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Exhibit 99

 

PATTERSON COMPANIES | 1031 Mendota Heights Road | Saint Paul, MN 55120    NEWS RELEASE

PATTERSON COMPANIES REPORTS FISCAL 2019 SECOND-QUARTER RESULTS

 

   

Second-quarter reported net sales totaled $1.4 billion, up 1.4 percent.

 

   

Second-quarter GAAP earnings of $0.31 per diluted share.

 

   

Second-quarter adjusted earnings1 of $0.39 per diluted share.

 

   

Company generates $200.2 million of cash flow from operating activities in first six months of fiscal 2019.

 

   

Company reaffirms fiscal 2019 GAAP earnings range of $0.84 to $0.94 per diluted share and adjusted earnings1 range of $1.40 to $1.50 per diluted share.

St. Paul, Minn. — December 6, 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 second quarter ended October 27, 2018, an increase of 1.4 percent compared to the same period last year. Internal sales, which are adjusted for the effects of currency translation and changes in product selling relationships, increased 1.8 percent.

Reported net income attributable to Patterson Companies, Inc. for the second quarter of fiscal year 2019 was $28.9 million, or $0.31 per diluted share, compared to net income attributable to Patterson Companies, Inc. of $40.2 million, or $0.43 per diluted share, in last year’s fiscal second quarter. Adjusted net income1 attributable to Patterson Companies, Inc., which excludes deal amortization costs and integration and business restructuring costs, totaled $36.3 million for the second quarter of fiscal 2019, or $0.39 per diluted share, compared to $47.6 million in the same quarter last year, or $0.51 per diluted share. The reported net income and the adjusted net income attributable to Patterson Companies, Inc. were both impacted by the decrease in operating margins within the Dental segment.

“Our second quarter results met our expectations and we continue to make progress on our focused initiatives to improve performance and build a stronger Patterson,” said Mark Walchirk, president and CEO of Patterson Companies. “While we still have much work ahead, our team has delivered two consecutive quarters of year-over-year revenue growth, operating margin improvement from the fiscal first quarter and continued strong cash flow generation. As a result, we are reaffirming our fiscal 2019 guidance.”

Patterson Animal Health

Reported net sales in our Animal Health segment for the second quarter of fiscal 2019, which comprised approximately 61 percent of the company’s total sales, were $855.4 million compared to $823.6 million in the same quarter last year. Internal sales for the segment increased 4.5 percent from the fiscal 2018 second quarter.

Patterson Dental

Reported net sales in our Dental segment for the second quarter of fiscal 2019, which represented approximately 39 percent of total company sales, were $542.5 million compared to $553.6 million in the same quarter last year. Internal sales declined 1.8 percent compared to the fiscal 2018 second quarter.

Balance Sheet and Capital Allocation

For the first six months of fiscal 2019, Patterson Companies generated $200.2 million of cash from operating activities and collected deferred purchase price receivables of $165.6 million for a total of $365.8 million, compared to a total of $101.7 million in the same period last year. During the first six months of fiscal 2019, debt has been reduced by $196.3 million and cash has grown by $102.5 million.

In the second quarter of fiscal 2019, Patterson Companies paid $24.7 million in cash dividends to shareholders. On a year-to-date basis, Patterson has returned $50.0 million in cash dividends to shareholders.

Year-to-Date Results

Consolidated net sales for the first six months of fiscal 2019 totaled $2.7 billion, a 1.9 percent year-over-year increase. Reported net income attributable to Patterson Companies, Inc. was $24.4 million, or $0.26 per diluted share, compared to $71.1 million, or $0.76 per diluted share in last year’s period. In July 2018, Patterson Companies booked a pre-tax reserve of $28.3 million for the anticipated settlement of purported class action antitrust litigation.

Adjusted net income1 attributable to Patterson Companies, Inc., which excludes deal amortization costs, integration and business restructuring costs and legal reserve costs, totaled $60.3 million, or $0.65 per diluted share, compared to adjusted net income of $89.0 million, or $0.95 per diluted share, in the year-ago period.

