EX-99.2 3 dex992.htm FINANCIAL SUPPLEMENT FOR THE THREE AND SIX MONTHS ENDED SEPTEMBER 28, 2007 Financial Supplement for the three and six months ended September 28, 2007

Exhibit 99.2

LOGO

Financial Data Workbook

For the Second Quarter of Fiscal Year 2008 ending September 28, 2007


PSS World Medical, Inc.

As of September 28, 2007

Current Fiscal Year

(in thousands, except per share data)

 

     Fiscal 2008  
     Q1     Q2  

Net Sales

   $ 438,910     $ 457,930  

Cost of Goods Sold

     311,227       325,390  
                

Gross Profit

     127,683       132,540  

General & Administrative Expenses

     83,600       77,315  

Selling Expenses

     29,551       30,763  
                

Income from operations

     14,532       24,462  

Interest Expense

     (1,358 )     (1,533 )

Interest & Investment Income

     528       114  

Other Income

     544       546  
                

Income from Operations before Income Taxes

     14,246       23,589  

Provision for Income Taxes

     5,559       9,106  
                

Net Income

   $ 8,687     $ 14,483  
                

Earnings per share - Basic:

    

Net Income

   $ 0.13     $ 0.22  
                

Earnings per share - Diluted:

    

Net Income

   $ 0.13     $ 0.22  
                

WASO - Basic

     66,793       65,806  

WASO - Diluted

     68,765       67,067  

Net Sales by Segment:

    

Physician Business

   $ 306,245     $ 320,171  

Elder Care Business

     132,665       137,759  
                
   $ 438,910     $ 457,930  
                

Billing Days:

     64       63  

Net Sales Per Billing Day:

    

Physician Business

   $ 4,785     $ 5,082  

Elder Care Business

     2,073       2,187  
                
   $ 6,858     $ 7,269  
                

 

Numbers may not foot due to rounding differences.


PSS World Medical, Inc.

As of September 28, 2007

(in thousands, except per share data)

 

     Fiscal 2005      Fiscal 2006      Fiscal 2007  
     Q1     Q2     Q3     Q4     Total      Q1      Q2      Q3      Q4      Total      Q1      Q2      Q3      Q4      Total  

Net Sales (1)

   $ 330,361     $ 364,267     $ 377,842     $ 401,299     $ 1,473,769      $ 387,129      $ 385,819      $ 423,781      $ 422,688      $ 1,619,417      $ 413,135      $ 427,059      $ 458,421      $ 443,024      $ 1,741,639  

Cost of Goods Sold

     234,585       258,945       268,675       288,209       1,050,414        276,654        273,512        303,707        298,219        1,152,092        293,233        303,203        335,186        310,007        1,241,629  
                                                                                                                                  

Gross Profit

     95,776       105,322       109,167       113,090       423,355        110,475        112,307        120,074        124,469        467,325        119,902        123,856        123,235        133,017        500,010  

General & Administrative Expenses (2)

     60,948       64,300       68,827       68,130       262,205        70,337        69,279        72,053        75,639        287,308        73,664        73,391        75,222        78,423        300,700  

Selling Expenses

     23,453       24,625       25,082       26,431       99,591        25,774        26,217        27,469        28,148        107,608        27,498        28,878        30,140        30,307        116,823  
                                                                                                                                  

Income from operations

     11,375       16,397       15,258       18,529       61,559        14,364        16,811        20,552        20,682        72,409        18,740        21,587        17,873        24,287        82,487  

Interest Expense

     (1,942 )     (1,817 )     (1,737 )     (1,360 )     (6,856 )      (1,509 )      (1,358 )      (1,561 )      (1,456 )      (5,884 )      (1,406 )      (1,336 )      (1,320 )      (1,284 )      (5,346 )

Interest & Investment Income

     111       89       12       5       217        99        111        75        138        423        101        282        426        385        1,194  

Other Income

     343       252       378       261       1,234        457        1,750        435        504        3,146        469        429        517        591        2,006  
                                                                                                                                  

Income from Continuing Operations before Income Taxes

     9,887       14,921       13,911       17,435       56,154        13,411        17,314        19,501        19,868        70,094        17,904        20,962        17,496        23,979        80,341  

