Attached files

file filename
EX-10 - EX-10 - PATTERSON COMPANIES, INC.d524943dex10.htm
8-K - 8-K - PATTERSON COMPANIES, INC.d524943d8k.htm

Exhibit 99

 

LOGO

Patterson Companies Reports Fiscal 2018 Third-Quarter Results

 

    Reported net sales totaled $1.38 billion.

 

    GAAP earnings from continuing operations increased to $1.18 per diluted share.

 

    Adjusted earnings1 from continuing operations declined to $0.43 per diluted share.

 

    Company revises fiscal 2018 outlook and now expects adjusted earnings1 from continuing operations to be in the range of $1.65 to $1.70 per diluted share.

 

    Announces CFO transition.

St. Paul, Minn. — March 1, 2018 — 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 third quarter ended January 27, 2018, a decline of 1.6 percent compared to the same period last year. Adjusting for the effects of currency translation, sales declined 2.7 percent.

Reported net income from continuing operations for the third quarter of fiscal year 2018 was $109.0 million, or $1.18 per diluted share, compared to $27.8 million, or $0.29 per diluted share, in last year’s fiscal third quarter. The current period includes the recognition of a provisional net tax benefit of $77.3 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 Tax Cuts and Jobs Act (“2017 Tax Act”) enacted during the third quarter.

Adjusted net income1 from continuing operations, which excludes certain non-recurring items, deal amortization costs and the provisional net tax benefit related to the 2017 Tax Act, totaled $39.6 million for the third quarter of fiscal 2018, down 28.6 percent from $55.4 million in the same quarter last year, driven by decreased sales and gross margin compression. Adjusted earnings1 per diluted share from continuing operations totaled $0.43 in the third quarter, down 25.9 percent year-over-year.

“Our third-quarter results did not meet our expectations,” said Mark Walchirk, president and CEO of Patterson Companies. “Since joining Patterson 90 days ago, I have begun a thorough review of our business and the factors impacting performance. We are moving quickly to implement an initial set of actions to improve our results, focused on enhancing the customer experience and driving better execution across the business.”

Walchirk continued, “We have much more work to do to position Patterson to reach its full potential, but I am confident in the strength of our end markets, our deep customer relationships and the broad value proposition we offer. We are committed to continuing to take clear actions to improve our execution and set the foundation to drive improved performance and long-term value.”

Patterson Dental

Reported net sales in our Dental segment for the third quarter, which represented approximately 42 percent of total company sales, were $577.9 million, down 7.7 percent from the same quarter last year. Sales declined 8.1 percent on a constant currency basis compared to the fiscal 2017 third quarter. On that same basis, year-over-year sales by category were as follows:

 

    Consumable dental supplies decreased 7.4 percent.

 

    Equipment sales declined 10.6 percent.


    Other services and products, primarily composed of technical service, parts and labor, software support services and office supplies decreased 3.4 percent.

“Our Dental segment results reflect the impact of a number of transitions taking place within our business, including changes in our sales force, disruptions resulting from our enterprise resource planning implementation and the expansion of our digital equipment portfolio,” continued Walchirk. “As we work to improve execution and performance, we are making meaningful progress increasing unit placements of our new technology offerings, reinforcing this strategic decision.”

Patterson Animal Health

Reported net sales in our Animal Health segment for the third quarter of fiscal 2018, which comprised approximately 58 percent of the company’s total sales, were $794.9 million, up 4.2 percent from last year’s third quarter. After normalizing for the impact of currency and changes in product selling relationships, segment sales increased 4.6 percent from the fiscal 2017 third quarter. On that same basis, year-over-year sales by category were as follows:

 

    Global companion animal sales rose 0.4 percent.

 

    Production animal sales increased 8.8 percent, reflecting particularly strong performance across swine and beef cattle species.

“In our Animal Health segment, our production animal business drove solid growth across species and channels and we continue to benefit from positive end-market fundamentals,” continued Walchirk. “The lower sales growth rate in our companion animal business was primarily related to a decrease in promotional activity compared to last year.”

Share Repurchases and Dividends

In the third quarter of fiscal 2018, Patterson repurchased approximately 0.4 million shares of its outstanding common stock, with a value of $13.5 million, leaving approximately 11.5 million shares for repurchase under the current authorization, which expires in March 2018. The company also paid $24.7 million in cash dividends to shareholders in the third quarter of fiscal 2018. For the first nine months of fiscal 2018, the company has returned a total of $162 million to shareholders in the form of share repurchases and dividends.

