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8-K - 8-K SHELL - PSS WORLD MEDICAL INCform8k.htm
EX-99.1 - PRESS RELEASE 5/12/11 - PSS WORLD MEDICAL INCearningsrelease.htm




 
 
 
Financial Supplement
 
For the Fourth Quarter of Fiscal Year 2011 ending April 1, 2011
 
 
 
 
 

 
 

 

PSS World Medical, Inc.
As of April 1, 2011
Current Fiscal Year
(in thousands, except per share data)

 
 
Fiscal Year 2011
 
 
   Q1      Q2      Q3      Q4    
YTD
 
 
                                 
 
 
Net sales
  $ 478,856     $ 496,188     $ 510,087     $ 549,658     $ 2,034,789  
Cost of goods sold
    331,010       339,063       352,192       376,753       1,399,018  
  Gross profit
    147,846       157,125       157,895       172,905       635,771  
General & administrative expenses
    89,986       87,399       88,860       98,505       364,749  
Selling expenses
    32,610       34,298       34,330       36,229       137,466  
  Income from operations
    25,250       35,429       34,706       38,171       133,556  
Interest expense
    (4,137 )     (4,226 )     (4,243 )     (4,515 )     (17,121 )
Interest & investment income
    66       46       33       139       284  
Other income
    544       412       852       698       2,506  
Income from operations before income taxes
    21,723       31,661       31,348       34,493       119,225  
Provision for income taxes
    7,892       12,016       11,757       12,895       44,560  
Net income
    13,831       19,644       19,592       21,598       74,664  
Net income attributable to noncontrolling interest
    78       87       42       (28 )     179  
      Net income attributable to PSS World Medical, Inc.
  $ 13,753     $ 19,557     $ 19,549     $ 21,626     $ 74,485  
 
                                       
Earnings per share - Basic:
                                       
Net income attributable to PSS World Medical, Inc.
  $ 0.25     $ 0.36     $ 0.36     $ 0.40     $ 1.36  
 
                                       
Earnings per share - Diluted:
                                       
Net income attributable to PSS World Medical, Inc.
  $ 0.24     $ 0.35     $ 0.35     $ 0.38     $ 1.32  
 
                                       
WASO - Basic
    56,093       54,985       54,357       54,548       54,996  
WASO - Diluted
    57,924       55,887       55,567       56,789       56,546  
 
                                       
Net sales by segment:
                                       
Physician Business
  $ 327,403     $ 343,403     $ 357,298     $ 396,908     $ 1,425,012  
Elder Care Business
    151,202       152,173       152,263       152,111       607,750  
Corporate Shared Services
    251       612       526       639       2,028  
 
  $ 478,856     $ 496,188     $ 510,087     $ 549,658     $ 2,034,789  
 
                                       
Billing days:
    64       63       61       65       253  
 
                                       
Net sales per billing day:
                                       
Physician Business
  $ 5,116     $ 5,451     $ 5,857     $ 6,106     $ 5,632  
Elder Care Business
    2,363       2,415       2,496       2,340       2,402  
Corporate Shared Services
    4       10       9       10       8  
 
  $ 7,482     $ 7,876     $ 8,362     $ 8,456     $ 8,043  

Numbers may not foot due to rounding differences

 
 

 

PSS World Medical, Inc.
As of April 1, 2011
(in thousands, except per share data)

 
Fiscal Year 2008
 
Fiscal Year 2009
 
Fiscal Year 2010
 
 
 Q1    Q2    Q3    Q4  
Total
   Q1    Q2    Q3    Q4  
Total
   Q1    Q2    Q3    Q4  
Total
 
 
                       
 
                         
 
                         
 
 
Net sales
$ 438,910   $ 457,930   $ 465,208   $ 493,744   $ 1,855,791   $ 472,215   $ 491,603   $ 519,145   $ 469,728   $ 1,952,691   $ 493,554   $ 561,976   $ 502,764   $ 496,877   $ 2,055,171  
Cost of goods sold
  311,227     325,390     330,215     347,289     1,314,120     333,283     344,347     364,282     328,868     1,370,781     347,581     389,404     348,064     342,427     1,427,476  
  Gross profit
  127,683     132,540     134,993     146,455     541,672     138,931     147,255     154,863     140,860     581,910     145,974     172,571     154,700     154,449     627,695  
General and administrative expenses
  83,638     77,353     79,408     83,725     324,124     89,634     90,689     89,426     82,728     352,478     91,638     97,208     89,439     92,586     370,871  
Selling expenses
  29,551     30,763     31,509     33,473     125,295     31,266     32,161     33,721     31,356     128,505     32,687     36,728     33,249     33,178     135,842  
  Income from operations
  14,494     24,425     24,077     29,257     92,253     18,031     24,405     31,715     26,776     100,927     21,649     38,635     32,012     28,685     120,981  
Interest expense
  (2,764 )   (2,956 )   (3,247 )   (3,529 )   (12,495 )   (3,203 )   (5,300 )   (7,409 )   (6,247 )   (22,159 )   (4,261 )   (4,532 )   (4,214 )   (4,288 )   (17,295 )
Interest and investment income
  528     114     26     23     691     122     842     1,034     305     2,304     134     95     117     30     376  
Other income
  544     546     833     5,361     7,284     608     520     877     638     2,643     3,995     452     741     879     6,068  
Income from ops before income taxes
  12,802     22,129     21,690     31,112     87,732     15,559     20,467     26,218     21,472     83,716     21,517     34,650     28,657     25,306     110,130  
Provision for income taxes
  5,010     8,551     8,441     12,597     34,599     6,187     8,104     10,230     7,709     32,229     8,213     12,964     10,736     8,854     40,768  
Net income
  7,792     13,578     13,249     18,515     53,133     9,372     12,363     15,989     13,763     51,486     13,304     21,686     17,921     16,452     69,363  
Net income attributable to noncontrolling interest
  -     -     -     -     -     -     -     -     -     -     -     -     -     -     -  
     Net income attributable PSS World Medical, Inc.
$ 7,792   $ 13,578   $ 13,249   $ 18,515   $ 53,133   $ 9,372   $ 12,363   $ 15,989   $ 13,763   $ 51,486   $ 13,304   $ 21,686   $ 17,921   $ 16,452   $ 69,363  
 
