Patterson Companies, Inc. (PDCO) is well poised for growth in the coming quarters, courtesy of its broad product line. The optimism, led by a strong performance of certain business segments during third-quarter fiscal 2024 and a few notable acquisitions, is expected to contribute further. Integration risks and stiff competitive forces persist.Shares of this Zacks Rank #3 (Hold) company have lost 3.9% year to date against the industry’s 6% growth. The S&P 500 Index has increased 9.6% during the same time fra ...

ST. PAUL, Minn.--(BUSINESS WIRE)--On March 11, 2024, the Board of Directors of Patterson Companies, Inc. (Nasdaq: PDCO) approved a new share repurchase authorization for the repurchase of up to $500 million of the company’s common stock through March 16, 2027, replacing a prior authorization which was expiring and under which there was $194.9 million remaining. The Board also declared a quarterly cash dividend of $0.26 per share. The dividend will be payable on, or about, May 3, 2024, to shareholders of re ...

ST. PAUL, Minn.--(BUSINESS WIRE)--Patterson Dental has an alternative solution to restore insurance claims processing for Eaglesoft customers. The recent cyber incident impacting Change Healthcare resulted in many dental practices being unable to process insurance claims, which has had a tremendous impact on customers. To restore business continuity for our customers, Patterson has expanded our Eaglesoft claims processing and insurance services to include Vyne Dental. Our collaboration with Vyne Dental w ...

Financial Performance - Consolidated net sales increased by 10% year-over-year to $1616095 thousand from $1600850 thousand[23] - Internal sales increased 03% year-over-year, driven by dental consumables growth of 63%[19] - Q3 Fiscal 2024 GAAP earnings were $052 per diluted share, and adjusted earnings were $059 per diluted share[19] - The company returned $1488 million to shareholders through dividends and share repurchases[19] Segment Performance - Dental - Total dental sales increased by 25%, with consumables up by 63% and equipment down by 24%[28] - Adjusted operating margin for Patterson Dental was 89%, a decrease of 130 bps year-over-year[29] Segment Performance - Animal Health - Total Animal Health sales decreased by 02%, with consumables down by 10% and equipment down by 59%[31] - Value Added Services and Other in Animal Health increased significantly by 736%[31] - Adjusted operating margin for Patterson Animal Health was 44%, an increase of 20 bps year-over-year[38] Cash Flow and Capital Allocation - Free cash flow for the nine months ended January 27, 2024, was negative $726 thousand[33] - Share repurchases totaled $1241 million in Q3 FY'24 and $2146 million year-to-date[43] - Dividends paid were $247 million in Q3 FY'24 and $750 million year-to-date[35] Fiscal Year 2024 Guidance - Revised fiscal 2024 GAAP earnings guidance to $199 to $204 per diluted share and adjusted earnings guidance to $230 to $235 per diluted share[20] - The non-GAAP adjusted earnings guidance excludes deal amortization expenses of approximately $293 million ($031 per diluted share)[46]

Patterson Cos. (PDCO) reported $1.62 billion in revenue for the quarter ended January 2024, representing a year-over-year increase of 1%. EPS of $0.59 for the same period compares to $0.62 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $1.63 billion, representing a surprise of -1.02%. The company delivered an EPS surprise of -1.67%, with the consensus EPS estimate being $0.60.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall St ...

Patterson Companies, Inc. (PDCO) reported third-quarter fiscal 2024 adjusted earnings per share (EPS) of 59 cents, which missed the Zacks Consensus Estimate of 60 cents by 1.7%. The bottom line declined 4.8% from the prior-year quarter’s level.GAAP EPS in the quarter was 52 cents, down 5.5% from that recorded in the year-ago period.Revenue DetailsNet sales in the quarter were $1.62 billion, which lagged the Zacks Consensus Estimate by 0.6%. However, the top line improved 1% year over year. Internal sales, a ...

Patterson Cos. (PDCO) came out with quarterly earnings of $0.59 per share, missing the Zacks Consensus Estimate of $0.60 per share. This compares to earnings of $0.62 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -1.67%. A quarter ago, it was expected that this medical supplies maker would post earnings of $0.59 per share when it actually produced earnings of $0.50, delivering a surprise of -15.25%.Over the last four quarter ...