 

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PATTERSON COMPANIES | 1031 Mendota Heights Road | Saint Paul, MN 55120    NEWS RELEASE

 

FY2019 Guidance

Patterson Companies today reaffirmed fiscal 2019 earnings guidance, which is provided on both a GAAP and non-GAAP adjusted1 basis:

 

   

GAAP earnings are expected to be in the range of $0.84 to $0.94 per diluted share.

 

   

Non-GAAP adjusted earnings1 are expected to be in the range of $1.40 to $1.50 per diluted share.

 

   

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

 

   

Deal amortization expenses of approximately $31.1 million ($0.33 per diluted share).

 

   

Legal reserve costs of approximately $20.7 million ($0.22 per diluted share).

Our guidance is for current 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 fiscal 2018.

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 operating income, income before taxes, income tax expense, net income, net income attributable to Patterson Companies, Inc. and diluted earnings per share attributable to Patterson Companies, Inc., for the impact of deal amortization, integration and business restructuring expenses and legal reserve costs along with the related tax effects of these items.

Management believes that these non-GAAP measures may provide a helpful representation of the company’s second-quarter performance and earnings guidance, 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 “internal sales” used in this release represents net sales adjusted to exclude foreign currency impact and changes in product selling relationships. 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.

Second-Quarter Conference Call and Replay

Patterson Companies’ fiscal 2019 second-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 the Patterson Companies website. A replay of the fiscal 2019 second-quarter conference call can be heard for one week at 800-585-8367 and by providing the Conference ID 5359197 when prompted.

About Patterson Companies Inc.

Patterson Companies Inc. (Nasdaq: PDCO) 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

 

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PATTERSON COMPANIES | 1031 Mendota Heights Road | Saint Paul, MN 55120    NEWS RELEASE

 

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.

 

 

 

CONTACT:    John M. Wright, Investor Relations
COMPANY:    Patterson Companies Inc.
EMAIL:    john.wright@pattersoncompanies.com
WEB:    pattersoncompanies.com
SOURCE:    Patterson Companies Inc.

# # #

 

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PATTERSON COMPANIES | 1031 Mendota Heights Road | Saint Paul, MN 55120    NEWS RELEASE

 

PATTERSON COMPANIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except per share amounts)

(Unaudited)

 

     Three Months Ended     Six Months Ended  
     October 27,
2018
    October 28,
2017
    October 27,
2018
    October 28,
2017
 

Net sales

   $ 1,404,752     $ 1,385,737     $ 2,741,072     $ 2,689,852  

Gross profit

     295,076       315,743       578,739       614,791  

Operating expenses

     253,860       243,984       533,009       486,199  
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     41,216       71,759       45,730       128,592  

Other income (expense):

        

Other income, net

     5,941       1,160       7,194       2,672  

Interest expense

     (9,456     (11,468     (20,677     (22,671
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before taxes

     37,701       61,451       32,247       108,593  

Income tax expense

     9,055       21,207       8,110       37,502  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

     28,646       40,244       24,137       71,091  

Net loss attributable to noncontrolling interests

     (223     —         (276     —    
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to Patterson Companies, Inc.

   $ 28,869     $ 40,244     $ 24,413     $ 71,091  
  

 

 

   

 

 

   

 

 

   

 

 

 

Earnings per share attributable to Patterson Companies, Inc.:

        

Basic

   $ 0.31     $ 0.43     $ 0.26     $ 0.76  
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

   $ 0.31     $ 0.43     $ 0.26     $ 0.76  
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average shares:

        

Basic

     92,683       92,722       92,606       93,037  

Diluted

     93,289       93,351       93,144       93,683  

Dividends declared per common share

   $ 0.26     $ 0.26     $ 0.52     $ 0.52  

 

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PATTERSON COMPANIES | 1031 Mendota Heights Road | Saint Paul, MN 55120    NEWS RELEASE

 

PATTERSON COMPANIES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)

 

     October 27,
2018
     April 28,
2018
 

ASSETS

     

Current assets:

     

