Patterson Companies Reports Fiscal 2024 Third Quarter Operating Results
-
Third quarter reported net sales increased 1.0 percent year-over-year to
$1.62 billion . - Internal sales increased 0.3 percent year-over-year, driven by dental consumables growth of 6.3 percent; excluding certain infection control products, internal sales of dental consumables increased 7.2 percent year-over-year.
-
Delivered third quarter GAAP earnings of
$0.52 per diluted share and adjusted earnings of$0.59 per diluted share. -
Returned
$148.8 million to shareholders through dividends and share repurchases. -
Revises fiscal 2024 GAAP earnings guidance to
$1.99 to$2.04 per diluted share and adjusted earnings1 guidance to$2.30 to$2.35 per diluted share.
“Patterson navigated a dynamic environment during our fiscal third quarter to deliver sales growth and gross margin expansion,” said
“We have revised our guidance to reflect current expectations for the fourth quarter, including continued headwinds in the dental equipment market. During the fiscal third quarter, we remained focused on enhancing our long-term performance, including strategic investments in our capabilities and additional actions to enhance profitability. Our continued commitment to return capital to shareholders – including nearly
Third Quarter Fiscal 2024 Results
Consolidated net sales were
Reported net income attributable to
Patterson Dental
Reported net sales in the Dental segment for the third quarter of fiscal 2024 were
Reported net sales in the
Balance Sheet and Capital Allocation
During the first nine months of fiscal 2024,
In the third quarter of fiscal 2024, Patterson declared a quarterly cash dividend of
Year-to-Date Results
Consolidated reported net sales for the first nine months of fiscal 2024 totaled
Reported net income attributable to
Fiscal 2024 Guidance
-
GAAP earnings are expected to be in the range of
$1.99 to$2.04 per diluted share. -
Non-GAAP adjusted earnings1 are expected to be in the range of
$2.30 to$2.35 per diluted share. -
Our non-GAAP adjusted earnings1 guidance excludes the after-tax impact of:
- Deal amortization expenses of approximately$29.3 million ($0.31 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 the ongoing challenges of inflationary trends and higher interest rates and additional slow-down in the broader economy. Beyond macroeconomic and geopolitical uncertainty, our guidance further assumes that there are no material adverse developments associated with wide-spread public health concerns.
1Non-GAAP Financial Measures
The term “internal sales” used in this release represents net sales adjusted for the effects of currency translation, contributions from recent acquisitions and the net impact of an interest rate swap. 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
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.
The Reconciliation of GAAP to non-GAAP Measures table appearing behind the accompanying financial information is provided to adjust reported GAAP measures, namely net sales, gross profit, operating expenses, operating income, other income (expense), net, income before taxes, income tax expense, net income, net loss attributable to noncontrolling interests, net income attributable to
-
Deal amortization represents non-cash intangible amortization expense, primarily related to the acquisition of
Animal Health International .
-
Interest rate swap -- Our customer financing net sales include the impact of changes in interest rates on deferred purchase price receivables, as the average interest rate in our contract portfolio may not fluctuate at the same rate as interest rate markets, resulting in an increase or reduction of gain on contract sales.
We enter into an interest rate swap to hedge a portion of the related interest rate risk. These agreements do not qualify for hedge accounting, and the gains or losses on an interest rate swap are reported in other income and expense in our condensed consolidated statements of operation and other comprehensive income.
We present a non-GAAP adjustment to reclassify the mark-to-market adjustment on the interest rate swap from other income (expense) to net sales to align the swap impact with the impact on customer financing net sales. We believe adjusted net sales, adjusted gross profit and adjusted operating income, which include the gains and losses on the interest rate swap, provides additional comparability from period to period because they present the impact of interest rate fluctuations, net of the mark-to-market swap adjustment, within adjusted net sales. We note the net impact of interest rate fluctuations has a minimal impact on net income.
Management believes that these non-GAAP measures may provide a helpful representation of the company’s 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.
