PSS WORLD MEDICAL INC

CIK:0000920527|SEC Filings

Earnings Per Share

9 Months Ended

Dec. 28, 2012

Basic earnings per common share attributable to PSS World Medical, Inc. is computed by dividing Net income attributable to PSS World Medical, Inc. by the weighted average number of the Company's common shares outstanding during the period. Diluted earnings per common share attributable to PSS World Medical, Inc. is computed by dividing Net income attributable to PSS World Medical, Inc. by the weighted average number of the Company's common shares and common equivalent shares outstanding during the period adjusted for the potential dilutive effect of stock options and restricted stock using the treasury stock method and the potential dilutive effect of outstanding convertible senior notes. Common equivalent shares are excluded from the computation in periods in which they have an anti-dilutive effect.

The following table sets forth computational data for the denominator in the basic and diluted earnings per common share calculation for the three and nine months ended December 28, 2012 and December 30, 2011:

		For the Three Months Ended		For the Nine Months Ended
		December 28,	December 30,	December 28,	December 30,
(in thousands)		2012	2011	2012	2011
Denominator-weighted average shares outstanding
	used in computing basic earnings per common share	49,466	51,308	49,464	52,594
Assumed conversion of the 2008 Notes		2,241	648	926	1,482
Assumed vesting of restricted stock		527	419	455	444
Assumed exercise of stock options^(a)		18	60	18	73
Denominator-weighted average shares outstanding
	used in computing diluted earnings per common share	52,252	52,435	50,863	54,593

There were no anti-dilutive options outstanding as of December 28, 2012 and December 30, 2011.

The Company included shares underlying its 2008 Notes in its diluted weighted average shares outstanding during the three and nine months ended December 28, 2012. Under the treasury stock method of accounting for share dilution, shares that would be issuable upon conversion were included, based upon the amount by which the average stock price for the period exceeded the conversion price of $21.22.

If the average price of the Company's common stock exceeds $28.29 per share, additional potential shares that may be issued related to outstanding warrants, using the treasury stock method, will also be included. Prior to conversion, certain outstanding purchased options are not considered for purposes of the dilutive earnings per share calculation as their effect is considered to be anti-dilutive.

Supplemental Cash Flow Information

9 Months Ended

Dec. 28, 2012

Supplemental Cash Flow Information [Abstract]

SUPPLEMENTAL CASH FLOW INFORMATION

The Company's supplemental disclosures for the nine months ended December 28, 2012 and December 30, 2011 are as follows:

	For the Nine Months Ended
(in thousands)	December 28,		December 30,
Cash paid for:	2012		2011
Interest	$	12,445	$	4,338
Income taxes, net	$	22,561	$	35,911

During the nine months ended December 28, 2012, the amount of cash paid for income taxes decreased primarily due to the carryover of residual payments made during fiscal year 2012.

During the nine months ended December 28, 2012, the amount of cash paid for interest increased primarily due to the first semi-annual payment made on the 2012 Notes.

During the nine months ended December 28, 2012 and December 30, 2011, the Company had no material non-cash transactions.

Unaudited Condensed Consolidated Balance Sheets (USD $)
In Thousands, unless otherwise specified

Dec. 28, 2012

Mar. 30, 2012

Assets, Current [Abstract]

Cash and cash equivalents

$ 216,134

$ 163,152

Accounts receivable, net of allowance for doubtful accounts of $4,004 and $3,410 as of December 28, 2012 and March 30, 2012, respectively

204,186

189,542

Inventories

177,482

147,198

Prepaid expenses

6,354

4,936

Other current assets

53,120

39,250

Assets held for sale

252,420

^[1]

277,378

^[1]

Total current assets

909,696

821,456

Property and equipment, net of accumulated depreciation of $148,611 and $134,235 as of December 28, 2012 and March 30, 2012, respectively

82,420

80,151

Other Assets, Noncurrent [Abstract]

Goodwill

143,476

109,457

Intangibles, net of accumulated amortization of $19,008 and $14,037 as of December 28, 2012 and March 30, 2012, respectively

52,270

33,546

Other assets

118,954

111,360

Total assets

1,306,816

^[1]

1,155,970

^[1]

Liabilities, Current [Abstract]

Accounts payable

147,379

118,719

Accrued expenses

55,892

37,436

Current portion of long-term debt

212,387

Other current liabilities

39,842

8,015

Liabilities held for sale

40,516

^[1]

37,640

^[1]

Total current liabilities

496,016

201,810

Revolving line of credit and long-term debt, excluding current portion

250,000

454,916

Other noncurrent liabilities

109,431

108,433

Total liabilities

855,447

^[1]

765,159

Commitments and contingencies (Note 13)

Equity [Abstract]

Preferred stock, $0.01 par value; 1,000,000 shares authorized, no shares issued and outstanding

Common stock, $0.01 par value; 150,000,000 shares authorized, 50,328,843 and 50,312,323 shares issued and outstanding as of December 28, 2012 and March 30, 2012, respectively

495

Retained earnings

447,779

386,633

Total PSS World Medical, Inc. shareholders' equity

448,274

387,128

Noncontrolling interest

3,095

3,683

Total equity

451,369

390,811

Total liabilities and equity

$ 1,306,816

$ 1,155,970

[1]	See Footnote 3, Discontinued Operations and Plan of Merger, for discussion of assets and liabilities held for sale. See Footnote 4, Variable Interest Entity, for discussion of the assets and liabilities related to the Company’s consolidated variable interest entities.