Financial Supplement

EX-99.2 3 dex992.htm FINANCIAL SUPPLEMENT Financial Supplement

Exhibit 99.2

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Financial Supplement

For the Third Quarter of Fiscal Year 2010 ending January 1, 2010

PSS World Medical, Inc.

As of January 1, 2010

Current Fiscal Year

(in thousands, except per share data)


	Fiscal 2010
	Q1			Q2			Q3
Net sales	$	493,554		$	561,976		$	502,764
Cost of goods sold		347,581			389,404			348,064

Gross profit		145,974			172,571			154,700
General & administrative expenses		91,638			97,208			89,439
Selling expenses		32,687			36,728			33,249

Income from operations		21,649			38,635			32,012
Interest expense		(4,261	)		(4,532	)		(4,214	)
Interest & investment income		134			95			117
Other income		3,995			452			741

Income from ops before income taxes		21,517			34,650			28,657
Provision for income taxes		8,213			12,964			10,736

Net income	$	13,304		$	21,686		$	17,921


Earnings per share - basic:

Net income	$	0.23		$	0.37		$	0.31


Earnings per share - Diluted:

Net income	$	0.23		$	0.37		$	0.30


WASO - Basic		58,380			58,566			58,522
WASO - Diluted		58,859			59,390			59,390

Net sales by segment:
Physician Business	$	342,292		$	398,531		$	352,961
Elder Care Business		150,381			162,970			149,400
Corporate Shared Services		882			475			403

	$	493,554		$	561,976		$	502,764


Billing days:		64			68			61

Net sales per billing day:
Physician Business	$	5,348		$	5,861		$	5,786
Elder Care Business		2,350			2,397			2,449
Corporate Shared Services		14			7			7

	$	7,712		$	8,264		$	8,242

Numbers may not foot due to rounding differences.

PSS World Medical, Inc.

As of January 1, 2010

(in thousands, except per share data)


	Fiscal 2007															Fiscal 2008															Fiscal 2009
	Q1			Q2			Q3			Q4			Total			Q1			Q2			Q3			Q4			Total			Q1			Q2			Q3			Q4			Total
Net Sales	$	413,135		$	427,059		$	458,421		$	443,024		$	1,741,639		$	438,910		$	457,930		$	465,208		$	493,744		$	1,855,791		$	472,215		$	491,603		$	519,145		$	469,728		$	1,952,691
Cost of Goods Sold		293,233			303,204			335,185			310,008			1,241,629			311,227			325,390			330,215			347,289			1,314,120			333,283			344,347			364,282			328,868			1,370,781

Gross Profit		119,902			123,856			123,235			133,017			500,010			127,683			132,540			134,993			146,455			541,672			138,931			147,255			154,863			140,860			581,910
General & Administrative Expenses		73,695			73,422			75,253			78,453			300,824			83,638			77,353			79,408			83,725			324,124			89,634			90,689			89,426			82,728			352,478
Selling Expenses		27,498			28,878			30,140			30,308			116,823			29,551			30,763			31,509			33,473			125,295			31,266			32,161			33,721			31,356			128,505

Income from operations		18,709			21,556			17,842			24,255			82,362			14,494			24,425			24,077			29,257			92,253			18,031			24,405			31,715			26,776			100,927
Interest Expense		(2,691	)		(2,635	)		(2,642	)		(2,631	)		(10,597	)		(2,764	)		(2,956	)		(3,247	)		(3,529	)		(12,495	)		(3,203	)		(5,300	)		(7,409	)		(6,247	)		(22,159	)
Interest & Investment Income		98			282			426			385			1,191			528			114			26			23			691			122			842			1,034			305			2,304
Other Income		469			429			517			591			2,006			544			546			833			5,361			7,284			608			520			877			638			2,643

Income from Continuing Operations before Income Taxes		16,588			19,632			16,144			22,601			74,965			12,802			22,129			21,690			31,112			87,732			15,559			20,467			26,218			21,472			83,716
Provision for Income Taxes		6,449			7,681			5,862			7,824			27,817			5,010			8,551			8,441			12,597			34,599			6,187			8,104			10,230			7,709			32,229

Income from Continuing Operations		10,139			11,951			10,282			14,777			47,148			7,792			13,578			13,249			18,515			53,133			9,372			12,363			15,989			13,763			51,486

