Financial Supplement
For the First Quarter of Fiscal Year 2013 ending June 29, 2012
PSS World Medical, Inc.
As of June 29, 2012
Current Fiscal Year Unaudited Consolidated Income Statement
(in thousands, except per share data)
| 2013 | ||||
| Q1 | ||||
| Net sales | $ | 409,389 | ||
| Cost of goods sold | 273,101 | |||
| Gross profit | 136,288 | |||
| General and administrative expenses | 79,680 | |||
| Selling expenses | 35,353 | |||
| Income from operations | 21,255 | |||
| Interest expense | (8,504 | ) | ||
| Interest income | 14 | |||
| Other income | 479 | |||
| Income from continuing operations before income taxes | 13,244 | |||
| Provision for income taxes | 4,398 | |||
| Income from continuing operations | 8,846 | |||
| Income from discontinued operations, net | 1,883 | |||
| Net income | 10,729 | |||
| Net loss attributable to noncontrolling interest | (15 | ) | ||
| Net income attributable to PSS World Medical, Inc. | $ | 10,744 | ||
| Earnings per common share - Basic: | ||||
| Continuing operations | $ | 0.18 | ||
| Discontinued operations | 0.04 | |||
| Attributable to PSS World Medical, Inc. | $ | 0.22 | ||
| Earnings per common share - Diluted: | ||||
| Continuing operations | $ | 0.18 | ||
| Discontinued operations | 0.04 | |||
| Attributable to PSS World Medical, Inc. | $ | 0.21 | ||
| Weighted average common shares outstanding: | ||||
| Basic | 49,495 | |||
| Diluted | 50,263 | |||
| Net sales by segment: | ||||
| Physician (including Laboratory) | $ | 359,664 | ||
| Dispensing | 22,525 | |||
| Home Care & Hospice | 26,852 | |||
| Shared Services | 347 | |||
| $ | 409,389 | |||
| Selling days: | 64 | |||
| Net sales per selling day: | ||||
| Physician (including Laboratory) | $ | 5,620 | ||
| Dispensing | 352 | |||
| Home Care & Hospice | 420 | |||
| Shared Services | 5 | |||
| $ | 6,397 | |||
Numbers may not foot due to rounding differences
1
PSS World Medical, Inc.
As of June 29, 2012
Consolidated Income Statement Trend
(in thousands, except per share data)
| 2012 | 2011 | |||||||||||||||||||||||
| Q1 | Q2 | Q3 | Q4 | Total | Total | |||||||||||||||||||
| Net sales | $ | 380,491 | $ | 391,710 | $ | 394,203 | $ | 404,912 | $ | 1,571,316 | $ | 1,483,954 | ||||||||||||
| Cost of goods sold | 257,817 | 261,784 | 263,122 | 267,936 | 1,050,658 | 1,006,588 | ||||||||||||||||||
| Gross profit | 122,674 | 129,926 | 131,081 | 136,976 | 520,658 | 477,366 | ||||||||||||||||||
| General and administrative expenses | 71,947 | 67,663 | 70,436 | 71,413 | 281,459 | 257,124 | ||||||||||||||||||
| Selling expenses | 30,761 | 32,219 | 32,707 | 34,938 | 130,625 | 119,705 | ||||||||||||||||||
| Income from operations | 19,966 | 30,044 | 27,938 | 30,625 | 108,574 | 100,537 | ||||||||||||||||||
| Interest expense | (4,470 | ) | (4,611 | ) | (4,784 | ) | (6,075 | ) | (19,940 | ) | (16,900 | ) | ||||||||||||
| Interest income | 26 | 17 | 15 | 14 | 73 | 117 | ||||||||||||||||||
| Other income | 533 | 437 | 596 | 518 | 2,083 | 2,510 | ||||||||||||||||||
| Income from continuing operations before income taxes | 16,055 | 25,887 | 23,765 | 25,082 | 90,790 | 86,264 | ||||||||||||||||||
| Provision for income taxes | 5,899 | 9,539 | �� | 7,943 | 8,109 | 31,491 | 31,759 | |||||||||||||||||
