pdco-20211030

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

____________________________________________________________

FORM 10-Q

____________________________________________________________


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED October 30, 2021.


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File No. 0-20572

__________________________________________________________

PATTERSON COMPANIES, INC.

(Exact Name of Registrant as Specified in Its Charter)

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Minnesota		41-0886515
(State or Other Jurisdiction of Incorporation or Organization)		(I.R.S. Employer Identification Number)
1031 Mendota Heights Road
St. Paul	Minnesota	55120
(Address of Principal Executive Offices)		(Zip Code)

(651) 686-1600

(Registrant’s Telephone Number, Including Area Code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of exchange on which registered
Common Stock, par value $.01	PDCO	NASDAQ Global Select Market

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of November 23, 2021, there were 97,496,000 shares of Common Stock of the registrant issued and outstanding.

Table of Contents

PATTERSON COMPANIES, INC.

INDEX


			Page
PART I - FINANCIAL INFORMATION

Item 1- Financial Statements			3

Condensed Consolidated Balance Sheets			3

Condensed Consolidated Statements of Operations and Other Comprehensive Income			4

Condensed Consolidated Statements of Changes in Stockholders' Equity			5

Condensed Consolidated Statements of Cash Flows			7

Notes to Condensed Consolidated Financial Statements			8

Item 2 - Management’s Discussion and Analysis of Financial Condition and Results of Operations			20

Item 3 - Quantitative and Qualitative Disclosures about Market Risk			27

Item 4 - Controls and Procedures			27

PART II - OTHER INFORMATION

Item 1 - Legal Proceedings			28

Item 1A - Risk Factors			28

Item 2 - Unregistered Sales of Equity Securities and Use of Proceeds			28

Item 6 - Exhibits			29

Signatures			30

Table of Contents

PART I—FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

PATTERSON COMPANIES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except per share amounts)

(Unaudited)


	October 30, 2021		April 24, 2021
ASSETS
Current assets:
Cash and cash equivalents	$	154,152	$	143,244
Receivables, net of allowance for doubtful accounts of $6,459 and $6,138	481,844		449,235
Inventory	830,121		736,778
Prepaid expenses and other current assets	333,314		286,672
Total current assets	1,799,431		1,615,929
Property and equipment, net	213,362		219,438
Operating lease right-of-use assets, net	74,095		77,217
Long-term receivables, net	170,249		223,970
Goodwill, net	140,884		139,932
Identifiable intangibles, net	272,750		279,644
Investments	144,082		105,522
Other non-current assets	87,872		89,859
Total assets	$	2,902,725	$	2,751,511
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	773,230	$	609,264
Accrued payroll expense	73,839		118,425
Other accrued liabilities	171,044		175,975
Operating lease liabilities	31,191		32,252
Current maturities of long-term debt	100,750		100,750
Borrowings on revolving credit	43,000		53,000
Total current liabilities	1,193,054		1,089,666
Long-term debt	488,091		487,545
Non-current operating lease liabilities	45,217		48,318
Other non-current liabilities	164,381		161,311
Total liabilities	1,890,743		1,786,840
Stockholders’ equity:
Common stock, $0.01 par value: 600,000 shares authorized; 97,492 and 96,813 shares issued and outstanding	975		968
Additional paid-in capital	184,548		169,099
Accumulated other comprehensive loss	(

SEC Form 10-Q filed by Patterson Companies, Inc.