EX-99.2 3 dex992.htm FINANCIAL SUPPLEMENT Financial Supplement

Exhibit 99.2

LOGO

Financial Supplement

For the Second Quarter of Fiscal Year 2009 ending September 26, 2008


PSS World Medical, Inc.

As of September 26, 2008

Current Fiscal Year

(in thousands, except per share data)

 

     Fiscal 2009  
     Q1     Q2  

Net Sales

   $ 472,215     $ 491,603  

Cost of Goods Sold

     333,283       344,347  
                

Gross Profit

     138,931       147,255  

General & Administrative Expenses

     89,580       90,635  

Selling Expenses

     31,266       32,161  
                

Income from operations

     18,085       24,460  

Interest Expense

     (1,733 )     (2,878 )

Interest & Investment Income

     122       842  

Other Income

     608       520  
                

Income from Operations before Income Taxes

     17,082       22,943  

Provision for Income Taxes

     6,766       9,045  
                

Net Income

   $ 10,317     $ 13,898  
                

Earnings per share—Basic:

    

Net Income

   $ 0.17     $ 0.23  
                

Earnings per share—Diluted:

    

Net Income

   $ 0.17     $ 0.23  
                

WASO—Basic

     61,003       59,941  

WASO—Diluted

     61,723       60,921  

Net Sales by Segment:

    

Physician Business

   $ 331,386     $ 341,761  

Elder Care Business

     140,406       149,485  

Corporate Shared Services

     423       356  
                
   $ 472,215     $ 491,603  
                

Billing Days:

     64       63  

Net Sales Per Billing Day:

    

Physician Business

   $ 5,178     $ 5,425  

Elder Care Business

     2,194       2,373  

Corporate Shared Services

     7       6  
                
   $ 7,378     $ 7,803  
                

Numbers may not foot due to rounding differences


PSS World Medical, Inc.

As of September 26, 2008

(in thousands, except per share data)

 

    Fiscal 2006     Fiscal 2007     Fiscal 2008  
    Q1     Q2     Q3     Q4     Total     Q1     Q2     Q3     Q4     Total     Q1     Q2     Q3     Q4     Total  

Net Sales (1)

  $ 387,129     $ 385,819     $ 423,781     $ 422,688     $ 1,619,417     $ 413,135     $ 427,059     $ 458,421     $ 443,024     $ 1,741,639     $ 438,910     $ 457,930     $ 465,208     $ 493,744     $ 1,855,791  

Cost of Goods Sold

    276,654       273,512       303,707       298,219       1,152,092       293,233       303,203       335,186       310,007       1,241,629       311,227       325,390       330,215       347,289       1,314,120  
                                                                                                                       

Gross Profit

    110,475       112,307       120,074       124,469       467,325       119,902       123,856       123,235       133,017       500,010       127,683       132,540       134,993       146,455       541,672  

General & Administrative Expenses (2)

    70,337       69,279       72,053       75,639       287,308       73,664       73,391       75,222       78,423       300,700       83,600       77,315       79,370       83,688       323,973  

Selling Expenses

    25,774       26,217       27,469       28,148       107,608       27,498       28,878       30,140       30,307       116,823       29,551       30,763       31,509       33,473       125,295  
                                                                                                                       

Income from operations

    14,364       16,811       20,552       20,682       72,409       18,740       21,587       17,873       24,287       82,487       14,532       24,462       24,115       29,294       92,403  

Interest Expense

    (1,509 )     (1,358 )     (1,561 )     (1,456 )     (5,884 )     (1,406 )     (1,336 )     (1,320 )     (1,284 )     (5,346 )     (1,358 )     (1,533 )     (1,811 )     (2,071 )     (6,773 )

Interest & Investment Income

    99       111       75       138       423       101       282       426       385       1,194       528       114       26       23       691  

Other Income

    457       1,750       435       504       3,146       469       429       517       591       2,006       544       546       833       5,361       7,284  
                                                                                                                       

