Printer Friendly

PATTERSON DENTAL COMPANY REPORTS RECORD EARNINGS FOR THE FOURTH QUARTER AND FISCAL 1993

 MINNEAPOLIS, May 26 /PRNewswire/ -- Citing higher sales, improved operating margins from more efficient distribution, and sharply lower interest expense, Patterson Dental Company (NASDAQ: PDCO) reported record net income for the fourth quarter and fiscal year.
 For the year end April 24, 1993, Patterson Dental had net income of $12.8 million, an increase of 50 percent from net income of $8.5 million for the year ended April 25, 1992. Earnings per common share in fiscal 1993 were 90 cents on average common shares outstanding of 13.2 million versus 57 cents on average common shares outstanding of 12.3 million in fiscal 1992. Fiscal 1993 results include an extraordinary charge of $453,000 or 3 cents per share for costs and expenses associated with the early retirement of indebtedness. Net sales were $342.8 million in fiscal 1993, up 24 percent from $277.1 million in fiscal 1992.
 Net income in the fourth quarter of fiscal 1993 rose 56 percent to $3.6 million from $2.3 million in the year-ago quarter. Earnings per common share in the fourth quarter of fiscal 1993 were 24 cents on average common shares outstanding of 14.3 million compared to 16 cents on average common shares outstanding of 12.3 million for the fourth quarter of fiscal 1992. Net sales reached $89.2 million in the fourth quarter of fiscal 1993, an increase of 19 percent from $75 million in the year-ago quarter.
 In announcing the results, Peter L. Frechette, president and chief executive officer said, "Patterson Dental continues to benefit from our ability to efficiently ship more products through our distribution channels. Operating margin for the year improved to 5.9 percent from 4.9 percent one year ago, as inventory turns increased to 7.8 times from 7 times. Further consolidation of distribution centers, thus reducing redundancies in personnel, equipment and certain inventories while enhancing the ability to ship orders quickly and stock more items per facility, are expected to contribute to future margin improvements."
 Frechette said Patterson plans to have 8 national distribution centers in operation by April 1994, down from 11 at the end of fiscal 1993 and 15 at the end of fiscal 1992. New facilities are planned in Jacksonville, Fla.; Dallas-Ft. Worth and at a site to be chosen in California.
 The sales increase in fiscal 1993 was due in part to higher shipments of equipment and consumable supplies used to prevent the transmission of disease, the company reported. These products accounted for approximately 10 percentage points of the 24 percent sales increase. While the rate of increase for equipment sales including handpieces and sterilizers is expected to subside in the future, as dentists purchased these items to satisfy stricter regulations, sales of consumable products related to the asepsis issue is expected to continue at its current level, the company said.
 Patterson continues to expand market share through the addition of new customers and higher sales to existing customers, Frechette said. For fiscal 1993, the number of customers for consumable products rose 7.5 percent to about 60,000 while average sales per customer increased nearly 16 percent. Consumables sales rose 25 percent in fiscal 1993, while equipment sales increased 24 percent.
 Higher profits and proceeds of $30.9 million from the initial public offering last October resulted in a strong balance sheet, the company said. Cash and equivalents at the end of fiscal 1993 were $17.1 million compared to $4.1 million at the end of fiscal 1992. Patterson is now a debt-free company, which contributed to a 55 percent decline in interest expense during fiscal 1993. Stockholders' equity at fiscal year-end 1993 was $53.1 million compared to $10.7 million at fiscal year-end 1992.
 "We are in an excellent position for both internal and external expansion in fiscal 1994," Frechette said. "The broadest product selection and most advanced computer order entry options in the industry give Patterson a competitive advantage in both signing up new customers and increasing sales to existing customers."
 Patterson Dental Company is the second largest distributor of dental products in the United States. The company supplies more than 50,000 products to dentists, dental laboratories and institutions, including x-ray film and solutions, impression and restorative materials, hand instruments, and sterilization and protective products and equipment. Patterson markets its products and services through 500 company employed sales representatives and equipment specialists nationwide and ships approximately 96 percent of its orders within 24 hours of receipt.
 PATTERSON DENTAL COMPANY
 CONDENSED CONSOLIDATED BALANCE SHEETS
 (Unaudited)
 (Dollars in thousands)
 ASSETS
 4/24/93 4/25/92
 Current assets:
 Cash and cash equivalents $17,128 $4,122
 Accounts and notes receivable, net 45,041 37,577
 Inventory at LIFO 30,559 26,870
 Prepaid expenses 1,233 1,454
 Total current assets 93,961 70,023
 Property and equipment, net 8,834 4,220
 Other 697 1,007
 Total assets $103,492 $75,250
 LIABILITIES AND STOCKHOLDERS' EQUITY
 Current liabilities:
 Accounts payable $28,159 $24,363
 Accrued expenses 9,407 7,503
 Other current liabilities 1,447 2,930
 Total current liabilities 39,013 34,796
 Long-term debt -- 17,546
 Deferred credits 11,337 12,222
 Stockholders' equity 53,142 10,686
 Total liabilities and
 stockholders' equity $103,492 $75,250
 PATTERSON DENTAL COMPANY
 CONDENSED CONSOLIDATED STATEMENTS OF INCOME
 (Unaudited)
 (In thousands, except per share amounts)
 Fourth Quarter Ended Year Ended
 4/24/93 4/25/92 4/24/93 4/25/92
 Net sales $89,246 $74,966 $342,826 $277,057
 Cost of sales 57,456 49,324 223,501 180,226
 Gross profit 31,790 25,642 119,325 96,831
 Operating expenses 26,417 22,075 99,032 83,319
 Operating income 5,373 3,567 20,293 13,512
 Other income and expense:
 Amortization of deferred credits 222 222 885 885
 Finance income, net 94 280 308 537
 Interest expense (37) (525) (1,059) (2,367)
 Income before income taxes and
 extraordinary item 5,652 3,544 20,427 12,567
 Income taxes 2,019 1,213 7,219 4,041
 Income before extraordinary item 3,633 2,331 13,208 8,526
 Extraordinary item (less
 income tax benefit of $281) -- -- (453) --
 Net income $3,633 $2,331 $12,755 $8,526
 Net income available
 for common shareholders $3,409 $1,959 $11,862 $7,038
 Earnings (loss) per common
 and common equivalent share:
 Earnings before
 extraordinary item $0.24 $0.16 $0.93 $0.57
 Loss - extraordinary item -- -- (0.03) --
 Net earnings $0.24 $0.16 $0.90 $0.57
 Weighted average common and
 common equivalent shares
 outstanding 14,315 12,332 13,228 12,332
 -0- 5/26/93
 /CONTACT: Ronald Ezerski, vice president and CFO of Patterson Dental, 612-854-2881; or Fred Nachman of Financial Relations Board, 312-266-7800, for Patterson Dental/
 (PDCO)


