Premier, Inc. Reports Fiscal-Year 2025 First-Quarter Results
On
"I am pleased to report that our first quarter results slightly exceeded our expectations for revenue and profitability," said
Consolidated Financial Highlights of Continuing Operations |
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|
Three Months Ended |
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(in thousands, except per share data) |
2024 |
2023 |
% Change |
|||||
Net revenue: |
|
|
|
|||||
Supply Chain Services: |
|
|
|
|||||
Net administrative fees |
$ |
132,625 |
$ |
149,886 |
(12 |
%) |
||
Software licenses, other services and support |
|
18,763 |
|
|
13,390 |
|
40 |
% |
Total Supply Chain Services |
|
151,388 |
|
|
163,276 |
|
(7 |
%) |
Performance Services |
|
96,754 |
|
|
105,750 |
|
(9 |
%) |
Net revenue |
$ |
248,142 |
|
$ |
269,026 |
|
(8 |
%) |
|
|
|
|
|||||
Net income from continuing operations |
$ |
72,940 |
|
$ |
41,769 |
|
75 |
% |
Net income from continuing operations attributable to stockholders |
$ |
72,388 |
|
$ |
44,120 |
|
64 |
% |
|
|
|
|
|||||
Diluted earnings per share from continuing operations attributable to stockholders |
$ |
0.72 |
|
$ |
0.37 |
|
95 |
% |
Consolidated Non-GAAP Financial Highlights of Continuing Operations |
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|
||||||
|
Three Months Ended |
|||||||
(in thousands, except per share data) |
2024 |
2023 |
% Change |
|||||
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|
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NON-GAAP FINANCIAL MEASURES*: |
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|
|||||
Adjusted EBITDA: |
|
|
|
|||||
Supply Chain Services |
$ |
77,511 |
|
$ |
101,387 |
|
(24 |
%) |
Performance Services |
|
14,949 |
|
|
22,930 |
|
(35 |
%) |
Total segment adjusted EBITDA |
|
92,460 |
|
|
124,317 |
|
(26 |
%) |
Corporate |
|
(30,032 |
) |
|
(31,009 |
) |
3 |
% |
Adjusted EBITDA |
$ |
62,428 |
|
$ |
93,308 |
|
(33 |
%) |
Adjusted net income |
$ |
34,739 |
|
$ |
56,165 |
|
(38 |
%) |
Adjusted earnings per share (EPS) |
$ |
0.34 |
|
$ |
0.47 |
|
(28 |
%) |
|
|
|
|
|||||
* Refer to " |
Fiscal 2025 Guidance
Certain statements in this release, including without limitation, those in this section, are forward-looking statements. For additional information regarding the use and limitations of such statements, refer to "Cautionary Note Regarding Forward-Looking Statements" below.
Based on results for the first quarter of fiscal 2025 and its current outlook for the remainder of the fiscal year, the company is reaffirming the following:
Guidance Metric |
Fiscal 2025 |
Segment Net Revenue: |
|
Supply Chain Services |
|
|
|
|
|
Adjusted EBITDA |
|
Adjusted EPS |
|
Fiscal 2025 guidance is based on the realization of the following key assumptions:
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|
[1] Adjusted EBITDA, adjusted EPS and free cash flow presented in this financial guidance are forward-looking non-GAAP measures. Refer to " |
|
[2] As a result of the company's previously announced plan to divest a majority interest in the |
Results of Operations for the Three Months Ended
(As compared with the three months ended
GAAP net revenue of
GAAP net income from continuing operations of
GAAP diluted EPS from continuing operations of
Adjusted EBITDA of
Adjusted net income of
Segment Results
(For the fiscal first quarter of 2025 as compared with the fiscal first quarter of 2024)
Commencing in fiscal 2025, the company is reporting the Remitra business as part of the Supply Chain Services segment. On
Supply Chain Services
Supply Chain Services segment net revenue of
Net administrative fees revenue of
Software license, other services and support 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 from continuing operations ("operating cash flow") for the three months ended
Net cash used in investing activities for the three months ended
Free cash flow for the three months ended
Return of Capital to Stockholders
In
On
During the first quarter of fiscal 2025, the company paid aggregate dividends of
Conference Call and Webcast
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
Domestic participant dial-in number (toll-free): |
(833) 953-2438 |
International participant dial-in number: |
(412) 317-5767 |
About
Premier’s Use and Definition of Non-GAAP Measures
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 earnings elements attributable to the company's asset base (primarily depreciation and amortization), certain items outside the control of management, e.g., taxes, other non-cash items (such as impairment of intangible assets, purchase accounting adjustments and stock-based compensation), non-recurring items (such as strategic initiative and financial restructuring-related expenses) and income and expense that have been classified as discontinued operations, from operating results.
