Financial Supplement
For the Third Quarter of Fiscal Year 2012 ending December 30, 2011
PSS World Medical, Inc.
As of December 30, 2011
Current Fiscal Year Unaudited Consolidated Income Statement
(in thousands, except per share data)
| 2012 | ||||||||||||
| Q1 | Q2 | Q3 | YTD | |||||||||
| Net sales | $ | 513,682 | $ | 521,756 | $ | 527,695 | $ | 1,563,133 | ||||
| Cost of goods sold | 352,925 | 354,653 | 357,199 | 1,064,776 | ||||||||
| Gross profit | 160,757 | 167,103 | 170,496 | 498,357 | ||||||||
| General & administrative expenses | 98,998 | 94,511 | 98,815 | 292,325 | ||||||||
| Selling expenses | 35,247 | 36,325 | 36,940 | 108,513 | ||||||||
| Income from operations | 26,512 | 36,266 | 34,741 | 97,519 | ||||||||
| Interest expense | (4,538) | (4,668) | (4,826) | (14,033) | ||||||||
| Interest income | 74 | 53 | 25 | 152 | ||||||||
| Other income | 532 | 437 | 593 | 1,561 | ||||||||
| Income from operations before income taxes | 22,579 | 32,088 | 30,533 | 85,199 | ||||||||
| Provision for income taxes | 8,434 | 11,962 | 10,403 | 30,799 | ||||||||
| Net income | 14,145 | 20,125 | 20,130 | 54,401 | ||||||||
| Net income attributable to noncontrolling interest | (44) | 94 | (2) | 47 | ||||||||
| Net income attributable to PSS World Medical, Inc. | $ | 14,189 | $ | 20,031 | $ | 20,133 | $ | 54,353 | ||||
Earnings per common share attributable to PSS World Medical, Inc.: | ||||||||||||
| Basic | $ | 0.26 | $ | 0.38 | $ | 0.39 | $ | 1.03 | ||||
| Diluted | $ | 0.25 | $ | 0.37 | $ | 0.38 | $ | 1.00 | ||||
| Weighted average common shares outstanding: | ||||||||||||
| WASO - Basic | 54,166 | 52,309 | 51,308 | 52,594 | ||||||||
| WASO - Diluted | 57,388 | 53,956 | 52,435 | 54,593 | ||||||||
| Net sales by segment: | ||||||||||||
| Physician Business | $ | 366,308 | $ | 376,870 | $ | 379,263 | $ | 1,122,441 | ||||
| Extended Care Business | 146,926 | 144,237 | 147,994 | 439,157 | ||||||||
| Corporate Shared Services | 448 | 648 | 438 | 1,534 | ||||||||
| $ | 513,682 | $ | 521,756 | $ | 527,695 | $ | 1,563,133 | |||||
| Selling days: | 64 | 63 | 62 | 189 | ||||||||
| Net sales per selling day: | ||||||||||||
| Physician Business | $ | 5,724 | $ | 5,982 | $ | 6,117 | $ | 5,939 | ||||
| Extended Care Business | 2,296 | 2,289 | 2,387 | 2,324 | ||||||||
| Corporate Shared Services | 7 | 10 | 7 | 8 | ||||||||
| $ | 8,026 | $ | 8,282 | $ | 8,511 | $ | 8,271 | |||||
Numbers may not foot due to rounding differences
PSS World Medical, Inc.
As of December 30, 2011
Consolidated Income Statement Trend
(in thousands, except per share data)
| Fiscal Year 2009 | Fiscal Year 2010 | Fiscal Year 2011 | |||||||||||||||||||||||||||||||||||||||||||
| Q1 | Q2 | Q3 | Q4 | Total | Q1 | Q2 | Q3 | Q4 | Total | Q1 | Q2 | Q3 | Q4 | Total | |||||||||||||||||||||||||||||||
| Net sales | $ | 472,215 | $ | 491,603 | $ | 519,145 | $ | 469,728 | $ | 1,952,691 | $ | 493,554 | $ | 561,976 | $ | 502,764 | $ | 496,877 | $ | 2,055,171 | $ | 478,856 | $ | 496,188 | $ | 510,087 | $ | 549,658 | $ | 2,034,789 | |||||||||||||||
| Cost of goods sold | 333,283 | 344,347 | 364,282 | 328,868 | 1,370,781 | 347,581 | 389,404 | 348,064 | 342,427 | 1,427,476 | 331,010 | 339,063 | 352,192 | 376,753 | 1,399,018 | ||||||||||||||||||||||||||||||
| Gross profit | 138,931 | 147,255 | 154,863 | 140,860 | 581,910 | 145,974 | 172,571 | 154,700 | 154,449 | 627,695 | 147,846 | 157,125 | 157,895 | 172,905 | 635,771 | ||||||||||||||||||||||||||||||
| General and administrative expenses | 89,634 | 90,689 | 89,426 | 82,728 | 352,478 | 91,638 | 97,208 | 89,439 | 92,586 | 370,871 | 89,986 | 87,399 | 88,860 | 98,505 | 364,749 | ||||||||||||||||||||||||||||||
| Selling expenses | 31,266 | 32,161 | 33,721 | 31,356 | 128,505 | 32,687 | 36,728 | 33,249 | 33,178 | 135,842 | 32,610 | 34,298 | 34,330 | 36,229 | 137,466 | ||||||||||||||||||||||||||||||
| Income from operations | 18,031 | 24,405 | 31,715 | 26,776 | 100,927 | 21,649 | 38,635 | 32,012 | 28,685 | 120,981 | 25,250 | 35,429 | 34,706 | 38,171 | 133,556 | ||||||||||||||||||||||||||||||
| Interest expense | (3,203 | ) | (5,300 | ) | (7,409 | ) | (6,247 | ) | (22,159 | ) | (4,261 | ) | (4,532 | ) | (4,214 | ) | (4,288 | ) | (17,295 | ) | (4,137 | ) | (4,226 | ) | (4,243 | ) | (4,515 | ) | (17,121 | ) | |||||||||||||||
