PSS World Medical (PSSI) Announces Restrucuting; Will Report in Four Distinct Units, Aim for $120M of Additional Revs/Yr.
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PSS World Medical, Inc. (Nasdaq: PSSI) announced today that its Board of Directors has approved a strategic restructuring plan designed to transform the Company, focusing its efforts and investments on what it believes will be the fastest growing segments of non-acute, alternate site healthcare in the U.S. Specifically, the Company will focus on physician, laboratory, in-office dispensing, and the home care and hospice markets. The Company will seek to divest its skilled nursing business and a specialty dental business.
President and Chief Executive Officer, Gary A. Corless, commented, "As the U.S. healthcare system deals with unprecedented change and uncertainty, it is imperative that PSS be part of a solution, which we are referring to as Healthcare 2.0. The transformation we are undertaking will reposition us to better serve those front line caregivers, who improve patient outcomes through the delivery of high quality, cost effective care, in settings preferred by patients and payers. We will help our nation's providers adapt to an increasingly complex and challenging environment by delivering on our purpose to strengthen the clinical success and financial health of caregivers by solving their biggest problems.
"This is a unique opportunity to transform our business at an accelerated pace to meet the changing needs of the healthcare market by leveraging our strengths, our position and our expertise while enhancing shareholder value. We must now increase our investment in key strategic businesses and narrow our focus to customers who can best benefit from our expertise and service model. By focusing on these four business verticals, we will better support caregivers' efforts to detect, diagnose, and treat at the point of care in a convenient setting," continued Corless.
"For shareholders, we believe this new direction will provide accelerated growth and higher returns. This strategic transformation of our Company, which will occur over the next several years, will enable us to provide attractive returns to our shareholders, with a target of doubling revenues and increasing operating margins to greater than 10%," Corless concluded.
David M. Bronson, Executive Vice President and Chief Financial Officer, commented, "The Company approaches this strategic transformation from a position of financial strength and flexibility. We are excited to announce definitive agreements to acquire three companies, InfoLab, ProLabs and Physician Partners, that are expected to be accretive in fiscal year 2013 and add annual revenues of approximately $120 million. An aggressive, focused acquisition strategy will continue to be a key part of the strategic transformation plan we are announcing today."
"This plan will also include the integration of all our warehouse operations into one common distribution infrastructure, as well as a redesign of our shared service and field support functions. These efforts are expected to significantly reduce operating costs while streamlining decision making and improving service. We want to assure customers in both of our current businesses, physician and extended care, that they will experience no immediate changes. Our salesforce, delivery professionals, customer service representatives, and other customer facing team members will continue to serve customers as usual."
President and Chief Executive Officer, Gary A. Corless, commented, "As the U.S. healthcare system deals with unprecedented change and uncertainty, it is imperative that PSS be part of a solution, which we are referring to as Healthcare 2.0. The transformation we are undertaking will reposition us to better serve those front line caregivers, who improve patient outcomes through the delivery of high quality, cost effective care, in settings preferred by patients and payers. We will help our nation's providers adapt to an increasingly complex and challenging environment by delivering on our purpose to strengthen the clinical success and financial health of caregivers by solving their biggest problems.
"This is a unique opportunity to transform our business at an accelerated pace to meet the changing needs of the healthcare market by leveraging our strengths, our position and our expertise while enhancing shareholder value. We must now increase our investment in key strategic businesses and narrow our focus to customers who can best benefit from our expertise and service model. By focusing on these four business verticals, we will better support caregivers' efforts to detect, diagnose, and treat at the point of care in a convenient setting," continued Corless.
"For shareholders, we believe this new direction will provide accelerated growth and higher returns. This strategic transformation of our Company, which will occur over the next several years, will enable us to provide attractive returns to our shareholders, with a target of doubling revenues and increasing operating margins to greater than 10%," Corless concluded.
David M. Bronson, Executive Vice President and Chief Financial Officer, commented, "The Company approaches this strategic transformation from a position of financial strength and flexibility. We are excited to announce definitive agreements to acquire three companies, InfoLab, ProLabs and Physician Partners, that are expected to be accretive in fiscal year 2013 and add annual revenues of approximately $120 million. An aggressive, focused acquisition strategy will continue to be a key part of the strategic transformation plan we are announcing today."
"This plan will also include the integration of all our warehouse operations into one common distribution infrastructure, as well as a redesign of our shared service and field support functions. These efforts are expected to significantly reduce operating costs while streamlining decision making and improving service. We want to assure customers in both of our current businesses, physician and extended care, that they will experience no immediate changes. Our salesforce, delivery professionals, customer service representatives, and other customer facing team members will continue to serve customers as usual."
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