pdco-20250125

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 January 25, 2025.


☐			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)

____________________________________________________________


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 February 17, 2025, there were 88,474,000 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			29

Item 1A - Risk Factors			29

Item 2 - Unregistered Sales of Equity Securities and Use of Proceeds			31

Item 5 - Other Information			31

Item 6 - Exhibits			33

Signatures			34

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)


	January 25, 2025		April 27, 2024
ASSETS
Current assets:
Cash and cash equivalents	$	134,996	$	114,462
Receivables, net of allowance for doubtful accounts of $2,518 and $2,731	469,924		547,287
Inventory, net	889,348		782,898
Prepaid expenses and other current assets	343,366		334,116
Total current assets	1,837,634		1,778,763
Property and equipment, net	227,802		229,081
Operating lease right-of-use assets, net	121,613		122,295
Long-term receivables, net	116,839		129,876
Goodwill	159,622		156,328
Identifiable intangibles, net	170,523		193,261
Investments	88,649		166,320
Other non-current assets, net	109,904		120,808
Total assets	$	2,832,586	$	2,896,732
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	644,861	$	745,375
Accrued payroll expense	67,946		78,211
Other accrued liabilities	136,794		167,399
Operating lease liabilities	26,945		32,815
Current maturities of long-term debt	126,875		122,750
Borrowings on revolving credit	302,000		186,000
Total current liabilities	1,305,421		1,332,550
Long-term debt	321,763		328,911
Non-current operating lease liabilities	98,053		92,464
Other non-current liabilities	117,434		141,075
Total liabilities	1,842,671		1,895,000
Stockholders’ equity:
Common stock, $0.01 par value: 600,000 shares authorized; 88,454 and 89,701 shares issued and outstanding	885		897
Additional paid-in capital	278,744		258,679
Accumulated other comprehensive loss	(96,868)		(89,915)
Retained earnings	806,800		831,483

Total Patterson Companies, Inc. stockholders' equity	989,561		1,001,144
Noncontrolling interests	354		588
Total stockholders’ equity	989,915		1,001,732
Total liabilities and stockholders’ equity	$	2,832,586	$	2,896,732

See accompanying notes

Table of Contents

PATTERSON COMPANIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

AND OTHER COMPREHENSIVE INCOME

(In thousands, except per share amounts)

(Unaudited)


	Three Months Ended				Nine Months Ended
	January 25, 2025		January 27, 2024		January 25, 2025		January 27, 2024
Net sales	$	1,572,411	$	1,616,095	$	4,788,528	$	4,845,612
Cost of sales	1,251,587		1,265,089		3,827,003		3,836,525
Gross profit	320,824		351,006		961,525		1,009,087
Operating expenses	275,383		280,994		849,079		843,950
Operating income	45,441		70,012		112,446		165,137
Other income (expense):

Other income, net	8,147		3,653		19,566		22,650
Interest expense	(10,753)		(11,725)		(35,774)		(31,879)
Income before taxes	42,835		61,940		96,238		155,908
Income tax expense	11,665		14,347		24,733		37,330


Net income	31,170		47,593		71,505		118,578
Net loss attributable to noncontrolling interests	(85)		(110)		(234)		(317)
Net income attributable to Patterson Companies, Inc.	$	31,255	$	47,703	$	71,739	$	118,895
Earnings per share attributable to Patterson Companies, Inc.:


Basic	$	0.35	$	0.52	$	0.81	$	1.26



Diluted	$	0.35	$	0.52	$	0.81	$	1.26
Weighted average shares:
Basic	88,306		92,009		88,197		94,088
Diluted	89,070		92,519		88,871		94,704

Comprehensive income:
Net income	$	31,170	$	47,593	$	71,505	$	118,578
Foreign currency translation (loss) gain	(11,760)		12,538		(7,735)		2,317
Cash flow hedges, net of tax	261		261		782		782
Comprehensive income	$	19,671	$	60,392	$	64,552	$	121,677

See accompanying notes

Table of Contents

PATTERSON COMPANIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(In thousands)

(Unaudited)


	Common Stock			Additional Paid-in Capital		Accumulated Other Comprehensive Loss		Retained Earnings		Non-controlling Interests		Total
	Shares	Amount
Balance at April 29, 2023	96,350	$	964	$	233,706	$	(89,262)	$	972,127	$	1,000	$	1,118,535
Foreign currency translation	—	—		—		7,368		—		—		7,368
Cash flow hedges	—	—		—		261		—		—		261
Net income (loss)	—	—		—		—		31,234		(104)		31,130
Dividends declared ($0.26 per common share)	—	—		—		—		(25,134)		—		(25,134)
Common stock issued	565	5		1,569		—		—		—		1,574
Repurchases of common stock	(1,109)	(11)		—		—		(29,497)		—		(29,508)
Stock-based compensation	—	—		7,015		—		—		—		7,015




Balance at July 29, 2023	95,806	958		242,290		(81,633)		948,730		896		1,111,241
Foreign currency translation	—	—		—		(17,589)		—		—		(17,589)
Cash flow hedges	—	—		—		260		—		—		260
Net income (loss)	—	—		—		—		39,958		(103)		39,855
Dividends declared ($0.26 per common share)	—	—		—		—		(24,897)		—		(24,897)
Common stock issued	180	2		3,226		—		—		—		3,228
Repurchases of common stock	(1,897)	(19)		(661)		—		(60,964)		—		(61,644)
Stock-based compensation	—	—		4,635		—		—		—		4,635

Balance at October 28, 2023	94,089	941		249,490		(98,962)		902,827		793		1,055,089
Foreign currency translation	—	—		—		12,538		—		—		12,538
Cash flow hedges	—	—		—		261		—		—		261
Net income (loss)	—	—		—		—		47,703		(110)		47,593
Dividends declared ($0.26 per common share)	—	—		—		—		(23,591)		—		(23,591)
Common stock issued	103	1		1,844		—		—		—		1,845
Repurchases of common stock	(4,101)	(41)		(1,219)		—		(124,055)		—		(125,315)
Stock-based compensation	—	—		3,745		—		—		—		3,745

Balance at January 27, 2024	90,091	901		253,860		(86,163)		802,884		683		972,165
Foreign currency translation	—	—		—		(4,012)		—		—		(4,012)
Cash flow hedges	—	—		—		260		—		—		260
Net income (loss)	—	—		—		—		67,036		(95)		66,941
Dividends declared ($0.26 per common share)	—	—		—		—		(23,521)		—		(23,521)
Common stock issued	107	1		2,462		—		—		—		2,463
Repurchases of common stock	(497)	(5)		(119)		—		(14,916)		—		(15,040)
Stock-based compensation	—	—		2,476		—		—		—		2,476

Balance at April 27, 2024	89,701	$	897	$	258,679	$	(89,915)	$	831,483	$	588	$	1,001,732

See accompanying notes

Table of Contents

PATTERSON COMPANIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(In thousands)

(Unaudited)


	Common Stock			Additional Paid-in Capital		Accumulated Other Comprehensive Loss		Retained Earnings	Non-controlling Interests	Total
	Shares	Amount
Balance at April 27, 2024	89,701	$	897	$	258,679	$	(

SEC Form 10-Q filed by Patterson Companies Inc.