Income from Continuing Operations before Income Taxes

    13,411       17,314       19,501       19,868       70,094       17,904       20,962       17,496       23,979       80,341       14,246       23,589       23,163       32,608       93,605  

Provision for Income Taxes

    5,271       6,529       7,080       6,957       25,837       6,949       8,187       6,376       8,348       29,860       5,559       9,106       9,001       13,165       36,831  
                                                                                                                       

Income from Continuing Operations

    8,140       10,785       12,421       12,911       44,257       10,955       12,775       11,120       15,631       50,481       8,687       14,483       14,162       19,442       56,775  
                                                                                                                       

Net (Loss) Income

  $ 8,140     $ 10,785     $ 12,421     $ 12,911     $ 44,257     $ 10,955     $ 12,775     $ 11,120     $ 15,631     $ 50,481     $ 8,687     $ 14,483     $ 14,162     $ 19,442     $ 56,775  
                                                                                                                       

Earnings (loss) per share—Basic:

                             

Income from Continuing Operations

  $ 0.13     $ 0.16     $ 0.19     $ 0.19     $ 0.67     $ 0.16     $ 0.19     $ 0.17     $ 0.23     $ 0.75     $ 0.13     $ 0.22     $ 0.22     $ 0.31     $ 0.88  
                                                                                                                       

Net (Loss) Income

  $ 0.13     $ 0.16     $ 0.19     $ 0.19     $ 0.67     $ 0.16     $ 0.19     $ 0.17     $ 0.23     $ 0.75     $ 0.13     $ 0.22     $ 0.22     $ 0.31     $ 0.88  
                                                                                                                       

Earnings (loss) per share—Diluted:

                             

Income from Continuing Operations

  $ 0.12     $ 0.16     $ 0.19     $ 0.19     $ 0.66     $ 0.16     $ 0.18     $ 0.16     $ 0.23     $ 0.73     $ 0.13     $ 0.22     $ 0.22     $ 0.31     $ 0.86  
                                                                                                                       

Net (Loss) Income

  $ 0.12     $ 0.16     $ 0.19     $ 0.19     $ 0.66     $ 0.16     $ 0.18     $ 0.16     $ 0.23     $ 0.73     $ 0.13     $ 0.22     $ 0.22     $ 0.31     $ 0.86  
                                                                                                                       

WASO—Basic

    64,877       65,392       65,779       66,546       65,643       67,310       67,453       67,054       67,059       67,219       66,793       65,806       63,999       62,213       64,703  

WASO—Diluted

    65,860       66,487       66,931       68,062       66,887       68,947       69,478       69,458       69,419       69,325       68,765       67,067       65,756       63,152       66,184  

Net Sales by Segment:

                             

Physician Business

  $ 250,544     $ 255,422     $ 290,010     $ 290,844     $ 1,086,820     $ 284,438     $ 300,813     $ 329,160     $ 313,109     $ 1,227,520     $ 306,245     $ 320,171     $ 326,520     $ 355,749     $ 1,308,685  

Elder Care Business

    136,585       130,397       133,771       131,844       532,597       128,697       126,246       129,261       129,915       514,119       132,664       137,759       138,688       137,995       547,106  
                                                                                                                       
  $ 387,129     $ 385,819     $ 423,781     $ 422,688     $ 1,619,417     $ 413,135     $ 427,059     $ 458,421     $ 443,024     $ 1,741,639     $ 438,910     $ 457,930     $ 465,208     $ 493,744     $ 1,855,791  
                                                                                                                       

Billing Days:

    64       63       62       64       253       64       63       62       64       253       64       63       62       64       253  

Net Sales Per Billing Day:

                             

Physician Business

  $ 3,915     $ 4,054     $ 4,678     $ 4,544     $ 4,296     $ 4,444     $ 4,775     $ 5,309     $ 4,892     $ 4,852     $ 4,785     $ 5,082     $ 5,266     $ 5,559     $ 5,173  

Elder Care Business

    2,134       2,070       2,158       2,060       2,105       2,011       2,004       2,085       2,030       2,032       2,073       2,187       2,237       2,156       2,162  
                                                                                                                       
  $ 6,049     $ 6,124     $ 6,836     $ 6,604     $ 6,401     $ 6,455     $ 6,779     $ 7,394     $ 6,922     $ 6,884     $ 6,858     $ 7,269     $ 7,503     $ 7,715     $ 7,335  
                                                                                                                       

 

Numbers may not foot due to rounding differences


PSS World Medical, Inc.