Provision for Income Taxes

     3,962       6,149       (525 )     7,184       16,770        5,271        6,529        7,080        6,957        25,837        6,949        8,187        6,376        8,348        29,860  
                                                                                                                                  

Income from Continuing Operations

     5,925       8,772       14,436       10,251       39,384        8,140        10,785        12,421        12,911        44,257        10,955        12,775        11,120        15,631        50,481  

Total loss from discontinued operations

     (1,708 )     —         1,295       —         (412 )      —          —          —          —          —          —          —          —          —          —    
                                                                                                                                  

Net (Loss) Income

   $ 4,217     $ 8,772     $ 15,731     $ 10,251     $ 38,972      $ 8,140      $ 10,785      $ 12,421      $ 12,911      $ 44,257      $ 10,955      $ 12,775      $ 11,120      $ 15,631      $ 50,481  
                                                                                                                                  

Earnings (loss) per share - Basic:

                                        

Income from Continuing Operations

   $ 0.09     $ 0.14     $ 0.22     $ 0.16     $ 0.61      $ 0.13      $ 0.16      $ 0.19      $ 0.19      $ 0.67      $ 0.16      $ 0.19      $ 0.17      $ 0.23      $ 0.75  

Total loss from discontinued operations

     (0.03 )     —         0.02       —         (0.01 )      —          —          —          —          —          —          —          —          —          —    
                                                                                                                                  

Net (Loss) Income

   $ 0.06     $ 0.14     $ 0.24     $ 0.16     $ 0.60      $ 0.13      $ 0.16      $ 0.19      $ 0.19      $ 0.67      $ 0.16      $ 0.19      $ 0.17      $ 0.23      $ 0.75  
                                                                                                                                  

Earnings (loss) per share - Diluted:

                                        

Income from Continuing Operations

   $ 0.09     $ 0.13     $ 0.22     $ 0.16     $ 0.60      $ 0.12      $ 0.16      $ 0.19      $ 0.19      $ 0.66      $ 0.16      $ 0.18      $ 0.16      $ 0.23      $ 0.73  

Total loss from discontinued operations

     (0.03 )     —         0.02       —         (0.01 )      —          —          —          —          —          —          —          —          —          —    
                                                                                                                                  

Net (Loss) Income

   $ 0.06     $ 0.13     $ 0.24     $ 0.16     $ 0.59      $ 0.12      $ 0.16      $ 0.19      $ 0.19      $ 0.66      $ 0.16      $ 0.18      $ 0.16      $ 0.23      $ 0.73  
                                                                                                                                  

WASO—Basic

     64,890       64,358       64,305       64,656       64,547        64,877        65,392        65,779        66,546        65,643        67,310        67,453        67,054        67,059        67,219  

WASO—Diluted

     66,056       65,267       65,366       65,786       65,607        65,860        66,487        66,931        68,062        66,887        68,947        69,478        69,458        69,419        69,325  

Net Sales by Segment:

                                        

Physician Business

   $ 216,705     $ 237,370     $ 243,439     $ 261,502     $ 959,016      $ 250,544      $ 255,422      $ 290,010      $ 290,844      $ 1,086,820      $ 284,438      $ 300,813      $ 329,160      $ 313,109      $ 1,227,520  

Elder Care Business

     113,656       126,897       134,403       139,797       514,753        136,585        130,397        133,771        131,844        532,597        128,697        126,246        129,261        129,915        514,119  
                                                                                                                                  
   $ 330,361     $ 364,267     $ 377,842     $ 401,299     $ 1,473,769      $ 387,129      $ 385,819      $ 423,781      $ 422,688      $ 1,619,417      $ 413,135      $ 427,059      $ 458,421      $ 443,024      $ 1,741,639  
                                                                                                                                  

Billing Days:

     62       65       61       65       253        64        63        62        64        253        64        63        62        64        253  

Net Sales Per Billing Day:

                                        

Physician Business

   $ 3,495     $ 3,652     $ 3,991     $ 4,023     $ 3,791      $ 3,915      $ 4,054      $ 4,678      $ 4,544      $ 4,296      $ 4,444      $ 4,775      $ 5,309      $ 4,892      $ 4,852  