Management believes adjusted net income and adjusted earnings per share assist the company's board of directors, management and investors in comparing our net income and earnings per share on a consistent basis from period to period because these measures remove non-cash items (such as impairment of intangible assets, purchase accounting adjustments and stock-based compensation) and non-recurring items (such as strategic initiative and financial restructuring-related expenses), and eliminate the variability of non-controlling interest and equity in net income of unconsolidated affiliates.
Management believes free cash flow is an important measure because it represents the cash that the company generates after payments to certain former limited partners that elected to execute a Unit Exchange and Tax Receivable Agreement (“Unit Exchange Agreement") in connection with our
Also, adjusted EBITDA and free cash flow are supplemental financial measures used by the company and by external users of our financial statements and are considered to be indicators of the operational strength and performance of our business. Adjusted EBITDA and free cash flow measures allow us to assess our performance without regard to financing methods and capital structure and without the impact of other matters that we do not consider indicative of the operating performance of our business. More specifically, segment adjusted EBITDA is the primary earnings measure we use to evaluate the performance of our business segments.
Non-recurring items are 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 acquisition- and disposition-related expenses, strategic initiative- and financial restructuring-related expenses, loss on disposal of long-live assets, income and expense that has been classified as discontinued operations and other expense.
Non-cash items include stock-based compensation expense and asset impairments.
Non-operating items include gains or losses on the disposal of assets, interest and investment income or expense, equity in income of unconsolidated affiliates and operating income from revenues sold to OMNIA in connection with the sale of non-healthcare GPO member contracts, less royalty payments retained.
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 and operating income from revenues sold to OMNIA in connection with the sale of non-healthcare GPO member contracts, less royalty payments retained.
Adjusted net income is defined as net income attributable to
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 (i) early termination payments to certain former limited partners that elected to execute a Unit Exchange Agreement in connection with our
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, Adjusted Net Income and Free Cash Flow from the definitions reported in the 2024 Annual Report. Adjusted EBITDA and Segment Adjusted EBITDA definitions were revised to exclude operating income from revenues sold to OMNIA in connection with the sale of non-healthcare GPO member contracts, less royalty payments retained. The Adjusted Net Income definition was revised to exclude operating income from revenues sold to OMNIA in connection with the sale of non-healthcare GPO member contracts, less royalty payments retained, imputed interest expense and associated income tax expense. Free Cash Flow was revised to exclude the cash payments to OMNIA for the sale of future revenues and tax payments on proceeds received from the sale of future revenues. For comparability purposes, prior year non-GAAP financial measures are presented based on the current definitions in the above section.
