Wed, Feb 26, 9:42 PM (53 days ago)
Patterson Companies, Inc. (PDCO) reported a decline in quarterly performance for the period ending January 25, 2025, with net sales of $1,572.4 million, down 2.7% from $1,616.1 million in the prior year. The Dental segment saw a significant decrease in sales, attributed to lower consumable and equipment sales, while the Animal Health segment experienced slight growth. Gross profit margins decreased to 20.4%, impacted by rising costs and a $6.9 million asset impairment in the Dental segment. Operating income fell to $45.4 million, reflecting lower sales and increased legal and employee benefit expenses. Net income attributable to Patterson was $31.3 million, down from $47.7 million, with diluted earnings per share at $0.35. The company is facing uncertainties due to a planned merger with Paradigm Parent, LLC, which is expected to close in April 2025, pending shareholder approval. This merger may restrict dividend payments and share repurchases during its pendency. Cash flow from operations was negative, primarily due to changes in working capital. The company’s liquidity remains supported by cash reserves and credit availability, despite challenges in the macroeconomic environment.