Patterson panies(US:PDCO)2024-12-05 13:01Financial Performance - Second quarter reported net sales increased 1.3 percent year-over-year to $1.67 billion, with internal sales increasing 0.6 percent[2]. - GAAP earnings for the second quarter were $0.30 per diluted share, while adjusted earnings were $0.47 per diluted share, both negatively impacted by a cybersecurity attack[3]. - Adjusted net income for the second quarter was $41.8 million, down from $47.3 million in the prior year, primarily due to lower sales of dental equipment[7]. - Net income attributable to Patterson Companies, Inc. for the three months ended October 26, 2024, was $26,769, down 33.1% from $39,958 in the prior year[36]. - For the six months ended October 26, 2024, total net sales were $3,216,117, a decrease of 0.4% from $3,229,517 in the same period in 2023[44]. - Net income attributable to Patterson Companies, Inc. for the six months was $40,484,000, with diluted earnings per share of $0.46[51]. Shareholder Returns - The company returned $96.2 million to shareholders through cash dividends and share repurchases in the first six months of fiscal 2025[3]. - Dividends declared per common share remained stable at $0.26 for both the current and prior year periods[36]. Guidance and Strategic Initiatives - Fiscal 2025 GAAP earnings guidance revised to a range of $1.83 to $1.93 per diluted share, and adjusted earnings guidance to $2.25 to $2.35 per diluted share[3][15]. - The company is evaluating strategic alternatives to maximize shareholder value, which may include a sale, merger, or other transactions[18]. - The company plans to continue investing in higher margin products and services to support long-term growth[5]. Segment Performance - Dental segment reported net sales of $611.7 million, with internal sales decreasing 2.3 percent year-over-year, while Animal Health segment reported net sales of $1.05 billion, with internal sales increasing 1.9 percent[8][10]. - Animal Health segment total sales increased by 2.9% to $1,054,588 for the three months ended October 26, 2024[42]. - Value-added services and other in the Animal Health segment saw a significant increase of 19.1% to $25,706 for the three months ended October 26, 2024[42]. - Corporate segment value-added services and other reported a net income of $8,105 for the three months ended October 26, 2024, compared to $1,769 in the same period last year, indicating a notable improvement[46]. Cash Flow and Assets - Free cash flow improved by $41.5 million compared to the first six months of fiscal 2024, generating $38.4 million in cash[11]. - Cash and cash equivalents increased to $157,935 as of October 26, 2024, from $114,462 at the end of the previous period, marking a rise of 38.0%[38]. - Total current assets rose to $1,842,017 as of October 26, 2024, compared to $1,778,763 at the end of April 2024, an increase of 3.6%[38]. - Net cash used in operating activities for the six months ended October 26, 2024, was $(458,675), compared to $(485,276) for the same period last year, showing an improvement of 5.5%[40]. - Free cash flow for the six months ended October 26, 2024, was $12,159,000, compared to a negative free cash flow of $(29,291,000) for the same period in 2023[53]. Operating Metrics - Gross profit for the six months ended October 26, 2024, was $640,701, down from $658,081 in the prior year, reflecting a decrease of 2.1%[36]. - Operating income for the three months ended October 26, 2024, was $37,636, a decline of 34.1% compared to $56,903 for the same period last year[36]. - Operating income for the six months was $67,005,000, with operating expenses of $573,696,000[51]. - The company reported a decrease in operating expenses to $290,456 for the three months ended October 26, 2024, compared to $282,123 in the same period last year, an increase of 2.4%[36]. - The gross profit margin for the three months ended October 26, 2024, was 19.6%, compared to 20.0% for the same period in 2023[47].