| Income from continuing operations | 10,156 | 16,348 | 15,822 | 16,973 | 59,299 | 54,505 | ||||||||||||||||||
| Income from discontinued operations, net | 4,005 | 3,767 | 4,344 | 3,067 | 15,183 | 20,051 | ||||||||||||||||||
| Net income | 14,161 | 20,115 | 20,166 | 20,040 | 74,482 | 74,556 | ||||||||||||||||||
| Net (loss) income attributable to noncontrolling interest | (28 | ) | 84 | 34 | 74 | 163 | 71 | |||||||||||||||||
| Net income attributable to PSS World Medical, Inc. | $ | 14,189 | $ | 20,031 | $ | 20,132 | $ | 19,966 | $ | 74,319 | $ | 74,485 | ||||||||||||
| Earnings per common share - Basic: | ||||||||||||||||||||||||
| Continuing operations | $ | 0.19 | $ | 0.31 | $ | 0.31 | $ | 0.34 | $ | 1.14 | $ | 0.99 | ||||||||||||
| Discontinued operations | 0.07 | 0.07 | 0.08 | 0.06 | 0.29 | 0.36 | ||||||||||||||||||
| Attributable to PSS World Medical, Inc. | $ | 0.26 | $ | 0.38 | $ | 0.39 | $ | 0.40 | $ | 1.43 | $ | 1.35 | ||||||||||||
| Earnings per common share - Diluted: | ||||||||||||||||||||||||
| Continuing operations | $ | 0.18 | $ | 0.30 | $ | 0.30 | $ | 0.33 | $ | 1.10 | $ | 0.96 | ||||||||||||
| Discontinued operations | 0.07 | 0.07 | 0.08 | 0.06 | 0.28 | 0.35 | ||||||||||||||||||
| Attributable to PSS World Medical, Inc. | $ | 0.25 | $ | 0.37 | $ | 0.38 | $ | 0.38 | $ | 1.38 | $ | 1.32 | ||||||||||||
| Weighted average common shares outstanding: | ||||||||||||||||||||||||
| Basic | 54,166 | 52,309 | 51,308 | 50,208 | 51,998 | 54,996 | ||||||||||||||||||
| Diluted | 57,388 | 53,956 | 52,435 | 52,178 | 53,989 | 56,546 | ||||||||||||||||||
| Net sales by segment: | ||||||||||||||||||||||||
| Physician (including Laboratory) | $ | 335,157 | $ | 345,864 | $ | 345,296 | $ | 355,537 | $ | 1,381,854 | $ | 1,343,524 | ||||||||||||
| Dispensing | 19,614 | 19,612 | 22,695 | 22,407 | 84,328 | 36,899 | ||||||||||||||||||
| Home Care & Hospice | 25,272 | 25,585 | 25,773 | 26,607 | 103,238 | 101,503 | ||||||||||||||||||
| Shared Services | 448 | 648 | 438 | 362 | 1,896 | 2,028 | ||||||||||||||||||
| $ | 380,491 | $ | 391,710 | $ | 394,203 | $ | 404,912 | $ | 1,571,316 | $ | 1,483,954 | |||||||||||||
| Selling days: | 64 | 63 | 62 | 64 | 253 | 253 | ||||||||||||||||||
| Net sales per selling day: | ||||||||||||||||||||||||
| Physician (including Laboratory) | $ | 5,237 | $ | 5,490 | $ | 5,569 | $ | 5,555 | $ | 5,462 | $ | 5,310 | ||||||||||||
| Dispensing | 306 | 311 | 366 | 350 | 333 | 146 | ||||||||||||||||||
| Home Care & Hospice | 395 | 406 | 416 | 416 | 408 | 401 | ||||||||||||||||||
| Shared Services | 7 | 10 | 7 | 6 | 7 | 8 | ||||||||||||||||||
| $ | 5,945 | $ | 6,218 | $ | 6,358 | $ | 6,327 | $ | 6,211 | $ | 5,865 | |||||||||||||
Numbers may not foot due to rounding differences
2
PSS World Medical, Inc.
As of June 29, 2012
Store Brands* - Net Sales from Continuing Operations
(in thousands)
| Fiscal Year | ||||||||||||||||||||||||
| 2013 | 2012 | |||||||||||||||||||||||
| Q1 | Q1 | Q2 | Q3 | Q4 | Total | |||||||||||||||||||
| Consolidated Store Brand Sales from continuing operations | $ | 66,383 | $ | 60,056 | $ | 63,086 | $ | 63,131 | $ | 66,675 | $ | 252,948 | ||||||||||||
| * | 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
3
PSS World Medical, Inc.
