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Patterson Companies (PDCO) investor relations material
Patterson Companies Q3 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Q3 FY2025 net sales were $1.57B, down 2.7% year-over-year, with net income of $31.3M, down from $47.7M.
The company is being acquired by Patient Square Capital for $31.35 per share in cash, a $4.1B deal expected to close in April 2025.
Dental segment sales declined 6.4%, while Animal Health segment sales increased 0.5%.
Gross margin and operating income declined, impacted by margin pressure, increased LIFO expense, and legal/medical costs.
No dividend was declared in the quarter due to merger agreement restrictions.
Financial highlights
Q3 FY2025 net sales: $1.57B (down 2.7%); nine months: $4.79B (down 1.2%).
Q3 net income: $31.3M ($0.35/share) vs. $47.7M ($0.52/share) prior year; adjusted net income: $38.7M ($0.43/share).
Nine-month net income: $71.7M ($0.81/share) vs. $118.9M ($1.26/share); adjusted: $101.6M ($1.14/share).
Gross profit margin for Q3: 20.4% GAAP (down 130 bps); operating margin: 2.9% GAAP, 3.6% adjusted.
Cash flow from operations for nine months: $(735.1)M, mainly due to receivables securitization and working capital changes.
Outlook and guidance
Merger with Patient Square Capital expected to close in April 2025, after which the company will become private.
No further dividends or share repurchases anticipated during the merger process.
No updated forward-looking earnings guidance or earnings call due to pending acquisition.
Annual pre-tax savings from restructuring estimated at $16M, with $10M expected in FY2025.
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