Net Income	$	10,137		$	11,951		$	10,282		$	14,777		$	47,146		$	7,792		$	13,578		$	13,249		$	18,515		$	53,133		$	9,372		$	12,363		$	15,989		$	13,763		$	51,486

Earnings per share - Basic:
Income from Continuing Operations	$	0.15		$	0.18		$	0.15		$	0.22		$	0.70		$	0.12		$	0.21		$	0.21		$	0.30		$	0.82		$	0.15		$	0.21		$	0.27		$	0.23		$	0.86

Net Income	$	0.15		$	0.18		$	0.15		$	0.22		$	0.70		$	0.12		$	0.21		$	0.21		$	0.30		$	0.82		$	0.15		$	0.21		$	0.27		$	0.23		$	0.86

Earnings per share - Diluted:
Income from Continuing Operations	$	0.15		$	0.17		$	0.15		$	0.21		$	0.68		$	0.11		$	0.20		$	0.20		$	0.29		$	0.80		$	0.15		$	0.20		$	0.27		$	0.23		$	0.85

Net Income	$	0.15		$	0.17		$	0.15		$	0.21		$	0.68		$	0.11		$	0.20		$	0.20		$	0.29		$	0.80		$	0.15		$	0.20		$	0.27		$	0.23		$	0.85

WASO - Basic		67,310			67,453			67,054			67,059			67,219			66,793			65,806			63,999			62,213			64,703			61,003			59,941			59,481			59,307			59,937
WASO - Diluted		68,947			69,478			69,458			69,419			69,325			68,765			67,067			65,756			63,152			66,184			61,723			60,921			60,322			59,801			60,696
Net Sales by Segment:
Physician Business	$	284,438		$	300,813		$	329,159		$	313,109		$	1,227,520		$	306,245		$	320,171		$	326,520		$	355,749		$	1,308,685		$	331,386		$	341,761		$	357,269		$	326,966		$	1,357,382
Elder Care Business		128,696			126,246			129,261			129,915			514,118			132,664			137,759			138,688			137,995			547,106			140,406			149,485			161,874			142,743			594,509
		-			-			-			-			-			(0	)		-			-			-			-			423			356			2			19			800

	$	413,135		$	427,059		$	458,421		$	443,024		$	1,741,639		$	438,910		$	457,930		$	465,208		$	493,744		$	1,855,791		$	472,215		$	491,603		$	519,145		$	469,728		$	1,952,691


Billing Days:		64			63			62			64			253			64			63			62			64			253			64			63			66			60			253

Net Sales Per Billing Day:
Physician Business	$	4,444		$	4,775		$	5,309		$	4,892		$	4,852		$	4,785		$	5,082		$	5,266		$	5,559		$	5,173		$	5,178		$	5,425		$	5,413		$	5,449		$	5,365
Elder Care Business		2,011			2,004			2,085			2,030			2,032			2,073			2,187			2,237			2,156			2,162			2,194			2,373			2,453			2,379			2,350
		-			-			-			-			-			(0	)		-			-			-			-			7			6			-			-			3

	$	6,455		$	6,779		$	7,394		$	6,922		$	6,884		$	6,858		$	7,269		$	7,503		$	7,715		$	7,335		$	7,378		$	7,803		$	7,866		$	7,829		$	7,718

Numbers may not foot due to rounding differences.

PSS World Medical, Inc.

As of January 1, 2010

Select^TM Net Sales

(in thousands)


	Fiscal 2005		Fiscal 2006		Fiscal 2007		Fiscal 2008		Fiscal 2009
Consolidated Select Sales	$	137,540	$	157,296	$	185,844	$	234,810	$	281,536

Numbers may not foot due to rounding differences.

PSS World Medical, Inc.

