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Dental & Animal Health Supplier Posts 10% Yearly Sales Gains
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Shares of Patterson Companies Inc. traded 11% higher after the dental supply and animal health products distributor reported Q4/22 and FY/22 financial results highlighting a 9.9% increase in annual sales and an expansion in operating margins.

International dental and animal health products distributor Patterson Companies Inc. (PDCO:NASDAQ) today announced financial results for its fourth quarter and full fiscal year of 2022 ended April 30, 2022.

The company reported that consolidated net sales in Q4/22 increased by 4.9% to $1.64 billion, compared to $1.56 billion in Q4/21 and added that internal sales in the quarter were up 5.1% year-over-year after currency and other adjustments.

Patterson reported that Dental segment net sales in Q4/22 came in at $636.4 million and Animal Health segment net sales in the quarter totaled $1.0 billion.

The firm stated that in Q4/22 it posted net income of $63.9 million, or $0.65 per diluted share, versus $28.8 million, or $0.30 per diluted share in Q4/21.

The firm's President and CEO Mark Walchirk commented, "Patterson delivered an excellent fourth quarter, culminating a year in which we delivered both top and bottom line growth that exceeded our expectations…During FY/22, we achieved $6.5 billion in sales, delivered on our commitment to achieve year-over-year adjusted operating margin improvement, returned cash to shareholders as part of our balanced capital allocation strategy and drove full-year adjusted EPS growth of 19% over the prior year."

The company indicated that in Q4/22 the firm's board of directors approved a quarterly dividend of $0.26 per share and returned a total of $25.4 million in the form of cash dividends to shareholders. In addition, the company stated that in Q4/22 it repurchased approximately 1.0 million of its common shares under its existing share repurchase plan.

The company reported that total net sales during FY/22 rose by 9.9% to $6.5 billion, compared to $5.9 billion in FY/21. The firm noted that the increase in sales was partially due to an extra week of sales in Q1/22 versus the prior year.

The firm stated for FY/22 it posted net income of $203.2 million, or $2.06 per diluted share, which was up from $156.0 million, or $1.61 per diluted share during FY/21. The company added that on a non-GAAP basis, it had adjusted net income of $223.7 million, or $2.27 per diluted share, versus adjusted net income of $185.0 million, or $1.91 per diluted share in FY/21. Patterson mentioned that the one extra selling week added about $0.04 to adjusted earnings per diluted share for FY/22.

Patterson offered some forward guidance and indicated that though the present macro environment is expected to have a moderate impact on its end markets, it anticipates that in FY/23 it will be able to increase revenues and expand operating margins. The company advised that for FY/23 it expects to register GAAP net earnings of $1.96-2.06 per diluted share and non-GAAP adjusted earnings of $2.25-2.35 per diluted share.

Patterson is based in St. Paul, Minn., and conducts its operations through two primary business units. The company works to deliver the latest products, technologies and services to both dental and animal health clients in North America and the U.K. The firm distributes greater than 130,000 different products and equipment in its Dental business line thru 65 branches and over 144,000 distinct products and equipment across 80 locations in its Veterinary and Animal Health business segment.

Patterson Companies started the day with a market cap of around $2.7 billion with approximately 97.6 million shares outstanding and a short interest of about 5.4%. PDCO shares opened 8% higher today at $30.20 (+$2.24, +8.01%) over yesterday's $27.96 closing price. The stock has traded today between $29.5901 and $31.71 per share and is currently trading at $31.10 (+$3.14, +11.23%).

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