                                                                                         
 
                                                                                         
Earnings per share - Basic:
                                                                                         
Net income attributable PSS World Medical, Inc.
$ 0.12   $ 0.21   $ 0.21   $ 0.30   $ 0.82   $ 0.15   $ 0.21   $ 0.27   $ 0.23   $ 0.86   $ 0.23   $ 0.37   $ 0.31   $ 0.29   $ 1.20  
 
                                                                                         
Earnings per share - Diluted:
                                                                                         
Net income attributable PSS World Medical, Inc.
$ 0.11   $ 0.20   $ 0.20   $ 0.29   $ 0.80   $ 0.15   $ 0.20   $ 0.27   $ 0.23   $ 0.85   $ 0.23   $ 0.37   $ 0.30   $ 0.28   $ 1.18  
 
                                                                                         
WASO - Basic
  66,793     65,806     63,999     62,213     64,703     61,003     59,941     59,481     59,307     59,937     58,380     58,566     58,522     56,627     58,029  
WASO - Diluted
  68,765     67,067     65,756     63,152     66,184     61,723     60,921     60,322     59,801     60,696     58,859     59,390     59,390     58,115     58,943  
 
                                                                                         
Net Sales by Segment:
                                                                                         
Physician Business
$ 306,245   $ 320,171   $ 326,520   $ 355,749   $ 1,308,685   $ 331,386   $ 341,761   $ 357,269   $ 326,966   $ 1,357,382   $ 342,292   $ 398,531   $ 352,961   $ 344,039   $ 1,437,823  
Elder Care Business
  132,664     137,759     138,688     137,995     547,106     140,406     149,485     161,874     142,743     594,509     150,381     162,970     149,400     152,187     614,937  
Corporate Shared Services
  -     -     -     -     -     423     356     2     19     800     882     475     403     651     2,411  
 
$ 438,910   $ 457,930   $ 465,208   $ 493,744   $ 1,855,791   $ 472,215   $ 491,603   $ 519,145   $ 469,728   $ 1,952,691   $ 493,554   $ 561,976   $ 502,764   $ 496,877   $ 2,055,171  
 
                                                                                         
Billing Days:
  64     63     62     64     253     64     63     66     60     253     64     68     61     65     258  
 
                                                                                         
Net Sales Per Billing Day:
                                                                                         
Physician Business
$ 4,785   $ 5,082   $ 5,266   $ 5,559   $ 5,173   $ 5,178   $ 5,425   $ 5,413   $ 5,449   $ 5,365   $ 5,348   $ 5,861   $ 5,786   $ 5,293   $ 5,573  
Elder Care Business
  2,073     2,187     2,237     2,156     2,162     2,194     2,373     2,453     2,379     2,350     2,350     2,397     2,449     2,341     2,383  
Corporate Shared Services
  -     -     -     -     -     7     6     -     -     3     14     7     7     10     9  
 
$ 6,858   $ 7,269   $ 7,503   $ 7,715   $ 7,335   $ 7,378   $ 7,803   $ 7,866   $ 7,829   $ 7,718   $ 7,712   $ 8,264   $ 8,242   $ 7,644   $ 7,966  

Numbers may not foot due to rounding differences

 
 

 

PSS World Medical, Inc.
As of April 1, 2011
SelectTM Net Sales
(in thousands)

 
Fiscal Year 2011
 
Fiscal Year 2010
 
Q1
 
Q2
 
Q3
 
Q4
 
YTD
 
Q1
 
Q2
 
Q3
 
Q4
 
YTD
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated Select Sales
$ 80,555
 
$ 82,152
 
$ 84,551
 
$ 86,978
 
$ 334,237
 
$ 77,842
 
$ 86,368
 
$ 78,449
 
$ 80,943
 
$ 323,602
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fiscal Year 2006
 
Fiscal Year 2007
 
Fiscal Year 2008
 
Fiscal Year 2009
 
Fiscal Year 2010
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated Select Sales
$157,296
 
$185,844
 
$234,810
 
$281,536
 
$323,602
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Numbers may not foot due to rounding differences

 
 

 

PSS World Medical, Inc.
Segment Information
As of April 1, 2011
(in thousands)

 
 
Three Months Ended
   
Twelve Months Ended
 
 
 
April 1, 2011
   
April 2, 2010
   
April 1, 2011
   
April 2, 2010
 
 
 
 
   
 
   
 
   
 
 
NET SALES:
 
 
   
 
   
 
   
 
 
Physician Business
  $ 396,908     $ 344,039     $ 1,425,012     $ 1,437,823  
Elder Care Business
    152,111       152,187       607,750       614,937  
Corporate Shared Services
    639       651       2,028       2,411  
          Total net sales
  $ 549,658     $ 496,877     $ 2,034,789     $ 2,055,171  
 