Segment Information

As of January 1, 2010

(in thousands)


	Three Months Ended				Nine Months Ended
	1/1/2010		1/2/2009		1/1/2010		1/2/2009
NET SALES:
Physician Business	352,961		357,269		1,093,784		1,030,416
Elder Care Business	149,400		161,874		462,751		451,765
Corporate Shared Services	403		2		1,759		781

Total net sales	502,764		519,145		1,558,294		1,482,962


BILLING DAYS:	61		66		193		193

NET SALES PER BILLING DAY:
Physician Business	5,786		5,413		5,667		5,339
Elder Care Business	2,449		2,453		2,398		2,341
Corporate Shared Services	7		-		9		4

Total net sales per billing day	8,242		7,866		8,074		7,684


INCOME FROM OPERATIONS:
Physician Business	35,500		32,156		106,764		80,529
Elder Care Business	9,840		8,717		28,595		22,569
Corporate Shared Services	(13,328	)	(9,158	)	(43,063	)	(28,947	)

Total income from operations	32,012		31,715		92,296		74,151


DEPRECIATION:
Physician Business	2,006		1,866		5,916		5,587
Elder Care Business	1,229		1,256		3,758		3,675
Corporate Shared Services	2,322		1,995		6,385		5,595

Total depreciation	5,558		5,116		16,059		14,858


AMORTIZATION OF INTANGIBLE AND OTHER ASSETS:
Physician Business	570		679		1,762		2,357
Elder Care Business	603		563		1,688		1,738
Corporate Shared Services	62		21		226		65

Total amortization of intangible and other assets	1,235		1,264		3,676		4,161


PROVISION FOR DOUBTFUL ACCOUNTS:
Physician Business	687		342		1,955		1,490
Elder Care Business	244		526		1,437		1,998

Total provision for doubtful accounts	932		868		3,393		3,488


INTEREST EXPENSE:

Total interest expense	4,214		7,409		13,007		15,912


INTEREST AND INVESTMENT INCOME:
Elder Care Business	54		9		67		34
Corporate Shared Services	63		1,025		279		1,964

Total interest and investment income	117		1,034		346		1,999


PROVISION (BENEFIT) FOR INCOME TAXES:
Physician Business	12,808		12,142		38,893		29,818
Elder Care Business	2,875		2,591		8,405		6,295
Corporate Shared Services	(4,947	)	(4,503	)	(15,384	)	(11,593	)

Total provision for income taxes	10,736		10,230		31,913		24,520

Numbers may not foot due to rounding differences.

PSS World Medical, Inc.

Current Fiscal Year Balance Sheet

(in thousands)

Consolidated


	As of
	6/26/09		10/2/09		1/1/10
ASSETS

Cash	$	129,631	$	130,089	$	114,056
Accounts receivable, net		230,391		257,968		233,602
Inventory, net		196,160		212,813		230,725
Prepaid expenses		5,190		4,262		3,628
Other current assets		27,445		32,194		42,338

Total current assets		588,817		637,326		624,349


Property and equipment, net		103,552		105,499		106,956
Goodwill		114,255		115,280		120,828
Intangibles, net		22,442		21,604		25,289
Other long-term assets		65,065		73,819		77,748

Total long-term assets		305,314		316,202		330,821


Total assets	$	894,131	$	953,528	$	955,170


LIABILITIES & EQUITY

Accounts payable	$	133,781	$	156,966	$	137,676
Accrued expenses		46,196		43,248		48,051
Revolving line of credit and current portion of long term debt		50,953		50,970		56,321
Other current liabilities		12,882		13,653		13,121

Total current liabilities		243,812		264,837		255,169


Long-term debt		182,654		184,530		186,153
Other non-current liabilities		70,323		79,896		86,674

Total long-term liabilities		252,977		264,426		272,827


Total liabilities		496,789		529,263		527,996

Total equity		397,342		424,265		427,174

Total liabilities & equity	$	894,131	$	953,528	$	955,170

Numbers may not foot due to rounding differences.

PSS World Medical, Inc.

Balance Sheet Trend

(in thousands)

Consolidated


	Fiscal 2007				Fiscal 2008				Fiscal 2009
	Jun-06	Sep-06	Dec-06	Mar-07	Jun-07	Sep-07	Dec-07	Mar-08	Jun-08	Sep-08	Dec-08	Mar-09
ASSETS

Cash	27,784	45,676	54,904	46,658	23,954	17,041	15,031	21,122	29,840	226,055	214,709	82,031
Investment in available for sale securities	-	-	-	-	-	-	-	-	-	-	-	10,592
Accounts receivable, net	206,405	225,538	219,822	222,776	222,699	232,282	224,282	237,248	227,661	240,806	232,894	230,361
Inventory, net	170,612	172,127	186,193	174,130	187,499	188,087	214,256	190,846	192,707	199,337	239,940	207,593
Deferred tax assets	11,181	9,042	2,128	8,776	8,987	9,319	9,175	8,183	6,805	-	-	8,059
Other current assets	32,876	39,289	37,330	34,436	34,347	27,894	31,658	48,744	26,157	22,163	23,229	23,819

