8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):  May 12, 2010

PSS WORLD MEDICAL, INC.

(Exact name of Registrant as specified in its charter)

Commission File Number:  0-23832

Florida	59-2280364
(State or other jurisdiction	(IRS Employer
of incorporation or organization)	Identification Number)
4345 Southpoint Blvd.
Jacksonville, Florida	32216
(Address of principal executive offices)	(Zip code)
Registrant’s telephone number, including area code	(904) 332-3000

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02  Disclosure of Results of Operations and Financial Condition.

Item 8.01  Other Events

On May 12, 2010, PSS World Medical, Inc. (the “Company”) issued a press release in which the Company announced its financial results for the three and twelve months ended April, 2, 2010.  In this press release, the Company also disclosed fiscal year 2011 financial guidance.  This press release is attached as Exhibit 99.1 to this report and is incorporated herein by reference.  In connection with the press release, the Company has also made available certain supplemental financial information (the “Financial Supplement”) for the three and twelve months ended April, 2, 2010, which may be found on the Company’s website at www.pssd.com.  This Financial Supplement is attached as Exhibit 99.2 to this report and is incorporated herein by reference.

The Financial Supplement contains financial measures that are not in accordance with accounting principles generally accepted in the United States of America ("GAAP").  The Company has provided reconciliations within the Financial Supplement of the non-GAAP financial measures to the most directly comparable GAAP financial measures.

The Company provides non-GAAP financial measures to supplement its consolidated financial statements presented in accordance with GAAP.  These non-GAAP financial measures are intended to supplement the user's overall understanding of the Company's current financial performance and its prospects for the future.  Specifically, the Company believes the non-GAAP results provide useful information to both management andinvestors by identifying certain expenses, gains and losses that, when excluded from the GAAP results, may provide additional understanding of the Company's core operating results or business performance.  However, these non-GAAP financial measures are not intended to supersede or replace the Company's GAAP res ults.

Item 9.01  Financial Statements and Exhibits.

Exhibit

Number                      Description

99.1   Press Release dated May 12, 2010 with respect to the Registrant’s financial results for the three and twelve months ended April, 2, 2010.

99.2 Financial Supplement for the three and twelve months ended April, 2, 2010.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Date:  May 12, 2010

PSS WORLD MEDICAL, INC.

By: _/s/ David M. Bronson________________

Name:           David M. Bronson

Title: Executive Vice President and Chief Financial Officer

EXHIBIT INDEX

99.1   Press Release dated May 12, 2010.

99.2   Financial Supplement for the three and twelve months ended April, 2, 2010.

EX-99.2

Financial Supplement

For the Fourth Quarter of Fiscal Year 2010 ending April 2, 2010

PSS World Medical, Inc.

As of April 2, 2010

Current Fiscal Year

(in thousands, except per share data)

	Fiscal 2010
	Q1		Q2		Q3		Q4		YTD
Net sales	$	493,554	$	561,976	$	502,764	$	496,877	$	2,055,171
Cost of goods sold		347,581		389,404		348,064		342,427		1,427,476
Gross profit		145,974		172,571		154,700		154,449		627,695
General & administrative expenses		91,638		97,208		89,439		92,586		370,871
Selling expenses		32,687		36,728		33,249		33,178		135,842
Income from operations		21,649		38,635		32,012		28,685		120,981
Interest expense		(4,261)		(4,532)		(4,214)		(4,288)		(17,295)
Interest & investment income		134		95		117		30		376
Other income		3,995		452		741		879		6,068
Income from ops before income taxes		21,517		34,650		28,657		25,306		110,130
Provision for income taxes		8,213		12,964		10,736		8,854		40,768
Net income	$	13,304	$	21,686	$	17,921	$	16,452	$	69,363
Earnings per share - basic:
Net income	$	0.23	$	0.37	$	0.31	$	0.29	$	1.20
Earnings per share - Diluted:
Net income	$	0.23	$	0.37	$	0.30	$	0.28	$	1.18
WASO - Basic		58,380		58,566		58,522		56,627		58,029
WASO - Diluted		58,859		59,390		59,390		58,115		58,943
Net sales by segment:
Physician Business	$	342,292	$	398,531	$	352,961	$	344,039	$	1,437,823
Elder Care Business		150,381		162,970		149,400		152,187		614,937
Corporate Shared Services		882		475		403		651		2,411
	$	493,554	$	561,976	$	502,764	$	496,877	$	2,055,171
Billing days:		64		68		61		65		258
Net sales per billing day:
Physician Business	$	5,348	$	5,861	$	5,786	$	5,293	$	5,573
Elder Care Business		2,350		2,397		2,449		2,341		2,383
Corporate Shared Services		14		7		7		10		9
	$	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 2, 2010

(in thousands, except per share data)

