8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

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

Date of Report (Date of earliest event reported):  May 12, 2011

PSS WORLD MEDICAL, INC.

(Exact name of Registrant as specified in its charter)

Commission File Number:  0-23832

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

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

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

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

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

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

Item 2.02  Disclosure of Results of Operations and Financial Condition.

Item 7.01  Regulation FD Disclosure.

On May 12, 2011, PSS World Medical, Inc. (the “Company”) issued a press release in which the Company announced its financial results for the three and twelve months ended April 1, 2011.  In this press release, the Company also disclosed fiscal year 2012 financial guidance. This press release is attached as Exhibit 99.1 to this report and is incorporated herein by reference.  In connection with the press release, the Company has also made available certain supplemental financial information (the “Financial Supplement”) for the three and twelve months ended April 1, 2011, which may be found on the Company’s website at www.pssd.com.  This Financial Supplement is attached as Exhibit 99.2 to this report and is incorporated herein by reference.

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

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

Item 9.01  Financial Statements and Exhibits.

Exhibit Number	Description
99.1	Press Release dated May 12, 2011 with respect to the Registrant’s financial results for the three and twelve months ended April 1, 2011.
99.2	Financial Supplement for the three and twelve months ended April 1, 2011.

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.

	PSS WORLD MEDICAL, INC.
Date: May 12, 2011	By:	/s/	David M. Bronson
		Name:	David M. Bronson
		Title:	Executive Vice President and Chief Financial Officer

EXHIBIT INDEX

99.1	Press Release dated May 12, 2011.
99.2	Financial Supplement for the three and twelve months ended April 1, 2011.

EX-99.1

N        E        W        S                          R        E        L        E        A        S        E

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

PSS WORLD MEDICAL REPORTS RESULTS FOR

FOURTH QUARTER AND FISCAL YEAR 2011

Company Reports $1.32 Earnings Per Diluted Share for FY2011

Company Announces Initial Goal for FY2012 Earnings Per Diluted Share of $1.46 - $1.50

Fourth Quarter Highlights:

·   Consolidated net sales growth of 10.6%

o   Physician Business net sales growth of 15.4%

o   Elder Care Business net sales flat year-over-year

·   Consolidated operating margin growth of 117 basis points to 6.9%

·   Consolidated earnings per diluted share growth of 35.7% to $0.38

·   Consolidated operating income growth of 33.1%

Fiscal Year 2011 Highlights:

·   Consolidated same day sales growth of 1.0% (3.6% same day sales growth excluding FY10 H1N1-related product sales)

o   Physician Business same day sales growth of 1.1% (4.9% same day sales growth excluding FY10 H1N1-related product sales)

o   Elder Care Business same day sales growth of 0.8%

·   Consolidated operating margin growth of 68 basis points to 6.6%

·   Consolidated earnings per diluted share growth of 11.9% to $1.32

·   Consolidated cash flow from operations growth of 13.6% to $116.3 million

·   Consolidated return on committed capital of 35.5%

·   Repurchased approximately 2.7 million common shares at an average price of $20.07

Jacksonville, Florida (May 12, 2011) – PSS World Medical, Inc. (NasdaqGS: PSSI) announced today its results for the fourth quarter and fiscal year 2011, ended April 1, 2011.

-MORE-

PSSI Reports Results For Fourth Quarter and Fiscal 2011

Page 2

May 12, 2011

Gary A. Corless, President and Chief Executive Officer, commented, “We refined our Company’s purpose – to strengthen the clinical success and financial health of caregivers by solving their biggest problems.  During the past year, this purpose has led us to expand our services, products, and businesses to lead in the pursuit of a more efficient and effective future for the U.S. healthcare system.  Our team continued to perform very well in the fourth quarter of fiscal year 2011 with solid revenue growth of more than 15% in our Physician Business, consolidated operating margin expansion of 117 basis points, and impressive earnings per diluted share growth of 36%.  Strong execution throughout the year resulted in our achieving $1.32 in earnings per diluted share, the high end of our goal for the full year.”

David M. Bronson, Executive Vice President and Chief Financial Officer, commented, “Despite five fewer billing days in fiscal year 2011 and difficult comps due to last year’s H1N1-related sales, the Company grew net income and generated operating cash flow of $116 million.  This capital was deployed effectively through the repurchase of 2.7 million shares and a marked acceleration of our strategy of acquiring accretive fold-in and strategic companies.”

Consistent with historical patterns, fiscal year 2012, as the first year in a three-year plan, will include significant new investments that will drive our business strategies for the next several years.  Nevertheless, we have set an initial goal for diluted earnings per share of $1.46 - $1.50, representing growth of 11% - 14%.”

Net sales for the three months ended April 1, 2011, were $549.7 million, an increase of 10.6%, compared with net sales of $496.9 million for the three months ended April 2, 2010.  Net sales for the three months ended April 1, 2011, for the Physician Business increased by 15.4% and were essentially flat year-over-year for the Elder Care Business.  Income from operations for the three months ended April 1, 2011, increased by 33.1% to $38.2 million compared with income from operations for the three months ended April 2, 2010, of $28.7 million.  Net income for the three months ended April 1, 2011, was $21.6 million, or $0.38 per diluted share, an increase of 35.7% compared with $0.28 per diluted share or net income of $16.5 million for the three months ended April 2, 2010.  Each of the three-month periods during fiscal years 2011 and 2010 included 65 sales days.

Net sales for the twelve months ended April 1, 2011, were $2,034.8 million, a decrease of 1.0% (1.0% same day sales growth and 3.6% same day sales growth excluding H1N1-related product sales in fiscal year 2010), compared with net sales of $2,055.2 million for the twelve months ended April 2, 2010.  Net sales for the twelve months ended April 1, 2011, for the Physician Business decreased by 0.9% (2.9% growth excluding H1N1-related product sales in fiscal year 2010) and decreased by 1.2% for the Elder Care Business.  Same day sales for the twelve months ended April 1, 2011, for the Physician Business increased by 1.1% (4.9% same day sales growth excluding H1N1-related product sales in fiscal year 2010) and increased 0.8% for the Elder Care Business.  Income from operations for the twelve months ended April 1, 2011, was $133.6 million compared with income from operations for the twelve months ended April 2, 2010, of $121.0 million.  Net income for the twelve months ended April 1, 2011, increased by 7.4% to $74.5 million, or $1.32 earnings per diluted share, compared with net income for the twelve months ended April 2, 2010, of $69.4 million, or $1.18 earnings per diluted share.  The Company noted that it had five fewer sales days (253 sales days) in fiscal year 2011 ended April 1, 2011, compared with the number of sales days (258 sales days) in fiscal year 2010 ended April 2, 2010.

