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 8, 2012

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 of incorporation or organization)	(IRS Employer 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.

On May 10, 2012, 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 March 30, 2012. 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 March 30, 2012, which may be found on the Company’s website at www.pssworldmedical.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 and investors 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 results.

Item 2.05. Costs Associated with Exit and Disposal Activities.

On May 8, 2012, the Company’s Board of Directors approved a strategic transformation plan, focusing on four lines of business– Physician Services, Laboratory Services, Dispensing Services, and Home Care Services.

The restructuring plan will include the proposed sale of two business units serving skilled nursing facilities and specialty dentist practices, integration of all warehouse operations into one common distribution infrastructure, as well as a redesign of the shared service and field support functions. These efforts are expected to significantly reduce operating costs while streamlining decision making and improving service. The Company expects to complete the restructuring plan within the next several fiscal years.

The Company is currently unable to make a good faith estimate of the amount or range of amounts expected to be incurred in connection with the strategic transformation plan, both with respect to each major type of cost associated therewith and with respect to the total cost, or an estimate of the amount or range of amounts that will result in future cash expenditures for such transaction. After the Company makes a determination of such estimates or range of estimates, it will provide applicable additional disclosures.

A press release related to the Company’s strategic transformation plan is attached as Exhibit 99.3 to this report and is incorporated herein by reference.

Item 7.01 Regulation FD Disclosure

During its fiscal year ended March 30, 2012 conference call and live webcast, the Company disclosed estimates related to market size and the Company’s future proportionate market share for the four lines of business created as part of the strategic transformation plan. A link to this event and online replay may be found in the Investor Relations section of the Company’s website, www.pssworldmedical.com, under the heading “Events and Presentations.”

Item 8.01. Other Events.

On May 10, 2012, the Company announced the purchase of three strategic acquisitions, two laboratory service companies and one physician office dispensing company. The press release is attached as Exhibit 99.3 to this report and is incorporated herein by reference.

Item 9.01 Financial Statements and Exhibits.

Exhibit Number	Description
99.1	Press Release dated May 10, 2012 with respect to the Registrant’s financial results for the three and twelve months ended March 30, 2012.
99.2	Financial Supplement for the three and twelve months ended March 30, 2012.
99.3	Press Release dated May 10, 2012 with respect to the Registrant’s strategic transformation plan.

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 8, 2012

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 10, 2012 with respect to the Registrant’s financial results for the three and twelve months ended March 30, 2012.
99.2	Financial Supplement for the three and twelve months ended March 30, 2012.
99.3	Press Release dated May 10, 2012 with respect to the Registrant’s strategic transformation plan.

EX-99.1

Exhibit 99.1

Contact:

Jenny Kobin

Vice President, Investor Relations

904-332-3287

PSS WORLD MEDICAL REPORTS RESULTS FOR

FOURTH QUARTER AND FISCAL YEAR 2012

Fiscal Year 2012 Highlights:

• Consolidated net sales growth of 3.3%

• Physician Business net sales growth of 6.2%

• Extended Care Business net sales decline of 3.4%

• Consolidated earnings per diluted share growth of 4.5% to $1.38

• Consolidated cash flow from operations of $128.3 million

• Consolidated return on committed capital of 34.8%

• Repurchased approximately 5.6 million common shares at an average price of $25.10

Fourth Quarter Highlights:

• Consolidated net sales decline of 2.0%, with same day sales decline of 0.4%

• Physician Business net sales decline of 1.7%, with same day sales decline of 0.1%

• Extended Care Business net sales decline of 2.6%, with same day sales decline of 1.0%

• Consolidated earnings per diluted share growth of 0.5% to $0.38

• Consolidated cash flow from operations of $62.3 million

• Consolidated return on committed capital of 35.7%

Jacksonville, Florida (May 10, 2012) – PSS World Medical, Inc. (NasdaqGS: PSSI) announced today its results for the fourth quarter and fiscal year ended March 30, 2012.

President and Chief Executive Officer, Gary A. Corless, commented, “We are on the front lines of healthcare serving caregivers who are dealing with the rapidly changing environment of lower utilization, consolidation and decreasing reimbursement rates. These headwinds created challenges during the past year which impacted our financial performance. While we were able to generate reasonable annual growth in fiscal year 2012 of 3.3% in revenues and 4.5% in EPS, we have not been satisfied with our performance and results. We intend to match the rapid rate of external change with a proactive transformation of our organization, designed to maximize the strength of our caregivers, the performance of our people, and the returns for all those invested in us and our purpose. Our announcement today of this transformation plan, which includes our intent to divest our skilled nursing business and a smaller, specialty dental business, will realign our efforts and investments to those areas identified as critical to the future of U.S. healthcare and best aligned with our competencies.”

-MORE-

PSSI Reports Results For Fiscal 2012 Fourth Quarter

Page 2

May 10, 2012

Net sales for the three months ended March 30, 2012, were $538.9 million, a decrease of 2.0%, compared with net sales of $549.7 million for the three months ended April 1, 2011. Net sales for the three months ended March 30, 2012, for the Physician Business decreased by 1.7% and decreased by 2.6% for the Extended Care Business. Income from operations for the three months ended March 30, 2012, was $35.8 million compared with income from operations for the three months ended April 1, 2011, of $38.2 million. Net income for the three months ended March 30, 2012, was $20.0 million, or $0.38 per diluted share, compared with net income for the three months ended April 1, 2011, of $21.6 million, or $0.38 per diluted share. The Company noted it had one less sales day (64 sales days) in the fourth quarter of fiscal year 2012 compared to the number of sales days (65 sales days) in the fourth quarter of fiscal year 2011.

Net sales for the twelve months ended March 30, 2012, were $2,102.0 million, an increase of 3.3%, compared with net sales of $2,034.8 million for the twelve months ended April 1, 2011. Net sales for the twelve months ended March 30, 2012, for the Physician Business increased by 6.2% and decreased by 3.4% for the Extended Care Business. Income from operations for the twelve months ended March 30, 2012, was $133.4 million compared with income from operations for the twelve months ended April 1, 2011, of $133.6 million. Net income for the twelve months ended March 30, 2012, decreased by 0.2% to $74.3 million, compared with net income for the twelve months ended April 1, 2011, of $74.5 million, while diluted earnings per share grew by 4.5%.

David M. Bronson, Executive Vice President and Chief Financial Officer, commented, “Our financial position remains strong as we delivered cash flow from operations of $128.3 million, most of which has been re-invested in the business through a very successful year of fold-in and strategic acquisitions. In the fourth quarter, we produced satisfying revenue growth across several segments including disposables and our store brands, but total revenue was negatively impacted by a very light flu season in the U.S. This resulted in approximately $12-16 million less revenue of flu-related products, compared to the prior year. As we proceed into our fiscal year 2013, we are optimistic that the strategic transformation plan announced today will enable us to accelerate top-line growth and deliver attractive long-term returns for our shareholders.”