	Fiscal 2007					Fiscal 2008					Fiscal 2009
	Q1	Q2	Q3	Q4	Total	Q1	Q2	Q3	Q4	Total	Q1	Q2	Q3	Q4	Total
Net sales	$ 413,135	$ 427,059	$ 458,421	$ 443,024	$ 1,741,639	$ 438,910	$ 457,930	$ 465,208	$ 493,744	$ 1,855,791	$ 472,215	$ 491,603	$ 519,145	$ 469,728	$ 1,952,691
Cost of goods sold	293,233	303,204	335,185	310,008	1,241,629	311,227	325,390	330,215	347,289	1,314,120	333,283	344,347	364,282	328,868	1,370,781
Gross profit	119,902	123,856	123,235	133,017	500,010	127,683	132,540	134,993	146,455	541,672	138,931	147,255	154,863	140,860	581,910
General and administrative expenses	73,695	73,422	75,253	78,453	300,824	83,638	77,353	79,408	83,725	324,124	89,634	90,689	89,426	82,728	352,478
Selling expenses	27,498	28,878	30,140	30,308	116,823	29,551	30,763	31,509	33,473	125,295	31,266	32,161	33,721	31,356	128,505
Income from operations	18,709	21,556	17,842	24,255	82,362	14,494	24,425	24,077	29,257	92,253	18,031	24,405	31,715	26,776	100,927
Interest expense	(2,691)	(2,635)	(2,642)	(2,631)	(10,597)	(2,764)	(2,956)	(3,247)	(3,529)	(12,495)	(3,203)	(5,300)	(7,409)	(6,247)	(22,159)
Interest and investment income	98	282	426	385	1,191	528	114	26	23	691	122	842	1,034	305	2,304
Other income	469	429	517	591	2,006	544	546	833	5,361	7,284	608	520	877	638	2,643
Income from ops before income taxes	16,588	19,632	16,144	22,601	74,965	12,802	22,129	21,690	31,112	87,732	15,559	20,467	26,218	21,472	83,716
Provision for income taxes	6,449	7,681	5,862	7,824	27,817	5,010	8,551	8,441	12,597	34,599	6,187	8,104	10,230	7,709	32,229
Income from continuing operations	10,139	11,951	10,282	14,777	47,148	7,792	13,578	13,249	18,515	53,133	9,372	12,363	15,989	13,763	51,486
Net income	$ 10,137	$ 11,951	$ 10,282	$ 14,777	$ 47,146	$ 7,792	$ 13,578	$ 13,249	$ 18,515	$ 53,133	$ 9,372	$ 12,363	$ 15,989	$ 13,763	$ 51,486
Earnings per share - Basic:
Income from continuing operations	$ 0.15	$ 0.18	$ 0.15	$ 0.22	$ 0.70	$ 0.12	$ 0.21	$ 0.21	$ 0.30	$ 0.82	$ 0.15	$ 0.21	$ 0.27	$ 0.23	$ 0.86
Net income	$ 0.15	$ 0.18	$ 0.15	$ 0.22	$ 0.70	$ 0.12	$ 0.21	$ 0.21	$ 0.30	$ 0.82	$ 0.15	$ 0.21	$ 0.27	$ 0.23	$ 0.86
Earnings per share - Diluted:
Income from continuing operations	$ 0.15	$ 0.17	$ 0.15	$ 0.21	$ 0.68	$ 0.11	$ 0.20	$ 0.20	$ 0.29	$ 0.80	$ 0.15	$ 0.20	$ 0.27	$ 0.23	$ 0.85
Net income	$ 0.15	$ 0.17	$ 0.15	$ 0.21	$ 0.68	$ 0.11	$ 0.20	$ 0.20	$ 0.29	$ 0.80	$ 0.15	$ 0.20	$ 0.27	$ 0.23	$ 0.85
WASO - Basic	67,310	67,453	67,054	67,059	67,219	66,793	65,806	63,999	62,213	64,703	61,003	59,941	59,481	59,307	59,937
WASO - Diluted	68,947	69,478	69,458	69,419	69,325	68,765	67,067	65,756	63,152	66,184	61,723	60,921	60,322	59,801	60,696
Net Sales by Segment:
Physician Business	$ 284,438	$ 300,813	$ 329,159	$ 313,109	$ 1,227,520	$ 306,245	$ 320,171	$ 326,520	$ 355,749	$ 1,308,685	$ 331,386	$ 341,761	$ 357,269	$ 326,966	$ 1,357,382
Elder Care Business	128,696	126,246	129,261	129,915	514,118	132,664	137,759	138,688	137,995	547,106	140,406	149,485	161,874	142,743	594,509
Corporate Shared Services	-	-	-	-	-	-	-	-	-	-	423	356	2	19	800
	$ 413,135	$ 427,059	$ 458,421	$ 443,024	$ 1,741,639	$ 438,910	$ 457,930	$ 465,208	$ 493,744	$ 1,855,791	$ 472,215	$ 491,603	$ 519,145	$ 469,728	$ 1,952,691
Billing Days:	64	63	62	64	253	64	63	62	64	253	64	63	66	60	253
Net Sales Per Billing Day:
Physician Business	$ 4,444	$ 4,775	$ 5,309	$ 4,892	$ 4,852	$ 4,785	$ 5,082	$ 5,266	$ 5,559	$ 5,173	$ 5,178	$ 5,425	$ 5,413	$ 5,449	$ 5,365
Elder Care Business	2,011	2,004	2,085	2,030	2,032	2,073	2,187	2,237	2,156	2,162	2,194	2,373	2,453	2,379	2,350
Corporate Shared Services	-	-	-	-	-	-	-	-	-	-	7	6	-	-	3
	$ 6,455	$ 6,779	$ 7,394	$ 6,922	$ 6,884	$ 6,858	$ 7,269	$ 7,503	$ 7,715	$ 7,335	$ 7,378	$ 7,803	$ 7,866	$ 7,829	$ 7,718

Numbers may not foot due to rounding differences

PSS World Medical, Inc.

As of April 2, 2010

SelectTM Net Sales

(in thousands)

	Fiscal 2006	Fiscal 2007	Fiscal 2008	Fiscal 2009	Fiscal 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 2, 2010

(in thousands)

	Three Months Ended		Twelve Months Ended
	4/2/2010	3/27/2009	4/2/2010	3/27/2009
NET SALES:
Physician Business	344,039	326,966	1,437,823	1,357,382
Elder Care Business	152,187	142,743	614,937	594,509
Corporate Shared Services	651	19	2,411	800
Total net sales	496,877	469,728	2,055,171	1,952,691
BILLING DAYS:	65	60	258	253
NET SALES PER BILLING DAY:
Physician Business	5,293	5,449	5,573	5,365
Elder Care Business	2,341	2,379	2,383	2,350
Corporate Shared Services	10	-	9	3
Total net sales per billing day	7,644	7,829	7,966	7,718
INCOME FROM OPERATIONS:
Physician Business	30,497	29,271	137,261	109,800
Elder Care Business	9,422	7,571	38,017	30,140
Corporate Shared Services	(11,234)	(10,065)	(54,297)	(39,012)
Total income from operations	28,685	26,776	120,981	100,927
DEPRECIATION:
Physician Business	2,067	1,906	7,983	7,494
Elder Care Business	1,226	1,272	4,984	4,948
Corporate Shared Services	2,588	1,965	8,973	7,561
Total depreciation	5,881	5,144	21,940	20,002
AMORTIZATION OF INTANGIBLE
AND OTHER ASSETS:
Physician Business	581	651	2,343	3,008
Elder Care Business	743	551	2,432	2,290
Corporate Shared Services	120	125	346	191
Total amortization of intangible and other assets	1,444	1,328	5,121	5,489
PROVISION FOR DOUBTFUL ACCOUNTS:
Physician Business	(11)	56	1,944	1,547
Elder Care Business	414	136	1,851	2,134
Total provision for doubtful accounts	402	192	3,795	3,680
INTEREST EXPENSE:
Total interest expense	4,288	6,247	17,295	22,159
INTEREST AND INVESTMENT INCOME:
Elder Care Business	3	12	70	46
Corporate Shared Services	28	293	306	2,257
Total interest and investment income	30	305	376	2,304
PROVISION (BENEFIT) FOR INCOME TAXES:
Physician Business	11,089	11,297	49,982	41,115
Elder Care Business	2,698	2,200	11,103	8,496
Corporate Shared Services	(4,933)	(5,789)	(20,317)	(17,382)
Total provision for income taxes	8,854	7,709	40,768	32,229