Total current assets	448,857	491,672	500,376	486,776	477,486	474,623	494,403	506,142	483,170	688,361	710,772	562,456


Property and equipment, net	88,977	88,089	86,720	89,498	90,213	90,208	90,781	91,584	92,803	96,849	97,113	101,205
Goodwill	106,519	106,819	106,972	107,366	110,993	110,727	110,868	110,679	112,320	112,392	112,717	112,768
Intangibles, net	33,350	32,343	31,186	29,758	30,280	28,991	27,669	26,305	25,738	24,345	23,102	22,958
Investment in available for sale securities	-	-	-	-	24,232	46,147	50,206	11,318	14,231	16,725	15,333	-
Other long-term assets	54,444	54,455	57,631	59,898	69,481	67,195	67,921	67,209	67,598	83,055	70,549	59,238

Total long-term assets	283,291	281,706	282,509	286,521	325,198	343,268	347,446	307,094	312,690	333,365	318,815	296,169


Total assets	732,148	773,378	782,885	773,297	802,685	817,891	841,849	813,236	795,860	1,021,726	1,029,587	858,624


	Fiscal 2007				Fiscal 2008				Fiscal 2009
	Jun-06	Sep-06	Dec-06	Mar-07	Jun-07	Sep-07	Dec-07	Mar-08	Jun-08	Sep-08	Dec-08	Mar-09
LIABILITIES & EQUITY

Accounts payable	122,449	145,767	162,338	131,330	144,572	149,827	161,728	135,930	128,656	149,674	155,133	127,300
Accrued expenses	27,748	34,827	31,670	37,224	33,190	33,275	34,350	46,056	38,055	50,816	43,170	52,718
Current maturities of long-term debt	517	1,655	138,334	2,238	2,132	32,129	33,660	214,732	196,116	198,022	199,606	50,937
Deferred tax liabilities, current	-	-	-	-	-	-	-	-	-	6,619	4,492	-
Other current liabilities	12,490	13,917	10,731	11,440	15,267	15,000	15,846	11,969	8,102	8,723	9,160	7,956

Total current liabilities	163,204	196,166	343,072	182,232	195,161	230,230	245,584	408,687	370,928	413,855	411,560	238,910


Long-term debt	134,053	135,358	460	138,318	139,657	141,091	143,020	725	706	177,650	179,395	180,965
Other long-term liabilities	60,689	63,702	62,457	63,922	70,413	68,190	69,976	64,473	68,975	64,763	56,503	60,719

Total long-term liabilities	194,742	199,060	62,917	202,240	210,070	209,282	212,996	65,198	69,682	242,413	235,899	241,685

Total liabilities	357,946	395,226	405,989	384,472	405,231	439,512	458,580	473,885	440,610	656,268	647,459	480,594

Total equity	374,202	378,152	376,896	388,824	397,454	378,379	383,269	339,351	355,250	365,458	382,127	378,030


Total liabilities & equity	732,148	773,378	782,885	773,297	802,685	817,891	841,849	813,236	795,860	1,021,726	1,029,587	858,624

Numbers may not foot due to rounding differences.

PSS World Medical, Inc.

Unaudited Operating Highlights

Current Fiscal Year

(in millions)


	Three Months Ended						Nine Months Ended
	Jan. 1, 2010			Jan. 2, 2009			Jan. 1, 2010			Jan. 2, 2009
Net sales:
Physician Business	$	353.0		$	357.3		$	1,093.8		$	1,030.4
Elder Care Business		149.4			161.9			462.8			451.8
Corporate Shared Services		0.4			-			1.8			0.8

Total net sales	$	502.8		$	519.1		$	1,558.3		$	1,483.0


Income from operations:
Physician Business	$	35.5		$	32.2		$	106.8		$	80.5
Elder Care Business		9.8			8.7			28.6			22.6
Corporate Shared Services		(13.3	)		(9.2	)		(43.1	)		(28.9	)

