Patterson Companies Reports Fiscal 2019 Third-Quarter Results
Business Wire 28-Feb-2019 7:00 AM
-
Third-quarter reported net sales totaled $1.4 billion, up 1.6
percent.
-
Third-quarter GAAP earnings of $0.33 per diluted share.
-
Third-quarter adjusted earnings1 of $0.38
per diluted share.
-
Dental segment internal sales increased 0.9%.
-
Company narrows fiscal 2019 GAAP earnings range to $0.89 to $0.94
per diluted share and adjusted earnings1
range to $1.40 to $1.45 per diluted share.
Patterson Companies, Inc. (NASDAQ:PDCO) today reported consolidated net
sales of approximately $1.4 billion (see attached Sales Summary for
further details) in its fiscal third quarter ended January 26, 2019, an
increase of 1.6 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 2.5 percent.
Reported net income attributable to Patterson Companies, Inc. for the
third quarter of fiscal year 2019 was $31.2 million, or $0.33 per
diluted share, compared to $109.0 million, or $1.18 per diluted share,
in last year's fiscal third quarter. The prior year period included the
recognition of a provisional tax benefit of $77.3 million, reflecting
the revaluation of tax-deferred assets and liabilities, net of a
one-time transition tax on unremitted foreign earnings as a result of
the Tax Cuts and Jobs Act ("2017 Tax Act") enacted during the prior year
period. Adjusted net income1 attributable to Patterson
Companies, Inc., which excludes deal amortization costs, integration and
business restructuring costs and discrete tax matters, totaled $35.6
million for the third quarter of fiscal 2019, or $0.38 per diluted
share, compared to $39.6 million in the same quarter last year, or $0.43
per diluted share.
"We are pleased with our performance during the third quarter. We
delivered the third consecutive quarter of year-over-year revenue growth
as well as continued, sequential operating margin improvement," said
Mark Walchirk, President and CEO of Patterson Companies. "We continued
to execute against our strategic priorities, which resulted in Dental
segment revenue growth and solid performance in our Animal Health
segment. Our progress throughout fiscal 2019 provides us with confidence
that we are taking the right steps to build a stronger Patterson that is
well positioned to deliver long-term value."
Patterson Animal Health
Reported net sales in our Animal Health segment for the third quarter of
fiscal 2019, which comprised approximately 58 percent of the company's
total sales, were $807.5 million compared to $794.9 million in the same
quarter last year. Internal sales for the segment increased 2.8 percent
from the fiscal 2018 third quarter.
Patterson Dental
Reported net sales in our Dental segment for the third quarter of fiscal
2019, which represented approximately 42 percent of total company sales,
were $579.7 million compared to $577.9 million in the same quarter last
year. Internal sales increased 0.9 percent compared to the fiscal 2018
third quarter.
Balance Sheet and Capital Allocation
For the first nine months of fiscal 2019, Patterson Companies generated
$76.3 million of cash from operating activities and collected deferred
purchase price receivables of $308.6 million for a total of $384.9
million, compared to a total of $77.1 million in the same period last
year. During the first nine months of fiscal 2019, debt has been reduced
by $231.0 million and cash has grown by $54.4 million.
In the third quarter of fiscal 2019, Patterson Companies paid $24.8
million in cash dividends to shareholders. On a year-to-date basis,
Patterson has returned $74.7 million in cash dividends to shareholders.
Year-to-Date Results
Consolidated net sales for the first nine months of fiscal 2019 totaled
$4.1 billion, a 1.8 percent year-over-year increase. Reported net income
attributable to Patterson Companies, Inc. was $55.6 million, or $0.60
per diluted share, compared to $180.0 million, or $1.93 per diluted
share in last year's period. The prior year period included the
recognition of a provisional tax benefit of $77.3 million, reflecting
the revaluation of tax-deferred assets and liabilities, net of a
one-time transition tax on unremitted foreign earnings as a result of
the 2017 Tax Act. In July 2018, Patterson Companies booked a pre-tax
reserve of $28.3 million for the anticipated settlement of purported
class action antitrust litigation.