| Interest income | 122 | 842 | 1,034 | 305 | 2,304 | 134 | 95 | 117 | 30 | 376 | 66 | 46 | 33 | 139 | 284 | ||||||||||||||||||||||||||||||
| Other income | 608 | 520 | 877 | 638 | 2,643 | 3,995 | 452 | 741 | 879 | 6,068 | 544 | 412 | 852 | 698 | 2,506 | ||||||||||||||||||||||||||||||
| Income from ops before income taxes | 15,559 | 20,467 | 26,218 | 21,472 | 83,716 | 21,517 | 34,650 | 28,657 | 25,306 | 110,130 | 21,723 | 31,661 | 31,348 | 34,493 | 119,225 | ||||||||||||||||||||||||||||||
| Provision for income taxes | 6,187 | 8,104 | 10,230 | 7,709 | 32,229 | 8,213 | 12,964 | 10,736 | 8,854 | 40,768 | 7,892 | 12,016 | 11,757 | 12,895 | 44,560 | ||||||||||||||||||||||||||||||
| Net income | 9,372 | 12,363 | 15,989 | 13,763 | 51,486 | 13,304 | 21,686 | 17,921 | 16,452 | 69,363 | 13,831 | 19,644 | 19,592 | 21,598 | 74,664 | ||||||||||||||||||||||||||||||
| Net income attributable to noncontrolling interest | - | - | - | - | - | - | - | - | - | - | 78 | 87 | 42 | (28 | ) | 179 | |||||||||||||||||||||||||||||
| Net income attributable PSS World Medical, Inc. | $ | 9,372 | $ | 12,363 | $ | 15,989 | $ | 13,763 | $ | 51,486 | $ | 13,304 | $ | 21,686 | $ | 17,921 | $ | 16,452 | $ | 69,363 | $ | 13,753 | $ | 19,557 | $ | 19,549 | $ | 21,626 | $ | 74,485 | |||||||||||||||
| Earnings per common share attributable to PSS World Medical, Inc.: | |||||||||||||||||||||||||||||||||||||||||||||
| Basic | $ | 0.15 | $ | 0.21 | $ | 0.27 | $ | 0.23 | $ | 0.86 | $ | 0.23 | $ | 0.37 | $ | 0.31 | $ | 0.29 | $ | 1.20 | $ | 0.25 | $ | 0.36 | $ | 0.36 | $ | 0.40 | $ | 1.36 | |||||||||||||||
| Diluted | $ | 0.15 | $ | 0.20 | $ | 0.27 | $ | 0.23 | $ | 0.85 | $ | 0.23 | $ | 0.37 | $ | 0.30 | $ | 0.28 | $ | 1.18 | $ | 0.24 | $ | 0.35 | $ | 0.35 | $ | 0.38 | $ | 1.32 | |||||||||||||||
| Weighted average common shares outstanding: | |||||||||||||||||||||||||||||||||||||||||||||
| Basic | 61,003 | 59,941 | 59,481 | 59,307 | 59,937 | 58,380 | 58,566 | 58,522 | 56,627 | 58,029 | 56,093 | 54,985 | 54,357 | 54,548 | 54,996 | ||||||||||||||||||||||||||||||
| Diluted | 61,723 | 60,921 | 60,322 | 59,801 | 60,696 | 58,859 | 59,390 | 59,390 | 58,115 | 58,943 | 57,924 | 55,887 | 55,567 | 56,789 | 56,546 | ||||||||||||||||||||||||||||||
| Net Sales by Segment: | |||||||||||||||||||||||||||||||||||||||||||||
| Physician Business | $ | 331,386 | $ | 341,761 | $ | 357,269 | $ | 326,966 | $ | 1,357,382 | $ | 342,292 | $ | 398,531 | $ | 352,961 | $ | 344,039 | $ | 1,437,823 | $ | 327,403 | $ | 343,403 | $ | 357,298 | $ | 396,908 | $ | 1,425,012 | |||||||||||||||
| Extended Care Business | 140,406 | 149,485 | 161,874 | 142,743 | 594,509 | 150,381 | 162,970 | 149,400 | 152,187 | 614,937 | 151,202 | 152,173 | 152,263 | 152,111 | 607,750 | ||||||||||||||||||||||||||||||
| Corporate Shared Services | 423 | 356 | 2 | 19 | 800 | 882 | 475 | 403 | 651 | 2,411 | 251 | 612 | 526 | 639 | 2,028 | ||||||||||||||||||||||||||||||
| $ | 472,215 | $ | 491,603 | $ | 519,145 | $ | 469,728 | $ | 1,952,691 | $ | 493,554 | $ | 561,976 | $ | 502,764 | $ | 496,877 | $ | 2,055,171 | $ | 478,856 | $ | 496,188 | $ | 510,087 | $ | 549,658 | $ | 2,034,789 | ||||||||||||||||
| Selling Days: | 64 | 63 | 66 | 60 | 253 | 64 | 68 | 61 | 65 | 258 | 64 | 63 | 61 | 65 | 253 | ||||||||||||||||||||||||||||||
| Net Sales Per Selling Day: | |||||||||||||||||||||||||||||||||||||||||||||
| Physician Business | $ | 5,178 | $ | 5,425 | $ | 5,413 | $ | 5,449 | $ | 5,365 | $ | 5,348 | $ | 5,861 | $ | 5,786 | $ | 5,293 | $ | 5,573 | $ | 5,116 | $ | 5,451 | $ | 5,857 | $ | 6,106 | $ | 5,632 | |||||||||||||||
| Extended Care Business | 2,194 | 2,373 | 2,453 | 2,379 | 2,350 | 2,350 | 2,397 | 2,449 | 2,341 | 2,383 | 2,363 | 2,415 | 2,496 | 2,340 | 2,402 | ||||||||||||||||||||||||||||||
| Corporate Shared Services | 7 | 6 | - | - | 3 | 14 | 7 | 7 | 10 | 9 | 4 | 10 | 9 | 10 | 8 | ||||||||||||||||||||||||||||||
| $ | 7,378 | $ | 7,803 | $ | 7,866 | $ | 7,829 | $ | 7,718 | $ | 7,712 | $ | 8,264 | $ | 8,242 | $ | 7,644 | $ | 7,966 | $ | 7,482 | $ | 7,876 | $ | 8,362 | $ | 8,456 | $ | 8,043 | ||||||||||||||||
Numbers may not foot due to rounding differences
PSS World Medical, Inc.