 -MORE-

PSSI Reports Results For Fourth Quarter and Fiscal 2011

Page 3

May 12, 2011

Mr. Corless concluded, “We are pleased to have successfully completed our three-year strategic plan for fiscal years 2009 through 2011, growing earnings per diluted share at a compounded rate over 18% during a historically challenging economy and a rapidly changing healthcare environment.  Our 2011 Investor Day will be held on May 25th in New York, where we look forward to discussing our role in the alternate-site U.S. healthcare system and providing information about our new three-year plan and the strategies that will support our financial goals for fiscal year 2012.”

A listen-only simulcast as well as a 90-day online replay of PSS World Medical’s fiscal year 2011 fourth quarter conference call can be found in the Investor Relations/Financial Information sections of the Company’s website, www.pssworldmedical.com, under the heading “Events and Presentations,” on May 12, 2011, beginning at 8:30 a.m. Eastern time.

The Company has today filed with the SEC a Form 8-K that includes a copy of this press release and its related Fiscal Year 2011 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 904-332-3000.

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

Certain statements in this release are "forward-looking statements" made pursuant to the Private Securities Litigation Reform Act of 1995 and other federal securities laws.  These forward-looking statements are identified by the use of words such as "expect," "may," "will," "should," "believe," "plan," "anticipate," and "estimate" among others.  These statements involve a number of risks and uncertainties, many of which are outside the control of the Company.  Actual results may differ materially from those identified in the forward-looking statements.  Among the factors that could cause results to differ materially are the following: fluctuating demand for our products and services; national and global economic conditions, including our and our customers' ability to obtain 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, particularly in states with significant budget deficits; our ability to successfully execute our mergers and acquisitions strategy; our ability to compete with other medical supply companies and direct manufacturers; multi-tiered cost structures where certain institutions can obtain more favorable prices for medical products than us; our ability to maintain relationships with our suppliers and customers; our ability to retain sales reps and key management; our ability to execute our growth strategy; increased operating costs, including fuel 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 business is subject to numerous federal, state and foreign laws and regulations, including state pedigree laws and regulations; general business competitive and economic factors and conditions; and other factors described from time to time in the Company's reports filed with the Securities and Exchange Commission. PSS assumes no obligation to update the information in this release except as otherwise required by law.  Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof. 

 -MORE-

PSSI Reports Results For Fourth Quarter and Fiscal 2011

Page 4

May 12, 2011

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
	April 1,			April 2,			April 1,			April 2,
	2011			2010			2011			2010
Net sales	$	549.7		$	496.9		$	2,034.8		$	2,055.2
Cost of goods sold		376.8			342.5			1,399.0			1,427.5
Gross profit		172.9			154.4			635.8			627.7
General and administrative expenses		98.5			92.6			364.7			370.9
Selling expenses		36.2			33.1			137.5			135.8
Income from operations		38.2			28.7			133.6			121.0
Other (expense) income:
Interest expense		(4.5	)		(4.3	)		(17.1	)		(17.3	)
Interest income		0.1			-			0.3			0.4
Other income		0.7			0.9			2.4			6.0
Other expense		(3.7	)		(3.4	)		(14.4	)		(10.9	)
Income before provision for income taxes		34.5			25.3			119.2			110.1
Provision for income taxes		12.9			8.8			44.5			40.7
Net income		21.6			16.5			74.7			69.4
Net income attributable to noncontrolling interest		-			-			0.2			-
Net income attributable to PSS World Medical, Inc.	$	21.6		$	16.5		$	74.5		$	69.4
Earnings per common share attributable to PSS World Medical, Inc.:
Basic	$	0.40		$	0.29		$	1.35		$	1.20
Diluted	$	0.38		$	0.28		$	1.32		$	1.18
Weighted average shares (in thousands):
Basic		54,548			56,627			54,996			58,029
Diluted		56,789			58,115			56,546			58,943

-MORE-

PSSI Reports Results For Fourth Quarter and Fiscal 2011

Page 5

May 12, 2011

PSS World Medical, Inc.

Unaudited Condensed Consolidated Balance Sheets

(in millions except share data)

	April 1,			April 2,
	2011			2010
ASSETS
Current Assets:
Cash and cash equivalents		$	29.3		$	52.8
Accounts receivable, net			247.2			227.9
Inventories			213.2			218.9
Deferred tax assets, net			20.5			15.6
Prepaid expenses and other			34.4			26.5
Total current assets			544.6			541.7
Property and equipment, net			102.4			105.2
Other Assets:
Goodwill			167.1			121.8
Intangibles, net			41.9			24.5
Other			95.7			78.9
Total assets		$	951.7		$	872.1
LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable		$	128.1		$	124.0
Accrued expenses			37.2			50.3
Revolving line of credit and current portion of long-term debt			0.8			0.9
Other			33.1			10.9
Total current liabilities			199.2			186.1
Long-term debt, excluding current portion			195.7			187.9
Other noncurrent liabilities			110.2			90.1
Total liabilities			505.1			464.1
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,
55,465,600 and 57,168,296 shares issued and outstanding
at April 1, 2011 and April 2, 2010, respectively			0.5			0.6
Additional paid-in capital			122.9			162.5
Retained earnings			319.6			244.9
Total PSS World Medical, Inc. shareholders' equity			443.0			408.0
Noncontrolling interest			3.6			-
Total equity			446.6			408.0
Total liabilities and equity		$	951.7		$	872.1

-MORE-

PSSI Reports Results For Fourth Quarter and Fiscal 2011

Page 6

May 12, 2011

PSS WORLD MEDICAL, INC.

