Pss World Medical : PSS World Medical Reports Results for Fiscal Year 2007

PSS World Medical, Inc. (NASDAQ GS:PSSI):

Fiscal Year 2007 Highlights:

• Consolidated net sales growth of 7.5%
  • Physician Business net sales growth of 12.9%
  • Elder Care Business net sales decreased by 3.5%
• Consolidated operating income of $82.5 million
  • Physician Business operating margin of 7.4%, an increase of 49 basis points (excluding write-down of unsold influenza vaccine inventory)
  • Elder Care Business operating margin of 4.2%, an increase of 120 basis points
• Consolidated cash flow from operations of $63.5 million
• Repurchased approximately 2.1 million common shares at an average price per share of $20.17

PSS World Medical, Inc. (NASDAQ GS:PSSI) announced today its results for the fiscal 2007 fourth quarter and year ended March 30, 2007.

David A. Smith, Chairman and Chief Executive Officer, commented, ?Fiscal year 2007 was a great year for the people we care most about ? our customers, employees and shareholders. Our customers' satisfaction with our services drove revenue twice as fast as the market's growth. We achieved the best employee retention and job satisfaction in our history, and earnings growth continued to reward shareholders with appreciation and value.?

Net sales for the three months ended March 30, 2007, were $443.0 million, an increase of 4.8%, compared with net sales of $422.7 million for the three months ended March 31, 2006. Net sales for the three months ended March 30, 2007, for the Physician Business increased by 7.7%, while net sales for the Elder Care Business decreased by 1.5%. Income from operations for the three months ended March 30, 2007, increased by 17.4% to $24.3 million compared with income from operations for the three months ended March 31, 2006, of $20.7 million. Net income for the three months ended March 30, 2007, increased by 21% to $15.6 million, or $0.23 per diluted share, compared with net income for the three months ended March 31, 2006, of $12.9 million, or $0.19 per diluted share.

Net sales for the year ended March 30, 2007, were $1.7 billion, an increase of 7.5%, compared with net sales of $1.6 billion for the year ended March 31, 2006. Net sales for the year ended March 30, 2007, for the Physician Business increased by 12.9%, while net sales for the Elder Care Business decreased by 3.5%. Income from operations for the year ended March 30, 2007, increased by 14.0% to $82.5 million compared with income from operations for the year ended March 31, 2006, of $72.4 million. Net income for the year ended March 30, 2007, was $50.5 million, or $0.73 per diluted share, compared with net income for the year ended March 31, 2006, of $44.3 million, or $0.66 per diluted share.

Results for the fiscal year 2007 included a write-down of unsold influenza vaccine inventory in the third quarter resulting from cancellation of customer orders due to an oversupply of vaccine in the market and a mild flu season. As a result, the Company recorded a $0.07 per diluted share impact, including $0.06 per diluted share due to the write-down of vaccine inventory and $0.01 per diluted share from lower-than-expected vaccine sales.

David M. Bronson, Executive Vice President and Chief Financial Officer, commented, ?In fiscal year 2007, our Elder Care business was successfully repositioned for profitable growth in regional and independent nursing homes and home health. Operating income grew by 36%, despite a revenue decline of 3.5%, validating our decision to exit the less profitable national chain business. The Physician business continued to leverage growth in revenue and improve operational efficiency, delivering 21% growth in operating income when excluding the impact from the write-down of influenza vaccine inventory. Both businesses are benefiting from traction in our global sourcing efforts. Our Select? brand of products achieved all of the growth and profitability goals we established for fiscal year 2007.?

Mr. Smith concluded, ?We have already set sail for the fiscal year 2008 goals. Our focus is on execution of a balance of growth and efficiency through services and innovation. Fiscal year 2007 achievements continued to build on our strong foundation and confidence for our future continued success.?

The Company has today filed an SEC Form 8-K including a copy of this press release and its related Fiscal Year 2007 Financial Workbook, which contains GAAP and non-GAAP financial measures and is available on the Company's website, www.pssworldmedical.com.