Third Quarter Conference Call and Replay
Patterson Companies’ fiscal 2024 third quarter conference call will start at
About
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
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: wide-spread public health concerns as we experienced, and may continue to experience, with the COVID-19 pandemic; our dependence on suppliers to manufacture and supply substantially all of the products we sell; potential disruption of distribution capabilities, including service issues with third-party shippers; our dependence on relationships with sales representatives and service technicians to retain customers and develop business; adverse changes in supplier rebates or other purchasing incentives; risks of selling private label products, including the risk of adversely affecting our relationships with suppliers; the risk of technological and market obsolescence for the products we sell; the risk of failing to innovate and develop new and enhanced software and e-services products; our dependence on positive perceptions of Patterson’s reputation; risks associated with illicit human use of pharmaceutical products we distribute; risks inherent in acquiring and disposing of assets or other businesses and risks inherent in integrating acquired businesses; turnover or loss of key personnel or highly skilled employees; risks associated with information systems, software products and cyber-security attacks; risks related to climate change; our ability to comply with restrictive covenants and other limits in our credit agreement; the risk that our governing documents and
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
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
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.
|
|||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||||||||||
(In thousands, except per share amounts) |
|||||||||||||||
(Unaudited) |
|||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Net sales |
$ |
1,616,095 |
|
|
$ |
1,600,850 |
|
|
$ |
4,845,612 |
|
|
$ |
4,750,319 |
|
|
|
|
|
|
|
|
|
||||||||
Gross profit |
|
351,006 |
|
|
|
342,962 |
|
|
|
1,009,087 |
|
|
|
983,184 |
|
|
|
|
|
|
|
|
|
||||||||
Operating expenses |
|
280,994 |
|
|
|
267,040 |
|
|
|
843,950 |
|
|
|
812,323 |
|
|
|
|
|
|
|
|
|
||||||||
Operating income |
|
70,012 |
|
|
|
75,922 |
|
|
|
165,137 |
|
|
|
170,861 |
|
|
|
|
|
|
|
|
|
||||||||
Other income (expense): |
|
|
|
|
|
|
|
||||||||
Other income, net |
|
3,653 |
|
|
|
3,096 |
|
|
|
22,650 |
|
|
|
23,079 |
|
Interest expense |
|
(11,725 |
) |
|
|
(9,731 |
) |
|
|
(31,879 |
) |
|
|
(22,838 |
) |
|
|
|
|
|
|
|
|
||||||||
Income before taxes |
|
61,940 |
|
|
|
69,287 |
|
|
|
155,908 |
|
|
|
171,102 |
|
|
|
|
|
|
|
|
|
||||||||
Income tax expense |
|
14,347 |
|
|
|
15,440 |
|
|
|
37,330 |
|
|
|
39,346 |
|
|
|
|
|
|
|
|
|
||||||||
Net income |
|
47,593 |
|
|
|
53,847 |
|
|
|
118,578 |
|
|
|
131,756 |
|
Net loss attributable to noncontrolling interests |
|
(110 |
) |
|
|
(82 |
) |
|
|
(317 |
) |
|
|
(836 |
) |
