PSS World Medical, Inc. Announces Preliminary Results
Business Wire - July 06, 1999 09:20
JACKSONVILLE, Fla.--(BW HealthWire)--July 6, 1999--PSS World Medical, Inc. (Nasdaq/NM:PSSI) today announced preliminary results of its fiscal 1999 year ended April 2, 1999. The Company also confirmed that it will restate its historical financial statements for certain items.
PSS World Medical, Inc. will restate its historical financial statements for certain items related to the Gulf South Medical historical financial statements and related merger. The Company will restate for:
-- $1.5 million restructuring charges for employee terminations and
branch closings recorded in the quarter ended April 3, 1998,
which will be moved to the quarter ended June 30, 1998. This item
remains a restructuring item, but the timing of recognition
changes from fiscal 1998 to fiscal 1999.
-- $6.4 million of computer equipment previously considered impaired
and written off in the quarter ended April 3, 1998, will be
recapitalized and depreciated over a new life. The impact to
operating profit in fiscal 1999 ended April 2, 1999, was $5.7
million.
-- $2.3 million of professional fees recorded to conform Gulf South
Medical Supply accounting policies to those of the Company's
accounting policies recorded in the quarter ended April 3, 1998,
will be spread over historical pre-merger financial statements of
Gulf South. There is no impact on fiscal 1999 earnings for this
item.
-- Certain historical merger costs and goodwill assets recorded by
Gulf South in pre-merger historical financial statements that
will now be included in pre-merger historical financial operating
expenses. There is no impact on fiscal 1999 earnings for this
item.
In addition, as previously disclosed, the Company will restate its historical financial statements to reflect the pre-merger financial results of companies which have been historically accounted for as immaterial poolings-of-interest by the Company. The impact of this item on fiscal 1999 net income, excluding special items, is a loss of approximately $100,000.
These items will be included in the Company's 10-K expected to be filed on or before July 16, 1999.
The Company has extended the filing date of its Form 10-K to July 16, 1999. The Company will release results of its fiscal 1999 ended April 2, 1999, upon completion and filing of its Form 10-K, which will incorporate the restatements listed above. However, the Company expects the results of fiscal 1999 to include approximately $1.5 billion of revenues and earnings within a range of $0.74 to $0.76 per diluted share, excluding special items, and $0.61 to $0.63 per share including special items. Special items are related to merger and restructuring activity and the accelerated depreciation for computer equipment mentioned above. The Company does not believe there will be a material adverse effect on future earnings as a result of the SEC review.
PSS World Medical is the largest distributor of medical supplies, equipment and pharmaceuticals to office-based physicians in the United States through its Physician Sales & Service Division. Through its Gulf South Medical Supply subsidiary, the Company is one of the largest national distributors of medical supplies and related products to the long-term care industry. In addition, the Company is the largest distributor of medical diagnostic imaging supplies, chemicals, equipment, and service to the acute care and alternate-care markets through its subsidiary, Diagnostic Imaging, Inc.
This news release contains forward-looking statements and information that are subject to certain risks, trends and uncertainties covered in more detail in the Company's statements and reports filed with the Securities and Exchange Commission. These risks, trends, and uncertainties include business and economic conditions, conditions affecting the health care industry including continued challenges in customer reimbursement, the ultimate outcome of the Company's SEC review which may be different from the Company's expectations, competitive forces, the loss or adverse financial condition of large customers and the ability to integrate acquired operations successfully, that could cause results to differ materially from those projected.
CONTACT: PSS World Medical Inc., Jacksonville
David A. Smith, 904/332-3000
or
Scott King, 904/332-3076
pssd.com
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