PSS will host a conference call and live webcast to discuss these financial results on Thursday, May 10, 2012, at 8:30 a.m. ET. In addition, an online replay will be available approximately one hour following the conclusion of the live broadcast.

PSS will hold its annual Investor Day meeting in New York City on Thursday, May 24, 2012, from 8:00-10:00 a.m. ET to provide further information on the strategic transformation and implications for the Company’s near-term and long-term strategic and financial outlook.

A link to these events can be found in the Investor Relations section of the Company’s website, www.pssworldmedical.com, under the heading “Events & Presentations.”

-MORE-

PSSI Reports Results For Fiscal 2012 Fourth Quarter

Page 3

May 10, 2012

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 2012 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 section of the Company’s website, www.pssworldmedical.com, under the heading “Events and Presentations.” If you should need assistance accessing the information, please call Investor Relations at 904-332-3287.

PSS World Medical, Inc. markets and distributes medical products to physicians, elder care providers and alternate-site healthcare providers throughout the United States. Since its inception in 1983, PSS has become a leader in the market segments that it serves with a focused approach to customer service and operational excellence. The Company’s stated purpose is to strengthen the clinical success and financial health of caregivers by solving their biggest problems.

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, and specifically include statements regarding the plans, strategies and objectives of management for future operations, including execution of restructuring plan or plans, and the additional investment in, and disposition of, certain business operations; statements or projections of cost savings, growth rates, profitability, investment levels or other financial items; statements regarding anticipated operational and financial results; and any statements of assumptions underlying any of the foregoing. 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 and political conditions; our and our customers’ ability to obtain financing; the introduction of new products and services offered by us and our competitors; uncertainty of the impact of recently enacted healthcare laws; consolidation of healthcare providers; 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; our ability to successfully execute our mergers and acquisitions strategy or to successfully complete proposed divestitures at expected values and on expected timelines; our ability to implement our plans for the restructuring of our business operations on a timely or cost-effective basis or at all; 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 or to execute cost reduction programs and restructuring and integration plans; increased operating costs, including fuel and other commodity prices; risks involved in maintaining 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 and our customers’ businesses are subject to numerous federal, state and foreign laws and regulations that could impact our and their financial condition and results of operations; 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 World Medical, Inc. 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.

-MORE-

PSSI Reports Results For Fiscal 2012 Fourth Quarter

Page 4

May 10, 2012

PSS WORLD MEDICAL, INC.

Unaudited Condensed Consolidated Statement of Operations

(in millions, except per share and share data)

	For the Three Months Ended						For the Twelve Months Ended
	March 30, 2012			April 1, 2011			March 30, 2012			April 1, 2011
Net sales	$	538.9		$	549.7		$	2,102.0		$	2,034.8
Cost of goods sold		363.1			376.8			1,427.8			1,399.0
Gross profit		175.8			172.9			674.2			635.8
General and administrative expenses		100.7			98.5			393.0			364.7
Selling expenses		39.3			36.2			147.8			137.5
Income from operations		35.8			38.2			133.4			133.6
Other (expense) income:
Interest expense		(6.1	)		(4.5	)		(20.1	)		(17.1	)
Interest income		—			0.1			0.2			0.3
Other income		0.6			0.7			2.0			2.4
Other expense		(5.5	)		(3.7	)		(17.9	)		(14.4	)
Income before provision for income taxes		30.3			34.5			115.5			119.2
Provision for income taxes		10.3			12.9			41.1			44.5
Net income		20.0			21.6			74.4			74.7
Net income attributable to noncontrolling interest		—			—			0.1			0.2
Net income attributable to PSS World Medical, Inc.	$	20.0		$	21.6		$	74.3		$	74.5
Earnings per common share attributable to PSS World Medical, Inc.:
Basic	$	0.40		$	0.40		$	1.43		$	1.35
Diluted	$	0.38		$	0.38		$	1.38		$	1.32
Weighted average shares (in thousands):
Basic		50,208			54,548			51,998			54,996
Diluted		52,178			56,789			53,989			56,546

-MORE-

PSSI Reports Results For Fiscal 2012 Fourth Quarter

Page 5

May 10, 2012

PSS WORLD MEDICAL, INC.

Unaudited Condensed Consolidated Balance Sheets

(in millions except share data)

	March 30, 2012		April 1, 2011
ASSETS
Current Assets:
Cash and cash equivalents	$	163.2	$	29.3
Accounts receivable, net		257.7		247.2
Inventories		213.6		213.2
Deferred tax assets, net		17.0		20.5
Prepaid expenses and other		34.2		34.4
Total current assets		685.7		544.6
Property and equipment, net		101.0		102.4
Other Assets:
Goodwill		201.8		167.1
Intangibles, net		54.6		41.9
Other		112.9		95.7
Total assets	$	1,156.0	$	951.7
LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable	$	146.5	$	128.1
Accrued expenses		41.8		37.2
Current portion of long-term debt		—		0.8
Other		12.0		33.1
Total current liabilities		200.3		199.2
Revolving line of credit and long-term debt, excluding current portion		454.9		195.7
Other noncurrent liabilities		110.0		110.2
Total liabilities		765.2		505.1
Equity:
PSS World Medical, Inc. 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, 50,312,323 and 55,465,600 shares issued and outstanding as of March 30, 2012, and April 1, 2011, respectively		0.5		0.5
Additional paid-in capital		—		122.9
Retained earnings		386.6		319.6
Total PSS World Medical, Inc. shareholders’ equity		387.1		443.0
Noncontrolling interest		3.7		3.6
Total equity		390.8		446.6
Total liabilities and equity	$	1,156.0	$	951.7

-MORE-

PSSI Reports Results For Fiscal 2012 Fourth Quarter

Page 6

May 10, 2012

PSS WORLD MEDICAL, INC.

