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Patterson Companies Inc. (PDCO) has submitted its 10-Q filing for the quarterly period ended October 26, 2024.
The filing reports consolidated net sales of $1,674.4 million for the quarter, a 1.3% increase from the previous year's $1,652.8 million. The increase was partially due to favorable foreign exchange rate changes.
Net sales in the Dental segment decreased by 2.3% to $611.7 million, impacted by declines in equipment and value-added services sales, attributed to a cybersecurity attack on Change Healthcare.
Animal Health segment net sales increased by 2.9% to $1,054.6 million, with consumables and value-added services showing growth.
The consolidated gross profit margin decreased to 19.6% from 20.5% in the prior year, affected by an asset impairment charge and margin pressure in the Dental segment.
Operating expenses increased by 3.0% to $290.5 million, driven by severance charges and medical claims.
Operating income for the quarter was $37.6 million, down from $56.9 million in the previous year, with the Dental segment experiencing a significant decrease.
Net other expense was $2.1 million, improved from $3.5 million in the prior year, due to a gain on the sale of an investment in VetSource.
The effective income tax rate was 24.9%, slightly lower than the previous year's 25.3%, benefiting from federal tax credits.
Net income attributable to Patterson Companies was $26.8 million, with diluted earnings per share of $0.30, compared to $0.42 in the prior year.
For the six-month period, consolidated net sales were $3,216.1 million, a slight decrease from $3,229.5 million, with the Dental segment declining and Animal Health segment remaining stable.
The company reported a decrease in gross profit margin to 19.9% for the six-month period, with operating expenses rising by 1.9%.
Operating income for the six months was $67.0 million, down from $95.1 million, primarily due to decreases in the Dental segment.
Net income for the six months was $40.5 million, with diluted earnings per share of $0.46, down from $0.74 in the previous year.
The filing also noted a restructuring charge and the sale of the VetSource investment, contributing to financial results.
Patterson Companies announced it is evaluating strategic alternatives, including potential mergers or sales, to maximize shareholder value.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Patterson Companies Inc. quarterly 10-Q report dated December 5, 2024. To report an error, please email earnings@qz.com.