PattersonCompanies Reports Improved First Quarter Operating Results

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ST. PAUL, Minn.--(Business Wire)--
Patterson Companies, Inc. (Nasdaq: PDCO) today reported consolidated sales of
$849,787,000 for the first quarter of fiscal 2011 ended July 31, an increase of
8% from $789,579,000 in the year-earlier quarter. Sales for the current quarter
included the impact of an extra or fourteenth week, which will make fiscal 2011
a 53-week year ending on April 30, 2011. Net income of $53,925,000 or $0.45 per
diluted share rose 20% from $45,057,000 or $0.38 per diluted share in the first
quarter of fiscal 2010.

Sales of Patterson Dental Supply, Patterson`s largest business, were
$542,678,000 in the first quarter, up 6% from $510,991,000 in the year-earlier
period.

* Sales of consumable dental supplies and printed office products rose 7% from
last year`s first quarter and were essentially unchanged from the year-earlier
period after excluding the impact of the additional week.
* Sales of dental equipment and software increased 5% from the year-earlier
level. Equipment sales, net of CEREC dental restoration systems, were up a
strong 13%. It is difficult to measure the impact of an extra week on equipment
sales due to such factors as the length of time from initial order to
installation, which can span several months between quarters.
* Sales of other services and products, consisting primarily of technical
service parts and labor, software support services and artificial teeth, rose 8%
from last year`s first quarter.

Sales of the Webster Veterinary unit increased 6% in the first quarter of fiscal
2011 to $179,635,000. Sales of Patterson Medical, the rehabilitation supply and
equipment unit, increased 17% to $127,474,000. Acquisitions contributed
approximately 10 percentage points of Patterson Medical`s first quarter sales
growth, while the additional week accounted for approximately five percentage
points.

Scott P. Anderson, president and chief executive officer, commented: "We are
generally pleased with Patterson`s first quarter results, considering the
ongoing effect of sluggish economic conditions within our served markets. Within
Patterson Dental, we were encouraged by the strong sales growth of basic dental
equipment, reflecting our ability to capture a significant share of the
equipment business that has been deferred for the past two years. We believe
this rebound in basic equipment sales is an indication that the dental market is
starting to gradually strengthen. Sales of cone beam and panoramic imaging
systems were robust. The sales performance of our CEREC line reflected the
strong comparable level in last year`s first quarter, due to the high level of
interest in our initial trade-up program following the introduction of the CEREC
AC early in calendar 2009. A similar CEREC trade-up program has been running
during this year`s first quarter and will end later this month. For the full
year, we continue to believe that CEREC sales should increase by at least 10%,
and we are committing substantial marketing resources to accomplish this goal."

He continued: "Patterson Medical posted solid first quarter operating results.
The June acquisition of the rehabilitation businesses of DCC Healthcare has
significantly strengthened and expanded Patterson Medical`s international
footprint. The integration of this acquisition is proceeding on schedule. We
believe Patterson Medical is well-positioned as a strong growth driver, and we
are continuing to evaluate strategic acquisition opportunities for this
business. We were generally pleased with Webster`s first quarter performance.
The impact of the additional week was offset by several factors that affected
the comparability of Webster`s sales. These include changes in the distribution
arrangements for certain pharmaceuticals and the exit from the production animal
business that was part of Columbus Serum. We also were pleased with Webster`s
equipment sales, which were solidly higher in the quarter."

Anderson added: "Our expectations for fiscal 2011 have not changed from our
previous guidance, and we are maintaining our earnings forecast of $1.89 to
$1.99 per diluted share."

About Patterson Companies, Inc.
Patterson Companies, Inc. is a value-added distributor serving the dental,
companion-pet veterinarian and rehabilitation supply markets.
Dental Market
As Patterson`s largest business, Patterson Dental provides a virtually complete
range of consumable dental products, equipment and software, turnkey digital
solutions and value-added services to dentists and dental laboratories
throughout North America.
Veterinary Market
Webster Veterinary is the nation`s second largest distributor of consumable
veterinary supplies, equipment and software, diagnostic products, vaccines and
pharmaceuticals to companion-pet veterinary clinics.
Rehabilitation Market
Patterson Medical is the world`s leading distributor of rehabilitation supplies
and non-wheelchair assistive patient products to the physical and occupational
therapy markets. The unit`s global customer base includes hospitals, long-term
care facilities, clinics and dealers.

This release contains 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 the Company`s ability to control. The Company
cautions shareholders and prospective investors that the following factors,
among others, may cause actual results to differ materially from those indicated
by the forward-looking statements: competition within the dental, veterinary,
and rehabilitative and assistive living supply industries; changes in the
economics of dentistry, including reduced growth in expenditures by private
dental insurance plans, the effects of economic conditions and the effects of
healthcare reform, which may affect future per capita expenditures for dental
services and the ability and willingness of dentists to invest in
high-technology products; the effects of healthcare related legislation and
regulation which may affect expenditures or reimbursements for rehabilitative
and assistive products; changes in the economics of the veterinary supply
market, including reduced growth in per capita expenditures for veterinary
services and reduced growth in the number of households owning pets; the ability
of the Company to maintain satisfactory relationships with its sales force;
unexpected loss of key senior management personnel; unforeseen operating risks;
risks associated with the dependence on manufacturers of the Company`s products;
and the ability of the Company to successfully integrate the recent acquisitions
into its existing business. Forward-looking statements are qualified in their
entirety by the cautionary language set forth in the Company's filings with the
Securities and Exchange Commission.