[Patterson Companies Fiscal 2024 Third Quarter Operating Results](index=1&type=section&id=Patterson%20Companies%20Fiscal%202024%20Third%20Quarter%20Operating%20Results) [Financial Highlights](index=1&type=section&id=Financial%20Highlights) The company reported a 1.0% net sales increase to $1.62 billion, returned $148.8 million to shareholders, and revised its fiscal 2024 earnings guidance downwards Q3 FY2024 Financial Metrics | Metric | Q3 FY2024 Value | | :--- | :--- | | Reported Net Sales | $1.62 billion (+1.0% YoY) | | Internal Sales Growth | +0.3% YoY | | GAAP EPS (diluted) | $0.52 | | Adjusted EPS (diluted) | $0.59 | | Capital Returned to Shareholders | $148.8 million | - The company revised its fiscal 2024 GAAP earnings guidance to a range of **$1.99 to $2.04** per diluted share and its adjusted earnings guidance to **$2.30 to $2.35** per diluted share[8](index=8&type=chunk) - Internal sales growth was primarily driven by a **6.3% increase in dental consumables**, which grew **7.2% year-over-year** excluding certain infection control products[8](index=8&type=chunk) [Consolidated Financial Performance](index=1&type=section&id=Consolidated%20Financial%20Performance) Consolidated net sales grew for Q3 and the first nine months, but net income declined in both periods due to lower equipment sales and higher expenses [Third Quarter Fiscal 2024 Results](index=1&type=section&id=Third%20Quarter%20Fiscal%202024%20Results) Q3 Performance Comparison | Metric | Q3 FY2024 | Q3 FY2023 | | :--- | :--- | :--- | | Consolidated Net Sales | $1.62 billion | $1.60 billion | | Reported Net Income | $47.7 million | $53.9 million | | Reported Diluted EPS | $0.52 | $0.55 | | Adjusted Net Income | $55.0 million | $61.1 million | | Adjusted Diluted EPS | $0.59 | $0.62 | - The year-over-year decrease in both reported and adjusted net income was primarily attributed to **lower sales of dental equipment and increased operating expenses**[6](index=6&type=chunk) - Internal sales, which adjust for currency, acquisitions, and interest rate swaps, **increased by 0.3%** compared to the prior year[5](index=5&type=chunk) [Year-to-Date Results](index=2&type=section&id=Year-to-Date%20Results) Nine-Month Performance Comparison | Metric | First 9 Months FY2024 | First 9 Months FY2023 | | :--- | :--- | :--- | | Consolidated Net Sales | $4.85 billion | $4.75 billion | | Reported Net Income | $118.9 million | $132.6 million | | Reported Diluted EPS | $1.26 | $1.35 | | Adjusted Net Income | $140.9 million | $154.0 million | | Adjusted Diluted EPS | $1.49 | $1.57 | - For the first nine months of fiscal 2024, internal sales **increased by 1.2%** year-over-year[12](index=12&type=chunk) [Segment Performance](index=1&type=section&id=Segment%20Performance) The Dental segment's internal sales grew 2.5% driven by consumables, while the Animal Health segment's internal sales declined 1.5% due to weakness in the companion animal business [Patterson Dental](index=1&type=section&id=Patterson%20Dental) - The Dental segment's reported net sales were **$637.1 million** in Q3 FY2024, with internal sales **increasing by 2.5%** compared to the prior year[7](index=7&type=chunk) Dental Internal Sales Growth (Q3 YoY) | Category | % Change | | :--- | :--- | | Consumables | +6.3% | | Equipment | -2.4% | | Value-Added Services | -0.2% | - Excluding the deflationary impact of certain infection control products, internal sales of consumables grew even stronger at **7.2% year-over-year**[7](index=7&type=chunk) [Patterson Animal Health](index=2&type=section&id=Patterson%20Animal%20Health) - The Animal Health segment's reported net sales were **$967.3 million** in Q3 FY2024, with internal sales **decreasing by 1.5%** year-over-year[9](index=9&type=chunk) Animal Health Internal Sales Growth (Q3 YoY) | Category | % Change | | :--- | :--- | | Consumables | -2.0% | | Equipment | -5.9% | | Value-Added Services | +44.2% | - The overall sales decline was due to **reduced sales in the companion animal business**, which more than offset the positive growth in the production animal business[9](index=9&type=chunk) [Balance Sheet and Capital Allocation](index=2&type=section&id=Balance%20Sheet%20and%20Capital%20Allocation) The company generated $50.5 million in cash from operations and receivables, returning $289.6 million to shareholders year-to-date, with $195 million remaining for share repurchases - Free cash flow for the first nine months of fiscal 2024 **improved by $11.9 million** compared to the same period last year, driven by a decrease in working capital[10](index=10&type=chunk) Capital Allocation (Q3 FY2024) | Item | Amount | | :--- | :--- | | Quarterly Cash Dividend per Share | $0.26 | | Cash Dividends Returned | $24.7 million | | Share Repurchases | $124.1 million | | **Total Returned to Shareholders** | **$148.8 million** | - At the end of the third quarter, Patterson had approximately **$195 million of share repurchase authority remaining**[11](index=11&type=chunk) [Fiscal 2024 Guidance](index=2&type=section&id=Fiscal%202024%20Guidance) The company revised its fiscal 2024 earnings guidance downwards, citing challenges from inflation, higher interest rates, and a potential economic slowdown Fiscal 2024 EPS Guidance | Metric | Range | | :--- | :--- | | GAAP Earnings per Diluted Share | $1.99 - $2.04 | | Non-GAAP Adjusted Earnings per Diluted Share | $2.30 - $2.35 | - The guidance reflects ongoing challenges including **inflationary trends, higher interest rates, and a potential slowdown** in the broader