Adjusted net income1 attributable to Patterson Companies,
Inc., which excludes deal amortization costs, integration and business
restructuring costs, legal reserve costs and discrete tax matters,
totaled $95.9 million, or $1.03 per diluted share, compared to adjusted
net income of $128.6 million, or $1.38 per diluted share, in the
year-ago period.
FY2019 Guidance
Patterson Companies today narrowed its fiscal 2019 earnings guidance,
which is provided on both a GAAP and non-GAAP adjusted1 basis:
-
GAAP earnings are expected to be in the range of $0.89 to $0.94 per
diluted share.
-
Non-GAAP adjusted earnings1 are expected to be in
the range of $1.40 to $1.45 per diluted share.
-
Our non-GAAP adjusted earnings1 guidance excludes
the after-tax impact of:
-
Deal amortization expenses of approximately $29.6 million ($0.32
per diluted share).
-
Legal reserve costs of approximately $20.7 million ($0.22 per
diluted share).
-
A benefit related to the 2017 Tax Act of $2.7 million ($0.03 per
diluted share).
Our guidance is for current operations as well as completed or
previously announced acquisitions and does not include the impact of
potential future acquisitions or similar transactions, if any, or
impairments and material restructurings beyond those previously publicly
disclosed. Our guidance assumes North American and international market
conditions similar to those experienced in fiscal 2018.
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, 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 deal amortization, integration and business
restructuring expenses, legal reserve costs and discrete tax matters,
along with the related tax effects of these items.
Management believes that these non-GAAP measures may provide a helpful
representation of the company's third-quarter performance and earnings
guidance, 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.
In addition, the term "internal sales" used in this release represents
net sales adjusted to exclude foreign currency impact 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.
Third-Quarter Conference Call and Replay
Patterson Companies' fiscal 2019 third-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 2019 third-quarter conference call can be heard
for one week at 800-585-8367 and by providing the Conference ID 1978448
when prompted.
About Patterson Companies Inc.
Patterson Companies Inc. (Nasdaq: PDCO) is a value-added distributor
serving the dental and animal health markets.
Dental Market
Patterson's Dental segment provides a virtually complete range of
consumable dental products, equipment and software, turnkey digital
solutions and value-added services to dentists and dental laboratories
throughout North America.
Animal Health Market
Patterson's Animal Health segment is a leading distributor of products,
services and technologies to both the production and companion animal
health markets in North America and the U.K.
This press release contains certain forward-looking statements, as
defined in the Private Securities Litigation Reform Act of 1995.
Forward-looking statements are information of a non-historical nature
and are subject to risks and uncertainties that are beyond Patterson's
ability to control. Forward-looking statements generally can be
identified by words such as "believes," "expects," "anticipates,"
"foresees," "forecasts," "estimates" or other words or phrases of
similar import. It is uncertain whether any of the events anticipated by
the forward-looking statements will transpire or occur, or if any of
them do, what impact they will have on the results of operations and
financial condition of Patterson or the price of Patterson stock. These
forward-looking statements involve certain risks and uncertainties that
could cause actual results to differ materially from those indicated in
such forward-looking statements. Such risks and uncertainties include,
without limitation, operations disruptions attributable to our
enterprise resource planning system implementation; our ability to
attract or retain qualified sales representatives and service
technicians who relate directly with our customers; the reduction,
modification, cancellation or delay of purchases of innovative,
high-margin equipment; material changes in our purchasing relationships
with suppliers; changes in general market and economic conditions; and
the other risks and important factors contained and identified in
Patterson's filings with the Securities and Exchange Commission, such as
its Quarterly Reports on Form 10-Q and Annual Reports on Form 10-K, any
of which could cause actual results to differ materially from the
forward-looking statements. Any forward-looking statement in this press
release speaks only as of the date on which it is made. Except to the
extent required under the federal securities laws, Patterson does not
intend to update or revise the forward-looking statements.
|
|
|
PATTERSON COMPANIES, INC.
