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Jan 29, 2022

Patterson Q3 2022 Earnings Report

Patterson Companies' operating results increased in Q3 2022

Key Takeaways

Patterson Companies reported a 2.9% increase in net sales to $1.6 billion and a 4.3% increase in internal sales. GAAP earnings were $0.58 per diluted share, while adjusted earnings were $0.55 per diluted share. The company raised its fiscal 2022 GAAP earnings guidance to $1.86 to $1.91 per diluted share and adjusted earnings guidance to $2.08 to $2.13 per diluted share.

Net sales increased 2.9% year-over-year to $1.6 billion.

Internal sales increased 4.3 percent.

GAAP earnings were $0.58 per diluted share and adjusted earnings of $0.55 per diluted share.

Fiscal 2022 GAAP earnings guidance range raised to $1.86 to $1.91 per diluted share and adjusted earnings guidance range to $2.08 to $2.13 per diluted share.

Total Revenue
$1.6B
Previous year: $1.55B
+3.0%
EPS
$0.55
Previous year: $0.58
-5.2%
Gross Profit
$337M
Previous year: $325M
+3.7%
Cash and Equivalents
$165M
Previous year: $156M
+5.8%
Free Cash Flow
-$306M
Previous year: -$189M
+62.3%
Total Assets
$2.86B
Previous year: $2.85B
+0.4%

Patterson

Patterson

Patterson Revenue by Segment

Forward Guidance

Patterson Companies updated its fiscal 2022 earnings guidance, which is provided on both a GAAP and non-GAAP adjusted basis.

Positive Outlook

  • GAAP earnings are expected to be in the range of $1.86 to $1.91 per diluted share, compared to our prior guidance of $1.69 to $1.79 per diluted share.
  • Non-GAAP adjusted earnings are expected to be in the range of $2.08 to $2.13 per diluted share, compared to our prior guidance of $2.00 to $2.10 per diluted share.
  • Guidance is for current operations as well as completed or previously announced acquisitions
  • Guidance does not include the impact of potential future acquisitions, dispositions or similar transactions, if any, or impairments and material restructurings beyond those previously publicly disclosed.
  • Guidance assumes North American and international market conditions remain consistent with current market conditions and that there are no material adverse developments associated with the pandemic.

Challenges Ahead

  • Gains on investments of approximately $75.3 million ($0.76 per diluted share) are excluded.
  • Inventory donation charges of approximately $36.9 million ($0.37 per diluted share) are excluded.
  • Deal amortization expenses of approximately $29.4 million ($0.30 per diluted share) are excluded.
  • Legal reserves of approximately $27.5 million ($0.28 per diluted share) are excluded.
  • Integration and business restructuring expenses of approximately $3.2 million ($0.03 per diluted share) are excluded.

Revenue & Expenses

Visualization of income flow from segment revenue to net income