PATTERSON COMPANIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except for earnings per share)
(Unaudited)
       
 
Three Months Ended Six Months Ended
 
October 25, October 27, October 25, October 27,
2008 2007 2008 2007
 
 
Net sales $ 759,461 $ 741,992 $ 1,503,320 $ 1,443,395
 
Gross profit 253,575 252,299 505,305 489,433
 
Operating expenses   170,973     166,686     343,109     328,613  
 
Operating income 82,602 85,613 162,196 160,820
 
Other expense, net   (7,514 )   755     (13,426 )   1,360  
 
Income before taxes 75,088 86,368 148,770 162,180
 
Income taxes   28,185     32,627     55,903     60,895  
 
Net income $ 46,903   $ 53,741   $ 92,867   $ 101,285  
 
 
Earnings per share:
Basic $ 0.40 $ 0.40 $ 0.79 $ 0.75
Diluted $ 0.40 $ 0.39 $ 0.78 $ 0.74
 
Shares:
Basic 117,421 135,907 117,656 135,846
Diluted 118,328 136,923 118,520 136,834
 
Gross margin 33.4 % 34.0 % 33.6 % 33.9 %
 
Operating expenses as a % of net sales 22.5 % 22.5 % 22.8 % 22.8 %
 
Operating income as a % of net sales 10.9 % 11.5 % 10.8 % 11.1 %
 
Effective tax rate 37.5 % 37.8 % 37.6 % 37.5 %
PATTERSON COMPANIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
   
 
October 25, April 26,
2008 2008
(Unaudited)
ASSETS
Current assets:
Cash and short-term investments $ 256,643 $ 308,164
Receivables, net 365,189 364,050
Inventory 311,637 281,238
Prepaid expenses and other current assets   38,366   31,589
Total current assets 971,835 985,041
 
Property and equipment, net 158,418 148,932
Goodwill and other intangible assets 924,906 881,750
Other   55,929   60,650
 
Total Assets $ 2,111,088 $

  2,076,373

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:
Accounts payable $ 188,523 $ 194,405
Other accrued liabilities 123,666 141,652
Current maturities of long-term debt   130,006   130,010
Total current liabilities 442,195 466,067
 
Long-term debt 525,333 525,024
Other non-current liabilities   80,862   80,495
Total liabilities 1,048,390 1,071,586
 

Stockholders’ equity

  1,062,698   1,004,787
 

Total Liabilities and Stockholders’ Equity

$ 2,111,088 $

  2,076,373

PATTERSON COMPANIES, INC.
SUPPLEMENTARY FINANCIAL DATA
(Dollars in thousands)
(Unaudited)
       
 
 
Three Months Ended Six Months Ended
October 25, October 27, October 25, October 27,
2008 2007 2008 2007
 
Consolidated Net Sales
Consumable and printed products $ 493,731 $ 480,646 $ 991,914 $ 945,376
Equipment and software 200,966 199,377 382,258 378,973
Other   64,764     61,969     129,148     119,046  
Total $ 759,461   $ 741,992   $ 1,503,320   $ 1,443,395  
 
Dental Supply
Consumable and printed products $ 309,679 $ 310,130 $ 622,272 $ 605,537
Equipment and software 170,642 168,989 321,007 321,722
Other   56,516     55,386     113,443     106,973  
Total $ 536,837   $ 534,505   $ 1,056,722   $ 1,034,232  
 
Rehabilitation Supply
Consumable and printed products $ 68,819 $ 69,796 $ 139,192 $ 136,118
Equipment and software 24,393 23,919 49,186 45,094
Other   5,823     4,848     11,357     8,613  
Total $ 99,035   $ 98,563   $ 199,735   $ 189,825  
 
Veterinary Supply
Consumable and printed products $ 115,233 $ 100,720 $ 230,450 $ 203,721
Equipment and software 5,931 6,469 12,065 12,157
Other   2,425     1,735     4,348     3,460  
Total $ 123,589   $ 108,924   $ 246,863   $ 219,338  
 
Other (Expense) Income, net
Interest income $ 1,870 $ 2,710 $ 3,792 $ 5,058
Interest expense (8,183 ) (2,599 ) (16,235 ) (5,096 )
Other   (1,201 )   644     (983 )   1,398  
$ (7,514 ) $ 755   $ (13,426 ) $ 1,360  
 
 
Note: Certain amounts previously reported have been reclassified to conform with the current presentation.
PATTERSON COMPANIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
(Unaudited)
   
Six Months Ended
October 25, October 27,
2008 2007
 
 
Operating activities:
Net income $ 92,867 $ 101,285
Depreciation & amortization 13,864 12,324
Share-based compensation 3,938 3,978
Change in assets and liabilities, net of acquired   (52,839 )   (8,748 )
Net cash provided by operating activities 57,830 108,839
 
Investing activities:
Additions to property and equipment, net of disposals (17,495 ) (9,180 )
Acquisitions   (69,877 )   (11,539 )
Net cash used in investing activities (87,372 ) (20,719 )
 
Net cash provided by financing activities 5,650 7,111
Effect of exchange rate changes on cash   (27,629 )  

8,120

 
 
 
Net (decrease) increase in cash and cash equivalents $ (51,521 ) $

103,351

 

Contacts

Patterson Companies, Inc.
R. Stephen Armstrong, 651-686-1600
Executive Vice President & CFO
or
Equity Market Partners
Richard G. Cinquina, 904-415-1415


Source: Patterson Companies, Inc.