EX-99.2 3 financialsupplement.htm FINANCIAL SUPPLEMENT financialsupplement.htm

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Financial Supplement
 
For the First Quarter of Fiscal Year 2011 ending July 2, 2010
 
 
 
 
 
PSS World Medical, Inc.
As of July 2, 2010
Current Fiscal Year
(in thousands, except per share data)

 
  
Fiscal 2011
  
 
     Q1  
 
        
Net sales
   $ 478,856  
Cost of goods sold
     331,010  
  Gross profit
     147,846  
General & administrative expenses
     89,986  
Selling expenses
     32,610  
  Income from operations
     25,250  
Interest expense
     (4,137 )
Interest & investment income
     66  
Other income
     544  
Income from operations before income taxes
     21,723  
Provision for income taxes
     7,892  
Net income
     13,831  
Net income attributable to noncontrolling interest
     78  
      Net income attributable to PSS World Medical, Inc.
   $ 13,753  
 
        
Earnings per share - Basic:
        
Net income attributable to PSS World Medical, Inc.
   $ 0.25  
 
        
Earnings per share - Diluted:
        
Net income attributable to PSS World Medical, Inc.
   $ 0.24  
 
        
WASO - Basic
     56,093  
WASO - Diluted
     57,924  
 
        
Net sales by segment:
        
Physician Business
   $ 327,403  
Elder Care Business
     151,202  
Corporate Shared Services
     251  
 
   $ 478,856  
 
        
Billing days:
     64  
 
        
Net sales per billing day:
        
Physician Business
   $ 5,116  
Elder Care Business
     2,363  
Corporate Shared Services
     4  
 
   $ 7,482  
 
Numbers may not foot due to rounding differences
 
 
 
PSS World Medical, Inc.
As of July 2, 2010
(in thousands, except per share data)

 
Fiscal 2008
  
Fiscal 2009
  
Fiscal 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 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 July 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 July 2, 2010
(in thousands)

 
  
Three Months Ended
  
 
  
July 2, 2010
    
June 26, 2009
  
 
  
 
    
 
  
NET SALES:
  
 
    
 
  
Physician Business
   $ 327,403     $ 342,292  
Elder Care Business
     151,202       150,381  
Corporate Shared Services
     251       882  
          Total net sales
   $ 478,856     $ 493,554  
 
                
BILLING DAYS:
     64       64  
 
                
NET SALES PER BILLING DAY:
                
Physician Business
   $ 5,116     $ 5,348  
Elder Care Business
     2,363       2,350  
Corporate Shared Services
     4       14  
          Total net sales per billing day
   $ 7,482     $ 7,712  
 
                
INCOME FROM OPERATIONS:
                
Physician Business
   $ 27,622     $ 28,718  
Elder Care Business
     7,929       7,124  
Corporate Shared Services
     (10,301 )     (14,193 )
          Total income from operations
   $ 25,250     $ 21,649  
 
                
DEPRECIATION:
                
Physician Business
   $ 2,178     $ 1,949  
Elder Care Business
     1,217       1,262  
Corporate Shared Services
     2,547       2,034  
          Total depreciation
   $ 5,942     $ 5,245  
 
                
AMORTIZATION OF INTANGIBLE
                
AND OTHER ASSETS:
                
Physician Business
   $ 552     $ 618  
Elder Care Business
     743       532  
Corporate Shared Services
     149       102  
          Total amortization of intangible and other assets
   $ 1,444     $ 1,252  
 
                
PROVISION FOR DOUBTFUL ACCOUNTS:
                
Physician Business
   $ 232     $ 439  
Elder Care Business
     (38 )     771  
          Total provision for doubtful accounts
   $ 194     $ 1,211  
 
                
INTEREST EXPENSE:
                
          Total interest expense
   $ 4,137     $ 4,261  
 
                
INTEREST AND INVESTMENT INCOME:
                
Elder Care Business
   $ 26     $ 14  
Corporate Shared Services
     39       120  
          Total interest and investment income
   $ 66     $ 134  
 
                
PROVISION (BENEFIT) FOR INCOME TAXES:
                
Physician Business
   $ 10,044     $ 10,626  
Elder Care Business
     2,214       1,965  
Corporate Shared Services
     (4,366 )     (4,378 )
          Total provision for income taxes
   $ 7,892     $ 8,213  
 
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
  
 
  
 
  
Cash
   $ 59,081  
Accounts receivable, net
     222,544  
Inventory, net
     217,500  
Prepaid expenses
     6,258  
Other current assets
     36,596  
Total current assets
     541,979  
 
        
Property and equipment, net
     103,737  
Goodwill
     124,281  
Intangibles, net
     25,242  
Other long-term assets
     77,488  
 
        
Total assets
   $ 872,727  
 
        
LIABILITIES & EQUITY
        
 
        
Accounts payable
   $ 125,155  
Accrued expenses
     37,830  
Current portion of long-term debt
     796  
Revolving line of credit
     394  
Other
     25,576  
Total current liabilities
     189,751  
 
        
Long-term debt
     189,746  
Other non-current liabilities
     77,748  
 
        
Total liabilities
     457,245  
 
        
Total PSS World Medical, Inc. shareholders' equity
     412,344  
Noncontrolling interest
     3,138  
Total equity
     415,482  
 
        
Total liabilities and equity
   $ 872,727  
 
Numbers may not foot due to rounding differences
 
PSS World Medical, Inc.
Balance Sheet Trend
(in thousands)