As of September 26, 2008

SelectTM Net Sales

(in thousands)

 

     Fiscal 2004    Fiscal 2005    Fiscal 2006    Fiscal 2007    Fiscal 2008

Consolidated Select Sales

   $ 121,211    $ 137,540    $ 157,296    $ 185,844    $ 234,810

 

Numbers may not foot due to rounding differences


PSS World Medical, Inc.

Segment Information

As of September 26, 2008

(in thousands)

 

     Three Months Ended     Six Months Ended  
     9/26/2008     9/28/2007     9/26/2008     9/28/2007  

NET SALES:

        

Physician Business

   341,761     320,171     673,147     626,416  

Elder Care Business

   149,485     137,759     289,891     270,424  

Corporate Shared Services

   356     —       779     (0 )
                        

Total Net Sales

   491,603     457,930     963,817     896,840  
                        

BILLING DAYS:

   63     63     127     127  

NET SALES PER BILLING DAY:

        

Physician Business

   5,425     5,082     5,300     4,932  

Elder Care Business

   2,373     2,187     2,283     2,129  

Corporate Shared Services

   6     —       6     (0 )
                        

Total Net Sales Per Billing Day

   7,803     7,269     7,589     7,062  
                        

INCOME FROM OPERATIONS:

        

Physician Business

   26,164     20,910     48,373     39,427  

Elder Care Business

   8,399     6,963     13,853     11,549  

Corporate Shared Services

   (10,102 )   (3,411 )   (19,680 )   (11,982 )
                        

Total Income from operations

   24,460     24,462     42,545     38,994  
                        

DEPRECIATION:

        

Physician Business

   1,881     2,188     3,722     4,266  

Elder Care Business

   1,237     1,141     2,419     2,286  

Corporate Shared Services

   1,739     1,428     3,492     2,805  
                        

Total Depreciation

   4,857     4,758     9,633     9,357  
                        

AMORTIZATION OF INTANGIBLE AND OTHER ASSETS:

        

Physician Business

   937     767     1,678     1,549  

Elder Care Business

   594     638     1,175     1,285  

Corporate Shared Services

   22     1     44     30  
                        

Total amortization of intangible and other assets

   1,553     1,406     2,897     2,864  
                        

PROVISION FOR DOUBTFUL ACCOUNTS:

        

Physician Business

   665     781     1,148     1,385  

Elder Care Business

   107     68     1,471     415  
                        

Total provision for doubtful accounts

   772     849     2,620     1,799  
                        

INTEREST EXPENSE:

        

Physician Business

   1,013     1,236     2,026     2,309  

Elder Care Business

   2,002     1,958     3,977     3,917  

Corporate Shared Services

   (137 )   (1,661 )   (1,391 )   (3,334 )
                        

Total interest expense

   2,878     1,533     4,612     2,891  
                        

INTEREST AND INVESTMENT INCOME:

        

Elder Care Business

   10     3     25     6  

Corporate Shared Services

   833     111     940     636  
                        

Total interest and investment income

   842     114     964     642  
                        

PROVISION (BENEFIT) FOR INCOME TAXES:

        

Physician Business

   9,117     7,690     17,676     14,657  

Elder Care Business

   2,327     1,928     3,704     2,957  

Corporate Shared Services

   (2,399 )   (512 )   (5,569 )   (2,949 )
                        

Total provision for income taxes

   9,045     9,106     15,811     14,664  
                        

 

Numbers may not foot due to rounding differences


PSS World Medical, Inc.

