EX-99 2 d769425dex99.htm EX-99 EX-99

Exhibit 99

 

PATTERSON COMPANIES | 1031 Mendota Heights Road | Saint Paul, MN 55120    NEWS RELEASE

PATTERSON COMPANIES REPORTS FISCAL 2019

FOURTH-QUARTER AND YEAR-END OPERATING RESULTS

 

   

Delivered fourth consecutive quarter of year-over-year sales growth. Fourth-quarter reported net sales increased 2.6 percent to $1.4 billion and internal sales increased 4.1 percent.

 

   

Animal Health segment internal sales increased 4.1 percent, representing continued strong performance in both Companion Animal and Production Animal businesses.

 

   

Dental segment internal sales increased 4.2 percent, marking second consecutive quarter of year-over-year sales growth.

 

   

Returned to EPS growth with fourth-quarter GAAP earnings of $0.30 per diluted share, up 30 percent, and adjusted earnings1 of $0.37 per diluted share, up 23 percent.

 

   

Issues fiscal 2020 GAAP earnings guidance of $0.99 to $1.09 per diluted share and adjusted earnings1 range of $1.33 to $1.43 per diluted share.

St. Paul, Minn. — June 27, 2019 — 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 fourth quarter ended April 27, 2019, an increase of 2.6 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 4.1 percent.

Reported net income attributable to Patterson Companies, Inc. for the fourth quarter of fiscal year 2019 was $28.0 million, or $0.30 per diluted share, compared to $20.9 million, or $0.23 per diluted share, in last year’s fiscal fourth quarter. Adjusted net income1 attributable to Patterson Companies, Inc., which excludes deal amortization costs and discrete tax matters, totaled $35.0 million for the fourth quarter of fiscal 2019, or $0.37 per diluted share, compared to $28.2 million in the same quarter last year, or $0.30 per diluted share.

“Patterson’s fourth quarter and fiscal 2019 results reflect continued top line growth and improved profitability trends throughout the year, enabling us to deliver on our earnings expectations while making continued necessary investments in our people, technology and services,” said Mark Walchirk, President and CEO of Patterson Companies. “Through the execution of our strategic priorities, we have successfully stabilized our core business and returned both of our segments to growth. We continued to drive strong performance in both the companion and production animal businesses, and we achieved our second consecutive quarter of year-over-year revenue growth in Dental, fueled by strong growth across the equipment category. We are pleased with Patterson’s performance during the first full year of our three-year plan, and we are positioned to build momentum behind our improved performance going forward.”

Patterson Animal Health

Reported net sales in our Animal Health segment for the fourth quarter of fiscal 2019, which comprised approximately 60 percent of the company’s total sales, were $866.4 million compared to $848.0 million in the same quarter last year. Internal sales for the segment increased 4.1 percent from the fiscal 2018 fourth quarter.

Patterson Dental

Reported net sales in our Dental segment for the fourth quarter of fiscal 2019, which represented approximately 40 percent of total company sales, were $563.5 million compared to $545.8 million in the same quarter last year. Internal sales increased 4.2 percent compared to the fiscal 2018 fourth quarter.

Balance Sheet and Capital Allocation

For fiscal 2019, Patterson Companies generated $48.2 million of cash from operating activities and collected deferred purchase price receivables of $402.4 million for a total of $450.6 million, compared to a total of $228.5 million in fiscal 2018. During fiscal 2019, debt was reduced by $265.5 million and cash grew by $32.7 million.

 

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PATTERSON COMPANIES | 1031 Mendota Heights Road | Saint Paul, MN 55120    NEWS RELEASE

 

In the fourth quarter of fiscal 2019, Patterson Companies paid $24.7 million in cash dividends to shareholders. During fiscal 2019, Patterson returned $99.5 million in cash dividends to shareholders.

Fiscal 2019 Results

Consolidated net sales for fiscal 2019 totaled $5.6 billion, a 2.0 percent year-over-year increase. Reported net income attributable to Patterson Companies, Inc. was $83.6 million, or $0.89 per diluted share, compared to $201.0 million, or $2.16 per diluted share in fiscal 2018. The fiscal 2018 period included the recognition of a provisional tax benefit of $76.6 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 settlement of certain purported class action antitrust litigation.

