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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.
Logotype for Patterson Companies Inc
Q3 2025 earnings summary26 Feb, 2025

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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Frequently asked questions

Patterson Companies, Inc. distributes and sells dental and animal health products in the United States, the United Kingdom, and Canada. It operates through Dental and Animal Health business units. The company's Dental unit offers consumable products, such as infection control, restorative materials, hand instruments, and consumable laboratory supplies; basic and advanced technology dental equipment; patient education systems; and office forms and stationery. Its Animal Health unit provides veterinary supplies comprising veterinary drugs, vaccines, extended shelf life biologics and plasma products, pharmaceuticals, diagnostics, micro-nutrients, practice management software tools and systems integration tools, medical equipment, surgical equipment, medical supplies for hospitals (veterinarian), therapeutic laser for use in the small animal practitioner market. Patterson Companies, Inc. was founded in 1877 and is headquartered in Saint Paul, Minnesota.

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