Unaudited Condensed Consolidated Statements of Cash Flows

(in millions)

	Three Months Ended						Twelve Months Ended
	March 30, 2012			April 1, 2011			March 30, 2012			April 1, 2011
Cash Flows From Operating Activities:
Net income	$	20.0		$	21.6		$	74.4		$	74.7
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		7.0			6.8			26.8			25.1
Provision (benefit) for deferred income taxes		2.8			2.5			(1.3	)		3.3
Amortization of debt discount and issuance costs		2.7			2.4			10.3			9.4
Amortization of intangible assets		2.5			1.9			8.9			6.4
Noncash compensation expense		1.4			3.0			7.3			10.2
Provision for doubtful accounts		1.2			—			2.9			1.7
Provision for deferred compensation		0.3			0.3			1.2			1.4
Gain on sales of property and equipment		(0.1	)		—			(0.1	)		—
Changes in operating assets and liabilities, net of effects from business combinations:
Accounts receivable, net		(4.5	)		(4.2	)		0.1			(7.3	)
Inventories		48.5			29.5			4.1			12.3
Prepaid expenses and other current assets		7.3			(1.2	)		0.8			(6.4	)
Other assets		(0.7	)		(1.7	)		(10.8	)		(8.1	)
Accounts payable		(19.2	)		(24.2	)		8.8			(8.2	)
Accrued expenses and other liabilities		(6.9	)		5.2			(5.1	)		1.8
Net cash provided by operating activities		62.3			41.9			128.3			116.3
Cash Flows From Investing Activities:
Payments for business acquisitions, net of cash acquired		(25.5	)		(45.7	)		(65.1	)		(65.9	)
Capital expenditures		(6.3	)		(5.2	)		(23.9	)		(18.2	)
Payment for investment in variable interest entity, net of cash		—			—			—			(3.3	)
Other		0.1			—			(0.2	)		(0.7	)
Net cash used in investing activities		(31.7	)		(50.9	)		(89.2	)		(88.1	)
Cash Flows From Financing Activities:
Proceeds from issuance of debt		250.0			—			250.0			—
Repayments on the revolving line of credit		(195.5	)		(89.3	)		(405.1	)		(106.4	)
Proceeds from borrowings on the revolving line of credit		79.3			89.3			405.1			106.4
Purchase and retirement of common stock		(24.7	)		—			(140.4	)		(54.8	)
Payment of contingent consideration on business acquisitions		(5.5	)		—			(9.5	)		(0.9	)
Payment for debt issue costs		(4.6	)		—			(6.5	)		—
Proceeds from exercise of stock options		0.8			0.9			1.4			2.1
Excess tax benefits from share-based compensation arrangements		0.6			1.1			2.1			3.2
Payments under capital lease obligations		(0.2	)		(0.2	)		(0.8	)		(0.8	)
Other		—			(0.4	)		(1.5	)		(0.5	)
Net cash provided by (used in) financing activities		100.2			1.4			94.8			(51.7	)
Net increase (decrease) in cash and cash equivalents		130.8			(7.6	)		133.9			(23.5	)
Cash and cash equivalents, beginning of period		32.4			36.9			29.3			52.8
Cash and cash equivalents, end of period	$	163.2		$	29.3		$	163.2		$	29.3

-END-

EX-99.2

Exhibit 99.2

Financial Supplement

For the Fourth Quarter of Fiscal Year 2012 ending March 30, 2012

PSS World Medical, Inc.

As of March 30, 2012

Current Fiscal Year Unaudited Consolidated Income Statement

(in thousands, except per share data)

	2012
	Q1			Q2			Q3			Q4			YTD
Net sales	$	513,682		$	521,756		$	527,695		$	538,870		$	2,102,002
Cost of goods sold		352,925			354,653			357,199			363,023			1,427,799
Gross profit		160,757			167,103			170,496			175,847			674,203
General & administrative expenses		98,998			94,511			98,815			100,665			392,990
Selling expenses		35,247			36,325			36,940			39,345			147,858
Income from operations		26,512			36,266			34,741			35,837			133,356
Interest expense		(4,538	)		(4,668	)		(4,826	)		(6,115	)		(20,148	)
Interest income		74			53			25			20			173
Other income		532			437			593			524			2,085
Income from operations before income taxes		22,579			32,088			30,533			30,266			115,465
Provision for income taxes		8,434			11,962			10,403			10,265			41,063
Net income		14,145			20,125			20,130			20,001			74,402
Net income attributable to noncontrolling interest		(44	)		94			(2	)		35			82
Net income attributable to PSS World Medical, Inc.	$	14,189		$	20,031		$	20,133		$	19,966		$	74,319
Earnings per common share attributable to PSS World Medical, Inc.:
Basic	$	0.26		$	0.38		$	0.39		$	0.40		$	1.43
Diluted	$	0.25		$	0.37		$	0.38		$	0.38		$	1.38
Weighted average common shares outstanding:
WASO - Basic		54,166			52,309			51,308			50,208			51,998
WASO - Diluted		57,388			53,956			52,435			52,178			53,989
Net sales by segment:
Physician Business	$	366,308		$	376,870		$	379,263		$	390,277		$	1,512,719
Extended Care Business		146,926			144,237			147,994			148,230			587,388
Corporate Shared Services		448			648			438			362			1,896
	$	513,682		$	521,756		$	527,695		$	538,870		$	2,102,002
Selling days:		64			63			62			64			253
Net sales per selling day:
Physician Business	$	5,724		$	5,982		$	6,117		$	6,098		$	5,979
Extended Care Business		2,296			2,289			2,387			2,316			2,322
Corporate Shared Services		7			10			7			6			7
	$	8,026		$	8,282		$	8,511		$	8,420		$	8,308

Numbers may not foot due to rounding differences

PSS World Medical, Inc.

As of March 30, 2012

Consolidated Income Statement Trend

(in thousands, except per share data)