In addition to the foregoing, the reconciliations of our non-GAAP financial measures included at the end of this release include the presentation of additional fiscal year 2025 non-GAAP financial measures including net revenue excluding
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-Q for the quarter ended
The company does not meaningfully reconcile guidance for non-GAAP adjusted EBITDA and non-GAAP adjusted earnings per share to net income attributable to stockholders or earnings per share attributable to stockholders because the company cannot provide guidance for the more significant reconciling items between net income attributable to stockholders and adjusted EBITDA and between earnings per share attributable to stockholders and non-GAAP adjusted earnings per share without unreasonable effort. This is due to the fact that future period non-GAAP guidance includes adjustments for items not indicative of our core operations, which may include, without limitation, items included in the supplemental financial information for reconciliation of reported GAAP results to non-GAAP results. Such items include, but are not limited to, strategic and acquisition related expenses for professional fees; mark to market adjustments for put options and contingent liabilities; gains and losses on stock-based performance shares; adjustments to its income tax provision (such as valuation allowance adjustments and settlements of income tax claims); items related to corporate and facility restructurings; and certain other items the company believes to be non-indicative of its ongoing operations. Such adjustments may be affected by changes in ongoing assumptions, judgements, as well as nonrecurring, unusual or unanticipated charges, expenses or gains/losses or other items that may not directly correlate to the underlying performance of our business operations. The exact amount of these adjustments is not currently determinable but may be significant.
As noted above, as result of the company's previously announced plan to divest a majority interest in the
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, transform and improve healthcare, our ability to find a partner for our
Condensed Consolidated Statements of Income |
||||||
(Unaudited) |
||||||
(In thousands, except per share data) |
||||||
|
|
|
||||
|
Three Months Ended |
|||||
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|
|||||
|
2024 |
2023 |
||||
Net revenue: |
|
|
||||
Net administrative fees |
$ |
132,625 |
|
$ |
149,886 |
|
Software licenses, other services and support |
|
115,517 |
|
|
119,140 |
|
Net revenue |
|
248,142 |
|
|
269,026 |
|
Cost of revenue: |
|
|
||||
Services and software licenses |
|
67,724 |
|
|
64,132 |
|
Cost of revenue |
|
67,724 |
|
|
64,132 |
|
Gross profit |
|
180,418 |
|
|
204,894 |
|
Operating expenses: |
|
|
||||
Selling, general and administrative |
|
134,880 |
|
|
133,138 |
|
Research and development |
|
586 |
|
|
863 |
|
Amortization of purchased intangible assets |
|
9,637 |
|
|
12,553 |
|
Operating expenses |
|
145,103 |
|
|
146,554 |
|
Operating income |
|
35,315 |
|
|
58,340 |
|
Equity in net income (loss) of unconsolidated affiliates |
|
1,833 |
|
|
(1,726 |
) |
Interest expense, net |
|
(1,756 |
) |
|
(22 |
) |
Other income (expense), net |
|
60,259 |
|
|
(1,092 |
) |
Other income (expense), net |
|
60,336 |
|
|
(2,840 |
) |
Income before income taxes |
|
95,651 |
|
|
55,500 |
|
Income tax expense |
|