As of June 29, 2012
Unaudited Segment Information from Continuing Operations
(in thousands)
| Three Months Ended | ||||||||
| June 29, | July 01, | |||||||
| 2012 | 2011 | |||||||
| NET SALES: | ||||||||
| Physician (including Laboratory) | $ | 359,664 | $ | 335,157 | ||||
| Dispensing | 22,525 | 19,614 | ||||||
| Home Care & Hospice | 26,852 | 25,272 | ||||||
| Shared Services | 347 | 448 | ||||||
| Total net sales | $ | 409,389 | $ | 380,491 | ||||
| SELLING DAYS: | 64 | 64 | ||||||
| NET SALES PER SELLING DAY: | ||||||||
| Physician (including Laboratory) | $ | 5,620 | $ | 5,237 | ||||
| Dispensing | 352 | 306 | ||||||
| Home Care & Hospice | 420 | 395 | ||||||
| Shared Services | 5 | 7 | ||||||
| Total net sales per selling day | $ | 6,397 | $ | 5,945 | ||||
| INCOME FROM OPERATIONS: | ||||||||
| Physician (including Laboratory) | $ | 27,795 | $ | 27,707 | ||||
| Dispensing | 1,445 | 732 | ||||||
| Home Care & Hospice | 2,187 | 2,549 | ||||||
| Shared Services | (10,171 | ) | (11,022 | ) | ||||
| Total income from operations | $ | 21,255 | $ | 19,966 | ||||
| DEPRECIATION: | ||||||||
| Physician (including Laboratory) | $ | 2,339 | $ | 2,254 | ||||
| Dispensing | 438 | 375 | ||||||
| Home Care & Hospice | 3 | 3 | ||||||
| Shared Services | 2,692 | 2,488 | ||||||
| Total depreciation | $ | 5,472 | $ | 5,120 | ||||
| AMORTIZATION OF INTANGIBLE | ||||||||
| AND OTHER ASSETS: | ||||||||
| Physician (including Laboratory) | $ | 843 | $ | 509 | ||||
| Dispensing | 1,037 | 684 | ||||||
| Home Care & Hospice | 211 | 250 | ||||||
| Shared Services | 89 | 174 | ||||||
| Total amortization of intangible and other assets | $ | 2,180 | $ | 1,616 | ||||
| PROVISION FOR DOUBTFUL ACCOUNTS: | ||||||||
| Physician (including Laboratory) | $ | 322 | $ | 200 | ||||
| Dispensing | 16 | 33 | ||||||
| Home Care & Hospice | 60 | 46 | ||||||
| Total provision for doubtful accounts | $ | 398 | $ | 279 | ||||
| INTEREST EXPENSE: | ||||||||
| Total interest expense | $ | (8,504 | ) | $ | (4,470 | ) | ||
| INTEREST INCOME: | ||||||||
| Physician (including Laboratory) | $ | - | $ | 6 | ||||
| Home Care & Hospice | 2 | 3 | ||||||
| Shared Services | 11 | 17 | ||||||
| Total interest and investment income | $ | 14 | $ | 26 | ||||
| PROVISION FOR INCOME TAXES: | ||||||||
| Total provision for income taxes | $ | 4,398 | $ | 5,899 | ||||
Numbers may not foot due to rounding differences
4
PSS World Medical, Inc.
As of June 29, 2012
Current Fiscal Year Unaudited Consolidated Balance Sheets
(in thousands)
| As of | ||||
| June 29, | ||||
| ASSETS | 2012 | |||
| Cash | $ | 107,414 | ||
| Accounts receivable, net | 192,042 | |||
| Inventory, net | 174,434 | |||
| Deferred tax assets | 15,719 | |||
| Other current assets | 36,322 | |||
| Assets held for sale | 280,029 | |||
| Total current assets | 805,960 | |||
| Property and equipment, net | 83,413 | |||
| Goodwill | 142,809 | |||
| Intangibles, net | 51,460 | |||
| Other long-term assets | 110,708 | |||
| Total assets | $ | 1,194,350 | ||
| LIABILITIES & EQUITY | ||||
| Accounts payable | $ | 136,086 | ||
| Accrued expenses | 45,095 | |||
| Other current liabilities | 14,005 | |||
| Liabilities held for sale | 32,875 | |||
| Total current liabilities | 228,061 | |||
| Revolving line of credit and long-term debt, excluding current portion | 457,356 | |||
| Other noncurrent liabilities | 113,367 | |||
| Total liabilities | 798,784 | |||
| Total PSS World Medical, Inc. shareholders' equity | 392,095 | |||
| Noncontrolling interest | 3,471 | |||
| Total equity | 395,566 | |||
| Total liabilities and equity | $ | 1,194,350 | ||
Numbers may not foot due to rounding differences
5
PSS World Medical, Inc.
