PATTERSON COMPANIES, INC. SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 TheU.S. Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements to encourage companies to provide prospective information, so long as those statements are identified as forward-looking and are accompanied by meaningful cautionary statements identifying important factors that could cause actual results to differ materially from those disclosed in the statement. This Form 10-Q contains certain "forward-looking statements" within the meaning of the safe harbor provisions of theU.S. Private Securities Litigation Reform Act of 1995, including statements regarding future financial performance, and the objectives and expectations of management. Forward-looking statements often include words such as "believes," "expects," "anticipates," "estimates," "intends," "plans," "seeks" or words of similar meaning, or future or conditional verbs, such as "will," "should," "could" or "may." Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. 20 -------------------------------------------------------------------------------- Table of Contents Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not place undue reliance on any of these forward-looking statements. Any number of factors could affect our actual results and cause such results to differ materially from those contemplated by any forward-looking statements, including, but not limited to, the following: the COVID-19 pandemic and measures taken in response thereto; our dependence on relationships with sales representatives and service technicians to retain customers and develop business; potential disruption of distribution capabilities, including service issues with third-party shippers; our dependence on suppliers to manufacture and supply substantially all of the products we sell; the risk of the products we sell becoming obsolete or containing undetected errors; adverse changes in supplier rebates; the risk that private label sales could adversely affect our relationships with suppliers; our dependence on positive perceptions of Patterson's reputation; risks inherent in acquiring and disposing of assets or other businesses and the risks inherent in integrating acquired businesses; our ability to comply with restrictive covenants in our credit agreement; our dependence on leadership development and succession planning; the risk that our governing documents andMinnesota law may discourage takeovers and business combinations; the effects of the highly competitive and consolidating dental and animal health supply markets in which we compete; exposure to the risks of the animal production business, including changing consumer demand, the cyclical livestock market, and other factors outside our control; risks from the formation of GPOs, provider networks and buying groups that may shift purchasing decisions and place us at a competitive disadvantage; increases in over-the-counter sales and e-commerce options for companion animal products or sales of companion animal products from non-veterinarian sources; change and uncertainty in the health care industry, including the effects of health care reform; failure to comply with existing or futureU.S. or foreign laws and regulations including those governing the distribution of pharmaceuticals and controlled substances; public concern over the abuse of opioid medication in theU.S. ; failure to comply with health care fraud or other laws and regulations; litigation risks, including the diversion of management's attention, the cost of defending against such actions, the possibility of damage awards or settlements, fines or penalties, or equitable remedies (including but not limited to the revocation of or non-renewal of licenses) and inherent uncertainty; failure to comply with evolving data privacy laws and regulations; tax legislation; the risks inherent in international operations, including currency fluctuations; risks associated with information systems and cyber-security attacks; disruptions from our enterprise resource planning system; and the risk of being required to record significant impairment charges if our Dental segment's goodwill or other intangible assets become impaired. The order in which these factors appear should not be construed to indicate their relative importance or priority. We caution that these factors may not be exhaustive, accordingly, any forward-looking statements contained herein should not be relied upon as a prediction of actual results. You should carefully consider these and other relevant factors, including those risk factors in Part I, Item 1A, ("Risk Factors") in our most recent Form 10-K, and information which may be contained in our other filings with theU.S. Securities and Exchange Commission , orSEC , when reviewing any forward-looking statement. Investors should understand it is impossible to predict or identify all such factors or risks. As such, you should not consider the foregoing list, or the risks identified in ourSEC filings, to be a complete discussion of all potential risks or uncertainties. Any forward-looking statement made in this Form 10-Q is based only on information currently available to us and speaks only as of the date on which it is made. We do not undertake any obligation to release publicly any revisions to any forward-looking statements whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise. OVERVIEW Our financial information for the first six months of fiscal 2022 is summarized in this Management's Discussion and Analysis and the Condensed Consolidated Financial Statements and related Notes. The following background is provided to readers to assist in the review of our financial information. We present three reportable segments: Dental,Animal Health and Corporate.Dental and Animal Health are strategic business units that offer similar products and services to different customer bases. 