

-

 

-

 

 

92,131

 

Net loss attributable to noncontrolling interests

 

(439

)

 

-

 

-

 

-

 

-

 

-

 

 

(439

)

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

$

78,467

 

$

14,103

$

-

$

-

$

-

$

-

 

$

92,570

 

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

$

0.82

 

$

0.15

$

-

$

-

$

-

$

-

 

$

0.96

 

 
Operating income (loss) as a % of sales

 

4.0

%

 

4.6

%

Effective tax rate

 

24.8

%

 

24.6

%

 
For the six months ended October 26, 2019 GAAP Deal
amortization
Integration
and business
restructuring
expenses
Legal
reserve
costs‡
Accelerated
debt-related
costs
Investment
gain
Non-GAAP
Operating income (loss)

$

(1,472

)

$

18,491

$

5,747

$

78,966

$

-

$

-

 

$

101,732

 

Other income (expense), net

 

14,450

 

 

-

 

-

 

-

 

959

 

(34,334

)

 

(18,925

)

Income (loss) before taxes

 

12,978

 

 

18,491

 

5,747

 

78,966

 

959

 

(34,334

)

 

82,807

 

Income tax expense (benefit)

 

16,520

 

 

4,401

 

1,442

 

6,541

 

240

 

(7,884

)

 

21,260

 

Net income (loss)

 

(3,542

)

 

14,090

 

4,305

 

72,425

 

719

 

(26,450

)

 

61,547

 

Net loss attributable to noncontrolling interests

 

(455

)

 

-

 

-

 

-

 

-

 

-

 

 

(455

)

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

$

(3,087

)

$

14,090

$

4,305

$

72,425

$

719

$

(26,450

)

$

62,002

 

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

$

(0.03

)

$

0.15

$

0.05

$

0.76

$

0.01

$

(0.28

)

$

0.65

 

 
Operating income (loss) as a % of sales

 

(0.1

)%

 

3.7

%

Effective tax rate

 

127.3

%

 

25.7

%

‡ 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 $3,000 related to other legal proceedings.
* May not sum due to rounding
PATTERSON COMPANIES, INC.
FREE CASH FLOW
(In thousands)
(Unaudited)
 
Six Months Ended
October 24, 2020 October 26, 2019
 
Net cash used in operating activities

$

(423,004

)

$

(14,653

)

Additions to property and equipment

 

(14,370

)

 

(22,851

)

Collection of deferred purchase price receivables

 

408,907

 

 

212,307

 

Free cash flow

$

(28,467

)

$

174,803

 

 

Contacts

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

MEDIA CONTACT: Patterson Corporate Communications
COMPANY: Patterson Companies Inc.
TEL: 651.905.3349
EMAIL: corporate.communications@pattersoncompanies.com

WEB: pattersoncompanies.com

Contacts

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

MEDIA CONTACT: Patterson Corporate Communications
COMPANY: Patterson Companies Inc.
TEL: 651.905.3349
EMAIL: corporate.communications@pattersoncompanies.com

WEB: pattersoncompanies.com