                               
BILLING DAYS:
    65       65       253       258  
 
                               
NET SALES PER BILLING DAY:
                               
Physician Business
  $ 6,106     $ 5,293     $ 5,632     $ 5,573  
Elder Care Business
    2,340       2,341       2,402       2,383  
Corporate Shared Services
    10       10       8       9  
          Total net sales per billing day
  $ 8,456     $ 7,644     $ 8,043     $ 7,966  
 
                               
INCOME FROM OPERATIONS:
                               
Physician Business
  $ 38,334     $ 30,497     $ 137,995     $ 137,261  
Elder Care Business
    10,783       9,422       37,782       38,017  
Corporate Shared Services
    (10,945 )     (11,234 )     (42,221 )     (54,297 )
          Total income from operations
  $ 38,171     $ 28,685     $ 133,556     $ 120,981  
 
                               
DEPRECIATION:
                               
Physician Business
  $ 2,695     $ 2,067     $ 9,515     $ 7,983  
Elder Care Business
    1,300       1,226       5,024       4,984  
Corporate Shared Services
    2,768       2,588       10,525       8,973  
          Total depreciation
  $ 6,763     $ 5,881     $ 25,065     $ 21,940  
 
                               
AMORTIZATION OF INTANGIBLE
                               
AND OTHER ASSETS:
                               
Physician Business
  $ 1,080     $ 581     $ 2,956     $ 2,343  
Elder Care Business
    596       743       2,757       2,432  
Corporate Shared Services
    174       120       665       346  
          Total amortization of intangible and other assets
  $ 1,850     $ 1,444     $ 6,378     $ 5,121  
 
                               
PROVISION FOR DOUBTFUL ACCOUNTS:
                               
Physician Business
  $ 138     $ (11 )   $ 1,792     $ 1,944  
Elder Care Business
    (145 )     414       (51 )     1,851  
          Total provision for doubtful accounts
  $ (7 )   $ 402     $ 1,741     $ 3,795  
 
                               
INTEREST EXPENSE:
                               
          Total interest expense
  $ 4,515     $ 4,288     $ 17,121     $ 17,295  
 
                               
INTEREST AND INVESTMENT INCOME:
                               
Elder Care Business
  $ 115     $ 3     $ 178     $ 70  
Corporate Shared Services
    24       28       106       306  
          Total interest and investment income
  $ 139     $ 30     $ 284     $ 376  
 
                               
PROVISION (BENEFIT) FOR INCOME TAXES:
                               
Physician Business
  $ 13,608     $ 11,089     $ 49,951     $ 49,982  
Elder Care Business
    3,312       2,698       11,212       11,103  
Corporate Shared Services
    (4,024 )     (4,933 )     (16,603 )     (20,317 )
          Total provision for income taxes
  $ 12,895     $ 8,854     $ 44,560     $ 40,768  

Numbers may not foot due to rounding differences

 
 

 

PSS World Medical, Inc.
Current Fiscal Year Balance Sheet
(in thousands)

Consolidated

 
 
As of
 
ASSETS
 
July 2, 2010
   
October 1, 2010
   
December 31, 2010
   
April 1, 2011
 
 
 
 
   
 
   
 
   
 
 
Cash
  $ 59,081     $ 22,949     $ 36,912     $ 29,348  
Accounts receivable, net
    222,544       232,014       239,082       247,229  
Inventory, net
    217,500       220,846       240,211       213,211  
Prepaid expenses
    6,258       7,283       5,508       5,555  
Other current assets
    36,596       53,209       44,974       49,262  
Total current assets
    541,979       536,301       566,687       544,606  
 
                               
Property and equipment, net
    103,737       101,269       101,958       102,401  
Goodwill
    124,281       128,745       131,364       167,094  
Intangibles, net
    25,242       26,440       30,657       41,879  
Other long-term assets
    77,488       84,933       91,881       95,693  
 
                               
Total assets
  $ 872,727     $ 877,688     $ 922,547     $ 951,672  
 
                               
LIABILITIES & EQUITY
                               
 
                               
Accounts payable
  $ 125,155     $ 137,431     $ 149,698     $ 128,057  
Accrued expenses
    37,830       33,804       40,075       37,175  
Current portion of long term debt
    796       791       821       761  
Revolving line of credit
    394       506       312       -  
Other
    25,576       26,574       24,346       33,211  
Total current liabilities
    189,751       199,107       215,252       199,204  
 
                               
Long-term debt
    189,746       191,667       193,645       195,662  
Other non-current liabilities
    77,748       86,420       92,940       110,281  
 
                               
Total liabilities
    457,245       477,193       501,837       505,146  
 
                               
Total PSS World Medical, Inc. shareholders' equity
    412,344       397,270       417,082       442,926  
Noncontrolling interest
    3,138       3,225       3,628       3,600  
Total equity
    415,482       400,495       420,710       446,526  
 
                               
Total liabilities and equity
  $ 872,727     $ 877,688     $ 922,547     $ 951,672  

Numbers may not foot due to rounding differences

 
 

 

PSS World Medical, Inc.
Balance Sheet Trend
(in thousands)