	Fiscal Year 2009															Fiscal Year 2010															Fiscal Year 2011
	Q1			Q2			Q3			Q4			Total			Q1			Q2			Q3			Q4			Total			Q1			Q2			Q3			Q4			Total
Net sales	$	472,215		$	491,603		$	519,145		$	469,728		$	1,952,691		$	493,554		$	561,976		$	502,764		$	496,877		$	2,055,171		$	478,856		$	496,188		$	510,087		$	549,658		$	2,034,789
Cost of goods sold		333,283			344,347			364,282			328,868			1,370,781			347,581			389,404			348,064			342,427			1,427,476			331,010			339,063			352,192			376,753			1,399,018
Gross profit		138,931			147,255			154,863			140,860			581,910			145,974			172,571			154,700			154,449			627,695			147,846			157,125			157,895			172,905			635,771
General and administrative expenses		89,634			90,689			89,426			82,728			352,478			91,638			97,208			89,439			92,586			370,871			89,986			87,399			88,860			98,505			364,749
Selling expenses		31,266			32,161			33,721			31,356			128,505			32,687			36,728			33,249			33,178			135,842			32,610			34,298			34,330			36,229			137,466
Income from operations		18,031			24,405			31,715			26,776			100,927			21,649			38,635			32,012			28,685			120,981			25,250			35,429			34,706			38,171			133,556
Interest expense		(3,203	)		(5,300	)		(7,409	)		(6,247	)		(22,159	)		(4,261	)		(4,532	)		(4,214	)		(4,288	)		(17,295	)		(4,137	)		(4,226	)		(4,243	)		(4,515	)		(17,121	)
Interest income		122			842			1,034			305			2,304			134			95			117			30			376			66			46			33			139			284
Other income		608			520			877			638			2,643			3,995			452			741			879			6,068			544			412			852			698			2,506
Income from ops before income taxes		15,559			20,467			26,218			21,472			83,716			21,517			34,650			28,657			25,306			110,130			21,723			31,661			31,348			34,493			119,225
Provision for income taxes		6,187			8,104			10,230			7,709			32,229			8,213			12,964			10,736			8,854			40,768			7,892			12,016			11,757			12,895			44,560
Net income		9,372			12,363			15,989			13,763			51,486			13,304			21,686			17,921			16,452			69,363			13,831			19,644			19,592			21,598			74,664
Net income attributable to noncontrolling interest		—			—			—			—			—			—			—			—			—			—			78			87			42			(28	)		179
Net income attributable PSS World Medical, Inc.	$	9,372		$	12,363		$	15,989		$	13,763		$	51,486		$	13,304		$	21,686		$	17,921		$	16,452		$	69,363		$	13,753		$	19,557		$	19,549		$	21,626		$	74,485
Earnings per common share attributable to PSS World Medical, Inc.:
Basic	$	0.15		$	0.21		$	0.27		$	0.23		$	0.86		$	0.23		$	0.37		$	0.31		$	0.29		$	1.20		$	0.25		$	0.36		$	0.36		$	0.40		$	1.35
Diluted	$	0.15		$	0.20		$	0.27		$	0.23		$	0.85		$	0.23		$	0.37		$	0.30		$	0.28		$	1.18		$	0.24		$	0.35		$	0.35		$	0.38		$	1.32
Weighted average common shares outstanding:
Basic		61,003			59,941			59,481			59,307			59,937			58,380			58,566			58,522			56,627			58,029			56,093			54,985			54,357			54,548			54,996
Diluted		61,723			60,921			60,322			59,801			60,696			58,859			59,390			59,390			58,115			58,943			57,924			55,887			55,567			56,789			56,546
Net Sales by Segment:
Physician Business	$	331,386		$	341,761		$	357,269		$	326,966		$	1,357,382		$	342,292		$	398,531		$	352,961		$	344,039		$	1,437,823		$	327,403		$	343,403		$	357,298		$	396,908		$	1,425,012
Extended Care Business		140,406			149,485			161,874			142,743			594,509			150,381			162,970			149,400			152,187			614,937			151,202			152,173			152,263			152,111			607,750
Corporate Shared Services		423			356			2			19			800			882			475			403			651			2,411			251			612			526			639			2,028
	$	472,215		$	491,603		$	519,145		$	469,728		$	1,952,691		$	493,554		$	561,976		$	502,764		$	496,877		$	2,055,171		$	478,856		$	496,188		$	510,087		$	549,658		$	2,034,789
Selling Days:		64			63			66			60			253			64			68			61			65			258			64			63			61			65			253
Net Sales Per Selling Day:
Physician Business	$	5,178		$	5,425		$	5,413		$	5,449		$	5,365		$	5,348		$	5,861		$	5,786		$	5,293		$	5,573		$	5,116		$	5,451		$	5,857		$	6,106		$	5,632
Extended Care Business		2,194			2,373			2,453			2,379			2,350			2,350			2,397			2,449			2,341			2,383			2,363			2,415			2,496			2,340			2,402
Corporate Shared Services		7			6			—			—			3			14			7			7			10			9			4			10			9			10			8
	$	7,378		$	7,803		$	7,866		$	7,829		$	7,718		$	7,712		$	8,264		$	8,242		$	7,644		$	7,966		$	7,482		$	7,876		$	8,362		$	8,456		$	8,043

Numbers may not foot due to rounding differences

PSS World Medical, Inc.

As of March 30, 2012

Store Brands* - Net Sales

(in thousands)

	Fiscal Year
	2012										2011
	Q1		Q2		Q3		Q4		YTD		Q1		Q2		Q3		Q4		YTD
Consolidated Store Brand Sales	$	87,734	$	90,703	$	92,043	$	94,785	$	365,266	$	80,555	$	82,152	$	84,551	$	86,978	$	334,237

	Fiscal Year
	2008		2009		2010		2011		2012
Consolidated Store Brand Sales	$	234,810	$	281,536	$	323,602	$	334,237	$	365,266

* 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

PSS World Medical, Inc.

As of March 30, 2012

Unaudited Segment Information

(in thousands)

	Three Months Ended						Twelve Months Ended
	March 30, 2012			April 1, 2011			March 30, 2012			April 1, 2011
NET SALES:
Physician Business	$	390,277		$	396,908		$	1,512,719		$	1,425,012
Extended Care Business		148,230			152,111			587,388			607,750
Corporate Shared Services		362			639			1,896			2,028
Total net sales	$	538,870		$	549,658		$	2,102,002		$	2,034,789
SELLING DAYS:		64			65			253			253
NET SALES PER SELLING DAY:
Physician Business	$	6,098		$	6,106		$	5,979		$	5,632
Extended Care Business		2,316			2,340			2,322			2,402
Corporate Shared Services		6			10			7			8
Total net sales per selling day	$	8,420		$	8,456		$	8,308		$	8,043
INCOME FROM OPERATIONS:
Physician Business	$	37,212		$	38,334		$	144,767		$	137,995
Extended Care Business		5,629			10,783			27,620			37,782
Corporate Shared Services		(7,004	)		(10,945	)		(39,031	)		(42,221	)
Total income from operations	$	35,837		$	38,171		$	133,356		$	133,556
DEPRECIATION:
Physician Business	$	2,873		$	2,695		$	11,100		$	9,515
Extended Care Business		1,445			1,300			5,341			5,024
Corporate Shared Services		2,701			2,768			10,406			10,525
Total depreciation	$	7,019		$	6,763		$	26,847		$	25,065
AMORTIZATION OF INTANGIBLE AND OTHER ASSETS:
Physician Business	$	1,672		$	1,080		$	5,798		$	2,956
Extended Care Business		679			596			2,491			2,757
Corporate Shared Services		117			174			640			665
Total amortization of intangible and other assets	$	2,469		$	1,850		$	8,930		$	6,378
PROVISION FOR DOUBTFUL ACCOUNTS:
Physician Business	$	644		$	138		$	2,288		$	1,792
Extended Care Business		582			(145	)		571			(51	)
Total provision for doubtful accounts	$	1,226		$	(7	)	$	2,858		$	1,741
INTEREST EXPENSE:
Total interest expense	$	6,115		$	4,515		$	20,148		$	17,121
INTEREST INCOME:
Physician Business	$	1		$	—		$	14		$	—
Extended Care Business		8			115			108			178
Corporate Shared Services		12			24			50			106
Total interest and investment income	$	20		$	139		$	173		$	284
PROVISION (BENEFIT) FOR INCOME TAXES:
Physician Business	$	12,444		$	13,608		$	50,248		$	49,951
Extended Care Business		1,168			3,312			6,938			11,212
Corporate Shared Services		(3,347	)		(4,024	)		(16,122	)		(16,603	)
Total provision for income taxes	$	10,265		$	12,895		$	41,063		$	44,560

Numbers may not foot due to rounding differences

PSS World Medical, Inc.

