| PATTERSON COMPANIES, INC. | ||||||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||||||
| (In thousands, except for earnings per share) | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||
| January 23, | January 24, | January 23, | January 24, | |||||||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||||||
| Net sales | $ | 820,084 | $ | 811,023 | $ | 2,424,614 | $ | 2,314,343 | ||||||||||||
| Gross profit | 276,069 | 269,109 | 801,290 | 774,414 | ||||||||||||||||
| Operating expenses | 182,302 | 177,567 | 546,247 | 520,676 | ||||||||||||||||
| Operating income | 93,767 | 91,542 | 255,043 | 253,738 | ||||||||||||||||
| Other expense, net | (4,294 | ) | (6,745 | ) | (12,412 | ) | (20,171 | ) | ||||||||||||
| Income before taxes | 89,473 | 84,797 | 242,631 | 233,567 | ||||||||||||||||
| Income taxes | 33,424 | 31,990 | 92,182 | 87,893 | ||||||||||||||||
| Net income | $ | 56,049 | $ | 52,807 | $ | 150,449 | $ | 145,674 | ||||||||||||
| Earnings per share: | ||||||||||||||||||||
| Basic | $ | 0.47 | $ | 0.45 | $ | 1.27 | $ | 1.24 | ||||||||||||
| Diluted | $ | 0.47 | $ | 0.45 | $ | 1.26 | $ | 1.23 | ||||||||||||
| Shares: | ||||||||||||||||||||
| Basic | 118,518 | 117,624 | 118,324 | 117,645 | ||||||||||||||||
| Diluted | 119,434 | 118,134 | 119,097 | 118,391 | ||||||||||||||||
| Gross margin | 33.7 | % | 33.2 | % | 33.0 | % | 33.5 | % | ||||||||||||
| Operating expenses as a % of net sales | 22.2 | % | 21.9 | % | 22.5 | % | 22.5 | % | ||||||||||||
| Operating income as a % of net sales | 11.4 | % | 11.3 | % | 10.5 | % | 11.0 | % | ||||||||||||
| Effective tax rate | 37.4 | % | 37.7 | % | 38.0 | % | 37.6 | % | ||||||||||||
| PATTERSON COMPANIES, INC. | ||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| (Dollars in thousands) | ||||||||
| January 23, | April 25, | |||||||
| 2010 | 2009 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and short-term investments | $ | 267,782 | $ | 158,065 | ||||
| Receivables, net | 471,316 | 476,156 | ||||||
| Inventory | 302,637 | 269,934 | ||||||
| Prepaid expenses and other current assets | 35,903 | 33,440 | ||||||
| Total current assets | 1,077,638 | 937,595 | ||||||
| Property and equipment, net | 168,657 | 166,500 | ||||||
| Goodwill and other intangible assets | 996,345 | 968,036 | ||||||
| Other | 80,175 | 61,489 | ||||||
| Total Assets | $ | 2,322,815 | $ | 2,133,620 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 184,035 | $ | 180,933 | ||||
| Other accrued liabilities | 147,117 | 131,367 | ||||||
| Current maturities of long-term debt | - | 22,000 | ||||||
| Total current liabilities | 331,152 | 334,300 | ||||||
| Long-term debt | 525,000 | 525,000 | ||||||
| Other non-current liabilities | 88,311 | 88,000 | ||||||
| Total liabilities | 944,463 | 947,300 | ||||||
| Stockholders' equity | 1,378,352 | 1,186,320 | ||||||
| Total Liabilities and Stockholders' Equity | $ | 2,322,815 | $ | 2,133,620 | ||||
| PATTERSON COMPANIES, INC. | ||||||||||||||||||||
| SUPPLEMENTARY FINANCIAL DATA | ||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||
| January 23, | January 24, | January 23, | January 24, | |||||||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||||||