As of December 30, 2011
Store Brands* - Net Sales
(in thousands)
| Fiscal Year | |||||||||||||||||
| 2012 | 2011 | ||||||||||||||||
| Q1 | Q2 | Q3 | YTD | Q1 | Q2 | Q3 | Q4 | YTD | |||||||||
| Consolidated Store Brand Sales | $87,734 | $90,703 | $ 92,043 | $270,480 | $80,555 | $82,152 | $84,551 | $86,978 | $334,237 | ||||||||
| Fiscal Year | |||||||||||||||||
| 2007 | 2008 | 2009 | 2010 | 2011 | |||||||||||||
| Consolidated Store Brand Sales | $185,844 | $234,810 | $281,536 | $323,602 | $334,237 | ||||||||||||
| * | Store brands (collectively known as “store brand” or “store brands”) are comprised of the Company’s Select Medical Products and other specialty brand products and services. |
Numbers may not foot due to rounding differences
PSS World Medical, Inc.
As of December 30, 2011
Unaudited Segment Information
(in thousands)
| Three Months Ended | Nine Months Ended | |||||||||||||||
| December 30, | December 31, | December 30, | December 31, | |||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
| NET SALES: | ||||||||||||||||
| Physician Business | $ | 379,263 | $ | 357,298 | $ | 1,122,441 | $ | 1,028,104 | ||||||||
| Extended Care Business | 147,994 | 152,263 | 439,157 | 455,639 | ||||||||||||
| Corporate Shared Services | 438 | 526 | 1,534 | 1,389 | ||||||||||||
| Total net sales | $ | 527,695 | $ | 510,087 | $ | 1,563,133 | $ | 1,485,132 | ||||||||
| SELLING DAYS: | 62 | 61 | 189 | 188 | ||||||||||||
| NET SALES PER SELLING DAY: | ||||||||||||||||
| Physician Business | $ | 6,117 | $ | 5,857 | $ | 5,939 | $ | 5,469 | ||||||||
| Extended Care Business | 2,387 | 2,496 | 2,324 | 2,424 | ||||||||||||
| Corporate Shared Services | 7 | 9 | 8 | 7 | ||||||||||||
| Total net sales per selling day | $ | 8,511 | $ | 8,362 | $ | 8,271 | $ | 7,900 | ||||||||
| INCOME FROM OPERATIONS: | ||||||||||||||||
| Physician Business | $ | 38,375 | $ | 34,908 | $ | 107,556 | $ | 99,661 | ||||||||
| Extended Care Business | 7,372 | 10,311 | 21,990 | 26,999 | ||||||||||||
| Corporate Shared Services | (11,007 | ) | (10,514 | ) | (32,027 | ) | (31,276 | ) | ||||||||
| Total income from operations | $ | 34,741 | $ | 34,706 | $ | 97,519 | $ | 95,385 | ||||||||
| DEPRECIATION: | ||||||||||||||||
| Physician Business | $ | 2,821 | $ | 2,360 | $ | 8,227 | $ | 6,821 | ||||||||
| Extended Care Business | 1,304 | 1,256 | 3,896 | 3,724 | ||||||||||||
| Corporate Shared Services | 2,620 | 2,644 | 7,705 | 7,757 | ||||||||||||
| Total depreciation | $ | 6,744 | $ | 6,260 | $ | 19,828 | $ | 18,301 | ||||||||
| AMORTIZATION OF INTANGIBLE | ||||||||||||||||
| AND OTHER ASSETS: | ||||||||||||||||
| Physician Business | $ | 1,449 | $ | 765 | $ | 4,126 | $ | 1,876 | ||||||||
| Extended Care Business | 620 | 644 | 1,812 | 2,161 | ||||||||||||
| Corporate Shared Services | 175 | 175 | 523 | 491 | ||||||||||||
| Total amortization of intangible and other assets | $ | 2,244 | $ | 1,584 | $ | 6,461 | $ | 4,528 | ||||||||
| PROVISION FOR DOUBTFUL ACCOUNTS: | ||||||||||||||||
| Physician Business | $ | 918 | $ | 776 | $ | 1,643 | $ | 1,654 | ||||||||
| Extended Care Business | 60 | 158 | (11 | ) | 94 | |||||||||||
| Total provision for doubtful accounts | $ | 978 | $ | 934 | $ | 1,633 | $ | 1,748 | ||||||||
| INTEREST EXPENSE: | ||||||||||||||||
| Total interest expense | $ | 4,826 | $ | 4,243 | $ | 14,033 | $ | 12,606 | ||||||||
| INTEREST INCOME: | ||||||||||||||||
| Physician Business | $ | 3 | $ | - | $ | 13 | $ | - | ||||||||
| Extended Care Business | 12 | 12 | 101 | 63 | ||||||||||||
| Corporate Shared Services | 11 | 21 | 39 | 82 | ||||||||||||
| Total interest and investment income | $ | 25 | $ | 33 | $ | 152 | $ | 145 | ||||||||
| PROVISION (BENEFIT) FOR INCOME TAXES: | ||||||||||||||||
| Physician Business | $ | 12,735 | $ | 12,667 | $ | 37,804 | $ | 36,343 | ||||||||
| Extended Care Business | 1,766 | 3,120 | 5,770 | 7,900 | ||||||||||||
| Corporate Shared Services | (4,099 | ) | (4,030 | ) | (12,776 | ) | (12,578 | ) | ||||||||
| Total provision for income taxes | $ | 10,403 | $ | 11,757 | $ | 30,799 | $ | 31,665 | ||||||||
Numbers may not foot due to rounding differences
PSS World Medical, Inc.
