Financial Supplement

For the First Quarter of Fiscal Year 2013 ending June 29, 2012

PSS World Medical, Inc.

As of June 29, 2012

Current Fiscal Year Unaudited Consolidated Income Statement

(in thousands, except per share data)

	2013
	Q1
Net sales	$	409,389
Cost of goods sold		273,101
Gross profit		136,288
General and administrative expenses		79,680
Selling expenses		35,353
Income from operations		21,255
Interest expense		(8,504	)
Interest income		14
Other income		479
Income from continuing operations before income taxes		13,244
Provision for income taxes		4,398
Income from continuing operations		8,846
Income from discontinued operations, net		1,883
Net income		10,729
Net loss attributable to noncontrolling interest		(15	)
Net income attributable to PSS World Medical, Inc.	$	10,744
Earnings per common share - Basic:
Continuing operations	$	0.18
Discontinued operations		0.04
Attributable to PSS World Medical, Inc.	$	0.22
Earnings per common share - Diluted:
Continuing operations	$	0.18
Discontinued operations		0.04
Attributable to PSS World Medical, Inc.	$	0.21
Weighted average common shares outstanding:
Basic		49,495
Diluted		50,263
Net sales by segment:
Physician (including Laboratory)	$	359,664
Dispensing		22,525
Home Care & Hospice		26,852
Shared Services		347
	$	409,389
Selling days:		64
Net sales per selling day:
Physician (including Laboratory)	$	5,620
Dispensing		352
Home Care & Hospice		420
Shared Services		5
	$	6,397

Numbers may not foot due to rounding differences

1

PSS World Medical, Inc.

As of June 29, 2012

Consolidated Income Statement Trend

(in thousands, except per share data)

	2012															2011
	Q1			Q2			Q3			Q4			Total			Total
Net sales	$	380,491		$	391,710		$	394,203		$	404,912		$	1,571,316		$	1,483,954
Cost of goods sold		257,817			261,784			263,122			267,936			1,050,658			1,006,588
Gross profit		122,674			129,926			131,081			136,976			520,658			477,366
General and administrative expenses		71,947			67,663			70,436			71,413			281,459			257,124
Selling expenses		30,761			32,219			32,707			34,938			130,625			119,705
Income from operations		19,966			30,044			27,938			30,625			108,574			100,537
Interest expense		(4,470	)		(4,611	)		(4,784	)		(6,075	)		(19,940	)		(16,900	)
Interest income		26			17			15			14			73			117
Other income		533			437			596			518			2,083			2,510
Income from continuing operations before income taxes		16,055			25,887			23,765			25,082			90,790			86,264
Provision for income taxes		5,899			9,539			7,943			8,109			31,491			31,759
Income from continuing operations		10,156			16,348			15,822			16,973			59,299			54,505
Income from discontinued operations, net		4,005			3,767			4,344			3,067			15,183			20,051
Net income		14,161			20,115			20,166			20,040			74,482			74,556
Net (loss) income attributable to noncontrolling interest		(28	)		84			34			74			163			71
Net income attributable to PSS World Medical, Inc.	$	14,189		$	20,031		$	20,132		$	19,966		$	74,319		$	74,485
Earnings per common share - Basic:
Continuing operations	$	0.19		$	0.31		$	0.31		$	0.34		$	1.14		$	0.99
Discontinued operations		0.07			0.07			0.08			0.06			0.29			0.36
Attributable to PSS World Medical, Inc.	$	0.26		$	0.38		$	0.39		$	0.40		$	1.43		$	1.35
Earnings per common share - Diluted:
Continuing operations	$	0.18		$	0.30		$	0.30		$	0.33		$	1.10		$	0.96
Discontinued operations		0.07			0.07			0.08			0.06			0.28			0.35
Attributable to PSS World Medical, Inc.	$	0.25		$	0.37		$	0.38		$	0.38		$	1.38		$	1.32
Weighted average common shares outstanding:
Basic		54,166			52,309			51,308			50,208			51,998			54,996
Diluted		57,388			53,956			52,435			52,178			53,989			56,546
Net sales by segment:
Physician (including Laboratory)	$	335,157		$	345,864		$	345,296		$	355,537		$	1,381,854		$	1,343,524
Dispensing		19,614			19,612			22,695			22,407			84,328			36,899
Home Care & Hospice		25,272			25,585			25,773			26,607			103,238			101,503
Shared Services		448			648			438			362			1,896			2,028
	$	380,491		$	391,710		$	394,203		$	404,912		$	1,571,316		$	1,483,954
Selling days:		64			63			62			64			253			253
Net sales per selling day:
Physician (including Laboratory)	$	5,237		$	5,490		$	5,569		$	5,555		$	5,462		$	5,310
Dispensing		306			311			366			350			333			146
Home Care & Hospice		395			406			416			416			408			401
Shared Services		7			10			7			6			7			8
	$	5,945		$	6,218		$	6,358		$	6,327		$	6,211		$	5,865

