SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
The
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. 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 19
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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 nine 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-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 third quarter of fiscal 2022 and 2021 represents the 13 weeks endedJanuary 29, 2022 and the 13 weeks endedJanuary 23, 2021 , respectively. The nine months endedJanuary 29, 2022 andJanuary 23, 2021 included 40 and 39 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 20
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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 onVetsource Investment . 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. Gain onVets Plus Investment . During the three months endedJanuary 29, 2022 , we sold a portion of our investment in Vets Plus with a carrying value of$4.0 million for$17.1 million . We recorded a pre-tax gain of$13.1 million in gains on investments in our condensed consolidated statements of operations and other comprehensive income as a result of this sale in the third quarter of fiscal 2022. This$13.1 million pre-tax gain is reported within operating activities in our condensed consolidated statements of cash flows. The cash received of$17.1 million is reported within investing activities in our condensed consolidated statements of cash flows. 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 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 parties filed a stipulation of settlement during the second quarter of fiscal 2022. OnFebruary 3, 2022 , the District Court entered an order preliminarily approving the settlement and directing the claims administrator to mail a notice of settlement and claim form to all class members.The District Court is expected to hold a final settlement hearing to determine whether the settlement should be approved during the first quarter of fiscal 2023. 21
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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") in the first quarter of fiscal 2022. 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 ENDED
The following table summarizes our results as a percent of net sales:
Three Months Ended
January 29, 2022 January 23, 2021 Net sales 100.0 % 100.0 % Cost of sales 78.9 79.1 Gross profit 21.1 20.9 Operating expenses 17.3 16.9 Operating income 3.8 4.0 Other income (expense) 0.9 (0.1) Income before taxes 4.7 3.9 Income tax expense 1.2 0.8 Net income 3.5 3.1 Net loss attributable to noncontrolling interests - - Net income attributable to Patterson Companies, Inc. 3.5 % 3.1 %Net Sales . Consolidated net sales for the three months endedJanuary 29, 2022 were$1,596.6 million , an increase of 2.9% from$1,551.3 million for the three months endedJanuary 23, 2021 . Foreign exchange rate changes had a favorable impact of 0.2% on current quarter sales. Sales of certain products previously recognized on a gross basis were recognized on a net basis during the three months endedJanuary 29, 2022 . 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 ofMiller Vet Holdings, LLC , a multiregional veterinary distributor ("Miller Vet"), on sales for the three months endedJanuary 29, 2022 , resulting in a net decrease in sales of approximately 1.6%. Dental segment sales for the three months endedJanuary 29, 2022 were$650.6 million , an increase of 0.3% from$648.9 million for the three months endedJanuary 23, 2021 . Foreign exchange rate changes had a favorable impact of 0.2% on current quarter sales. Current quarter sales of consumables decreased 1.6%, sales of equipment and software increased 1.8%, and sales of value-added services and other increased 4.2%. Consumable sales declined primarily as a result of lower infection control product sales in the current quarter. The growth in equipment and software sales was due to increased sales in CAD/CAM and digital technology products, partially offset by lower sales of core equipment products due to continued supply chain challenges.Animal Health segment sales for the three months endedJanuary 29, 2022 were$944.8 million , an increase of 5.6% from$894.3 million for the three months endedJanuary 23, 2021 . Foreign exchange rate changes had a 22
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favorable impact of 0.2% on current quarter sales. Sales of certain products previously recognized on a gross basis were recognized on a net basis during the three months endedJanuary 29, 2022 . 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 endedJanuary 29, 2022 , resulting in a net decrease in sales of approximately 2.8%. Sales were higher during the three months endedJanuary 29, 2022 , driven by increased demand across all of our animal health businesses and geographies after the effect of this change in revenue recognition is taken into account. Gross Profit. The consolidated gross profit margin rate for the three months endedJanuary 29, 2022 increased 20 basis points to 21.1%. The increase was primarily driven by an increase in the gross profit margin rates in both ourDental and Animal Health segments. The gross profit margin rate was negatively impacted by 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 endedJanuary 29, 2022 were$275.8 million , a 4.9% increase from the prior year quarter of$262.9 million . We incurred higher personnel costs and higher travel-related expenses during the three months endedJanuary 29, 2022 . The consolidated operating expense ratio of 17.3% increased 40 basis points from the prior year quarter, which was also driven primarily by these same factors. Operating Income. For the three months endedJanuary 29, 2022 , operating income was$60.8 million , or 3.8% of net sales, as compared to$61.7 million , or 4.0% of net sales for the three months endedJanuary 23, 2021 . 