Elder Care Business

     1,833       1,952       2,203       2,151       2,035        2,134        2,070        2,158        2,060        2,105        2,011        2,004        2,085        2,030        2,032  
                                                                                                                                  
   $ 5,328     $ 5,604     $ 6,194     $ 6,174     $ 5,826      $ 6,049      $ 6,124      $ 6,836      $ 6,604      $ 6,401      $ 6,455      $ 6,779      $ 7,394      $ 6,922      $ 6,884  
                                                                                                                                  

(1) Quarterly net sales for fiscal year 2007 were adjusted in the fourth quarter of 2007 from previously reported amounts. During the fourth quarter of fiscal year 2007, the Company properly reclassified certain transactions from cost of sales to net sales. Such adjustments were deemed immaterial on quarterly net sales.


PSS World Medical, Inc.

As of September 28, 2007

SelectTM Net Sales

(in thousands)

 

     Fiscal 2003    Fiscal 2004    Fiscal 2005    Fiscal 2006    Fiscal 2007

Consolidated Select Sales

   $ 101,883    $ 121,211    $ 137,540    $ 157,296    $ 185,844


PSS WORLD MEDICAL, INC.

SEGMENT INFORMATION

September 28, 2007

(in thousands)

 

     Three Months Ended     Six Months Ended  
     9/28/2007     9/29/2006     9/28/2007     9/29/2006  

NET SALES:

        

Physician Business

   320,171     300,813     626,416     585,252  

Elder Care Business

   137,759     126,246     270,424     254,942  
                        

Total Net Sales

   457,930     427,059     896,840     840,194  
                        

BILLING DAYS:

   63     63     127     127  

NET SALES PER BILLING DAY:

        

Physician Business

   5,082     4,775     4,932     4,608  

Elder Care Business

   2,187     2,004     2,129     2,007  
                        

Total Net Sales Per Billing Day

   7,269     6,779     7,062     6,616  
                        

INCOME FROM OPERATIONS:

        

Physician Business

   20,910     21,139     39,427     39,748  

Elder Care Business

   6,963     4,904     11,549     9,787  

Corporate Shared Services

   (3,411 )   (4,457 )   (11,982 )   (9,208 )
                        

Total Income from operations

   24,462     21,587     38,994     40,327  
                        

DEPRECIATION:

        

Physician Business

   2,188     1,952     4,266     3,878  

Elder Care Business

   1,141     1,017     2,286     2,049  

Corporate Shared Services

   1,428     1,176     2,805     2,313  
                        

Total Depreciation

   4,758     4,145     9,357     8,239  
                        

AMORTIZATION OF INTANGIBLE AND OTHER ASSETS:

        

Physician Business

   767     750     1,549     1,522  

Elder Care Business

   638     698     1,285     1,396  

Corporate Shared Services

   1     29     30     59  
                        

Total amortization of intangible and other assets

   1,406     1,477     2,864     2,977  
                        

PROVISION FOR DOUBTFUL ACCOUNTS:

        

Physician Business

   781     433     1,385     369  

Elder Care Business

   68     490     415     646  

Corporate Shared Services

   —       —       —       —    
                        

Total provision for doubtful accounts

   849     923     1,799     1,015  
                        

INTEREST EXPENSE:

        

Physician Business

   1,236     1,028     2,309     2,045  

Elder Care Business

   1,958     1,959     3,917     3,917  

Corporate Shared Services

   (1,661 )   (1,651 )   (3,334 )   (3,223 )
                        

Total interest expense

   1,533     1,336     2,891     2,739  
                        

INTEREST AND INVESTMENT INCOME:

        

Physician Business

   —       —       —       —    

Elder Care Business

   3     7     6     13  

Corporate Shared Services

   111     275     636     368  
                        

Total interest and investment income

   114     282     642     380  
                        

PROVISION (BENEFIT) FOR INCOME TAXES:

        

Physician Business

   7,690     7,971     14,657     14,927  

Elder Care Business

   1,928     1,167     2,957     2,322  

Corporate Shared Services

   (512 )   (951 )   (2,949 )   (2,113 )
                        

Total provision for income taxes

   9,106     8,187     14,664     15,136  
                        

 

Numbers may not foot due to rounding differences.