As of March 30, 2012

Current Fiscal Year Unaudited Consolidated Balance Sheets

(in thousands)

	As of
	July 1, 2011		September 30, 2011		December 30, 2011		March 30, 2012
ASSETS
Cash	$	22,291	$	34,848	$	32,438	$	163,152
Accounts receivable, net		236,967		244,615		249,597		257,700
Inventory, net		222,660		229,400		260,368		213,586
Deferred tax assets		19,668		11,374		15,221		16,962
Other current assets		40,269		39,228		43,765		34,292
Total current assets		541,854		559,465		601,389		685,692
Property and equipment, net		100,620		100,225		101,687		101,036
Goodwill		167,386		173,958		188,905		201,752
Intangibles, net		40,012		40,330		45,967		54,600
Other long-term assets		96,829		90,803		101,500		112,890
Total assets	$	946,700	$	964,780	$	1,039,447	$	1,155,970
LIABILITIES & EQUITY
Accounts payable	$	145,495	$	151,478	$	160,505	$	146,533
Accrued expenses		41,556		41,787		45,250		41,753
Current portion of long term debt		574		380		192		—
Revolving line of credit(a)		20,500		50,000		—		—
Other current liabilities		20,761		22,418		17,978		12,041
Total current liabilities		228,886		266,063		223,925		200,327
Revolving line of credit and long-term debt, excluding current portion(a)		197,904		200,185		318,882		454,916
Other non-current liabilities		113,407		93,478		103,821		109,916
Total liabilities		540,196		559,727		646,629		765,159
Total PSS World Medical, Inc. shareholders’ equity		402,948		401,403		389,171		387,129
Noncontrolling interest		3,556		3,650		3,647		3,682
Total equity		406,504		405,053		392,819		390,811
Total liabilities and equity	$	946,700	$	964,780	$	1,039,447	$	1,155,970

Numbers may not foot due to rounding differences

PSS World Medical, Inc.

As of March 30, 2012

Consolidated Balance Sheets Trend

(in thousands)

	Fiscal Year 2009								Fiscal Year 2010								Fiscal Year 2011
	Jun-08		Sep-08		Dec-08		Mar-09		Jun-09		Sep-09		Dec-09		Mar-10		Jun-10		Sep-10		Dec-10		Mar-11
ASSETS
Cash	$	29,840	$	226,055	$	214,709	$	82,031	$	129,631	$	130,089	$	114,056	$	52,751	$	59,081	$	22,949	$	36,912	$	29,348
Investment in available for sale securities		—		—		—		10,592		—		—		—		—		—		—		—		—
Accounts receivable, net		227,661		240,806		232,894		230,361		230,391		257,968		233,602		227,888		222,544		232,014		239,082		247,229
Inventory, net		192,707		199,337		239,940		207,593		196,160		212,813		230,725		218,911		217,500		220,846		240,211		213,211
Deferred tax assets		6,805		—		—		8,059		8,250		5,602		11,986		15,629		15,101		19,514		17,789		20,533
Other current assets		26,157		22,163		23,229		23,819		24,385		30,854		33,980		26,485		27,753		40,979		32,693		34,285
Total current assets		483,170		688,361		710,772		562,456		588,817		637,326		624,349		541,664		541,979		536,301		566,687		544,606
Property and equipment, net		92,803		96,849		97,113		101,205		103,552		105,499		106,956		105,220		103,737		101,269		101,958		102,401
Goodwill		112,320		112,392		112,717		112,768		114,255		115,280		120,828		121,772		124,281		128,745		131,364		167,094
Intangibles, net		25,738		24,345		23,102		22,958		22,442		21,604		25,289		24,548		25,242		26,440		30,657		41,879
Investment in available for sale securities		14,231		16,725		15,333		—		—		—		—		—		—		—		—		—
Other long-term assets		67,598		83,055		70,549		59,238		65,065		73,819		77,748		78,862		77,488		84,933		91,881		95,693
Total assets	$	795,860	$	1,021,726	$	1,029,587	$	858,624	$	894,131	$	953,528	$	955,170	$	872,066	$	872,727	$	877,688	$	922,547	$	951,672
	Fiscal Year 2009								Fiscal Year 2010								Fiscal Year 2011
	Jun-08		Sep-08		Dec-08		Mar-09		Jun-09		Sep-09		Dec-09		Mar-10		Jun-10		Sep-10		Dec-10		Mar-11
LIABILITIES & EQUITY
Accounts payable	$	128,656	$	149,674	$	155,133	$	127,300	$	133,781	$	156,966	$	137,676	$	123,970	$	125,155	$	137,431	$	149,698	$	128,057
Accrued expenses		38,055		50,816		43,170		52,718		46,196		43,248		48,051		50,253		37,830		33,804		40,075		37,175
Current portion of long-term debt		196,116		198,022		199,606		50,937		50,953		50,970		56,321		881		1,190		1,297		1,133		761
Deferred tax liabilities, current		—		6,619		4,492		—		—		—		—		—		—		—		—		—
Other current liabilities		8,102		8,723		9,160		7,956		12,882		13,653		13,122		10,954		25,576		26,574		24,346		33,211
Total current liabilities		370,928		413,855		411,560		238,910		243,812		264,837		255,169		186,058		189,751		199,107		215,252		199,204
Long-term debt		706		177,650		179,395		180,965		182,654		184,530		186,153		187,941		189,746		191,667		193,645		195,662
Other long-term liabilities		68,975		64,763		56,503		60,719		70,323		79,896		86,674		90,053		77,748		86,420		92,940		110,281
Total liabilities		440,610		656,268		647,459		480,594		496,789		529,263		527,996		464,052		457,245		477,193		501,837		505,146
Total PSS World Medical, Inc. shareholders’ equity		355,250		365,458		382,127		378,030		397,342		424,265		427,174		408,014		412,344		397,270		417,082		442,926
Noncontrolling interest		—		—		—		—		—		—		—		—		3,138		3,225		3,628		3,600
Total equity		355,250		365,458		382,127		378,030		397,342		424,265		427,174		408,014		415,482		400,495		420,710		446,526
Total liabilities & equity	$	795,860	$	1,021,726	$	1,029,587	$	858,624	$	894,131	$	953,528	$	955,170	$	872,066	$	872,727	$	877,688	$	922,547	$	951,672

Numbers may not foot due to rounding differences

PSS World Medical, Inc.