Unaudited Condensed Consolidated Statements of Cash Flows

(in millions)

	Three Months Ended						Twelve Months Ended
	April 1,			April 2,			April 1,			April 2,
	2011			2010			2011			2010
Cash Flows From Operating Activities:
Net income	$	21.6		$	16.5		$	74.7		$	69.4
Adjustments to reconcile net income to net cash provided
by operating activities:
Depreciation		6.8			5.9			25.1			21.9
Provision (benefit) for deferred income taxes		2.5			(3.7	)		3.3			(8.3	)
Noncash compensation expense		3.0			(1.1	)		10.2			12.8
Amortization of intangible assets		1.9			1.4			6.4			5.1
Provision for doubtful accounts		-			0.4			1.7			3.8
Provision for deferred compensation		0.3			0.3			1.4			1.5
Amortization of debt discount and issuance costs		2.4			2.3			9.4			8.9
Loss on sales of property and equipment		-			-			-			0.1
Gain on sale of available for sale securities		-			-			-			(3.6	)
Changes in operating assets and liabilities, net of effects
from business combinations:
Accounts receivable, net		(4.2	)		5.3			(7.3	)		0.2
Inventories		29.5			11.8			12.3			(9.7	)
Prepaid expenses and other current assets		(1.2	)		7.3			(6.4	)		(5.8	)
Other assets		(1.7	)		0.8			(8.1	)		(4.7	)
Accounts payable		(24.2	)		(13.8	)		(8.2	)		(5.1	)
Accrued expenses and other liabilities		5.2			1.3			1.8			15.9
Net cash provided by operating activities		41.9			34.7			116.3			102.4
Cash Flows From Investing Activities:
Payments for business acquisitions, net of cash acquired		(45.7	)		(0.9	)		(65.9	)		(14.8	)
Capital expenditures		(5.2	)		(4.3	)		(18.2	)		(25.9	)
Payment for investment in variable interest entity, net of cash		-			-			(3.3	)		-
Proceeds from sale of available for sale securities		-			-			-			10.7
Other		-			(0.5	)		(0.7	)		(0.5	)
Net cash used in investing activities		(50.9	)		(5.7	)		(88.1	)		(30.5	)
Cash Flows From Financing Activities:
Proceeds from borrowings on the revolving line of credit		89.3			-			106.4			5.4
Repayments on the revolving line of credit		(89.3	)		(55.4	)		(106.4	)		(55.4	)
Purchase and retirement of common stock		-			(37.8	)		(54.8	)		(57.2	)
Proceeds from exercise of stock options		0.9			1.9			2.1			4.5
Excess tax benefits from share-based compensation arrangements		1.1			1.2			3.2			2.5
Payments under capital lease obligations		(0.2	)		(0.2	)		(0.8	)		(0.9	)
Payment of contingent consideration on business acquisition		-			-			(0.9	)		-
Other		(0.4	)		-			(0.5	)		-
Net cash provided by (used in) financing activities		1.4			(90.3	)		(51.7	)		(101.1	)
Net decrease in cash and cash equivalents		(7.6	)		(61.3	)		(23.5	)		(29.2	)
Cash and cash equivalents, beginning of period		36.9			114.1			52.8			82.0
Cash and cash equivalents, end of period	$	29.3		$	52.8		$	29.3		$	52.8

EX-99.2

Financial Supplement

For the Fourth Quarter of Fiscal Year 2011 ending April 1, 2011

PSS World Medical, Inc.

As of April 1, 2011

Current Fiscal Year

(in thousands, except per share data)

	Fiscal Year 2011
	Q1			Q2			Q3			Q4			YTD
Net sales	$	478,856		$	496,188		$	510,087		$	549,658		$	2,034,789
Cost of goods sold		331,010			339,063			352,192			376,753			1,399,018
Gross profit		147,846			157,125			157,895			172,905			635,771
General & administrative expenses		89,986			87,399			88,860			98,505			364,749
Selling expenses		32,610			34,298			34,330			36,229			137,466
Income from operations		25,250			35,429			34,706			38,171			133,556
Interest expense		(4,137	)		(4,226	)		(4,243	)		(4,515	)		(17,121	)
Interest & investment income		66			46			33			139			284
Other income		544			412			852			698			2,506
Income from operations before income taxes		21,723			31,661			31,348			34,493			119,225
Provision for income taxes		7,892			12,016			11,757			12,895			44,560
Net income		13,831			19,644			19,592			21,598			74,664
Net income attributable to noncontrolling interest		78			87			42			(28	)		179
Net income attributable to PSS World Medical, Inc.	$	13,753		$	19,557		$	19,549		$	21,626		$	74,485
Earnings per share - Basic:
Net income attributable to PSS World Medical, Inc.	$	0.25		$	0.36		$	0.36		$	0.40		$	1.36
Earnings per share - Diluted:
Net income attributable to PSS World Medical, Inc.	$	0.24		$	0.35		$	0.35		$	0.38		$	1.32
WASO - Basic		56,093			54,985			54,357			54,548			54,996
WASO - Diluted		57,924			55,887			55,567			56,789			56,546
Net sales by segment:
Physician Business	$	327,403		$	343,403		$	357,298		$	396,908		$	1,425,012
Elder Care Business		151,202			152,173			152,263			152,111			607,750
Corporate Shared Services		251			612			526			639			2,028
	$	478,856		$	496,188		$	510,087		$	549,658		$	2,034,789
Billing days:		64			63			61			65			253
Net sales per billing day:
Physician Business	$	5,116		$	5,451		$	5,857		$	6,106		$	5,632
Elder Care Business		2,363			2,415			2,496			2,340			2,402
Corporate Shared Services		4			10			9			10			8
	$	7,482		$	7,876		$	8,362		$	8,456		$	8,043

Numbers may not foot due to rounding differences

PSS World Medical, Inc.

As of April 1, 2011

(in thousands, except per share data)