Consolidated

 
Fiscal 2008
  
Fiscal 2009
  
Fiscal 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 2008
  
Fiscal 2009
  
Fiscal 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 long-term liabilities
   210,070     209,282     212,996     65,198     69,682     242,413     235,899     241,685     252,977     264,426     272,827     277,994  
 
                                                                        
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     397,339     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
  
 
  
July 2, 2010
    
June 26, 2009
  
 
  
 
    
 
  
Net sales:
  
 
    
 
  
     Physician Business
   $ 327.4     $ 342.3  
     Elder Care Business
     151.2       150.4  
     Corporate Shared Services
     0.3       0.9  
          Total net sales
   $ 478.9     $ 493.6  
 
                
Income from operations:
                
     Physician Business
   $ 27.6     $ 28.7  
     Elder Care Business
     7.9       7.1  
     Corporate Shared Services
     (10.3 )     (14.2 )
          Total income from operations
   $ 25.3     $ 21.6  
 
                
EBITDA (a)
   $ 33.2     $ 32.1  
 
                
Income from operations, as a percentage of net sales
     5.3 %     4.4 %
 
                
Consolidated Return on Committed Capital ("ROCC") (b)
     27.4 %     28.4 %
 
                
Billing Days
     64       64  
 
                
Net Sales Per Billing Day (in thousands):
                
     Physician Business
   $ 5,116     $ 5,348  
     Elder Care Business
     2,363       2,350  
     Corporate Shared Services
     4       14  
          Total Net Sales Per Billing Day
   $ 7,482     $ 7,712  
 
                
Net Sales Per Billing Day Growth Rate:
                
     Physician Business
     (4.3 )%        
     Elder Care Business
     0.5 %        
          Total Net Sales Per Billing Day Growth Rate
     (3.0 )%        
 
                
 
  
Annualized
  
 
  
July 2, 2010
    
June 26, 2009
  
DSO (c)
                
     Physician Business
     38.2       39.1  
     Elder Care Business
     48.3       49.7  
DOH (d)
                
     Physician Business
     54.3       54.7  
     Elder Care Business
     56.4       52.0  
DIP (e)
                
     Physician Business
     37.9       39.8  
     Elder Care Business
     22.6       23.3  
Cash Conversion Days (f)
                
     Physician Business
     54.7       54.0  
     Elder Care Business
     82.1       78.4  
 
                
 
  
As of
  
 
  
July 2, 2010
    
June 26, 2009
  
Operational working capital (g)
   $ 314.9     $ 292.8  
 
                
Net debt:
                
Convertible senior notes
   $ 189.2     $ 181.1  
Bank debt
     0.4       50.0  
Other debt
     1.4       2.5  
Less: Cash and cash equivalents
     (59.1 )     (129.6 )
Net debt
   $ 131.8     $ 104.0  
 
 
Numbers may not foot due to rounding differences
 
 
 
 
PSS WORLD MEDICAL, INC.
  
Non-GAAP Reconciliations
  
   
 
    
 
    
 
  
   
 
    
 
    
 
  
Net sales impact of swine flu related product sales
  
(in millions)
  
   
 
    
 
    
 
  
   
Three Months Ended
    
Percent
  
Physician Business:
  
July 2, 2010
    
June 26, 2009
    
Change
  
Net sales
   $ 327.4     $ 342.3       (4.4 )%
Less: Impact on net sales from swine flu related product sales
     -       (9.0 )        
Net income adjusted for swine flu related product sales
   $ 327.4     $ 333.3       (1.8 )%
                         
                         
   
Three Months Ended
    
Percent
  
Consolidated:
  
July 2, 2010
    
June 26, 2009
    
Change
  
Net sales
   $ 478.9     $ 493.6       (3.0 )%
Less: Impact on net sales from swine flu related product sales
     -       (9.0 )        
Net income adjusted for swine flu related product sales
   $ 478.9     $ 484.6       (1.2 )%
                         
 
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 2011
  
 
     Q1  
 
        
Net Income
   $ 13,831  
 
        
Plus: Interest expense
     4,137  
Less: Interest and investment income
     (66 )
Plus: Provision for income taxes
     7,892  
Plus: Depreciation
     5,942  
Plus: Amortization of intangible assets
     1,444  
EBITDA
   $ 33,179  
 
 
Numbers may not foot due to rounding differences
 
 
PSS World Medical, Inc.
EBITDA Calculation
(in thousands)

 
Fiscal 2008
Fiscal 2009
Fiscal 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 intangible 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 2011  
   
Q1
  
Consolidated Return on Committed Capital:        
Quarterly Average Committed Capital (1)
   $ 397,789  
         
Committed Capital - Current Quarter
     397,814  
Committed Capital - Previous Quarter
     397,765  
         
Return on Committed Capital - Quarterly (2)
     27.4 %
         
Return:
        
Net income
     13,831  
         
Add:
        
Provision for income taxes
     7,892  
Interest expense
     4,137  
Amortization
     1,444  
Interest and investment income
     (66 )
    $ 27,238  
         
Committed Capital:
        
Total assets
   $ 872,727  
Less assets excluded:
        
  Cash
     (59,081 )
  Goodwill and intangibles, net
     (149,523 )
         
Total liabilities
     (457,246 )
Plus liabilities excluded:
        
  Current debt
     1,190  
  Long-term debt
     189,746  
    $ 397,814  

(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 2008
Fiscal 2009
Fiscal 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%
28.3%
20.5%
27.8%
34.3%
28.6%
27.6%
28.4%
42.5%
33.9%
30.7%
33.5%
Return on Committed Capital - Annual
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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)
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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)  
“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.