PSS World Medical, Inc.

Current Fiscal Year Balance Sheet

(in thousands)

Consolidated

 

     As of
     6/29/07    9/28/07
ASSETS      

Cash

   23,954    17,041

Accounts Receivable, net

   222,699    232,282

Inventory, net

   187,499    188,087

Deferred Tax Assets

   8,987    9,319

Other Current Assets

   34,257    27,894
         

Total Current Assets

   477,396    474,623
         

Property and Equipment, net

   89,347    89,339

Intangibles, net

   30,280    28,991

Goodwill

   110,993    110,727

Investment in available for sale securities

   —      46,147

Other Long-Term Assets

   98,380    69,856
         

Total Long-Term Assets

   329,000    345,060
         

Total Assets

   806,396    819,683
         
LIABILITIES & EQUITY      

Accounts Payable

   144,572    149,827

Accrued Expenses

   33,099    33,275

Current Maturities of Long-Term Debt

   2,132    32,129

Other Current Liabilities

   15,267    15,000
         

Total Current Liabilities

   195,070    230,230
         

Long-Term Debt

   150,527    150,449

Other Long-Term Liabilities

   70,414    66,788
         

Total Long-Term Liabilities

   220,941    217,237
         

Total Liabilities

   416,011    447,467
         

Total Equity

   390,385    372,216
         

Total Liabilities & Equity

   806,396    819,683
         

 

Numbers may not foot due to rounding differences.


PSS World Medical, Inc.

Balance Sheet Trend

(in thousands)

Consolidated

 

    Fiscal 2005   Fiscal 2006   Fiscal 2007
ASSETS   Jun-04   Sep-04   Dec-04   Mar-05   Jun-05   Sep-05   Dec-05   Mar-06   Jun-06   Sep-06   Dec-06   Mar-07

Cash

  63,112   45,591   13,657   17,888   23,836   17,466   26,651   23,867   27,784   45,678   54,904   46,658

Accounts Receivable, net

  182,639   197,423   209,342   217,350   208,642   213,585   207,659   208,964   206,405   225,536   219,822   222,776

Inventory, net

  112,653   113,384   147,470   134,110   132,684   136,450   167,407   173,458   170,612   172,127   186,193   174,130

Deferred Tax Assets

  38,594   33,301   32,206   29,014   29,113   20,183   14,298   12,959   11,181   9,042   7,379   8,776

Other Current Assets

  13,596   10,016   18,567   19,451   22,182   25,822   27,937   33,827   32,876   39,288   37,329   34,434
                                               

Total Current Assets

  410,594   399,715   421,242   417,813   416,457   413,506   443,952   453,075   448,858   491,671   505,627   486,774
                                               

Property and Equipment, net

  70,792   73,362   76,453   81,105   84,173   86,840   86,475   87,663   88,214   87,291   85,885   88,627

Intangibles, net

  10,737   12,824   22,419   21,858   21,217   34,427   35,395   34,345   33,350   32,343   31,186   29,758

Goodwill

  71,631   71,646   79,542   85,617   86,273   103,420   105,452   105,521   106,519   106,819   106,971   107,366

Other Long-Term Assets

  39,555   40,794   41,691   39,965   47,315   50,862   53,665   56,371   —     —     —     2
                                               

Total Long-Term Assets

  192,715   198,626   220,105   228,545   238,978   275,549   280,987   283,900   283,066   281,388   282,105   288,201
                                               

Total Assets

  603,309   598,341   641,347   646,358   655,435   689,055   724,939   736,975   731,924   773,059   787,732   774,975
                                               
    Fiscal 2005   Fiscal 2006   Fiscal 2007
LIABILITIES & EQUITY   Jun-04   Sep-04   Dec-04   Mar-05   Jun-05   Sep-05   Dec-05   Mar-06   Jun-06   Sep-06   Dec-06   Mar-07

Accounts Payable

  105,057   105,608   127,465   109,649   115,455   118,953   141,622   139,227   122,449   145,767   162,338   131,330

Accrued Expenses

  29,667   33,610   36,085   44,880   26,660   33,196   30,413   34,499   27,748   34,827   31,670   37,224

