UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported)
January 9, 2018
PATTERSON COMPANIES, INC.
(Exact Name of Registrant as Specified in Its Charter)
Minnesota | 0-20572 | 41-0886515 | ||
(State or Other Jurisdiction of Incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
1031 Mendota Heights Road
St. Paul, Minnesota 55120
(Address of Principal Executive Offices, including Zip Code)
(651) 686-1600
(Registrants Telephone Number, including Area Code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 7.01 | Regulation FD Disclosure. |
Patterson Companies, Inc. (the Company) will present at the 36th Annual J.P. Morgan Healthcare Conference in San Francisco, California, on Tuesday, January 9, 2018, at 3:30 p.m. Pacific Time. A live webcast of the presentation, which will contain financial and other information regarding the Company, will be available at www.pattersoncompanies.com in the investors relations section. A replay will be available on the Companys website following the presentation. The Companys written presentation materials have been posted to the Companys website and are furnished as Exhibit 99 to this Current Report on Form 8-K. The information set forth therein is incorporated herein by reference and constitutes a part of this report.
This information is furnished pursuant to Item 7.01 of Form 8-K promulgated by the Securities and Exchange Commission (the SEC) and shall not be deemed to be filed with the SEC for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the Exchange Act), or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended (the Securities Act), or the Exchange Act, except as expressly set forth by specific reference in such filing. By filing this Current Report on Form 8-K and furnishing this information, the Company makes no admission as to the materiality of any information contained in this report.
Please refer to page 2 of the presentation attached hereto as Exhibit 99 for a discussion of certain forward-looking statements included therein and the risks and uncertainties related thereto.
Item 9.01 | Financial Statements and Exhibits. |
(d) Exhibits
99 | Presentation by Patterson Companies, Inc., dated January 9, 2018. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
PATTERSON COMPANIES, INC. | ||||||
Date: January 9, 2018 | By: | /s/ Les B. Korsh | ||||
Les B. Korsh | ||||||
Vice President, General Counsel and Secretary |
ENABLING CUSTOMER SUCCESS CELEBRATING 140 YEARS MARK WALCHIRK PRESIDENT AND CEO JP Morgan Healthcare Conference - January 9, 2018 Exhibit 99
Safe Harbor Statement This presentation contains certain forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are information of a non-historical nature and are subject to risks and uncertainties that are beyond Patterson's ability to control. Forward-looking statements generally can be identified by words such as "believes," "expects," "anticipates," "foresees," "forecasts," "estimates" or other words or phrases of similar import. It is uncertain whether any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do, what impact they will have on the results of operations and financial condition of Patterson or the price of Patterson stock. These forward-looking statements involve certain risks and uncertainties that could cause actual results to differ materially from those indicated in such forward-looking statements. Such risks and uncertainties include, without limitation, operations disruptions attributable to our enterprise resource planning system implementation; our ability to attract or retain qualified sales representatives and service technicians who relate directly with our customers; the reduction, modification, cancellation or delay of purchases of innovative, high-margin equipment; material changes in our purchasing relationships with suppliers; changes in general market and economics conditions; and the other risks and important factors contained and identified in Patterson's filings with the Securities and Exchange Commission, such as its Quarterly Reports on Form 10-Q and Annual Reports on Form 10-K, any of which could cause actual results to differ materially from the forward-looking statements. Any forward-looking statement in this presentation speaks only as of the date on which it is made. Except to the extent required under the federal securities laws, Patterson does not intend to update or revise the forward-looking statements.
Executive Summary We have leading positions in large, growing markets with strong demographics Our customers need a business partner to help enable their success We deliver a comprehensive offering of products, services, technology, software and after-sales support Looking forward, we are focused on improving execution, building upon our long-term strategy and driving team engagement We are committed to profitable growth, generating cash and driving shareholder value
Focus on EXECUTION We are taking a customer-first, metric-driven approach to driving operational excellence across the business Focus on STRATEGY We have initiated our strategic planning process and are taking a broad and thorough approach to defining our strategic path We are building the team and driving the culture to support our execution and key initiatives Focus on PEOPLE 90-Day Transition Plan
Why Patterson? Deep Local Relationships Extensive Product Portfolio Outstanding Technical Support Practice Management Software Comprehensive Supply Chain Enabling Customer Success Business Services
Business Segments PATTERSON DENTAL PATTERSON ANIMAL HEALTH FY17 Revenues: $2.4B Percent of Total Revenues: 43% FY17 Operating Margin: 13% FY17 Revenues: $3.2B Percent of Total Revenues: 57% FY17 Operating Margin: 4%
Patterson Dental FOCUS AREAS Favorable underlying market demographics Increasing business complexity E-commerce growth Digital work flow transforming dental practices Ongoing dental practice consolidation Investing in field sales resources Expanding technology product portfolio Technical service and support infrastructure a key differentiator Continued investment in business management software Partnering with manufacturers MARKET INSIGHTS
Patterson Animal Health FOCUS AREAS Increasing pet ownership and spending per pet Healthy, increasing protein demand and rising exports E-commerce growth Digital work flow transforming operations Ongoing customer consolidation Leverage increased scale efficiencies with customers and industry partners Partnering with manufacturers Promote technology and customized service offerings Deliver on planned synergy capture MARKET INSIGHTS
Enabling Customer Success ERP System E-commerce Platform Integrated Supply Chain and Sourcing Financial Shared Services Dedicated Local Relationship Extensive Product Offering Technical Service and Support Practice Management Software Business Support Services Patterson Technology Center DENTAL ANIMAL HEALTH
ENABLING CUSTOMER SUCCESS CELEBRATING 140 YEARS ANN GUGINO EVP AND CHIEF FINANCIAL OFFICER JP Morgan Healthcare Conference - January 9, 2018
Financial Platform Highlights Disciplined investments for growth and efficiency gains Strong, stable cash flow generating capabilities Multi-pronged capital allocation strategy Conservative, well-capitalized balance sheet Financial flexibility to unlock shareholder value
FY18 Adjusted EPS Guidance (as of 11/21/2017) Adjusted EPS of $2.00 to $2.10 per diluted share Dental business performance - Consumables softness - CAD/CAM market transition Sales execution Investing in sales resources ERP refinements to enhance customer experience 2Q Guidance Revision 2H Focus Areas
GUIDANCE ASSUMPTIONS Continuing operations as well as completed or previously announced acquisitions. Excludes new acquisitions. North America and international market conditions similar to first half of FY 2018. Excludes transaction-related costs, integration and business restructuring expenses and deal amortization or impairment and material restructurings beyond those previously disclosed. FY18 GUIDANCE AS OF 11/21/17 GAAP earnings for fiscal 2018: $1.67 to $1.77 per diluted share Non-GAAP adjusted earnings guidance excludes after-tax impact of: Deal amortization expense of approximately: $0.27 per diluted share Integration and business restructuring expenses of approximately: $0.06 per diluted share Non-GAAP adjusted earnings for fiscal 2018: $2.00 to $2.10 per diluted share FY18 GAAP to Non-GAAP Reconciliation
Financial Platform Execution Continued cost management Delivering on planned synergy capture Driving working capital improvement
Cash Returned to Shareholders ($M) $223 $182 $130 $291 Over $1B Past 5 Years $200
PDCO Summary We have leading positions in large, growing markets with strong demographics Our customers need a business partner to help enable their success We deliver a comprehensive offering of products, services, technology, software and after-sales support Looking forward, we are focused on improving execution, building upon our long-term strategy and driving team engagement We are committed to profitable growth, generating cash and driving shareholder value
THANK YOU JP Morgan Healthcare Conference - January 9, 2018