Cash and cash equivalents

   $ 165,515      $ 62,984  

Receivables

     571,232        826,877  

Inventory

     792,533        779,834  

Prepaid expenses and other current assets

     176,019        103,029  
  

 

 

    

 

 

 

Total current assets

     1,705,299        1,772,724  

Property and equipment, net

     289,602        290,590  

Goodwill and other intangible assets

     1,182,533        1,205,401  

Long-term receivables, net and other

     166,820        202,949  
  

 

 

    

 

 

 

Total assets

   $ 3,344,254      $ 3,471,664  
  

 

 

    

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

     

Current liabilities:

     

Accounts payable

   $ 662,731      $ 610,368  

Other accrued liabilities

     225,903        205,415  

Current maturities of long-term debt

     80,286        76,598  

Borrowings on revolving credit

     —          16,000  
  

 

 

    

 

 

 

Total current liabilities

     968,920        908,381  

Long-term debt

     738,341        922,030  

Other non-current liabilities

     181,305        179,463  
  

 

 

    

 

 

 

Total liabilities

     1,888,566        2,009,874  

Stockholders’ equity

     1,455,688        1,461,790  
  

 

 

    

 

 

 

Total liabilities and stockholders’ equity

   $ 3,344,254      $ 3,471,664  
  

 

 

    

 

 

 

 

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PATTERSON COMPANIES | 1031 Mendota Heights Road | Saint Paul, MN 55120    NEWS RELEASE

 

PATTERSON COMPANIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

 

     Six Months Ended  
     October 27,
2018
    October 28,
2017
 

Operating activities:

    

Net income

   $ 24,137     $ 71,091  

Adjustments to reconcile net income to net cash provided by operating activities:

    

Depreciation and amortization

     41,926       41,833  

Non-cash employee compensation

     13,926       16,635  

Deferred consideration in securitized receivables

     (165,567     (24,581

Change in assets and liabilities, net of acquired

     285,792       (27,870
  

 

 

   

 

 

 

Net cash provided by operating activities

     200,214       77,108  

Investing activities:

    

Additions to property and equipment

     (22,094     (16,431

Collection of deferred purchase price receivables

     165,567       24,581  

Other investing activities

     2,875       11,626  
  

 

 

   

 

 

 

Net cash provided by investing activities

     146,348       19,776  

Financing activities:

    

Dividends paid

     (49,980     (49,969

Repurchases of common stock

     —         (71,254

Retirement of long-term debt

     (180,321     (7,377

Draw on (payment on) revolving credit

     (16,000     33,000  

Other financing activities

     3,592       3,561  
  

 

 

   

 

 

 

Net cash used in financing activities

     (242,709     (92,039

Effect of exchange rate changes on cash

     (1,322     1,652  
  

 

 

   

 

 

 

Net change in cash and cash equivalents

   $ 102,531     $ 6,497  
  

 

 

   

 

 

 

 

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PATTERSON COMPANIES | 1031 Mendota Heights Road | Saint Paul, MN 55120    NEWS RELEASE

 

PATTERSON COMPANIES, INC.

SALES SUMMARY

(Dollars in thousands)

(Unaudited)

 

     October 27,
2018
     October 28,
2017
     Total
Sales
Growth
    Foreign
Exchange
Impact
    Other (a)     Internal
Sales
Growth
 

Three Months Ended

              

Consolidated net sales

              

Consumable

   $ 1,138,251      $ 1,116,091        2.0     (0.4 )%      (0.1 )%      2.5

Equipment and software

     182,120        181,337        0.4       (0.2     —         0.6  

Other

     84,381        88,309        (4.4     (0.2     —         (4.2
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 1,404,752      $ 1,385,737        1.4     (0.3 )%      (0.1 )%      1.8
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Dental

              

Consumable

   $ 303,806      $ 311,217        (2.4 )%      (0.2 )%      —       (2.2 )% 

Equipment and software

     167,686        169,513        (1.1     (0.2     —         (0.9

Other

     71,024        72,900        (2.6     (0.2     —         (2.4
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 542,516      $ 553,630        (2.0 )%      (0.2 )%      —       (1.8 )% 
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Animal Health