Consolidated

 
Fiscal Year 2008
 
Fiscal Year 2009
 
Fiscal Year 2010
 
ASSETS
Jun-07
 
Sep-07
 
Dec-07
 
Mar-08
 
Jun-08
 
Sep-08
 
Dec-08
 
Mar-09
 
Jun-09
 
Sep-09
 
Dec-09
 
Mar-10
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash
$ 23,954   $ 17,041   $ 15,031   $ 21,122   $ 29,840   $ 226,055   $ 214,709   $ 82,031   $ 129,631   $ 130,089   $ 114,056   $ 52,751  
Investment in available for sale securities
  -     -     -     -     -     -     -     10,592     -     -     -     -  
Accounts receivable, net
  222,699     232,282     224,282     237,248     227,661     240,806     232,894     230,361     230,391     257,968     233,602     227,888  
Inventory, net
  187,499     188,087     214,256     190,846     192,707     199,337     239,940     207,593     196,160     212,813     230,725     218,911  
Deferred tax assets
  8,987     9,319     9,175     8,183     6,805     -     -     8,059     8,250     5,602     11,986     15,629  
Other current assets
  34,347     27,895     31,658     48,744     26,157     22,163     23,229     23,819     24,385     30,854     33,980     26,485  
Total current assets
  477,486     474,624     494,403     506,142     483,170     688,361     710,772     562,456     588,817     637,326     624,349     541,664  
 
                                                                       
Property and equipment, net
  90,213     90,208     90,781     91,584     92,803     96,849     97,113     101,205     103,552     105,499     106,956     105,220  
Goodwill
  110,993     110,727     110,868     110,679     112,320     112,392     112,717     112,768     114,255     115,280     120,828     121,772  
Intangibles, net
  30,280     28,991     27,669     26,305     25,738     24,345     23,102     22,958     22,442     21,604     25,289     24,548  
Investment in available for sale securities
  24,232     46,147     50,206     11,318     14,231     16,725     15,333     -     -     -     -     -  
Other long-term assets
  69,481     67,195     67,921     67,209     67,598     83,055     70,549     59,238     65,065     73,819     77,748     78,862  
 
                                                                       
Total assets
$ 802,685   $ 817,891   $ 841,849   $ 813,236   $ 795,860   $ 1,021,726   $ 1,029,587   $ 858,624   $ 894,131   $ 953,528   $ 955,170   $ 872,066  

 
Fiscal Year 2008
 
Fiscal Year 2009
 
Fiscal Year 2010
 
LIABILITIES & EQUITY
Jun-07
 
Sep-07
 
Dec-07
 
Mar-08
 
Jun-08
 
Sep-08
 
Dec-08
 
Mar-09
 
Jun-09
 
Sep-09
 
Dec-09
 
Mar-10
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accounts payable
$ 144,572   $ 149,827   $ 161,728   $ 135,930   $ 128,656   $ 149,674   $ 155,133   $ 127,300   $ 133,781   $ 156,966   $ 137,676   $ 123,970  
Accrued expenses
  33,190     33,275     34,350     46,056     38,055     50,816     43,170     52,718     46,196     43,248     48,051     50,253  
Current portion of long-term debt
  2,132     32,129     33,660     214,732     196,116     198,022     199,606     50,937     50,953     50,970     56,321     881  
Deferred tax liabilities, current
  -     -     -     -     -     6,619     4,492     -     -     -     -     -  
Other current liabilities
  15,267     15,000     15,846     11,969     8,102     8,723     9,160     7,956     12,882     13,653     13,122     10,954  
Total current liabilities
  195,161     230,230     245,584     408,687     370,928     413,855     411,560     238,910     243,812     264,837     255,169     186,058  
 
                                                                       
Long-term debt
  139,657     141,091     143,020     725     706     177,650     179,395     180,965     182,654     184,530     186,153     187,941  
Other long-term liabilities
  70,413     68,190     69,976     64,473     68,975     64,763     56,503     60,719     70,323     79,896     86,674     90,053  
 
                                                                       
Total liabilities
  405,231     439,512     458,580     473,885     440,610     656,268     647,459     480,594     496,789     529,263     527,996     464,052  
 
                                                                       
Total PSS World Med. shareholders' equity
  397,454     378,379     383,269     339,351     355,250     365,458     382,127     378,030     397,342     424,265     427,174     408,014  
Noncontrolling interest
  -     -     -     -     -     -     -     -     -     -     -     -  
Total equity
  397,454     378,379     383,269     339,351     355,250     365,458     382,127     378,030     397,342     424,265     427,174     408,014  
 
                                                                       
Total liabilities & equity
$ 802,685   $ 817,891   $ 841,849   $ 813,236   $ 795,860   $ 1,021,726   $ 1,029,587   $ 858,624   $ 894,131   $ 953,528   $ 955,170   $ 872,066  

 

Numbers may not foot due to rounding differences

 
 

 
 
PSS World Medical, Inc.
Unaudited Operating Highlights
Current Fiscal Year
(in millions)

 
 
Three Months Ended
   
Twelve Months Ended
 
 
 
April 1, 2011
   
April 2, 2010
   
April 1, 2011
   
April 2, 2010
 
 
 
 
   
 
   
 
   
 
 
Net sales:
 
 
   
 
   
 
   
 
 
     Physician Business
  $ 396.9     $ 344.0     $ 1,425.0     $ 1,437.8  
     Elder Care Business
    152.1       152.2       607.8       614.9  
     Corporate Shared Services
    0.6       0.7       2.0       2.4  
          Total net sales
  $ 549.7     $ 496.9     $ 2,034.8     $ 2,055.2  
 
                               
Income from operations:
                               
