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Patterson Dental Company Reports 20 Percent Earnings Per Share Growth For Fiscal 1999 Second Quarter

 Double-Digit Sales Growth and Strong Operating Efficiencies Drive Increased
                                Profitability

    ST. PAUL, Minn., Nov. 19 /PRNewswire/ -- Patterson Dental Company
(Nasdaq: PDCO) today reported record results for the second quarter and six
months ended October 24, 1998.  According to the company, strong sales of
dental supplies, equipment and practice management software contributed
favorably to the excellent second quarter performance.
    "The first half of fiscal 1999 has been extremely strong for us as a
result of a larger, better trained sales force, new products and services, and
growing contributions from acquisitions made over the last 12 months.  Our
outlook for the second half is equally promising.  We completed the
installation of our North American systems throughout our entire Canadian
operation, and are already seeing the benefits of a single-system operation
with increased sales, in Canadian dollars, in that region.  Our now
centralized North American system affords us significant opportunities to
reduce operating expenses by eliminating redundant operating and
administrative functions in Canada," said Peter L. Frechette, president and
chief executive officer.
    For the second quarter, net income rose 18.2 percent to $11.9 million, or
$0.36 per share, compared with $10.1 million, or $0.30 per share, in the
fiscal 1998 quarter.  The company's basic and diluted earnings per share are
the same.  Operating income was $18.7 million, up 19.0 percent from
$15.7 million last year.  Net sales for the second quarter increased 11.3
percent to $213.3 million from $191.6 million in the year-ago quarter.
    In the second quarter, sales of consumable supplies increased 11.4 percent
from a year earlier and equipment sales rose 12.2 percent.  Sales of high-tech
equipment are ramping up as advanced technologies become more accepted by
dentists.  The strong performance in sales of supplies and equipment was
supported by an increase in Patterson's sales network to 929 sales
representatives from 806 a year ago.
    EagleSoft, the company's practice management software provider, nearly
doubled its sales in the second quarter.  Broader exposure accessing
Patterson's customer base and an 89 percent increase in the dedicated
EagleSoft sales force led the expansion.
    Double-digit sales growth coupled with greater operating efficiency in
both U.S. and Canadian operations drove the operating margin improvement in
the second quarter.  Gross margin increased to 37.0 percent versus 36.9
percent in the year-ago period.  Operating expenses grew 9.4 percent during
the quarter while sales gained 11.3 percent, increasing operating margin to
8.8 percent from 8.2 percent last year.  Net margin for the quarter increased
to 5.6 percent from 5.3 percent in the fiscal 1998 second quarter.
    For the first half of fiscal 1999, net income rose 20.2 percent to
$22.1 million, or $0.66 per share, from $18.4 million, or $0.56 per share, a
year earlier.  Operating income increased 20.3 percent, and net sales for the
first six months of fiscal 1999 were $413.4 million compared with
$371.6 million in the same period a year ago, an 11.2 percent improvement.
    Patterson continues to report a strong financial position.  The company's
cash and cash equivalents were $29.7 million at October 24, 1998.
Stockholders' equity advanced 10.4 percent in the second quarter to
$232.1 million from $210.3 million at April 25, 1998.  Long-term debt remains
a nominal 1 percent of capitalization, and the current ratio was a healthy 3
to 1.
    Expectations for the third quarter and year are very positive as a result
of the benefits of acquisitions, an expanded sales force, and new product
introductions.  These ongoing initiatives should support the company's goal of
20 percent earnings growth for the year.
    Patterson Dental Company is one of the largest distributors of dental
products in North America.  The company supplies more than 82,500 products to
dentists, dental laboratories, institutions, physicians and other healthcare
providers.  These products include x-ray film, impression and restorative
materials, hand instruments, sterilization products, front office forms and
stationery as well as capital equipment.  Patterson markets its products and
services through more than 900 sales representatives and equipment specialists
in the United States and Canada.
    This press release contains forward-looking statements as defined in the
Private Securities Litigation Reform Act of 1995.  Forward-looking statements
involve risks and uncertainties which are beyond the company's ability to
control and in many cases the company cannot predict what factors may cause
actual results to differ materially from those indicated by the
forward-looking statements.  These factors may include, among others:
competition within the dental supply industry; changes in the economics of
dentistry, including reduced growth in expenditures by private dental
insurance plans and the effects of healthcare reform, which may affect future
per capita expenditures for dental services and the ability of dentists to
invest in or obtain reimbursement for the use of high-technology products; the
ability of the company to maintain satisfactory relationships with its sales
force; the effects of economic conditions; unforeseen operating risks; risks
associated with the dependence on manufacturers of the company's products; and
the availability of capital to finance planned growth.  These risks are
qualified in their entirety by cautionary language set forth in the company's
Form 10-K report filed July 16, 1998, and other documents filed with the
Securities and Exchange Commission.