Numbers may not foot due to rounding differences

2

PSS World Medical, Inc.

As of June 29, 2012

Store Brands* - Net Sales from Continuing Operations

(in thousands)

	Fiscal Year
	2013		2012
	Q1		Q1		Q2		Q3		Q4		Total
Consolidated Store Brand Sales from continuing operations	$	66,383	$	60,056	$	63,086	$	63,131	$	66,675	$	252,948

*   Store brands (collectively known as “store brand” or “store brands”) are comprised of the Company’s Select Medical Products and other specialty brand products and services.

Numbers may not foot due to rounding differences

3

PSS World Medical, Inc.

As of June 29, 2012

Unaudited Segment Information from Continuing Operations

 (in thousands)

	Three Months Ended
	June 29,			July 01,
	2012			2011
NET SALES:
Physician (including Laboratory)	$	359,664		$	335,157
Dispensing		22,525			19,614
Home Care & Hospice		26,852			25,272
Shared Services		347			448
Total net sales	$	409,389		$	380,491
SELLING DAYS:		64			64
NET SALES PER SELLING DAY:
Physician (including Laboratory)	$	5,620		$	5,237
Dispensing		352			306
Home Care & Hospice		420			395
Shared Services		5			7
Total net sales per selling day	$	6,397		$	5,945
INCOME FROM OPERATIONS:
Physician (including Laboratory)	$	27,795		$	27,707
Dispensing		1,445			732
Home Care & Hospice		2,187			2,549
Shared Services		(10,171	)		(11,022	)
Total income from operations	$	21,255		$	19,966
DEPRECIATION:
Physician (including Laboratory)	$	2,339		$	2,254
Dispensing		438			375
Home Care & Hospice		3			3
Shared Services		2,692			2,488
Total depreciation	$	5,472		$	5,120
AMORTIZATION OF INTANGIBLE
AND OTHER ASSETS:
Physician (including Laboratory)	$	843		$	509
Dispensing		1,037			684
Home Care & Hospice		211			250
Shared Services		89			174
Total amortization of intangible and other assets	$	2,180		$	1,616
PROVISION FOR DOUBTFUL ACCOUNTS:
Physician (including Laboratory)	$	322		$	200
Dispensing		16			33
Home Care & Hospice		60			46
Total provision for doubtful accounts	$	398		$	279
INTEREST EXPENSE:
Total interest expense	$	(8,504	)	$	(4,470	)
INTEREST INCOME:
Physician (including Laboratory)	$	-		$	6
Home Care & Hospice		2			3
Shared Services		11			17
Total interest and investment income	$	14		$	26
PROVISION FOR INCOME TAXES:
Total provision for income taxes	$	4,398		$	5,899

Numbers may not foot due to rounding differences

4

PSS World Medical, Inc.