Current Maturities of Long-Term Debt

  35,052   25,000   25,000   25,000   25,679   27,786   25,788   509   517   1,655   152,154   2,238

Liabilities of Discontinued Operations

  4,809   405   —     —     —     —     —     —     —     —     —     —  

Other Current Liabilities

  12,982   13,360   9,296   9,701   12,661   11,883   11,837   13,639   12,490   13,917   10,730   11,440
                                               

Total Current Liabilities

  187,567   177,983   197,846   189,230   180,455   191,818   209,660   187,874   163,204   196,166   356,892   182,232
                                               

Long-Term Debt

  150,000   150,000   150,000   150,000   151,192   151,113   150,981   150,855   150,725   150,616   460   150,675

Other Long-Term Liabilities

  23,629   25,225   29,359   30,310   35,870   41,179   43,509   49,433   54,274   57,781   62,302   61,207
                                               

Total Long-Term Liabilities

  173,629   175,225   179,359   180,310   187,062   192,292   194,490   200,288   204,999   208,397   62,762   211,882

Total Liabilities

  361,196   353,208   377,205   369,540   367,517   384,110   404,150   388,162   368,203   404,563   419,654   394,114
                                               

Total Equity

  242,113   245,133   264,142   276,818   287,918   304,945   320,789   348,813   363,721   368,496   368,078   380,861
                                               

Total Liabilities & Equity

  603,309   598,341   641,347   646,358   655,435   689,055   724,939   736,975   731,924   773,059   787,732   774,975
                                               


PSS World Medical, Inc.

Unaudited Operating Highlights

Current Fiscal Year

(in millions)

 

      Three Months Ended     Six Months Ended  
    

September 28,

2007

   

September 29,

2006

   

September 28,

2007

   

September 29,

2006

 

Net Sales:

        

Physician Business

   $ 320.2     $ 300.8     $ 626.4     $ 585.3  

Elder Care Business

     137.8       126.2       270.4       254.9  
                                

Total Net Sales

   $ 457.9     $ 427.1     $ 896.8     $ 840.2  
                                

Income from Operations:

        

Physician Business

   $ 20.9     $ 21.1     $ 39.4     $ 39.7  

Elder Care Business

     7.0       4.9       11.5       9.8  

Corporate Shared Services

     (3.4 )     (4.5 )     (12.0 )     (9.2 )
                                

Total income from operations

   $ 24.5     $ 21.6     $ 39.0     $ 40.3  
                                

EBITDA (a)

   $ 31.2     $ 27.6     $ 52.3     $ 52.4  

Income from operations, as a percentage of net sales

     5.3 %     5.1 %     4.3 %     4.8 %

Consolidated Return on Committed Capital (“ROCC”) (b)

     27.2 %     27.5 %     22.9 %     26.4 %

Billing Days

     63       63       127       127  

Net Sales Per Billing Day (in thousands):

        

Physician Business

   $ 5,082     $ 4,775     $ 4,932     $ 4,608  

Elder Care Business

     2,187       2,004       2,129       2,007  
                                

Total Net Sales Per Billing Day

   $ 7,269     $ 6,779     $ 7,062     $ 6,616  
                                

Net Sales Per Billing Day Growth Rate:

        

Physician Business

     6.4 %       7.0 %  

Elder Care Business

     9.1 %       6.1 %  

Total Net Sales Per Billing Day Growth Rate

     7.2 %       6.7 %  
                  Annualized  
                 September 28,
2007
    September 29,
2006
 

DSO (c)

        

Physician Business

         42.6       40.9  

Elder Care Business

         50.7       55.3  

DOH (d)

        

Physician Business

         48.8       48.2  

Elder Care Business

         56.1       50.8  

DIP (e)

        

Physician Business

         44.9       43.5  

Elder Care Business

         27.9       29.1  

Cash Conversion Days (f)

        

Physician Business

         46.5       45.6  

Elder Care Business

         78.8       77.0  
                  As of  
                 September 28,
2007
    September 29,
2006
 

Operational working capital (g)

       $ 270.5     $ 251.9  

Net Debt:

        

Bank debt

       $ 31.4     $ 1.0  

Other debt

         1.2       1.3  

Convertible senior notes

         150.0       150.0  

Less: Cash and cash equivalents

         (17.0 )     (45.7 )
                    

Net Debt

       $ 165.6     $ 106.6  
                    

 

Numbers may not foot due to rounding differences.


