PSS World Medical Reports Results For Fiscal Year 2011 Third Quarter

Third Quarter Highlights:

• Consolidated net sales growth of 1.5%

• Physician Business net sales growth of 1.2%, with net sales growth of 7.4% excluding prior-year H1N1-related product sales
• Elder Care Business net sales growth of 1.9%

• Consolidated operating margin growth of 44 basis points to 6.8%

• Physician Business operating margin decline of 29 basis points to 9.8%
• Elder Care Business operating margin growth of 19 basis points to 6.8%

• Consolidated earnings per diluted share growth of 16.6% to $0.35
• Consolidated cash flow from operations of $35.9 million

JACKSONVILLE, Fla., Jan. 27, 2011 (GLOBE NEWSWIRE) -- PSS World Medical, Inc. (Nasdaq:PSSI) announced today its results for the fiscal 2011 third quarter ended December 31, 2010.

Gary A. Corless, President and Chief Executive Officer, commented, "Sales growth of 1.5% in the third quarter reflects stability in our markets and our team's success in continuing to solve caregivers' biggest problems. While we are seeing early signs of a return to growth in our markets, our plan does not anticipate an increase in demand to reach our raised earnings per share goal of $1.30 - $1.32 per diluted share for fiscal year 2011.

"Over the longer term, we are encouraged by the heightened focus on and investment in quality care initiatives and the expansion of physician and preventive care services in the U.S. health care system.  We remain confident in our team's ability to take advantage of these developments, as well as execute in the fourth quarter to successfully deliver value to our customers and shareholders."

David M. Bronson, Executive Vice President and Chief Financial Officer, commented, "We continue to achieve year-over-year operating margin expansion of 40-50 basis points, driven by successful execution of our business strategies and responsible expense management.  Operating cash flows of approximately $75 million through the first three quarters have put us on track to reach our full year goal and facilitated accretive share repurchases and our acquisition strategy. During this fiscal year, we have acquired $100 million of annualized revenue from a combination of strategic targets and fold-ins, more than doubling the goal we had established for this year.  After some modest transaction and integration costs, these acquisitions will add several percentage points of earnings growth next fiscal year."