Numbers may not foot due to rounding differences

PSS World Medical, Inc.

Current Fiscal Year Balance Sheet

(in thousands)

Consolidated

	As of
ASSETS		6/26/09		10/2/09		1/1/10		4/2/10
Cash	$	129,631	$	130,089	$	114,056	$	52,751
Accounts receivable, net		230,391		257,968		233,602		227,888
Inventory, net		196,160		212,813		230,725		218,911
Deferred tax assets, net		8,250		5,602		11,986		15,629
Prepaid expenses and other		24,385		30,854		33,980		26,485
Total current assets		588,817		637,326		624,349		541,664
Property and equipment, net		103,552		105,499		106,956		105,220
Goodwill		114,255		115,280		120,828		121,772
Intangibles, net		22,442		21,604		25,289		24,548
Other long-term assets		65,065		73,819		77,748		78,862
Total long-term assets		305,314		316,202		330,821		330,402
Total assets	$	894,131	$	953,528	$	955,170	$	872,066
LIABILITIES & EQUITY
Accounts payable	$	133,781	$	156,966	$	137,676	$	123,970
Accrued expenses		46,196		43,248		48,051		50,253
Revolving line of credit and current portion of long term debt		50,953		50,970		56,321		881
Other current liabilities		12,882		13,653		13,121		10,954
Total current liabilities		243,812		264,837		255,169		186,058
Long-term debt		182,654		184,530		186,153		187,941
Other non-current liabilities		70,323		79,896		86,674		90,053
Total long-term liabilities		252,977		264,426		272,827		277,994
Total liabilities		496,789		529,263		527,996		464,052
Total equity		397,342		424,265		427,174		408,014
Total liabilities & equity	$	894,131	$	953,528	$	955,170	$	872,066

Numbers may not foot due to rounding differences

PSS World Medical, Inc.

Balance Sheet Trend

(in thousands)

Consolidated

	Fiscal 2007				Fiscal 2008				Fiscal 2009
ASSETS	Jun-06	Sep-06	Dec-06	Mar-07	Jun-07	Sep-07	Dec-07	Mar-08	Jun-08	Sep-08	Dec-08	Mar-09
Cash	27,784	45,676	54,904	46,658	23,954	17,041	15,031	21,122	29,840	226,055	214,709	82,031
Investment in available for sale securities	-	-	-	-	-	-	-	-	-	-	-	10,592
Accounts receivable, net	206,405	225,538	219,822	222,776	222,699	232,282	224,282	237,248	227,661	240,806	232,894	230,361
Inventory, net	170,612	172,127	186,193	174,130	187,499	188,087	214,256	190,846	192,707	199,337	239,940	207,593
Deferred tax assets	11,181	9,042	2,128	8,776	8,987	9,319	9,175	8,183	6,805	-	-	8,059
Other current assets	32,876	39,289	37,330	34,436	34,347	27,894	31,658	48,744	26,157	22,163	23,229	23,819
Total current assets	448,857	491,672	500,376	486,776	477,486	474,623	494,403	506,142	483,170	688,361	710,772	562,456
Property and equipment, net	88,977	88,089	86,720	89,498	90,213	90,208	90,781	91,584	92,803	96,849	97,113	101,205
Goodwill	106,519	106,819	106,972	107,366	110,993	110,727	110,868	110,679	112,320	112,392	112,717	112,768
Intangibles, net	33,350	32,343	31,186	29,758	30,280	28,991	27,669	26,305	25,738	24,345	23,102	22,958
Investment in available for sale securities	-	-	-	-	24,232	46,147	50,206	11,318	14,231	16,725	15,333	-
Other long-term assets	54,444	54,455	57,631	59,898	69,481	67,195	67,921	67,209	67,598	83,055	70,549	59,238
Total long-term assets	283,291	281,706	282,509	286,521	325,198	343,268	347,446	307,094	312,690	333,365	318,815	296,169
Total assets	732,148	773,378	782,885	773,297	802,685	817,891	841,849	813,236	795,860	1,021,726	1,029,587	858,624

	Fiscal 2007				Fiscal 2008				Fiscal 2009
LIABILITIES & EQUITY	Jun-06	Sep-06	Dec-06	Mar-07	Jun-07	Sep-07	Dec-07	Mar-08	Jun-08	Sep-08	Dec-08	Mar-09
Accounts payable	122,449	145,767	162,338	131,330	144,572	149,827	161,728	135,930	128,656	149,674	155,133	127,300
Accrued expenses	27,748	34,827	31,670	37,224	33,190	33,275	34,350	46,056	38,055	50,816	43,170	52,718
Current maturities of long-term debt	517	1,655	138,334	2,238	2,132	32,129	33,660	214,732	196,116	198,022	199,606	50,937
Deferred tax liabilities, current	-	-	-	-	-	-	-	-	-	6,619	4,492	-
Other current liabilities	12,490	13,917	10,731	11,440	15,267	15,000	15,846	11,969	8,102	8,723	9,160	7,956
Total current liabilities	163,204	196,166	343,072	182,232	195,161	230,230	245,584	408,687	370,928	413,855	411,560	238,910
Long-term debt	134,053	135,358	460	138,318	139,657	141,091	143,020	725	706	177,650	179,395	180,965
Other long-term liabilities	60,689	63,702	62,457	63,922	70,413	68,190	69,976	64,473	68,975	64,763	56,503	60,719
Total long-term liabilities	194,742	199,060	62,917	202,240	210,070	209,282	212,996	65,198	69,682	242,413	235,899	241,685
Total liabilities	357,946	395,226	405,989	384,472	405,231	439,512	458,580	473,885	440,610	656,268	647,459	480,594
Total equity	374,202	378,152	376,896	388,824	397,454	378,379	383,269	339,351	355,250	365,458	382,127	378,030
Total liabilities & equity	732,148	773,378	782,885	773,297	802,685	817,891	841,849	813,236	795,860	1,021,726	1,029,587	858,624