|
|
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
|
|
(In thousands, except per share amounts)
|
|
(Unaudited)
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
|
January 26,
|
|
January 27,
|
|
January 26,
|
|
January 27,
|
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
1,396,745
|
|
|
$
|
1,375,222
|
|
|
$
|
4,137,817
|
|
|
$
|
4,065,074
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
299,509
|
|
|
294,736
|
|
|
878,248
|
|
|
909,527
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
254,146
|
|
|
244,690
|
|
|
787,155
|
|
|
730,889
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
45,363
|
|
|
50,046
|
|
|
91,093
|
|
|
178,638
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense):
|
|
|
|
|
|
|
|
|
|
Other income, net
|
|
1,427
|
|
|
2,096
|
|
|
8,621
|
|
|
4,768
|
|
|
Interest expense
|
|
(9,172
|
)
|
|
(11,783
|
)
|
|
(29,849
|
)
|
|
(34,454
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Income before taxes
|
|
37,618
|
|
|
40,359
|
|
|
69,865
|
|
|
148,952
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense (benefit)
|
|
6,564
|
|
|
(68,596
|
)
|
|
14,674
|
|
|
(31,094
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
31,054
|
|
|
108,955
|
|
|
55,191
|
|
|
180,046
|
|
|
Net loss attributable to noncontrolling interests
|
|
(171
|
)
|
|
—
|
|
|
(447
|
)
|
|
—
|
|
|
Net income attributable to Patterson Companies, Inc.
|
|
$
|
31,225
|
|
|
$
|
108,955
|
|
|
$
|
55,638
|
|
|
$
|
180,046
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share attributable to Patterson Companies, Inc.:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.34
|
|
|
$
|
1.18
|
|
|
$
|
0.60
|
|
|
$
|
1.94
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
$
|
0.33
|
|
|
$
|
1.18
|
|
|
$
|
0.60
|
|
|
$
|
1.93
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
92,818
|
|
|
91,949
|
|
|
92,677
|
|
|
92,674
|
|
|
Diluted
|
|
93,653
|
|
|
92,609
|
|
|
93,347
|
|
|
93,323
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared per common share
|
|
$
|
0.26
|
|
|
$
|
0.26
|
|
|
$
|
0.78
|
|
|
$
|
0.78
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PATTERSON COMPANIES, INC.
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
(In thousands)
|
|
(Unaudited)
|
|
|
|
|
|
January 26,
|
|
April 28,
|
|
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
117,431
|
|
|
$
|
62,984
|
|
Receivables, net
|
|
547,180
|
|
|
826,877
|
|
Inventory
|
|
845,846
|
|
|
779,834
|
|
Prepaid expenses and other current assets
|
|
169,209
|
|
|
103,029
|
|
Total current assets
|
|
1,679,666
|
|
|
1,772,724
|
|
Property and equipment, net
|
|
290,271
|
|
|
290,590
|
|
Goodwill and identifiable intangibles, net
|
|
1,174,475
|
|
|
1,205,401
|
|
Long-term receivables, net and other
|
|
176,113
|
|
|
202,949
|
|
Total assets
|
|
$
|
3,320,525
|
|
|
$
|
3,471,664
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Accounts payable
|
|
$
|
688,125
|
|
|
$
|
610,368
|
|
Other accrued liabilities
|
|
193,442
|
|
|
205,415
|
|
Current maturities of long-term debt
|
|
22,131
|
|
|
76,598
|
|
Borrowings on revolving credit
|
|
29,000
|
|
|
16,000
|
|
Total current liabilities
|
|
932,698
|
|
|
908,381
|
|
Long-term debt
|
|
732,640
|
|
|
922,030
|
|
Other non-current liabilities
|
|
182,490
|
|
|
179,463
|
|
Total liabilities
|
|
1,847,828
|
|
|
2,009,874
|
|
Stockholders' equity
|
|
1,472,697
|
|
|
1,461,790
|
|
Total liabilities and stockholders' equity
|
|
$
|
3,320,525
|
|
|
$
|
3,471,664
|
|
|
|
|
|
|
|
|
|
|
|
|
PATTERSON COMPANIES, INC.