Current Fiscal Year Balance Sheet

(in thousands)

Consolidated

 

     As of
ASSETS    6/27/08    9/26/08

Cash

   29,840    226,049

Accounts Receivable, net

   227,661    240,806

Inventory, net

   192,707    199,337

Deferred Tax Assets

   8,525    —  

Other Current Assets

   26,147    22,214
         

Total Current Assets

   484,880    688,406
         

Property and Equipment, net

   91,881    95,866

Intangibles, net

   25,738    24,345

Goodwill

   112,320    112,392

Other Long-Term Assets

   81,977    121,698
         

Total Long-Term Assets

   311,916    354,301
         

Total Assets

   796,796    1,042,706
         
LIABILITIES & EQUITY          

Accounts Payable

   128,656    149,668

Accrued Expenses

   38,055    50,816

Current Maturities of Long-Term Debt

   200,780    201,068

Deferred Tax Liabilities

   —      5,496

Other Current Liabilities

   8,102    8,723
         

Total Current Liabilities

   375,592    415,772
         

Long-Term Debt

   706    232,284

Deferred Tax Liability Non-Current

   1,668    —  

Other Long-Term Liabilities

   66,957    64,763

Total Long-Term Liabilities

   69,331    297,047

Total Liabilities

   444,924    712,819
         

Total Equity

   351,872    329,888
         

Total Liabilities & Equity

   796,796    1,042,706
         

 

Numbers may not foot due to rounding differences


PSS World Medical, Inc.

Balance Sheet Trend

(in thousands)

Consolidated

 

    Fiscal 2006   Fiscal 2007   Fiscal 2008

ASSETS

  Jun-05   Sep-05   Dec-05   Mar-06   Jun-06   Sep-06   Dec-06   Mar-07   Jun-07   Sep-07   Dec-07   Mar-08

Cash

  23,836   17,466   26,651   23,867   27,784   45,678   54,904   46,658   23,954   17,041   15,031   21,122

Accounts Receivable, net

  208,642   213,585   207,659   208,964   206,405   225,536   219,822   222,776   222,699   232,282   224,282   237,248

Inventory, net

  132,684   136,450   167,407   173,458   170,612   172,127   186,193   174,130   187,499   188,087   214,256   190,846

Deferred Tax Assets

  29,113   20,183   14,298   12,959   11,181   9,042   7,379   8,776   8,987   9,319   9,175   10,488

Other Current Assets

  22,182   25,822   27,937   33,827   32,876   39,288   37,329   34,434   34,257   27,894   31,611   48,745
                                               

Total Current Assets

  416,457   413,506   443,952   453,075   448,858   491,671   505,627   486,774   477,396   474,623   494,355   508,449
                                               

Property and Equipment, net

  84,173   86,840   86,475   87,663   88,214   87,291   85,885   88,627   89,347   89,339   89,897   90,680

Intangibles, net

  21,217   34,427   35,395   34,345   33,350   32,343   31,186   29,758   30,280   28,991   27,669   26,305

Goodwill

  86,273   103,420   105,452   105,521   106,519   106,819   106,971   107,366   110,993   110,727   110,868   110,679

Investment in available for sale securities

  —     —     —     —     —     —     —     —     —     46,147   50,206   —  

Other Long-Term Assets

  47,315   50,862   53,665   56,371   54,983   54,935   58,063   62,450   98,380   69,856   68,580   78,713
                                               

Total Long-Term Assets

  238,978   275,549   280,987   283,900   283,066   281,388   282,105   288,201   329,000   345,060   347,220   306,377
                                               

Total Assets

  655,435   689,055   724,939   736,975   731,924   773,059   787,732   774,975   806,396   819,683   841,575   814,826
                                               

 

    Fiscal 2006   Fiscal 2007   Fiscal 2008

LIABILITIES & EQUITY

  Jun-05   Sep-05   Dec-05   Mar-06   Jun-06   Sep-06   Dec-06   Mar-07   Jun-07   Sep-07   Dec-07   Mar-08

Accounts Payable

  115,455   118,953   141,622   139,227   122,449   145,767   162,338   131,330   144,572   149,827   161,728   135,930

Accrued Expenses

  26,660   33,196   30,413   34,499   27,748   34,827   31,670   37,224   33,099   33,274   34,350   46,056