PSS World Medical, Inc.

EBITDA Calculation

Current Fiscal Year

(in thousands)

 

     Fiscal 2008  
     Q1     Q2  

Net Income

   $ 8,687     $ 14,483  

Plus: Interest expense

     1,358       1,533  

Less: Interest and investment income

     (528 )     (114 )

Plus: Provision for income taxes

     5,559       9,106  

Plus: Depreciation

     4,595       4,758  

Plus: Amortization of intangible assets

     1,458       1,406  
                

EBITDA

   $ 21,128     $ 31,172  
                

 

Numbers may not foot due to rounding differences.


PSS World Medical, Inc.

EBITDA Calculation

(in thousands)

 

      Fiscal 2005     Fiscal 2006     Fiscal 2007  
     Q1     Q2     Q3     Q4     Total FY
2005
    Q1     Q2     Q3     Q4     Total FY
2006
    Q1     Q2     Q3     Q4     Total FY
2007
 

Income from Continuing Operations

   $ 5,925     $ 8,772     $ 14,436     $ 10,251     $ 39,384     $ 8,140     $ 10,785     $ 12,421     $ 12,911     $ 44,257     $ 10,955     $ 12,775     $ 11,120     $ 15,631     $ 50,481  

Plus: Interest expense

     1,942       1,817       1,737       1,360       6,856       1,509       1,358       1,561       1,456       5,884       1,406       1,336       1,320       1,284       5,346  

Less: Interest and investment income

     (111 )     (89 )     (12 )     (5 )     (217 )     (99 )     (111 )     (75 )     (138 )     (423 )     (101 )     (282 )     (426 )     (385 )     (1,194 )

Plus: Provision for income taxes

     3,962       6,149       (525 )     7,184       16,770       5,271       6,529       7,080       6,957       25,837       6,949       8,187       6,376       8,348       29,860  

Plus: Depreciation

     3,482       3,427       3,727       3,605       14,241       3,316       3,468       3,673       3,475       13,932       4,094       4,145       4,215       4,296       16,750  

Plus: Amortization of intangible assets

     836       935       1,278       1,488       4,537       1,361       1,389       1,677       1,871       6,298       1,505       1,472       1,468       1,463       5,908  
                                                                                                                        

EBITDA

   $ 16,036     $ 21,011     $ 20,641     $ 23,883     $ 81,571     $ 19,498     $ 23,418     $ 26,337     $ 26,532     $ 95,785     $ 24,808     $ 27,633     $ 24,073     $ 30,637     $ 107,151  
                                                                                                                        

 

Numbers may not foot due to rounding differences.


PSS World Medical, Inc.

Return on Committed Capital (ROCC)

Current Fiscal Year

(in thousands)

Consolidated

 

      Fiscal 2008  
     Q1     Q2  

Quarterly Average Committed Capital (1)

   363,905     387,926  

Return on Committed Capital - Quarterly (2)

   18.2 %   27.2 %

Return:

    

Net Income

   8,687     14,483  

Add:

    

Provision for Income Taxes

   5,559     9,106  

Interest Expense

   1,358     1,533  

Amortization

   1,458     1,406  

Interest and Investment Income

   (528 )   (114 )
            
   16,534     26,414  
            

Committed Capital:

    

Total Assets

   806,396     819,683  

Less assets excluded:

    

Cash

   (23,954 )   (17,041 )

Goodwill and Intangibles, net

   (141,273 )   (139,718 )

Total Liabilities

   (416,011 )   (447,467 )

Plus liabilities excluded:

    

Current debt

   2,132     32,129  

Long-term debt

   150,527     150,449  
            
   377,817     398,035  
            

(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 2005     Fiscal 2006     Fiscal 2007  
    Q1     Q2     Q3     Q4     Total FY
2005
    Q1     Q2     Q3     Q4     Total FY
2006
    Q1     Q2     Q3     Q4     Total FY
2007
 

Quarterly Average Committed Capital (1)