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(In thousands)
|
|
(Unaudited)
|
|
|
|
|
|
Nine Months Ended
|
|
|
|
January 26,
|
|
January 27,
|
|
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
Operating activities:
|
|
|
|
|
|
Net income
|
|
$
|
55,191
|
|
|
$
|
180,046
|
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
Depreciation and amortization
|
|
62,425
|
|
|
62,787
|
|
|
Non-cash employee compensation
|
|
22,282
|
|
|
22,999
|
|
|
Deferred consideration in securitized receivables
|
|
(308,592
|
)
|
|
(37,068
|
)
|
|
Change in assets and liabilities, net of acquired
|
|
245,038
|
|
|
(188,751
|
)
|
|
Net cash provided by operating activities
|
|
76,344
|
|
|
40,013
|
|
|
|
|
|
|
|
|
Investing activities:
|
|
|
|
|
|
Additions to property and equipment
|
|
(33,926
|
)
|
|
(28,239
|
)
|
|
Collection of deferred purchase price receivables
|
|
308,592
|
|
|
37,068
|
|
|
Other investing activities
|
|
2,875
|
|
|
10,600
|
|
|
Net cash provided by investing activities
|
|
277,541
|
|
|
19,429
|
|
|
|
|
|
|
|
|
Financing activities:
|
|
|
|
|
|
Dividends paid
|
|
(74,731
|
)
|
|
(74,641
|
)
|
|
Repurchases of common stock
|
|
—
|
|
|
(87,500
|
)
|
|
Retirement of long-term debt
|
|
(244,010
|
)
|
|
(7,377
|
)
|
|
Draw on revolving credit
|
|
13,000
|
|
|
120,000
|
|
|
Other financing activities
|
|
6,228
|
|
|
7,546
|
|
|
Net cash used in financing activities
|
|
(299,513
|
)
|
|
(41,972
|
)
|
|
Effect of exchange rate changes on cash
|
|
75
|
|
|
5,576
|
|
|
Net change in cash and cash equivalents
|
|
54,447
|
|
|
23,046
|
|
|
Cash and cash equivalents at beginning of period
|
|
62,984
|
|
|
94,959
|
|
|
Cash and cash equivalents at end of period
|
|
$
|
117,431
|
|
|
$
|
118,005
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PATTERSON COMPANIES, INC.
|
|
SALES SUMMARY
|
|
(Dollars in thousands)
|
|
(Unaudited)
|
|
|
|
|
|
January 26, 2019
|
|
January 27, 2018
|
|
TotalSales Growth
|
|
ForeignExchange Impact
|
|
Other (a)
|
|
InternalSalesGrowth
|
|
Three Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated net sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumable
|
|
$
|
1,079,566
|
|
|
$
|
1,074,189
|
|
|
0.5%
|
|
(1.0)%
|
|
(0.1)%
|
|
1.6%
|
|
Equipment and software
|
|
234,251
|
|
|
222,574
|
|
|
5.2
|
|
(0.5)
|
|
—
|
|
5.7
|
|
Other
|
|
82,928
|
|
|
78,459
|
|
|
5.7
|
|
(0.6)
|
|
—
|
|
6.3
|
|
Total
|
|
$
|
1,396,745
|
|
|
$
|
1,375,222
|
|
|
1.6%
|
|
(0.9)%
|
|
—%
|
|
2.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dental
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumable
|
|
$
|
294,708
|
|
|
$
|
302,296
|
|
|
(2.5)%
|
|
(0.6)%
|
|
—%
|
|
(1.9)%
|
|
Equipment and software
|
|
217,649
|
|
|
207,000
|
|
|
5.1
|
|
(0.5)
|
|
—
|
|
5.6
|
|
Other
|
|
67,376
|
|
|
68,581
|
|
|
(1.8)
|
|
(0.5)
|
|
—
|
|
(1.3)
|
|
Total
|
|
$
|
579,733
|
|
|
$
|
577,877
|
|
|
0.3%
|
|
(0.6)%
|
|
—%
|
|
0.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Animal Health
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumable
|
|
$
|
784,858
|
|
|
$
|
771,893
|
|
|
1.7%
|
|
(1.1)%
|
|
(0.1)%
|
|
2.9%
|
|
Equipment and software
|
|
16,602
|
|
|
15,574
|
|
|
6.6
|
|
—
|
|
—
|
|
6.6
|
|
Other
|
|
6,035
|
|
|
7,400
|
|
|
(18.4)
|
|
(1.8)
|
|
—
|
|
(16.6)
|
|
Total
|
|
$
|
807,495
|
|
|
$
|
794,867
|
|
|
1.6%
|
|
(1.1)%
|
|
(0.1)%
|
|
2.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
$
|
9,517
|
|
|
$
|
2,478
|
|
|
284.1%
|
|
—%
|
|
—%
|
|
284.1%
|
|
Total
|
|
$
|
9,517
|
|
|
$
|
2,478
|
|
|
284.1%
|
|
—%
|
|
—%
|
|
284.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Sales of certain products previously recognized on a
gross basis were recognized on a net basis during the three and nine
months ended January 26, 2019.