As of December 30, 2011
Current Fiscal Year Unaudited Consolidated Balance Sheets
(in thousands)
| As of | ||||||||
| July 1, | September 30, | December 30, | ||||||
| ASSETS | 2011 | 2011 | 2011 | |||||
| Cash | $ | 22,291 | $ | 34,848 | $ | 32,438 | ||
| Accounts receivable, net | 236,967 | 244,615 | 249,597 | |||||
| Inventory, net | 222,660 | 229,400 | 260,368 | |||||
| Deferred tax assets | 19,668 | 11,374 | 15,221 | |||||
| Other current assets | 40,269 | 39,228 | 43,765 | |||||
| Total current assets | 541,854 | 559,465 | 601,389 | |||||
| Property and equipment, net | 100,620 | 100,225 | 101,687 | |||||
| Goodwill | 167,386 | 173,958 | 188,905 | |||||
| Intangibles, net | 40,012 | 40,330 | 45,967 | |||||
| Other long-term assets | 96,829 | 90,803 | 101,500 | |||||
| Total assets | $ | 946,700 | $ | 964,780 | $ | 1,039,447 | ||
| LIABILITIES & EQUITY | ||||||||
| Accounts payable | $ | 145,495 | $ | 151,478 | $ | 160,505 | ||
| Accrued expenses | 41,556 | 41,787 | 45,250 | |||||
| Current portion of long term debt | 574 | 380 | 192 | |||||
Revolving line of credit(a) | 20,500 | 50,000 | - | |||||
| Other current liabilities | 20,761 | 22,418 | 17,978 | |||||
| Total current liabilities | 228,886 | 266,063 | 223,925 | |||||
Revolving line of credit and long-term debt, excluding current portion(a) | 197,904 | 200,185 | 318,882 | |||||
| Other non-current liabilities | 113,407 | 93,478 | 103,821 | |||||
| Total liabilities | 540,196 | 559,727 | 646,629 | |||||
| Total PSS World Medical, Inc. shareholders' equity | 402,948 | 401,403 | 389,171 | |||||
| Noncontrolling interest | 3,556 | 3,650 | 3,647 | |||||
| Total equity | 406,504 | 405,053 | 392,819 | |||||
| Total liabilities and equity | $ | 946,700 | $ | 964,780 | $ | 1,039,447 | ||
Numbers may not foot due to rounding differences
PSS World Medical, Inc.
As of December 30, 2011
Consolidated Balance Sheets Trend
(in thousands)
| Fiscal Year 2009 | Fiscal Year 2010 | Fiscal Year 2011 | ||||||||||||
| ASSETS | Jun-08 | Sep-08 | Dec-08 | Mar-09 | Jun-09 | Sep-09 | Dec-09 | Mar-10 | Jun-10 | Sep-10 | Dec-10 | Mar-11 | ||
| Cash | $ 29,840 | $ 226,055 | $ 214,709 | $ 82,031 | $ 129,631 | $ 130,089 | $ 114,056 | $ 52,751 | $ 59,081 | $ 22,949 | $ 36,912 | $ 29,348 | ||
| Investment in available for sale securities | - | - | - | 10,592 | - | - | - | - | - | - | - | - | ||
| Accounts receivable, net | 227,661 | 240,806 | 232,894 | 230,361 | 230,391 | 257,968 | 233,602 | 227,888 | 222,544 | 232,014 | 239,082 | 247,229 | ||
| Inventory, net | 192,707 | 199,337 | 239,940 | 207,593 | 196,160 | 212,813 | 230,725 | 218,911 | 217,500 | 220,846 | 240,211 | 213,211 | ||
| Deferred tax assets | 6,805 | - | - | 8,059 | 8,250 | 5,602 | 11,986 | 15,629 | 15,101 | 19,514 | 17,789 | 20,533 | ||
| Other current assets | 26,157 | 22,163 | 23,229 | 23,819 | 24,385 | 30,854 | 33,980 | 26,485 | 27,753 | 40,979 | 32,693 | 34,285 | ||
| Total current assets | 483,170 | 688,361 | 710,772 | 562,456 | 588,817 | 637,326 | 624,349 | 541,664 | 541,979 | 536,301 | 566,687 | 544,606 | ||
| Property and equipment, net | 92,803 | 96,849 | 97,113 | 101,205 | 103,552 | 105,499 | 106,956 | 105,220 | 103,737 | 101,269 | 101,958 | 102,401 | ||
| Goodwill | 112,320 | 112,392 | 112,717 | 112,768 | 114,255 | 115,280 | 120,828 | 121,772 | 124,281 | 128,745 | 131,364 | 167,094 | ||
| Intangibles, net | 25,738 | 24,345 | 23,102 | 22,958 | 22,442 | 21,604 | 25,289 | 24,548 | 25,242 | 26,440 | 30,657 | 41,879 | ||
| Investment in available for sale securities | 14,231 | 16,725 | 15,333 | - | - | - | - | - | - | - | - | - | ||
| Other long-term assets | 67,598 | 83,055 | 70,549 | 59,238 | 65,065 | 73,819 | 77,748 | 78,862 | 77,488 | 84,933 | 91,881 | 95,693 | ||
| Total assets | $ 795,860 | $ 1,021,726 | $ 1,029,587 | $ 858,624 | $ 894,131 | $ 953,528 | $ 955,170 | $ 872,066 | $ 872,727 | $ 877,688 | $ 922,547 | $ 951,672 | ||
| Fiscal Year 2009 | Fiscal Year 2010 | Fiscal Year 2011 | ||||||||||||
| LIABILITIES & EQUITY | Jun-08 | Sep-08 | Dec-08 | Mar-09 | Jun-09 | Sep-09 | Dec-09 | Mar-10 | Jun-10 | Sep-10 | Dec-10 | Mar-11 | ||
| Accounts payable | $ 128,656 | $ 149,674 | $ 155,133 | $ 127,300 | $ 133,781 | $ 156,966 | $ 137,676 | $ 123,970 | $ 125,155 | $ 137,431 | $ 149,698 | $ 128,057 | ||
| Accrued expenses | 38,055 | 50,816 | 43,170 | 52,718 | 46,196 | 43,248 | 48,051 | 50,253 | 37,830 | 33,804 | 40,075 | 37,175 | ||
| Current portion of long-term debt | 196,116 | 198,022 | 199,606 | 50,937 | 50,953 | 50,970 | 56,321 | 881 | 1,190 | 1,297 | 1,133 | 761 | ||
| Deferred tax liabilities, current | - | 6,619 | 4,492 | - | - | - | - | - | - | - | - | - | ||
| Other current liabilities | 8,102 | 8,723 | 9,160 | 7,956 | 12,882 | 13,653 | 13,122 | 10,954 | 25,576 | 26,574 | 24,346 | 33,211 | ||
| Total current liabilities | 370,928 | 413,855 | 411,560 | 238,910 | 243,812 | 264,837 | 255,169 | 186,058 | 189,751 | 199,107 | 215,252 | 199,204 | ||
| Long-term debt | 706 | 177,650 | 179,395 | 180,965 | 182,654 | 184,530 | 186,153 | 187,941 | 189,746 | 191,667 | 193,645 | 195,662 | ||
| Other long-term liabilities | 68,975 | 64,763 | 56,503 | 60,719 | 70,323 | 79,896 | 86,674 | 90,053 | 77,748 | 86,420 | 92,940 | 110,281 | ||
| Total liabilities | 440,610 | 656,268 | 647,459 | 480,594 | 496,789 | 529,263 | 527,996 | 464,052 | 457,245 | 477,193 | 501,837 | 505,146 | ||
| Total PSS World Medical, Inc. shareholders' equity | 355,250 | 365,458 | 382,127 | 378,030 | 397,342 | 424,265 | 427,174 | 408,014 | 412,344 | 397,270 | 417,082 | 442,926 | ||
| Noncontrolling interest | - | - | - | - | - | - | - | - | 3,138 | 3,225 | 3,628 | 3,600 | ||
| Total equity | 355,250 | 365,458 | 382,127 | 378,030 | 397,342 | 424,265 | 427,174 | 408,014 | 415,482 | 400,495 | 420,710 | 446,526 | ||
| Total liabilities & equity | $ 795,860 | $ 1,021,726 | $ 1,029,587 | $ 858,624 | $ 894,131 | $ 953,528 | $ 955,170 | $ 872,066 | $ 872,727 | $ 877,688 | $ 922,547 | $ 951,672 | ||
Numbers may not foot due to rounding differences
PSS World Medical, Inc.