CO: Patterson Dental Company ST: Minnesota IN: MTC SU: ERN

DB -- MN007 -- 2589 05/26/93 16:15 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:May 26, 1993
Words:1155
Previous Article:VICEROY RECORDS EARNINGS OF $0.30 PER SHARE DURING FIRST YEAR OF PRODUCTION
Next Article:UNITED WISCONSIN SERVICES, INC. DECLARES QUARTERLY DIVIDEND
Topics:


Related Articles
PATTERSON DENTAL COMPANY REPORTS EARNINGS FOR THIRD QUARTER AND NINE MONTHS ENDED JAN. 23, 1993
PATTERSON DENTAL COMPANY REPORTS FIRST QUARTER EARNINGS ROSE 43 PERCENT
PATTERSON DENTAL COMPANY REPORTS RECORD SECOND QUARTER RESULTS; EARNINGS INCREASED 73 PERCENT; NET SALES ROSE 32 PERCENT
PATTERSON DENTAL REPORTS RECORD THIRD QUARTER RESULTS; EARNINGS INCREASED 46 PERCENT; NET SALES ROSE 47 PERCENT
PATTERSON DENTAL REPORTS RECORD FISCAL 1995 NET INCOME AND SALES
PATTERSON DENTAL REPORTS SECOND QUARTER FISCAL 1996 EARNINGS PER SHARE INCREASED 18.5 PERCENT
PATTERSON DENTAL REPORTS THIRD QUARTER FISCAL 1996 EARNINGS PER SHARE INCREASED 19 PERCENT ON 9 PERCENT SALES GAIN
PATTERSON DENTAL REPORTS RECORD FISCAL 1996 SALES AND EARNINGS
PATTERSON DENTAL SEES 1Q97 REVENUE, EARNINGS FALL SHORT OF ANALYST EXPECTATIONS; EQUIPMENT SALES FLAT, DISPOSABLES/SUPPLIES REMAIN STRONG
Patterson Sales Rise 14%, EPS Up 15% in Fiscal 1997; Acquisitions and Internal Growth Credited for Gains

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters