Patterson Companies, Inc. (Nasdaq: PDCO) today announced that its Board of Directors has appointed Don Zurbay, most recently Chief Financial Officer, as President and Chief Executive Officer. Mr. Zurbay succeeds Mark Walchirk who resigned following the Board’s investigation and determination that he violated company policy and demonstrated poor judgment regarding an encounter with an employee. The conduct did not relate to the company’s operations or the integrity of the company’s financial statements. Mr. Zurbay has also been elected to the Board. Kevin Barry, currently Vice President, Finance & Corporate Controller, has been appointed Interim Chief Financial Officer.
John D. Buck, Chairman of the Patterson Board, said, “Patterson is committed to cultivating a people-first culture where every employee is treated with respect and those standards apply to every member of the organization. Immediately upon becoming aware of the allegation, the independent directors conducted a comprehensive investigation with the support of independent, outside legal counsel and determined that Mark could not remain in his leadership position.
“Don has been an instrumental member of our leadership team since joining Patterson in 2018, helping to drive profitable growth in our Dental and Animal Health businesses through improved operating performance, build a high-performance culture, and generate value for our shareholders. We have the utmost confidence that Don, Kevin, and the rest of the Patterson leadership team will continue to execute our proven strategy of continuously enhancing Patterson’s value proposition while driving financial and operating performance improvement.”
“I’m honored to lead the talented and experienced Patterson team as we focus on creating value for our customers and shareholders,” said Mr. Zurbay. “I’m excited to continue to work closely with the Board and the rest of the management team in my new role to build on our strong momentum and capitalize on the many opportunities ahead.”
Fiscal Year 2023 Guidance
Patterson reaffirmed its previously provided fiscal 2023 earnings guidance, which is provided on both a GAAP and non-GAAP adjusted basis:
- GAAP earnings are expected to be in the range of $1.96 to $2.06 per diluted share.
- Non-GAAP adjusted earnings are expected to be in the range of $2.25 to $2.35 per diluted share.
- Our non-GAAP adjusted earnings guidance excludes the after-tax impact of:
- Deal amortization expenses of approximately $28.5 million ($0.29 per diluted share).
Our guidance reflects the strength of our business and competitive positioning, as well as our expectations for the North American and international end markets in which we operate, which we expect to be affected by inflationary trends, higher interest rates and a potential slow-down in the broader economy. Beyond macroeconomic and geopolitical uncertainty, our guidance further assumes that there are no material adverse developments associated with the pandemic.
