Premier, Inc. Reports Fiscal-Year 2024 First-Quarter Results
- Premier, Inc. reported a 2% increase in net revenue year over year, reaching $318.8 million. The adjusted EBITDA increased by 5% to $105.7 million, and the adjusted EPS increased by 15% to $0.54, indicating positive financial performance for the company.
- The company's cash and cash equivalents were $453.3 million as of September 30, 2023, representing a significant liquidity position that could support future growth and investment opportunities.
- The Supply Chain Services segment net revenue decreased by 4% from the prior-year period, primarily driven by a decline in products revenue. This decrease could indicate a potential challenge in the demand and pricing of certain products within this segment.
- Premier, Inc. did not provide fiscal year 2024 guidance at this time, which could lead to uncertainty among investors and analysts regarding the company's future performance and strategic direction.
"Our first quarter results reflect continued progress in advancing our strategy to technology-enable better, smarter healthcare as we continue to innovate with our members and other customers," said Michael J. Alkire, Premier's President and CEO. "We performed better than anticipated in terms of profitability as we continued to actively manage our businesses in a challenging macroeconomic environment. Year over year consolidated net revenue growth was driven by strong growth in our Performance Services segment."
Consolidated Financial Highlights |
||||||||
|
Three Months Ended September 30, |
|||||||
(in thousands, except per share data) |
2023 |
2022 |
% Change |
|||||
Net revenue: |
|
|
|
|||||
Supply Chain Services: |
|
|
|
|||||
Net administrative fees |
$ |
149,027 |
|
$ |
150,006 |
|
(1 |
%) |
Software licenses, other services and support |
|
11,186 |
|
|
10,826 |
|
3 |
% |
Services and software licenses |
|
160,213 |
|
|
160,832 |
|
— |
% |
Products |
|
50,585 |
|
|
58,861 |
|
(14 |
%) |
Total Supply Chain Services |
|
210,798 |
|
|
219,693 |
|
(4 |
%) |
Performance Services |
|
108,006 |
|
|
94,189 |
|
15 |
% |
Total segment net revenue |
|
318,804 |
|
|
313,882 |
|
2 |
% |
Eliminations |
|
(52 |
) |
|
(9 |
) |
478 |
% |
Net revenue |
$ |
318,752 |
|
$ |
313,873 |
|
2 |
% |
|
|
|
|
|||||
Net income |
$ |
42,410 |
|
$ |
42,959 |
|
(1 |
%) |
Net income attributable to stockholders |
$ |
44,761 |
|
$ |
42,716 |
|
5 |
% |
|
|
|
|
|||||
Diluted earnings per share attributable to stockholders |
$ |
0.37 |
|
$ |
0.36 |
|
3 |
% |
Consolidated Financial Highlights |
||||||||
|
Three Months Ended September 30, |
|||||||
(in thousands, except per share data) |
2023 |
2022 |
% Change |
|||||
|
|
|
|
|||||
NON-GAAP FINANCIAL MEASURES*: |
|
|
|
|||||
|
|
|
|
|||||
Adjusted EBITDA: |
|
|
|
|||||
Supply Chain Services |
$ |
114,974 |
|
$ |
113,187 |
|
2 |
% |
Performance Services |
|
21,774 |
|
|
19,132 |
|
14 |
% |
Total segment adjusted EBITDA |
|
136,748 |
|
|
132,319 |
|
3 |
% |
Corporate |
|
(31,009 |
) |
|
(31,182 |
) |
1 |
% |
Total |
$ |
105,739 |
|
$ |
101,137 |
|
5 |
% |
Adjusted net income |
$ |
64,887 |
|
$ |
56,232 |
|
15 |
% |
Adjusted earnings per share (EPS) |
$ |
0.54 |
|
$ |
0.47 |
|
15 |
% |
|
|
|
|
|||||
* Refer to Premier's Use and Definition of Non-GAAP Measures below and the supplemental financial information at the end of this release for information on the company's use of non-GAAP measures and a reconciliation of reported GAAP results to non-GAAP results. |
||||||||
Results of Operations for the Three Months Ended September 30, 2023
(As compared with the three months ended September 30, 2022)
GAAP net revenue of
GAAP net income of
GAAP diluted EPS of
Adjusted EBITDA of
Adjusted net income of
Segment Results
(For the fiscal first quarter of 2024 as compared with the fiscal first quarter of 2023)
Supply Chain Services
Supply Chain Services segment net revenue of
Net administrative fees revenue of
Products revenue of
Segment adjusted EBITDA of
Performance Services
Performance Services segment net revenue of
Segment adjusted EBITDA of
Cash Flows and Liquidity
Net cash provided by operating activities ("operating cash flow") for the three months ended September 30, 2023 of
Net cash used in investing activities and net cash provided by financing activities for the three months ended September 30, 2023, were
Free cash flow for the three months ended September 30, 2023 of
During the first three months of fiscal 2024, the company paid aggregate dividends of
Fiscal Year 2024 Guidance
As previously announced and considering its ongoing strategic review, the company will not be providing fiscal year 2024 guidance at this time.