As of March 30, 2012

Current Fiscal Year Unaudited Operating Highlights

(in millions)

	Three Months Ended						Twelve Months Ended
	March 30,			April 1,			March 30,			April 1,
	2012			2011			2012			2011
Net sales:
Physician Business	$	390.3		$	396.9		$	1,512.7		$	1,425.0
Extended Care Business		148.2			152.1			587.4			607.8
Corporate Shared Services		0.4			0.6			1.9			2.0
Total net sales	$	538.9		$	549.7		$	2,102.0		$	2,034.8
Income from operations:
Physician Business	$	37.2		$	38.3		$	144.8		$	138.0
Extended Care Business		5.6			10.8			27.6			37.8
Corporate Shared Services		(7.0	)		(10.9	)		(39.0	)		(42.2	)
Total income from operations	$	35.8		$	38.2		$	133.4		$	133.6
EBITDA(b)	$	45.8		$	47.5		$	171.2		$	167.5
Income from operations, as a percentage of net sales		6.7	%		6.9	%		6.3	%		6.6	%
Consolidated Return on Committed Capital (“ROCC”)(c)		35.7	%		39.7	%		34.8	%		35.5	%
Selling Days		64			65			253			253
Net Sales Per Selling Day (in thousands):
Physician Business	$	6,098		$	6,106		$	5,979		$	5,632
Extended Care Business		2,316			2,340			2,322			2,402
Corporate Shared Services		6			10			7			8
Total Net Sales Per Selling Day	$	8,420		$	8,456		$	8,308		$	8,043
Net Sales Per Selling Day Growth Rate:
Physician Business		(0.1	%)					6.2	%
Extended Care Business		(1.0	%)					(3.4	%)
Total Net Sales Per Selling Day Growth Rate		(0.4	%)					3.3	%

	Annualized
	March 30, 2012			April 1, 2011
DSO(d)
Physician Business		40.7			38.7
Extended Care Business		46.3			47.3
DOH(e)
Physician Business		53.7			54.8
Extended Care Business		66.8			62.7
DIP(f)
Physician Business		37.2			37.5
Extended Care Business		24.6			21.3
Cash Conversion Days(g)
Physician Business		57.3			56.0
Extended Care Business		88.4			88.7
	As of
	March 30, 2012			April 1, 2011
Operational working capital(h)	$	324.8		$	332.4
Net debt:
Convertible senior notes	$	204.9		$	195.6
Senior notes		250.0			—
Other debt		—			0.8
Less: Cash and cash equivalents		(163.2	)		(29.3	)
Net debt	$	291.7		$	167.1

Numbers may not foot due to rounding differences

PSS World Medical, Inc.

March 30, 2012

Non-GAAP Reconciliations

(in millions)

Consolidated Net Sales Excluding Acquisitions

	Twelve Months Ended
	March 30, 2012		April 01, 2011		Percent Change
Consolidated Net Sales	$	2,102.0	$	2,034.8		3.3	%
Less: Impact of Acquisitions
2012 Acquisitions		16.6		—
2011 Acquisitions		88.2		45.7
Net Sales Adjusted for Acquisitions	$	1,997.2	$	1,989.1		0.4	%

Consolidated Selling and General & Administrative Expenses Excluding Acquisitions

	Three Months Ended							Twelve Months Ended
	March 30, 2012		April 1, 2011		Percent Change			March 30, 2012		April 1, 2011		Percent Change
Consolidated Selling and General & Administrative Expenses	$	140.0	$	134.7		3.9	%	$	540.8	$	502.2		7.7	%
Less: Impact of Acquisitions
2012 Acquisitions		4.2		—					5.8		—
2011 Acquisitions		9.9		8.0					36.7		12.0
Selling and General & Administrative Expenses Adjusted for Acquisitions	$	125.9	$	126.7		1.0	%	$	498.3	$	490.2		1.7	%

Numbers may not foot due to rounding differences

PSS World Medical, Inc.

As of March 30, 2012

Selling Days Calendar FY11-FY13

FY2011				FY2012				FY2013
Closing Date		Selling Days		Closing Date		Selling Days		Closing Date		Selling Days		Notes
	30-Apr		20		29-Apr		20		27-Apr		20		A
	28-May		20		27-May		20		25-May		20		A
	2-Jul		24		1-Jul		24		29-Jun		24		B
	Q1		64				64				64
	30-Jul		19		29-Jul		19		27-Jul		19		A
	27-Aug		20		26-Aug		20		31-Aug		25		A
	1-Oct		24		30-Sep		24		28-Sep		19		B
	Q2		63				63				63
	29-Oct		20		28-Oct		20		26-Oct		20		A
	26-Nov		18		25-Nov		18		30-Nov		23		A
	31-Dec		23		30-Dec		24		28-Dec		19		B
	Q3		61				62				62
	28-Jan		20		27-Jan		19		25-Jan		19		A
	25-Feb		20		24-Feb		20		22-Feb		20		A
	1-Apr		25		30-Mar		25		29-Mar		25		B
	Q4		65				64				64
	Total		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

PSS World Medical, Inc.

March 30, 2012

EBITDA Calculation

Current Fiscal Year - Unaudited

(in thousands)

	2012
	Q1			Q2			Q3			Q4			YTD
Net Income	$	14,145		$	20,125		$	20,130		$	20,001		$	74,402
Plus:
Interest expense		4,538			4,668			4,826			6,115			20,148
Provision for income taxes		8,434			11,962			10,403			10,265			41,063
Depreciation		6,443			6,641			6,744			7,019			26,847
Amortization of intangible assets		2,109			2,108			2,244			2,469			8,930
Less:
Interest income		(74	)		(53	)		(25	)		(20	)		(173	)
EBITDA	$	35,595		$	45,452		$	44,322		$	45,848		$	171,217

Numbers may not foot due to rounding differences

PSS World Medical, Inc.