As of December 30, 2011
Current Fiscal Year Unaudited Operating Highlights
(in millions)
| Three Months Ended | Nine Months Ended | |||||||||||||||
| December 30, | December 31, | December 30, | December 31, | |||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
| Net sales: | ||||||||||||||||
| Physician Business | $ | 379.3 | $ | 357.3 | $ | 1,122.4 | $ | 1,028.1 | ||||||||
| Extended Care Business | 148.0 | 152.3 | 439.2 | 455.6 | ||||||||||||
| Corporate Shared Services | 0.4 | 0.5 | 1.5 | 1.4 | ||||||||||||
| Total net sales | $ | 527.7 | $ | 510.1 | $ | 1,563.1 | $ | 1,485.1 | ||||||||
| Income from operations: | ||||||||||||||||
| Physician Business | $ | 38.4 | $ | 34.9 | $ | 107.6 | $ | 99.7 | ||||||||
| Extended Care Business | 7.4 | 10.3 | 22.0 | 27.0 | ||||||||||||
| Corporate Shared Services | (11.0 | ) | (10.5 | ) | (32.0 | ) | (31.3 | ) | ||||||||
| Total income from operations | $ | 34.7 | $ | 34.7 | $ | 97.5 | $ | 95.4 | ||||||||
EBITDA(b) | $ | 44.3 | $ | 43.4 | $ | 125.4 | $ | 120.0 | ||||||||
| Income from operations, as a percentage of net sales | 6.6 | % | 6.8 | % | 6.2 | % | 6.4 | % | ||||||||
Consolidated Return on Committed Capital ("ROCC")(c) | 35.3 | % | 35.7 | % | 33.1 | % | 33.3 | % | ||||||||
| Selling Days | 62 | 61 | 189 | 188 | ||||||||||||
| Net Sales Per Selling Day (in thousands): | ||||||||||||||||
| Physician Business | $ | 6,117 | $ | 5,857 | $ | 5,939 | $ | 5,469 | ||||||||
| Extended Care Business | 2,387 | 2,496 | 2,324 | 2,424 | ||||||||||||
| Corporate Shared Services | 7 | 9 | 8 | 7 | ||||||||||||
| Total Net Sales Per Selling Day | $ | 8,511 | $ | 8,362 | $ | 8,271 | $ | 7,900 | ||||||||
| Net Sales Per Selling Day Growth Rate: | ||||||||||||||||
| Physician Business | 4.4 | % | 8.6 | % | ||||||||||||
| Extended Care Business | (4.4 | %) | (4.1 | %) | ||||||||||||
| Total Net Sales Per Selling Day Growth Rate | 1.8 | % | 4.7 | % | ||||||||||||
| Annualized | ||||||||||||||||
| December 30, | December 31, | |||||||||||||||
| 2011 | 2010 | |||||||||||||||
DSO(d) | ||||||||||||||||
| Physician Business | 39.6 | 39.1 | ||||||||||||||
| Extended Care Business | 46.2 | 48.2 | ||||||||||||||
DOH(e) | ||||||||||||||||
| Physician Business | 54.9 | 58.3 | ||||||||||||||
| Extended Care Business | 66.8 | 62.5 | ||||||||||||||
DIP(f) | ||||||||||||||||
| Physician Business | 37.9 | 39.3 | ||||||||||||||
| Extended Care Business | 23.8 | 22.8 | ||||||||||||||
Cash Conversion Days(g) | ||||||||||||||||
| Physician Business | 56.6 | 58.1 | ||||||||||||||
| Extended Care Business | 89.1 | 87.8 | ||||||||||||||
| As of | ||||||||||||||||
| December 30, | December 31, | |||||||||||||||
| 2011 | 2010 | |||||||||||||||
Operational working capital(h) | $ | 349.5 | $ | 329.6 | ||||||||||||
| Net debt: | ||||||||||||||||
| Convertible senior notes | $ | 202.5 | $ | 193.4 | ||||||||||||
| Bank debt | 116.3 | 0.3 | ||||||||||||||
| Other debt | 0.3 | 1.1 | ||||||||||||||
| Less: Cash and cash equivalents | (32.4 | ) | (36.9 | ) | ||||||||||||
| Net debt | $ | 286.7 | $ | 157.9 | ||||||||||||
Numbers may not foot due to rounding differences
PSS World Medical, Inc.
December 30, 2011
Non-GAAP Reconciliations
(in millions)
| Consolidated net sales impact from Physician Dispensing Acquisitions | |||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||
| December 30, | December 31, | Percent | December 30, | December 31, | Percent | ||||||||||
| 2011 | 2010 | Change | 2011 | 2010 | Change | ||||||||||
| Consolidated Net Sales | $ | 527.7 | $ | 510.1 | 3.5% | $ | 1,563.1 | $ | 1,485.1 | 5.3% | |||||
| Less: Net Sales from Physician Dispensing | 21.6 | 9.7 | 60.7 | 9.7 | |||||||||||
| Net Sales less the impact of Physician Dispensing | $ | 506.1 | $ | 500.4 | 1.1% | $ | 1,502.5 | $ | 1,475.4 | 1.8% | |||||
| Physician Business net sales impact from Physician Dispensing Acquisitions | |||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||
| December 30, | December 31, | Percent | December 30, | December 31, | Percent | ||||||||||
| 2011 | 2010 | Change | 2011 | 2010 | Change | ||||||||||
| Physician Business Net Sales | $ | 379.3 | $ | 357.3 | 6.1% | $ | 1,122.4 | $ | 1,028.1 | 9.2% | |||||
| Less: Net Sales from Physician Dispensing | 21.6 | 9.7 | 60.7 | 9.7 | |||||||||||
| Net Sales less the impact of Physician Dispensing | $ | 357.7 | $ | 347.6 | 2.9% | $ | 1,061.8 | $ | 1,018.4 | 4.3% | |||||
Numbers may not foot due to rounding differences
PSS World Medical, Inc.