Conference Call and Webcast
Premier will host a conference call to provide additional detail around the company's performance and outlook today at 8:00 a.m. ET. The call will be webcast live from the company's website and, along with the accompanying presentation, will be available at the following link: Premier Events. The webcast should be accessed 10 minutes prior to the conference call start time. A replay of the webcast will be available for one year following the conclusion of the live broadcast and will be accessible on the company's website at https://investors.premierinc.com.
For those parties who do not have internet access, the conference call may be accessed by calling one of the below telephone numbers and asking to join the Premier, Inc. call:
Domestic participant dial-in number (toll-free): |
(833) 953-2438 |
|
International participant dial-in number: |
(412) 317-5767 |
About Premier, Inc.
Premier, Inc. (NASDAQ: PINC) is a leading healthcare improvement company, uniting an alliance of more than 4,350
Premier’s Use and Definition of Non-GAAP Measures
Premier uses EBITDA, adjusted EBITDA, segment adjusted EBITDA, adjusted net income, adjusted earnings per share, and free cash flow. These are non-GAAP financial measures that are not in accordance with, or an alternative to, GAAP, and may be different from non-GAAP financial measures used by other companies. We include these non-GAAP financial measures to facilitate a comparison of the company’s operating performance on a consistent basis from period to period and to provide measures that, when viewed in combination with its results prepared in accordance with GAAP, we believe allow for a more complete understanding of factors and trends affecting the company’s business than GAAP measures alone. Management believes EBITDA, adjusted EBITDA and segment adjusted EBITDA assist the company’s board of directors, management and investors in comparing the company’s operating performance on a consistent basis from period to period by removing the impact of the company’s asset base (primarily depreciation and amortization) and items outside the control of management (taxes), as well as other non-cash (impairment of intangible assets and purchase accounting adjustments) and non-recurring items, from operating results. Adjusted EBITDA and segment adjusted EBITDA are supplemental financial measures used by the company and by external users of the company’s financial statements.
Management considers adjusted EBITDA an indicator of the operational strength and performance of the company’s business. Adjusted EBITDA allows management to assess performance without regard to financing methods and capital structure and without the impact of other matters that management does not consider indicative of the operating performance of the business. Segment adjusted EBITDA is the primary earnings measure used by management to evaluate the performance of the company’s business segments.
Management believes free cash flow is an important measure because it represents the cash that the company generates after payment of tax distributions to limited partners, payments to certain former limited partners that elected to execute a Unit Exchange and Tax Receivable Agreement (“Unit Exchange Agreement") in connection with our August 2020 restructuring and purchases of property and equipment to maintain existing products and services and ongoing business operations, as well as development of new and upgraded products and services to support future growth. Free cash flow is important because it enables the company to seek enhancement of stockholder value through acquisitions, partnerships, joint ventures, investments in related or complimentary businesses and/or debt reduction.
Non-recurring items are items to be income or expenses and other items that have not been earned or incurred within the prior two years and are not expected to recur within the next two years. Such items include stock-based compensation, acquisition- and disposition-related expenses, strategic initiative- and financial restructuring-related expenses, remeasurement of TRA liabilities, loss on disposal of long-live assets, gain or loss on FFF put and call rights, income and expense that has been classified as discontinued operations and other expense.
Non-operating items include gains or losses on the disposal of assets and interest and investment income or expense.
EBITDA is defined as net income before income or loss from discontinued operations, net of tax, interest and investment income or expense, net, income tax expense, depreciation and amortization and amortization of purchased intangible assets.
Adjusted EBITDA is defined as EBITDA before merger and acquisition-related expenses and non-recurring, non-cash or non-operating items.