  247,761     260,802     280,166     303,738       316,837     322,662     325,748     330,989       340,070     341,619     331,779     338,812    

Annual Average Committed Capital (2)

          274,084             321,764             341,411  

Return on Committed Capital - Quarterly (3)

  20.3 %   27.0 %   24.1 %   26.7 %     20.4 %   24.7 %   27.8 %   27.9 %     24.4 %   27.5 %   23.9 %   31.1 %  

Return on Committed Capital - Annual

          24.6 %           25.4 %           26.5 %

Return:

                             

Income from Continuing Operations before Extraordinary Loss

  5,925     8,772     14,436     10,251     39,384     8,140     10,785     12,421     12,911     44,257     10,955     12,775     11,120     15,631     50,481  

Add:

                             

Provision for Income Taxes

  3,962     6,149     (525 )   7,184     16,770     5,271     6,529     7,080     6,957     25,837     6,949     8,187     6,376     8,348     29,860  

Interest Expense

  1,942     1,817     1,737     1,360     6,856     1,509     1,358     1,550     1,467     5,884     1,406     1,336     1,320     1,284     5,346  

Amortization

  836     934     1,278     1,488     4,536     1,361     1,389     1,677     1,871     6,298     1,500     1,477     1,469     1,462     5,908  

Interest and Investment Income

  (111 )   (89 )   (12 )   (5 )   (217 )   (99 )   (111 )   (64 )   (149 )   (423 )   (101 )   (282 )   (426 )   (385 )   (1,194 )
                                                                                         
  12,554     17,583     16,914     20,278     67,329     16,182     19,950     22,664     23,057     81,853     20,709     23,493     19,859     26,340     90,401  
                                                                                         

Committed Capital:

                             

Total Assets

  603,309     598,341     641,347     646,358     646,358     655,435     689,055     724,939     736,975     736,975     731,924     773,059     787,732     774,975     774,975  

Less assets excluded:

                             

Cash

  (63,112 )   (45,591 )   (13,657 )   (17,888 )   (17,888 )   (23,836 )   (17,466 )   (26,651 )   (23,867 )   (23,867 )   (27,784 )   (45,678 )   (54,904 )   (46,658 )   (46,658 )

Goodwill and Intangibles, net

  (82,368 )   (84,470 )   (101,961 )   (107,475 )   (107,475 )   (107,490 )   (137,847 )   (140,847 )   (139,866 )   (139,866 )   (139,869 )   (139,162 )   (138,157 )   (137,124 )   (137,124 )

DTA from sale of Imaging Business

  (28,444 )   (26,923 )   (26,746 )   (15,758 )   (15,758 )   (10,487 )   (6,184 )   (912 )   (3,614 )   (3,614 )   —             —    

Total Liabilities

  (361,196 )   (353,208 )   (377,205 )   (369,540 )   (369,540 )   (367,517 )   (384,110 )   (404,150 )   (388,162 )   (388,162 )   (368,203 )   (404,563 )   (419,654 )   (394,114 )   (394,114 )

Plus liabilities excluded:

                             

Current debt

  35,052     25,000     25,000     25,000     25,000     25,679     27,786     25,788     509     509     517     1,655     152,154     2,238     2,238  

Long-term debt

  150,000     150,000     150,000     150,000     150,000     151,192     151,113     150,981     150,855     150,855     150,725     150,616     460     150,675     150,675  

Liabilities of Discontinued Operations

  4,809     405     —       —       —       —       —       —       —       —       —       —       —       —       —    
                                                                                         
  258,050     263,554     296,778     310,697     310,697     322,976     322,347     329,148     332,830     332,830     347,310     335,927     327,631     349,992     349,992  
                                                                                         

(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 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.

(b) ROCC equals return divided by average committed capital. Return is annualized for quarterly 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.

(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. Southern Anesthesia & Surgical, Inc. (“SAS”) accounts receivable balance of $1.4 million as of September 30, 2005, has been excluded from the Fiscal Year 2006 calculation.

(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. SAS inventory balance of $3.9 million as of September 30, 2005, has been excluded from the Fiscal Year 2006 calculation.

(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. SAS accounts payable balance of $3.8 million as of September 30, 2005, has been excluded from the Fiscal Year 2006 calculation.

(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.