Current Maturities of Long-Term Debt (1)

  25,679   27,786   25,788   509   517   1,655   152,154   2,238   2,132   32,129   33,660   220,987

Other Current Liabilities

  12,661   11,883   11,837   13,639   12,490   13,917   10,730   11,440   15,267   15,000   15,846   11,969
                                               

Total Current Liabilities

  180,455   191,818   209,660   187,874   163,204   196,166   356,892   182,232   195,070   230,230   245,584   414,942
                                               

Long-Term Debt

  151,192   151,113   150,981   150,855   150,725   150,616   460   150,675   150,527   150,449   150,839   725

Other Long-Term Liabilities

  35,870   41,179   43,509   49,433   54,274   57,781   62,302   61,207   70,414   66,788   67,133   64,130
                                               

Total Long-Term Liabilities

  187,062   192,292   194,490   200,288   204,999   208,397   62,762   211,882   220,941   217,237   217,972   64,855

Total Liabilities

  367,517   384,110   404,150   388,162   368,203   404,563   419,654   394,114   416,011   447,467   463,556   479,797
                                               

Total Equity

  287,918   304,945   320,789   348,813   363,721   368,496   368,078   380,861   390,385   372,216   378,019   335,029
                                               

Total Liabilities & Equity

  655,435   689,055   724,939   736,975   731,924   773,059   787,732   774,975   806,396   819,683   841,575   814,826
                                               

 

(1) During the first quarter of fiscal year 2009, the Company corrected the classification of the Company’s $150 million 2.25% senior convertible notes at March 28, 2008 from long-term debt to short-term debt.

 

Numbers may not foot due to rounding differences


PSS World Medical, Inc.

Unaudited Operating Highlights

Current Fiscal Year

(in millions)

 

     Three Months Ended     Six Month Ended  
     Sept. 26,
2008
    Sept. 28,
2007
    Sept. 26,
2008
    Sept. 28,
2007
 

Net Sales:

        

Physician Business

   $ 341.8     $ 320.2     $ 673.1     $ 626.4  

Elder Care Business

     149.5       137.8       289.9       270.4  

Corporate Shared Services

     0.4       —         0.8       —    
                                

Total Net Sales

   $ 491.6     $ 457.9     $ 963.8     $ 896.8  
                                

Income from Operations:

        

Physician Business

   $ 26.2     $ 20.9     $ 48.4     $ 39.4  

Elder Care Business

     8.4       7.0       13.9       11.5  

Corporate Shared Services

     (10.1 )     (3.4 )     (19.7 )     (12.0 )
                                

Total income from operations

   $ 24.5     $ 24.5     $ 42.5     $ 39.0  
                                

EBITDA (a) 

   $ 31.4     $ 31.2     $ 56.2     $ 52.3  

Income from operations, as a percentage of net sales

     5.0 %     5.3 %     4.4 %     4.3 %

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

     20.4 %     27.2 %     27.0 %     22.9 %

Billing Days

     63       63       127       127  

Net Sales Per Billing Day (in thousands):

        

Physician Business

   $ 5,425     $ 5,082     $ 5,300     $ 4,932  

Elder Care Business

     2,373       2,187       2,283       2,129  

Corporate Shared Services

     6       —         6       —    
                                

Total Net Sales Per Billing Day

   $ 7,803     $ 7,269     $ 7,589     $ 7,062  
                                

Net Sales Per Billing Day Growth Rate:

        

Physician Business

     6.7 %       7.5 %  

Elder Care Business

     8.5 %       7.2 %  

Total Net Sales Per Billing Day Growth Rate

     7.4 %       7.5 %  
                 Annualized  

DSO (c)

        

Physician Business

         40.8       42.6  

Elder Care Business

         50.1       50.7  

DOH (d) 

        

Physician Business

         52.2       48.8  

Elder Care Business

         52.8       56.1  

DIP (e) 

        

Physician Business

         40.7       44.9  

Elder Care Business

         28.1       27.9  

Cash Conversion Days (f) 