| Consolidated Net Sales | ||||||||||||||||||||
| Consumable and printed products | $ | 501,141 | $ | 476,196 | $ | 1,586,534 | $ | 1,468,110 | ||||||||||||
| Equipment and software | 249,324 | 271,384 | 636,979 | 653,642 | ||||||||||||||||
| Other | 69,619 | 63,443 | 201,101 | 192,591 | ||||||||||||||||
| Total | $ | 820,084 | $ | 811,023 | $ | 2,424,614 | $ | 2,314,343 | ||||||||||||
| Dental Supply | ||||||||||||||||||||
| Consumable and printed products | $ | 293,077 | $ | 287,709 | $ | 902,170 | $ | 909,981 | ||||||||||||
| Equipment and software | 216,243 | 239,228 | 538,989 | 560,235 | ||||||||||||||||
| Other | 62,753 | 57,203 | 179,072 | 170,646 | ||||||||||||||||
| Total | $ | 572,073 | $ | 584,140 | $ | 1,620,231 | $ | 1,640,862 | ||||||||||||
| Rehabilitation Supply | ||||||||||||||||||||
| Consumable and printed products | $ | 66,739 | $ | 54,733 | $ | 229,984 | $ | 193,925 | ||||||||||||
| Equipment and software | 24,143 | 21,942 | 75,568 | 71,128 | ||||||||||||||||
| Other | 5,358 | 4,936 | 17,225 | 16,293 | ||||||||||||||||
| Total | $ | 96,240 | $ | 81,611 | $ | 322,777 | $ | 281,346 | ||||||||||||
| Veterinary Supply | ||||||||||||||||||||
| Consumable and printed products | $ | 141,325 | $ | 133,754 | $ | 454,380 | $ | 364,204 | ||||||||||||
| Equipment and software | 8,938 | 10,214 | 22,422 | 22,279 | ||||||||||||||||
| Other | 1,508 | 1,304 | 4,804 | 5,652 | ||||||||||||||||
| Total | $ | 151,771 | $ | 145,272 | $ | 481,606 | $ | 392,135 | ||||||||||||
| Other (Expense) Income, net | ||||||||||||||||||||
| Interest income | $ | 2,122 | $ | 1,048 | $ | 6,491 | $ | 4,840 | ||||||||||||
| Interest expense | (6,406 | ) | (7,000 | ) | (19,383 | ) | (23,235 | ) | ||||||||||||
| Other | (10 | ) | (793 | ) | 480 | (1,776 | ) | |||||||||||||
| $ | (4,294 | ) | $ | (6,745 | ) | $ | (12,412 | ) | $ | (20,171 | ) | |||||||||
| PATTERSON COMPANIES, INC. | ||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||
| (Dollars in thousands) | ||||||||||
| (Unaudited) | ||||||||||
| Nine Months Ended | ||||||||||
| January 23, | January 24, | |||||||||
| 2010 | 2009 | |||||||||
| Operating activities: | ||||||||||
| Net income | $ | 150,449 | $ | 145,674 | ||||||
| Depreciation & amortization | 28,234 | 21,515 | ||||||||
| Share-based compensation | 6,618 | 5,800 | ||||||||
| Change in assets and liabilities, net of acquired | (32,174 | ) | (100,455 | ) | ||||||
| Net cash provided by operating activities | 153,127 | 72,534 | ||||||||
| Investing activities: | ||||||||||
| Additions to property and equipment, net of disposals | (17,506 | ) | (22,838 | ) | ||||||
| Acquisitions | (28,151 | ) | (109,942 | ) | ||||||
| Net cash used in investing activities | (45,657 | ) | (132,780 | ) | ||||||
| Net cash used in financing activities | (11,624 | ) | (56,416 | ) | ||||||
| Effect of exchange rate changes on cash | 13,871 | (29,618 | ) | |||||||
| Net increase (decrease) in cash and cash equivalents | $ | 109,717 | $ | (146,280 | ) | |||||
Patterson Companies, Inc.
R. Stephen Armstrong, 651-686-1600
Executive
Vice President & CFO
or
Richard G. Cinquina, 904-415-1415
Equity
Market Partners
Source: Patterson Companies, Inc.