Patterson Companies, Inc. (NASDAQ:PDCO) Q3 2015 Earnings Conference Call - Final Transcript

Feb 19, 2015 • 10:00 am ET

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Patterson Companies, Inc. (NASDAQ:PDCO) Q3 2015 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day and welcome to the Patterson Companies Third Quarter Fiscal 2015 Earnings Announcement Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Leslie Nagel. Please go ahead.

Executive
Leslie Nagel

Thank you, Doug. Good morning, everyone and thank you for participating in Patterson Companies fiscal 2015 Third Quarter Earnings Conference Call. With me today are Scott Anderson, our Chairman and Chief Executive Officer and Ann Gugino, our Chief Financial Officer. After a brief review of the quarter by management, we will open up your call up -- to your questions. Before we begin, let me remind you that certain comments made during the course of this conference call are forward-looking in nature and subject to certain risks and uncertainties. These factors are discussed in detail in our Form 10-K and our other filings with the Securities and Exchange Commission.

We encourage you to review this material. Also, a financial slide presentation can be found in the Investor Relations section of our website at pattersoncompanies.com. Please note that in this morning's conference call, we will reference our adjusted results for fiscal 2014, which excludes the impact of the restructuring charge for the medical divestiture, as well as constant currency results for fiscal 2015. A reconciliation of our reported and adjusted results and foreign currency impact can be found in this morning's press release. Be advised that this call is being recorded and will be available for replay starting today at noon, Central Time for a period of one week. With that, I'd like to hand the call over to Scott Anderson. Scott?

Executive
Scott Anderson

Thank you, Leslie. Welcome, everyone, to this morning's conference call. During the third quarter, we continue to execute on our strategic growth plan by enriching product and service offerings, pursuing efficiencies, investing in our people and systems and making the most of our expanded geographic reach. I am pleased to say that we made significant progress on all of these fronts. The first-half of fiscal 2015 was strong for Patterson, and despite flat revenues in the third quarter on a constant currency basis we are on track to meet our financial objectives as we move towards the end of our fiscal year. Most importantly, we are confident in the strength of our business and encouraged by the stable to strengthening market conditions we are witnessing. As detailed in today's earning release, Patterson Companies consolidated revenues totalled $1.1 billion, which is roughly flat, compared to the same period last year.

Of the year-to-date basis, our consolidated sales are 8.9% to $3.2 billion. Earnings per diluted share were $0.55 during the quarter compared to $0.57 in the prior year period excluding medical unit restructuring cost. These three quarters earnings per diluted share have risen to a $1.59 from a $1.50 a year ago. As Ann will note later in the call, EPS in last year's third quarter benefitted from a one-time non-cash stock compensation adjustment. During the quarter, we saw several positive macro trends