As of June 29, 2012
Consolidated Balance Sheets Trend
(in thousands)
| As of | As of | |||||||||||||||||||
| July 1, | September 30, | December 30, | March 30, | April 1, | ||||||||||||||||
| ASSETS | 2011 | 2011 | 2011 | 2012 | 2011 | |||||||||||||||
| Cash | $ | 22,291 | $ | 34,848 | $ | 32,438 | $ | 163,152 | $ | 29,348 | ||||||||||
| Accounts receivable, net | 170,383 | 182,712 | 182,327 | 189,542 | 179,547 | |||||||||||||||
| Inventory, net | 158,254 | 160,587 | 185,058 | 147,198 | 150,590 | |||||||||||||||
| Deferred tax assets | 19,668 | 11,374 | 15,221 | 16,962 | 20,533 | |||||||||||||||
| Other current assets | 30,776 | 31,921 | 34,391 | 27,224 | 24,761 | |||||||||||||||
| Assets held for sale | 255,556 | 252,244 | 283,379 | 277,378 | 255,727 | |||||||||||||||
| Total current assets | 656,928 | 673,686 | 732,814 | 821,456 | 660,506 | |||||||||||||||
| Property and equipment, net | 80,360 | 80,200 | 80,474 | 80,151 | 81,843 | |||||||||||||||
| Goodwill | 85,892 | 92,464 | 98,143 | 109,457 | 85,601 | |||||||||||||||
| Intangibles, net | 28,344 | 29,193 | 28,080 | 33,546 | 29,662 | |||||||||||||||
| Other long-term assets | 95,176 | 89,237 | 99,936 | 111,360 | 94,060 | |||||||||||||||
| Total assets | $ | 946,700 | $ | 964,780 | $ | 1,039,447 | $ | 1,155,970 | $ | 951,672 | ||||||||||
| LIABILITIES & EQUITY | ||||||||||||||||||||
| Accounts payable | $ | 118,755 | $ | 123,873 | $ | 133,093 | $ | 118,719 | $ | 107,166 | ||||||||||
| Accrued expenses | 36,448 | 36,505 | 39,150 | 37,436 | 32,691 | |||||||||||||||
| Current portion of long term debt | 551 | 363 | 182 | - | 729 | |||||||||||||||
Revolving line of credit(a) | 20,500 | 50,000 | - | - | - | |||||||||||||||
| Other current liabilities | 17,219 | 19,170 | 13,972 | 8,015 | 28,713 | |||||||||||||||
| Liabilities held for sale | 36,429 | 37,193 | 38,887 | 37,640 | 30,886 | |||||||||||||||
| Total current liabilities | 229,902 | 267,104 | 225,284 | 201,810 | 200,185 | |||||||||||||||
Revolving line of credit and long-term debt, excluding current portion(a) | 197,902 | 200,185 | 318,776 | 454,916 | 195,656 | |||||||||||||||
| Other noncurrent liabilities | 112,392 | 92,438 | 102,569 | 108,433 | 109,305 | |||||||||||||||
| Total liabilities | 540,196 | 559,727 | 646,629 | 765,159 | 505,146 | |||||||||||||||
| Total PSS World Medical, Inc. shareholders' equity | 402,948 | 401,403 | 389,170 | 387,128 | 442,926 | |||||||||||||||
| Noncontrolling interest | 3,556 | 3,650 | 3,648 | 3,683 | 3,600 | |||||||||||||||
| Total equity | 406,504 | 405,053 | 392,818 | 390,811 | 446,526 | |||||||||||||||
| Total liabilities and equity | $ | 946,700 | $ | 964,780 | $ | 1,039,447 | $ | 1,155,970 | $ | 951,672 | ||||||||||
Numbers may not foot due to rounding differences
6
PSS World Medical, Inc.