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 throughoutNorth America .Animal Health is a leading, full- 21 -------------------------------------------------------------------------------- Table of Contents line distributor inNorth America and theU.K. of animal health products, services and technologies to both the production-animal and companion-pet markets. Our Corporate segment is comprised of general and administrative expenses, including home office support costs in areas such as information technology, finance, legal, human resources and facilities. In addition, customer financing and other miscellaneous sales are reported within Corporate results. Operating margins of the animal health business are lower than the dental business. While operating expenses run at a lower rate in the animal health business when compared to the dental business, gross margins in the animal health business are lower due generally to the low margins experienced on the sale of pharmaceutical products. We operate with a 52-53 week accounting convention with our fiscal year ending on the last Saturday in April. The second quarter of fiscal 2022 and 2021 represents the 13 weeks endedOctober 30, 2021 and the 13 weeks endedOctober 24, 2020 , respectively. The six months endedOctober 30, 2021 andOctober 24, 2020 included 27 and 26 weeks, respectively. Fiscal 2022 will include 53 weeks and fiscal 2021 included 52 weeks. We believe there are several important aspects of our business that are useful in analyzing it, including: (1) growth in the various markets in which we operate; (2) internal growth; (3) growth through acquisition; and (4) cost controls and efficiency enhancements. Management defines internal growth as net sales adjusted to exclude the impact of foreign currency, changes in product selling relationships, contributions from recent acquisitions and differences in the number of weeks in fiscal periods. Foreign currency impact represents the difference in results that is attributable to fluctuations in currency exchange rates the company uses to convert results for all foreign entities where the functional currency is not theU.S. dollar. The company calculates the impact as the difference between the current period results translated using the current period currency exchange rates and using the comparable prior period's currency exchange rates. The company believes the disclosure of net sales changes in constant currency provides useful supplementary information to investors in light of fluctuations in currency rates. FACTORS AFFECTING OUR RESULTS COVID-19. The COVID-19 pandemic, including closures and other steps taken by governmental authorities in response to the virus, has had a significant impact on our businesses. As part of our broad-based effort to respond to the COVID-19 pandemic, we implemented cost reduction measures, including temporary salary reductions, furloughs and reduced work hours across our workforce during the period fromMay 1, 2020 throughJuly 31, 2020 . Within our Dental segment, the effect became less significant during the first quarter of fiscal 2021, as dental offices began opening for elective procedures. In addition, we recorded increased sales of infection control products starting in the first quarter of fiscal 2021 within the Dental segment. The disruptions we experienced in our production animal business as a result of the pandemic became less significant after the first quarter of fiscal 2021. Gains on Investments. During the three months endedJuly 31, 2021 , we sold a portion of our investment in Vetsource, a commercial partner and leading home delivery provider for veterinarians, with a carrying value of$25.8 million for$56.8 million . We recorded a pre-tax gain of$31.0 million in gains on investments in our condensed consolidated statements of operations and other comprehensive income as a result of this sale. The cash received of$56.8 million is reported within investing activities in our condensed consolidated statements of cash flows. During the three months endedJuly 31, 2021 , we also recorded a pre-tax non-cash gain of$31.0 million to reflect the increase in the carrying value of the remaining portion of our investment in Vetsource, which was based on the selling price of the portion of the investment we sold for$56.8 million . This gain was recorded in gains on investments in our condensed consolidated statements of operations and other comprehensive income. Concurrent with the sale completed in the first quarter of fiscal 2022, we obtained rights that will allow us, under certain circumstances, to require another shareholder of Vetsource to purchase our remaining shares. We recorded a pre-tax non-cash gain of$25.8 million in gains on investments in our condensed consolidated statements of operations and other comprehensive income as a result of this transaction. The aggregate gains on investments of$87.8 million are reported within operating activities in our condensed consolidated statements of cash flows. Concurrent with obtaining this put option, we also granted rights to the same Vetsource shareholder that would