Dragging a handsome value: Patterson Companies, Inc. (NASDAQ: PDCO)

On Friday, Patterson Companies, Inc. (NASDAQ: PDCO) started its trading session with the price $25.5 and closed at price of $25.04 by scoring -2.15%. Day range of the stock was $24.94 – $25.55. PDCO stock traded with total volume of 579040 shares while the average trading capacity remained 1298895 shares.

Patterson Companies, Inc. (PDCO) recently stated operating results for its fiscal year 2020 and fourth quarter ended April 25, 2020

“The strategies we executed during fiscal 2020 produced accelerating performance through the first 11 months, enabling us to exceed our goals for the year despite the impact of COVID-19, resulting in full fiscal 2020 adjusted earnings growth of 10.7 percent,” stated Mark Walchirk, President and CEO of Patterson Companies. “Our strong business momentum from the first three quarters of fiscal 2020 continued to build during the first two months of our fiscal fourth quarter, helping to deliver fourth quarter adjusted earnings growth of 16.2 percent contrast to the same period last year.

Fourth-Quarter Fiscal 2020 Results

Patterson’s performance in the first two months of the fourth quarter was offset by disruption caused by COVID-19 across the Company’s end markets starting in late-March and April, considerably impacting overall fourth quarter results.

Consolidated net sales were about $1.29B (see attached Sales Summary for further details) in the fiscal fourth quarter ended April 25, 2020, a decrease of 10.5 percent contrast to the same period last year. Internal sales, which are adjusted for the effects of currency translation and changes in product selling relationships, reduced 10.0 percent. Internal sales for the first two months of the fiscal fourth quarter, ended on March 21, about when COVID-19 began to impact performance, increased 5.1 percent contrast to the same period last year.

Stated net loss attributable to Patterson Companies, Inc. for the fourth quarter of fiscal 2020 totaled $608.6M, or $6.44 per diluted share, contrast to net income attributable to Patterson Companies, Inc. of $28.0M, or $0.30 per diluted share, in the fourth quarter of fiscal 2019. The year-over-year decrease in the period is primarily Because of a pre-tax $675.1M goodwill impairment charge related to our Animal Health section.

Fourth-quarter adjusted net income1 attributable to Patterson Companies, Inc., which excludes deal amortization, integration and business restructuring expenses, an investment loss and goodwill impairment, totaled $41.1M for the fourth quarter of fiscal 2020, or $0.43 per diluted share, contrast to $35.0M in the same quarter of fiscal 2019, or $0.37 per diluted share. This represents a 16.2 percent improvement over the previous year period. The year-over-year increase in the period is attributable to the strong sales momentum at the starting of the fourth quarter and immediate expense reductions in response to COVID-19.

Full-Year Fiscal 2020 Results

Patterson’s fiscal 2020 results reflect the sales, profitability and cash flow improvements the Company achieved throughout the first 11 months of its fiscal year, which enabled Patterson to deliver year-over-year adjusted earnings growth despite the end market disruption caused by COVID-19 starting in late-March and April.

Consolidated stated net sales for fiscal 2020 totaled $5.49B, a 1.5 percent year-over-year decrease. Internal sales reduced 0.9 percent contrast to fiscal 2019. Internal sales for the first 11 months of the fiscal year, ended on March 21, increased 2.7 percent contrast to the same period last year. Stated net loss attributable to Patterson Companies, Inc. was $588.4M, or $6.25 per diluted share, contrast to stated net income attributable to Patterson Companies, Inc. of $83.6M, or $0.89 per diluted share in fiscal 2019. The year-over-year decline was primarily attributable to a pre-tax $675.1M goodwill impairment charge related to our Animal Health section.

Adjusted net income1 attributable to Patterson Companies, Inc., which excludes deal amortization, integration and business restructuring expenses, certain legal expenses, accelerated debt-related costs, discrete tax matters, investment (gain) loss and goodwill impairment, totaled $147.6M, or $1.55 per diluted share, contrast to $130.9M, or $1.40 per diluted share, in the year-before period. This represents a 10.7 percent improvement over the previous year. The year-over-year increase is primarily attributable to improved performance in the Dental section across consumables, equipment and value-added services.

PDCO has a gross margin of 21.80% and an operating margin of -10.40% while its profit margin remained -10.70% for the last 12 months. Its earnings per share (EPS) expected to touch remained -821.80% for this year while earning per share for the next 5-years is expected to reach at 3.02%.  The company has 94.46M of outstanding shares and 2.46B shares were floated in the market.

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