     Physician Business
  $ 38.3     $ 30.5     $ 138.0     $ 137.3  
     Elder Care Business
    10.8       9.4       37.8       38.0  
     Corporate Shared Services
    (10.9 )     (11.2 )     (42.2 )     (54.3 )
          Total income from operations
  $ 38.2     $ 28.7     $ 133.6     $ 121.0  
 
                               
EBITDA (a)
  $ 47.5     $ 36.9     $ 167.5     $ 154.1  
 
                               
Income from operations, as a percentage of net sales
    6.9 %     5.8 %     6.6 %     5.9 %
 
                               
Consolidated Return on Committed Capital ("ROCC") (b)
    39.7 %     30.7 %     35.5 %     33.5 %
 
                               
Billing Days
    65       65       253       258  
 
                               
Net Sales Per Billing Day (in thousands):
                               
     Physician Business
  $ 6,106     $ 5,293     $ 5,632     $ 5,573  
     Elder Care Business
    2,340       2,341       2,402       2,383  
     Corporate Shared Services
    10       10       8       9  
          Total Net Sales Per Billing Day
  $ 8,456     $ 7,644     $ 8,043     $ 7,966  
 
                               
Net Sales Per Billing Day Growth Rate:
                               
     Physician Business
    15.4 %             1.1 %        
     Elder Care Business
    (0.0 %)             0.8 %        
          Total Net Sales Per Billing Day Growth Rate
    10.6 %             1.0 %        
 
                               
 
                 
Annualized
 
 
                 
April 1, 2011
   
April 2, 2010
 
DSO (c)
                               
     Physician Business
                    38.7       38.3  
     Elder Care Business
                    47.3       48.4  
DOH (d)
                               
     Physician Business
                    54.8       53.6  
     Elder Care Business
                    62.7       54.4  
DIP (e)
                               
     Physician Business
                    37.5       37.3  
     Elder Care Business
                    21.3       22.6  
Cash Conversion Days (f)
                               
     Physician Business
                    56.0       54.6  
     Elder Care Business
                    88.7       80.2  
 
                               
 
                 
As of
 
 
                 
April 1, 2011
   
April 2, 2010
 
Operational working capital (g)
                  $ 332.4     $ 322.8  
 
                               
Net debt:
                               
Convertible senior notes
                  $ 195.6     $ 187.1  
Other debt
                    0.8       1.7  
Less: Cash and cash equivalents
                    (29.3 )     (52.8 )
Net debt
                  $ 167.1     $ 136.1  

Numbers may not foot due to rounding differences

 
 

 

PSS WORLD MEDICAL, INC.
Non-GAAP Reconciliations
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Physician Business net sales impact from H1N1-related product sales
(in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For the Three Months Ended
 
Percent
Change
 
For the Twelve Months Ended
 
Percent
Change
 
April 1, 2011
 
April 2, 2010
 
 
April 1, 2011
 
April 2, 2010
 
Physician Business:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Sales
$
 396.9 
 
$
 344.0 
 
15.4%
 
$
 1,425.0 
 
$
 1,437.8 
 
(0.9)%
Less: Impact of H1N1-related product sales(h)
 
 - 
 
 
 - 
 
 
 
 
 - 
 
 
 (52.5)
 
 
Net Sales adjusted for H1N1-related product sales
$
 396.9 
 
$
 344.0 
 
15.4%
 
$
 1,425.0 
 
$
 1,385.3 
 
2.9%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Physician Business daily net sales impact from H1N1-related product sales
(in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For the Three Months Ended
 
Percent
Change
 
For the Twelve Months Ended
 
Percent
Change
 
April 1, 2011
 
April 2, 2010
 
 
April 1, 2011
 
April 2, 2010
 
Physician Business:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Daily Net Sales
$
 6.1 
 
$
 5.3 
 
15.4%
 
$
 5.6 
 
$
 5.6 
 
1.1%
Less: Impact of H1N1-related product sales(h)
 
 - 
 
 
 - 
 
 
 
 
 - 
 
 
 (0.2)
 
 
Daily Net Sales adjusted for H1N1-related product sales
$
 6.1 
 
$
 5.3 
 
15.4%
 
$
 5.6 
 
$
 5.4 
 
4.9%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated net sales impact from H1N1-related product sales
(in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For the Three Months Ended
 
Percent
Change
 
For the Twelve Months Ended
 
Percent
Change
 
April 1, 2011
 
April 2, 2010
 
 
April 1, 2011
 
April 2, 2010
 
Consolidated:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Sales
$
 549.7 
 
$
 496.9 
 
10.6%
 
$
 2,034.8 
 
$
 2,055.2 
 
(1.0)%
Less: Impact of H1N1-related product sales(h)
 
 - 
 
 
 - 
 
 
 
 
 - 
 
 
 (52.5)
 
 
Net Sales adjusted for H1N1-related product sales
$
 549.7 
 
$
 496.9 
 
10.6%
 
$
 2,034.8 
 
$
 2,002.7 
 
1.6%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated daily net sales impact from H1N1-related product sales
(in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For the Three Months Ended
 
Percent
Change
 
For the Twelve Months Ended
 
Percent
Change
 
April 1, 2011
 
April 2, 2010
 
 
April 1, 2011
 
April 2, 2010
 
Consolidated:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Sales
$
 8.5 
 
$
 7.6 
 
10.6%
 
$
 8.0 
 
$
 8.0 
 
1.0%
Less: Impact of H1N1-related product sales(h)
 
 - 
 
 
 - 
 
 
 
 
 - 
 
 
 (0.2)
 