allow such shareholder, under certain circumstances, to require us to sell our remaining shares at fair value. Fiscal 2022 Legal Reserve. OnAugust 27, 2021 , we signed a memorandum of understanding to settle the federal securities class action complaint described in Note 11 to the Condensed Consolidated Financial Statements. Under the terms of the settlement, Patterson agreed to pay$63.0 million to resolve the case. Although we have agreed to settle this matter, we expressly deny the allegations of the complaint and all liability. Our insurers consented to the settlement and contributed an aggregate of$35.0 million to fund the settlement and to reimburse us for certain costs and expenses of the litigation. As a result of the foregoing, we recorded a pre-tax reserve of$63.0 million in other 22 -------------------------------------------------------------------------------- Table of Contents accrued liabilities in the condensed consolidated balance sheets in our Corporate segment during the first quarter of fiscal 2022 related to the probable settlement of this litigation (the "Fiscal 2022 Legal Reserve"). During the first quarter of fiscal 2022, we also recorded a receivable of$27.0 million in prepaid expenses and other current assets in the condensed consolidated balance sheets in our Corporate segment related to probable insurance recoveries, which amount was paid into the litigation settlement escrow as required by the memorandum of understanding. The net expense of$36.0 million was recorded in operating expenses in our condensed consolidated statements of operations and other comprehensive income. We recorded a gain of$8.0 million during the second quarter of fiscal 2022 in our Corporate segment to account for our receipt of carrier reimbursement of previously expended fees and costs. The settlement is subject to court approval of a stipulation of settlement which was filed by the parties during the second quarter of fiscal 2022. Inventory Donation Charges. During the first quarter of fiscal 2022, we committed to donate certain personal protective equipment to charitable organizations to assist with COVID-19 recovery efforts. We recorded a charge of$49.2 million within cost of sales in our condensed consolidated statements of operations and other comprehensive income as a result ("Inventory Donation Charges"). These charges were driven by our intention to not sell these products, but rather to donate them to charitable organizations. Of the$49.2 million expense recorded,$47.2 million and$2.0 million was recorded within ourDental and Animal Health segments, respectively. Receivables Securitization Program. We are a party to certain receivables purchase agreements withMUFG Bank, Ltd. ("MUFG"), under which MUFG acts as an agent to facilitate the sale of certain Patterson receivables (the "Receivables") to certain unaffiliated financial institutions (the "Purchasers"). The proceeds from the sale of these Receivables comprise a combination of cash and a deferred purchase price ("DPP") receivable. The DPP receivable is ultimately realized by Patterson following the collection of the underlying Receivables sold to the Purchasers. The collection of the DPP receivable is recognized as an increase to net cash provided by investing activities within the condensed consolidated statements of cash flows, with a corresponding reduction to net cash used in operating activities within the condensed consolidated statements of cash flows. RESULTS OF OPERATIONS QUARTER ENDEDOCTOBER 30, 2021 COMPARED TO QUARTER ENDEDOCTOBER 24, 2020 The following table summarizes our results as a percent of net sales:
Three Months Ended
October 30, 2021 October 24, 2020
Net sales 100.0 % 100.0 %
Cost of sales 80.2 79.4
Gross profit 19.8 20.6
Operating expenses 16.0 15.9
Operating income 3.8 4.7
Other income (expense) 0.1 (0.2)
Income before taxes 3.9 4.5
Income tax expense 1.0 1.0
Net income 2.9 3.5
Net loss attributable to noncontrolling interests - -
Net income attributable to Patterson Companies, Inc. 2.9 % 3.5 %
Net Sales . Consolidated net sales for the three months ended October 30, 2021
were $1,649.2 million , an increase of 6.2% from $1,553.2 million for the three
months ended October 24, 2020 . Foreign exchange rate changes had a favorable
impact of 0.9% on current quarter sales. Sales of certain products previously
recognized on a gross basis were recognized on a net basis during the three
months ended October 30, 2021 . This change in revenue recognition was driven by
changes in contractual terms with certain suppliers. The impact of this change
in revenue recognition for certain products was partially offset by the impact
of the acquisition of substantially all of the assets of Miller Vet Holdings,
LLC , a multiregional veterinary distributor ("Miller Vet"), on sales for the
three months ended October 30, 2021 , resulting in a net decrease in sales of
approximately 3.0%.
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Dental segment sales for the three months ended October 30, 2021 were $622.2
million , a decrease of 1.5% from $631.7 million for the three months ended
October 24, 2020 . Foreign exchange rate changes had a favorable impact of 0.5%
on current quarter sales. Current quarter sales of consumables decreased 0.3%,
sales of equipment and software decreased 2.4%, and sales of value-added
services and other decreased 4.7%. Consumable and equipment sales declined
primarily as a result of lower infection control product sales in the current
quarter.