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 endedJanuary 29, 2022 and an increase in the consolidated gross profit margin rate. Dental segment operating income was$64.1 million for the three months endedJanuary 29, 2022 , compared to$61.3 million for the three months endedJanuary 23, 2021 . The increase in operating income was primarily due to higher gross margins for the three months endedJanuary 29, 2022 .Animal Health segment operating income was$23.4 million for the three months endedJanuary 29, 2022 , compared to$20.6 million for the three months endedJanuary 23, 2021 . The increase was primarily driven by higher net sales during the three months endedJanuary 29, 2022 , partially offset by higher personnel costs incurred during the three months endedJanuary 29, 2022 . Corporate segment operating loss was$26.7 million and$20.2 million for the three months endedJanuary 29, 2022 andJanuary 23, 2021 , respectively. The change was primarily driven by lower customer financing-related net sales in the current quarter related to the effect of rising interest rates on our customer financing portfolio. Other Income (Expense). Net other income for the three months endedJanuary 29, 2022 was$14.4 million , as compared to net other expense of$1.2 million for the three months endedJanuary 23, 2021 . The change was primarily driven by the Gain onVets Plus Investment of$13.1 million , as well as a larger gain on our interest rate swap recorded during the three months endedJanuary 29, 2022 . Income Tax Expense. The effective income tax rate for the three months endedJanuary 29, 2022 was 24.8%, compared to 19.7% for the three months endedJanuary 23, 2021 . The increase in the rate was primarily due to the impact of excess tax benefit deductions and provision to return adjustments in the prior year quarter. Net Income Attributable toPatterson Companies, Inc. and Earnings Per Share. Net income attributable toPatterson Companies, Inc. for the three months endedJanuary 29, 2022 was$57.0 million , compared to$48.8 million for the three months endedJanuary 23, 2021 . Earnings per diluted share were$0.58 in the current quarter compared to$0.50 in the prior year quarter. Weighted average diluted shares outstanding in the current quarter were 98.6 million, compared to 97.0 million in the prior year quarter. The current quarter and prior year quarter cash dividend declared was$0.26 per common share.
NINE MONTHS ENDED
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The following table summarizes our results as a percent of net sales:
Nine Months Ended
January 29, 2022 January 23, 2021 Net sales 100.0 % 100.0 % Cost of sales 80.6 79.3 Gross profit 19.4 20.7 Operating expenses 17.7 16.7 Operating income 1.7 4.0 Other income (expense) 2.1 (0.2) Income before taxes 3.8 3.8 Income tax expense 1.0 0.9 Net income 2.8 2.9 Net loss attributable to noncontrolling interests - - Net income attributable to Patterson Companies, Inc. 2.8 % 2.9 %Net Sales . Consolidated net sales for the nine months endedJanuary 29, 2022 were$4,860.6 million , an 11.7% increase from$4,350.3 million for the nine months endedJanuary 23, 2021 . Sales were positively impacted by an estimated 2.6% due to the extra week of results in the current period. Foreign exchange rate changes had a favorable impact of 1.1% on current period sales. Sales of certain products previously recognized on a gross basis were recognized on a net basis during the nine months endedJanuary 29, 2022 . 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 nine months endedJanuary 29, 2022 , resulting in a net decrease in sales of approximately 2.6%. Dental segment sales for the nine months endedJanuary 29, 2022 were$1,879.7 million , a 9.9% increase from$1,711.0 million for the nine months endedJanuary 23, 2021 . Sales were positively impacted by an estimated 2.4% due to the extra week of results in the current period. Foreign exchange rate changes had a favorable impact of 0.7% on current period sales. Current period sales of consumables increased 11.9%, sales of equipment and software increased 7.9% to$591.8 million , and sales of value-added services and other increased 5.8%. Dental segment sales growth in the current period was driven by a recovery in the Dental end markets, compared to sales during the nine months endedJanuary 23, 2021 , 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 nine months endedJanuary 29, 2022 were$2,975.0 million , a 13.5% increase from$2,620.7 million for the nine months endedJanuary 23, 2021 . Sales were positively impacted by an estimated 2.8% due to the extra week of results in the current period. Foreign exchange rate changes had a favorable impact of 1.5% on current period sales. Sales of certain products previously recognized on a gross basis were recognized on a net basis during the nine months endedJanuary 29, 2022 . 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 nine months endedJanuary 29, 2022 , resulting in a net decrease in sales of approximately 4.3%. Sales were higher during the nine months endedJanuary 29, 2022 , driven by increased demand across all of our animal health businesses and geographies. Gross Profit. The consolidated gross profit margin rate for the nine months endedJanuary 29, 2022 decreased 130 basis points from the prior year period to 19.4%, driven primarily by the impact of the Inventory Donation Charges, unfavorable mix in sales among our segments due to faster growth in ourAnimal Health segment, and lower net sales in our Corporate segment due to the effect of rising interest rates on our customer financing portfolio. This interest rate impact was partially offset by a gain on associated interest rates 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 nine months endedJanuary 29, 2022 were$856.7 million , a 18.1% increase from the prior year period of$725.5 million . We incurred higher operating expenses during the nine months endedJanuary 29, 2022 primarily due to higher personnel costs and the impact of the Fiscal 2022 24