economy[14](index=14&type=chunk) - The non-GAAP guidance excludes approximately **$29.3 million**, or **$0.31 per diluted share**, of after-tax deal amortization expenses[15](index=15&type=chunk) [Appendix: Financial Statements](index=6&type=section&id=Appendix%3A%20Financial%20Statements) This section provides detailed unaudited financial statements, including statements of operations, balance sheets, cash flows, and segment-level performance data [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q3 FY2024 Operations Summary | Metric (Q3 FY2024) | Amount (in thousands) | | :--- | :--- | | Net Sales | $1,616,095 | | Gross Profit | $351,006 | | Operating Income | $70,012 | | Net Income Attributable to Patterson | $47,703 | [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Balance Sheet Summary | Metric (as of Jan 27, 2024) | Amount (in thousands) | | :--- | :--- | | Total Current Assets | $1,832,563 | | Total Assets | $2,939,949 | | Total Current Liabilities | $1,283,713 | | Total Liabilities | $1,967,784 | | Total Stockholders' Equity | $972,165 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash Flow Summary | Cash Flow (Nine Months Ended Jan 27, 2024) | Amount (in thousands) | | :--- | :--- | | Net cash used in operating activities | $(719,849) | | Net cash provided by investing activities | $718,015 | | Net cash provided by (used in) financing activities | $(34,091) | | Net change in cash and cash equivalents | $(35,671) | [Sales Summary](index=9&type=section&id=Sales%20Summary) Consolidated Sales by Category (Q3 FY2024) | Category | Amount (in thousands) | Internal Growth % | | :--- | :--- | :--- | | Consumable | $1,262,290 | 0.2% | | Equipment | $245,262 | -2.9% | | Value-added services and other | $108,543 | 9.4% | | **Total** | **$1,616,095** | **0.3%** | [Operating Income by Segment](index=11&type=section&id=Operating%20Income%20by%20Segment) Q3 Operating Income | Segment | FY2024 (in thousands) | FY2023 (in thousands) | | :--- | :--- | :--- | | Dental | $53,630 | $60,302 | | Animal Health | $32,104 | $30,197 | | Corporate | $(15,722) | $(14,577) | | **Total** | **$70,012** | **$75,922** | [Reconciliation of GAAP to Non-GAAP Measures](index=12&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) Q3 FY2024 Net Income and EPS Reconciliation (in thousands) | Metric | GAAP | Adjustments | Non-GAAP | | :--- | :--- | :--- | :--- | | Net Income Attributable to Patterson | $47,703 | $7,326 | $55,029 | | Diluted EPS | $0.52 | $0.08 | $0.59 | [Free Cash Flow](index=14&type=section&id=Free%20Cash%20Flow) Free Cash Flow Reconciliation (Nine Months Ended) | Metric | FY2024 (in thousands) | FY2023 (in thousands) | | :--- | :--- | :--- | | Net cash used in operating activities | $(719,849) | $(728,197) | | Additions to property and equipment | $(51,196) | $(42,442) | | Collection of deferred purchase price receivables | $770,319 | $758,001 | | **Free cash flow** | **$(726)** | **$(12,638)** | [Non-GAAP Financial Measures](index=3&type=section&id=Non-GAAP%20Financial%20Measures) The company utilizes non-GAAP measures like internal sales and free cash flow to offer investors supplementary performance insights, excluding certain variable items - **Internal Sales:** Represents net sales adjusted for the effects of currency translation, contributions from recent acquisitions, and the net impact of an interest rate swap[17](index=17&type=chunk) - **Free Cash Flow:** Defined as net cash used in operating activities less capital expenditures, plus the collection of deferred purchase price receivables[18](index=18&type=chunk) - Management believes these non-GAAP measures provide a helpful representation of the company's performance and enable better comparison of financial results between periods[22](index=22&type=chunk) [About Patterson Companies and Forward-Looking Statements](index=4&type=section&id=About%20Patterson%20Companies%20and%20Forward-Looking%20Statements) Patterson Companies is a key distributor in the dental and animal health markets, and this report contains forward-looking statements subject to various business risks - Patterson Companies connects dental and animal health customers in North America and the U.K. to products, technologies, and business solutions[25](index=25&type=chunk) - The report contains forward-looking statements that are not guarantees of future performance and are subject to inherent risks, uncertainties, and changes in circumstances[26](index=26&type=chunk) - Key risk factors mentioned include **supplier dependence, competitive markets, macroeconomic conditions** like inflation, and risks inherent to the health care industry[27](index=27&type=chunk)[28](index=28&type=chunk)

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ____________________________________________________________ FORM 10-Q ____________________________________________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED January 27, 2024. ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File No. 0-20572 ______________________________ ...

Patterson Companies, Inc. (PDCO) is set to release third-quarter fiscal 2024 results on Feb 28, before the opening bell.The company missed on earnings in the last reported quarter. Its earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, missed in one and met in the other, delivering an average surprise of 2.02%.Q3 EstimatesFor the to-be-reported quarter, the Zacks Consensus Estimate for the company’s revenues is pegged at $1.63 billion, indicating a 2% increase from the prior-ye ...