March 30, 2012

EBITDA Calculation

(in thousands)

	Fiscal Year 2009															Fiscal Year 2010															Fiscal Year 2011
	Q1			Q2			Q3			Q4			Total			Q1			Q2			Q3			Q4			Total			Q1			Q2			Q3			Q4			Total
Net income	$	9,372		$	12,363		$	15,989		$	13,763		$	51,486		$	13,304		$	21,686		$	17,921		$	16,452		$	69,363		$	13,831		$	19,644		$	19,592		$	21,598		$	74,664
Plus:
Interest expense		3,203			5,300			7,409			6,247			22,159			4,261			4,532			4,214			4,288			17,295			4,137			4,226			4,243			4,515			17,121
Provision for income taxes		6,187			8,104			10,230			7,709			32,229			8,213			12,964			10,736			8,854			40,768			7,892			12,016			11,757			12,895			44,560
Depreciation		4,830			4,912			5,116			5,144			20,002			5,245			5,256			5,558			5,881			21,940			5,942			6,100			6,260			6,763			25,065
Amortization of intangible assets		1,344			1,553			1,264			1,328			5,489			1,252			1,190			1,235			1,444			5,121			1,444			1,501			1,584			1,850			6,378
Less:
Interest and investment income		(122	)		(842	)		(1,034	)		(305	)		(2,304	)		(134	)		(95	)		(117	)		(30	)		(376	)		(66	)		(46	)		(33	)		(139	)		(284	)
EBITDA	$	24,813		$	31,390		$	38,973		$	33,886		$	129,062		$	32,140		$	45,533		$	39,547		$	36,890		$	154,110		$	33,179		$	43,441		$	43,402		$	47,483		$	167,504

Numbers may not foot due to rounding differences

PSS World Medical, Inc.

As of March 30, 2012

Consolidated Return on Committed Capital (ROCC)

Current Fiscal Year - Unaudited

(in thousands)

	2012
	Q1			Q2			Q3			Q4			Total Fiscal 2012
Consolidated Return on Committed Capital:
Quarterly Average Committed Capital (i)	$	400,211		$	401,138		$	425,533		$	435,403
Annual Average Committed Capital													$	415,425
Committed Capital - Current Quarter		395,794			406,482			444,583			426,223			426,223
Committed Capital - Previous Quarter		404,628			395,794			406,482			444,583			444,583
Committed Capital - Previous Year End														404,628
Return on Committed Capital - Quarterly (j)		29.1	%		38.7	%		35.3	%		35.7	%
Return on Committed Capital - Annual														34.8	%
Return:
Net income		14,145			20,125			20,130			20,001			74,402
Add:
Provision for income taxes		8,434			11,962			10,403			10,265			41,063
Interest expense		4,538			4,668			4,826			6,115			20,148
Amortization		2,109			2,108			2,244			2,469			8,930
Interest and investment income		(74	)		(53	)		(25	)		(20	)		(173	)
	$	29,152		$	38,811		$	37,578		$	38,829		$	144,370
Committed Capital:
Total assets	$	946,700		$	964,780		$	1,039,447		$	1,155,970		$	1,155,970
Less assets excluded:
Cash		(22,291	)		(34,848	)		(32,438	)		(163,152	)		(163,152	)
Goodwill and intangibles, net		(207,397	)		(214,288	)		(234,872	)		(256,352	)		(256,352	)
Total liabilities		(540,196	)		(559,727	)		(646,629	)		(765,159	)		(765,159	)
Plus liabilities excluded:
Current debt		21,074			50,380			192			—			—
Long-term debt		197,904			200,185			318,882			454,916			454,916
	$	395,794		$	406,482		$	444,583		$	426,223		$	426,223

Numbers may not foot due to rounding differences

PSS World Medical, Inc.

As of March 30, 2012

Consolidated Return on Committed Capital (ROCC) Trend

(in thousands)

	Fiscal Year 2009															Fiscal Year 2010															Fiscal Year 2011
	Q1			Q2			Q3			Q4			Total			Q1			Q2			Q3			Q4			Total			Q1			Q2			Q3			Q4			Total
Consolidated Return on Committed Capital:
Quarterly Average Committed Capital(i)	$	390,439		$	381,257		$	394,469		$	401,387					$	378,397		$	378,706		$	401,134		$	403,620					$	397,789		$	406,570		$	415,941		$	410,592
Annual Average Committed Capital(k)													$	394,438														$	394,969														$	401,196
Committed Capital - Current Quarter		384,175			378,339			410,600			392,174						364,619			392,792			409,475			397,765						397,814			415,325			416,556			404,628			404,628
Committed Capital - Previous Quarter		396,702			384,175			378,339			410,600						392,174			364,619			392,792			409,475						397,765			397,814			415,325			416,556			416,556
Committed Capital - Current Year End														392,174															397,765															397,765
Committed Capital - Previous Year End														396,702															392,174															397,765
Return on Committed Capital - Quarterly(j)		20.5	%		27.8	%		34.3	%		28.6	%					28.4	%		42.5	%		33.9	%		30.7	%					27.4	%		36.7	%		35.7	%		39.7	%
Return on Committed Capital - Annual														27.6	%														33.5	%														35.5	%
Return:
Net Income	$	9,372		$	12,363		$	15,989		$	13,763		$	51,486		$	13,304		$	21,686		$	17,921		$	16,452		$	69,363		$	13,831		$	19,644		$	19,592		$	21,598		$	74,664
Add:
Provision for income taxes		6,187			8,104			10,230			7,709			32,229			8,213			12,964			10,736			8,854			40,768			7,892			12,016			11,757			12,895			44,560
Interest expense		3,203			5,300			7,409			6,247			22,159			4,261			4,532			4,214			4,288			17,295			4,137			4,226			4,243			4,515			17,121
Amortization		1,344			1,553			1,264			1,328			5,489			1,252			1,190			1,235			1,444			5,121			1,444			1,501			1,584			1,850			6,378
Interest and investment income		(122	)		(842	)		(1,034	)		(305	)		(2,304	)		(134	)		(95	)		(117	)		(30	)		(376	)		(66	)		(46	)		(33	)		(139	)		(284	)
	$	19,983		$	26,478		$	33,856		$	28,742		$	109,059		$	26,895		$	40,277		$	33,989		$	31,009		$	132,170		$	27,238		$	37,341		$	37,141		$	40,719		$	142,440
Committed Capital:
Total assets	$	795,860		$	1,021,726		$	1,029,586		$	858,624		$	858,624		$	894,131		$	953,528		$	955,170		$	872,065		$	872,065		$	872,727		$	877,688		$	922,547		$	951,672		$	951,672
Less assets excluded:
Cash		(29,840	)		(226,055	)		(214,709	)		(82,031	)		(82,031	)		(129,631	)		(130,089	)		(114,056	)		(52,751	)		(52,751	)		(59,081	)		(22,949	)		(36,912	)		(29,348	)		(29,348	)
Goodwill and intangibles, net		(138,058	)		(136,736	)		(135,820	)		(135,726	)		(135,726	)		(136,696	)		(136,884	)		(146,117	)		(146,320	)		(146,320	)		(149,523	)		(155,185	)		(162,020	)		(208,973	)		(208,973	)
Total liabilities		(440,610	)		(656,268	)		(647,459	)		(480,594	)		(480,594	)		(496,792	)		(529,263	)		(527,996	)		(464,052	)		(464,052	)		(457,246	)		(477,193	)		(501,837	)		(505,146	)		(505,146	)
Plus liabilities excluded:
Current debt		196,116			198,022			199,606			50,937			50,937			50,953			50,970			56,321			881			881			1,190			1,297			1,133			761			761
Long-term debt		706			177,650			179,395			180,965			180,965			182,654			184,530			186,153			187,941			187,941			189,746			191,667			193,645			195,662			195,662
	$	384,175		$	378,339		$	410,600		$	392,174		$	392,174		$	364,619		$	392,792		$	409,475		$	397,765		$	397,765		$	397,814		$	415,325		$	416,556		$	404,628		$	404,628