22,711 |
|
|
13,731 |
|
Net income from continuing operations |
|
72,940 |
|
|
41,769 |
|
Net (loss) income from discontinued operations, net of tax |
|
(1,604 |
) |
|
641 |
|
Net income |
|
71,336 |
|
|
42,410 |
|
Net (income) loss from continuing operations attributable to non-controlling interest |
|
(552 |
) |
|
2,351 |
|
Net income attributable to stockholders |
$ |
70,784 |
|
$ |
44,761 |
|
|
|
|
||||
Calculation of GAAP Earnings per Share |
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|
||||
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|
||||
Numerator for basic and diluted earnings per share: |
|
|
||||
Net income from continuing operations attributable to stockholders |
$ |
72,388 |
|
$ |
44,120 |
|
Net (loss) income from discontinued operations attributable to stockholders |
|
(1,604 |
) |
|
641 |
|
Net income attributable to stockholders |
$ |
70,784 |
|
$ |
44,761 |
|
|
|
|
||||
Denominator for earnings per share: |
|
|
||||
Basic weighted average shares outstanding |
|
100,380 |
|
|
119,344 |
|
Effect of dilutive securities: |
|
|
||||
Restricted stock units |
|
611 |
|
|
534 |
|
Performance share awards |
|
— |
|
|
255 |
|
Diluted weighted average shares |
|
100,991 |
|
|
120,133 |
|
|
|
|
||||
Earnings per share attributable to stockholders: |
|
|
||||
Basic earnings per share from continuing operations |
$ |
0.72 |
|
$ |
0.37 |
|
Basic (loss) earnings per share from discontinued operations |
|
(0.01 |
) |
|
0.01 |
|
Basic earnings per share attributable to stockholders |
$ |
0.71 |
|
$ |
0.38 |
|
|
|
|
||||
Diluted earnings per share from continuing operations |
$ |
0.72 |
|
$ |
0.37 |
|
Diluted loss per share from discontinued operations |
|
(0.02 |
) |
|
— |
|
Diluted earnings per share attributable to stockholders |
$ |
0.70 |
|
$ |
0.37 |
|
Condensed Consolidated Balance Sheets |
||||||
(Unaudited) |
||||||
(In thousands, except share data) |
||||||
|
|
|
||||
|
|
|
||||
Assets |
|
|
||||
Cash and cash equivalents |
$ |
86,956 |
$ |
125,146 |
||
Accounts receivable (net of |
|
98,749 |
|
|
100,965 |
|
Contract assets (net of |
|
341,016 |
|
|
335,831 |
|
Prepaid expenses and other current assets |
|
76,022 |
|
|
73,653 |
|
Current assets of discontinued operations |
|
104,893 |
|
|
116,462 |
|
Total current assets |
|
707,636 |
|
|
752,057 |
|
Property and equipment (net of |
|
203,957 |
|
|
205,711 |
|
Intangible assets (net of |
|
259,622 |
|
|
269,259 |
|
|
|
995,852 |
|
|
995,852 |
|
Deferred income tax assets |
|
748,048 |
|
|
776,202 |
|
Deferred compensation plan assets |
|
47,380 |
|
|
54,422 |
|
Investments in unconsolidated affiliates |
|
230,395 |
|
|
228,562 |
|
Operating lease right-of-use assets |
|
17,845 |
|
|
20,635 |
|
Other assets |
|
102,863 |
|
|
98,749 |
|
Total assets |
$ |
3,313,598 |
|
$ |
3,401,449 |
|
|
|
|
||||
Liabilities and stockholders' equity |
|
|||||
Accounts payable |
$ |
24,655 |
|
$ |
22,610 |
|
Accrued expenses |
|
47,408 |
|
|
58,482 |
|
Revenue share obligations |
|
318,910 |
|
|
292,792 |
|
Accrued compensation and benefits |
|
45,072 |
|
|
100,395 |
|
Deferred revenue |
|
17,901 |
|
|
19,642 |
|
Line of credit and current portion of long-term debt |
|
— |
|
|
1,008 |
|
Current portion of notes payable to former limited partners |
|
76,317 |
|
|
101,523 |
|
Current portion of liability related to the sale of future revenues |
|
41,331 |
|
|
51,798 |
|
Other current liabilities |
|
56,791 |
|
|
52,589 |
|