Segment adjusted EBITDA is defined as the segment’s net revenue less cost of revenue and operating expenses directly attributable to the segment excluding depreciation and amortization, amortization of purchased intangible assets, merger and acquisition-related expenses and non-recurring or non-cash items. Operating expenses directly attributable to the segment include expenses associated with sales and marketing, general and administrative, and product development activities specific to the operation of each segment. General and administrative corporate expenses that are not specific to a particular segment are not included in the calculation of Segment Adjusted EBITDA. Segment Adjusted EBITDA also excludes any income and expense that has been classified as discontinued operations.
Adjusted net income is defined as net income attributable to Premier (i) excluding income or loss from discontinued operations, net, (ii) excluding income tax expense, (iii) excluding the effect of non-recurring or non-cash items, including certain strategic initiative- and financial restructuring-related expenses, (iv) reflecting an adjustment for income tax expense on Non-GAAP net income before income taxes at our estimated annual effective income tax rate, adjusted for unusual or infrequent items and (v) excluding the equity in net income of unconsolidated affiliates.
Adjusted earnings per share is Adjusted Net Income divided by diluted weighted average shares.
Free cash flow is defined as net cash provided by operating activities from continuing operations less distributions and Tax Receivable Agreement payments to limited partners, early termination payments to certain former limited partners that elected to execute a Unit Exchange Agreement in connection with our August 2020 restructuring and purchases of property and equipment. Free Cash Flow does not represent discretionary cash available for spending as it excludes certain contractual obligations such as debt repayments.
To properly and prudently evaluate our business, readers are urged to review the reconciliation of these non-GAAP financial measures, as well as the other financial tables, included at the end of this release. Readers should not rely on any single financial measure to evaluate the company’s business. In addition, the non-GAAP financial measures used in this release are susceptible to varying calculations and may differ from, and may therefore not be comparable to, similarly titled measures used by other companies.
The Company has revised the definitions for Adjusted EBITDA, Segment Adjusted EBITDA and Adjusted Net Income from the definitions reported in the 2023 Annual Report. Adjusted EBITDA and segment Adjusted EBITDA definitions were revised to exclude the impact of equity earnings in unconsolidated affiliates. The Adjusted Net Income definition was revised (1) remove the exclusion of the impact of adjustment of redeemable limited partners’ capital to redemption amount, (2) remove the impact of the exchange of all Class B common units for shares of Class A common stock for periods prior to our August 2020 Restructuring and the resulting elimination of non-controlling interest in Premier LP, and (3) add the exclusion of equity earnings in unconsolidated affiliates. For comparability purposes, prior year non-GAAP financial measures are presented based on the current definitions in the above section.
Further information on Premier’s use of non-GAAP financial measures is available in the “Our Use of Non-GAAP Financial Measures” section of Premier’s Form 10-K for the year ended June 30, 2024, filed with the Securities and Exchange Commission (SEC), as may be updated in subsequent filings with the SEC.
Cautionary Note Regarding Forward-Looking Statements
Statements made in this release that are not statements of historical or current facts, including, but not limited to those related to our ability to advance our long-term strategies and develop innovations for and transform healthcare and our expected effective income tax rate, are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Premier to be materially different from historical results or from any future results or projections expressed or implied by such forward-looking statements. Accordingly, readers should not place undue reliance on any forward-looking statements. In addition to statements that explicitly describe such risks and uncertainties, readers are urged to consider statements in the conditional or future tenses or that include terms such as “believes,” “belief,” “expects,” “estimates,” “intends,” “anticipates” or “plans” to be uncertain and forward-looking. Forward-looking statements may include comments as to Premier’s beliefs and expectations as to future events and trends affecting its business and are necessarily subject to uncertainties, many of which are outside Premier’s control. More information on potential factors that could affect Premier’s financial results is included from time to time in the “Cautionary Note Regarding Forward-Looking Statements,” “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of Premier’s periodic and current filings with the SEC, including those discussed under the “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” section of Premier’s Form 10-K for the year ended June 30, 2023 as well as the Form 10-Q for the quarter ended September 30, 2023, expected to be filed with the SEC shortly after the date of this release, and also made available on Premier’s website at investors.premierinc.com. Forward-looking statements speak only as of the date they are made, and Premier undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information or future events that occur after that date, or otherwise.