As of June 29, 2012

Current Fiscal Year Unaudited Consolidated Balance Sheets

(in thousands)

	As of
	June 29,
ASSETS	2012
Cash	$	107,414
Accounts receivable, net		192,042
Inventory, net		174,434
Deferred tax assets		15,719
Other current assets		36,322
Assets held for sale		280,029
Total current assets		805,960
Property and equipment, net		83,413
Goodwill		142,809
Intangibles, net		51,460
Other long-term assets		110,708
Total assets	$	1,194,350
LIABILITIES & EQUITY
Accounts payable	$	136,086
Accrued expenses		45,095
Other current liabilities		14,005
Liabilities held for sale		32,875
Total current liabilities		228,061
Revolving line of credit and long-term debt, excluding current portion		457,356
Other noncurrent liabilities		113,367
Total liabilities		798,784
Total PSS World Medical, Inc. shareholders' equity		392,095
Noncontrolling interest		3,471
Total equity		395,566
Total liabilities and equity	$	1,194,350

Numbers may not foot due to rounding differences

5

PSS World Medical, Inc.

As of June 29, 2012

Consolidated Balance Sheets Trend

(in thousands)

	As of								As of
	July 1,		September 30,		December 30,		March 30,		April 1,
ASSETS	2011		2011		2011		2012		2011
Cash	$	22,291	$	34,848	$	32,438	$	163,152	$	29,348
Accounts receivable, net		170,383		182,712		182,327		189,542		179,547
Inventory, net		158,254		160,587		185,058		147,198		150,590
Deferred tax assets		19,668		11,374		15,221		16,962		20,533
Other current assets		30,776		31,921		34,391		27,224		24,761
Assets held for sale		255,556		252,244		283,379		277,378		255,727
Total current assets		656,928		673,686		732,814		821,456		660,506
Property and equipment, net		80,360		80,200		80,474		80,151		81,843
Goodwill		85,892		92,464		98,143		109,457		85,601
Intangibles, net		28,344		29,193		28,080		33,546		29,662
Other long-term assets		95,176		89,237		99,936		111,360		94,060
Total assets	$	946,700	$	964,780	$	1,039,447	$	1,155,970	$	951,672
LIABILITIES & EQUITY
Accounts payable	$	118,755	$	123,873	$	133,093	$	118,719	$	107,166
Accrued expenses		36,448		36,505		39,150		37,436		32,691
Current portion of long term debt		551		363		182		-		729
Revolving line of credit(a)		20,500		50,000		-		-		-
Other current liabilities		17,219		19,170		13,972		8,015		28,713
Liabilities held for sale		36,429		37,193		38,887		37,640		30,886
Total current liabilities		229,902		267,104		225,284		201,810		200,185
Revolving line of credit and long-term debt, excluding current portion(a)		197,902		200,185		318,776		454,916		195,656
Other noncurrent liabilities		112,392		92,438		102,569		108,433		109,305
Total liabilities		540,196		559,727		646,629		765,159		505,146
Total PSS World Medical, Inc. shareholders' equity		402,948		401,403		389,170		387,128		442,926
Noncontrolling interest		3,556		3,650		3,648		3,683		3,600
Total equity		406,504		405,053		392,818		390,811		446,526
Total liabilities and equity	$	946,700	$	964,780	$	1,039,447	$	1,155,970	$	951,672

Numbers may not foot due to rounding differences

6

PSS World Medical, Inc.

As of June 29, 2012

Current Fiscal Year Unaudited Operating Highlights from Continuing Operations

 (in millions)