As of June 29, 2012
Current Fiscal Year Unaudited Operating Highlights from Continuing Operations
(in millions)
| Three Months Ended | ||||||||
| June 29, | July 1, | |||||||
| 2012 | 2011 | |||||||
| Net sales: | ||||||||
| Physician (including Laboratory) | $ | 359.7 | $ | 335.2 | ||||
| Dispensing | 22.5 | 19.6 | ||||||
| Home Care & Hospice | 26.9 | 25.3 | ||||||
| Shared Services | 0.3 | 0.4 | ||||||
| Total net sales | $ | 409.4 | $ | 380.5 | ||||
| Income from operations: | ||||||||
| Physician (including Laboratory) | $ | 27.8 | $ | 27.7 | ||||
| Dispensing | 1.4 | 0.7 | ||||||
| Home Care & Hospice | 2.2 | 2.5 | ||||||
| Shared Services | (10.2 | ) | (11.0 | ) | ||||
| Total income from operations | $ | 21.3 | $ | 20.0 | ||||
EBITDA(b) | $ | 29.4 | $ | 27.2 | ||||
| Income from operations, as a percentage of net sales | 5.2 | % | 5.2 | % | ||||
Consolidated Return on Committed Capital ("ROCC")(c) | 31.7 | % | 34.1 | % | ||||
| Selling Days | 64 | 64 | ||||||
| Net Sales Per Selling Day (in thousands): | ||||||||
| Physician (including Laboratory) | $ | 5,620 | $ | 5,237 | ||||
| Dispensing | 352 | 306 | ||||||
| Home Care & Hospice | 420 | 395 | ||||||
| Shared Services | 5 | 7 | ||||||
| Total Net Sales Per Selling Day | $ | 6,397 | $ | 5,945 | ||||
| Net Sales Per Selling Day Growth Rate: | ||||||||
| Physician (including Laboratory) | 7.3 | % | ||||||
| Dispensing | 14.8 | % | ||||||
| Home Care & Hospice | 6.3 | % | ||||||
| Total Net Sales Per Selling Day Growth Rate | 7.6 | % | ||||||
Numbers may not foot due to rounding differences
7
PSS World Medical, Inc.
As of June 29, 2012
Current Fiscal Year Unaudited Operating Highlights from Continuing Operations
(in millions)
| Annualized | |||||||||
| June 29, | March 30, | ||||||||
| 2012 | 2012 | ||||||||
DSO(d) | |||||||||
| Physician (including Laboratory) | 39.7 | 40.1 | |||||||
| Dispensing | 66.7 | 65.5 | |||||||
| Home Care & Hospice | 39.6 | 39.3 | |||||||
DOH(e) | |||||||||
| Physician (including Laboratory) | 55.4 | 54.8 | |||||||
| Dispensing | 36.4 | 34.9 | |||||||
| Home Care & Hospice | 70.7 | 71.9 | |||||||
DIP(f) | |||||||||
| Physician (including Laboratory) | 38.6 | 37.9 | |||||||
| Dispensing | 21.7 | 26.6 | |||||||
| Home Care & Hospice | 27.3 | 27.6 | |||||||
Cash Conversion Days(g) | |||||||||
| Physician (including Laboratory) | 56.5 | 57.0 | |||||||
| Dispensing | 81.4 | 73.8 | |||||||
| Home Care & Hospice | 83.0 | 83.6 | |||||||
| As of | |||||||||
| June 29, | March 30, | ||||||||
| 2012 | 2012 | ||||||||
Operational working capital(h) | $ | 230.4 | $ | 218.0 | |||||
| Net debt: | |||||||||
| Revolving line of credit | $ | - | $ | - | |||||
| Senior notes | 250.0 | 250.0 | |||||||
| Convertible senior notes | 207.4 | 204.9 | |||||||
| Less: Cash and cash equivalents | (107.4) | (163.2) | |||||||
| Net debt | $ | 350.0 | $ | 291.7 | |||||
Numbers may not foot due to rounding differences
8
PSS World Medical, Inc.