Condensed Consolidated Statements of Income |
||||||
(Unaudited) |
||||||
(In thousands, except per share data) |
||||||
|
|
|
||||
|
Three Months Ended |
|||||
|
September 30, |
|||||
|
2023 |
2022 |
||||
Net revenue: |
|
|
||||
Net administrative fees |
$ |
149,027 |
|
$ |
150,006 |
|
Software licenses, other services and support |
|
119,140 |
|
|
105,006 |
|
Services and software licenses |
|
268,167 |
|
|
255,012 |
|
Products |
|
50,585 |
|
|
58,861 |
|
Net revenue |
|
318,752 |
|
|
313,873 |
|
Cost of revenue: |
|
|
||||
Services and software licenses |
|
64,132 |
|
|
54,014 |
|
Products |
|
44,038 |
|
|
57,874 |
|
Cost of revenue |
|
108,170 |
|
|
111,888 |
|
Gross profit |
|
210,582 |
|
|
201,985 |
|
Operating expenses: |
|
|
||||
Selling, general and administrative |
|
138,060 |
|
|
132,050 |
|
Research and development |
|
863 |
|
|
975 |
|
Amortization of purchased intangible assets |
|
12,688 |
|
|
10,452 |
|
Operating expenses |
|
151,611 |
|
|
143,477 |
|
Operating income |
|
58,971 |
|
|
58,508 |
|
Equity in net (loss) income of unconsolidated affiliates |
|
(1,726 |
) |
|
8,243 |
|
Interest income (expense), net |
|
195 |
|
|
(2,859 |
) |
Other expense, net |
|
(1,092 |
) |
|
(2,164 |
) |
Other (expense) income, net |
|
(2,623 |
) |
|
3,220 |
|
Income before income taxes |
|
56,348 |
|
|
61,728 |
|
Income tax expense |
|
13,938 |
|
|
18,769 |
|
Net income |
|
42,410 |
|
|
42,959 |
|
Net loss (income) attributable to non-controlling interest |
|
2,351 |
|
|
(243 |
) |
Net income attributable to stockholders |
$ |
44,761 |
|
$ |
42,716 |
|
|
|
|
||||
Calculation of GAAP Earnings per Share |
|
|
||||
|
|
|
||||
Numerator for basic and diluted earnings per share: |
|
|
||||
Net income attributable to stockholders |
$ |
44,761 |
|
$ |
42,716 |
|
|
|
|
||||
Denominator for earnings per share: |
|
|
||||
Basic weighted average shares outstanding |
|
119,344 |
|
|
118,351 |
|
Effect of dilutive securities: |
|
|
||||
Stock options |
|
— |
|
|
146 |
|
Restricted stock units |
|
534 |
|
|
563 |
|
Performance share awards |
|
255 |
|
|
973 |
|
Diluted weighted average shares |
|
120,133 |
|
|
120,033 |
|
|
|
|
||||
Earnings per share attributable to stockholders: |
|
|
||||
Basic |
$ |
0.38 |
|
$ |
0.36 |
|
Diluted |
$ |
0.37 |
|
$ |
0.36 |
|
Condensed Consolidated Balance Sheets |
||||||
(Unaudited) |
||||||
(In thousands, except share data) |
||||||
|
|
|
||||
|
September 30, 2023 |
June 30, 2023 |
||||
Assets |
|
|
||||
Cash and cash equivalents |
$ |
453,261 |
|
$ |
89,793 |
|
Accounts receivable (net of |
|
102,122 |
|
|
115,295 |
|
Contract assets (net of |
|
311,557 |
|
|
299,219 |
|
Inventory |
|
69,868 |
|
|
76,932 |
|
Prepaid expenses and other current assets |
|
65,566 |
|
|
60,387 |
|
Total current assets |
|
1,002,374 |
|
|
641,626 |
|
Property and equipment (net of |
|
210,519 |
|
|
212,308 |
|
Intangible assets (net of |
|
417,342 |
|
|
430,030 |
|
Goodwill |
|
1,012,355 |
|
|
1,012,355 |
|
Deferred income tax assets |
|
797,064 |
|
|
653,629 |
|
Deferred compensation plan assets |
|
44,029 |
|
|
50,346 |
|
Investments in unconsolidated affiliates |
|
230,080 |
|
|
231,826 |
|
Operating lease right-of-use assets |
|
26,871 |
|
|
29,252 |
|
Other assets |
|
108,938 |
|
|
110,115 |
|
Total assets |
$ |
3,849,572 |
|
$ |
3,371,487 |
|
|
|
|
||||
Liabilities and stockholders' equity |