Year-to-Date Results1

Consolidated sales for the first nine months of fiscal 2018 totaled $4.1 billion, a 2.0 percent year-over-year decrease. Reported net income from continuing operations was $180.0 million, or $1.93 per diluted share, compared to $112.4 million, or $1.17 per diluted share in last year’s period. This comparison includes the recognition of a provisional net tax benefit of $77.3 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 enacted during the third quarter.

Adjusted net income1 from continuing operations, which excludes certain non-recurring items, deal amortization costs and the provisional net tax benefit related to the 2017 Tax Act, totaled $128.6 million, or $1.38 per diluted share, compared to adjusted net income from continuing operations of $157.7 million, or $1.64 per diluted share, in the year-ago period.

FY2018 Guidance

Patterson today revised its fiscal 2018 earnings guidance from continuing operations, which is provided on both a GAAP and non-GAAP adjusted1 basis:

 

    GAAP earnings from continuing operations are now expected to be in the range of $2.13 to $2.18 per diluted share.

 

    Non-GAAP adjusted earnings1 from continuing operations for fiscal 2018 are now expected to be in the range of $1.65 to $1.70 per diluted share.


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

 

    Deal amortization expense of approximately $26.9 million ($0.29 per diluted share);

 

    Integration and business restructuring expenses of approximately $5.7 million ($0.06 per diluted share);

 

    Provisional net tax benefit related to the 2017 Tax Act of approximately $77.3 million ($0.83 per diluted share).

Our guidance is for current continuing 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 the first nine months of fiscal 2018.

Patterson Announces CFO Transition

Patterson also announced that Ann Gugino, executive vice president and chief financial officer, will transition from her role as CFO, effective March 1, 2018. Patterson has appointed Dennis Goedken, current corporate controller, to serve as interim CFO in addition to his current role, while the company conducts a search for a permanent replacement. Ms. Gugino’s departure is not related to the company’s financial condition, financial disclosure or strategic direction, and Ms. Gugino has agreed to serve as a special advisor to the company until July 31, 2018.

Said Walchirk, “We are grateful to Ann for her many contributions to Patterson over the past 18 years with the company, and I thank her for her support during my transition. On behalf of the entire Patterson team, we wish her all the best. We are also fortunate to have someone with Dennis’ experience to serve as interim CFO while we conduct a search for a finance executive to help execute our strategic priorities.”

Mr. Goedken has spent more than 12 years with Patterson having served as the corporate controller since 2012, and as Patterson’s assistant controller from 1991-1998. During his tenure, Mr. Goedken was integrally involved in internal audit, taking the company public and various divestitures and acquisitions. Mr. Goedken curently leads the accounting team and oversees preparation of all SEC filings. Previously, Mr. Goedken has held senior finance leadership positions with Ceridian HCM, Inc. and Lifetouch Inc.

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 earnings from continuing operations, net income from continuing operations and earnings per diluted share from continuing operations, for the impact of transaction related costs, deal amortization expenses, intangible asset impairment, integration and business restructuring expenses, along with the related tax effects of these items, the impact of the 2017 Tax Act and other discrete tax matters.

Management believes that these non-GAAP measures may provide a helpful representation of the company’s third-quarter and full-year performance, 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 constant currency used in this release represents net sales adjusted to exclude foreign currency impacts. 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 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.


Third-Quarter Conference Call and Replay

Patterson’s third-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 Patterson’s website. A replay of the fiscal 2018 third-quarter conference call can be heard for one week at 800-585-8367 and by providing the Conference ID 6584419 when prompted.

About Patterson Companies, Inc.

Patterson Companies, Inc. 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.

For additional information contact:

John M. Wright

Vice President, Investor Relations

651-686-1364

Source: Patterson Companies, Inc.