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
	Apr. 2, 2010	Mar. 27, 2009	Apr. 2, 2010	Mar. 27, 2009
Net sales:
Physician Business	$ 344.0	$ 327.0	$ 1,437.8	$ 1,357.4
Elder Care Business	152.2	142.7	614.9	594.5
Corporate Shared Services	0.7	-	2.4	0.8
Total net sales	$ 496.9	$ 469.7	$ 2,055.2	$ 1,952.7
Income from operations:
Physician Business	$ 30.5	$ 29.3	$ 137.3	$ 109.8
Elder Care Business	9.4	7.6	38.0	30.1
Corporate Shared Services	(11.2)	(10.1)	(54.3)	(39.0)
Total income from operations	$ 28.7	$ 26.8	$ 121.0	$ 100.9
EBITDA (a)	$ 36.9	$ 33.9	$ 154.1	$ 129.1
Income from operations, as a percentage of net sales	5.8%	5.7%	5.9%	5.2%
Consolidated Return on Committed Capital ("ROCC") (b)	30.7%	28.6%	33.5%	27.6%
Billing Days	65	60	258	253
Net Sales Per Billing Day (in thousands):
Physician Business	$ 5,293	$ 5,449	$ 5,573	$ 5,365
Elder Care Business	2,341	2,379	2,383	2,350
Corporate Shared Services	10	-	9	3
Total Net Sales Per Billing Day	$ 7,644	$ 7,829	$ 7,966	$ 7,718
Net Sales Per Billing Day Growth Rate:
Physician Business	-2.9%		3.9%
Elder Care Business	-1.6%		1.4%
Total Net Sales Per Billing Day Growth Rate	-2.4%		3.2%
			Annualized
			Apr. 2, 2010	Mar. 27, 2009
DSO (c)
Physician Business			38.3	40.3
Elder Care Business			48.4	49.3
DOH (d)
Physician Business			53.6	55.1
Elder Care Business			54.4	51.9
DIP (e)
Physician Business			37.3	39.9
Elder Care Business			22.6	24.1
Cash Conversion Days (f)
Physician Business			54.6	55.5
Elder Care Business			80.2	77.1
			As of
			Apr. 2, 2010	Mar. 27, 2009
Operational working capital (g)			$ 322.8	$ 310.7
Net debt:
Bank debt			$ -	$ 50.0
Other debt			$ 1.7	$ 2.7
Convertible senior notes			$ 187.1	$ 179.2
Less: Cash and cash equivalents			$ (52.8)	$ (82.0)
Net debt			$ 136.1	$ 149.9

Numbers may not foot due to rounding differences

PSS WORLD MEDICAL, INC.
Non GAAP Reconciliations
Net income impact of swine flu related product sales
(in millions, except per share data)
	Three Months Ended		Twelve Months Ended
	Apr. 2, 2010	Diluted EPS	Apr. 2, 2010	Diluted EPS
Net income	$16.5	$0.28	$69.4	$1.18
Less: Impact on pre-tax income from swine flu related product sales	-		(7.7)
Tax impact on swine flu related product sales	-		3.0
Net income adjusted for swine flu related product sales	$16.5	$0.28	$64.6	$1.10
Net income impact of sale of securities
(in millions, except per share data)
	Three Months Ended		Twelve Months Ended
	Apr. 2, 2010	Diluted EPS	Apr. 2, 2010	Diluted EPS
Net income	$16.5	$0.28	$69.4	$1.18
Less: Gain on sale of securities	-		(3.6)
Tax impact on sales of securities	-		1.4
Net income adjusted for the sale of securities	$16.5	$0.28	$67.1	$1.14
Diluted EPS impact of five additional selling days
	Twelve Months Ended
	Apr. 2, 2010
Diluted EPS	$1.18
Less: Impact of additional selling days	(0.02)
Diluted EPS adjusted for additional selling days(1)	$1.16

(1)   The diluted EPS impact of additional selling days equates to $0.022 and would adjust actual diluted EPS to $1.15 upon rounding. The tax impact of the additional selling days is $0.014.

Numbers may not foot due to rounding differences

PSS WORLD MEDICAL, INC.
Non GAAP Reconciliations
Net income impact of additional long-term incentive compensation above planned expectations
(in millions, except per share data)
	Twelve Months Ended
	Apr. 2, 2010	Diluted EPS
Net income	$69.4	$1.18
Add back: Impact on pre-tax income from additional cash based long-term incentive compensation above planned expectations	2.0
Add back: Impact on pre-tax income from additional stock based long-term incentive compensation above planned expectations	4.7
Tax impact on additional long-term incentive compensation above planned expectations	(2.6)
Net income adjusted for additional long-term incentive compensation above planned expectations	$73.5	$1.25
Net income impact of ASC 470-20 (Formerly FSP APB 14-1)
(in millions, except per share data)
	Three Months Ended		Three Months Ended
	Apr. 2, 2010	Diluted EPS	Mar. 27, 2009	Diluted EPS
Net Income	$16.5	$0.28	$13.8	$0.23
Add Back: Impact of ASC 470-20	2.0		3.0
Tax impact on ASC 470-20	(0.8)		(1.2)
Net income adjusted for the impact of ACS 470-20	$17.7	$0.30	$15.6	$0.26
	Twelve Months Ended		Twelve Months Ended
	Apr. 2, 2010	Diluted EPS	Mar. 27, 2009	Diluted EPS
Net Income	$69.4	$1.18	$51.5	$0.85
Add Back: Impact of ASC 470-20	7.4		10.5
Tax impact on ASC 470-20	(2.8)		(4.0)
Net income adjusted for the impact of ACS 470-20	$73.9	$1.25	$58.0	$0.96

Numbers may not foot due to rounding differences

PSS World Medical, Inc.