	Fiscal Year 2008															Fiscal Year 2009															Fiscal Year 2010
	Q1			Q2			Q3			Q4			Total			Q1			Q2			Q3			Q4			Total			Q1			Q2			Q3			Q4			Total
Net sales	$	438,910		$	457,930		$	465,208		$	493,744		$	1,855,791		$	472,215		$	491,603		$	519,145		$	469,728		$	1,952,691		$	493,554		$	561,976		$	502,764		$	496,877		$	2,055,171
Cost of goods sold		311,227			325,390			330,215			347,289			1,314,120			333,283			344,347			364,282			328,868			1,370,781			347,581			389,404			348,064			342,427			1,427,476
Gross profit		127,683			132,540			134,993			146,455			541,672			138,931			147,255			154,863			140,860			581,910			145,974			172,571			154,700			154,449			627,695
General and administrative expenses		83,638			77,353			79,408			83,725			324,124			89,634			90,689			89,426			82,728			352,478			91,638			97,208			89,439			92,586			370,871
Selling expenses		29,551			30,763			31,509			33,473			125,295			31,266			32,161			33,721			31,356			128,505			32,687			36,728			33,249			33,178			135,842
Income from operations		14,494			24,425			24,077			29,257			92,253			18,031			24,405			31,715			26,776			100,927			21,649			38,635			32,012			28,685			120,981
Interest expense		(2,764	)		(2,956	)		(3,247	)		(3,529	)		(12,495	)		(3,203	)		(5,300	)		(7,409	)		(6,247	)		(22,159	)		(4,261	)		(4,532	)		(4,214	)		(4,288	)		(17,295	)
Interest and investment income		528			114			26			23			691			122			842			1,034			305			2,304			134			95			117			30			376
Other income		544			546			833			5,361			7,284			608			520			877			638			2,643			3,995			452			741			879			6,068
Income from ops before income taxes		12,802			22,129			21,690			31,112			87,732			15,559			20,467			26,218			21,472			83,716			21,517			34,650			28,657			25,306			110,130
Provision for income taxes		5,010			8,551			8,441			12,597			34,599			6,187			8,104			10,230			7,709			32,229			8,213			12,964			10,736			8,854			40,768
Net income		7,792			13,578			13,249			18,515			53,133			9,372			12,363			15,989			13,763			51,486			13,304			21,686			17,921			16,452			69,363
Net income attributable to noncontrolling interest		-			-			-			-			-			-			-			-			-			-			-			-			-			-			-
Net income attributable PSS World Medical, Inc.	$	7,792		$	13,578		$	13,249		$	18,515		$	53,133		$	9,372		$	12,363		$	15,989		$	13,763		$	51,486		$	13,304		$	21,686		$	17,921		$	16,452		$	69,363
Earnings per share - Basic:
Net income attributable PSS World Medical, Inc.	$	0.12		$	0.21		$	0.21		$	0.30		$	0.82		$	0.15		$	0.21		$	0.27		$	0.23		$	0.86		$	0.23		$	0.37		$	0.31		$	0.29		$	1.20
Earnings per share - Diluted:
Net income attributable PSS World Medical, Inc.	$	0.11		$	0.20		$	0.20		$	0.29		$	0.80		$	0.15		$	0.20		$	0.27		$	0.23		$	0.85		$	0.23		$	0.37		$	0.30		$	0.28		$	1.18
WASO - Basic		66,793			65,806			63,999			62,213			64,703			61,003			59,941			59,481			59,307			59,937			58,380			58,566			58,522			56,627			58,029
WASO - Diluted		68,765			67,067			65,756			63,152			66,184			61,723			60,921			60,322			59,801			60,696			58,859			59,390			59,390			58,115			58,943
Net Sales by Segment:
Physician Business	$	306,245		$	320,171		$	326,520		$	355,749		$	1,308,685		$	331,386		$	341,761		$	357,269		$	326,966		$	1,357,382		$	342,292		$	398,531		$	352,961		$	344,039		$	1,437,823
Elder Care Business		132,664			137,759			138,688			137,995			547,106			140,406			149,485			161,874			142,743			594,509			150,381			162,970			149,400			152,187			614,937
Corporate Shared Services		-			-			-			-			-			423			356			2			19			800			882			475			403			651			2,411
	$	438,910		$	457,930		$	465,208		$	493,744		$	1,855,791		$	472,215		$	491,603		$	519,145		$	469,728		$	1,952,691		$	493,554		$	561,976		$	502,764		$	496,877		$	2,055,171
Billing Days:		64			63			62			64			253			64			63			66			60			253			64			68			61			65			258
Net Sales Per Billing Day:
Physician Business	$	4,785		$	5,082		$	5,266		$	5,559		$	5,173		$	5,178		$	5,425		$	5,413		$	5,449		$	5,365		$	5,348		$	5,861		$	5,786		$	5,293		$	5,573
Elder Care Business		2,073			2,187			2,237			2,156			2,162			2,194			2,373			2,453			2,379			2,350			2,350			2,397			2,449			2,341			2,383
Corporate Shared Services		-			-			-			-			-			7			6			-			-			3			14			7			7			10			9
	$	6,858		$	7,269		$	7,503		$	7,715		$	7,335		$	7,378		$	7,803		$	7,866		$	7,829		$	7,718		$	7,712		$	8,264		$	8,242		$	7,644		$	7,966

Numbers may not foot due to rounding differences

PSS World Medical, Inc.

As of April 1, 2011

SelectTM Net Sales

(in thousands)

	Fiscal Year 2011					Fiscal Year 2010
	Q1	Q2	Q3	Q4	YTD	Q1	Q2	Q3	Q4	YTD
Consolidated Select Sales	$ 80,555	$ 82,152	$ 84,551	$ 86,978	$ 334,237	$ 77,842	$ 86,368	$ 78,449	$ 80,943	$ 323,602
	Fiscal Year 2006		Fiscal Year 2007		Fiscal Year 2008		Fiscal Year 2009		Fiscal Year 2010
Consolidated Select Sales	$157,296		$185,844		$234,810		$281,536		$323,602

Numbers may not foot due to rounding differences

PSS World Medical, Inc.

Segment Information

As of April 1, 2011

(in thousands)