Adjusted net income1 attributable to Patterson Companies, Inc. for fiscal 2019, which excludes deal amortization costs, integration and business restructuring costs, legal reserve costs and discrete tax matters, totaled $130.9 million, or $1.40 per diluted share, compared to adjusted net income of $156.8 million, or $1.68 per diluted share, in fiscal 2018.

FY2020 Guidance

Patterson Companies today announced its fiscal 2020 earnings guidance, which is provided on both a GAAP and non-GAAP adjusted1 basis:

 

   

GAAP earnings are expected to be in the range of $0.99 to $1.09 per diluted share.

 

   

Non-GAAP adjusted earnings1 are expected to be in the range of $1.33 to $1.43 per diluted share.

 

   

Our non-GAAP adjusted earnings1 guidance excludes the after-tax impact of:

 

   

Deal amortization expenses of approximately $28.7 million ($0.32 per diluted share).

 

   

Integration and business restructuring expenses of approximately $1.4 million ($0.02 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 2019.

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 fourth-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

 

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PATTERSON COMPANIES | 1031 Mendota Heights Road | Saint Paul, MN 55120    NEWS RELEASE

 

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.

Fourth-Quarter Conference Call and Replay

Patterson Companies’ fiscal 2019 fourth-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 fourth-quarter conference call can be heard for one week at 800-585-8367 and by providing the Conference ID 8389409 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.

 

 

 

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

 

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PATTERSON COMPANIES | 1031 Mendota Heights Road | Saint Paul, MN 55120    NEWS RELEASE

 

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

# # #

 

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PATTERSON COMPANIES | 1031 Mendota Heights Road | Saint Paul, MN 55120    NEWS RELEASE

 

PATTERSON COMPANIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except per share amounts)

(Unaudited)

 

     Three Months Ended     Twelve Months Ended  
     April 27,
2019
    April 28,
2018
    April 27,
2019
    April 28,
2018
 

Net sales

   $ 1,436,706     $ 1,400,609     $ 5,574,523     $ 5,465,683  

Gross profit

     312,527       289,839       1,190,775       1,199,366  

Operating expenses

     265,904       248,588       1,053,059       979,477  
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     46,623       41,251       137,716       219,889  

Other income (expense):

        

Other income (expense), net

     (443     1,349       8,178       6,117  

Interest expense

     (9,817     (12,289     (39,666     (46,743
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before taxes

     36,363       30,311       106,228       179,263  

Income tax expense (benefit)

     8,678       9,383       23,352       (21,711
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

     27,685       20,928       82,876       200,974  

Net loss attributable to noncontrolling interests

     (305     —         (752     —    
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to Patterson Companies, Inc.

   $ 27,990     $ 20,928     $ 83,628     $ 200,974  
  

 

 

   

 

 

   

 

 

   

 

 

 

Earnings per share attributable to Patterson Companies, Inc.:

        

Basic

   $ 0.30     $ 0.23     $ 0.90     $ 2.17  
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

   $ 0.30     $ 0.23     $ 0.89     $ 2.16  
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average shares:

        

Basic

     92,990       91,846       92,755       92,467  

Diluted

     93,899       92,446       93,484       93,094  

Dividends declared per common share

   $ 0.26     $ 0.26     $ 1.04     $ 1.04  

 

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PATTERSON COMPANIES | 1031 Mendota Heights Road | Saint Paul, MN 55120    NEWS RELEASE

 

PATTERSON COMPANIES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)

 

     April 27,
2019
     April 28,
2018
 

ASSETS

     

Current assets:

     

Cash and cash equivalents

   $ 95,646      $ 62,984  

Receivables, net

     582,094        826,877  

Inventory

     761,018        779,834  

Prepaid expenses and other current assets

     165,605        103,029  
  

 

 

    

 

 

 