        

Physician Business

         52.2       46.5  

Elder Care Business

         74.8       78.8  
                 As of  
                 Sept. 26, 2008     Sept. 28, 2007  

Operational working capital (g)

       $ 290.5     $ 270.5  

Net Debt:

        

Bank debt

       $ 50.0     $ 31.4  

Other debt

       $ 3.4     $ 1.2  

Convertible senior notes

       $ 380.0     $ 150.0  

Less: Cash and cash equivalents

       $ (226.0 )   $ (17.0 )
                    

Net Debt

       $ 207.4     $ 165.6  
                    

 

Numbers may not foot due to rounding differences


PSS World Medical, Inc.

Selling Days Calendar FY08-FY10

 

FY2008

 

FY2009

 

FY2010

   

Closing

Date

  Selling
Days
 

Closing

Date

  Selling
Days
 

Closing

Date

  Selling
Days
 

Notes

27-Apr

  20   25-Apr   20   24-Apr   20   A

25-May

  20   30-May   24   29-May   24   A

29-Jun

  24   27-Jun   20   26-Jun   20   B
                 
  64     64     64  
                 

27-Jul

  19   25-Jul   19   31-Jul   24   A

31-Aug

  25   29-Aug   25   28-Aug   20   A

28-Sep

  19   26-Sep   19   2-Oct   24   B
                 
  63     63     68  
                 

26-Oct

  20   31-Oct   25   30-Oct   20   A

30-Nov

  23   28-Nov   18   27-Nov   18   A

28-Dec

  19   2-Jan   23   1-Jan   23   B
  62     66     61  
                 

25-Jan

  19   30-Jan   20   29-Jan   20   A
                 

29-Feb

  25   27-Feb   20   26-Feb   20   A

28-Mar

  20   27-Mar   20   2-Apr   25   B
                 
  64     60     65  
                 
  253     253     258  

 

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).

 

Holidays:      
Jan    1    New Year’s Day
May    1    Memorial Day
July    1    Independence Day
Sept    1    Labor Day
Nov    2    Thanksgiving
Dec    2    Christmas

 

Numbers may not foot due to rounding differences


PSS World Medical, Inc.

EBITDA Calculation

Current Fiscal Year

(in thousands)

 

     Fiscal 2009  
     Q1     Q2  

Net Income

   $ 10,317     $ 13,898  

Plus: Interest expense

     1,733       2,878  

Less: Interest and investment income

     (122 )     (842 )

Plus: Provision for income taxes

     6,766       9,045  

Plus: Depreciation

     4,775       4,857  

Plus: Amortization of intangible assets

     1,344       1,553  
                

EBITDA

   $ 24,813     $ 31,390  
                

 

Numbers may not foot due to rounding differences


PSS World Medical, Inc.

EBITDA Calculation

(in thousands)

 

    Fiscal 2006     Fiscal 2007     Fiscal 2008  
    Q1     Q2     Q3     Q4     Total
FY 2006
    Q1     Q2     Q3     Q4     Total
FY 2007
    Q1     Q2     Q3     Q4     Total
FY 2008
 

Income from Continuing Operations

  $ 8,140     $ 10,785     $ 12,421     $ 12,911     $ 44,257     $ 10,955     $ 12,775     $ 11,120     $ 15,631     $ 50,481     $ 8,687     $ 14,483     $ 14,162     $ 19,442     $ 56,775  

Plus: Interest expense

    1,509       1,358       1,561       1,456       5,884       1,406       1,336       1,320       1,284       5,346       1,358       1,533       1,811       2,071       6,773  

Less: Interest and investment income

    (99 )     (111 )     (75 )     (138 )     (423 )     (101 )     (282 )     (426 )     (385 )     (1,194 )     (528 )     (114 )     (26 )     (23 )     (691 )

Plus: Provision for income taxes

    5,271       6,529       7,080       6,957       25,837       6,949       8,187       6,376       8,348       29,860       5,559       9,106       9,001       13,165       36,831  

Plus: Depreciation

    3,316       3,468       3,673       3,475       13,932       4,094       4,145       4,215       4,296       16,750       4,595       4,758       4,672       4,682       18,707  

Plus: Amortization of intangible assets

    1,361       1,389       1,677       1,871       6,298       1,505       1,472       1,468       1,463       5,908       1,458       1,406       1,362       1,360       5,586  
                                                                                                                       

EBITDA

  $ 19,498     $ 23,418     $ 26,337     $ 26,532     $ 95,785     $ 24,808     $ 27,633     $ 24,073     $ 30,637     $ 107,151     $ 21,128     $ 31,172     $ 30,983     $ 40,697     $ 123,980  
                                                                                                                       

 

Numbers may not foot due to rounding differences


PSS World Medical, Inc.

Return on Committed Capital (ROCC)

Current Fiscal Year

(in thousands)

Consolidated

 

     Fiscal 2009  
     Q1     Q2  

Quarterly Average Committed Capital (1)

   392,048     392,958  

Committed Capital - Current Quarter

   385,462     400,455  

Committed Capital - Previous Quarter

   398,635     385,462  

Return on Committed Capital - Quarterly (2)

   20.4 %   27.0 %

Return:

            

Net Income

   10,317     13,898  

Add:

    

Provision for Income Taxes

   6,766     9,045  

Interest Expense

   1,733     2,878  

Amortization

   1,344     1,553  

Interest and Investment Income

   (122 )   (842 )
            
   20,037     26,533  
            

Committed Capital:

            

Total Assets

   796,796     1,042,706  

Less assets excluded:

    

Cash

   (29,840 )   (226,049 )

Goodwill and Intangibles, net

   (138,058 )   (136,736 )

Total Liabilities

   (444,924 )   (712,819 )

Plus liabilities excluded:

    

Current debt

   200,780     201,068  

Long-term debt

   706     232,284  
            
   385,462     400,455  
            

 

(1) Quarterly Average Committed Capital equals the sum of the committed capital of the most recent two quarters, divided by two.
(2) Return on Committed Capital equals Return divided by Committed Capital. Quarterly calculations are annualized.

 

Numbers may not foot due to rounding differences


PSS World Medical, Inc.

Return on Committed Capital (ROCC)

(in thousands)

Consolidated

 

    Fiscal 2006     Fiscal 2007     Fiscal 2008  
    Q1     Q2     Q3     Q4     Total FY
2006
    Q1     Q2     Q3     Q4     Total FY
2007
    Q1     Q2     Q3     Q4     Total FY
2008
 

Quarterly Average Committed Capital (1)

  316,837     322,662     325,748     330,989       340,070     341,619     331,779     338,812       363,905     387,926     403,493     403,793    

Annual Average Committed Capital (2)

          321,764             341,411             374,314  

Committed Capital - Current Quarter

  322,976     322,347     329,148     332,830       347,310     335,927     327,631     349,992       377,817     398,035     408,951     398,635    

Committed Capital - Previous Quarter

  310,697     322,976     322,347     329,148       332,830     347,310     335,927     327,631       349,992     377,817     398,035     408,951    

Committed Capital - Current Year End

          332,830             349,992             398,635  

Committed Capital - Previous Year End

          310,697             332,830             349,992  

Return on Committed Capital - Quarterly (3)

  20.4 %   24.7 %   27.8 %   27.9 %     24.4 %   27.5 %   23.9 %   31.1 %     18.2 %   27.2 %   26.1 %   35.7 %  

Return on Committed Capital - Annual

          25.4 %           26.5 %           28.1 %

Return:

                                                                                         

Income from Continuing Operations before Extraordinary Loss

  8,140     10,785     12,421     12,911     44,257     10,955     12,775     11,120     15,631     50,481     8,687     14,483     14,162     19,442     56,775  

Add:

                             

Provision for Income Taxes

  5,271     6,529     7,080     6,957     25,837     6,949     8,187     6,376     8,348     29,860     5,559     9,106     9,001     13,165     36,831  