June 29, 2012
Non-GAAP Reconciliations
(in millions)
| Net Sales from Continuing Operations Excluding Acquisitions | |||||||||
| Three Months Ended | |||||||||
| June 29, | July 01, | Percent | |||||||
| 2012 | 2011 | Change | |||||||
| Net Sales from Continuing Operations | $ | 409.4 | $ | 380.5 | 7.6% | ||||
Less: Impact of Acquisitions (i) | |||||||||
| 2013 Acquisitions | 11.2 | - | |||||||
| Net Sales from Continuing Operations Adjusted for Acquisitions | $ | 398.2 | $ | 380.5 | 4.6% | ||||
| Net Sales from Physician (including Laboratory) Excluding Acquisitions | |||||||||
| Three Months Ended | |||||||||
| June 29, | July 01, | Percent | |||||||
| 2012 | 2011 | Change | |||||||
| Net Sales from Physician (including Laboratory) | $ | 359.7 | $ | 335.2 | 7.3% | ||||
Less: Impact of Acquisitions (i) | |||||||||
| 2013 Acquisitions | 9.0 | - | |||||||
| Net Sales from Physician (including Laboratory) Adjusted for Acquisitions | $ | 350.7 | $ | 335.2 | 4.6% | ||||
| Selling And General & Administrative Expenses from Continuing Operations Excluding Acquisitions | |||||||||
| Three Months Ended | |||||||||
| June 29, | July 01, | Percent | |||||||
| 2012 | 2011 | Change | |||||||
| Selling and General & Administrative Expenses from Continuing Operations | $ | 115.0 | $ | 102.7 | 12.0% | ||||
Less: Impact of Acquisitions (i) | |||||||||
| 2013 Acquisitions | 2.9 | - | |||||||
| Selling and General & Administrative Expenses from Continuing Operations Adjusted for Acquisitions | $ | 112.1 | $ | 102.7 | 9.2% | ||||
Numbers may not foot due to rounding differences
9
PSS World Medical, Inc.
As of June 29, 2012
Selling Days Calendar FY12-FY14
| FY2012 | FY2013 | FY2014 | |||||||
| Closing | Selling | Closing | Selling | Closing | Selling | ||||
| Date | Days | Date | Days | Date | Days | Notes | |||
| 29-Apr | 20 | 27-Apr | 20 | 26-Apr | 20 | A | |||
| 27-May | 20 | 25-May | 20 | 31-May | 24 | A | |||
| 1-Jul | 24 | 29-Jun | 24 | 28-Jun | 20 | B | |||
| 64 | 64 | 64 | |||||||
| 29-Jul | 19 | 27-Jul | 19 | 26-Jul | 19 | A | |||
| 26-Aug | 20 | 31-Aug | 25 | 30-Aug | 25 | A | |||
| 30-Sep | 24 | 28-Sep | 19 | 27-Sep | 19 | B | |||
| 63 | 63 | 63 | |||||||
| 28-Oct | 20 | 26-Oct | 20 | 25-Oct | 20 | A | |||
| 25-Nov | 18 | 30-Nov | 23 | 29-Nov | 23 | A | |||
| 30-Dec | 24 | 28-Dec | 19 | 27-Dec | 19 | B | |||
| 62 | 62 | 62 | |||||||
| 27-Jan | 19 | 25-Jan | 19 | 31-Jan | 24 | A | |||
| 24-Feb | 20 | 22-Feb | 20 | 28-Feb | 20 | A | |||
| 30-Mar | 25 | 29-Mar | 25 | 28-Mar | 20 | B | |||
| 64 | 64 | 64 | |||||||
| 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
10
PSS World Medical, Inc.
June 29, 2012
EBITDA Calculation from Continuing Operations
Current Fiscal Year - Unaudited
(in thousands)
| 2013 | ||||
| Q1 | ||||
| Income from continuing operations | $ | 8,846 | ||
| Plus: | ||||
| Interest expense | 8,504 | |||
| Provision for income taxes | 4,398 | |||
| Depreciation | 5,472 | |||
| Amortization of intangible assets | 2,180 | |||
| Less: | ||||
| Interest income | (14 | ) | ||
| EBITDA | $ | 29,387 | ||
Numbers may not foot due to rounding differences
11
PSS World Medical, Inc.