Total current assets

     1,604,363        1,772,724  

Property and equipment, net

     305,790        290,590  

Goodwill and identifiable intangibles, net

     1,167,379        1,205,401  

Long-term receivables, net and other

     191,737        202,949  
  

 

 

    

 

 

 

Total assets

   $ 3,269,269      $ 3,471,664  
  

 

 

    

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

     

Current liabilities:

     

Accounts payable

   $ 648,418      $ 610,368  

Other accrued liabilities

     203,319        205,415  

Current maturities of long-term debt

     23,975        76,598  

Borrowings on revolving credit

     —          16,000  
  

 

 

    

 

 

 

Total current liabilities

     875,712        908,381  

Long-term debt

     725,341        922,030  

Other non-current liabilities

     187,709        179,463  
  

 

 

    

 

 

 

Total liabilities

     1,788,762        2,009,874  

Stockholders’ equity

     1,480,507        1,461,790  
  

 

 

    

 

 

 

Total liabilities and stockholders’ equity

   $ 3,269,269      $ 3,471,664  
  

 

 

    

 

 

 

 

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PATTERSON COMPANIES | 1031 Mendota Heights Road | Saint Paul, MN 55120    NEWS RELEASE

 

PATTERSON COMPANIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

 

     Twelve Months Ended  
     April 27,
2019
    April 28,
2018
 

Operating activities:

    

Net income

   $ 82,876     $ 200,974  

Adjustments to reconcile net income to net cash provided by operating activities:

    

Depreciation and amortization

     82,773       83,816  

Non-cash employee compensation

     33,425       36,532  

Deferred consideration in securitized receivables

     (402,367     (49,650

Change in assets and liabilities, net of acquired

     251,451       (92,777
  

 

 

   

 

 

 

Net cash provided by operating activities

     48,158       178,895  

Investing activities:

    

Additions to property and equipment

     (60,734     (43,263

Collection of deferred purchase price receivables

     402,367       49,650  

Other investing activities

     (906     10,600  
  

 

 

   

 

 

 

Net cash provided by investing activities

     340,727       16,987  

Financing activities:

    

Dividends paid

     (99,468     (99,199

Repurchases of common stock

     —         (87,500

Proceeds from issuance of long-term debt, net

     —         150,000  

Retirement of long-term debt

     (249,542     (164,754

Payment on revolving credit

     (16,000     (43,000

Other financing activities

     9,764       14,291  
  

 

 

   

 

 

 

Net cash used in financing activities

     (355,246     (230,162

Effect of exchange rate changes on cash

     (977     2,305  
  

 

 

   

 

 

 

Net change in cash and cash equivalents

     32,662       (31,975

Cash and cash equivalents at beginning of period

     62,984       94,959  
  

 

 

   

 

 

 

Cash and cash equivalents at end of period

   $ 95,646     $ 62,984  
  

 

 

   

 

 

 

 

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PATTERSON COMPANIES | 1031 Mendota Heights Road | Saint Paul, MN 55120    NEWS RELEASE

 

PATTERSON COMPANIES, INC.

SALES SUMMARY

(Dollars in thousands)

(Unaudited)

 

Three Months Ended

   April 27,
2019
     April 28,
2018
     Total
Sales
Growth
    Foreign
Exchange
Impact
    Other (a)     Internal
Sales
Growth
 

Consolidated net sales

              

Consumable

   $ 1,154,802      $ 1,145,258        0.8     (1.3 )%      (0.3 )%      2.4

Equipment and software

     190,536        168,393        13.1       (1.1     —         14.2  

Other

     91,368        86,958        5.1       (0.9     —         6.0  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 1,436,706      $ 1,400,609        2.6     (1.3 )%      (0.2 )%      4.1
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Dental

              

Consumable

   $ 312,061      $ 317,951        (1.9 )%      (1.0 )%      —       (0.9 )% 

Equipment and software

     174,572        155,979        11.9       (1.2     —         13.1  

Other

     76,844        71,834        7.0       (0.8     —         7.8  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 563,477      $ 545,764        3.2     (1.0 )%      —       4.2
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Animal Health

              