PATTERSON COMPANIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except per share amounts)

(Unaudited)

 

     Three Months Ended     Nine Months Ended  
     January 27,
2018
    January 28,
2017
    January 27,
2018
    January 28,
2017
 

Net sales

   $ 1,375,222     $ 1,397,418     $ 4,065,074     $ 4,148,095  

Gross profit

     294,736       329,761       909,527       965,899  

Operating expenses

     244,690       283,207       730,889       774,126  
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income from continuing operations

     50,046       46,554       178,638       191,773  

Other income (expense):

        

Other income, net

     2,096       994       4,768       4,980  

Interest expense

     (11,783     (11,400     (34,454     (31,659
  

 

 

   

 

 

   

 

 

   

 

 

 

Income from continuing operations before taxes

     40,359       36,148       148,952       165,094  

Income tax expense (benefit)

     (68,596     8,379       (31,094     52,663  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income from continuing operations

     108,955       27,769       180,046       112,431  

Net loss from discontinued operations

     —         (3,229     —         (3,229
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 108,955     $ 24,540     $ 180,046     $ 109,202  
  

 

 

   

 

 

   

 

 

   

 

 

 

Basic earnings (loss) per share:

        

Continuing operations

   $ 1.18     $ 0.29     $ 1.94     $ 1.18  

Discontinued operations

     —         (0.03     —         (0.03
  

 

 

   

 

 

   

 

 

   

 

 

 

Net basic earnings per share

   $ 1.18     $ 0.26     $ 1.94     $ 1.15  
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted earnings (loss) per share:

        

Continuing operations

   $ 1.18     $ 0.29     $ 1.93     $ 1.17  

Discontinued operations

     —         (0.03     —         (0.03
  

 

 

   

 

 

   

 

 

   

 

 

 

Net diluted earnings per share

   $ 1.18     $ 0.26     $ 1.93     $ 1.14  
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average shares:

        

Basic

     91,949       94,737       92,674       95,252  

Diluted

     92,609       95,359       93,323       95,915  

Dividends declared per common share

   $ 0.26     $ 0.24     $ 0.78     $ 0.72  


PATTERSON COMPANIES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

 

     January 27,
2018
     April 29,
2017
 
     (Unaudited)         

ASSETS

     

Current assets:

     

Cash and cash equivalents

   $ 118,005      $ 94,959  

Receivables

     863,455        884,803  

Inventory

     882,018        711,903  

Prepaid expenses and other current assets

     116,310        111,928  
  

 

 

    

 

 

 

Total current assets

     1,979,788        1,803,593  

Property and equipment, net

     287,439        298,452  

Goodwill and other intangible assets

     1,216,374        1,238,983  

Long-term receivables, net and other

     190,757        166,885  
  

 

 

    

 

 

 

Total assets

   $ 3,674,358      $ 3,507,913  
  

 

 

    

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

     

Current liabilities:

     

Accounts payable

   $ 654,792      $ 616,859  

Other accrued liabilities

     191,540        213,318  

Current maturities of long-term debt

     74,754        14,754  

Borrowings on revolving credit

     179,000        59,000  
  

 

 

    

 

 

 

Total current liabilities

     1,100,086        903,931  

Long-term debt

     931,419        998,272  

Other non-current liabilities

     179,863        211,277  
  

 

 

    

 

 

 

Total liabilities

     2,211,368        2,113,480  

Stockholders’ equity

     1,462,990        1,394,433  
  

 

 

    

 

 

 

Total liabilities and stockholders’ equity

   $ 3,674,358      $ 3,507,913  
  

 

 

    

 

 

 


PATTERSON COMPANIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

 

     Nine Months Ended  
     January 27,
2018
    January 28,
2017
 

Operating activities:

    

Net income

   $ 180,046     $ 109,202  

Net loss from discontinued operations

     —         (3,229
  

 

 

   

 

 

 

Net income from continuing operations

     180,046       112,431  

Adjustments to reconcile net income from continuing operations to net cash provided by (used in) operating activities:

    

Depreciation and amortization

     62,787       63,056  

Intangible asset impairment

     —         36,312  

Non-cash employee compensation

     22,999       17,254  

Change in assets and liabilities, net of acquired

     (225,819     (238,464
  

 

 

   

 

 

 

Net cash provided by (used in) operating activities- continuing operations

     40,013       (9,411

Net cash used in operating activities- discontinued operations

     —         (3,229
  

 

 

   

 

 

 

Net cash provided by (used in) operating activities

     40,013       (12,640

Investing activities:

    

Additions to property and equipment

     (28,239     (37,457

Collection of deferred purchase price receivables

     37,068       38,964  

Other investing activities

     10,600       (3,095
  

 

 

   

 

 

 