                             Patterson Dental Company
                   Condensed Consolidated Statements Of Income
                   (In thousands except for earnings per share)
                                   (Unaudited)

                                   Quarter ended          Six months ended
                              October 24, October 25, October 24,  October 25,
                                  1998        1997       1998          1997

    Net sales                 $213,325      $191,635     $413,398    $371,623
    Gross profit                78,924        70,748      152,515     136,614
    Operating expenses          60,248        55,059      117,596     107,592
    Operating income            18,676        15,689       34,919      29,022
    Other income, net              394           251          814         456
    Income taxes                 7,173         5,877       13,607      11,075
    Net income                 $11,897       $10,063      $22,126     $18,403
    Earnings per share -
      Basic and Diluted          $0.36         $0.30        $0.66       $0.56
    Weighted average and
      dilutive potential shares
      outstanding               33,437        33,173       33,412      33,050
    Gross margin                 37.0%         36.9%        36.9%       36.8%
    Operating expenses as
      a % of sales               28.2%         28.7%        28.5%       29.0%
    Operating income as a
      % of sales                  8.8%          8.2%         8.4%        7.8%
    Effective tax rate           37.6%         36.9%        38.1%       37.6%
    Return on net sales           5.6%          5.3%         5.4%        5.0%


                             Patterson Dental Company
                      Condensed Consolidated Balance Sheets
                              (Dollars In thousands)


                                           October 24,       April 25,
                                               1998             1998
                                           (Unaudited)
    ASSETS
    Current assets:
      Cash and cash equivalents              $29,727           $35,619
      Accounts and notes receivables, net    105,412           106,252
      Inventory                               98,689            81,810
      Prepaid expenses and deferred taxes      4,390             3,980
        Total current assets                 238,218           227,661

    Property and equipment, net               35,934            37,998
    Intangibles and other                     49,657            50,714
      Total assets                          $323,809          $316,373

    LIABILITIES AND STOCKHOLDERS' EQUITY
    Current liabilities:
      Accounts payable                       $54,589           $60,652
      Other accrued liabilities               24,854            29,287
      Current maturities of long-term
        debt and bank indebtedness             1,255             4,466
        Total current liabilities             80,698            94,405
    Long-term debt                             2,550             2,736
    Deferred taxes                             2,017             2,017
      Total liabilities                       85,265            99,158
    Deferred credits                           6,469             6,912
    Stockholders' equity                     232,075           210,303
    TOTAL LIABILITIES AND STOCKHOLDERS'
      EQUITY                                $323,809          $316,373


SOURCE Patterson Dental Company




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CONTACT:
Ronald Ezerski, Executive Vice President &
CFO of Patterson Dental Company, 651-686-1600; or Leslie
Hunziker, General Information, Kathy Brunson, Analyst Inquiries,
or Laura Kuhlmann, Media Inquiries, 312-266-7800, all of The
Financial Relations Board
NOTE TO EDITORS: For further information on Patterson Dental free
of charge via fax, dial 1-800-PRO-INFO and enter the number 207