December 30, 2011
Non-GAAP Reconciliations
(in millions)
| Sequential Same Day Sales Growth | ||||||||||||||
| For the Three Months Ended | ||||||||||||||
| December 30, 2011 | September 30, 2011 | Average Daily Net | ||||||||||||
| Net Sales | Average Daily Net Sales | Net Sales | Average Daily Net Sales | Sales Percentage Change | ||||||||||
| Physician Business | $ | 379.3 | $ | 6.1 | $ | 376.9 | $ | 6.0 | 2.3% | |||||
| Extended Care Business | 148.0 | 2.4 | 144.2 | 2.3 | 4.3% | |||||||||
| Corporate Shared Services | 0.4 | - | 0.6 | - | 0.0% | |||||||||
| Consolidated | $ | 527.7 | $ | 8.5 | $ | 521.8 | $ | 8.3 | 2.8% | |||||
| Physician Business Selected Average Daily Net Sales Data | ||||||||||||||
| For the Three Months Ended | ||||||||||||||
| December 30, 2011 | December 31, 2010 | |||||||||||||
| Average Daily Net Sales | Average Daily Net Sales | Percent Change | ||||||||||||
| Disposables* | $ | 2.5 | $ | 2.4 | 1.9% | |||||||||
| Lab diagnostics* | 1.4 | 1.4 | -2.5% | |||||||||||
| Pharmaceuticals | 1.3 | 1.3 | 2.3% | |||||||||||
| Other categories | 0.9 | 0.7 | ||||||||||||
| Total Physician Business | $ | 6.1 | $ | 5.9 | 4.4% | |||||||||
| * Includes branded and store brand product lines. | ||||||||||||||
| Extended Care Selected Average Daily Net Sales Data | ||||||||||||||
| For the Three Months Ended | ||||||||||||||
| December 30, 2011 | December 31, 2010 | |||||||||||||
| Average Daily Net Sales | Average Daily Net Sales | Percent Change | ||||||||||||
| Nursing home and assisted living facilities | $ | 1.5 | $ | 1.5 | -0.6% | |||||||||
| Home health | 0.3 | 0.4 | -8.6% | |||||||||||
| Hospice | 0.2 | 0.2 | 1.2% | |||||||||||
| Other categories | 0.4 | 0.4 | ||||||||||||
| Total Extended Care | $ | 2.4 | $ | 2.5 | -4.4% | |||||||||
Numbers may not foot due to rounding differences
PSS World Medical, Inc.
As of December 30, 2011
Selling Days Calendar FY11-FY13
| FY2011 | FY2012 | FY2013 | |||||||
| Closing | Selling | Closing | Selling | Closing | Selling | ||||
| Date | Days | Date | Days | Date | Days | Notes | |||
| 30-Apr | 20 | 29-Apr | 20 | 27-Apr | 20 | A | |||
| 28-May | 20 | 27-May | 20 | 25-May | 20 | A | |||
| 2-Jul | 24 | 1-Jul | 24 | 29-Jun | 24 | B | |||
| Q1 | 64 | 64 | 64 | ||||||
| 30-Jul | 19 | 29-Jul | 19 | 27-Jul | 19 | A | |||
| 27-Aug | 20 | 26-Aug | 20 | 31-Aug | 25 | A | |||
| 1-Oct | 24 | 30-Sep | 24 | 28-Sep | 19 | B | |||
| Q2 | 63 | 63 | 63 | ||||||
| 29-Oct | 20 | 28-Oct | 20 | 26-Oct | 20 | A | |||
| 26-Nov | 18 | 25-Nov | 18 | 30-Nov | 23 | A | |||
| 31-Dec | 23 | 30-Dec | 24 | 28-Dec | 19 | B | |||
| Q3 | 61 | 62 | 62 | ||||||
| 28-Jan | 20 | 27-Jan | 19 | 25-Jan | 19 | A | |||
| 25-Feb | 20 | 24-Feb | 20 | 22-Feb | 20 | A | |||
| 1-Apr | 25 | 30-Mar | 25 | 29-Mar | 25 | B | |||
| Q4 | 65 | 64 | 64 | ||||||
| Total | 253 | 253 | 253 | ||||||
| A | Closing date is the last Friday of the month for non-quarter end months. | ||||||||
| B | Closing date is the Friday closest to month end, based on business days, for quarter end months. | ||||||||
Numbers may not foot due to rounding differences
PSS World Medical, Inc.
December 30, 2011
EBITDA Calculation
Current Fiscal Year - Unaudited
(in thousands)
| 2012 | ||||||||||||||||
| Q1 | Q2 | Q3 | YTD | |||||||||||||
| Net Income | $ | 14,145 | $ | 20,125 | $ | 20,130 | $ | 54,401 | ||||||||
| Plus: | ||||||||||||||||
| Interest expense | 4,538 | 4,668 | 4,826 | 14,033 | ||||||||||||
| Provision for income taxes | 8,434 | 11,962 | 10,403 | 30,799 | ||||||||||||
| Depreciation | 6,443 | 6,641 | 6,744 | 19,828 | ||||||||||||
| Amortization of intangible assets | 2,109 | 2,108 | 2,244 | 6,461 | ||||||||||||
| Less: | ||||||||||||||||
| Interest income | (74 | ) | (53 | ) | (25 | ) | (152 | ) | ||||||||
| EBITDA | $ | 35,595 | $ | 45,452 | $ | 44,322 | $ | 125,369 | ||||||||
Numbers may not foot due to rounding differences
PSS World Medical, Inc.