 
Daily Net Sales adjusted for H1N1-related product sales
$
 8.5 
 
$
 7.6 
 
10.6%
 
$
 8.0 
 
$
 7.8 
 
3.6%

Numbers may not foot due to rounding differences

 
 

 
 
PSS WORLD MEDICAL, INC.
Non-GAAP Reconciliations
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated net sales impact from Fiscal Year 2011 Physician Dispensing Acquisitions
(in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Percent
 
Twelve Months Ended
 
Percent
 
April 1, 2011
 
April 2, 2010
 
Change
 
April 1, 2011
 
April 2, 2010
 
Change
Consolidated:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Sales
$
 549.7 
 
$
 496.9 
 
10.6%
 
$
 2,034.8 
 
$
 2,055.2 
 
-1.0%
Less: Net Sales from Physician Dispensing
 
 27.2 
 
 
 - 
 
 
 
 
 36.9 
 
 
 - 
 
 
Net Sales less the impact of Physician Dispensing
$
 522.5 
 
$
 496.9 
 
5.2%
 
$
 1,997.9 
 
$
 2,055.2 
 
-2.8%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Physician Business net sales impact from Fiscal Year 2011 Physician Dispensing Acquisitions
(in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Percent
 
Twelve Months Ended
 
Percent
 
April 1, 2011
 
April 2, 2010
 
Change
 
April 1, 2011
 
April 2, 2010
 
Change
Physician Business:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Sales
$
 396.9 
 
$
 344.0 
 
15.4%
 
$
 1,425.0 
 
$
 1,437.8 
 
-0.9%
Less: Net Sales from Physician Dispensing
 
 27.2 
 
 
 - 
 
 
 
 
 36.9 
 
 
 - 
 
 
Net Sales less the impact of Physician Dispensing
$
 369.7 
 
$
 344.0 
 
7.5%
 
$
 1,388.1 
 
$
 1,437.8 
 
-3.5%
 
 
 
 
Numbers may not foot due to rounding differences

 
 

 

PSS World Medical, Inc.
Selling Days Calendar FY10-FY12

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FY2010
 
FY2011
 
FY2012
 
 
Closing
Selling
 
Closing
Selling
 
Closing
Selling
 
 
Date
Days
 
Date
Days
 
Date
Days
 
Notes
24-Apr
20 
 
30-Apr
20 
 
29-Apr
20 
 
A
29-May
24 
 
28-May
20 
 
27-May
20 
 
A
26-Jun
20 
 
2-Jul
24 
 
1-Jul
24 
 
B
Q1
 64 
 
 
 64 
 
 
 64 
 
 
31-Jul
24 
 
30-Jul
19 
 
29-Jul
19 
 
A
28-Aug
20 
 
27-Aug
20 
 
26-Aug
20 
 
A
2-Oct
24 
 
1-Oct
24 
 
30-Sep
24 
 
B
Q2
 68 
 
 
 63 
 
 
 63 
 
 
30-Oct
20 
 
29-Oct
20 
 
28-Oct
20 
 
A
27-Nov
18 
 
26-Nov
18 
 
25-Nov
18 
 
A
1-Jan
23 
 
31-Dec
23 
 
30-Dec
24 
 
B
Q3
 61 
 
 
 61 
 
 
 62 
 
 
29-Jan
20 
 
28-Jan
20 
 
27-Jan
19 
 
A
26-Feb
20 
 
25-Feb
20 
 
24-Feb
20 
 
A
2-Apr
25 
 
1-Apr
25 
 
30-Mar
25 
 
B
Q4
 65 
 
 
 65 
 
 
 64 
 
 
Total
 258 
 
 
 253 
 
 
 253 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
A
Closing date is the last Friday of the month (for non-quarter end months).
 
 
 
 
 
 
 
 
 
 
B
"Selling Days" defines closing date as the Friday closest to month end
 
 based on business days only (for quarter end months only).

Numbers may not foot due to rounding differences

 
 

 

PSS World Medical, Inc.
EBITDA Calculation
Current Fiscal Year
(in thousands)

 
 
Fiscal Year 2011
 
 
   Q1      Q2      Q3      Q4    
YTD
 
 
                                 
 
 
Net Income
  $ 13,831     $ 19,644     $ 19,592     $ 21,598     $ 74,664  
Plus: Interest expense
    4,137       4,226       4,243       4,515       17,121  
Less: Interest and investment income
    (66 )     (46 )     (33 )     (139 )     (284 )
Plus: Provision for income taxes
    7,892       12,016       11,757       12,895       44,560  
Plus: Depreciation
    5,942       6,100       6,260       6,763       25,065  
Plus: Amortization of intangible assets
    1,444       1,501       1,584       1,850       6,378  
EBITDA
  $ 33,179     $ 43,441     $ 43,402     $ 47,483     $ 167,504  

Numbers may not foot due to rounding differences

 
 

 

PSS World Medical, Inc.
EBITDA Calculation
(in thousands)

 
Fiscal Year 2008
 
Fiscal Year 2009
 
Fiscal Year 2010
 
 
 Q1    Q2    Q3    Q4  
Total FY 2008
   Q1    Q2    Q3    Q4  
Total FY 2009
   Q1    Q2    Q3    Q4  
Total FY 2010
 
 
                       
 
                         
 
                         
 
 
Net income
$ 7,792   $ 13,578   $ 13,249   $ 18,515   $ 53,133   $ 9,372   $ 12,363   $ 15,989   $ 13,763   $ 51,486   $ 13,304   $ 21,686   $ 17,921   $ 16,452   $ 69,363  
 