Net income attributable to |
$ |
47,703 |
|
|
$ |
53,929 |
|
|
$ |
118,895 |
|
|
$ |
132,592 |
|
|
|
|
|
|
|
|
|
||||||||
Earnings per share attributable to |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
0.52 |
|
|
$ |
0.55 |
|
|
$ |
1.26 |
|
|
$ |
1.37 |
|
Diluted |
$ |
0.52 |
|
|
$ |
0.55 |
|
|
$ |
1.26 |
|
|
$ |
1.35 |
|
|
|
|
|
|
|
|
|
||||||||
Weighted average shares: |
|
|
|
|
|
|
|
||||||||
Basic |
|
92,009 |
|
|
|
97,327 |
|
|
|
94,088 |
|
|
|
96,957 |
|
Diluted |
|
92,519 |
|
|
|
97,977 |
|
|
|
94,704 |
|
|
|
97,881 |
|
|
|
|
|
|
|
|
|
||||||||
Dividends declared per common share |
$ |
0.26 |
|
|
$ |
0.26 |
|
|
$ |
0.78 |
|
|
$ |
0.78 |
|
|
|||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||
(In thousands) |
|||||
(Unaudited) |
|||||
|
|
|
|
||
|
|
|
|
||
ASSETS |
|
|
|
||
Current assets: |
|
|
|
||
Cash and cash equivalents |
$ |
123,998 |
|
$ |
159,669 |
Receivables, net |
|
484,530 |
|
|
477,384 |
Inventory |
|
902,733 |
|
|
795,072 |
Prepaid expenses and other current assets |
|
321,302 |
|
|
351,011 |
Total current assets |
|
1,832,563 |
|
|
1,783,136 |
Property and equipment, net |
|
226,013 |
|
|
212,283 |
Operating lease right-of-use assets, net |
|
108,506 |
|
|
92,956 |
|
|
359,593 |
|
|
388,293 |
Investments |
|
164,459 |
|
|
160,022 |
Long-term receivables, net and other |
|
248,815 |
|
|
242,456 |
Total assets |
$ |
2,939,949 |
|
$ |
2,879,146 |
|
|
|
|
||
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
||
Current liabilities: |
|
|
|
||
Accounts payable |
$ |
683,300 |
|
$ |
724,993 |
Other accrued liabilities |
|
234,151 |
|
|
250,949 |
Operating lease liabilities |
|
31,137 |
|
|
28,390 |
Current maturities of long-term debt |
|
4,125 |
|
|
36,000 |
Borrowings on revolving credit |
|
331,000 |
|
|
45,000 |
Total current liabilities |
|
1,283,713 |
|
|
1,085,332 |
Long-term debt |
|
448,219 |
|
|
451,231 |
Non-current operating lease liabilities |
|
80,499 |
|
|
67,376 |
Other non-current liabilities |
|
155,353 |
|
|
156,672 |
Total liabilities |
|
1,967,784 |
|
|
1,760,611 |
Stockholders' equity |
|
972,165 |
|
|
1,118,535 |
Total liabilities and stockholders' equity |
$ |
2,939,949 |
|
$ |
2,879,146 |
|
|||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||
(In thousands) |
|||||||
(Unaudited) |
|||||||
|
Nine Months Ended |
||||||
|
|
|
|
||||
|
|
|
|
||||
Operating activities: |
|
|
|
||||
Net income |
$ |
118,578 |
|
|
$ |
131,756 |
|
Adjustments to reconcile net income to net cash used in operating activities: |
|
|
|
||||
Depreciation and amortization |
|
65,198 |
|
|
|
62,298 |
|
Non-cash employee compensation |
|
15,395 |
|
|
|
11,349 |
|
Non-cash losses (gains) and other, net |
|
4,120 |
|
|
|
7,227 |
|
Change in assets and liabilities: |
|
|
|
||||
Receivables |
|
(744,275 |
) |
|
|
(729,039 |
) |
Inventory |
|
(106,328 |
) |
|
|
(155,184 |
) |
Accounts payable |
|
(43,533 |
) |
|
|
20,947 |
|
Accrued liabilities |
|
(14,510 |
) |
|
|
(40,909 |
) |
Other changes from operating activities, net |
|
(14,494 |
) |
|
|
(36,642 |
) |
Net cash used in operating activities |