A listen-only simulcast as well as a 90-day online replay of PSS World Medical's fiscal year 2007 conference call can be found in the Investor Relations/Financial Information sections of the Company's websites, www.pssworldmedical.com or www.pssd.com, respectively, under the heading ?Events and Presentations,? or at www.opencompany.info, on May 24, 2007, beginning at 8:30 a.m. Eastern time.

The Company will host its annual investor day on Tuesday June 5, 2007, in Jacksonville, Florida, providing an online Web simulcast of the meeting. In addition to the live broadcast, an online replay will be available approximately an hour following the conclusion of the live broadcast. A line to these events can be found on the Company's website at www.pssworldmedical.com or www.opencompany.info.

PSS World Medical, Inc. is a national distributor of medical products to physicians and elder 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.

Additional financial information pertaining to PSS World Medical financial results may be found by visiting the Investor Relations/Financial Information sections of the Company's websites, www.pssworldmedical.com or www.pssd.com, respectively, under the heading ?Events and Presentations.? If you should need assistance accessing the information, please call Investor Relations at 904-332-3000.

All statements in this release that are not historical facts, including, but not limited to, statements regarding anticipated growth in revenue, gross and operating margins, and earnings, statements regarding the Company's current business strategy, the Company's ability to complete and integrate acquired businesses and generate acceptable rates of return, the Company's projected sources and uses of cash, and the Company's plans for future development and operations, are based upon current expectations. Specifically, forward-looking statements in this Press Release include, without limitation, the Company's expected results in GAAP EPS, revenue, operating incomes and operating margins for continuing operations for both the consolidated company and for each of its businesses in fiscal years 2007 - 2009; the expected operational cash flow in fiscal years 2007 - 2009; the ability to sustain revenue growth and expected growth rates of the marketing programs in its Physician and Elder Care Businesses; expected flu vaccine sales and profitability during fiscal year 2007, the Company's decision to not participate in the sale of flu vaccine in fiscal year 2008; expected pharmaceutical product sales in Florida and all other of the 50 U.S. states in fiscal years 2007 - 2009; expected sales growth from revenues derived from home care, hospice and assisted living customer, expected efficiency, customer acceptance and profitability derived from the Company's global product sourcing strategy, expected revenue, income and profitability derived from the Company's strategy to invest and participate in the marketing and sales of healthcare information technology products and services (HCIT), the expectation for acquired assets to meet performance, integration, revenue and profitability assumptions and targets, as well as other expectations of growth and financial and operational performance. These statements are forward-looking in nature and involve a number of risks and uncertainties. Actual results may differ materially. Among the factors that could cause results to differ materially are the following: pricing and customer credit quality pressures; the loss of any of our distributorship agreements and our reliance on relationships with our suppliers and vendors; our reliance on a limited number of chain business elder care customers; the availability of sufficient capital to finance the Company's business plans on terms satisfactory to the Company; lower revenue and earnings that may result from competition; the ability of the Company to adequately defend or reach a settlement on outstanding litigation matters and investigations involving the Company or its management; changes in labor, equipment and capital costs; changes in legislation and regulations affecting the Company's business, such as the Medicare cliffs, changes in malpractice insurance rates and tort reform; future acquisitions or strategic partnerships; 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. Many of these factors are outside the control of the Company. The Company wishes to caution readers not to place undue reliance on any such forward-looking statements, which statements are made pursuant to the Private Securities Litigation Reform Act of 1995 and, as such, speak only as of the date made. The Company also wishes to caution readers that it undertakes no duty or is under no obligation to update or revise any forward-looking statements.