Selling Days Calendar FY09-FY11

	FY2009		FY2010		FY2011
	Closing	Selling	Closing	Selling	Closing	Selling
	Date	Days	Date	Days	Date	Days	Notes
Apr	25-Apr	20	24-Apr	20	30-Apr	20	A
May	30-May	24	29-May	24	28-May	20	A
Jun	27-Jun	20	26-Jun	20	2-Jul	24	B
Q1		64		64		64
Jul	25-Jul	19	31-Jul	24	30-Jul	19	A
Aug	29-Aug	25	28-Aug	20	27-Aug	20	A
Sep	26-Sep	19	2-Oct	24	1-Oct	24	B
Q2		63		68		63
Oct	31-Oct	25	30-Oct	20	29-Oct	20	A
Nov	28-Nov	18	27-Nov	18	26-Nov	18	A
Dec	2-Jan	23	1-Jan	23	31-Dec	23	B
Q3		66		61		61
Jan	30-Jan	20	29-Jan	20	28-Jan	20	A
Feb	27-Feb	20	26-Feb	20	25-Feb	20	A
Mar	27-Mar	20	2-Apr	25	1-Apr	25	B
Q4		60		65		65
Total		253		258		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).

PSS World Medical, Inc.

EBITDA Calculation

Current Fiscal Year

(in thousands)

	Fiscal 2010
	Q1		Q2		Q3		Q4		YTD
Net Income	$	13,304	$	21,686	$	17,921	$	16,452	$	69,363
Plus: Interest expense		4,261		4,532		4,214		4,288		17,295
Less: Interest and investment income		(134)		(95)		(117)		(30)		(376)
Plus: Provision for income taxes		8,213		12,964		10,736		8,854		40,768
Plus: Depreciation		5,245		5,256		5,558		5,881		21,940
Plus: Amortization of intangible assets		1,252		1,190		1,235		1,444		5,121
EBITDA	$	32,140	$	45,533	$	39,547	$	36,890	$	154,110

Numbers may not foot due to rounding differences

PSS World Medical, Inc.

EBITDA Calculation

(in thousands)

	Fiscal 2007					Fiscal 2008					Fiscal 2009
	Q1	Q2	Q3	Q4	Total FY 2007	Q1	Q2	Q3	Q4	Total FY 2008	Q1	Q2	Q3	Q4	Total FY 2009
Net income	$ 10,139	$ 11,951	$ 10,282	$ 14,777	$ 47,148	$ 7,792	$ 13,578	$ 13,249	$ 18,515	$ 53,133	$ 9,372	$ 12,363	$ 15,989	$ 13,763	$ 51,486
Plus: Interest expense	2,691	2,635	2,642	2,631	10,597	2,764	2,956	3,247	3,529	12,495	3,203	5,300	7,409	6,247	22,159
Less: Interest and investment income	(98)	(282)	(426)	(385)	(1,191)	(528)	(114)	(26)	(23)	(691)	(122)	(842)	(1,034)	(305)	(2,304)
Plus: Provision for income taxes	6,449	7,681	5,862	7,824	27,817	5,010	8,551	8,441	12,597	34,599	6,187	8,104	10,230	7,709	32,229
Plus: Depreciation	4,107	4,170	4,242	4,304	16,823	4,632	4,796	4,710	4,719	18,858	4,830	4,912	5,116	5,144	20,002
Plus: Amortization of intangible assets	1,500	1,477	1,469	1,462	5,908	1,458	1,406	1,362	1,360	5,586	1,344	1,553	1,264	1,328	5,489
EBITDA	$ 24,786	$ 27,632	$ 24,070	$ 30,613	$ 107,101	$ 21,128	$ 31,172	$ 30,983	$ 40,697	$ 123,980	$ 24,813	$ 31,390	$ 38,973	$ 33,886	$ 129,062

Numbers may not foot due to rounding differences

PSS World Medical, Inc.

Return on Committed Capital (ROCC)

Current Fiscal Year

(in thousands)

Consolidated

	Fiscal 2010
		Q1		Q2		Q3		Q4		FY 2010
Quarterly Average Committed Capital (1)	$	378,397	$	378,706	$	401,134	$	403,620
Annual Average Committed Capital									$	394,969
Committed Capital - Current Quarter		364,619		392,792		409,475		397,765		397,765
Committed Capital - Previous Quarter		392,174		364,619		392,792		409,475		409,475
Committed Capital - Previous Year End										392,174
Return on Committed Capital - Quarterly (2)		28.4%		42.5%		33.9%		30.7%
Return on Committed Capital - Annual										33.5%
Return:
Net income		13,304		21,686		17,921		16,452		69,363
Add:
Provision for income taxes		8,213		12,964		10,736		8,854		40,768
Interest expense		4,261		4,532		4,214		4,288		17,295
Amortization		1,252		1,190		1,235		1,444		5,121
Interest and investment income		(134)		(95)		(117)		(30)		(376)
	$	26,895	$	40,277	$	33,989	$	31,009	$	132,170
Committed Capital:
Total assets	$	894,131	$	953,528	$	955,170	$	872,065	$	872,065
Less assets excluded:
Cash		(129,631)		(130,089)		(114,056)		(52,751)		(52,751)
Goodwill and intangibles, net		(136,696)		(136,884)		(146,117)		(146,320)		(146,320)
Total liabilities		(496,792)		(529,263)		(527,996)		(464,052)		(464,052)
Plus liabilities excluded:
Current debt		50,953		50,970		56,321		881		881
Long-term debt		182,654		184,530		186,153		187,941		187,941
	$	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)   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)