|
|||||
Accounts payable |
$ |
48,545 |
|
$ |
54,375 |
|
Accrued expenses |
|
46,193 |
|
|
47,113 |
|
Revenue share obligations |
|
265,832 |
|
|
262,288 |
|
Accrued compensation and benefits |
|
45,807 |
|
|
60,591 |
|
Deferred revenue |
|
20,730 |
|
|
24,311 |
|
Current portion of notes payable to former limited partners |
|
100,130 |
|
|
99,665 |
|
Line of credit and current portion of long-term debt |
|
1,199 |
|
|
216,546 |
|
Current portion of liability related to the sale of future revenues |
|
32,827 |
|
|
— |
|
Other current liabilities |
|
209,263 |
|
|
50,574 |
|
Total current liabilities |
|
770,526 |
|
|
815,463 |
|
Long-term debt, less current portion |
|
— |
|
|
734 |
|
Liability related to the sale of future revenues, less current portion |
|
541,834 |
|
|
— |
|
Notes payable to former limited partners, less current portion |
|
76,317 |
|
|
101,523 |
|
Deferred compensation plan obligations |
|
44,029 |
|
|
50,346 |
|
Operating lease liabilities, less current portion |
|
18,916 |
|
|
21,864 |
|
Other liabilities |
|
45,245 |
|
|
47,202 |
|
Total liabilities |
|
1,496,867 |
|
|
1,037,132 |
|
|
|
|
||||
Commitments and contingencies |
|
|
||||
Stockholders' equity: |
|
|
||||
Class A common stock, |
|
1,261 |
|
|
1,256 |
|
Treasury stock, at cost; 6,429,375 shares at both September 30, 2023 and June 30, 2023 |
|
(250,129 |
) |
|
(250,129 |
) |
Additional paid-in capital |
|
2,177,324 |
|
|
2,178,134 |
|
Retained earnings |
|
424,260 |
|
|
405,102 |
|
Accumulated other comprehensive loss |
|
(11 |
) |
|
(8 |
) |
Total stockholders' equity |
|
2,352,705 |
|
|
2,334,355 |
|
Total liabilities and stockholders' equity |
$ |
3,849,572 |
|
$ |
3,371,487 |
|
Condensed Consolidated Statements of Cash Flows |
||||||
(Unaudited) |
||||||
(In thousands) |
||||||
|
|
|
||||
|
Three Months Ended September 30, |
|||||
|
2023 |
2022 |
||||
Operating activities |
|
|
||||
Net income |
$ |
42,410 |
|
$ |
42,959 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
||||
Depreciation and amortization |
|
33,016 |
|
|
33,891 |
|
Equity in net loss (income) of unconsolidated affiliates |
|
1,726 |
|
|
(8,243 |
) |
Deferred income taxes |
|
(143,435 |
) |
|
2,156 |
|
Stock-based compensation |
|
6,692 |
|
|
7,136 |
|
Other, net |
|
3,459 |
|
|
10,035 |
|
Changes in operating assets and liabilities, net of the effects of acquisitions: |
|
|
||||
Accounts receivable |
|
13,173 |
|
|
8,903 |
|
Contract assets |
|
(16,838 |
) |
|
(11,856 |
) |
Inventory |
|
7,064 |
|
|
(4,229 |
) |
Prepaid expenses and other assets |
|
9,216 |
|
|
17,821 |
|
Accounts payable |
|
(3,099 |
) |
|
15,172 |
|
Revenue share obligations |
|
3,544 |
|
|
2,435 |
|
Accrued expenses, deferred revenue and other liabilities |
|
124,948 |
|
|
(41,429 |
) |
Net cash provided by operating activities |
$ |
81,876 |
|
$ |
74,751 |
|
Investing activities |
|
|
||||
Purchases of property and equipment |
$ |
(21,270 |
) |
$ |
(18,930 |
) |
Other |
|
— |
|
|
(1,300 |
) |
Net cash used in investing activities |
$ |
(21,270 |
) |
$ |
(20,230 |
) |
Financing activities |
|
|
||||
Payments on notes payable |
$ |
(25,823 |
) |
$ |
(26,387 |
) |
Proceeds from credit facility |
|
— |
|
|
100,000 |
|
Payments on credit facility |
|
(215,000 |
) |
|
— |
|
Proceeds from sale of future revenues |
|
578,983 |
|
|
— |
|