Interest Expense

  1,509     1,358     1,550     1,467     5,884     1,406     1,336     1,320     1,284     5,346     1,358     1,533     1,811     2,071     6,773  

Amortization

  1,361     1,389     1,677     1,871     6,298     1,500     1,477     1,469     1,462     5,908     1,458     1,406     1,362     1,360     5,587  

Interest and Investment Income

  (99 )   (111 )   (64 )   (149 )   (423 )   (101 )   (282 )   (426 )   (385 )   (1,194 )   (528 )   (114 )   (26 )   (23 )   (691 )
                                                                                         
  16,182     19,950     22,664     23,057     81,853     20,709     23,493     19,859     26,340     90,401     16,534     26,414     26,310     36,016     105,274  
                                                                                         

Committed Capital:

                                                                                         

Total Assets

  655,435     689,055     724,939     736,975     736,975     731,924     773,059     787,732     774,975     774,975     806,396     819,683     841,575     814,825     814,825  

Less assets excluded:

                             

Cash

  (23,836 )   (17,466 )   (26,651 )   (23,867 )   (23,867 )   (27,784 )   (45,678 )   (54,904 )   (46,658 )   (46,658 )   (23,954 )   (17,041 )   (15,031 )   (21,122 )   (21,122 )

Goodwill and Intangibles, net

  (107,490 )   (137,847 )   (140,847 )   (139,866 )   (139,866 )   (139,869 )   (139,162 )   (138,157 )   (137,124 )   (137,124 )   (141,273 )   (139,718 )   (138,537 )   (136,984 )   (136,984 )

DTA from sale of Imaging Business

  (10,487 )   (6,184 )   (912 )   (3,614 )   (3,614 )   —             —              

Total Liabilities

  (367,517 )   (384,110 )   (404,150 )   (388,162 )   (388,162 )   (368,203 )   (404,563 )   (419,654 )   (394,114 )   (394,114 )   (416,011 )   (447,467 )   (463,556 )   (479,797 )   (479,797 )

Plus liabilities excluded:

                             

Current debt

  25,679     27,786     25,788     509     509     517     1,655     152,154     2,238     2,238     2,132     32,129     33,660     70,987     70,987  

Long-term debt

  151,192     151,113     150,981     150,855     150,855     150,725     150,616     460     150,675     150,675     150,527     150,449     150,839     150,725     150,725  
                                                                                         
  322,976     322,347     329,148     332,830     332,830     347,310     335,927     327,631     349,992     349,992     377,817     398,035     408,951     398,635     398,635  
                                                                                         

 

(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.

PSS Segment Revenue Adjustment for Estimate of Lost

Revenue from Hurricanes

As of September 26, 2008

 

Consolidated    For the Three Months Ended  
(dollars in millions)    Sept. 26, 2008    Sept. 28, 2007    Growth  

PSS Segment Revenue

   $ 341.8    $ 320.2    6.7 %

Estimate of lost revenue from Hurricanes

     3.0      —     
                

PSS Segment Revenue adjusted for estimate of lost revenue from Hurricanes

   $ 344.8    $ 320.2    7.7 %
                

 


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. Southern Anesthesia & Surgical, Inc. (“SAS”) accounts receivable balance of $1.4 million as of September 30, 2005, has been excluded from the Fiscal Year 2006 calculation.
(d) DOH is average inventory divided by average daily cost of goods sold (“COGS”). Average inventory is the sum of inventory at the beginning and end of the most recent four quarters divided by five. Average daily COGS is quarterly COGS for the most recent four quarters divided by 360. SAS inventory balance of $3.9 million as of September 30, 2005, has been excluded from the Fiscal Year 2006 calculation.
(e) DIP is average accounts payable divided by average daily COGS. Average accounts payable is the sum of accounts payable at the beginning and end of the most recent four quarters divided by five. SAS accounts payable balance of $3.8 million as of September 30, 2005, has bee excluded from the Fiscal Year 2006 calculation.
(f) Cash Conversion Days is the sum of DSO and DOH less DIP.
(g) Operational working capital equals accounts receivable plus inventory minus accounts payable.