Patterson Companies, Inc. (PDCO) has reported a 56.52 percent plunge in profit for the quarter ended Jan. 28, 2017. The company has earned $24.54 million, or $0.26 a share in the quarter, compared with $56.44 million, or $0.59 a share for the same period last year. On the other hand, adjusted net income from continuing operations for the quarter stood at $55.42 million, or $0.58 a share compared with $65.14 million or $0.68 a share, a year ago.

Revenue during the quarter went down marginally by 0.25 percent to $1,397.42 million from $1,400.85 million in the previous year period. Gross margin for the quarter contracted 66 basis points over the previous year period to 23.60 percent. Total expenses were 96.67 percent of quarterly revenues, up from 93.17 percent for the same period last year. That has resulted in a contraction of 350 basis points in operating margin to 3.33 percent.

Operating income from continuing operations for the quarter was $46.55 million, compared with $95.73 million in the previous year period.

However, the adjusted operating income from continuing operations for the quarter stood at $93.68 million compared to $108.18 million in the prior year period. At the same time, adjusted operating margin contracted 102 basis points in the quarter to 6.70 percent from 7.72 percent in the last year period.

"Our performance in the fiscal 2017 third quarter reflects our ongoing efforts to adapt and capitalize in end markets that continue to present both challenges and opportunities," said Scott Anderson, chairman, president and chief executive officer. "Market conditions in our respective business segments were similar to the first half of our fiscal year. Our Dental strategy to better serve the full range of customers with a wider core equipment product portfolio, delivered and supported at a higher level of value, yielded positive results. The long-term trends in our end markets remain promising, and we are confident that our present efforts will help us leverage the growth opportunities ahead."

For fiscal year 2017, Patterson Companies, Inc. expects diluted earnings per share to be in the range of $1.71 to $1.77. The company expects diluted earnings per share to be in the range of $2.27 to $2.33 on adjusted basis.

The company has spent $1.59 million cash to meet investing activities during the nine month period as against cash outgo of $399.44 million in the last year period.

Cash flow from financing activities was $4.08 million for the nine month period, down 98.35 percent or $242.58 million, when compared with the last year period.

Working capital increases

Patterson Companies, Inc. has recorded an increase in the working capital over the last year. It stood at $882.76 million as at Jan. 28, 2017, up 11 percent or $87.50 million from $795.26 million on Jan. 30, 2016. Current ratio was at 1.89 as on Jan. 28, 2017, up from 1.87 on Jan. 30, 2016.

Days sales outstanding went up to 50 days for the quarter compared with 47 days for the same period last year.