	Three Months Ended						Twelve Months Ended
	April 1, 2011			April 2, 2010			April 1, 2011			April 2, 2010
NET SALES:
Physician Business	$	396,908		$	344,039		$	1,425,012		$	1,437,823
Elder Care Business		152,111			152,187			607,750			614,937
Corporate Shared Services		639			651			2,028			2,411
Total net sales	$	549,658		$	496,877		$	2,034,789		$	2,055,171
BILLING DAYS:		65			65			253			258
NET SALES PER BILLING DAY:
Physician Business	$	6,106		$	5,293		$	5,632		$	5,573
Elder Care Business		2,340			2,341			2,402			2,383
Corporate Shared Services		10			10			8			9
Total net sales per billing day	$	8,456		$	7,644		$	8,043		$	7,966
INCOME FROM OPERATIONS:
Physician Business	$	38,334		$	30,497		$	137,995		$	137,261
Elder Care Business		10,783			9,422			37,782			38,017
Corporate Shared Services		(10,945	)		(11,234	)		(42,221	)		(54,297	)
Total income from operations	$	38,171		$	28,685		$	133,556		$	120,981
DEPRECIATION:
Physician Business	$	2,695		$	2,067		$	9,515		$	7,983
Elder Care Business		1,300			1,226			5,024			4,984
Corporate Shared Services		2,768			2,588			10,525			8,973
Total depreciation	$	6,763		$	5,881		$	25,065		$	21,940
AMORTIZATION OF INTANGIBLE
AND OTHER ASSETS:
Physician Business	$	1,080		$	581		$	2,956		$	2,343
Elder Care Business		596			743			2,757			2,432
Corporate Shared Services		174			120			665			346
Total amortization of intangible and other assets	$	1,850		$	1,444		$	6,378		$	5,121
PROVISION FOR DOUBTFUL ACCOUNTS:
Physician Business	$	138		$	(11	)	$	1,792		$	1,944
Elder Care Business		(145	)		414			(51	)		1,851
Total provision for doubtful accounts	$	(7	)	$	402		$	1,741		$	3,795
INTEREST EXPENSE:
Total interest expense	$	4,515		$	4,288		$	17,121		$	17,295
INTEREST AND INVESTMENT INCOME:
Elder Care Business	$	115		$	3		$	178		$	70
Corporate Shared Services		24			28			106			306
Total interest and investment income	$	139		$	30		$	284		$	376
PROVISION (BENEFIT) FOR INCOME TAXES:
Physician Business	$	13,608		$	11,089		$	49,951		$	49,982
Elder Care Business		3,312			2,698			11,212			11,103
Corporate Shared Services		(4,024	)		(4,933	)		(16,603	)		(20,317	)
Total provision for income taxes	$	12,895		$	8,854		$	44,560		$	40,768

Numbers may not foot due to rounding differences

PSS World Medical, Inc.

Current Fiscal Year Balance Sheet

(in thousands)

Consolidated

	As of
ASSETS	July 2, 2010		October 1, 2010		December 31, 2010		April 1, 2011
Cash	$	59,081	$	22,949	$	36,912	$	29,348
Accounts receivable, net		222,544		232,014		239,082		247,229
Inventory, net		217,500		220,846		240,211		213,211
Prepaid expenses		6,258		7,283		5,508		5,555
Other current assets		36,596		53,209		44,974		49,262
Total current assets		541,979		536,301		566,687		544,606
Property and equipment, net		103,737		101,269		101,958		102,401
Goodwill		124,281		128,745		131,364		167,094
Intangibles, net		25,242		26,440		30,657		41,879
Other long-term assets		77,488		84,933		91,881		95,693
Total assets	$	872,727	$	877,688	$	922,547	$	951,672
LIABILITIES & EQUITY
Accounts payable	$	125,155	$	137,431	$	149,698	$	128,057
Accrued expenses		37,830		33,804		40,075		37,175
Current portion of long term debt		796		791		821		761
Revolving line of credit		394		506		312		-
Other		25,576		26,574		24,346		33,211
Total current liabilities		189,751		199,107		215,252		199,204
Long-term debt		189,746		191,667		193,645		195,662
Other non-current liabilities		77,748		86,420		92,940		110,281
Total liabilities		457,245		477,193		501,837		505,146
Total PSS World Medical, Inc. shareholders' equity		412,344		397,270		417,082		442,926
Noncontrolling interest		3,138		3,225		3,628		3,600
Total equity		415,482		400,495		420,710		446,526
Total liabilities and equity	$	872,727	$	877,688	$	922,547	$	951,672

Numbers may not foot due to rounding differences

PSS World Medical, Inc.

Balance Sheet Trend

(in thousands)

Consolidated

	Fiscal Year 2008								Fiscal Year 2009								Fiscal Year 2010
ASSETS	Jun-07		Sep-07		Dec-07		Mar-08		Jun-08		Sep-08		Dec-08		Mar-09		Jun-09		Sep-09		Dec-09		Mar-10
Cash	$	23,954	$	17,041	$	15,031	$	21,122	$	29,840	$	226,055	$	214,709	$	82,031	$	129,631	$	130,089	$	114,056	$	52,751
Investment in available for sale securities		-		-		-		-		-		-		-		10,592		-		-		-		-
Accounts receivable, net		222,699		232,282		224,282		237,248		227,661		240,806		232,894		230,361		230,391		257,968		233,602		227,888
Inventory, net		187,499		188,087		214,256		190,846		192,707		199,337		239,940		207,593		196,160		212,813		230,725		218,911
Deferred tax assets		8,987		9,319		9,175		8,183		6,805		-		-		8,059		8,250		5,602		11,986		15,629
Other current assets		34,347		27,895		31,658		48,744		26,157		22,163		23,229		23,819		24,385		30,854		33,980		26,485
Total current assets		477,486		474,624		494,403		506,142		483,170		688,361		710,772		562,456		588,817		637,326		624,349		541,664
Property and equipment, net		90,213		90,208		90,781		91,584		92,803		96,849		97,113		101,205		103,552		105,499		106,956		105,220
Goodwill		110,993		110,727		110,868		110,679		112,320		112,392		112,717		112,768		114,255		115,280		120,828		121,772
Intangibles, net		30,280		28,991		27,669		26,305		25,738		24,345		23,102		22,958		22,442		21,604		25,289		24,548
Investment in available for sale securities		24,232		46,147		50,206		11,318		14,231		16,725		15,333		-		-		-		-		-
Other long-term assets		69,481		67,195		67,921		67,209		67,598		83,055		70,549		59,238		65,065		73,819		77,748		78,862
Total assets	$	802,685	$	817,891	$	841,849	$	813,236	$	795,860	$	1,021,726	$	1,029,587	$	858,624	$	894,131	$	953,528	$	955,170	$	872,066