Net cash provided by (used in) investing activities- continuing operations

     19,429       (1,588

Net cash provided by investing activities- discontinued operations

     —         —    
  

 

 

   

 

 

 

Net cash provided by (used in) investing activities

     19,429       (1,588

Financing activities:

    

Dividends paid

     (74,641     (70,947

Repurchases of common stock

     (87,500     (84,651

Debt amendment costs

     —         (1,266

Retirement of long-term debt

     (7,377     (22,550

Draw on revolver

     120,000       178,000  

Other financing activities

     7,546       5,495  
  

 

 

   

 

 

 

Net cash provided by (used in) financing activities

     (41,972     4,081  

Effect of exchange rate changes on cash

     5,576       (5,567
  

 

 

   

 

 

 

Net change in cash and cash equivalents

   $ 23,046     $ (15,714
  

 

 

   

 

 

 


PATTERSON COMPANIES, INC.

SALES SUMMARY

(Dollars in thousands)

(Unaudited)

 

     January 27,
2018
     January 28,
2017
     Total
Sales
Growth
    Foreign
Exchange
Impact
    Internal
Growth
 

Three Months Ended

            

Consolidated net sales

            

Consumable

   $ 1,074,189      $ 1,064,098        0.9     1.3     (0.4 )% 

Equipment and software

     222,574        249,047        (10.6     0.4       (11.0

Other

     78,459        84,273        (6.9     0.6       (7.5
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total

   $ 1,375,222      $ 1,397,418        (1.6 )%      1.1     (2.7 )% 
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Dental

            

Consumable

   $ 302,296      $ 325,181        (7.0 )%      0.4     (7.4 )% 

Equipment and software

     207,000        230,431        (10.2     0.4       (10.6

Other

     68,581        70,731        (3.0     0.4       (3.4
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total

   $ 577,877      $ 626,343        (7.7 )%      0.4     (8.1 )% 
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Animal Health

            

Consumable

   $ 771,893      $ 738,917        4.5     1.6     2.9

Equipment and software

     15,574        18,616        (16.3     0.1       (16.4

Other

     7,400        5,044        46.7       5.9       40.8  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total

   $ 794,867      $ 762,577        4.2     1.6     2.6
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Corporate

            

Other

   $ 2,478      $ 8,498        (70.8 )%      —       (70.8 )% 
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total

   $ 2,478      $ 8,498        (70.8 )%      —       (70.8 )% 
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Nine Months Ended

            

Consolidated net sales

            

Consumable

   $ 3,270,385      $ 3,252,551        0.5     0.2     0.3

Equipment and software

     540,860        627,187        (13.8     0.2       (14.0

Other

     253,829        268,357        (5.4     0.1       (5.5
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total

   $ 4,065,074      $ 4,148,095        (2.0 )%      0.2     (2.2 )% 
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Dental

            

Consumable

   $ 933,691      $ 982,366        (5.0 )%      0.2     (5.2 )% 

Equipment and software

     504,376        586,375        (14.0     0.2       (14.2

Other

     212,247        214,170        (0.9     0.2       (1.1
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total

   $ 1,650,314      $ 1,782,911        (7.4 )%      0.2     (7.6 )% 
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Animal Health

            

Consumable

   $ 2,336,694      $ 2,270,185        2.9     0.2     2.7

Equipment and software

     36,484        40,812        (10.6     —         (10.6

Other

     21,408        21,357        0.2       —         0.2  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total

   $ 2,394,586      $ 2,332,354        2.7     0.2     2.5
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Corporate

            

Other

   $ 20,174      $ 32,830        (38.6 )%      —       (38.6 )% 
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total

   $ 20,174      $ 32,830        (38.6 )%      —       (38.6 )% 
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 


PATTERSON COMPANIES, INC.

OPERATING INCOME BY SEGMENT

(In thousands)

(Unaudited)

 

     Three Months Ended     Nine Months Ended  
     January 27,
2018
    January 28,
2017
    January 27,
2018
    January 28,
2017
 

Operating income (loss)

        

Dental

   $ 58,439     $ 40,018     $ 183,165     $ 177,356  

Animal Health

     18,037       23,777       57,930       60,460  

Corporate

     (26,430     (17,241     (62,457     (46,043
  

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 50,046     $ 46,554     $ 178,638     $ 191,773  
  

 

 

   

 

 

   

 

 

   

 

 

 


PATTERSON COMPANIES, INC.