Consolidated

	Fiscal 2007					Fiscal 2008					Fiscal 2009
	Q1	Q2	Q3	Q4	Total FY 2007	Q1	Q2	Q3	Q4	Total FY 2008	Q1	Q2	Q3	Q4	Total FY 2009
Quarterly Average Committed Capital (1)	332,763	334,894	326,477	334,112		359,807	384,428	400,611	401,541		390,439	381,257	394,469	401,387
Annual Average Committed Capital (2)					335,832					371,150					394,438
Committed Capital - Current Quarter	339,461	330,327	322,628	345,597		374,016	394,840	406,381	396,702		384,175	378,339	410,600	392,174
Committed Capital - Previous Quarter	326,066	339,461	330,327	322,628		345,597	374,016	394,840	406,381		396,702	384,175	378,339	410,600
Committed Capital - Current Year End					345,597					396,702					392,174
Committed Capital - Previous Year End					326,066					345,597					396,702
Return on Committed Capital - Quarterly (3)	24.9%	28.0%	24.3%	31.5%	26.9%	18.3%	27.4%	26.2%	35.8%	28.3%	20.5%	27.8%	34.3%	28.6%	27.6%
Return on Committed Capital - Annual
Return:
Income from continuing operations before extraordinary loss	10,139	11,951	10,282	14,777	47,148	7,792	13,578	13,249	18,515	53,133	9,372	12,363	15,989	13,763	51,486
Add:
Provision for income taxes	6,449	7,681	5,862	7,824	27,817	5,010	8,551	8,441	12,597	34,599	6,187	8,104	10,230	7,709	32,229
Interest expense	2,688	2,635	2,642	2,631	10,595	2,764	2,956	3,247	3,529	12,495	3,203	5,300	7,409	6,247	22,159
Amortization	1,500	1,477	1,469	1,462	5,908	1,458	1,406	1,362	1,360	5,586	1,344	1,553	1,264	1,328	5,489
Interest and investment income	(98)	(282)	(426)	(385)	(1,191)	(528)	(114)	(26)	(23)	(691)	(122)	(842)	(1,034)	(305)	(2,304)
	20,677	23,462	19,828	26,309	90,277	16,496	26,377	26,273	35,978	105,123	19,983	26,478	33,856	28,742	109,059
Committed Capital:
Total assets	732,148	773,377	782,885	773,297	773,297	802,685	817,891	841,849	813,236	813,236	795,860	1,021,726	1,029,586	858,624	858,624
Less assets excluded:
Cash	(27,784)	(45,676)	(54,904)	(46,658)	(46,658)	(23,954)	(17,041)	(15,031)	(21,122)	(21,122)	(29,840)	(226,055)	(214,709)	(82,031)	(82,031)
Goodwill and intangibles, net	(139,869)	(139,162)	(138,158)	(137,124)	(137,124)	(141,273)	(139,718)	(138,537)	(136,984)	(136,984)	(138,058)	(136,736)	(135,820)	(135,726)	(135,726)
DTA from sale of imaging business	(1,658)	(0)	(0)	(0)	(0)	(0)	(0)	(0)	(0)	(0)	(0)	(0)	(0)	(0)	(0)
Total liabilities	(357,946)	(395,226)	(405,989)	(384,472)	(384,472)	(405,231)	(439,512)	(458,580)	(473,885)	(473,885)	(440,610)	(656,268)	(647,459)	(480,594)	(480,594)
Plus liabilities excluded:
Current debt	517	1,655	138,334	2,238	2,238	2,132	32,129	33,660	214,732	214,732	196,116	198,022	199,606	50,937	50,937
Long-term debt	134,053	135,358	460	138,318	138,318	139,657	141,091	143,020	725	725	706	177,650	179,395	180,965	180,965
	339,461	330,327	322,628	345,597	345,597	374,016	394,840	406,381	396,702	396,702	384,175	378,339	410,600	392,174	392,174

(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)   “Swine flu 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.

EX-99.1

N        E        W        S                          R        E        L        E        A        S        E

Contacts:

For investors:	Robert C. Weiner	For media:	Brian C. Kosoy
	Vice President, Investor Relations		Senior Associate, Public Relations
	904-332-3287		904-332-4175

PSS WORLD MEDICAL REPORTS RESULTS FOR

FISCAL YEAR 2010 FOURTH QUARTER

GAAP EPS Increased by 38.7% in Fiscal Year 2010

Announces FY2011 GAAP EPS Goal of $1.27 – $1.31 Per Diluted Share

Fiscal Year 2010 Highlights:

·   Consolidated same day sales growth of 3.2% (5.2% total net sales growth)

o   Physician Business same day sales growth of 3.9% (5.9% total net sales growth)

o   Elder Care Business same day sales growth of 1.4% (3.4% total net sales growth)

·   Consolidated operating margin growth of 72 basis points to 5.9%

o   Physician Business operating margin of 9.5%

o   Elder Care Business operating margin of 6.2%

·   Consolidated earnings per diluted share growth of 38.7% to $1.18

·   Consolidated operating income growth of 19.9%

·   Consolidated cash flow from operations of $102.4 million

·   Consolidated return on committed capital of 33.5%

·   Repurchased approximately 2.8 million common shares at an average price of $20.66

Fourth Quarter Highlights:

·   Consolidated same day sales decline of 2.4% (5.8% total net sales growth)

o   Physician Business same day sales decline of 2.9% (5.2% total net sales growth)

o   Elder Care Business same day sales decline of 1.6% (6.6% total net sales growth)

·   Consolidated earnings per diluted share growth of 23.0% to $0.28

·   Consolidated cash flow from operations of $34.7 million

·   Repurchased approximately 1.8 million common shares at an average price of $20.70

Jacksonville, Florida (May 12, 2010) – PSS World Medical, Inc. (NasdaqGS: PSSI) announced today its results for the fiscal 2010 fourth quarter ended April 2, 2010.

PSSI Reports Results For Fiscal 2010 Fourth Quarter

Page 2

May 12, 2010

Gary A. Corless, President and Chief Executive Officer, commented, “Our team’s successful execution of the Company’s key strategies drove 38.7% earnings per share growth, generated strong operating cash flow in excess of $100 million, and resulted in a 72 basis point increase in operating margin for the year.  We are proud of our team’s accomplishments, especially with lower provider utilization levels throughout the year, the effects of a lighter flu season, and unseasonably strong winter weather during the fourth quarter.  We benefited from H1N1-related product sales and five additional selling days this year while the economic environment remained challenged by slowing growth, rising unemployment, and tight liquidity.

“We are excited about the opportunities for continued growth in fiscal year 2011 and begin the year with an initial earnings per share goal of $1.27 - $1.31 per diluted share.  At our annual Investor Day on May 27, we will provide detail on strategies and key initiatives, as well as financial metrics, for each of our businesses.”