First Quarter Conference Call and Replay
Patterson`s first quarter earnings conference call will start at 10:00 a.m. Eastern today. Investors can listen to a live webcast of the conference call at www.pattersoncompanies.com. Listeners should go to this website at least 15 minutes prior to the call to download and install any necessary audio software. The conference call will be archived on Patterson`s web site. A replay of the first quarter conference call can be heard for one week by dialing 1-303-590-3030 and providing the conference ID:
4325698.

PATTERSON COMPANIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except for earnings per share)
(Unaudited)

Three Months Ended

July 31, July 25,
2010 2009

Net sales $ 849,787 $ 789,579

Gross profit 280,200 258,684

Operating expenses 191,176 181,894

Operating income 89,024 76,790

Other expense, net (3,257 ) (4,358 )

Income before taxes 85,767 72,432

Income taxes 31,842 27,375

Net income $ 53,925 $ 45,057

Earnings per share:
Basic $ 0.45 $ 0.38
Diluted $ 0.45 $ 0.38

Shares:
Basic 119,022 118,119
Diluted 119,784 118,643

Dividends declared per common share $ 0.10 $ -

Gross margin 33.0 % 32.8 %

Operating expenses as a % of net sales 22.5 % 23.0 %

Operating income as a % of net sales 10.5 % 9.7 %

Effective tax rate 37.1 % 37.8 %

PATTERSON COMPANIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)

July 31, April 24,
2010 2010
(Unaudited)
ASSETS
Current assets:
Cash and short-term investments $ 298,427 $ 340,591
Receivables, net 454,941 452,746
Inventory 336,382 288,725
Prepaid expenses and other current assets 44,700 51,696
Total current assets 1,134,450 1,133,758

Property and equipment, net 178,721 169,598
Goodwill and other intangible assets 1,024,753 1,005,677
Investments and other 110,028 113,936

Total Assets $ 2,447,952 $ 2,422,969

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 180,472 $ 193,626
Other accrued liabilities 148,838 154,725
Current maturities of long-term debt - -
Total current liabilities 329,310 348,351

Long-term debt 525,000 525,000
Other non-current liabilities 107,761 108,107
Total liabilities 962,071 981,458

Stockholders' equity 1,485,881 1,441,511

Total Liabilities and Stockholders' Equity $ 2,447,952 $ 2,422,969

PATTERSON COMPANIES, INC.
SUPPLEMENTARY FINANCIAL DATA
(Dollars in thousands)
(Unaudited)

Three Months Ended
July 31, July 25,
2010 2009

Consolidated Net Sales
Consumable and printed products $ 586,603 $ 546,740
Equipment and software 192,221 177,654
Other 70,963 65,185
Total $ 849,787 $ 789,579

Dental Supply
Consumable and printed products $ 325,992 $ 305,568
Equipment and software 154,571 147,687
Other 62,115 57,736
Total $ 542,678 $ 510,991

Rehabilitation Supply
Consumable and printed products $ 90,925 $ 80,348
Equipment and software 30,376 23,440
Other 6,173 5,619
Total $ 127,474 $ 109,407

Veterinary Supply
Consumable and printed products $ 169,686 $ 160,824
Equipment and software 7,274 6,527
Other 2,675 1,830
Total $ 179,635 $ 169,181

Other (Expense) Income, net
Interest income $ 2,643 $ 2,460
Interest expense (6,890 ) (6,619 )
Other 990 (199 )
$ (3,257 ) $ (4,358 )

PATTERSON COMPANIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
(Unaudited)

Three Months Ended
July 31, July 25,
2010 2009

Operating activities:
Net income $ 53,925 $ 45,057
Depreciation & amortization 9,523 8,857
Share-based compensation 2,669 2,230
Change in assets and liabilities, net of acquired (43,359 ) (9,308 )
Net cash provided by operating activities 22,758 46,836

Investing activities:
Additions to property and equipment, net of disposals (9,130 ) (8,008 )
Acquisitions and equity investments (46,682 ) (28,113 )
Net cash used in investing activities (55,812 ) (36,121 )

Financing activities:
Cash dividends paid (11,916 ) -
Other financing activities 7,988 (4,775 )
Net cash used in financing activities (3,928 ) (4,775 )

Effect of exchange rate changes on cash (5,182 ) 11,372

Net (decrease) increase in cash and cash equivalents $ (42,164 ) $ 17,312

Patterson Companies, Inc.
R. Stephen Armstrong, 651-686-1600
Executive Vice President & CFO
or
Equity Market Partners
Richard G. Cinquina, 904-415-1415

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