Patterson Companies, Inc. (NASDAQ:PDCO) Q2 2019 Earnings Conference Call Transcript

Nov 29, 2018 • 10:00 am ET


Patterson Companies, Inc. (NASDAQ:PDCO) Q2 2019 Earnings Conference Call Transcript


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Good morning. My name is Denise, and I'll be your conference operator today. At this time, I'd like to welcome everyone to the Patterson Companies Second Quarter Fiscal 2019 Conference Call. (Operator Instructions) Thank you. Mr. John Wright, VP of IR, you may begin your conference.

John Wright

Thank you operator. Good morning, everyone, and thank you for participating in Patterson Companies Fiscal 2019 second quarter earnings conference call. Joining me today are Patterson President and CEO, Mark Walchirk; and CFO, Don Zurbay. After a review of the fiscal 2019 second quarter by management we will open up the call to your questions.

(Forward-Looking Cautionary Statements)

Also, a financial slide presentation can be found in the IR section of our website at

Please note that in this morning's conference call we will reference our adjusted results for the second quarter and first six months of both fiscal 2018 and fiscal 2019. The reconciliation table in our press release is provided to adjust reported GAAP measures, namely, operating income, income before taxes, income tax expense, net income, net income attributable to Patterson Companies, Inc. and diluted earnings per share attributed to Patterson Companies, Inc. before the impact of deal amortization, integration and business restructuring expenses and legal reserve costs, along with the related tax effects of these items.

We will also discuss free cash flow, which is a non GAAP measure, and the impact of foreign currency. In particular, we use the term internal sales to represent net sales adjusted to exclude foreign currency impact and changes in product selling relationships. The reconciliation of our reported and adjusted results can be found in this morning's press release.

This call is being recorded and will be available for replay starting today at noon Central Time for a period of one week.

Now I'd like to turn the call over to Mark Walchirk.

Mark Walchirk

Thank you, John.

And first, let me start by thanking all of you for your patience and flexibility in joining us for our second quarter call a week after we originally anticipated. As we announced last week, we needed more time to work through a technical accounting treatment update related to the appreciation of shares associated with joint venture investments. And with that work now complete and our full second quarter results now reported, I want to provide you with a summary of our second quarter results and an update on the progress against our key initiatives.

But before we turn to the quarter I'd like to take a brief look back at our progress over the past year. It has been just over one year since I officially joined Patterson as CEO. It has certainly been a dynamic year, and I can tell you I am more energized and committed than ever to helping lead our Company into the future. While we certainly have much work ahead to deliver more consistent performance, I'm pleased with what our team has been able to accomplish in a short period of time.

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