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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 endedJuly 25, 2020 . The consolidated operating expense ratio of 17.7% increased 100 basis points from the prior year period, which was also driven by these same factors. Operating Income. For the nine months endedJanuary 29, 2022 , operating income was$84.2 million , or 1.7% of net sales, as compared to$173.3 million , or 4.0% of net sales for the nine months endedJanuary 23, 2021 . The decrease in operating income was primarily due to higher personnel costs, the impact of the Fiscal 2022 Legal Reserve and the Inventory Donation Charges recorded during the nine months endedJanuary 29, 2022 . These impacts were partially offset by the growth in sales experienced during the nine months endedJanuary 29, 2022 . Dental segment operating income was$118.6 million for the nine months endedJanuary 29, 2022 , a decrease of$53.4 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 nine months endedJanuary 29, 2022 .Animal Health segment operating income was$73.4 million for the nine months endedJanuary 29, 2022 , an increase of$17.8 million from the prior year period. The increase was primarily driven by higher net sales during the nine months endedJanuary 29, 2022 , partially offset by higher personnel costs incurred during the nine months endedJanuary 29, 2022 . Corporate segment operating loss was$107.8 million and$54.4 million for the nine months endedJanuary 29, 2022 andJanuary 23, 2021 , respectively. The change was primarily driven by the impact of the Fiscal 2022 Legal Reserve, as well as higher personnel costs incurred during the nine months endedJanuary 29, 2022 and lower customer financing net sales recorded during the nine months endedJanuary 29, 2022 . Other Income (Expense). Net other income for the nine months endedJanuary 29, 2022 was$99.7 million , compared to net other expense of$9.0 million for the nine months endedJanuary 23, 2021 . The change was primarily driven by the Gains onVetsource Investment of$87.8 million , the Gain onVets Plus Investment of$13.1 million and a larger gain on our interest rate swap agreements recorded during the nine months endedJanuary 29, 2022 . Income Tax Expense. The effective income tax rate for the nine months endedJanuary 29, 2022 was 24.8%, compared to 22.9% for the nine months endedJanuary 23, 2021 . There was an increase in the rate for the nine months endedJanuary 29, 2022 primarily due to provision to return adjustments in the prior year period and a geographical shift in earnings, which was partially offset by excess tax benefits associated with stock-based compensation awards. Net Income Attributable toPatterson Companies, Inc. and Earnings Per Share. Net income attributable toPatterson Companies, Inc. for the nine months endedJanuary 29, 2022 was$139.3 million , compared to$127.2 million for the nine months endedJanuary 23, 2021 . Earnings per diluted share were$1.42 in the current period compared to$1.32 in the prior year period. Weighted average diluted shares outstanding in the current period were 98.5 million, compared to 96.4 million in the prior year period. The current period and prior year period cash dividend declared was$0.78 per common share.
LIQUIDITY AND CAPITAL RESOURCES
Net cash used in operating activities was$834.1 million and$604.9 million for the nine months endedJanuary 29, 2022 andJanuary 23, 2021 , respectively. Net cash used in operating activities for the nine months endedJanuary 29, 2022 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$946.4 million and$615.9 million for the nine months endedJanuary 29, 2022 andJanuary 23, 2021 , respectively. Collections of DPP receivables were$918.4 million and$634.5 million for the nine months endedJanuary 29, 2022 andJanuary 23, 2021 , respectively. During the nine months endedJanuary 29, 2022 , we recorded cash receipts of$74.3 million from the sale of investments and used$19.8 million to acquire Miller Vet. Capital expenditures were$26.5 million and$21.1 million during the nine months endedJanuary 29, 2022 andJanuary 23, 2021 , respectively. We expect to use a total of approximately$40.0 million for capital expenditures in fiscal 2022. 25
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Net cash used in financing activities for the nine months endedJanuary 29, 2022 was$90.5 million , driven by uses of cash of$100.8 million for the retirement of long-term debt and$75.7 million for dividend payments, partially offset by$82.0 million attributed to draws on our revolving line of credit. For the nine months endedJanuary 23, 2021 , net cash provided by financing activities was$60.1 million , driven primarily by$108.0 million attributed to draws on our revolving line of credit. We paid dividends of$50.1 million during the nine months endedJanuary 23, 2021 . During the nine months endedJanuary 23, 2021 , we declared cash dividends totaling$0.78 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 ofJanuary 29, 2022 ,$300.0 million was outstanding under the Credit Agreement term loan at an interest rate of 1.36%, and$135.0 million was outstanding under the Credit Agreement revolving credit facility at an interest rate of 1.35%. 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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