The company indicated that it achieved consolidated net sales of $1.55 billion in the quarter, which represents an increase of 9.5% over the $1.42 billion it recorded in the prior year's corresponding quarter. Patterson Companies noted that internal sales, which are adjusted for currency exchange rates, increased 9.0% over the same period.
The company reported GAAP net income in Q2/21 of $54.1 million, or $0.56 per diluted share, compared to a net loss of $33.1 million, or $0.35 per diluted share, in Q2/20.
The firm added that non GAAP adjusted net income in Q2/21 was $61.1 million, or $0.63 per diluted share, compared to $36.6 million, or $0.39 per diluted share, in Q2/20. Patterson stated that this 62% year-over-year increase is due mostly to strong sales execution, improved product mix and expense control.
The company's President and CEO Mark Walchirk commented, "Patterson's strong revenue growth and adjusted earnings in the second quarter reflect the resilience of our customers and the focus and dedication of our team as we continue to successfully execute our strategy...Despite the disruption of the COVID-19 pandemic, focused investments in our people, technology and services have enabled us to deepen our partnerships with our customers and continue the sales momentum we are building across our Dental and Animal Health businesses."
Patterson reported that dental segment net sales, which account for about 41% of total sales, were $631.7 million in Q2/21 compared to $564.6 million in Q2/20. The firm stated that internal dental sales increased 12.1% in Q2/21 versus Q2/20.
The company advised that animal health segment net sales, which represent around 59% of total sales, were $914.2 million in Q2/21 compared to $848.2 million in Q2/20. Patterson added that internal animal health sales increased 6.9% in Q2/21 versus Q2/20. The company stated that the growth in this segment was primarily driven by strong companion animal performance and growth in the production animal business.
The company pointed out that during Q2/21, it declared a quarterly cash dividend of $0.26 per share and has returned $25.0 million to shareholders in cash dividends year-to-date.
Patterson advised that due to the ongoing uncertain environment surrounding the coronavirus situation and the corresponding impact on business operations it is not providing FY/21 financial guidance at the present time.
Patterson Companies is headquartered in St. Paul,, Minn., and operates through two main business units. The firm noted that "it connects dental and animal health customers in North America and the U.K. to the latest products, technologies, services and innovative business solutions that enable operational and professional success." The company distributes more than 130,000 different products and equipment in it dental business line and over 144,000 different products and equipment in its veterinary and animal health business segment.
Though not a household name, Patterson has a market capitalization of around $2.7 billion with approximately 96.28 million shares outstanding and a short interest of about 11.0%. PDCO shares opened around 6% higher today at $29.3495 (+$1.6495, +5.95%) over yesterday's $27.70 closing price and reached a new 52-week high price this morning of $32.00. The stock has traded today between $29.25 and $32.00 per share and is currently trading at $31.34 (+$3.64, +13.14%).[NLINSERT]
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