|
(719,849 |
) |
|
|
(728,197 |
) |
Investing activities: |
|
|
|
||||
Additions to property and equipment and software |
|
(51,196 |
) |
|
|
(42,442 |
) |
Collection of deferred purchase price receivables |
|
770,319 |
|
|
|
758,001 |
|
Payments related to acquisitions, net of cash acquired |
|
(1,108 |
) |
|
|
(33,257 |
) |
Payments related to investments |
|
— |
|
|
|
(15,000 |
) |
Net cash provided by investing activities |
|
718,015 |
|
|
|
667,302 |
|
Financing activities: |
|
|
|
||||
Dividends paid |
|
(75,021 |
) |
|
|
(75,954 |
) |
Repurchases of common stock |
|
(214,587 |
) |
|
|
(15,000 |
) |
Payments on long-term debt |
|
(35,250 |
) |
|
|
— |
|
Draw on revolving credit |
|
286,000 |
|
|
|
146,000 |
|
Other financing activities |
|
4,767 |
|
|
|
12,866 |
|
Net cash provided by (used in) financing activities |
|
(34,091 |
) |
|
|
67,912 |
|
Effect of exchange rate changes on cash |
|
254 |
|
|
|
(1,741 |
) |
Net change in cash and cash equivalents |
|
(35,671 |
) |
|
|
5,276 |
|
Cash and cash equivalents at beginning of period |
|
159,669 |
|
|
|
142,014 |
|
Cash and cash equivalents at end of period |
$ |
123,998 |
|
|
$ |
147,290 |
|
|
||||||||||||||||||||
SALES SUMMARY |
||||||||||||||||||||
(Dollars in thousands) |
||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||
|
|
|
|
|
Total
|
|
Foreign
|
|
Net
|
|
Acquisition
|
|
Internal
|
|||||||
Three Months Ended |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Consolidated net sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Consumable |
$ |
1,262,290 |
|
$ |
1,250,859 |
|
0.9 |
% |
|
0.6 |
% |
|
— |
% |
|
0.1 |
% |
|
0.2 |
% |
Equipment |
|
245,262 |
|
|
252,671 |
|
(2.9 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(2.9 |
) |
Value-added services and other |
|
108,543 |
|
|
97,320 |
|
11.5 |
|
|
0.4 |
|
|
(1.7 |
) |
|
3.4 |
|
|
9.4 |
|
Total |
$ |
1,616,095 |
|
$ |
1,600,850 |
|
1.0 |
% |
|
0.5 |
% |
|
(0.1 |
)% |
|
0.3 |
% |
|
0.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Dental |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Consumable |
$ |
350,953 |
|
$ |
330,199 |
|
6.3 |
% |
|
— |
% |
|
— |
% |
|
— |
% |
|
6.3 |
% |
Equipment |
|
211,352 |
|
|
216,642 |
|
(2.4 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(2.4 |
) |
Value-added services and other |
|
74,832 |
|
|
74,955 |
|
(0.2 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(0.2 |
) |
Total |
$ |
637,137 |
|
$ |
621,796 |
|
2.5 |
% |
|
— |
% |
|
— |
% |
|
— |
% |
|
2.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Consumable |
$ |
911,337 |
|
$ |
920,660 |
|
(1.0 |
)% |
|
0.8 |
% |
|
— |
% |
|
0.2 |
% |
|
(2.0 |
)% |
Equipment |
|
33,910 |
|
|
36,029 |
|
(5.9 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(5.9 |
) |
Value-added services and other |
|
22,030 |
|
|
12,689 |
|
73.6 |
|
|
3.0 |
|
|
— |
|
|
26.4 |
|
|
44.2 |
|
Total |
$ |
967,277 |
|
$ |
969,378 |
|
(0.2 |
)% |
|
0.8 |
% |
|
— |
% |
|
0.5 |
% |
|
(1.5 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Corporate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Value-added services and other |