|
|
|
|
|
|
PATTERSON COMPANIES, INC.
|
|
SALES SUMMARY
|
|
(Dollars in thousands)
|
|
(Unaudited)
|
|
|
|
|
|
January 26, 2019
|
|
January 27, 2018
|
|
TotalSales Growth
|
|
ForeignExchange Impact
|
|
Other (a)
|
|
InternalSalesGrowth
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated net sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumable
|
|
$
|
3,327,214
|
|
|
$
|
3,270,385
|
|
|
1.7%
|
|
(0.2)%
|
|
(0.2)%
|
|
2.1%
|
|
Equipment and software
|
|
563,269
|
|
|
540,860
|
|
|
4.1
|
|
(0.2)
|
|
—
|
|
4.3
|
|
Other
|
|
247,334
|
|
|
253,829
|
|
|
(2.6)
|
|
(0.1)
|
|
—
|
|
(2.5)
|
|
Total
|
|
$
|
4,137,817
|
|
|
$
|
4,065,074
|
|
|
1.8%
|
|
(0.2)%
|
|
(0.1)%
|
|
2.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dental
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumable
|
|
$
|
902,753
|
|
|
$
|
933,691
|
|
|
(3.3)%
|
|
(0.1)%
|
|
—%
|
|
(3.2)%
|
|
Equipment and software
|
|
520,292
|
|
|
504,376
|
|
|
3.2
|
|
(0.2)
|
|
—
|
|
3.4
|
|
Other
|
|
205,268
|
|
|
212,247
|
|
|
(3.3)
|
|
(0.1)
|
|
—
|
|
(3.2)
|
|
Total
|
|
$
|
1,628,313
|
|
|
$
|
1,650,314
|
|
|
(1.3)%
|
|
(0.2)%
|
|
—%
|
|
(1.1)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Animal Health
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumable
|
|
$
|
2,424,461
|
|
|
$
|
2,336,694
|
|
|
3.8%
|
|
(0.3)%
|
|
(0.2)%
|
|
4.3%
|
|
Equipment and software
|
|
42,977
|
|
|
36,484
|
|
|
17.8
|
|
—
|
|
—
|
|
17.8
|
|
Other
|
|
20,679
|
|
|
21,408
|
|
|
(3.4)
|
|
(0.2)
|
|
—
|
|
(3.2)
|
|
Total
|
|
$
|
2,488,117
|
|
|
$
|
2,394,586
|
|
|
3.9%
|
|
(0.3)%
|
|
(0.2)%
|
|
4.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
$
|
21,387
|
|
|
$
|
20,174
|
|
|
6.0%
|
|
—%
|
|
—%
|
|
6.0%
|
|
Total
|
|
$
|
21,387
|
|
|
$
|
20,174
|
|
|
6.0%
|
|
—%
|
|
—%
|
|
6.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Sales of certain products previously recognized on a
gross basis were recognized on a net basis during the three and nine
months ended January 26, 2019.
|
|
|
|
|
|
PATTERSON COMPANIES, INC.
|
|
OPERATING INCOME BY SEGMENT
|
|
(In thousands)
|
|
(Unaudited)
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
|
January 26, 2019
|
|
January 27, 2018
|
|
January 26, 2019
|
|
January 27, 2018
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
|
|
|
|
|
|
|
|
|
Dental
|
|
$
|
51,120
|
|
|
$
|
58,439
|
|
|
$
|
128,587
|
|
|
$
|
183,165
|
|
|
Animal Health
|
|
15,033
|
|
|
18,037
|
|
|
56,096
|
|
|
57,930
|
|
|
Corporate
|
|
(20,790
|
)
|
|
(26,430
|
)
|
|
(93,590
|
)
|
|
(62,457
|
)
|
|
Total
|
|
$
|
45,363
|
|
|
$
|
50,046
|
|
|
$
|
91,093
|
|
|
$
|
178,638
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PATTERSON COMPANIES, INC.