Payments on liability related to the sale of future revenues |
|
(4,322 |
) |
|
— |
|
Cash dividends paid |
|
(25,827 |
) |
|
(25,218 |
) |
Other, net |
|
(5,146 |
) |
|
(12,419 |
) |
Net cash provided by financing activities |
$ |
302,865 |
|
$ |
35,976 |
|
Effect of exchange rate changes on cash flows |
|
(3 |
) |
|
(10 |
) |
Net increase in cash and cash equivalents |
|
363,468 |
|
|
90,487 |
|
Cash and cash equivalents at beginning of year |
|
89,793 |
|
|
86,143 |
|
Cash and cash equivalents at end of period |
$ |
453,261 |
|
$ |
176,630 |
|
Supplemental Financial Information |
||||||
Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow |
||||||
(Unaudited) |
||||||
(In thousands) |
||||||
|
|
|
||||
|
Three Months Ended September 30, |
|||||
|
2023 |
2022 |
||||
Net cash provided by operating activities |
$ |
81,876 |
|
$ |
74,751 |
|
Early termination payments to certain former limited partners that elected to execute a Unit Exchange Agreement (a) |
|
(24,742 |
) |
|
(24,277 |
) |
Purchases of property and equipment |
|
(21,270 |
) |
|
(18,930 |
) |
Free Cash Flow |
$ |
35,864 |
|
$ |
31,544 |
|
| ____________________________________________ | ||
(a) |
Early termination payments to certain former limited partners that elected to execute a Unit Exchange Agreement in connection with Premier's August 2020 restructuring are presented in the Condensed Consolidated Statements of Cash Flows under “Payments made on notes payable." During the three months ended September 30, 2023, the company paid |
|
Supplemental Financial Information |
||||||
Reconciliation of Net Income from Continuing Operations to Adjusted EBITDA |
||||||
Reconciliation of Operating Income to Segment Adjusted EBITDA |
||||||
Reconciliation of Net Income Attributable to Stockholders to Adjusted Net Income |
||||||
(Unaudited) |
||||||
(In thousands) |
||||||
|
|
|
||||
|
Three Months Ended |
|||||
|
September 30, |
|||||
|
2023 |
2022 |
||||
Net income |
$ |
42,410 |
|
$ |
42,959 |
|
Interest (income) expense, net |
|
(195 |
) |
|
2,859 |
|
Income tax expense |
|
13,938 |
|
|
18,769 |
|
Depreciation and amortization |
|
20,328 |
|
|
23,439 |
|
Amortization of purchased intangible assets |
|
12,688 |
|
|
10,452 |
|
EBITDA |
|
89,169 |
|
|
98,478 |
|
Stock-based compensation |
|
6,893 |
|
|
7,349 |
|
Acquisition- and disposition-related expenses |
|
6,205 |
|
|
2,160 |
|
Strategic initiative and financial restructuring-related expenses |
|
1,746 |
|
|
1,520 |
|
Equity in net loss (income) of unconsolidated affiliates |
|
1,726 |
|
|
(8,243 |
) |
Other reconciling items, net |
|
— |
|
|
(127 |
) |
Adjusted EBITDA |
$ |
105,739 |
|
$ |
101,137 |
|
|
|
|
||||
Income before income taxes |
$ |
56,348 |
|
$ |
61,728 |
|
Equity in net loss (income) of unconsolidated affiliates |
|
1,726 |
|
|
(8,243 |
) |
Interest (income) expense, net |
|
(195 |
) |
|
2,859 |
|
Other expense, net |
|
1,092 |
|
|
2,164 |
|
Operating income |
|
58,971 |
|
|
58,508 |
|
Depreciation and amortization |
|
20,328 |
|
|
23,439 |
|
Amortization of purchased intangible assets |
|
12,688 |
|
|
10,452 |
|
Stock-based compensation |
|
6,893 |
|
|
7,349 |
|
Acquisition- and disposition-related expenses |
|
6,205 |
|
|
2,160 |
|
Strategic initiative and financial restructuring-related expenses |
|
1,746 |
|
|
1,520 |
|
Deferred compensation plan income |
|
(1,125 |
) |
|
(2,370 |