                                                                                         
Plus: Interest expense
  2,764     2,956     3,247     3,529     12,495     3,203     5,300     7,409     6,247     22,159     4,261     4,532     4,214     4,288     17,295  
Less: Interest and investment income
  (528 )   (114 )   (26 )   (23 )   (691 )   (122 )   (842 )   (1,034 )   (305 )   (2,304 )   (134 )   (95 )   (117 )   (30 )   (376 )
Plus: Provision for income taxes
  5,010     8,551     8,441     12,597     34,599     6,187     8,104     10,230     7,709     32,229     8,213     12,964     10,736     8,854     40,768  
Plus: Depreciation
  4,632     4,796     4,710     4,719     18,858     4,830     4,912     5,116     5,144     20,002     5,245     5,256     5,558     5,881     21,940  
Plus: Amortization of intanhible assets
  1,458     1,406     1,362     1,360     5,586     1,344     1,553     1,264     1,328     5,489     1,252     1,190     1,235     1,444     5,121  
EBITDA
$ 21,128   $ 31,172   $ 30,983   $ 40,697   $ 123,980   $ 24,813   $ 31,390   $ 38,973   $ 33,886   $ 129,062   $ 32,140   $ 45,533   $ 39,547   $ 36,890   $ 154,110  
 

 
Numbers may not foot due to rounding differences

 
 

 

PSS World Medical, Inc.
Return on Committed Capital (ROCC)
Current Fiscal Year
(in thousands)

   
Fiscal Year 2011
 
     Q1      Q2      Q3      Q4    
Total FY 2011
 
Consolidated Return on Committed Capital:
                                 
 
 
Quarterly Average Committed Capital (1)
  $ 397,789     $ 406,570     $ 415,941     $ 410,592    
 
 
Annual Average Committed Capital
                                  $ 401,196  
                                         
Committed Capital - Current Quarter
    397,814       415,325       416,556       404,628       404,628  
Committed Capital - Previous Quarter
    397,765       397,814       415,325       416,556       416,556  
Committed Capital - Previous Year End
                                    397,765  
                                         
Return on Committed Capital - Quarterly (2)
    27.4 %     36.7 %     35.7 %     39.7 %        
Return on Committed Capital - Annual
                                    35.5 %
                                         
Return:
                                       
Net income
    13,831       19,644       19,592       21,598       74,664  
                                         
Add:
                                       
Provision for income taxes
    7,892       12,016       11,757       12,895       44,560  
Interest expense
    4,137       4,226       4,243       4,515       17,121  
Amortization
    1,444       1,501       1,584       1,850       6,378  
Interest and investment income
    (66 )     (46 )     (33 )     (139 )     (284 )
    $ 27,238     $ 37,341     $ 37,141     $ 40,719     $ 142,440  
                                         
Committed Capital:
                                       
Total assets
  $ 872,727     $ 877,688     $ 922,547     $ 951,672     $ 951,672  
Less assets excluded:
                                       
  Cash
    (59,081 )     (22,949 )     (36,912 )     (29,348 )     (29,348 )
  Goodwill and intangibles, net
    (149,523 )     (155,185 )     (162,020 )     (208,973 )     (208,973 )
                                         
Total liabilities
    (457,246 )     (477,193 )     (501,837 )     (505,146 )     (505,146 )
Plus liabilities excluded:
                                       
  Current debt
    1,190       1,297       1,133       761       761  
  Long-term debt
    189,746       191,667       193,645       195,662       195,662  
    $ 397,814     $ 415,325     $ 416,556     $ 404,628     $ 404,628  

(1)  
Quarterly Average Committed Capital equals the sum of the committed capital of the most recent two quarters, divided by two.
(2)  
Return on Committed Capital equals Return divided by Committed Capital. Quarterly calculations are annualized.

Numbers may not foot due to rounding differences

 
 

 

PSS World Medical, Inc.
Return on Committed Capital (ROCC)
(in thousands)


 
Fiscal Year 2008
 
Fiscal Year 2009
 
Fiscal Year 2010
 
 
 Q1    Q2    Q3    Q4  
Total FY 2008
   Q1    Q2    Q3    Q4  
Total FY 2009
   Q1    Q2    Q3    Q4  
Total FY 2010
 
Consolidated Return on Committed Capital:
                       
 
                         
 
                         
 
 
Quarterly Average Committed Capital (1)
$ 359,807   $ 384,428   $ 400,611   $ 401,541  
 
  $ 390,439   $ 381,257   $ 394,469   $ 401,387  
 
  $ 378,397   $ 378,706   $ 401,134   $ 403,620  
 
 
Annual Average Committed Capital (2)
                        $ 371,150                           $ 394,438                           $ 394,969  
 
                                                                                         
Committed Capital - Current Quarter
  374,016     394,840     406,381     396,702           384,175     378,339     410,600     392,174           364,619     392,792     409,475     397,765        
Committed Capital - Previous Quarter
  345,597     374,016     394,840     406,381           396,702     384,175     378,339     410,600           392,174     364,619     392,792     409,475        
Committed Capital - Current Year End
                          396,702                             392,174                             397,765  
Committed Capital - Previous Year End
                          345,597                             396,702                             392,174  
 
                                                                                         
Return on Committed Capital - Quarterly (3)
  18.3 %   27.4 %   26.2 %   35.8 %         20.5 %   27.8 %   34.3 %   28.6 %         28.4 %   42.5 %   33.9 %   30.7 %      
Return on Committed Capital - Annual
                          28.3 %                           27.6 %                           33.5 %
 