RECONCILIATION OF GAAP TO NON-GAAP MEASURES

(Dollars in thousands, except per share amounts)

(Unaudited)

 

For the three months ended January 27, 2018

   GAAP     Transaction-
related costs
     Deal
amortization
     Intangible
asset
impairment
     Integration
and business
restructuring
expenses
    Discrete tax
matters
    Non-GAAP  

Operating income from continuing operations

   $ 50,046     $ —        $ 9,692      $ —        $ —       $ —       $ 59,738  

Other expense, net

     (9,687     —          —          —          —         —         (9,687
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Income from continuing operations before taxes

     40,359       —          9,692        —          —         —         50,051  

Income tax expense (benefit)

     (68,596     —          2,209        —          (370     77,256       10,499  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Net income from continuing operations

   $ 108,955     $ —        $ 7,483      $ —        $ 370     $ (77,256   $ 39,552  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Diluted earnings per share from continuing operations*

   $ 1.18     $ —        $ 0.08      $ —        $ —       $ (0.83   $ 0.43  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Operating income from continuing operations as a % of sales

     3.6                  4.3

Effective tax rate

     -170.0                  21.0

For the three months ended January 28, 2017

   GAAP     Transaction-
related costs
     Deal
amortization
     Intangible
asset
impairment
     Integration
and business
restructuring
expenses
    Discrete tax
matters
    Non-GAAP  

Operating income from continuing operations

   $ 46,554     $ 236      $ 9,951      $ 36,312      $ 625     $ —       $ 93,678  

Other expense, net

     (10,406     —          —          —          —         —         (10,406
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Income from continuing operations before taxes

     36,148       236        9,951        36,312        625       —         83,272  

Income tax expense (benefit)

     8,379       89        3,480        13,263        236       2,406       27,853  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Net income from continuing operations

   $ 27,769     $ 147      $ 6,471      $ 23,049      $ 389     $ (2,406   $ 55,419  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Diluted earnings per share from continuing operations*

   $ 0.29     $ —        $ 0.07      $ 0.24      $ —       $ (0.03   $ 0.58  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Operating income from continuing operations as a % of sales

     3.3                  6.7

Effective tax rate

     23.2                  33.4

For the nine months ended January 27, 2018

   GAAP     Transaction-
related costs
     Deal
amortization
     Intangible
asset
impairment
     Integration
and business
restructuring
expenses
    Discrete tax
matters
    Non-GAAP  

Operating income from continuing operations

   $ 178,638     $ —        $ 28,982      $ —        $ 8,594     $ —       $ 216,214  

Other expense, net

     (29,686     —          —          —          —         —         (29,686
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Income from continuing operations before taxes

     148,952       —          28,982        —          8,594       —         186,528  

Income tax expense (benefit)

     (31,094     —          8,900        —          2,879       77,256       57,941  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Net income from continuing operations

   $ 180,046     $ —        $ 20,082      $ —        $ 5,715     $ (77,256   $ 128,587  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Diluted earnings per share from continuing operations*

   $ 1.93     $ —        $ 0.22      $ —        $ 0.06     $ (0.83   $ 1.38  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Operating income from continuing operations as a % of sales

     4.4                  5.3

Effective tax rate

     -20.9                  31.1

For the nine months ended January 28, 2017

   GAAP     Transaction-
related costs
     Deal
amortization
     Intangible
asset
impairment
     Integration
and business
restructuring
expenses
    Discrete tax
matters
    Non-GAAP  

Operating income from continuing operations

   $ 191,773     $ 1,479      $ 30,212      $ 36,312      $ 6,304     $ —       $ 266,080  

Other expense, net

     (26,679     —          —          —          —         —         (26,679
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Income from continuing operations before taxes

     165,094       1,479        30,212        36,312        6,304       —         239,401  

Income tax expense (benefit)

     52,663       558        10,394        13,263        2,383       2,406       81,667  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Net income from continuing operations

   $ 112,431     $ 921      $ 19,818      $ 23,049      $ 3,921     $ (2,406   $ 157,734  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Diluted earnings per share from continuing operations*

   $ 1.17     $ 0.01      $ 0.21      $ 0.24      $ 0.04     $ (0.03   $ 1.64  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Operating income from continuing operations as a % of sales

     4.6                  6.4

Effective tax rate

     31.9                  34.1

 

* May not sum due to rounding

###