$ |
11,681 |
|
$ |
9,676 |
|
20.7 |
% |
|
— |
% |
|
(16.8 |
)% |
|
— |
% |
|
37.5 |
% |
Total |
$ |
11,681 |
|
$ |
9,676 |
|
20.7 |
% |
|
— |
% |
|
(16.8 |
)% |
|
— |
% |
|
37.5 |
% |
|
||||||||||||||||||||
SALES SUMMARY |
||||||||||||||||||||
(Dollars in thousands) |
||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||
|
|
|
|
|
Total
|
|
Foreign
|
|
Net
|
|
Acquisition
|
|
Internal
|
|||||||
Nine Months Ended |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Consolidated net sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Consumable |
$ |
3,897,378 |
|
$ |
3,813,884 |
|
2.2 |
% |
|
0.6 |
% |
|
— |
% |
|
0.2 |
% |
|
1.4 |
% |
Equipment |
|
639,526 |
|
|
670,502 |
|
(4.6 |
) |
|
(0.1 |
) |
|
— |
|
|
— |
|
|
(4.5 |
) |
Value-added services and other |
|
308,708 |
|
|
265,933 |
|
16.1 |
|
|
0.4 |
|
|
(1.2 |
) |
|
5.2 |
|
|
11.7 |
|
Total |
$ |
4,845,612 |
|
$ |
4,750,319 |
|
2.0 |
% |
|
0.5 |
% |
|
(0.1 |
)% |
|
0.4 |
% |
|
1.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Dental |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Consumable |
$ |
1,049,492 |
|
$ |
1,005,528 |
|
4.4 |
% |
|
(0.2 |
)% |
|
— |
% |
|
— |
% |
|
4.6 |
% |
Equipment |
|
549,028 |
|
|
577,158 |
|
(4.9 |
) |
|
(0.2 |
) |
|
— |
|
|
— |
|
|
(4.7 |
) |
Value-added services and other |
|
232,298 |
|
|
225,950 |
|
2.8 |
|
|
(0.1 |
) |
|
— |
|
|
— |
|
|
2.9 |
|
Total |
$ |
1,830,818 |
|
$ |
1,808,636 |
|
1.2 |
% |
|
(0.2 |
)% |
|
— |
% |
|
— |
% |
|
1.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Consumable |
$ |
2,847,886 |
|
$ |
2,808,356 |
|
1.4 |
% |
|
0.9 |
% |
|
— |
% |
|
0.2 |
% |
|
0.3 |
% |
Equipment |
|
90,498 |
|
|
93,344 |
|
(3.0 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(3.0 |
) |
Value-added services and other |
|
64,505 |
|
|
31,044 |
|
107.8 |
|
|
4.0 |
|
|
— |
|
|
44.3 |
|
|
59.5 |
|
Total |
$ |
3,002,889 |
|
$ |
2,932,744 |
|
2.4 |
% |
|
0.9 |
% |
|
— |
% |
|
0.7 |
% |
|
0.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Corporate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Value-added services and other |
$ |
11,905 |
|
$ |
8,939 |
|
33.2 |
% |
|
— |
% |
|
(35.7 |
)% |
|
— |
% |
|
68.9 |
% |
Total |
$ |
11,905 |
|
$ |
8,939 |
|
33.2 |
% |
|
— |
% |
|
(35.7 |
)% |
|
— |
% |
|
68.9 |
% |
|
|||||||||||||||
OPERATING INCOME BY SEGMENT |
|||||||||||||||
(In thousands) |
|||||||||||||||
(Unaudited) |
|||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Operating income (loss) |
|
|
|
|
|
|
|
||||||||
Dental |
$ |
53,630 |
|
|
$ |
60,302 |
|
|
$ |
147,577 |
|
|
$ |
158,147 |
|
|
|
32,104 |
|
|
|
30,197 |
|
|
|
88,143 |
|
|
|
80,372 |
|
Corporate |
|
(15,722 |
) |
|
|
(14,577 |
) |
|
|
(70,583 |
) |
|
|
(67,658 |
) |
Total |
$ |
70,012 |
|
|
$ |
75,922 |
|
|
$ |
165,137 |
|
|
$ |
170,861 |
|
|
||||||||||||||||
RECONCILIATION OF GAAP TO NON-GAAP MEASURES |
||||||||||||||||
(Dollars in thousands, except per share amounts) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
For the three months ended |
|
