PSS World Medical, a distributor of medical products, has witnessed an increase of sales by 4.5% for the fiscal 2010 first quarter ended June 26, 2009.
The company posted $493.6 million in net sales for the first quarter of 2010, as compared to net sales of $472.2 million for the same period last year, representing an increase of 4.5%. The net sales for the Physician Business increased by 3.3%, while net sales for the Elder Care Business increased by 7.1%.
For the three months ended June 26, 2009, the company posted $13.3 million of net income, as compared to $9.4 million posted for the same period of the prior year.
David Smith, chairman and chief executive officer of PSS World Medical, said: Execution of efficiency projects, customer solutions programs, and market share expansion is ahead of schedule. Our solid first-quarter results and continuing momentum strengthen our confidence to achieve our goal of 20% EPS growth in fiscal year 2010.
David Bronson, executive vice president and chief financial officer of PSS World Medical, said: Business simplification, our ‘lean way of life’, and the cost containment programs implemented earlier this year contributed to significant growth in operating profit in each business. The solid start to our fiscal year, along with the positive impact resulting from the sale of securities and swine flu-related product sales, required an increase in accruals for long-term incentive compensation in the quarter. Growth in profitability, in addition to our ongoing focus on working capital turns, resulted in record operating cash flow and a nearly eight percentage-point increase in quarterly return on committed capital, to 28.4%.”