                                                                                         
Return:
                                                                                         
Income from continuing operations before extraordinary loss
$ 7,792   $ 13,578   $ 13,249   $ 18,515   $ 53,133   $ 9,372   $ 12,363   $ 15,989   $ 13,763   $ 51,486   $ 13,304   $ 21,686   $ 17,921   $ 16,452   $ 69,363  
 
                                                                                         
Add:
                                                                                         
Provision for income taxes
  5,010     8,551     8,441     12,597     34,599     6,187     8,104     10,230     7,709     32,229     8,213     12,964     10,736     8,854     40,768  
Interest expense
  2,764     2,956     3,247     3,529     12,495     3,203     5,300     7,409     6,247     22,159     4,261     4,532     4,214     4,288     17,295  
Amortization
  1,458     1,406     1,362     1,360     5,586     1,344     1,553     1,264     1,328     5,489     1,252     1,190     1,235     1,444     5,121  
Interest and investment income
  (528 )   (114 )   (26 )   (23 )   (691 )   (122 )   (842 )   (1,034 )   (305 )   (2,304 )   (134 )   (95 )   (117 )   (30 )   (376 )
 
                                                                                         
 
$ 16,496   $ 26,377   $ 26,273   $ 35,978   $ 105,123   $ 19,983   $ 26,478   $ 33,856   $ 28,742   $ 109,059   $ 26,895   $ 40,277   $ 33,989   $ 31,009   $ 132,170  
 
                                                                                         
 
                                                                                         
Committed Capital:
                                                                                         
Total assets
$ 802,685   $ 817,891   $ 841,849   $ 813,236   $ 813,236   $ 795,860   $ 1,021,726   $ 1,029,586   $ 858,624   $ 858,624   $ 894,131   $ 953,528   $ 955,170   $ 872,065   $ 872,065  
Less assets excluded:
                                                                                         
  Cash
  (23,954 )   (17,041 )   (15,031 )   (21,122 )   (21,122 )   (29,840 )   (226,055 )   (214,709 )   (82,031 )   (82,031 )   (129,631 )   (130,089 )   (114,056 )   (52,751 )   (52,751 )
  Goodwill and intangibles, net
  (141,273 )   (139,718 )   (138,537 )   (136,984 )   (136,984 )   (138,058 )   (136,736 )   (135,820 )   (135,726 )   (135,726 )   (136,696 )   (136,884 )   (146,117 )   (146,320 )   (146,320 )
 
                                                                                         
Total liabilities
  (405,231 )   (439,512 )   (458,580 )   (473,885 )   (473,885 )   (440,610 )   (656,268 )   (647,459 )   (480,594 )   (480,594 )   (496,792 )   (529,263 )   (527,996 )   (464,052 )   (464,052 )
Plus liabilities excluded:
                                                                                         
  Current debt
  2,132     32,129     33,660     214,732     214,732     196,116     198,022     199,606     50,937     50,937     50,953     50,970     56,321     881     881  
  Long-term debt
  139,657     141,091     143,020     725     725     706     177,650     179,395     180,965     180,965     182,654     184,530     186,153     187,941     187,941  
 
$ 374,016   $ 394,840   $ 406,381   $ 396,702   $ 396,702   $ 384,175   $ 378,339   $ 410,600   $ 392,174   $ 392,174   $ 364,619   $ 392,792   $ 409,475   $ 397,765   $ 397,765  

(1)  
Quarterly Average Committed Capital equals the sum of the committed capital of the most recent two quarters, divided by two.
(2)  
Annual Average Committed Capital equals the sum of the committed capital of the most recent two year ends, divided by two.
(3)  
Return on Committed Capital equals return divided by committed capital. Quarterly calculations are annualized.

Numbers may not foot due to rounding differences

 
 

 

PSS WORLD MEDICAL, INC.
Footnotes


(a)  
EBITDA represents net income plus provision for income taxes, interest expense, depreciation, and amortization of intangible assets, less interest and investment income. Management review EBITDA when evaluating and comparing the performance of each operating segment on a quarterly basis. Management believes EBITDA is an important measure of liquidity.

(b)  
ROCC equals return divided by average committed capital. Return is annualized for quarterly and year to date calculations. Management review ROCC when evaluating and comparing the performance of each operating segment on a quarterly basis. Management believes ROCC is an important measure of profitability and return.

(c)  
DSO is average accounts receivable divided by average daily net sales. Average accounts receivable is the sum of accounts receivable, net of the allowance for doubtful accounts, at the beginning and end of the most recent four quarters divided by five. Average daily net sales are net sales for the most recent four quarters divided by 360.

(d)  
DOH is average inventory divided by average daily cost of goods sold (“COGS”). Average inventory is the sum of inventory at the beginning and end of the most recent four quarters divided by five. Average daily COGS is quarterly COGS for the most recent four quarters divided by 360.

(e)  
DIP is average accounts payable divided by average daily COGS. Average accounts payable is the sum of accounts payable at the beginning and end of the most recent four quarters divided by five.

(f)  
Cash Conversion Days is the sum of DSO and DOH less DIP.

(g)  
Operational working capital equals accounts receivable plus inventory minus accounts payable.

(h)  
“H1N1-related product sales” represents increased sales in influenza test kits, surgical masks, medical gloves, hand sanitizers and other products related to the swine flu pandemic.