PSS WORLD MEDICAL, INC.
Unaudited Condensed Consolidated Statements of Operations
(In millions, except per share and share data)
		Three Months Ended				Year Ended
		March 30,		March 31,		March 30,		March 31,
		2007		2006		2007		2006
Net sales		$443.0		$422.7		$1,741.6		$1,619.4
Cost of goods sold		310.0		298.2		1,241.6		1,152.1
Gross profit		133.0		124.5		500.0		467.3
General and administrative expenses		78.4		75.6		300.7		287.3
Selling expenses		30.3		28.2		116.8		107.6
Income from operations		24.3		20.7		82.5		72.4
Other (expense) income:
Interest expense		(1.3)		(1.5)		(5.4)		(5.9)
Interest and investment income		0.4		0.2		1.2		0.4
Other income		0.6		0.5		2.0		3.2
Other expense		(0.3)		(0.8)		(2.2)		(2.3)
Income before provision for income taxes		24.0		19.9		80.3		70.1
Provision for income taxes		8.4		7.0		29.8		25.8
Net income		$15.6		$12.9		$50.5		$44.3
Earnings per share - basic		$0.23		$0.19		$0.75		$0.67
Earnings per share - diluted		$0.23		$0.19		$0.73		$0.66
Weighted average shares (in thousands):
Basic		67,059		66,546		67,219		65,643
Diluted		69,419		68,062		69,325		66,887
PSS WORLD MEDICAL, INC.
Condensed Consolidated Balance Sheets
(In millions, except per share and share data)
						March 30,		March 31,
						2007		2006
						(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents						$46.7		$23.9
Accounts receivable, net						222.8		209.0
Inventories						174.1		173.4
Deferred tax assets, net						8.8		13.0
Prepaid expenses and other						34.4		33.8
Total current assets						486.8		453.1
Property and equipment, net						88.6		87.7
Other Assets:
Goodwill and intangibles, net						137.1		139.9
Other						62.5		56.3
Total assets						$775.0		$737.0
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable						$131.3		$139.3
Accrued expenses						37.2		34.5
Current portion of long-term debt						2.2		0.5
Other current liabilities						11.5		13.6
Total current liabilities						182.2		187.9
Long-term debt, excluding current portion						150.7		150.9
Other noncurrent liabilities						61.2		49.4
Total liabilities						394.1		388.2
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, 67,179,475 and 67,476,682 shares issued and outstanding at March 30, 2007, and March 31, 2006, respectively						0.7		0.7
Additional paid-in capital						300.0		318.4
Retained earnings						80.2		29.7
Total shareholders' equity						380.9		348.8
Total liabilities and shareholders' equity						$775.0		$737.0
PSS WORLD MEDICAL, INC.
Unaudited Condensed Consolidated Statements of Cash Flows
(In millions)
		Three Months Ended				Year Ended
		March 30,		March 31,		March 30,		March 31,
		2007		2006		2007		2006
Cash Flows From Operating Activities:
Net income		$15.6		$12.9		$50.5		$44.3
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		4.3		3.5		16.8		13.9
(Benefit) provision for deferred income taxes		(5.8)		5.9		(1.7)		24.8
Amortization of intangible assets		1.5		1.9		5.9		6.3
Provision for doubtful accounts		1.1		0.6		4.5		5.6
Noncash compensation expense		3.6		0.4		5.1		1.6
Provision for deferred compensation		0.3		0.1		2.0		0.9
Amortization of debt issuance costs		0.3		0.4		1.4		Share © Business Wire - 2007 Latest news about PSS World Medical Inc Chart PSS World Medical Inc DurationAuto.2 months3 months6 months9 months1 year2 years5 years10 yearsMax. PeriodDayWeek More charts Company Profile Sector Medical Equipment, Supplies & Distribution More about the company Sector Medical Equipment Wholesale 1st Jan change Capi. HENRY SCHEIN, INC. -6.77% 8.99B OWENS & MINOR, INC. +26.52% 1.84B SHIP HEALTHCARE HOLDINGS, INC. -10.61% 1.31B GKHT MEDICAL TECHNOLOGY CO., LTD. -20.58% 835M TOKAI CORP. -0.77% 478M EXCELSIOR MEDICAL CO., LTD. +7.01% 453M COWEALTH MEDICAL CHINA CO.,LTD. -27.08% 323M GAUSH MEDITECH LTD -55.03% 324M WIN-PARTNERS CO., LTD. -2.84% 217M Medical Equipment Wholesale Stock Market Equities Stock News PSS World Medical Inc Pss World Medical : PSS World Medical Reports Results for Fiscal Year 2007 +39.41% on our US portfolio vs. 25.67% on the S&P 500 net Total Return Replicate our performance