	Fiscal Year 2008								Fiscal Year 2009								Fiscal Year 2010
LIABILITIES & EQUITY	Jun-07		Sep-07		Dec-07		Mar-08		Jun-08		Sep-08		Dec-08		Mar-09		Jun-09		Sep-09		Dec-09		Mar-10
Accounts payable	$	144,572	$	149,827	$	161,728	$	135,930	$	128,656	$	149,674	$	155,133	$	127,300	$	133,781	$	156,966	$	137,676	$	123,970
Accrued expenses		33,190		33,275		34,350		46,056		38,055		50,816		43,170		52,718		46,196		43,248		48,051		50,253
Current portion of long-term debt		2,132		32,129		33,660		214,732		196,116		198,022		199,606		50,937		50,953		50,970		56,321		881
Deferred tax liabilities, current		-		-		-		-		-		6,619		4,492		-		-		-		-		-
Other current liabilities		15,267		15,000		15,846		11,969		8,102		8,723		9,160		7,956		12,882		13,653		13,122		10,954
Total current liabilities		195,161		230,230		245,584		408,687		370,928		413,855		411,560		238,910		243,812		264,837		255,169		186,058
Long-term debt		139,657		141,091		143,020		725		706		177,650		179,395		180,965		182,654		184,530		186,153		187,941
Other long-term liabilities		70,413		68,190		69,976		64,473		68,975		64,763		56,503		60,719		70,323		79,896		86,674		90,053
Total liabilities		405,231		439,512		458,580		473,885		440,610		656,268		647,459		480,594		496,789		529,263		527,996		464,052
Total PSS World Med. shareholders' equity		397,454		378,379		383,269		339,351		355,250		365,458		382,127		378,030		397,342		424,265		427,174		408,014
Noncontrolling interest		-		-		-		-		-		-		-		-		-		-		-		-
Total equity		397,454		378,379		383,269		339,351		355,250		365,458		382,127		378,030		397,342		424,265		427,174		408,014
Total liabilities & equity	$	802,685	$	817,891	$	841,849	$	813,236	$	795,860	$	1,021,726	$	1,029,587	$	858,624	$	894,131	$	953,528	$	955,170	$	872,066

Numbers may not foot due to rounding differences

PSS World Medical, Inc.

Unaudited Operating Highlights

Current Fiscal Year

(in millions)

	Three Months Ended						Twelve Months Ended
	April 1, 2011			April 2, 2010			April 1, 2011			April 2, 2010
Net sales:
Physician Business	$	396.9		$	344.0		$	1,425.0		$	1,437.8
Elder Care Business		152.1			152.2			607.8			614.9
Corporate Shared Services		0.6			0.7			2.0			2.4
Total net sales	$	549.7		$	496.9		$	2,034.8		$	2,055.2
Income from operations:
Physician Business	$	38.3		$	30.5		$	138.0		$	137.3
Elder Care Business		10.8			9.4			37.8			38.0
Corporate Shared Services		(10.9	)		(11.2	)		(42.2	)		(54.3	)
Total income from operations	$	38.2		$	28.7		$	133.6		$	121.0
EBITDA (a)	$	47.5		$	36.9		$	167.5		$	154.1
Income from operations, as a percentage of net sales		6.9	%		5.8	%		6.6	%		5.9	%
Consolidated Return on Committed Capital ("ROCC") (b)		39.7	%		30.7	%		35.5	%		33.5	%
Billing Days		65			65			253			258
Net Sales Per Billing Day (in thousands):
Physician Business	$	6,106		$	5,293		$	5,632		$	5,573
Elder Care Business		2,340			2,341			2,402			2,383
Corporate Shared Services		10			10			8			9
Total Net Sales Per Billing Day	$	8,456		$	7,644		$	8,043		$	7,966
Net Sales Per Billing Day Growth Rate:
Physician Business		15.4	%					1.1	%
Elder Care Business		(0.0	%)					0.8	%
Total Net Sales Per Billing Day Growth Rate		10.6	%					1.0	%
							Annualized
							April 1, 2011			April 2, 2010
DSO (c)
Physician Business								38.7			38.3
Elder Care Business								47.3			48.4
DOH (d)
Physician Business								54.8			53.6
Elder Care Business								62.7			54.4
DIP (e)
Physician Business								37.5			37.3
Elder Care Business								21.3			22.6
Cash Conversion Days (f)
Physician Business								56.0			54.6
Elder Care Business								88.7			80.2
							As of
							April 1, 2011			April 2, 2010
Operational working capital (g)							$	332.4		$	322.8
Net debt:
Convertible senior notes							$	195.6		$	187.1
Other debt								0.8			1.7
Less: Cash and cash equivalents								(29.3	)		(52.8	)
Net debt							$	167.1		$	136.1

Numbers may not foot due to rounding differences

PSS WORLD MEDICAL, INC.
Non-GAAP Reconciliations
Physician Business net sales impact from H1N1-related product sales
(in millions)
	For the Three Months Ended				Percent Change	For the Twelve Months Ended				Percent Change
	April 1, 2011		April 2, 2010			April 1, 2011		April 2, 2010
Physician Business:
Net Sales	$	396.9	$	344.0	15.4%	$	1,425.0	$	1,437.8	(0.9)%
Less: Impact of H1N1-related product sales(h)		-		-			-		(52.5)
Net Sales adjusted for H1N1-related product sales	$	396.9	$	344.0	15.4%	$	1,425.0	$	1,385.3	2.9%
Physician Business daily net sales impact from H1N1-related product sales
(in millions)
	For the Three Months Ended				Percent Change	For the Twelve Months Ended				Percent Change
	April 1, 2011		April 2, 2010			April 1, 2011		April 2, 2010
Physician Business:
Daily Net Sales	$	6.1	$	5.3	15.4%	$	5.6	$	5.6	1.1%
Less: Impact of H1N1-related product sales(h)		-		-			-		(0.2)
Daily Net Sales adjusted for H1N1-related product sales	$	6.1	$	5.3	15.4%	$	5.6	$	5.4	4.9%
Consolidated net sales impact from H1N1-related product sales
(in millions)
	For the Three Months Ended				Percent Change	For the Twelve Months Ended				Percent Change
	April 1, 2011		April 2, 2010			April 1, 2011		April 2, 2010
Consolidated:
Net Sales	$	549.7	$	496.9	10.6%	$	2,034.8	$	2,055.2	(1.0)%
Less: Impact of H1N1-related product sales(h)		-		-			-		(52.5)
Net Sales adjusted for H1N1-related product sales	$	549.7	$	496.9	10.6%	$	2,034.8	$	2,002.7	1.6%
Consolidated daily net sales impact from H1N1-related product sales
(in millions)
	For the Three Months Ended				Percent Change	For the Twelve Months Ended				Percent Change
	April 1, 2011		April 2, 2010			April 1, 2011		April 2, 2010
Consolidated:
Net Sales	$	8.5	$	7.6	10.6%	$	8.0	$	8.0	1.0%
Less: Impact of H1N1-related product sales(h)		-		-			-		(0.2)
Daily Net Sales adjusted for H1N1-related product sales	$	8.5	$	7.6	10.6%	$	8.0	$	7.8	3.6%