	Three Months Ended
	June 29,			July 1,
	2012			2011
Net sales:
Physician (including Laboratory)	$	359.7		$	335.2
Dispensing		22.5			19.6
Home Care & Hospice		26.9			25.3
Shared Services		0.3			0.4
Total net sales	$	409.4		$	380.5
Income from operations:
Physician (including Laboratory)	$	27.8		$	27.7
Dispensing		1.4			0.7
Home Care & Hospice		2.2			2.5
Shared Services		(10.2	)		(11.0	)
Total income from operations	$	21.3		$	20.0
EBITDA(b)	$	29.4		$	27.2
Income from operations, as a percentage of net sales		5.2	%		5.2	%
Consolidated Return on Committed Capital ("ROCC")(c)		31.7	%		34.1	%
Selling Days		64			64
Net Sales Per Selling Day (in thousands):
Physician (including Laboratory)	$	5,620		$	5,237
Dispensing		352			306
Home Care & Hospice		420			395
Shared Services		5			7
Total Net Sales Per Selling Day	$	6,397		$	5,945
Net Sales Per Selling Day Growth Rate:
Physician (including Laboratory)		7.3	%
Dispensing		14.8	%
Home Care & Hospice		6.3	%
Total Net Sales Per Selling Day Growth Rate		7.6	%

Numbers may not foot due to rounding differences

7

PSS World Medical, Inc.

As of June 29, 2012

Current Fiscal Year Unaudited Operating Highlights from Continuing Operations

 (in millions)

		Annualized
		June 29,		March 30,
		2012		2012
DSO(d)
	Physician (including Laboratory)		39.7		40.1
	Dispensing		66.7		65.5
	Home Care & Hospice		39.6		39.3
DOH(e)
	Physician (including Laboratory)		55.4		54.8
	Dispensing		36.4		34.9
	Home Care & Hospice		70.7		71.9
DIP(f)
	Physician (including Laboratory)		38.6		37.9
	Dispensing		21.7		26.6
	Home Care & Hospice		27.3		27.6
Cash Conversion Days(g)
	Physician (including Laboratory)		56.5		57.0
	Dispensing		81.4		73.8
	Home Care & Hospice		83.0		83.6
		As of
		June 29,		March 30,
		2012		2012
Operational working capital(h)		$	230.4	$	218.0
Net debt:
Revolving line of credit		$	-	$	-
Senior notes			250.0		250.0
Convertible senior notes			207.4		204.9
Less: Cash and cash equivalents			(107.4)		(163.2)
	Net debt	$	350.0	$	291.7

Numbers may not foot due to rounding differences

8

PSS World Medical, Inc.

June 29, 2012

Non-GAAP Reconciliations

 (in millions)

Net Sales from Continuing Operations Excluding Acquisitions
		Three Months Ended
		June 29,		July 01,		Percent
		2012		2011		Change
Net Sales from Continuing Operations		$	409.4	$	380.5	7.6%
Less: Impact of Acquisitions (i)
	2013 Acquisitions		11.2		-
Net Sales from Continuing Operations Adjusted for Acquisitions		$	398.2	$	380.5	4.6%
Net Sales from Physician (including Laboratory) Excluding Acquisitions
		Three Months Ended
		June 29,		July 01,		Percent
		2012		2011		Change
Net Sales from Physician (including Laboratory)		$	359.7	$	335.2	7.3%
Less: Impact of Acquisitions (i)
	2013 Acquisitions		9.0		-
Net Sales from Physician (including Laboratory) Adjusted for Acquisitions		$	350.7	$	335.2	4.6%
Selling And General & Administrative Expenses from Continuing Operations Excluding Acquisitions
		Three Months Ended
		June 29,		July 01,		Percent
		2012		2011		Change
Selling and General & Administrative Expenses from Continuing Operations		$	115.0	$	102.7	12.0%
Less: Impact of Acquisitions (i)
	2013 Acquisitions		2.9		-
Selling and General & Administrative Expenses from Continuing Operations Adjusted for Acquisitions		$	112.1	$	102.7	9.2%

Numbers may not foot due to rounding differences

9

PSS World Medical, Inc.

