PSS World Medical Inc. (PSSI, Financial) filed Quarterly Report for the period ended 2009-06-26.
PSS World Medical Inc. is a specialty marketer and distributor of medical products to physicians alternate-site imaging centers long-term care providers home care providers and hospitals. They have become a leader in three of the market segments it serves with a focused market specific approach to customer service a consultative sales force strategic acquisitions strong arrangements with product manufacturers innovative systems and a unique culture of performance. PSS World Medical Inc. has a market cap of $1.2 billion; its shares were traded at around $20.29 with a P/E ratio of 19.9 and P/S ratio of 0.6. PSS World Medical Inc. had an annual average earning growth of 18.3% over the past 5 years.
In April 2009, the Company sold its remaining investment in athenahealth, Inc. (athena), a leading provider of internet-based healthcare information technology and business services to physician practices, for $10.7 million, resulting in a gain of $3.6 million located in Other income, net on the Unaudited Condensed Consolidated Statements of Operations, or $2.3 million net of tax. See Footnote 2, Equity Investment, for additional information.
gloves and hand sanitizer, related to the swine flu pandemic. This resulted in an increase of approximately $9.0 million in net sales, with approximately $7.2 million of the increase relating to the sale of branded lab diagnostics and $0.6 million related to the sale of Select disposables. In addition to the effect of the swine flu, Select product sales increased during the three months ended June 26, 2009 due to the Companys continued focus on promoting its globally-sourced Select products, which resulted in new customer sales as well as customer conversions from other manufacturers branded products to Select brand products. The Physician Business introduced a program to add new customers during the quarter which resulted in approximately 5,000 new customers. The Company expects this program to have a positive impact on future periods. Equipment sales decreased due to the current economic conditions including a decrease in discretionary spending and procedures and tight credit policies which negatively impacted customers ability to obtain equipment financing.
General and administrative expenses decreased $2.3 million during the three months ended June 26, 2009, when compared to the same period in the prior year. This decrease was attributable to (i) a decrease in cost to deliver of $0.6 million due to favorable renegotiations with third party freight carriers and decline in fuel prices, and (ii) a decrease in relocation expenses of $0.7 million due to the Companys realignment of its divisional branches from four regions to six regions in the prior year period.
General and administrative expenses decreased $0.3 million during the three months ended June 26, 2009, when compared to the same period in the prior year. This decrease was primarily attributable to (i) a decrease in bad debt expense of $0.6 million primarily related to the bankruptcy of one of the Elder Care Business customers that occurred during the three months ended June 27, 2008 and (ii) a decrease in expenses incurred for the National Meeting of $0.5 million. These decreases were partially offset by an increase of $0.9 million in payroll and bonus related charges primarily due to performance accruals.
General and administrative expenses for the three months ended June 26, 2009 increased $4.5 million when compared to the same period in the prior year. This increase is primarily attributable to an increase of $4.9 million in long-term incentive based compensation expense related to a change in estimate. This was partially offset by a decrease in payroll and payroll related costs of $0.3 million.
Read the The complete ReportPSSI is in the portfolios of Ron Baron of Baron Funds.
PSS World Medical Inc. is a specialty marketer and distributor of medical products to physicians alternate-site imaging centers long-term care providers home care providers and hospitals. They have become a leader in three of the market segments it serves with a focused market specific approach to customer service a consultative sales force strategic acquisitions strong arrangements with product manufacturers innovative systems and a unique culture of performance. PSS World Medical Inc. has a market cap of $1.2 billion; its shares were traded at around $20.29 with a P/E ratio of 19.9 and P/S ratio of 0.6. PSS World Medical Inc. had an annual average earning growth of 18.3% over the past 5 years.
Highlight of Business Operations:
As discussed in Footnote 1, Background and Basis of Presentation, effective March 28, 2009, the Company adopted FSP APB 14-1 and, as required by this new standard the Company retrospectively applied this change in accounting to all prior periods for which the Company had applicable outstanding convertible debt. As a result of the adoption of FSP APB 14-1, pre-tax income decreased $1.8 million ($1.1 million net of tax) and $1.5 million ($0.9 million net of tax) for the three months ended June 26, 2009 and June 27, 2008, respectively. See Footnote 3, Debt, for additional information.In April 2009, the Company sold its remaining investment in athenahealth, Inc. (athena), a leading provider of internet-based healthcare information technology and business services to physician practices, for $10.7 million, resulting in a gain of $3.6 million located in Other income, net on the Unaudited Condensed Consolidated Statements of Operations, or $2.3 million net of tax. See Footnote 2, Equity Investment, for additional information.
gloves and hand sanitizer, related to the swine flu pandemic. This resulted in an increase of approximately $9.0 million in net sales, with approximately $7.2 million of the increase relating to the sale of branded lab diagnostics and $0.6 million related to the sale of Select disposables. In addition to the effect of the swine flu, Select product sales increased during the three months ended June 26, 2009 due to the Companys continued focus on promoting its globally-sourced Select products, which resulted in new customer sales as well as customer conversions from other manufacturers branded products to Select brand products. The Physician Business introduced a program to add new customers during the quarter which resulted in approximately 5,000 new customers. The Company expects this program to have a positive impact on future periods. Equipment sales decreased due to the current economic conditions including a decrease in discretionary spending and procedures and tight credit policies which negatively impacted customers ability to obtain equipment financing.
General and administrative expenses decreased $2.3 million during the three months ended June 26, 2009, when compared to the same period in the prior year. This decrease was attributable to (i) a decrease in cost to deliver of $0.6 million due to favorable renegotiations with third party freight carriers and decline in fuel prices, and (ii) a decrease in relocation expenses of $0.7 million due to the Companys realignment of its divisional branches from four regions to six regions in the prior year period.
General and administrative expenses decreased $0.3 million during the three months ended June 26, 2009, when compared to the same period in the prior year. This decrease was primarily attributable to (i) a decrease in bad debt expense of $0.6 million primarily related to the bankruptcy of one of the Elder Care Business customers that occurred during the three months ended June 27, 2008 and (ii) a decrease in expenses incurred for the National Meeting of $0.5 million. These decreases were partially offset by an increase of $0.9 million in payroll and bonus related charges primarily due to performance accruals.
General and administrative expenses for the three months ended June 26, 2009 increased $4.5 million when compared to the same period in the prior year. This increase is primarily attributable to an increase of $4.9 million in long-term incentive based compensation expense related to a change in estimate. This was partially offset by a decrease in payroll and payroll related costs of $0.3 million.
Read the The complete ReportPSSI is in the portfolios of Ron Baron of Baron Funds.