June 29, 2012
EBITDA Calculation from Continuing Operations
Trend - Unaudited
(in thousands)
| 2012 | 2011 | |||||||||||||||||||||||
| Q1 | Q2 | Q3 | Q4 | Total | Total | |||||||||||||||||||
| Income from continuing operations | $ | 10,156 | $ | 16,348 | $ | 15,822 | $ | 16,973 | $ | 59,299 | $ | 54,505 | ||||||||||||
| Plus: | ||||||||||||||||||||||||
| Interest expense | 4,470 | 4,611 | 4,784 | 6,075 | 19,940 | 16,900 | ||||||||||||||||||
| Provision for income taxes | 5,899 | 9,540 | 7,943 | 8,109 | 31,491 | 31,758 | ||||||||||||||||||
| Depreciation | 5,120 | 5,324 | 5,418 | 5,552 | 21,413 | 19,927 | ||||||||||||||||||
| Amortization of intangible assets | 1,616 | 1,618 | 1,732 | 1,907 | 6,873 | 4,181 | ||||||||||||||||||
| Less: | ||||||||||||||||||||||||
| Interest and investment income | (26 | ) | (17 | ) | (15 | ) | (14 | ) | (73 | ) | (117 | ) | ||||||||||||
| EBITDA | $ | 27,235 | $ | 37,422 | $ | 35,684 | $ | 38,602 | $ | 138,943 | $ | 127,155 | ||||||||||||
Numbers may not foot due to rounding differences
12
PSS World Medical, Inc.
As of June 29, 2012
Consolidated Return on Committed Capital (ROCC) from Continuing Operations
Current Fiscal Year - Unaudited
(in thousands)
| 2013 | ||||
| Consolidated Return on Committed Capital: | ||||
Quarterly Average Committed Capital (k) | $ | 301,959 | ||
| Committed Capital - Current Quarter | 304,084 | |||
| Committed Capital - Previous Quarter | 299,834 | |||
Return on Committed Capital - Quarterly (l) | 31.7 | % | ||
| Return: | ||||
| Income from continuing operations | 8,846 | |||
| Add: | ||||
| Provision for income taxes | 4,398 | |||
| Interest expense | 8,504 | |||
| Amortization | 2,180 | |||
| Interest and investment income | (14 | ) | ||
| $ | 23,915 | |||
| Committed Capital: | ||||
| Total assets | $ | 1,194,350 | ||
| Less assets held for sale | 280,029 | |||
| Total assets from continuing operations | 914,321 | |||
| Less assets excluded: | ||||
| Cash | (107,414 | ) | ||
| Goodwill and intangibles, net | (194,269 | ) | ||
| Total liabilities | (798,784 | ) | ||
| Less liabilities held for sale | (32,875 | ) | ||
| Total liabilities from continuing operations | (765,909 | ) | ||
| Plus liabilities excluded: | ||||
| Current debt | - | |||
| Long-term debt | 457,356 | |||
| $ | 304,084 | |||
Numbers may not foot due to rounding differences
13
PSS World Medical, Inc.
As of June 29, 2012
Consolidated ROCC from Continuing Operations
Trend - Unaudited
(in thousands)
| 2012 | 2011 | |||||||||||||||||||||||
| Q1 | Q2 | Q3 | Q4 | Total | Total | |||||||||||||||||||
| Consolidated Return on Committed Capital: | ||||||||||||||||||||||||
Quarterly Average Committed Capital (k) | $ | 259,357 | $ | 276,924 | $ | 296,334 | $ | 304,228 | ||||||||||||||||
Annual Average Committed Capital (m) | $ | 274,371 | $ | 265,530 | ||||||||||||||||||||
| Committed Capital - Current Quarter | 269,805 | 284,044 | 308,623 | 299,834 | 299,834 | 248,909 | ||||||||||||||||||
| Committed Capital - Previous Quarter | 248,909 | 269,805 | 284,044 | 308,623 | 308,623 | 274,526 | ||||||||||||||||||
| Committed Capital - Current Q4 End | 299,834 | 248,909 | ||||||||||||||||||||||
| Committed Capital - Previous Year End | 248,909 | 282,152 | ||||||||||||||||||||||
Return on Committed Capital - Quarterly (l) | 34.1 | % | 46.4 | % | 40.9 | % | 43.5 | % | ||||||||||||||||
| Return on Committed Capital - Annual | 42.8 | % | 40.4 | % | ||||||||||||||||||||
| Return: | ||||||||||||||||||||||||
| Income from continuing operations | 10,156 | 16,348 | 15,822 | 16,973 | 59,299 | 54,505 | ||||||||||||||||||
| �� | ||||||||||||||||||||||||
| Add: | ||||||||||||||||||||||||
| Provision for income taxes | 5,899 | 9,540 | 7,943 | 8,109 | 31,491 | 31,758 | ||||||||||||||||||