GAAP |
|
Deal
|
|
Interest rate
|
|
Non-GAAP |
||||||||
Net sales |
|
$ |
1,616,095 |
|
|
$ |
— |
|
|
$ |
(3,474 |
) |
|
$ |
1,612,621 |
|
Gross profit |
|
|
351,006 |
|
|
|
— |
|
|
|
(3,474 |
) |
|
|
347,532 |
|
Operating expenses |
|
|
280,994 |
|
|
|
(9,630 |
) |
|
|
— |
|
|
|
271,364 |
|
Operating income |
|
|
70,012 |
|
|
|
9,630 |
|
|
|
(3,474 |
) |
|
|
76,168 |
|
Other income (expense), net |
|
|
(8,072 |
) |
|
|
— |
|
|
|
3,474 |
|
|
|
(4,598 |
) |
Income before taxes |
|
|
61,940 |
|
|
|
9,630 |
|
|
|
— |
|
|
|
71,570 |
|
Income tax expense |
|
|
14,347 |
|
|
|
2,304 |
|
|
|
— |
|
|
|
16,651 |
|
Net income |
|
|
47,593 |
|
|
|
7,326 |
|
|
|
— |
|
|
|
54,919 |
|
Net loss attributable to noncontrolling interests |
|
|
(110 |
) |
|
|
— |
|
|
|
— |
|
|
|
(110 |
) |
Net income attributable to |
|
$ |
47,703 |
|
|
$ |
7,326 |
|
|
$ |
— |
|
|
$ |
55,029 |
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted earnings per share attributable to |
|
$ |
0.52 |
|
|
$ |
0.08 |
|
|
$ |
— |
|
|
$ |
0.59 |
|
|
|
|
|
|
|
|
|
|
||||||||
Gross margin |
|
|
21.7 |
% |
|
|
|
|
|
|
21.6 |
% |
||||
Operating margin |
|
|
4.3 |
% |
|
|
|
|
|
|
4.7 |
% |
||||
Effective tax rate |
|
|
23.2 |
% |
|
|
|
|
|
|
23.3 |
% |
||||
|
|
|
|
|
|
|
|
|
||||||||
For the three months ended |
|
GAAP |
|
Deal
|
|
Interest rate
|
|
Non-GAAP |
||||||||
Net sales |
|
$ |
1,600,850 |
|
|
$ |
— |
|
|
$ |
(1,849 |
) |
|
$ |
1,599,001 |
|
Gross profit |
|
|
342,962 |
|
|
|
— |
|
|
|
(1,849 |
) |
|
|
341,113 |
|
Operating expenses |
|
|
267,040 |
|
|
|
(9,482 |
) |
|
|
— |
|
|
|
257,558 |
|
Operating income |
|
|
75,922 |
|
|
|
9,482 |
|
|
|
(1,849 |
) |
|
|
83,555 |
|
Other income (expense), net |
|
|
(6,635 |
) |
|
|
— |
|
|
|
1,849 |
|
|
|
(4,786 |
) |
Income before taxes |
|
|
69,287 |
|
|
|
9,482 |
|
|
|
— |
|
|
|
78,769 |
|
Income tax expense |
|
|
15,440 |
|
|
|
2,272 |
|
|
|
— |
|
|
|
17,712 |
|
Net income |
|
|
53,847 |
|
|
|
7,210 |
|
|
|
— |
|
|
|
61,057 |
|
Net loss attributable to noncontrolling interests |
|
|
(82 |
) |
|
|
— |
|
|
|
— |
|
|
|
(82 |
) |
Net income attributable to |
|
$ |
53,929 |
|
|
$ |
7,210 |
|
|
$ |
— |
|
|
$ |
61,139 |
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted earnings per share attributable to |
|
$ |
0.55 |
|
|
$ |
0.07 |
|
|
$ |
— |
|
|
$ |
0.62 |
|
|
|
|
|
|
|
|
|
|
||||||||
Gross margin |
|
|
21.4 |
% |
|
|
|
|
|
|
21.3 |
% |
||||
Operating margin |
|
|
4.7 |
% |
|
|
|
|
|
|
5.2 |
% |
||||
Effective tax rate |
|
|
22.3 |
% |
|
|
|
|
|
|
22.5 |
% |
||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
* May not sum due to rounding |
|
|
|
|
|
|
|
|
|
||||||||||||||||
RECONCILIATION OF GAAP TO NON-GAAP MEASURES |
||||||||||||||||
(Dollars in thousands, except per share amounts) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
For the nine months ended |
|
GAAP |
|
Deal
|
|
Interest rate
|
|
Non-GAAP |
||||||||
Net sales |
|
$ |
4,845,612 |
|
|
$ |
— |
|
|
$ |
6,087 |
|
|
$ |
4,851,699 |
|
Gross profit |
|
|
1,009,087 |
|
|
|
— |
|
|
|
6,087 |
|
|
|
1,015,174 |
|
Operating expenses |