Total income from operations	$	32.0		$	31.7		$	92.3		$	74.2


EBITDA (a)	$	39.5		$	39.0		$	117.2		$	95.2

Income from operations, as a percentage of net sales		6.4	%		6.1	%		5.9	%		5.0	%

Consolidated Return on Committed Capital (“ROCC”) (b)		33.9	%		34.3	%		33.7	%		26.5	%

Billing Days		61			66			193			193

Net Sales Per Billing Day (in thousands):
Physician Business	$	5,786		$	5,413		$	5,667		$	5,339
Elder Care Business		2,449			2,453			2,398			2,341
Corporate Shared Services		7			-			9			4

Total Net Sales Per Billing Day	$	8,242		$	7,866		$	8,074		$	7,684


Net Sales Per Billing Day Growth Rate:
Physician Business		6.9	%					6.1	%
Elder Care Business		(0.1	)%					2.4	%
Total Net Sales Per Billing Day Growth Rate		4.8	%					5.1	%

							Annualized
							Jan. 1, 2010			Jan. 2, 2009
DSO (c)
Physician Business								38.7			39.4
Elder Care Business								49.9			49.2
DOH (d)
Physician Business								56.1			54.6
Elder Care Business								53.7			51.9
DIP (e)
Physician Business								39.6			40.9
Elder Care Business								23.2			25.7
Cash Conversion Days (f)
Physician Business								55.2			53.1
Elder Care Business								80.4			75.4

							As of
							Jan. 1, 2010			Jan. 2, 2009
Operational working capital (g)							$	326.7		$	317.7

Net debt:
Bank debt							$	55.4		$	50.0
Other debt							$	2.1		$	3.0
Convertible senior notes							$	185.1		$	326.0
Less: Cash and cash equivalents							$	(114.1	)	$	(214.7	)

Net debt							$	128.4		$	164.3

Numbers may not foot due to rounding differences.

PSS WORLD MEDICAL, INC.

Non GAAP Reconciliations

Net income impact of swine flu related product sales

(in millions, except per share data)


	Three Months Ended					Nine Months Ended
	Jan. 1, 2010			Diluted EPS		Jan. 1, 2010			Diluted EPS
Net income	$	17.9		$	0.30	$	52.9		$	0.89
Less: Impact on pre-tax income from swine flu related product sales		(3.2	)				(7.7	)
Tax impact on swine flu related product sales		1.2					2.9

Net income adjusted for swine flu related product sales	$	15.9		$	0.27	$	48.1		$	0.81

Physician Business daily net sales impact from swine flu related product sales

(in millions)


	For the Three Months Ended
	January 1, 2010				January 2, 2009		Average
	Net Sales		Average Daily Net Sales		Net Sales	Average Daily Net Sales	Daily Net Sales
	Net Sales		Average Daily Net Sales		Net Sales	Average Daily Net Sales	Percent Change
Physician Business	353.0		5.8		357.3	5.4	6.9	%
Less: Impact of swine flu related product sales	(20.3	)	(0.3	)	-	-	N/A

Physician Business adjusted for swine flu related product sales	332.7		5.5		357.3	5.4	0.7	%

Net income impact of ASC 470-20 (Formerly FSP APB 14-1)

(in millions, except per share data)


	Three Months Ended					Three Months Ended
	Jan. 1, 2010			Diluted EPS		Jan. 2, 2009			Diluted EPS
Net Income	$	17.9		$	0.30	$	16.0		$	0.27
Add Back: Impact of ASC 470-20		1.7					3.5
Tax impact on ASC 470-20		(0.7	)				(1.3	)

Net income adjusted for the impact of ACS 470-20	$	19.0		$	0.32	$	18.2		$	0.30


	Nine Months Ended					Nine Months Ended
	Jan. 1, 2010			Diluted EPS		Jan. 2, 2009			Diluted EPS
Net Income	$	52.9		$	0.89	$	37.7		$	0.62
Add Back: Impact of ASC 470-20		5.4					7.5
Tax impact on ASC 470-20		(2.1	)				(2.8	)

Net income adjusted for the impact of ACS 470-20	$	56.3		$	0.95	$	42.4		$	0.69

Numbers may not foot due to rounding differences.

PSS World Medical, Inc.

