Patterson Companies, Inc. (Nasdaq: PDCO) today reported consolidated sales of $743,859,000 for the first quarter of fiscal 2009 ended July 26, an increase of 6% from $701,403,000 in the year-earlier quarter. Earnings per diluted share of $0.39 were up 11% from $0.35 in the year-earlier quarter.

Sales of Patterson Dental, Patterson’s largest business, increased 4% to $519,885,000 in the first quarter.

• Sales of consumable dental supplies and printed office products rose 6% during this period.
• Sales of dental equipment and software were down 2% from the first quarter of fiscal 2008. Basic dental equipment sales, including chairs, units and lighting, increased 4% from the year-earlier level.
• Sales of other services and products, consisting primarily of technical service, parts and labor, software support services, artificial teeth, increased 10% in the first quarter.

Sales of the Webster Veterinary unit increased 12% in the first quarter of fiscal 2009 to $123,274,000. Sales of Patterson Medical, Patterson’s rehabilitation supply and equipment unit, increased 10% to $100,700,000 in comparison to the year-earlier level. Excluding the impact of acquisitions during the past year related to this unit’s branch office strategy and foreign currency translations, first quarter sales of Patterson Medical rose over 6%.

Net income of $45,964,000 in this year’s first quarter was reduced by an additional $6.7 million ($4.2 million net of tax) of interest expense associated with the $525 million of new long-term debt financing that was completed in last year’s fourth quarter. Patterson used the proceeds of the debt issuance and cash to repurchase 19 million shares of its common stock during the second half of fiscal 2008. Net income was $47,544,000 in the year-earlier quarter.

James W. Wiltz, president and chief executive officer, commented: “First quarter sales of our Patterson Dental unit were largely consistent with our internal forecasts for this period. Sales of consumable supplies and basic dental equipment posted solid sales growth. As anticipated, sales of software and digital x-ray systems were adversely affected by the roll-out of our previously announced sales and marketing initiatives that are changing many of the ways we do business. The commission structure of Patterson Dental’s sales force was revamped to better align compensation with the growth objectives and strategies of the organization. In addition, we started offering our EagleSoft® practice management software free of charge to any dentist with the goal of winning new customers for our digital x-ray solution, as well as growing revenues from our software support and e-business services and increasing sales of other equipment and consumable supplies. The responsibility for selling our digital solutions was refocused on our territory representatives and equipment specialists. Our customer loyalty program, now called Patterson Advantage, has been redesigned to give customers a strong incentive to partner with us for meeting all of their dental office needs. Finally, the selection and training of field sales representatives has been strengthened. By further strengthening Patterson Dental’s position as the leader and innovator in the North American dental market, these initiatives are expected to generate improving operating results in the future.”

He continued: “Patterson’s veterinary business benefited from the robust growth of its consumables business in the first quarter. We also are encouraged by Patterson Medical’s solid first quarter sales growth, reflecting the unit’s continued progress at further strengthening its value-added business platform. Sales of rehabilitation equipment were particularly strong in the first quarter, due partly to the addition of the industry-leading equipment lines manufactured by Chattanooga Medical Supply, Inc. Patterson Medical’s performance also benefited from strong sales posted by its sports medicine business.”

Patterson is forecasting earnings of $0.45 to $0.47 per diluted share for the second quarter of fiscal 2009 ending October 25, 2008. The company also reiterated its previously-issued guidance of $1.94 to $1.98 per diluted share for the full fiscal year.

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.

Note: Certain amounts previously reported have been reclassified to conform with the current presentation.

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