Numbers may not foot due to rounding differences

PSS World Medical, Inc.

Footnotes

(a) During the nine months ended December 30, 2011, 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 December 30, 2011. Outstanding borrowings prior to the amendment were recorded within current liabilities on the Consolidated Balance Sheets.

(b) 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.

(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. 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. 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.

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

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

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

EX-99.3

Exhibit 99.3

Contact: Jenny R. Kobin

Vice President, Investor Relations

904-332-3287

PSS WORLD MEDICAL LAUNCHES STRATEGIC TRANSFORMATION PLAN

• Focused on four newly structured high-growth business verticals – Physician, Laboratory, In-Office Dispensing and Home Care & Hospice

• Will seek to divest two business units serving skilled nursing facilities and specialty dental practices

• Accelerates investment in selling and marketing resources to reach integrated health systems and community health centers

• Announces three acquisitions: two premier laboratory service companies and one physician office dispensing company, adding approximately $120 million of annual revenues

Jacksonville, Florida (May 10, 2012) – PSS World Medical, Inc. (NasdaqGS:PSSI) announced today that its Board of Directors has approved a strategic restructuring plan designed to transform the Company, focusing its efforts and investments on what it believes will be the fastest growing segments of non-acute, alternate site healthcare in the U.S. Specifically, the Company will focus on physician, laboratory, in-office dispensing, and the home care and hospice markets. The Company will seek to divest its skilled nursing business and a specialty dental business.

President and Chief Executive Officer, Gary A. Corless, commented, “As the U.S. healthcare system deals with unprecedented change and uncertainty, it is imperative that PSS be part of a solution, which we are referring to as Healthcare 2.0. The transformation we are undertaking will reposition us to better serve those front line caregivers, who improve patient outcomes through the delivery of high quality, cost effective care, in settings preferred by patients and payers. We will help our nation’s providers adapt to an increasingly complex and challenging environment by delivering on our purpose to strengthen the clinical success and financial health of caregivers by solving their biggest problems.

“This is a unique opportunity to transform our business at an accelerated pace to meet the changing needs of the healthcare market by leveraging our strengths, our position and our expertise while enhancing shareholder value. We must now increase our investment in key strategic businesses and narrow our focus to customers who can best benefit from our expertise and service model. By focusing on these four business verticals, we will better support caregivers’ efforts to detect, diagnose, and treat at the point of care in a convenient setting,” continued Corless.

“For shareholders, we believe this new direction will provide accelerated growth and higher returns. This strategic transformation of our Company, which will occur over the next several years, will enable us to provide attractive returns to our shareholders, with a target of doubling revenues and increasing operating margins to greater than 10%,” Corless concluded.

David M. Bronson, Executive Vice President and Chief Financial Officer, commented, “The Company approaches this strategic transformation from a position of financial strength and flexibility. We are excited to announce definitive agreements to acquire three companies, InfoLab, ProLabs and Physician Partners, that are expected to be accretive in fiscal year 2013 and add annual revenues of approximately $120 million. An aggressive, focused acquisition strategy will continue to be a key part of the strategic transformation plan we are announcing today.”

“This plan will also include the integration of all our warehouse operations into one common distribution infrastructure, as well as a redesign of our shared service and field support functions. These efforts are expected to significantly reduce operating costs while streamlining decision making and improving service. We want to assure customers in both of our current businesses, physician and extended care, that they will experience no immediate changes. Our salesforce, delivery professionals, customer service representatives, and other customer facing team members will continue to serve customers as usual.”

Additional information regarding today’s announcement will be provided in the following two upcoming events:

• PSS will host a conference call and live webcast today, Thursday, May 10, 2012 at 8:30 a.m. ET, to discuss the financial results for the fourth quarter and fiscal year ended March 30, 2012, and the strategic transformation plans. In addition, an online replay will be available approximately one hour following the conclusion of the live broadcast.

• PSS will host and webcast its annual Investor Day meeting in New York City on Thursday, May 24, 2012, from 8:00-10:00 a.m. ET to provide further information on the strategic transformation and implications for the Company’s near-term and long-term strategic and financial outlook.

A link to these events can be found in the Investor Relations section of the Company’s website, www.pssworldmedical.com, under the heading “Events & Presentations.”

PSS World Medical, Inc. markets and distributes medical products to physicians, elder care providers and alternate-site healthcare providers throughout the United States. Since its inception in 1983, PSS has become a leader in the market segments that it serves with a focused approach to customer service and operational excellence. The Company’s stated purpose is to strengthen the clinical success and financial health of caregivers by solving their biggest problems.

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, and specifically include statements regarding the plans, strategies and objectives of management for future operations, including execution of restructuring plan or plans, and the additional investment in, and disposition of, certain business operations; statements or projections of cost savings, growth rates, profitability, investment levels or other financial items; statements regarding anticipated operational and financial results; and any statements of assumptions underlying any of the foregoing. 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 and political conditions; our and our customers’ ability to obtain financing; the introduction of new products and services offered by us and our competitors; uncertainty of the impact of recently enacted healthcare laws; consolidation of healthcare providers; 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; our ability to successfully execute our mergers and acquisitions strategy or to successfully complete proposed divestitures at expected values and on expected timelines; our ability to implement our plans for the restructuring of our business operations on a timely or cost-effective basis or at all; 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 or to execute cost reduction programs and restructuring and integration plans; increased operating costs, including fuel and other commodity prices; risks involved in maintaining 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 and our customers’ businesses are subject to numerous federal, state and foreign laws and regulations that could impact our and their financial condition and results of operations; 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 World Medical, Inc. 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.

-END-