Net sales for the three months ended April, 2, 2010, were $496.9 million, a increase of 5.8%, with a 2.4% same day sales decline, compared with net sales of $469.7 million for the three months ended March 27, 2009.  Net sales for the three months ended April 2, 2010, for the Physician Business increased by 5.2% with a same day sales decline of 2.9%, and increased by 6.6% with a same day sales decline of 1.6% for the Elder Care Business.  Income from operations for the three months ended April 2, 2010, was $28.7 million compared with income from operations for the three months ended March 27, 2009, of $26.8 million.  Net income for the three months ended April 2, 2010, was $16.5 million, or $0.28 per diluted share, compared with net income for the three months ended March 27, 2009, of $13.8 million, o r $0.23 per diluted share.  The Company noted that it had five more sales days (65 sales days) in the fourth quarter of fiscal year 2010 ended April 2, 2010, compared with the number of sales days (60 sales days) in the fourth quarter of fiscal year 2009 ended March 27, 2009.

Net sales for the twelve months ended April 2, 2010, were $2,055.2 million, an increase of 5.2% with same day sales growth of 3.2%, compared with net sales of $1,952.7 million for the twelve months ended March 27, 2009.  Net sales for the twelve months ended April 2, 2010, for the Physician Business increased by 5.9% with same day sales growth of 3.9%, and increased by 3.4% with same day sales growth of 1.4% for the Elder Care Business.  Income from operations for the twelve months ended April 2, 2010, was $121.0 million compared with income from operations for the twelve months ended March 27, 2009, of $100.9 million.  Net income for the twelve months ended April 2, 2010, increased by 34.7% to $69.4 million, or an increase of 38.7%, to $1.18 earnings per diluted share, compared with net income for t he twelve months ended March 27, 2009, of $51.5 million, or $0.85 earnings per diluted share.  The number of sales days for each of the twelve-month periods for fiscal years 2010 and 2009 were 258 sales days and 253 sales days, respectively.

David M. Bronson, Executive Vice President and Chief Financial Officer, commented, “The combination of the right business strategies and excellent execution by everyone on our team resulted in a solid quarter and a standout year.  These strategies – reaching new customers, strengthening existing customers, expanding margins with a high-quality and cost-effective product offering, and adopting a LEAN way of life in our operations – will continue to be our focus going into fiscal year 2011.

PSSI Reports Results For Fiscal 2010 Fourth Quarter

Page 3

May 12, 2010

“The Company’s balance sheet has never been stronger.  Our return on capital reached record highs this past fiscal year, with return on committed capital at 33.5% for the full year.  We have more than adequate resources to both execute our business initiatives and take advantage of new opportunities.”

A listen-only simulcast as well as a 90-day online replay of PSS World Medical’s fiscal year 2010 fourth quarter conference call can be found in the Investor Relations/Financial Information sections of the Company’s websites, www.pssworldmedical.com or www.pssd.com, respectively, under the heading “Events and Presentations,” or at www.opencompany.info on May 13, 2010, beginning at 8:30 a.m. Eastern time.

The Company has today filed with the SEC a Form 8-K that includes a copy of this press release and its related Fiscal Year 2010 Fourth Quarter Financial Workbook, which contains GAAP and non-GAAP financial measures, and is available on the Company’s website, www.pssworldmedical.com.  Additional financial information pertaining to PSS World Medical financial results may be found by visiting the Investor Relations/Financial Information sections of the Company’s websites, www.pssworldmedical.com or www.pssd.com, respectively, under the heading “Events and Presentations.”  If you should need assistance a ccessing the information, please call Investor Relations at 904-332-3000.

PSS World Medical, Inc. is a national distributor of medical products to physicians and elder care providers through its two business units.  Since its inception in 1983, PSS has become a leader in the two market segments that it serves with a focused market approach to customer services, a consultative sales force, strategic acquisitions, strong arrangements with product manufacturers and a unique culture of performance.

Certain statements in this release are "forward-looking statements" made pursuant to the Private Securities Litigation Reform Act of 1995 and other federal securities laws.  These forward-looking statements are identified by the use of words such as "expect," "may," "will," "should," "believe," "plan," "anticipate," and "estimate" among others.  These statements involve a number of risks and uncertainties, many of which are outside the control of the Company.  Actual results may differ materially from those identified in the forward-looking statements.  Among the factors that could cause results to differ materially are the following: fluctuating demand for our products and services; national and global economic conditions, including our and our customers' ability to obtain f inancing; the introduction of new products and services offered by us and our competitors; uncertainty of the impact of the presidential administration's health care policies and recently enacted healthcare reform legislation; proper functioning of our data processing and information technology systems; our ability to successfully execute our global sourcing strategy; pricing pressures on large national and regional accounts and GPOs; customer credit quality and our ability to collect our accounts receivable, particularly in states with significant budget deficits; our ability to compete with other medical supply companies and direct manufacturers; multi-tiered cost structures where certain institutions can obtain more favorable prices for medical products than us; our ability to maintain relationships with our suppliers and customers; our ability to retain sales reps and key management; our ability to execute our growth strategy; increased operating costs, including fuel prices; risks involved in maintainin g a large amount of inventory; our indebtedness may limit our ability to obtain additional financing or react to market conditions; we face litigation and product liability exposure; weather-related events such as hurricanes may disrupt our and our customers' business; we may be deemed to infringe other persons intellectual property; our business is subject to numerous federal, state and foreign laws and regulations, including state pedigree laws and regulations and the increased enforcement environment with respect to such laws and regulations; general business, competitive and economic factors and conditions; and other factors described from time to time in the Company's reports filed with the Securities and Exchange Commission.PSS assumes no obligation to update the information in this release except as otherwise required by law.  Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof.

PSSI Reports Results For Fiscal 2010 Fourth Quarter

Page 4

May 12, 2010

PSS WORLD MEDICAL, INC.