|
|
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
|
|
(Dollars in thousands, except per share amounts)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended January 26, 2019
|
|
GAAP
|
|
Deal amortization
|
|
Integration andbusinessrestructuringexpenses
|
|
Legal reserve
|
|
Discrete tax matters
|
|
Non-GAAP
|
|
Operating income
|
|
$
|
45,363
|
|
|
$
|
9,274
|
|
$
|
-
|
|
|
$
|
-
|
|
$
|
-
|
|
|
$
|
54,637
|
|
|
Other expense, net
|
|
|
(7,745
|
)
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
|
(7,745
|
)
|
|
Income before taxes
|
|
|
37,618
|
|
|
|
9,274
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
|
46,892
|
|
|
Income tax expense (benefit)
|
|
|
6,564
|
|
|
|
2,219
|
|
|
-
|
|
|
|
-
|
|
|
2,686
|
|
|
|
11,469
|
|
|
Net income
|
|
|
31,054
|
|
|
|
7,055
|
|
|
-
|
|
|
|
-
|
|
|
(2,686
|
)
|
|
|
35,423
|
|
|
Net loss attributable to noncontrolling interests
|
|
|
(171
|
)
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
|
(171
|
)
|
|
Net income attributable to Patterson Companies, Inc.
|
|
$
|
31,225
|
|
|
$
|
7,055
|
|
$
|
-
|
|
|
$
|
-
|
|
$
|
(2,686
|
)
|
|
$
|
35,594
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share attributable to Patterson Companies, Inc.*
|
|
$
|
0.33
|
|
|
$
|
0.08
|
|
$
|
-
|
|
|
$
|
-
|
|
$
|
(0.03
|
)
|
|
$
|
0.38
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income as a % of sales
|
|
|
3.2
|
%
|
|
|
|
|
|
|
|
|
|
|
3.9
|
%
|
|
Effective tax rate
|
|
|
17.4
|
%
|
|
|
|
|
|
|
|
|
|
|
24.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended January 27, 2018
|
|
GAAP
|
|
Deal amortization
|
|
Integration andbusinessrestructuringexpenses
|
|
Legal reserve
|
|
Discrete tax matters
|
|
Non-GAAP
|
|
Operating income
|
|
$
|
50,046
|
|
|
$
|
9,692
|
|
$
|
-
|
|
|
$
|
-
|
|
$
|
-
|
|
|
$
|
59,738
|
|
|
Other expense, net
|
|
|
(9,687
|
)
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
|
(9,687
|
)
|
|
Income before taxes
|
|
|
40,359
|
|
|
|
9,692
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
|
50,051
|
|
|
Income tax expense (benefit)
|
|
|
(68,596
|
)
|
|
|
2,209
|
|
|
(370
|
)
|
|
|
-
|
|
|
77,256
|
|
|
|
10,499
|
|
|
Net income
|
|
|
108,955
|
|
|
|
7,483
|
|
|
370
|
|
|
|
-
|
|
|
(77,256
|
)
|
|
|
39,552
|
|
|
Net loss attributable to noncontrolling interests
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
Net income attributable to Patterson Companies, Inc.
|
|
$
|
108,955
|
|
|
$
|
7,483
|
|
$
|
370
|
|
|
$
|
-
|
|
$
|
(77,256.00
|
)
|
|
$
|
39,552
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share attributable to Patterson Companies, Inc.*
|
|
$
|
1.18
|
|
|
$
|
0.08
|
|
$
|
-
|
|
|
$
|
-
|
|
$
|
(0.83
|
)
|
|
$
|
0.43
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income as a % of sales
|
|
|
3.6
|
%
|
|
|
|
|
|
|
|
|
|
|
4.3
|
%
|
|
Effective tax rate
|
|
|
(170.0
|
)%
|
|
|
|
|
|
|
|
|
|
|
21.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the nine months ended January 26, 2019
|
|
GAAP
|
|
Deal amortization
|
|
Integration andbusinessrestructuringexpenses
|
|
Legal reserve
|
|
Discrete tax matters
|
|
Non-GAAP
|
|
Operating income
|
|
$
|
91,093
|
|
|
$
|
28,955
|
|
$
|
-
|
|
|
$
|
28,263
|
|
$
|
-
|
|
|
$
|
148,311
|
|
|
Other expense, net
|
|
|
(21,228
|
)
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
|
(21,228
|
)
|
|
Income before taxes
|
|
|
69,865
|
|
|
|
28,955
|
|
|
-
|
|
|
|
28,263
|
|
|
-
|
|
|
|
127,083
|
|
|
Income tax expense (benefit)
|
|
|
14,674
|
|
|
|
6,794
|
|
|
-
|
|
|
|
7,523
|
|
|
2,686
|
|
|
|
31,677
|
|
|
Net income
|
|
|
55,191
|
|
|
|
22,161
|
|
|
-
|
|
|
|
20,740
|
|
|
(2,686
|
)
|
|
|
95,406
|
|
|
Net loss attributable to noncontrolling interests
|
|
|
(447
|
)
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
|
(447
|
)
|
|
Net income attributable to Patterson Companies, Inc.
|
|
$
|
55,638
|
|
|
$
|
22,161
|
|
$
|
-
|
|
|
$
|
20,740
|
|
$
|
(2,686
|
)
|
|
$
|
95,853
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share attributable to Patterson Companies, Inc.*
|
|
$
|
0.60
|
|
|
$
|
0.24
|
|
$
|
-
|
|
|
$
|
0.22
|
|
$
|
(0.03
|
)
|
|
$
|
1.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income as a % of sales
|
|
|
2.2
|
%
|
|
|
|
|
|
|
|
|
|
|
3.6
|
%
|
|
Effective tax rate
|
|
|
21.0
|
%
|
|
|
|
|
|
|
|
|
|
|
24.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the nine months ended January 27, 2018
|
|
GAAP
|
|
Deal amortization
|
|
Integration andbusinessrestructuringexpenses
|
|
Legal reserve
|
|
Discrete tax matters
|
|
Non-GAAP
|
|
Operating income
|
|
$
|
178,638
|
|
|
$
|
28,982
|
|
$
|
8,594
|
|
|
$
|
-
|
|
$
|
-
|
|
|
$
|
216,214
|
|
|
Other expense, net
|
|
|
(29,686
|
)
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
|
(29,686
|
)
|
|
Income before taxes
|
|
|
148,952
|
|
|
|
28,982
|
|
|
8,594
|
|
|
|
-
|
|
|
-
|
|
|
|
186,528
|
|
|
Income tax expense (benefit)
|
|
|
(31,094
|
)
|
|
|
8,900
|
|
|
2,879
|
|
|
|
-
|
|
|
77,256
|
|
|
|
57,941
|
|
|
Net income
|
|
|
180,046
|
|
|
|
20,082
|
|
|
5,715
|
|
|
|
-
|
|
|
(77,256
|
)
|
|
|
128,587
|
|
|
Net loss attributable to noncontrolling interests
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
Net income attributable to Patterson Companies, Inc.
|
|
$
|
180,046
|
|
|
$
|
20,082
|
|
$
|
5,715
|
|
|
$
|
-
|
|
$
|
(77,256
|
)
|
|
$
|
128,587
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share attributable to Patterson Companies, Inc.*
|
|
$
|
1.93
|
|
|
$
|
0.22
|
|
$
|
0.06
|
|
|
$
|
-
|
|
$
|
(0.83
|
)
|
|
$
|
1.38
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income as a % of sales
|
|
|
4.4
|
%
|
|
|
|
|
|
|
|
|
|
|
5.3
|
%
|
|
Effective tax rate
|
|
|
(20.9
|
)%
|
|
|
|
|
|
|
|
|
|
|
31.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* May not sum due to rounding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20190228005195/en/