Consumable

   $ 842,741      $ 827,307        1.9     (1.5 )%      (0.4 )%      3.8

Equipment and software

     15,964        12,414        28.6       —         —         28.6  

Other

     7,706        8,257        (6.7     (2.6     —         (4.1
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 866,411      $ 847,978        2.2     (1.5 )%      (0.4 )%      4.1
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Corporate

              

Other

   $ 6,818      $ 6,867        (0.7 )%      —       —       (0.7 )% 
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 6,818      $ 6,867        (0.7 )%      —       —       (0.7 )% 
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

 

(a) 

Sales of certain products previously recognized on a gross basis were recognized on a net basis during the three and twelve months ended April 27, 2019.

 

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PATTERSON COMPANIES | 1031 Mendota Heights Road | Saint Paul, MN 55120    NEWS RELEASE

 

PATTERSON COMPANIES, INC.

SALES SUMMARY

(Dollars in thousands)

(Unaudited)

 

Twelve Months Ended

   April 27,
2019
     April 28,
2018
     Total
Sales
Growth
    Foreign
Exchange
Impact
    Other (a)     Internal
Sales
Growth
 

Consolidated net sales

              

Consumable

   $ 4,482,016      $ 4,415,643        1.5     (0.5 )%      (0.2 )%      2.2

Equipment and software

     753,805        709,253        6.3       (0.3     —         6.6  

Other

     338,702        340,787        (0.6     (0.2     —         (0.4
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 5,574,523      $ 5,465,683        2.0     (0.4 )%      (0.2 )%      2.6
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Dental

              

Consumable

   $ 1,214,814      $ 1,251,642        (2.9 )%      (0.2 )%      —       (2.7 )% 

Equipment and software

     694,864        660,355        5.2       (0.3     —         5.5  

Other

     282,112        284,081        (0.7     (0.2     —         (0.5
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 2,191,790      $ 2,196,078        (0.2 )%      (0.2 )%      —       —  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Animal Health

              

Consumable

   $ 3,267,202      $ 3,164,001        3.3     (0.6 )%      (0.3 )%      4.2

Equipment and software

     58,941        48,898        20.5       —         —         20.5  

Other

     28,385        29,665        (4.3     (0.8     —         (3.5
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 3,354,528      $ 3,242,564        3.5     (0.6 )%      (0.3 )%      4.4
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Corporate

              

Other

   $ 28,205      $ 27,041        4.3     —       —       4.3
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 28,205      $ 27,041        4.3     —       —       4.3
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

 

(a) 

Sales of certain products previously recognized on a gross basis were recognized on a net basis during the three and twelve months ended April 27, 2019.

 

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PATTERSON COMPANIES | 1031 Mendota Heights Road | Saint Paul, MN 55120    NEWS RELEASE

 

PATTERSON COMPANIES, INC.

OPERATING INCOME BY SEGMENT

(In thousands)

(Unaudited)

 

     Three Months Ended     Twelve Months Ended  
     April 27,
2019
    April 28,
2018
    April 27,
2019
    April 28,
2018
 

Operating income (loss)

        

Dental

   $ 50,649     $ 46,036     $ 179,236     $ 229,201  

Animal Health

     25,376       20,128       81,472       78,058  

Corporate

     (29,402     (24,913     (122,992     (87,370
  

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 46,623     $ 41,251     $ 137,716     $ 219,889  
  

 

 

   

 

 

   

 

 

   

 

 

 

 

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PATTERSON COMPANIES | 1031 Mendota Heights Road | Saint Paul, MN 55120    NEWS RELEASE

 

PATTERSON COMPANIES, INC.

RECONCILIATION OF GAAP TO NON-GAAP MEASURES

(Dollars in thousands, except per share amounts)

(Unaudited)

 

For the three months ended April 27, 2019

   GAAP     Deal
amortization
     Integration and
business
restructuring
expenses
     Legal reserve      Discrete tax
matters
    Non-GAAP  

Operating income

   $ 46,623     $ 9,238      $ —        $ —        $ —       $ 55,861  

Other expense, net

     (10,260     —          —          —          —         (10,260
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Income before taxes

     36,363       9,238        —          —          —         45,601  

Income tax expense (benefit)

     8,678       2,198        —          —          —         10,876  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Net income

     27,685       7,040        —          —          —         34,725  

Net loss attributable to noncontrolling interests

     (305     —          —          —          —         (305
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Net income attributable to Patterson Companies, Inc.