Animal Health segment sales for the three months ended October 30, 2021 were
$1,027.5 million , an increase of 12.4% from $914.2 million for the three months
ended October 24, 2020 . Foreign exchange rate changes had a favorable impact of
1.3% on current quarter sales. Sales of certain products previously recognized
on a gross basis were recognized on a net basis during the three months ended
October 30, 2021 . This change in revenue recognition was driven by changes in
contractual terms with certain suppliers. The impact of this change in revenue
recognition for certain products was partially offset by the impact of the
acquisition of Miller Vet on sales for the three months ended October 30, 2021 ,
resulting in a net decrease in sales of approximately 5.1%. Sales were higher
during the three months ended October 30, 2021 , driven by increased demand
across all our animal health businesses and geographies.
Gross Profit. The consolidated gross profit margin rate for the three months
ended October 30, 2021 decreased 80 basis points to 19.8%. The decline was
primarily driven by unfavorable mix in sales among our segments due to faster
growth in our Animal Health segment, and lower net sales in our Corporate
segment due to rising interest rates on our customer financing portfolio. This
interest rate impact was offset by a gain on associated interest rate swap
agreements, which is reflected in other income, net in our condensed
consolidated statements of operations and other comprehensive income.
Operating Expenses. Consolidated operating expenses for the three months ended
October 30, 2021 were $263.6 million , a 6.9% increase from the prior year
quarter of $246.7 million . We incurred higher operating expenses during the
three months ended October 30, 2021 due to higher personnel costs and higher
travel-related expenses. These increases were partially offset by the receipt of
$8.0 million related to the Fiscal 2022 Legal Reserve. The consolidated
operating expense ratio of 16.0% increased 10 basis points from the prior year
quarter.
Operating Income. For the three months ended October 30, 2021 , operating income
was $62.9 million , or 3.8% of net sales, as compared to $73.7 million , or 4.7%
of net sales for the three months ended October 24, 2020 . The decrease in
operating income and operating income as a percent of net sales was primarily
due to higher personnel costs and higher travel-related expenses. These
increases were partially offset by the growth in sales experienced during the
three months ended October 30, 2021 , as well as the receipt of $8.0 million
related to the Fiscal 2022 Legal Reserve.
Dental segment operating income was $55.6 million for the three months ended
October 30, 2021 , compared to $73.0 million for the three months ended October
24, 2020 . The decrease in operating income was primarily due to higher personnel
costs, higher travel-related expenses and reduced sales during the three months
ended October 30, 2021 .
Animal Health segment operating income was $26.1 million for the three months
ended October 30, 2021 , compared to $17.6 million for the three months ended
October 24, 2020 . The increase was primarily driven by higher net sales during
the three months ended October 30, 2021 , partially offset by higher personnel
costs incurred during the three months ended October 30, 2021 .
Corporate segment operating loss was $18.8 million and $16.8 million for the
three months ended October 30, 2021 and October 24, 2020 , respectively. The
change was primarily driven by lower customer financing-related net sales and
higher personnel costs in the current quarter, partially offset by the receipt
of $8.0 million related to the Fiscal 2022 Legal Reserve.
Other Income (Expense). Net other income for the three months ended October 30,
2021 was $1.3 million , as compared to net other expense of $3.2 million for the
three months ended October 24, 2020 . The change was primarily driven by a larger
gain on our interest rate swap during the three months ended October 30, 2021 .
Income Tax Expense. The effective income tax rate for the three months ended
October 30, 2021 was 25.3%, compared to 23.7% for the three months ended October
24, 2020 . The increase in the rate was primarily due to a geographical shift in
earnings.
Net Income Attributable to Patterson Companies Inc. and Earnings Per Share. Net
income attributable to Patterson Companies Inc. for the three months ended
October 30, 2021 was $48.3 million , compared to $54.1 million for the three
months ended October 24, 2020 . Earnings per diluted share were $0.49 in the
current quarter
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compared to $0.56 in the prior year quarter. Weighted average diluted shares
outstanding in the current quarter were 98.4 million, compared to 96.4 million
in the prior year quarter. The current quarter and prior year quarter cash
dividend declared was $0.26 per common share.