December 30, 2011
EBITDA Calculation
(in thousands)
| Fiscal Year 2009 | Fiscal Year 2010 | Fiscal Year 2011 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Q1 | Q2 | Q3 | Q4 | Total | Q1 | Q2 | Q3 | Q4 | Total | Q1 | Q2 | Q3 | Q4 | Total | ||||||||||||||||||||||||||||||||||||||||||||||
| Net income | $ | 9,372 | $ | 12,363 | $ | 15,989 | $ | 13,763 | $ | 51,486 | $ | 13,304 | $ | 21,686 | $ | 17,921 | $ | 16,452 | $ | 69,363 | $ | 13,831 | $ | 19,644 | $ | 19,592 | $ | 21,598 | $ | 74,664 | ||||||||||||||||||||||||||||||
| Plus: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest expense | 3,203 | 5,300 | 7,409 | 6,247 | 22,159 | 4,261 | 4,532 | 4,214 | 4,288 | 17,295 | 4,137 | 4,226 | 4,243 | 4,515 | �� | 17,121 | ||||||||||||||||||||||||||||||||||||||||||||
| Provision for income taxes | 6,187 | 8,104 | 10,230 | 7,709 | 32,229 | 8,213 | 12,964 | 10,736 | 8,854 | 40,768 | 7,892 | 12,016 | 11,757 | 12,895 | 44,560 | |||||||||||||||||||||||||||||||||||||||||||||
| Depreciation | 4,830 | 4,912 | 5,116 | 5,144 | 20,002 | 5,245 | 5,256 | 5,558 | 5,881 | 21,940 | 5,942 | 6,100 | 6,260 | 6,763 | 25,065 | |||||||||||||||||||||||||||||||||||||||||||||
| Amortization of intangible assets | 1,344 | 1,553 | 1,264 | 1,328 | 5,489 | 1,252 | 1,190 | 1,235 | 1,444 | 5,121 | 1,444 | 1,501 | 1,584 | 1,850 | 6,378 | |||||||||||||||||||||||||||||||||||||||||||||
| Less: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest and investment income | (122 | ) | (842 | ) | (1,034 | ) | (305 | ) | (2,304 | ) | (134 | ) | (95 | ) | (117 | ) | (30 | ) | (376 | ) | (66 | ) | (46 | ) | (33 | ) | (139 | ) | (284 | ) | ||||||||||||||||||||||||||||||
| EBITDA | $ | 24,813 | $ | 31,390 | $ | 38,973 | $ | 33,886 | $ | 129,062 | $ | 32,140 | $ | 45,533 | $ | 39,547 | $ | 36,890 | $ | 154,110 | $ | 33,179 | $ | 43,441 | $ | 43,402 | $ | 47,483 | $ | 167,504 | ||||||||||||||||||||||||||||||
Numbers may not foot due to rounding differences
PSS World Medical, Inc.
As of December 30, 2011
Consolidated Return on Committed Capital (ROCC)
Current Fiscal Year - Unaudited
(in thousands)
| 2012 | ||||||||||||
| Q1 | Q2 | Q3 | ||||||||||
| Consolidated Return on Committed Capital: | ||||||||||||
Quarterly Average Committed Capital (i) | $ | 400,211 | $ | 401,138 | $ | 425,533 | ||||||
| Committed Capital - Current Quarter | 395,794 | 406,482 | 444,583 | |||||||||
| Committed Capital - Previous Quarter | 404,628 | 395,794 | 406,482 | |||||||||
Return on Committed Capital - Quarterly (j) | 29.1 | % | 38.7 | % | 35.3 | % | ||||||
| Return: | ||||||||||||
| Net income | 14,145 | 20,125 | 20,130 | |||||||||
| Add: | ||||||||||||
| Provision for income taxes | 8,434 | 11,962 | 10,403 | |||||||||
| Interest expense | 4,538 | 4,668 | 4,826 | |||||||||
| Amortization | 2,109 | 2,108 | 2,244 | |||||||||
| Interest and investment income | (74 | ) | (53 | ) | (25 | ) | ||||||
| $ | 29,152 | $ | 38,811 | $ | 37,578 | |||||||
| Committed Capital: | ||||||||||||
| Total assets | $ | 946,700 | $ | 964,780 | $ | 1,039,447 | ||||||
| Less assets excluded: | ||||||||||||
| Cash | (22,291 | ) | (34,848 | ) | (32,438 | ) | ||||||
| Goodwill and intangibles, net | (207,397 | ) | (214,288 | ) | (234,872 | ) | ||||||
| Total liabilities | (540,196 | ) | (559,727 | ) | (646,629 | ) | ||||||
| Plus liabilities excluded: | ||||||||||||
| Current debt | 21,074 | 50,380 | 192 | |||||||||
| Long-term debt | 197,904 | 200,185 | 318,882 | |||||||||
| $ | 395,794 | $ | 406,482 | $ | 444,583 | |||||||
Numbers may not foot due to rounding differences
PSS World Medical, Inc.