Current liabilities of discontinued operations |
|
20,163 |
|
|
45,724 |
|
Total current liabilities |
|
648,548 |
|
|
746,563 |
|
Liability related to the sale of future revenues, less current portion |
|
631,266 |
|
|
599,423 |
|
Deferred compensation plan obligations |
|
47,380 |
|
|
54,422 |
|
Operating lease liabilities, less current portion |
|
8,067 |
|
|
11,170 |
|
Other liabilities |
|
24,154 |
|
|
27,640 |
|
Total liabilities |
|
1,359,415 |
|
|
1,439,218 |
|
|
|
|
||||
Commitments and contingencies |
|
|
||||
Stockholders' equity: |
|
|
||||
Class A common stock, |
|
978 |
|
|
1,115 |
|
|
|
— |
|
|
(250,129 |
) |
Additional paid-in capital |
|
2,188,208 |
|
|
2,105,684 |
|
(Accumulated deficit) retained earnings |
|
(234,995 |
) |
|
105,590 |
|
Accumulated other comprehensive loss |
|
(8 |
) |
|
(29 |
) |
Total stockholders' equity |
|
1,954,183 |
|
|
1,962,231 |
|
Total liabilities and stockholders' equity |
$ |
3,313,598 |
|
$ |
3,401,449 |
|
Condensed Consolidated Statements of Cash Flows |
||||||
(Unaudited) |
||||||
(In thousands) |
||||||
|
|
|
||||
|
Three Months Ended |
|||||
|
2024 |
2023 |
||||
Operating activities |
|
|
||||
Net income |
$ |
71,336 |
|
$ |
42,410 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
||||
Net loss (income) from discontinued operations, net of tax |
|
1,604 |
|
|
(641 |
) |
Depreciation and amortization |
|
29,288 |
|
|
32,881 |
|
Equity in net loss (income) of unconsolidated affiliates |
|
(1,833 |
) |
|
1,726 |
|
Deferred income taxes |
|
24,954 |
|
|
(143,435 |
) |
Stock-based compensation |
|
6,931 |
|
|
6,692 |
|
Other, net |
|
1,672 |
|
|
3,458 |
|
Changes in operating assets and liabilities, net of the effects of acquisitions: |
|
|
||||
Accounts receivable |
|
2,216 |
|
|
4,203 |
|
Contract assets |
|
(10,566 |
) |
|
(16,838 |
) |
Prepaid expenses and other assets |
|
8,730 |
|
|
10,241 |
|
Accounts payable |
|
397 |
|
|
(6,023 |
) |
Revenue share obligations |
|
26,118 |
|
|
3,544 |
|
Accrued expenses, deferred revenue and other liabilities |
|
(80,804 |
) |
|
124,432 |
|
Net cash provided by operating activities from continuing operations |
|
80,043 |
|
|
62,650 |
|
Net cash (used in) provided by operating activities from discontinued operations |
|
(12,396 |
) |
|
19,226 |
|
Net cash provided by operating activities |
$ |
67,647 |
|
$ |
81,876 |
|
Investing activities |
|
|
||||
Purchases of property and equipment |
$ |
(17,718 |
) |
$ |
(21,270 |
) |
Net cash used in investing activities |
$ |
(17,718 |
) |
$ |
(21,270 |
) |
Financing activities |
|
|
||||
Payments on notes payable |
$ |
(26,214 |
) |
$ |
(25,823 |
) |
Payments on credit facility |
|
— |
|
|
(215,000 |
) |
Proceeds from sale of future revenues |
|
42,325 |
|
|
578,983 |
|
Payments on liability related to the sale of future revenues |
|
(20,949 |
) |
|
(4,322 |
) |
Cash dividends paid |
|
(21,323 |
) |
|
(25,827 |
) |
Repurchase of Class A common stock |
|
(56,440 |
) |
|
— |
|
Other, net |
|
(5,539 |
) |
|
(5,146 |
) |
Net cash used in financing activities |
$ |
(88,140 |
) |
$ |
302,865 |
|
Effect of exchange rate changes on cash flows |
|
21 |
|
|
(3 |
) |
Net increase in cash and cash equivalents |
|
(38,190 |
) |
|
363,468 |
|
Cash and cash equivalents at beginning of year |
|
125,146 |
|
|
89,793 |
|
Cash and cash equivalents at end of period |
$ |
86,956 |
|
$ |
453,261 |
|
Supplemental Financial Information |
||||||
Reconciliation of Net Cash Provided by Operating Activities from Continuing Operations to Free Cash Flow |