   $ 27,990     $ 7,040      $ —        $ —        $ —       $ 35,030  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

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

   $ 0.30     $ 0.07      $ —        $ —        $ —       $ 0.37  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Operating income as a % of sales

     3.2                3.9

Effective tax rate

     23.9                23.9

For the three months ended April 28, 2018

   GAAP     Deal
amortization
     Integration and
business
restructuring
expenses
     Legal reserve      Discrete tax
matters
    Non-GAAP  

Operating income

   $ 41,251     $ 9,533      $ —        $ —        $ —       $ 50,784  

Other expense, net

     (10,940     —          —          —          —         (10,940
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Income before taxes

     30,311       9,533        —          —          —         39,844  

Income tax expense (benefit)

     9,383       2,893        —          —          (608     11,668  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Net income

     20,928       6,640        —          —          608       28,176  

Net loss attributable to noncontrolling interests

     —         —          —          —          —         —    
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Net income attributable to Patterson Companies, Inc.

   $ 20,928     $ 6,640      $ —        $ —        $ 608     $ 28,176  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

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

   $ 0.23     $ 0.07      $ —        $ —        $ 0.01     $ 0.30  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Operating income as a % of sales

     2.9                3.6

Effective tax rate

     31.0                29.3

 

*

May not sum due to rounding

 

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PATTERSON COMPANIES | 1031 Mendota Heights Road | Saint Paul, MN 55120    NEWS RELEASE

 

PATTERSON COMPANIES, INC.

RECONCILIATION OF GAAP TO NON-GAAP MEASURES

(Dollars in thousands, except per share amounts)

(Unaudited)

 

For the twelve months ended April 27, 2019

   GAAP     Deal
amortization
     Integration and
business
restructuring
expenses
     Legal reserve      Discrete tax
matters
    Non-GAAP  

Operating income

   $ 137,716     $ 38,193      $ —        $ 28,263      $ —       $ 204,172  

Other expense, net

     (31,488     —          —          —          —         (31,488
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Income before taxes

     106,228       38,193        —          28,263        —         172,684  

Income tax expense (benefit)

     23,352       8,992        —          7,523        2,686       42,553  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Net income

     82,876       29,201        —          20,740        (2,686     130,131  

Net loss attributable to noncontrolling interests

     (752     —          —          —          —         (752
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Net income attributable to Patterson Companies, Inc.

   $ 83,628     $ 29,201      $ —        $ 20,740      $ (2,686   $ 130,883  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

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

   $ 0.89     $ 0.31      $ —        $ 0.22      $ (0.03   $ 1.40  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Operating income as a % of sales

     2.5                3.7

Effective tax rate

     22.0                24.6

For the twelve months ended April 28, 2018

   GAAP     Deal
amortization
     Integration and
business
restructuring
expenses
     Legal reserve      Discrete tax
matters
    Non-GAAP  

Operating income

   $ 219,889     $ 38,515      $ 8,594      $ —        $ —       $ 266,998  

Other expense, net

     (40,626     —          —          —          —         (40,626
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Income before taxes

     179,263       38,515        8,594        —          —         226,372  

Income tax expense (benefit)

     (21,711     11,793        2,879        —          76,648       69,609  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Net income

     200,974       26,722        5,715        —          (76,648     156,763  

Net loss attributable to noncontrolling interests

     —         —          —          —          —         —    
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Net income attributable to Patterson Companies, Inc.

   $ 200,974     $ 26,722      $ 5,715      $ —        $ (76,648   $ 156,763  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

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

   $ 2.16     $ 0.29      $ 0.06      $ —        $ (0.82   $ 1.68  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Operating income as a % of sales

     4.0                4.9

Effective tax rate

     (12.1 )%                 30.7

 

*

May not sum due to rounding

 

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