PSS World Medical, Inc. Accelerates Gulf South Medical Supply Integration Efforts and Conforms Accounting Practices.
For the fiscal year ended April 3, 1998, the Company expects to report earnings growth of approximately 30% over fiscal 1997, which is $0.04 per share below analyst expectations. This reduction is primarily due to the effect of merging PSS World Medical and Gulf South Medical Supply, which have different reporting periods. PSS World Medical plans to release year-end results in early to mid-June, following the completion of its year-end audit.
The Company also believes that this adjustment will affect earnings in fiscal 1999, which, although anticipated to increase approximately 30% over the Company's 1998 fiscal year, are expected to be approximately 14% below analyst expectations. This reduction is primarily due to (i) the conforming of accounting practices noted above and the implications of those accounting changes on future growth forecasts and (ii) the Company's decision to accelerate and increase expenditures on Gulf South Medical Supply infrastructure to support integration and future growth.
Patrick C. Kelly, chairman and chief executive officer of PSS World Medical, said, "We believe our business and its growth fundamentals are enhanced by the combined strength of our organizations. We also believe that the accelerated integration and infrastructure investments will provide improved future growth."
Thomas G. Hixon, president and chief operating officer of PSS World Medical, formerly chairman and chief executive officer of Gulf South Medical Supply, said, "I support the accelerated integration and infrastructure spending and the conformity in accounting practices and look forward to the continued success of the combined organizations."
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 and Service Division. Through its Gulf South Medical Supply subsidiary, the Company is the largest national distributor 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 detailed in the company's reports filed with the Securities and Exchange Commission, including business and economic conditions, as well as conditions affecting the health care industry, competitive forces 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
Thomas A. Crowley Jr., 973/783-1510
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|Date:||May 8, 1998|
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