|
|
843,950 |
|
|
|
(28,884 |
) |
|
|
— |
|
|
|
815,066 |
|
Operating income |
|
|
165,137 |
|
|
|
28,884 |
|
|
|
6,087 |
|
|
|
200,108 |
|
Other income (expense), net |
|
|
(9,229 |
) |
|
|
— |
|
|
|
(6,087 |
) |
|
|
(15,316 |
) |
Income before taxes |
|
|
155,908 |
|
|
|
28,884 |
|
|
|
— |
|
|
|
184,792 |
|
Income tax expense |
|
|
37,330 |
|
|
|
6,913 |
|
|
|
— |
|
|
|
44,243 |
|
Net income |
|
|
118,578 |
|
|
|
21,971 |
|
|
|
— |
|
|
|
140,549 |
|
Net loss attributable to noncontrolling interests |
|
|
(317 |
) |
|
|
— |
|
|
|
— |
|
|
|
(317 |
) |
Net income attributable to |
|
$ |
118,895 |
|
|
$ |
21,971 |
|
|
$ |
— |
|
|
$ |
140,866 |
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted earnings per share attributable to |
|
$ |
1.26 |
|
|
$ |
0.23 |
|
|
$ |
— |
|
|
$ |
1.49 |
|
|
|
|
|
|
|
|
|
|
||||||||
Gross margin |
|
|
20.8 |
% |
|
|
|
|
|
|
20.9 |
% |
||||
Operating margin |
|
|
3.4 |
% |
|
|
|
|
|
|
4.1 |
% |
||||
Effective tax rate |
|
|
23.9 |
% |
|
|
|
|
|
|
23.9 |
% |
||||
|
|
|
|
|
|
|
|
|
||||||||
For the nine months ended |
|
GAAP |
|
Deal
|
|
Interest rate
|
|
Non-GAAP |
||||||||
Net sales |
|
$ |
4,750,319 |
|
|
$ |
— |
|
|
$ |
9,275 |
|
|
$ |
4,759,594 |
|
Gross profit |
|
|
983,184 |
|
|
|
— |
|
|
|
9,275 |
|
|
|
992,459 |
|
Operating expenses |
|
|
812,323 |
|
|
|
(28,160 |
) |
|
|
— |
|
|
|
784,163 |
|
Operating income |
|
|
170,861 |
|
|
|
28,160 |
|
|
|
9,275 |
|
|
|
208,296 |
|
Other income (expense), net |
|
|
241 |
|
|
|
— |
|
|
|
(9,275 |
) |
|
|
(9,034 |
) |
Income before taxes |
|
|
171,102 |
|
|
|
28,160 |
|
|
|
— |
|
|
|
199,262 |
|
Income tax expense |
|
|
39,346 |
|
|
|
6,746 |
|
|
|
— |
|
|
|
46,092 |
|
Net income |
|
|
131,756 |
|
|
|
21,414 |
|
|
|
— |
|
|
|
153,170 |
|
Net loss attributable to noncontrolling interests |
|
|
(836 |
) |
|
|
— |
|
|
|
— |
|
|
|
(836 |
) |
Net income attributable to |
|
$ |
132,592 |
|
|
$ |
21,414 |
|
|
$ |
— |
|
|
$ |
154,006 |
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted earnings per share attributable to |
|
$ |
1.35 |
|
|
$ |
0.22 |
|
|
$ |
— |
|
|
$ |
1.57 |
|
|
|
|
|
|
|
|
|
|
||||||||
Gross margin |
|
|
20.7 |
% |
|
|
|
|
|
|
20.9 |
% |
||||
Operating margin |
|
|
3.6 |
% |
|
|
|
|
|
|
4.4 |
% |
||||
Effective tax rate |
|
|
23.0 |
% |
|
|
|
|
|
|
23.1 |
% |
||||
|
|
|
|
|
|
|
|
|
||||||||
* May not sum due to rounding |
|
|
|
|
|
|
|
|||||||
FREE CASH FLOW |
|||||||
(In thousands) |
|||||||
(Unaudited) |
|||||||
|
Nine Months Ended |
||||||
|
|
|
|
||||
Net cash used in operating activities |
$ |
(719,849 |
) |
|
$ |
(728,197 |
) |
Additions to property and equipment and software |
|
(51,196 |
) |
|
|
(42,442 |
) |
Collection of deferred purchase price receivables |
|
770,319 |
|
|
|
758,001 |
|
Free cash flow |
$ |
(726 |
) |
|
$ |
(12,638 |
) |
|
|
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240228516796/en/
INVESTOR
COMPANY:
TEL: 651.686.1364
EMAIL: investor.relations@pattersoncompanies.com
MEDIA:
COMPANY:
TEL: 651.905.3349
EMAIL: corporate.communications@pattersoncompanies.com
Source: