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Patterson Companies, Inc. Message Board

  • bluecheese4u bluecheese4u Nov 21, 2012 9:11 AM Flag

    Patterson Companies Reports Second Quarter Operating Results

    Patterson Companies Reports Second Quarter Operating Results

    St. Paul, MN—November 20, 2012— Patterson Companies, Inc. (Nasdaq: PDCO) today
    reported consolidated sales of $867,193,000 for the second quarter of fiscal 2013 ended October
    27, an increase of 1% from $856,875,000 in the year-earlier period. Net income of $45,542,000
    or $0.44 per diluted share, compared to $48,954,000 or $0.43 per diluted share in the second
    quarter of fiscal 2012. Net income in this year’s second quarter was affected primarily by belowplan
    sales of dental equipment, as well as the absorption of $3.0 million of incremental interest
    expense related to Patterson’s debt issuance in the third quarter of fiscal 2012
    Patterson Dental
    Patterson Dental, Patterson’s largest business, reported sales of $549,149,000, substantially
    unchanged from last year’s second quarter.
     Sales of consumable dental supplies and printed office products increased 1%.
     Mid-single digit revenue growth of technology products was offset by softness in basic
    equipment resulting in a 3% decline in sales of dental equipment and software. Demand
    for the next-generation CEREC system incorporating the new Omnicam intraoral camera
    was strong during the quarter, but sales of this recently introduced system were
    constrained by product availability.
     Sales of other services and products, consisting primarily of technical service, parts and
    labor, software support services and artificial teeth, increased 2% from last year’s second
    Webster Veterinary
    Internally-generated sales of the Webster Veterinary unit increased 13% in the second quarter. A
    change in a distribution agreement for nutritional products in the fourth quarter of fiscal 2012
    reduced Webster’s second quarter reported sales growth by approximately six percentage points.
    Webster reported sales of $184,375,000 for the quarter.
    Patterson Medical
    Sales of Patterson Medical, the rehabilitation supply and equipment unit, which totaled
    $133,669,000, were virtually unchanged from the year-earlier period. Patterson Medical’s April
    2012 acquisition of Surgical Synergies Pty Ltd., a distributor of physiotherapy, rehabilitation and
    mobility products serving the Australian and New Zealand markets, contributed approximately
    one percentage point of sales growth in the second quarter.
    Scott P. Anderson, president and chief executive officer, commented: “Several areas of our
    business, including dental technology equipment and Webster Veterinary, performed well in the
    second quarter. On balance, however, we are not satisfied with our recent operating results,
    which did not meet our expectations, and we are committed to strengthening Patterson’s longterm
    performance. While our businesses, like many others, are challenged by current economic
    conditions, we will continue to make the investments that position Patterson to capitalize upon
    opportunities in each of our markets.”
    He continued: “Sales of basic dental equipment, including chairs, units and lighting, were below
    planned levels. This shortfall was partially offset by continued growth of our industry-leading
    range of technology equipment, reflecting the ongoing trend toward the digitization of dentistry.
    We were particularly encouraged by robust demand for the next-generation CEREC Omnicam
    system, which became available on a limited basis in the second quarter. This important new
    product is significantly easier to use than prior versions, while further improving clinical outcomes.
    We expect the production volumes to ramp up during the second half of our fiscal year.”
    “Webster’s solidly higher second quarter sales growth was generated by strong demand for
    consumable supplies,” Anderson said. “To further strengthen its competitive position, Webster is focusing resources on its growing range of technology solutions for veterinarians and their clients,
    in addition to expanding local technical support capabilities for its equipment business.”
    He added: “Sales of Patterson Medical were below our internal forecast as moderately higher
    sales of consumable supplies in the U.S. were offset by continued weakness in the unit’s
    international and equipment business. Despite U.S. healthcare regulatory uncertainties and the
    weak economic environment in its global markets, we believe Patterson Medical is wellpositioned
    to capitalize upon positive long-term demographic trends in the worldwide
    rehabilitation market.”
    Patterson repurchased approximately 1.6 million common shares during the second quarter
    under its 25 million-share buyback authorization that expires in 2016. Approximately 8 million
    shares remain available for repurchase under this authorization.
    Reflecting the second quarter sales shortfall and outlook for continued economic uncertainty,
    Patterson reduced its previously-issued fiscal 2013 financial guidance of $2.10 to $2.16 per
    diluted share to a new range of $2.00 to $2.06.
    About Patterson Companies, Inc.
    Patterson Companies, Inc. is a value-added distributor serving the dental, companion-pet
    veterinarian and rehabilitation supply markets.
    Dental Market
    As Patterson’s largest business, Patterson Dental 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.
    Veterinary Market
    Webster Veterinary is a leading distributor of consumable veterinary supplies, equipment and
    software, diagnostic products, vaccines and pharmaceuticals to companion-pet veterinary clinics.
    Rehabilitation Market
    Patterson Medical is the world’s leading distributor of rehabilitation supplies and non-wheelchair
    assistive patient products to the physical and occupational therapy markets. The unit’s global
    customer base includes hospitals, long-term care facilities, clinics and dealers.


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