Numbers may not foot due to rounding differences

PSS WORLD MEDICAL, INC.
Non-GAAP Reconciliations
Consolidated net sales impact from Fiscal Year 2011 Physician Dispensing Acquisitions
(in millions)
	Three Months Ended				Percent	Twelve Months Ended				Percent
	April 1, 2011		April 2, 2010		Change	April 1, 2011		April 2, 2010		Change
Consolidated:
Net Sales	$	549.7	$	496.9	10.6%	$	2,034.8	$	2,055.2	-1.0%
Less: Net Sales from Physician Dispensing		27.2		-			36.9		-
Net Sales less the impact of Physician Dispensing	$	522.5	$	496.9	5.2%	$	1,997.9	$	2,055.2	-2.8%
Physician Business net sales impact from Fiscal Year 2011 Physician Dispensing Acquisitions
(in millions)
	Three Months Ended				Percent	Twelve Months Ended				Percent
	April 1, 2011		April 2, 2010		Change	April 1, 2011		April 2, 2010		Change
Physician Business:
Net Sales	$	396.9	$	344.0	15.4%	$	1,425.0	$	1,437.8	-0.9%
Less: Net Sales from Physician Dispensing		27.2		-			36.9		-
Net Sales less the impact of Physician Dispensing	$	369.7	$	344.0	7.5%	$	1,388.1	$	1,437.8	-3.5%

Numbers may not foot due to rounding differences

PSS World Medical, Inc.

Selling Days Calendar FY10-FY12

FY2010		FY2011		FY2012
Closing	Selling	Closing	Selling	Closing	Selling
Date	Days	Date	Days	Date	Days	Notes
24-Apr	20	30-Apr	20	29-Apr	20	A
29-May	24	28-May	20	27-May	20	A
26-Jun	20	2-Jul	24	1-Jul	24	B
Q1	64		64		64
31-Jul	24	30-Jul	19	29-Jul	19	A
28-Aug	20	27-Aug	20	26-Aug	20	A
2-Oct	24	1-Oct	24	30-Sep	24	B
Q2	68		63		63
30-Oct	20	29-Oct	20	28-Oct	20	A
27-Nov	18	26-Nov	18	25-Nov	18	A
1-Jan	23	31-Dec	23	30-Dec	24	B
Q3	61		61		62
29-Jan	20	28-Jan	20	27-Jan	19	A
26-Feb	20	25-Feb	20	24-Feb	20	A
2-Apr	25	1-Apr	25	30-Mar	25	B
Q4	65		65		64
Total	258		253		253
A	Closing date is the last Friday of the month (for non-quarter end months).
B	"Selling Days" defines closing date as the Friday closest to month end
	based on business days only (for quarter end months only).

Numbers may not foot due to rounding differences

PSS World Medical, Inc.

EBITDA Calculation

Current Fiscal Year

(in thousands)

	Fiscal Year 2011
	Q1			Q2			Q3			Q4			YTD
Net Income	$	13,831		$	19,644		$	19,592		$	21,598		$	74,664
Plus: Interest expense		4,137			4,226			4,243			4,515			17,121
Less: Interest and investment income		(66	)		(46	)		(33	)		(139	)		(284	)
Plus: Provision for income taxes		7,892			12,016			11,757			12,895			44,560
Plus: Depreciation		5,942			6,100			6,260			6,763			25,065
Plus: Amortization of intangible assets		1,444			1,501			1,584			1,850			6,378
EBITDA	$	33,179		$	43,441		$	43,402		$	47,483		$	167,504

Numbers may not foot due to rounding differences

PSS World Medical, Inc.

EBITDA Calculation

(in thousands)

	Fiscal Year 2008															Fiscal Year 2009															Fiscal Year 2010
	Q1			Q2			Q3			Q4			Total FY 2008			Q1			Q2			Q3			Q4			Total FY 2009			Q1			Q2			Q3			Q4			Total FY 2010
Net income	$	7,792		$	13,578		$	13,249		$	18,515		$	53,133		$	9,372		$	12,363		$	15,989		$	13,763		$	51,486		$	13,304		$	21,686		$	17,921		$	16,452		$	69,363
Plus: Interest expense		2,764			2,956			3,247			3,529			12,495			3,203			5,300			7,409			6,247			22,159			4,261			4,532			4,214			4,288			17,295
Less: Interest and investment income		(528	)		(114	)		(26	)		(23	)		(691	)		(122	)		(842	)		(1,034	)		(305	)		(2,304	)		(134	)		(95	)		(117	)		(30	)		(376	)
Plus: Provision for income taxes		5,010			8,551			8,441			12,597			34,599			6,187			8,104			10,230			7,709			32,229			8,213			12,964			10,736			8,854			40,768
Plus: Depreciation		4,632			4,796			4,710			4,719			18,858			4,830			4,912			5,116			5,144			20,002			5,245			5,256			5,558			5,881			21,940
Plus: Amortization of intanhible assets		1,458			1,406			1,362			1,360			5,586			1,344			1,553			1,264			1,328			5,489			1,252			1,190			1,235			1,444			5,121
EBITDA	$	21,128		$	31,172		$	30,983		$	40,697		$	123,980		$	24,813		$	31,390		$	38,973		$	33,886		$	129,062		$	32,140		$	45,533		$	39,547		$	36,890		$	154,110

Numbers may not foot due to rounding differences

PSS World Medical, Inc.

Return on Committed Capital (ROCC)

Current Fiscal Year

(in thousands)

	Fiscal Year 2011
	Q1			Q2			Q3			Q4			Total FY 2011
Consolidated Return on Committed Capital:
Quarterly Average Committed Capital (1)	$	397,789		$	406,570		$	415,941		$	410,592
Annual Average Committed Capital													$	401,196
Committed Capital - Current Quarter		397,814			415,325			416,556			404,628			404,628
Committed Capital - Previous Quarter		397,765			397,814			415,325			416,556			416,556
Committed Capital - Previous Year End														397,765
Return on Committed Capital - Quarterly (2)		27.4	%		36.7	%		35.7	%		39.7	%
Return on Committed Capital - Annual														35.5	%
Return:
Net income		13,831			19,644			19,592			21,598			74,664
Add:
Provision for income taxes		7,892			12,016			11,757			12,895			44,560
Interest expense		4,137			4,226			4,243			4,515			17,121
Amortization		1,444			1,501			1,584			1,850			6,378
Interest and investment income		(66	)		(46	)		(33	)		(139	)		(284	)
	$	27,238		$	37,341		$	37,141		$	40,719		$	142,440
Committed Capital:
Total assets	$	872,727		$	877,688		$	922,547		$	951,672		$	951,672
Less assets excluded:
Cash		(59,081	)		(22,949	)		(36,912	)		(29,348	)		(29,348	)
Goodwill and intangibles, net		(149,523	)		(155,185	)		(162,020	)		(208,973	)		(208,973	)
Total liabilities		(457,246	)		(477,193	)		(501,837	)		(505,146	)		(505,146	)
Plus liabilities excluded:
Current debt		1,190			1,297			1,133			761			761
Long-term debt		189,746			191,667			193,645			195,662			195,662
	$	397,814		$	415,325		$	416,556		$	404,628		$	404,628

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

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

Numbers may not foot due to rounding differences

PSS World Medical, Inc.