) |
Other reconciling items, net |
|
33 |
|
|
79 |
|
Adjusted EBITDA |
$ |
105,739 |
|
$ |
101,137 |
|
|
|
|
||||
SEGMENT ADJUSTED EBITDA |
|
|
||||
Supply Chain Services |
$ |
114,974 |
|
$ |
113,187 |
|
Performance Services |
|
21,774 |
|
|
19,132 |
|
Corporate |
|
(31,009 |
) |
|
(31,182 |
) |
Adjusted EBITDA |
$ |
105,739 |
|
$ |
101,137 |
|
|
|
|
||||
Net income attributable to stockholders |
$ |
44,761 |
|
$ |
42,716 |
|
Income tax expense |
|
13,938 |
|
|
18,769 |
|
Amortization of purchased intangible assets |
|
12,688 |
|
|
10,452 |
|
Stock-based compensation |
|
6,893 |
|
|
7,349 |
|
Acquisition- and disposition-related expenses |
|
6,205 |
|
|
2,160 |
|
Strategic initiative and financial restructuring-related expenses |
|
1,746 |
|
|
1,520 |
|
Equity in net loss (income) of unconsolidated affiliates |
|
1,726 |
|
|
(8,243 |
) |
Other reconciling items, net |
|
929 |
|
|
1,267 |
|
Adjusted income before income taxes |
|
88,886 |
|
|
75,990 |
|
Income tax expense on adjusted income before income taxes |
|
23,999 |
|
|
19,758 |
|
Adjusted Net Income |
$ |
64,887 |
|
$ |
56,232 |
|
Supplemental Financial Information |
||||||
Reconciliation of GAAP EPS to Adjusted EPS |
||||||
(Unaudited) |
||||||
(In thousands, except per share data) |
||||||
|
|
|
||||
|
Three Months Ended |
|||||
|
September 30, |
|||||
|
2023 |
2022 |
||||
|
|
|
||||
Net income attributable to stockholders |
$ |
44,761 |
|
$ |
42,716 |
|
Income tax expense |
|
13,938 |
|
|
18,769 |
|
Amortization of purchased intangible assets |
|
12,688 |
|
|
10,452 |
|
Stock-based compensation |
|
6,893 |
|
|
7,349 |
|
Acquisition- and disposition-related expenses |
|
6,205 |
|
|
2,160 |
|
Strategic initiative and financial restructuring-related expenses |
|
1,746 |
|
|
1,520 |
|
Equity in net loss (income) of unconsolidated affiliates |
|
1,726 |
|
|
(8,243 |
) |
Other reconciling items, net |
|
929 |
|
|
1,267 |
|
Adjusted income before income taxes |
|
88,886 |
|
|
75,990 |
|
Income tax expense on adjusted income before income taxes |
|
23,999 |
|
|
19,758 |
|
Adjusted Net Income |
$ |
64,887 |
|
$ |
56,232 |
|
|
|
|
||||
Weighted average: |
|
|
||||
Basic weighted average shares outstanding |
|
119,344 |
|
|
118,351 |
|
Dilutive shares |
|
789 |
|
|
1,682 |
|
Weighted average shares outstanding - diluted |
|
120,133 |
|
|
120,033 |
|
|
|
|
||||
Basic earnings per share attributable to stockholders |
$ |
0.38 |
|
$ |
0.36 |
|
Income tax expense |
|
0.12 |
|
|
0.16 |
|
Amortization of purchased intangible assets |
|
0.11 |
|
|
0.09 |
|
Stock-based compensation |
|
0.06 |
|
|
0.06 |
|
Acquisition- and disposition-related expenses |
|
0.05 |
|
|
0.02 |
|
Strategic initiative and financial restructuring-related expenses |
|
0.01 |
|
|
0.01 |
|
Equity in net loss (income) of unconsolidated affiliates |
|
0.01 |
|
|
(0.07 |
) |
Other reconciling items, net |
|
— |
|
|
0.01 |
|
Impact of corporation taxes |
|
(0.20 |
) |
|
(0.17 |
) |
Adjusted EPS |
$ |
0.54 |
|
$ |
0.47 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20231107029928/en/
Investor contact:
Ben Krasinski
Senior Director, Investor Relations
704.816.5644
ben_krasinski@premierinc.com
Media contact:
Amanda Forster
Vice President, Public Relations
202.879.8004
amanda_forster@premierinc.com
Source: Premier, Inc.
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