| Interest expense | 4,470 | 4,611 | 4,784 | 6,075 | 19,940 | 16,900 | ||||||||||||||||||
| Amortization | 1,616 | 1,618 | 1,732 | 1,907 | 6,873 | 4,181 | ||||||||||||||||||
| Interest and investment income | (26 | ) | (17 | ) | (15 | ) | (14 | ) | (73 | ) | (117 | ) | ||||||||||||
| $ | 22,115 | $ | 32,099 | $ | 30,266 | $ | 33,050 | $ | 117,530 | $ | 107,227 | |||||||||||||
| Committed Capital: | ||||||||||||||||||||||||
| Total assets | $ | 946,700 | $ | 964,780 | $ | 1,039,447 | $ | 1,155,970 | $ | 1,155,970 | $ | 671,395 | ||||||||||||
| Less assets held for sale | 255,556 | 252,244 | 283,379 | 277,378 | 277,378 | - | ||||||||||||||||||
| Total assets from continuing operations | 691,144 | 712,536 | 756,068 | 878,592 | 878,592 | 671,395 | ||||||||||||||||||
| Less assets excluded: | ||||||||||||||||||||||||
| Cash | (22,291 | ) | (34,848 | ) | (32,438 | ) | (163,152 | ) | (163,152 | ) | (29,348 | ) | ||||||||||||
| Goodwill and intangibles, net | (114,235 | ) | (121,657 | ) | (126,223 | ) | (143,003 | ) | (143,003 | ) | (115,263 | ) | ||||||||||||
| Total liabilities | (540,196 | ) | (559,727 | ) | (646,629 | ) | (765,159 | ) | (765,159 | ) | (474,260 | ) | ||||||||||||
| Less liabilities held for sale | (36,429 | ) | (37,193 | ) | (38,887 | ) | (37,640 | ) | (37,640 | ) | - | |||||||||||||
| Total liabilities from continuing operations | (503,767 | ) | (522,534 | ) | (607,742 | ) | (727,519 | ) | (727,519 | ) | (474,260 | ) | ||||||||||||
| Plus liabilities excluded: | ||||||||||||||||||||||||
| Current debt | 21,051 | 50,363 | 182 | - | - | 729 | ||||||||||||||||||
| Long-term debt | 197,902 | 200,185 | 318,776 | 454,916 | 454,916 | 195,656 | ||||||||||||||||||
| $ | 269,805 | $ | 284,044 | $ | 308,623 | $ | 299,834 | $ | 299,834 | $ | 248,909 | |||||||||||||
Numbers may not foot due to rounding differences
14
PSS World Medical, Inc.
Footnotes
| (a) | During the fiscal year ended March 30, 2012, 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 March 30, 2012. Outstanding borrowings prior to the amendment were recorded within current liabilities on the Consolidated Balance Sheets. |
| (b) | EBITDA represents income from continuing operations 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. (Note: Home Care & Hospice DSO as of March 30, 2012 is calculated using the beginning and ending balances of the most recent three quarters divided by four.) 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. (Note: Home Care & Hospice DOH as of March 30, 2012 is calculated using the beginning and ending balances of the most recent three quarters divided by four.) 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. (Note: Home Care & Hospice DIP as of March 30, 2012 is calculated using the beginning and ending balances of the most recent three quarters divided by four.) |
| (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) | Impact of Acquisitions represents net sales or selling and general & administrative expenses from the acquisition date through the end of the most recent quarter, including fold-in acquisitions through the time of integration with core operations. Effective Q1 of fiscal year 2013, this measure is calculated by deducting amounts for current fiscal year acquisitions only. |
| (j) | Non-recurring costs include accrued retention, professional fees, severance and other expenses directly related to the transformation and divestiture processes. |
| (k) | Quarterly Average Committed Capital equals the sum of the committed capital of the most recent two quarters, divided by two. |
| (l) | Return on Committed Capital equals Return divided by Committed Capital. Quarterly calculations are annualized. |
| (m) | Annual Average Committed Capital equals the sum of the committed capital of the most recent two year ends, divided by two. |
15