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 8, 2019
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 37th Annual J.P. Morgan Healthcare Conference in San Francisco, California, on Tuesday, January 8, 2019, at 8:00 a.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, 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 8, 2019. |
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 8, 2019 | By: | /s/ Les B. Korsh | ||||
Les B. Korsh | ||||||
Vice President, General Counsel and Secretary |
MARK WALCHIRK PRESIDENT AND CEO JP Morgan Healthcare Conference - January 8, 2019 DRIVING IMPROVED PERFORMANCE 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.
PATTERSON INVESTMENT THESIS We compete in healthy, growing markets with strong fundamentals We offer a compelling value proposition to customers and are adapting to their changing needs We are making progress with our focus on improvement initiatives to stabilize the business We are driving improved cash flow and reducing working capital We view our dividend as a key method of returning cash to shareholders
SERVING HEALTHY, GROWING MARKETS PATTERSON DENTAL Industry economics compelling Stable market less impacted by reimbursements Digital innovation accelerating demand PATTERSON ANIMAL HEALTH Humanization of pets driving increased spending Strong global demand for protein Pipeline of new products
MODERNIZING AND EXPANDING Investing in high tech equipment and services Growing use of data and analytics Expanding their footprints DIGITALLY DRIVEN Leading software solutions .com and mobile solutions VALUE EXPERTISE AND SERVICE Same day technical service After sales training and support Professional services EVOLVING CUSTOMER NEEDS
TRUSTED EXPERTISE. UNRIVALED SUPPORT. Local branches Same day technical service Patterson Technology Center SERVICE EXCELLENCE One-call resolution by trained experts Staff training specialists Experienced equipment service teams Personalized expert advice Build connections to peer network Local events and training DEDICATED PEOPLE UNRIVALED EXPERTISE Omni-channel access Comprehensive portfolio of products Modern online platform EASY & CONVENIENT Leading software solutions After sales training and support Professional services BUSINESS SOLUTIONS
PATTERSON 3-YEAR STRATEGY FY19: STABILIZE THE CORE FY20: ACCELERATE PERFORMANCE EXPAND PRODUCTS AND SERVICES FY21:
Stabilizing SAP Improving supply chain performance Expanding sales force Launching productivity tools Executing rigorous sourcing process Instituting disciplined cost management Hiring key executive leaders Improving organizational health index Improving customer experience Enhancing sales execution Stabilizing margins Driving improved cash flow Developing Patterson team FY19: STABILIZE THE CORE Adjusted free cash flow up $260M YTD vs. PY Improving working capital efficiency
FY19 BUSINESS UNIT HIGHLIGHTS DENTAL Grew and stabilized sales teams Strong demand for expanded equipment portfolio Accelerating private label sales Improved consumables business trend ANIMAL HEALTH Growing faster than overall market Strong performance across channels and geographies Share gains in key species Rapidly growing private label brands
Continued focus on execution, working capital and margin improvement Return to market growth in Dental and continue market share gains in Animal Health Modernize .com and digital platforms Complimentary M&A FY20: ACCELERATE FY21: EXPAND Accelerate growth in software and technical service
PATTERSON 3-YEAR STRATEGY FY19: STABILIZE THE CORE EXPAND PRODUCTS AND SERVICES FY21: FY20: ACCELERATE PERFORMANCE
YTD FINANCIAL PERFORMANCE 1) Adjusted Free Cash Flow is defined as Operating Cash Flow less Cap Ex plus Collection of Deferred Purchase Price Receivables YTD Six Months Ended 10/28/2018 vs. Prior Year Consolidated Net Sales Growth 2% Adjusted Free Cash Flow Improvement $258M Net Debt Reduction $196M Additional Cash on Balance Sheet $103M Dividends Paid to Shareholders $50M (Current dividend yield of 5%)
PATTERSON INVESTMENT THESIS We compete in healthy, growing markets with strong fundamentals We offer a compelling value proposition to customers and are adapting to their changing needs We are making progress with our focus on improvement initiatives to stabilize the business We are driving improved cash flow and reducing working capital We view our dividend as a key method of returning cash to shareholders
THANK YOU
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