              

Consumable

   $ 834,445      $ 804,874        3.7     (0.4 )%      (0.2 )%      4.3

Equipment and software

     14,434        11,824        22.1       —         —         22.1  

Other

     6,529        6,885        (5.2     (0.3     —         (4.9
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 855,408      $ 823,583        3.9     (0.4 )%      (0.2 )%      4.5
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Corporate

              

Other

   $ 6,828      $ 8,524        (19.9 )%      —       —       (19.9 )% 
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 6,828      $ 8,524        (19.9 )%      —       —       (19.9 )% 
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

 

(a) 

Sales of certain products previously recognized on a gross basis were recognized on a net basis during the three and six months ended October 27, 2018.

 

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PATTERSON COMPANIES | 1031 Mendota Heights Road | Saint Paul, MN 55120    NEWS RELEASE

 

PATTERSON COMPANIES, INC.

SALES SUMMARY

(Dollars in thousands)

(Unaudited)

 

     October 27,
2018
     October 28,
2017
     Total
Sales
Growth
    Foreign
Exchange
Impact
    Other (a)     Internal
Sales
Growth
 

Six Months Ended

              

Consolidated net sales

              

Consumable

   $ 2,247,648      $ 2,196,196        2.3     0.1     (0.2 )%      2.4

Equipment and software

     329,018        318,286        3.4       (0.1     —         3.5  

Other

     164,406        175,370        (6.3       —         (6.3
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 2,741,072      $ 2,689,852        1.9     0.1     (0.2 )%      2.0
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Dental

              

Consumable

   $ 608,045      $ 631,395        (3.7 )%      —       —       (3.7 )% 

Equipment and software

     302,643        297,376        1.8       (0.1     —         1.9  

Other

     137,892        143,666        (4.0     —         —         (4.0
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 1,048,580      $ 1,072,437        (2.2 )%      —       —       (2.2 )% 
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Animal Health

              

Consumable

   $ 1,639,603      $ 1,564,801        4.8     0.1     (0.3 )%      5.0

Equipment and software

     26,375        20,910        26.1       —         —         26.1  

Other

     14,644        14,008        4.5       0.7       —         3.8  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 1,680,622      $ 1,599,719        5.1     0.1     (0.3 )%      5.3
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Corporate

              

Other

   $ 11,870      $ 17,696        (32.9 )%      —       —       (32.9 )% 
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 11,870      $ 17,696        (32.9 )%      —       —       (32.9 )% 
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

 

(a) 

Sales of certain products previously recognized on a gross basis were recognized on a net basis during the three and six months ended October 27, 2018.

 

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PATTERSON COMPANIES | 1031 Mendota Heights Road | Saint Paul, MN 55120    NEWS RELEASE

 

PATTERSON COMPANIES, INC.

OPERATING INCOME BY SEGMENT

(In thousands)

(Unaudited)

 

     Three Months Ended     Six Months Ended  
     October 27,
2018
    October 28,
2017
    October 27,
2018
    October 28,
2017
 

Operating income (loss)

        

Dental

   $ 41,594     $ 65,207     $ 77,467     $ 124,726  

Animal Health

     22,031       23,217       41,063       39,893  

Corporate

     (22,409     (16,665     (72,800     (36,027
  

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 41,216     $ 71,759     $ 45,730     $ 128,592  
  

 

 

   

 

 

   

 

 

   

 

 

 

 

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PATTERSON COMPANIES | 1031 Mendota Heights Road | Saint Paul, MN 55120    NEWS RELEASE

 

PATTERSON COMPANIES, INC.