SIX MONTHS ENDED OCTOBER 30, 2021 COMPARED TO SIX MONTHS ENDED OCTOBER 24, 2020
The following table summarizes our results as a percent of net sales:
Six Months Ended
October 30, 2021 October 24, 2020
Net sales 100.0 % 100.0 %
Cost of sales 81.5 79.5
Gross profit 18.5 20.5
Operating expenses 17.8 16.5
Operating income 0.7 4.0
Other income (expense) 2.6 (0.3)
Income before taxes 3.3 3.7
Income tax expense 0.8 0.9
Net income 2.5 2.8
Net loss attributable to noncontrolling interests - -
Net income attributable to Patterson Companies, Inc. 2.5 % 2.8 %
Net Sales . Consolidated net sales for the six months ended October 30, 2021 were
$3,264.0 million , a 16.6% increase from $2,799.0 million for the six months
ended October 24, 2020 . Sales were positively impacted by an estimated 4.1% due
to the extra week of results in the current period. Foreign exchange rate
changes had a favorable impact of 1.7% on current period sales. Sales of certain
products previously recognized on a gross basis were recognized on a net basis
during the six months ended October 30, 2021 . This change in revenue recognition
was driven by changes in contractual terms with certain suppliers. The impact of
this change in revenue recognition for certain products was partially offset by
the impact of the acquisition of substantially all of the assets of Miller Vet
on sales for the six months ended October 30, 2021 , resulting in a net decrease
in sales of approximately 3.1%.
Dental segment sales for the six months ended October 30, 2021 were $1,229.1
million , a 15.7% increase from $1,062.0 million for the six months ended October
24, 2020 . Sales were positively impacted by an estimated 3.9% due to the extra
week of results in the current period. Foreign exchange rate changes had a
favorable impact of 1.0% on current period sales. Current period sales of
consumables increased 19.3%, sales of equipment and software increased 12.6% to
$350.4 million , and sales of value-added services and other increased 6.6%.
Dental segment sales growth in the current period was driven by a recovery in
the Dental end markets, compared to sales during the six months ended October
24, 2020 , which were negatively affected by the COVID-19 pandemic when dental
offices were closed for elective procedures, particularly during the first
quarter of our fiscal 2021.
Animal Health segment sales for the six months ended October 30, 2021 were
$2,030.3 million , a 17.6% increase from $1,726.3 million for the six months
ended October 24, 2020 . Sales were positively impacted by an estimated 4.2% due
to the extra week of results in the current period. Foreign exchange rate
changes had a favorable impact of 2.1% on current period sales. Sales of certain
products previously recognized on a gross basis were recognized on a net basis
during the six months ended October 30, 2021 . This change in revenue recognition
was driven by changes in contractual terms with certain suppliers. The impact of
this change in revenue recognition for certain products was partially offset by
the impact of the acquisition of substantially all of the assets of Miller Vet
on sales for the six months ended October 30, 2021 , resulting in a net decrease
in sales of approximately 5.1%. Sales were higher during the six months ended
October 30, 2021 , driven by increased demand across all our animal health
businesses and geographies.
Gross Profit. The consolidated gross profit margin rate for the six months ended
October 30, 2021 decreased 200 basis points from the prior year period to 18.5%,
driven primarily by the impact of the $49.2 million Inventory Donation Charges.
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Operating Expenses. Consolidated operating expenses for the six months ended
October 30, 2021 were $580.9 million , a 25.6% increase from the prior year
period of $462.6 million . We incurred higher operating expenses during the six
months ended October 30, 2021 primarily due to higher personnel costs and the
impact of the Fiscal 2022 Legal Reserve. The higher personnel costs were
primarily due to the salary reductions, reduced work hours, and furloughs we
implemented as a response to the COVID-19 pandemic during the three months ended
July 25, 2020 . The consolidated operating expense ratio of 17.8% increased 130
basis points from the prior year period, which was also driven by these same
factors.
Operating Income. For the six months ended October 30, 2021 , operating income
was $23.3 million , or 0.7% of net sales, as compared to $111.6 million , or 4.0%
of net sales for the six months ended October 24, 2020 . The decrease in
operating income was primarily due to the impact of the Fiscal 2022 Legal
Reserve and the Inventory Donation Charges, as well as higher personnel costs
incurred during the six months ended October 30, 2021 . These impacts were
partially offset by the growth in sales experienced during the six months ended
October 30, 2021 .
Dental segment operating income was $54.5 million for the six months ended
October 30, 2021 , a decrease of $56.2 million from the prior year period. The
decrease was primarily driven by the expense associated with the Inventory
Donation Charges and higher personnel costs, partially offset by an increase in
net sales during the six months ended October 30, 2021 .
Animal Health segment operating income was $49.9 million for the six months
ended October 30, 2021 , an increase of $15.0 million from the prior year period.