Selling Days Calendar FY09-FY11

FY2009

FY2010

FY2011

Closing

Selling

Closing

Selling

Closing

Selling

Date

Days

Date

Days

Date

Days

Notes

Apr

25-Apr

24-Apr

30-Apr

May

30-May

29-May

28-May

Jun

27-Jun

26-Jun

2-Jul

Jul

25-Jul

31-Jul

30-Jul

Aug

29-Aug

28-Aug

27-Aug

Sep

26-Sep

2-Oct

1-Oct

Oct

31-Oct

30-Oct

29-Oct

Nov

28-Nov

27-Nov

26-Nov

Dec

2-Jan

1-Jan

31-Dec

Jan

30-Jan

29-Jan

28-Jan

Feb

27-Feb

26-Feb

25-Feb

Mar

27-Mar

2-Apr

1-Apr

Total

253

258

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 2010
	Q1			Q2			Q3			YTD
Net Income	$	13,304		$	21,686		$	17,921		$	52,911

Plus: Interest expense		4,261			4,532			4,214			13,007
Less: Interest and investment income		(134	)		(95	)		(117	)		(346	)
Plus: Provision for income taxes		8,213			12,964			10,736			31,913
Plus: Depreciation		5,245			5,256			5,558			16,059
Plus: Amortization of intangible assets		1,252			1,190			1,235			3,676

EBITDA	$	32,140		$	45,533		$	39,547		$	117,220

Numbers may not foot due to rounding differences.

PSS World Medical, Inc.

EBITDA Calculation

(in thousands)


	Fiscal 2007															Fiscal 2008															Fiscal 2009
	Q1			Q2			Q3			Q4			Total FY 2007			Q1			Q2			Q3			Q4			Total FY 2008			Q1			Q2			Q3			Q4			Total FY 2009
Net income	$	10,139		$	11,951		$	10,282		$	14,777		$	47,148		$	7,792		$	13,578		$	13,249		$	18,515		$	53,133		$	9,372		$	12,363		$	15,989		$	13,763		$	51,486

Plus: Interest expense		2,691			2,635			2,642			2,631			10,597			2,764			2,956			3,247			3,529			12,495			3,203			5,300			7,409			6,247			22,159
Less: Interest and investment income		(98	)		(282	)		(426	)		(385	)		(1,191	)		(528	)		(114	)		(26	)		(23	)		(691	)		(122	)		(842	)		(1,034	)		(305	)		(2,304	)
Plus: Provision for income taxes		6,449			7,681			5,862			7,824			27,817			5,010			8,551			8,441			12,597			34,599			6,187			8,104			10,230			7,709			32,229
Plus: Depreciation		4,107			4,170			4,242			4,304			16,823			4,632			4,796			4,710			4,719			18,858			4,830			4,912			5,116			5,144			20,002
Plus: Amortization of intangible assets		1,500			1,477			1,469			1,462			5,908			1,458			1,406			1,362			1,360			5,586			1,344			1,553			1,264			1,328			5,489

EBITDA	$	24,786		$	27,632		$	24,070		$	30,613		$	107,101		$	21,128		$	31,172		$	30,983		$	40,697		$	123,980		$	24,813		$	31,390		$	38,973		$	33,886		$	129,062

Numbers may not foot due to rounding differences.

PSS World Medical, Inc.

Return on Committed Capital (ROCC)

Current Fiscal Year

(in thousands)

Consolidated


	Fiscal 2010
	Q1			Q2			Q3
Quarterly Average Committed Capital ⁽¹⁾	$	378,397		$	378,706		$	401,134

Committed Capital - Current Quarter		364,619			392,792			409,475
Committed Capital - Previous Quarter		392,174			364,619			392,792
Committed Capital - Previous Year End

Return on Committed Capital - Quarterly ⁽²⁾		28.4	%		42.5	%		33.9	%

Return:
Net income		13,304			21,686			17,921

Add:
Provision for income taxes		8,213			12,964			10,736
Interest expense		4,261			4,532			4,214
Amortization		1,252			1,190			1,235
Interest and investment income		(134	)		(95	)		(117	)

	$	26,895		$	40,277		$	33,989


Committed Capital:
Total assets	$	894,131		$	953,528		$	955,170
Less assets excluded:
Cash		(129,631	)		(130,089	)		(114,056	)
Goodwill and intangibles, net		(136,696	)		(136,884	)		(146,117	)

Total liabilities		(496,792	)		(529,263	)		(527,996	)
Plus liabilities excluded:
Current debt		50,953			50,970			56,321
Long-term debt		182,654			184,530			186,153