As of December 30, 2011
Consolidated Return on Committed Capital (ROCC) Trend
(in thousands)
| Fiscal Year 2009 | Fiscal Year 2010 | Fiscal Year 2011 | |||||||||||||||||
| Q1 | Q2 | Q3 | Q4 | Total | Q1 | Q2 | Q3 | Q4 | Total | Q1 | Q2 | Q3 | Q4 | Total | |||||
| Consolidated Return on Committed Capital: | |||||||||||||||||||
Quarterly Average Committed Capital(i) | $ 390,439 | $ 381,257 | $ 394,469 | $ 401,387 | $ 378,397 | $ 378,706 | $ 401,134 | $ 403,620 | $ 397,789 | $ 406,570 | $ 415,941 | $ 410,592 | |||||||
Annual Average Committed Capital(k) | $ 394,438 | $ 394,969 | $ 401,196 | ||||||||||||||||
| Committed Capital - Current Quarter | 384,175 | 378,339 | 410,600 | 392,174 | 364,619 | 392,792 | 409,475 | 397,765 | 397,814 | 415,325 | 416,556 | 404,628 | 404,628 | ||||||
| Committed Capital - Previous Quarter | 396,702 | 384,175 | 378,339 | 410,600 | 392,174 | 364,619 | 392,792 | 409,475 | 397,765 | 397,814 | 415,325 | 416,556 | 416,556 | ||||||
| Committed Capital - Current Year End | 392,174 | 397,765 | 397,765 | ||||||||||||||||
| Committed Capital - Previous Year End | 396,702 | 392,174 | 397,765 | ||||||||||||||||
Return on Committed Capital - Quarterly(j) | 20.5% | 27.8% | 34.3% | 28.6% | 28.4% | 42.5% | 33.9% | 30.7% | 27.4% | 36.7% | 35.7% | 39.7% | |||||||
| Return on Committed Capital - Annual | 27.6% | 33.5% | 35.5% | ||||||||||||||||
| Return: | |||||||||||||||||||
| Net Income | $ 9,372 | $ 12,363 | $ 15,989 | $ 13,763 | $ 51,486 | $ 13,304 | $ 21,686 | $ 17,921 | $ 16,452 | $ 69,363 | $ 13,831 | $ 19,644 | $ 19,592 | $ 21,598 | $ 74,664 | ||||
| Add: | |||||||||||||||||||
| Provision for income taxes | 6,187 | 8,104 | 10,230 | 7,709 | 32,229 | 8,213 | 12,964 | 10,736 | 8,854 | 40,768 | 7,892 | 12,016 | 11,757 | 12,895 | 44,560 | ||||
| Interest expense | 3,203 | 5,300 | 7,409 | 6,247 | 22,159 | 4,261 | 4,532 | 4,214 | 4,288 | 17,295 | 4,137 | 4,226 | 4,243 | 4,515 | 17,121 | ||||
| Amortization | 1,344 | 1,553 | 1,264 | 1,328 | 5,489 | 1,252 | 1,190 | 1,235 | 1,444 | 5,121 | 1,444 | 1,501 | 1,584 | 1,850 | 6,378 | ||||
| Interest and investment income | (122) | (842) | (1,034) | (305) | (2,304) | (134) | (95) | (117) | (30) | (376) | (66) | (46) | (33) | (139) | (284) | ||||
| $ 19,983 | $ 26,478 | $ 33,856 | $ 28,742 | $ 109,059 | $ 26,895 | $ 40,277 | $ 33,989 | $ 31,009 | $ 132,170 | $ 27,238 | $ 37,341 | $ 37,141 | $ 40,719 | $ 142,440 | |||||
| Committed Capital: | |||||||||||||||||||
| Total assets | $ 795,860 | $ 1,021,726 | $ 1,029,586 | $ 858,624 | $ 858,624 | $ 894,131 | $ 953,528 | $ 955,170 | $ 872,065 | $ 872,065 | $ 872,727 | $ 877,688 | $ 922,547 | $ 951,672 | $ 951,672 | ||||
| Less assets excluded: | |||||||||||||||||||
| Cash | (29,840) | (226,055) | (214,709) | (82,031) | (82,031) | (129,631) | (130,089) | (114,056) | (52,751) | (52,751) | (59,081) | (22,949) | (36,912) | (29,348) | (29,348) | ||||
| Goodwill and intangibles, net | (138,058) | (136,736) | (135,820) | (135,726) | (135,726) | (136,696) | (136,884) | (146,117) | (146,320) | (146,320) | (149,523) | (155,185) | (162,020) | (208,973) | (208,973) | ||||
| Total liabilities | (440,610) | (656,268) | (647,459) | (480,594) | (480,594) | (496,792) | (529,263) | (527,996) | (464,052) | (464,052) | (457,246) | (477,193) | (501,837) | (505,146) | (505,146) | ||||
| Plus liabilities excluded: | |||||||||||||||||||
| Current debt | 196,116 | 198,022 | 199,606 | 50,937 | 50,937 | 50,953 | 50,970 | 56,321 | 881 | 881 | 1,190 | 1,297 | 1,133 | 761 | 761 | ||||
| Long-term debt | 706 | 177,650 | 179,395 | 180,965 | 180,965 | 182,654 | 184,530 | 186,153 | 187,941 | 187,941 | 189,746 | 191,667 | 193,645 | 195,662 | 195,662 | ||||
| $ 384,175 | $ 378,339 | $ 410,600 | $ 392,174 | $ 392,174 | $ 364,619 | $ 392,792 | $ 409,475 | $ 397,765 | $ 397,765 | $ 397,814 | $ 415,325 | $ 416,556 | $ 404,628 | $ 404,628 | |||||
Numbers may not foot due to rounding differences
PSS World Medical, Inc.
Footnotes
| (a) | During the nine months ended December 30, 2011, the Company amended the credit agreement governing its revolving line of credit. Based on the amended terms, the Company classified outstanding borrowings within long-term liabilities as of December 30, 2011. Outstanding borrowings prior to the amendment were recorded within current liabilities on the Consolidated Balance Sheets. |
| (b) | EBITDA represents net income plus provision for income taxes, interest expense, depreciation, and amortization of intangible assets, less interest and investment income. Management reviews EBITDA when evaluating and comparing the performance of each operating segment on a quarterly basis. Management believes EBITDA is an important measure of liquidity. |
| (c) | ROCC equals return divided by average committed capital. Return is annualized for quarterly and year to date calculations. Management reviews ROCC when evaluating and comparing the performance of each operating segment on a quarterly basis. Management believes ROCC is an important measure of profitability and return. |
| (d) | DSO is average accounts receivable divided by average daily net sales. Average accounts receivable is the sum of accounts receivable, net of the allowance for doubtful accounts, at the beginning and end of the most recent four quarters divided by five. Average daily net sales are net sales for the most recent four quarters divided by 360. |
| (e) | DOH is average inventory divided by average daily cost of goods sold (“COGS”). Average inventory is the sum of inventory at the beginning and end of the most recent four quarters divided by five. Average daily COGS is quarterly COGS for the most recent four quarters divided by 360. |
| (f) | DIP is average accounts payable divided by average daily COGS. Average accounts payable is the sum of accounts payable at the beginning and end of the most recent four quarters divided by five. |
| (g) | Cash Conversion Days is the sum of DSO and DOH less DIP. |
| (h) | Operational working capital equals accounts receivable, net, plus inventory minus accounts payable. |
| (i) | Quarterly Average Committed Capital equals the sum of the committed capital of the most recent two quarters, divided by two. |
| (j) | Return on Committed Capital equals Return divided by Committed Capital. Quarterly calculations are annualized. |
| (k) | Annual Average Committed Capital equals the sum of the committed capital of the most recent two year ends, divided by two. |