Return on Committed Capital (ROCC)

(in thousands)

	Fiscal Year 2008															Fiscal Year 2009															Fiscal Year 2010
	Q1			Q2			Q3			Q4			Total FY 2008			Q1			Q2			Q3			Q4			Total FY 2009			Q1			Q2			Q3			Q4			Total FY 2010
Consolidated Return on Committed Capital:
Quarterly Average Committed Capital (1)	$	359,807		$	384,428		$	400,611		$	401,541					$	390,439		$	381,257		$	394,469		$	401,387					$	378,397		$	378,706		$	401,134		$	403,620
Annual Average Committed Capital (2)													$	371,150														$	394,438														$	394,969
Committed Capital - Current Quarter		374,016			394,840			406,381			396,702						384,175			378,339			410,600			392,174						364,619			392,792			409,475			397,765
Committed Capital - Previous Quarter		345,597			374,016			394,840			406,381						396,702			384,175			378,339			410,600						392,174			364,619			392,792			409,475
Committed Capital - Current Year End														396,702															392,174															397,765
Committed Capital - Previous Year End														345,597															396,702															392,174
Return on Committed Capital - Quarterly (3)		18.3	%		27.4	%		26.2	%		35.8	%					20.5	%		27.8	%		34.3	%		28.6	%					28.4	%		42.5	%		33.9	%		30.7	%
Return on Committed Capital - Annual														28.3	%														27.6	%														33.5	%
Return:
Income from continuing operations before extraordinary loss	$	7,792		$	13,578		$	13,249		$	18,515		$	53,133		$	9,372		$	12,363		$	15,989		$	13,763		$	51,486		$	13,304		$	21,686		$	17,921		$	16,452		$	69,363
Add:
Provision for income taxes		5,010			8,551			8,441			12,597			34,599			6,187			8,104			10,230			7,709			32,229			8,213			12,964			10,736			8,854			40,768
Interest expense		2,764			2,956			3,247			3,529			12,495			3,203			5,300			7,409			6,247			22,159			4,261			4,532			4,214			4,288			17,295
Amortization		1,458			1,406			1,362			1,360			5,586			1,344			1,553			1,264			1,328			5,489			1,252			1,190			1,235			1,444			5,121
Interest and investment income		(528	)		(114	)		(26	)		(23	)		(691	)		(122	)		(842	)		(1,034	)		(305	)		(2,304	)		(134	)		(95	)		(117	)		(30	)		(376	)
	$	16,496		$	26,377		$	26,273		$	35,978		$	105,123		$	19,983		$	26,478		$	33,856		$	28,742		$	109,059		$	26,895		$	40,277		$	33,989		$	31,009		$	132,170
Committed Capital:
Total assets	$	802,685		$	817,891		$	841,849		$	813,236		$	813,236		$	795,860		$	1,021,726		$	1,029,586		$	858,624		$	858,624		$	894,131		$	953,528		$	955,170		$	872,065		$	872,065
Less assets excluded:
Cash		(23,954	)		(17,041	)		(15,031	)		(21,122	)		(21,122	)		(29,840	)		(226,055	)		(214,709	)		(82,031	)		(82,031	)		(129,631	)		(130,089	)		(114,056	)		(52,751	)		(52,751	)
Goodwill and intangibles, net		(141,273	)		(139,718	)		(138,537	)		(136,984	)		(136,984	)		(138,058	)		(136,736	)		(135,820	)		(135,726	)		(135,726	)		(136,696	)		(136,884	)		(146,117	)		(146,320	)		(146,320	)
Total liabilities		(405,231	)		(439,512	)		(458,580	)		(473,885	)		(473,885	)		(440,610	)		(656,268	)		(647,459	)		(480,594	)		(480,594	)		(496,792	)		(529,263	)		(527,996	)		(464,052	)		(464,052	)
Plus liabilities excluded:
Current debt		2,132			32,129			33,660			214,732			214,732			196,116			198,022			199,606			50,937			50,937			50,953			50,970			56,321			881			881
Long-term debt		139,657			141,091			143,020			725			725			706			177,650			179,395			180,965			180,965			182,654			184,530			186,153			187,941			187,941
	$	374,016		$	394,840		$	406,381		$	396,702		$	396,702		$	384,175		$	378,339		$	410,600		$	392,174		$	392,174		$	364,619		$	392,792		$	409,475		$	397,765		$	397,765

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

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

(3)   Return on Committed Capital equals return divided by committed capital. Quarterly calculations are annualized.

Numbers may not foot due to rounding differences

PSS WORLD MEDICAL, INC.

Footnotes

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

(b)   ROCC equals return divided by average committed capital. Return is annualized for quarterly and year to date calculations. Management review ROCC when evaluating and comparing the performance of each operating segment on a quarterly basis. Management believes ROCC is an important measure of profitability and return.

(c)   DSO is average accounts receivable divided by average daily net sales. Average accounts receivable is the sum of accounts receivable, net of the allowance for doubtful accounts, at the beginning and end of the most recent four quarters divided by five. Average daily net sales are net sales for the most recent four quarters divided by 360.

(d)   DOH is average inventory divided by average daily cost of goods sold (“COGS”). Average inventory is the sum of inventory at the beginning and end of the most recent four quarters divided by five. Average daily COGS is quarterly COGS for the most recent four quarters divided by 360.

(e)   DIP is average accounts payable divided by average daily COGS. Average accounts payable is the sum of accounts payable at the beginning and end of the most recent four quarters divided by five.

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

(g)   Operational working capital equals accounts receivable plus inventory minus accounts payable.

(h)   “H1N1-related product sales” represents increased sales in influenza test kits, surgical masks, medical gloves, hand sanitizers and other products related to the swine flu pandemic.