PSS World Medical Reports Record
Results
Operational Improvements Lead to Revenue and
Profit Increases
JACKSONVILLE, Fla.--(BW HealthWire)--Oct. 26, 1999--PSS World Medical, Inc.
(Nasdaq/NM:PSSI - news) today announced results for the second quarter and six months ended
September 30, 1999. Unless otherwise noted, all financial results refer to operations before special
items.
Patrick C. Kelly, chairman and chief executive officer of PSS World Medical, Inc., said, ''Not only
are we on track to accomplish our goals this year, but we are seeing very good future trends in all of
our businesses. Our customers are weathering a difficult long-term care reimbursement environment,
which has presented opportunities for PSS World Medical to strengthen relationships through joining
forces with its customers to find an acceptable solution to these reimbursement issues. We have
strengthened the Company operationally and made significant cost reductions, including reducing
400 jobs, folding in 12 branches and consolidating three corporate offices. We have taken a $7.7
million restructuring charge, which was partially offset by a $6.5 million settlement from a key vendor
and a $1 million reversal of a previously booked merger charge.''
For the three months ended September 30, 1999, net sales increased 17% to $452.2 million
compared with $387.4 million for the same period last year. Net income for the quarter increased to
$15.4 million, or $0.22 per diluted share, on 71.1 million weighted average shares outstanding
versus $14.1 million, or $0.20 per diluted share, on 71.4 million weighted average shares
outstanding for the prior year period. Net income including special items for the quarter ended
September 30, 1999, was $14.8 million, or $0.21 per diluted share.
For the six months ended September 30, 1999, net sales increased 18% to $889.0 million
compared with $754.9 million for the same period last year. Net income for the six months increased
10% to $28.6 million, or $0.40 per diluted share, on 71.2 million weighted average shares
outstanding versus $26.0 million, or $0.36 per diluted share, on 71.4 million weighted average
shares outstanding for the prior year period. Net income including special items for the six months
ended September 30, 1999, was $27.1 million, or $0.38 per diluted share.
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