As of June 29, 2012

Selling Days Calendar FY12-FY14

FY2012		FY2013		FY2014
Closing	Selling	Closing	Selling	Closing	Selling
Date	Days	Date	Days	Date	Days	Notes
29-Apr	20	27-Apr	20	26-Apr	20	A
27-May	20	25-May	20	31-May	24	A
1-Jul	24	29-Jun	24	28-Jun	20	B
	64		64		64
29-Jul	19	27-Jul	19	26-Jul	19	A
26-Aug	20	31-Aug	25	30-Aug	25	A
30-Sep	24	28-Sep	19	27-Sep	19	B
	63		63		63
28-Oct	20	26-Oct	20	25-Oct	20	A
25-Nov	18	30-Nov	23	29-Nov	23	A
30-Dec	24	28-Dec	19	27-Dec	19	B
	62		62		62
27-Jan	19	25-Jan	19	31-Jan	24	A
24-Feb	20	22-Feb	20	28-Feb	20	A
30-Mar	25	29-Mar	25	28-Mar	20	B
	64		64		64
	253		253		253
A	Closing date is the last Friday of the month for non-quarter end months.
B	Closing date is the Friday closest to month end, based on business days, for quarter end months.

Numbers may not foot due to rounding differences

10

PSS World Medical, Inc.

June 29, 2012

EBITDA Calculation from Continuing Operations

Current Fiscal Year - Unaudited

(in thousands)

	2013
	Q1
Income from continuing operations	$	8,846
Plus:
Interest expense		8,504
Provision for income taxes		4,398
Depreciation		5,472
Amortization of intangible assets		2,180
Less:
Interest income		(14	)
EBITDA	$	29,387

Numbers may not foot due to rounding differences

11

PSS World Medical, Inc.

June 29, 2012

EBITDA Calculation from Continuing Operations

Trend - Unaudited

(in thousands)

	2012															2011
	Q1			Q2			Q3			Q4			Total			Total
Income from continuing operations	$	10,156		$	16,348		$	15,822		$	16,973		$	59,299		$	54,505
Plus:
Interest expense		4,470			4,611			4,784			6,075			19,940			16,900
Provision for income taxes		5,899			9,540			7,943			8,109			31,491			31,758
Depreciation		5,120			5,324			5,418			5,552			21,413			19,927
Amortization of intangible assets		1,616			1,618			1,732			1,907			6,873			4,181
Less:
Interest and investment income		(26	)		(17	)		(15	)		(14	)		(73	)		(117	)
EBITDA	$	27,235		$	37,422		$	35,684		$	38,602		$	138,943		$	127,155

Numbers may not foot due to rounding differences

12

PSS World Medical, Inc.

As of June 29, 2012

Consolidated Return on Committed Capital (ROCC) from Continuing Operations

Current Fiscal Year - Unaudited

 (in thousands)

	2013
Consolidated Return on Committed Capital:
Quarterly Average Committed Capital (k)	$	301,959
Committed Capital - Current Quarter		304,084
Committed Capital - Previous Quarter		299,834
Return on Committed Capital - Quarterly (l)		31.7	%
Return:
Income from continuing operations		8,846
Add:
Provision for income taxes		4,398
Interest expense		8,504
Amortization		2,180
Interest and investment income		(14	)
	$	23,915
Committed Capital:
Total assets	$	1,194,350
Less assets held for sale		280,029
Total assets from continuing operations		914,321
Less assets excluded:
Cash		(107,414	)
Goodwill and intangibles, net		(194,269	)
Total liabilities		(798,784	)
Less liabilities held for sale		(32,875	)
Total liabilities from continuing operations		(765,909	)
Plus liabilities excluded:
Current debt		-
Long-term debt		457,356
	$	304,084

Numbers may not foot due to rounding differences

13

PSS World Medical, Inc.

As of June 29, 2012

Consolidated ROCC from Continuing Operations

Trend - Unaudited

(in thousands)

