LONDON, UK / ACCESSWIRE / June 19, 2017 / Pro-Trader Daily publishes post-earnings coverage on Patterson Cos., Inc. (NASDAQ: PDCO) following the Company's reporting of its fourth quarter and fiscal 2017 financial results on May 25, 2017. The medical supplies conglomerate primarily in the business of veterinary and dental products reported a y-o-y decline in sales and earnings. The Company also recently announced a change of CEO and also declared a quarterly dividend. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Earnings Reviewed

Patterson reported consolidated net sales of $1.445 billion in its fiscal fourth quarter ended April 29, 2017, marginally lower compared to net sales of $1.453 billion for Q4 FY16. However, adjusting for the effects of currency translation, the Company's sales improved 0.8% on a y-o-y basis. Patterson's sales reported numbers lagged behind analysts' expectations of $1.47 billion.

For FY17, Patterson's net sales totaled $5.59 billion, reflecting a 3.8% from FY16 net sales of $5.39 billion. Adjusting for the effects of currency translation and the extra week in the prior fiscal-year period, the Company's sales for the year grew 6.5%.

For Q4 FY17, Patterson's net income from continuing operations was $61.4 million, or $0.65 per diluted share, compared to $65.6 million, or $0.68 per diluted share, in Q4 FY16. The Company's adjusted net income from continuing operations totaled $65.6 million for the reported quarter, down 11.4% versus adjusted net income of $74.1 million in the prior year quarter, while adjusted earnings per diluted share from continuing operations totaled $0.69, down 10.4% on a y-o-y basis. The Company's earnings surpassed Wall Street's expectations sales of $0.64 per share.

Patterson's net income from continuing operations for FY17 were $173.8 million, or $1.82 per diluted share, compared to $185.7 million, or $1.90 per diluted share, in FY16. The Company's adjusted net income from continuing operations, totaled $223.3 million, or $2.34 per diluted share, versus adjusted net income from continuing operations of $241.4 million, or $2.47 per diluted share, in the year ago comparable period.

Segment Results

During Q4 FY17, net sales in Patterson's Dental unit, which contributes approximately 42% of total sales, were $607.31 million, down 8.3% compared to net sales of $662.14 million in Q4 FY17. The division's sales declined 8.2% on a constant currency basis. The Dental segment's consumable dental supplies decreased 4.3% on a y-o-y basis to $339.40 million, while equipment sales fell to $194.49 million, primarily due to a decrease in sales of CEREC products, partially offset by solid growth in core equipment. The segment's sales from other services and products, primarily composed of technical service, parts and labor, software support services and office supplies came in at $73.42 million, increasing marginally by 0.1%.

For Q4 FY17, Patterson's net sales from the Animal Health segment, which represented approximately 58% of the overall sales, were $827.47 million, increasing 6.0% compared to sales of $780.79 million in Q4 FY16. On a constant currency basis, the segment's sales increased 8.6% compared to the year ago same quarter.

In the current quarter, Animal Health units' consumable sales rose 6.9% to $808.94 million, while Equipment and software sales grew 1.1% to $12.85million. The segment's Other sales slumped 49.9% to $5.69 million.

Cash Matters

As on April 29, 2017, Patterson's cash and cash equivalents totaled $94.96 million compared to $137.45 million as on April 30, 2016.

During FY17, Patterson repurchased approximately 2.9 million shares of its outstanding common stock, with a value of $125.4 million, leaving approximately 13.6 million shares for repurchase under the current authorization, which expires in March 2018.

On June 13, 2017, Patterson's Board of Directors declared a quarterly cash dividend of $0.26 per share. The dividend will be payable on, or about, July 28, 2017, to shareholders of record as of the close of business on July 14, 2017.

Fiscal 2018 Guidance

For FY18, Patterson is projecting GAAP earnings to be in the range of $1.90 to $2.05 per diluted share, while non-GAAP adjusted earnings are expected to be in the range of $2.25 to $2.40 per diluted share.

Leadership Transition

On June 01, 2017, Patterson announced that Scott P. Anderson, President, Chief Executive Officer and Chairman of the Board, will step down from those roles, effective immediately. Mr. Anderson will continue to serve as a Director until the 2017 Annual Meeting of Shareholders, but will not stand for re-election to the Board.

Patterson stated in the official press release that James W. Wiltz, a current director and the Company's former Chief Executive Officer, will assume the role of Interim President and Chief Executive Officer and remain on the Board. John D. Buck, currently the Company's Lead Director, will assume the role of non-executive Chairman. The Company stated that its Board of Directors has formed a search committee and has retained Spencer Stuart to begin an immediate search for a permanent President and CEO.

Stock Performance

On Friday, June 16, 2017, the stock closed the trading session at $46.88, marginally up 0.11% from its previous closing price of $46.83. A total volume of 1.04 million shares have exchanged hands, which was higher than the 3-month average volume of 939.77 thousand shares. Patterson Cos.' stock price surged 9.46% in the last one month, 3.08% in the past three months, and 16.79% in the previous six months. Furthermore, since the start of the year, shares of the Company have rallied 14.26%. The stock is trading at a PE ratio of 25.69 and has a dividend yield of 2.22%. The stock currently has a market cap of $4.55 billion.

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