	$	364,619		$	392,792		$	409,475

(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 2007										Fiscal 2008										Fiscal 2009
	Q1		Q2		Q3		Q4		Total FY 2007		Q1		Q2		Q3		Q4		Total FY 2008		Q1		Q2		Q3		Q4		Total FY 2009
Quarterly Average Committed Capital (1)	332,763		334,894		326,477		334,112				359,807		384,428		400,611		401,541				390,439		381,257		394,469		401,387
Annual Average Committed Capital (2)									335,832										371,150										394,438

Committed Capital - Current Quarter	339,461		330,327		322,628		345,597				374,016		394,840		406,381		396,702				384,175		378,339		410,600		392,174
Committed Capital - Previous Quarter	326,066		339,461		330,327		322,628				345,597		374,016		394,840		406,381				396,702		384,175		378,339		410,600
Committed Capital - Current Year End									345,597										396,702										392,174
Committed Capital - Previous Year End									326,066										345,597										396,702

Return on Committed Capital - Quarterly (3)	24.9	%	28.0	%	24.3	%	31.5	%	26.9	%	18.3	%	27.4	%	26.2	%	35.8	%	28.3	%	20.5	%	27.8	%	34.3	%	28.6	%	27.6	%
Return on Committed Capital - Annual

Return:
Income from continuing operations before extraordinary loss	10,139		11,951		10,282		14,777		47,148		7,792		13,578		13,249		18,515		53,133		9,372		12,363		15,989		13,763		51,486

Add:
Provision for income taxes	6,449		7,681		5,862		7,824		27,817		5,010		8,551		8,441		12,597		34,599		6,187		8,104		10,230		7,709		32,229
Interest expense	2,688		2,635		2,642		2,631		10,595		2,764		2,956		3,247		3,529		12,495		3,203		5,300		7,409		6,247		22,159
Amortization	1,500		1,477		1,469		1,462		5,908		1,458		1,406		1,362		1,360		5,586		1,344		1,553		1,264		1,328		5,489
Interest and investment income	(98	)	(282	)	(426	)	(385	)	(1,191	)	(528	)	(114	)	(26	)	(23	)	(691	)	(122	)	(842	)	(1,034	)	(305	)	(2,304	)

	20,677		23,462		19,828		26,309		90,277		16,496		26,377		26,273		35,978		105,123		19,983		26,478		33,856		28,742		109,059


Committed Capital:
Total assets	732,148		773,377		782,885		773,297		773,297		802,685		817,891		841,849		813,236		813,236		795,860		1,021,726		1,029,586		858,624		858,624
Less assets excluded:
Cash	(27,784	)	(45,676	)	(54,904	)	(46,658	)	(46,658	)	(23,954	)	(17,041	)	(15,031	)	(21,122	)	(21,122	)	(29,840	)	(226,055	)	(214,709	)	(82,031	)	(82,031	)
Goodwill and intangibles, net	(139,869	)	(139,162	)	(138,158	)	(137,124	)	(137,124	)	(141,273	)	(139,718	)	(138,537	)	(136,984	)	(136,984	)	(138,058	)	(136,736	)	(135,820	)	(135,726	)	(135,726	)
DTA from sale of imaging business	(1,658	)	(0	)	(0	)	(0	)	(0	)	(0	)	(0	)	(0	)	(0	)	(0	)	(0	)	(0	)	(0	)	(0	)	(0	)

Total liabilities	(357,946	)	(395,226	)	(405,989	)	(384,472	)	(384,472	)	(405,231	)	(439,512	)	(458,580	)	(473,885	)	(473,885	)	(440,610	)	(656,268	)	(647,459	)	(480,594	)	(480,594	)
Plus liabilities excluded:
Current debt	517		1,655		138,334		2,238		2,238		2,132		32,129		33,660		214,732		214,732		196,116		198,022		199,606		50,937		50,937
Long-term debt	134,053		135,358		460		138,318		138,318		139,657		141,091		143,020		725		725		706		177,650		179,395		180,965		180,965

	339,461		330,327		322,628		345,597		345,597		374,016		394,840		406,381		396,702		396,702		384,175		378,339		410,600		392,174		392,174

(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 Committe4d 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)	“Swine flu 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.