	2012															2011
	Q1			Q2			Q3			Q4			Total			Total
Consolidated Return on Committed Capital:
Quarterly Average Committed Capital (k)	$	259,357		$	276,924		$	296,334		$	304,228
Annual Average Committed Capital (m)													$	274,371		$	265,530
Committed Capital - Current Quarter		269,805			284,044			308,623			299,834			299,834			248,909
Committed Capital - Previous Quarter		248,909			269,805			284,044			308,623			308,623			274,526
Committed Capital - Current Q4 End														299,834			248,909
Committed Capital - Previous Year End														248,909			282,152
Return on Committed Capital - Quarterly (l)		34.1	%		46.4	%		40.9	%		43.5	%
Return on Committed Capital - Annual														42.8	%		40.4	%
Return:
Income from continuing operations		10,156			16,348			15,822			16,973			59,299			54,505
Add:
Provision for income taxes		5,899			9,540			7,943			8,109			31,491			31,758
Interest expense		4,470			4,611			4,784			6,075			19,940			16,900
Amortization		1,616			1,618			1,732			1,907			6,873			4,181
Interest and investment income		(26	)		(17	)		(15	)		(14	)		(73	)		(117	)
	$	22,115		$	32,099		$	30,266		$	33,050		$	117,530		$	107,227
Committed Capital:
Total assets	$	946,700		$	964,780		$	1,039,447		$	1,155,970		$	1,155,970		$	671,395
Less assets held for sale		255,556			252,244			283,379			277,378			277,378			-
Total assets from continuing operations		691,144			712,536			756,068			878,592			878,592			671,395
Less assets excluded:
Cash		(22,291	)		(34,848	)		(32,438	)		(163,152	)		(163,152	)		(29,348	)
Goodwill and intangibles, net		(114,235	)		(121,657	)		(126,223	)		(143,003	)		(143,003	)		(115,263	)
Total liabilities		(540,196	)		(559,727	)		(646,629	)		(765,159	)		(765,159	)		(474,260	)
Less liabilities held for sale		(36,429	)		(37,193	)		(38,887	)		(37,640	)		(37,640	)		-
Total liabilities from continuing operations		(503,767	)		(522,534	)		(607,742	)		(727,519	)		(727,519	)		(474,260	)
Plus liabilities excluded:
Current debt		21,051			50,363			182			-			-			729
Long-term debt		197,902			200,185			318,776			454,916			454,916			195,656
	$	269,805		$	284,044		$	308,623		$	299,834		$	299,834		$	248,909

Numbers may not foot due to rounding differences

14

PSS World Medical, Inc.

Footnotes

(a)   During the fiscal year ended March 30, 2012, the Company amended the credit agreement governing its revolving line of credit.  Based on the amended terms, the Company classified outstanding borrowings within long-term liabilities as of March 30, 2012.  Outstanding borrowings prior to the amendment were recorded within current liabilities on the Consolidated Balance Sheets.

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

(c)   ROCC equals return divided by average committed capital. Return is annualized for quarterly and year to date calculations. Management reviews 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.

(d)   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. (Note:  Home Care & Hospice DSO as of March 30, 2012 is calculated using the beginning and ending balances of the most recent three quarters divided by four.) Average daily net sales are net sales for the most recent four quarters divided by 360.

(e)   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. (Note:  Home Care & Hospice DOH as of March 30, 2012 is calculated using the beginning and ending balances of the most recent three quarters divided by four.) Average daily COGS is quarterly COGS for the most recent four quarters divided by 360.

(f)   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. (Note:  Home Care & Hospice DIP as of March 30, 2012 is calculated using the beginning and ending balances of the most recent three quarters divided by four.)

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

(h)   Operational working capital equals accounts receivable, net, plus inventory minus accounts payable.

(i)   Impact of Acquisitions represents net sales or selling and general & administrative expenses from the acquisition date through the end of the most recent quarter, including fold-in acquisitions through the time of integration with core operations.  Effective Q1 of fiscal year 2013, this measure is calculated by deducting amounts for current fiscal year acquisitions only.

(j)   Non-recurring costs include accrued retention, professional fees, severance and other expenses directly related to the transformation and divestiture processes.

(k)   Quarterly Average Committed Capital equals the sum of the committed capital of the most recent two quarters, divided by two.

(l)   Return on Committed Capital equals Return divided by Committed Capital. Quarterly calculations are annualized.

(m)   Annual Average Committed Capital equals the sum of the committed capital of the most recent two year ends, divided by two.

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