PSS World Medical F4Q09 (Qtr End 3/27/09) Earnings Call Transcript

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2009-05-08 13:44:12.0

Tags: Goldman Sachs & Co., Randall, Call Transcript, Earnings, Sales Strategy, Operational Accounting, Sales, Finance, Seeking Alpha, PSS World Medical Inc.

Question-and-Answer Session

Operator

Certainly (Operator Instructions). Our first question comes from the line of Randall Stanicky from Goldman Sachs. Please proceed with your question.

Alex Beckler - Goldman Sachs

Good morning it's Alex Beckler for Randall actually. A couple of clarifications, first on the expenses. It seems like the full year '09 it seems like the corporate expense line item is up 50% for the year with segment margins meaningfully up in both segments. So I am just curious if there were any expenses in '09 that were moved from the segment to the corporate line?

David Bronson

We didn't have any reclassification I will remind you Randall that, Alex sorry that last year we had a fairly large favorable item, in terms of a bonus decrease in our bonus accruals for last year, which was the third year of our three plan and also this year is the first year of our new three year plan, a year that we historically make investments in some of new initiatives that drive returns in the out year. So I think its combination of both of those things. I'll tell you that expenses came in above favorable to our internal expectations and also that our overall operating margin improved.

Alex Beckler - Goldman Sachs

Got it. So the 10 million corporate expense in the quarter should we expect that to trend down over the course of 2010?

David Bronson

It's a little bit impacted by the number of days in the quarter, but I think it's a decent run rate, yes.

Alex Beckler - Goldman Sachs

Okay. And final clarification, should we assume that your fiscal 2011 guidance will remain intact, or should we waiting for the Investor Day for clarification, here?

David Smith

We are addressing is this next fiscal year. Clearly the management has the same three year business plan in mind. But we feel like going out one year. So the only thing credible that we could do right now and we'll flush out a lot of that kind of stuff at the May 19, Investor Day.

Alex Beckler - Goldman Sachs

Fair enough. Thank you.

Operator

Our next question comes from the line of Lisa Gill from JPMorgan. Please proceed with your question.

Unidentified Analyst

Hi, thanks. It's Arthur Freeman (ph) for Lisa. Dave you've mentioned that you've seen an uptick in the Physician business starting April. Could you provide any color on where that's coming from? Would it be the equipment sales, which that I think grew 11 million or so. And so if that was delayed or cancelled. Do you see an uptick in that or was it more related to the flu issues or something else?

 

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