The increase was primarily driven by higher net sales during the six months
ended October 30, 2021 , partially offset by higher personnel costs incurred
during the six months ended October 30, 2021 .
Corporate segment operating loss was $81.1 million and $34.1 million for the six
months ended October 30, 2021 and October 24, 2020 , respectively. The change was
primarily driven by the impact of the Fiscal 2022 Legal Reserve, as well as
higher personnel costs during the six months ended October 30, 2021 .
Other Income (Expense). Net other income for the six months ended October 30,
2021 was $85.3 million , compared to net other expense of $7.8 million for the
six months ended October 24, 2020 . The difference in other income (expense) was
primarily driven by the Gain on Investment recorded during the six months ended
October 30, 2021 .
Income Tax Expense. The effective income tax rate for the six months ended
October 30, 2021 was 24.8%, compared to 24.8% for the six months ended October
24, 2020 . There was an increase in the rate for the six months ended October 30,
2021 primarily due to a geographical shift in earnings, which was offset by
excess tax benefits associated with stock-based compensation awards.
Net Income Attributable to Patterson Companies Inc. and Earnings Per Share. Net
income attributable to Patterson Companies Inc. for the six months ended October
30, 2021 was $82.3 million , compared to $78.5 million for the six months ended
October 24, 2020 . Earnings per diluted share were $0.84 in the current period
compared to $0.82 in the prior year period. Weighted average diluted shares
outstanding in the current period were 98.4 million, compared to 96.1 million in
the prior year period. The current period and prior year period cash dividend
declared was $0.52 per common share.
LIQUIDITY AND CAPITAL RESOURCES
Net cash used in operating activities was $539.0 million and $423.0 million for
the six months ended October 30, 2021 and October 24, 2020 , respectively. Net
cash used in operating activities for the six months ended October 30, 2021 was
primarily due to the impact of our Receivables Securitization Program and a net
increase in inventory, inclusive of the impact of the $49.2 million Inventory
Donation Charges, partially offset by an increase in accounts payable.
Net cash provided by investing activities was $607.6 million and $394.9 million
for the six months ended October 30, 2021 and October 24, 2020 , respectively.
Collections of DPP receivables were $585.6 million and $408.9 million for the
six months ended October 30, 2021 and October 24, 2020 , respectively. During the
six months ended October 30, 2021 , we recorded cash receipts of $57.2 million
from the sale of investments and used $19.8 million to acquire Miller Vet.
Capital expenditures were $15.5 million and $14.4 million during the six months
ended October
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Table of Contents 30, 2021 andOctober 24, 2020 , respectively. We expect to use a total of approximately$50.0 million for capital expenditures in fiscal 2022. Net cash used in financing activities for the six months endedOctober 30, 2021 was$58.4 million , driven primarily by dividend payments of$50.4 million . For the six months endedOctober 24, 2020 , net cash provided by financing activities was$86.6 million , driven primarily by$111.0 million attributed to draws on our revolving line of credit. We paid dividends of$25.0 million during the six months endedOctober 24, 2020 . During the six months endedOctober 24, 2020 , we declared cash dividends totaling$0.52 per common share. In fiscal 2021, we entered into an amendment, restatement and consolidation of certain credit agreements with various lenders, includingMUFG Bank, Ltd , as administrative agent. This amended and restated credit agreement (the "Credit Agreement"), datedFebruary 16, 2021 , consists of a$700.0 million revolving credit facility and a$300.0 million term loan facility, and will mature no later thanFebruary 2024 . We used the facilities to refinance and consolidate certain credit agreements in existence prior to the Credit Agreement being executed, pay the fees and expenses incurred therewith, and finance our ongoing working capital and other general corporate purposes. As ofOctober 30, 2021 ,$300.0 million was outstanding under the Credit Agreement term loan at an interest rate of 1.34%, and$43.0 million was outstanding under the Credit Agreement revolving credit facility at an interest rate of 1.33%. As ofApril 24, 2021 ,$300.0 million was outstanding under the Credit Agreement term loan at an interest rate of 1.36%, and$53.0 million was outstanding under the Credit Agreement revolving credit facility at an interest rate of 1.34%. We expect the collection of deferred purchase price receivables, existing cash balances and credit availability under existing debt facilities, less our funds used in operations, will be sufficient to meet our working capital needs and to finance our business over the remainder of fiscal 2022. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS See Note 1 to the Condensed Consolidated Financial Statements.
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