Unaudited Consolidated Statement of Operations

(in millions, except per share and share data)

	Three Months Ended						Twelve Months Ended
	Apr. 2,			March 27,			Apr. 2,			March 27,
	2010			2009			2010			2009
Net sales	$	496.9		$	469.7		$	2,055.2		$	1,952.7
Cost of goods sold		342.5			328.8			1,427.5			1,370.8
Gross profit		154.4			140.9			627.7			581.9
General and administrative expenses		92.6			82.7			370.9			352.5
Selling expenses		33.1			31.4			135.8			128.5
Income from operations		28.7			26.8			121.0			100.9
Other (expense) income:
Interest expense		(4.3	)		(6.2	)		(17.3	)		(22.2	)
Interest income		-			0.3			0.4			2.3
Other income		0.9			0.6			6.0			2.7
		(3.4	)		(5.3	)		(10.9	)		(17.2	)
Income before provision for income taxes		25.3			21.5			110.1			83.7
Provision for income taxes		8.8			7.7			40.7			32.2
Net income	$	16.5		$	13.8		$	69.4		$	51.5
Earnings per share – basic	$	0.29		$	0.23		$	1.20		$	0.86
Earnings per share – diluted	$	0.28		$	0.23		$	1.18		$	0.85
Weighted average shares (in thousands):
Basic		56,627			59,307			58,029			59,937
Diluted		58,115			59,801			58,943			60,696

PSSI Reports Results For Fiscal 2010 Fourth Quarter

Page 5

May 12, 2010

PSS World Medical, Inc.

Unaudited Consolidated Balance Sheets

(in millions except share data)

	April 2,			March 27,
	2010			2009
ASSETS
Current Assets:
Cash and cash equivalents		$	52.8		$	82.0
Investment in available for sale securities			-			10.6
Accounts receivable, net			227.9			230.4
Inventories			218.9			207.6
Deferred tax assets, net			15.6			8.1
Prepaid expenses and other			26.5			23.8
Total current assets			541.7			562.5
Property and equipment, net			105.2			101.2
Other Assets:
Goodwill			121.8			112.8
Intangibles, net			24.5			23.0
Other			78.9			59.1
Total assets		$	872.1		$	858.6
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable		$	124.0		$	127.3
Accrued expenses			50.3			52.7
Revolving line of credit and current portion of long-term debt			0.9			50.9
Other			10.9			8.0
Total current liabilities			186.1			238.9
Long-term debt, excluding current portion			187.9			181.0
Other noncurrent liabilities			90.1			60.7
Total liabilities			464.1			480.6
Shareholders’ Equity:
Preferred stock, $0.01 par value; 1,000,000 shares authorized,
no shares issued and outstanding			-			-
Common stock, $0.01 par value; 150,000,000 shares authorized,
57,168,296 and 59,316,697 shares issued and outstanding
at April 2, 2010 and March 27, 2009, respectively			0.6			0.6
Additional paid-in capital			162.5			200.2
Retained earnings			244.9			175.6
Accumulated other comprehensive income			-			1.6
Total shareholders’ equity			408.0			378.0
Total liabilities and shareholders’ equity		$	872.1		$	858.6

PSSI Reports Results For Fiscal 2010 Fourth Quarter

Page 6

May 12, 2010

PSS WORLD MEDICAL, INC.

Unaudited Consolidated Statements of Cash Flows

(in millions)

	Three Months Ended						Twelve Months Ended
	April 2,			March 27,			April 2,			March 27,
	2010			2009			2010			2009
Cash Flows From Operating Activities:
Net income	$	16.5		$	13.8		$	69.4		$	51.5
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation		5.9			5.1			21.9			20.0
(Benefit) provision for deferred income taxes		(3.7	)		8.6			(8.3	)		5.9
Noncash compensation expense		(1.1	)		1.7			12.8			6.7
Amortization of intangible assets		1.4			1.3			5.1			5.5
Provision for doubtful accounts		0.4			0.2			3.8			3.7
Provision for deferred compensation		0.3			0.4			1.5			1.2
Amortization of debt discount and issuance costs		2.3			3.6			8.9			12.6
(Gain) loss on sales of property and equipment		-			(0.1	)		0.1			-
Gain on sale of available for sale securities		-			-			(3.6	)		(0.4	)
Changes in operating assets and liabilities,
net of effects from business combinations:
Accounts receivable, net		5.3			2.3			0.2			3.9
Inventories		11.8			32.3			(9.7	)		(16.4	)
Prepaid expenses and other current assets		38.7			(4.2	)		(5.8	)		2.5
Other assets		0.8			(2.8	)		(4.7	)		(9.4	)
Accounts payable		(13.8	)		(27.8	)		(5.1	)		(9.2	)
Accrued expenses and other liabilities		(30.1	)		10.0			15.9			12.0
Net cash provided by operating activities		34.7			44.4			102.4			90.1
Cash Flows From Investing Activities:
Capital expenditures		(4.3	)		(9.2	)		(25.9	)		(27.3	)
Payments for business acquisitions,    net of cash acquired		(0.9	)		(0.7	)		(14.8	)		(3.7	)
Proceeds from sale of available for sale securities		-			-			10.7			22.1
Other		(0.5	)		(0.1	)		(0.5	)		(0.3	)
Net cash used in investing activities		(5.7	)		(10.0	)		(30.5	)		(9.2	)
Cash Flows From Financing Activities:
Purchase of common stock		(37.8	)		(17.1	)		(57.2	)		(52.8	)
Net payments on the revolving line of credit		(55.4	)		-			(50.0	)		(20.0	)
Proceeds from exercise of stock options		1.9			0.2			4.5			6.2
Excess tax benefits from share-based    compensation arrangements		1.2			-			2.5			1.7
Payments under capital lease obligations		(0.2	)		(0.2	)		(0.9	)		(1.3	)
Proceeds from issuance of convertible debt		-			-			-			230.0
Payment for extinguishment of convertible notes		-			(150.0	)		-			(150.0	)
Payment for purchase of hedge on convertible note		-			-			-			(54.1	)
Proceeds from issuance of warrants		-			-			-			25.4
Payment for debt issue costs		-			-			-			(5.1	)
Net cash used in financing activities		(90.3	)		(167.1	)		(101.1	)		(20.0	)
Net (decrease) increase in cash and cash equivalents		(61.3	)		(132.7	)		(29.2	)		60.9
Cash and cash equivalents, beginning of period		114.1			214.7			82.0			21.1
Cash and cash equivalents, end of period	$	52.8		$	82.0		$	52.8		$	82.0