RECONCILIATION OF GAAP TO NON-GAAP MEASURES

(Dollars in thousands, except per share amounts)

(Unaudited)

 

For the three months ended October 27, 2018

   GAAP     Deal
amortization
     Integration
and business
restructuring
expenses
     Legal reserve      Non-GAAP  

Operating income

   $ 41,216     $ 9,715      $ —        $ —        $ 50,931  

Other expense, net

     (3,515     —          —          —          (3,515
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Income before taxes

     37,701       9,715        —          —          47,416  

Income tax expense

     9,055       2,289        —          —          11,344  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Net income

     28,646       7,426        —          —          36,072  

Net loss attributable to noncontrolling interests

     (223     —          —          —          (223
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Net income attributable to Patterson Companies, Inc.

   $ 28,869     $ 7,426      $ —        $ —        $ 36,295  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Diluted earnings per share attributable to Patterson Companies, Inc.*

   $ 0.31     $ 0.08      $ —        $ —        $ 0.39  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Operating income as a % of sales

     2.9              3.6

Effective tax rate

     24.0              23.9

For the three months ended October 28, 2017

   GAAP     Deal
amortization
     Integration
and business
restructuring
expenses
     Legal reserve      Non-GAAP  

Operating income

   $ 71,759     $ 9,660      $ 1,688      $ —        $ 83,107  

Other expense, net

     (10,308     —          —          —          (10,308
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Income before taxes

     61,451       9,660        1,688        —          72,799  

Income tax expense

     21,207       3,346        638        —          25,191  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Net income

     40,244       6,314        1,050        —          47,608  

Net loss attributable to noncontrolling interests

     —         —          —          —          —    
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Net income attributable to Patterson Companies, Inc.

   $ 40,244     $ 6,314      $ 1,050      $ —        $ 47,608  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Diluted earnings per share attributable to Patterson Companies, Inc.*

   $ 0.43     $ 0.07      $ 0.01      $ —        $ 0.51  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Operating income as a % of sales

     5.2              6.0

Effective tax rate

     34.5              34.6

 

*

May not sum due to rounding

 

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PATTERSON COMPANIES | 1031 Mendota Heights Road | Saint Paul, MN 55120    NEWS RELEASE

 

PATTERSON COMPANIES, INC.

RECONCILIATION OF GAAP TO NON-GAAP MEASURES

(Dollars in thousands, except per share amounts)

(Unaudited)

 

For the six months ended October 27, 2018

   GAAP     Deal
amortization
     Integration and
business
restructuring
expenses
     Legal reserve      Non-GAAP  

Operating income

   $ 45,730     $ 19,681      $ —        $ 28,263      $ 93,674  

Other expense, net

     (13,483     —          —          —          (13,483
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Income before taxes

     32,247       19,681        —          28,263        80,191  

Income tax expense

     8,110       4,575        —          7,523        20,208  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Net income

     24,137       15,106        —          20,740        59,983  

Net loss attributable to noncontrolling interests

     (276     —          —          —          (276
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Net income attributable to Patterson Companies, Inc.

   $ 24,413     $ 15,106      $ —        $ 20,740      $ 60,259  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Diluted earnings per share attributable to Patterson Companies, Inc.*

   $ 0.26     $ 0.16      $ —        $ 0.22      $ 0.65  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Operating income as a % of sales

     1.7              3.4

Effective tax rate

     25.1              25.2

For the six months ended October 28, 2017

   GAAP     Deal
amortization
     Integration and
business
restructuring
expenses
     Legal reserve      Non-GAAP  

Operating income

   $ 128,592     $ 19,290      $ 8,594      $ —        $ 156,476  

Other expense, net

     (19,999     —          —          —          (19,999
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Income before taxes

     108,593       19,290        8,594        —          136,477  

Income tax expense

     37,502       6,691        3,249        —          47,442  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Net income

     71,091       12,599        5,345        —          89,035  

Net loss attributable to noncontrolling interests

     —         —          —          —          —    
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Net income attributable to Patterson Companies, Inc.

   $ 71,091     $ 12,599      $ 5,345      $ —        $ 89,035  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Diluted earnings per share attributable to Patterson Companies, Inc.*

   $ 0.76     $ 0.13      $ 0.06      $ —        $ 0.95  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Operating income as a % of sales

     4.8              5.8

Effective tax rate

     34.5              34.8

 

*

May not sum due to rounding

 

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