||||||
(Unaudited) |
||||||
(In thousands) |
||||||
|
|
|
||||
|
Three Months Ended
|
|||||
|
2024 |
2023 |
||||
Net cash provided by operating activities from continuing operations |
$ |
80,043 |
|
$ |
62,650 |
|
Early termination payments to certain former limited partners that elected to execute a Unit Exchange Agreement (a) |
|
(25,206 |
) |
|
(24,742 |
) |
Purchases of property and equipment |
|
(17,718 |
) |
|
(21,270 |
) |
Cash payments to OMNIA for the sale of future revenues (b) |
|
(20,949 |
) |
|
(4,322 |
) |
Free Cash Flow |
$ |
16,170 |
|
$ |
12,316 |
|
_________________________________ |
|
(a) |
Early termination payments to certain former limited partners that elected to execute a Unit Exchange Agreement in connection with |
(b) |
Cash payments to OMNIA for the sale of future revenues in connection with our sale of non-healthcare contracts to OMNIA are presented in the Consolidated Statements of Cash Flows under "Payments on liability related to the sale of future revenues." During the three months ended |
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 |
|||||
|
|
|||||
|
2024 |
2023 |
||||
Net income from continuing operations |
$ |
72,940 |
|
$ |
41,769 |
|
Interest expense, net |
|
1,756 |
|
|
22 |
|
Income tax expense |
|
22,711 |
|
|
13,731 |
|
Depreciation and amortization |
|
19,651 |
|
|
20,328 |
|
Amortization of purchased intangible assets |
|
9,637 |
|
|
12,553 |
|
EBITDA |
|
126,695 |
|
|
88,403 |
|
Stock-based compensation |
|
7,140 |
|
|
6,893 |
|
Acquisition- and disposition-related expenses |
|
2,884 |
|
|
6,205 |
|
Strategic initiative and financial restructuring-related expenses |
|
110 |
|
|
1,746 |
|
Operating income from revenues sold to OMNIA |
|
(15,710 |
) |
|
(11,666 |
) |
Equity in net (income) loss of unconsolidated affiliates |
|
(1,833 |
) |
|
1,726 |
|
Other non-operating gain |
|
(57,244 |
) |
|
— |
|
Other reconciling items, net |
|
386 |
|
|
1 |
|
Adjusted EBITDA |
$ |
62,428 |
|
$ |
93,308 |
|
Less: |
|
2,227 |
|
|
||
Adjusted EBITDA excluding |
$ |
64,655 |
|
|
||
|
|
|
||||
Income before income taxes |
$ |
95,651 |
|
$ |
55,500 |
|
Equity in net (income) loss of unconsolidated affiliates |
|
(1,833 |
) |
|
1,726 |
|
Interest expense, net |
|
1,756 |
|
|
22 |
|
Other (income) expense, net |
|
(60,259 |
) |
|
1,092 |
|
Operating income |
|
35,315 |
|
|
58,340 |
|
Depreciation and amortization |
|
19,651 |
|
|
20,328 |
|
Amortization of purchased intangible assets |
|
9,637 |
|
|
12,553 |
|
Stock-based compensation |
|
7,140 |
|
|
6,893 |
|
Acquisition- and disposition-related expenses |
|
2,884 |
|
|
6,205 |
|
Strategic initiative and financial restructuring-related expenses |
|
110 |
|
|
1,746 |
|
Operating income from revenues sold to OMNIA |
|
(15,710 |
) |
|
(11,666 |
) |
Deferred compensation plan expense (income) |
|
2,692 |
|
|
(1,125 |
) |
Other reconciling items, net |
|
709 |
|
|
34 |
|
Adjusted EBITDA |
$ |
62,428 |
|
$ |
93,308 |
|
|
|
|
||||
SEGMENT ADJUSTED EBITDA |
|
|
||||
Supply Chain Services |
$ |
77,511 |
|
$ |
101,387 |
|
Performance Services |
|
14,949 |
|
|
22,930 |
|
Corporate |
|
(30,032 |
) |
|
(31,009 |
) |
Adjusted EBITDA |
$ |
62,428 |
|
$ |
93,308 |
|
|
|
|
||||
Net income attributable to stockholders |
$ |
70,784 |
|
$ |
44,761 |
|
Loss (income) from discontinued operations, net of tax |
|
1,604 |
|
|
(641 |
) |
Income tax expense |
|
22,711 |
|
|
13,731 |
|
Amortization of purchased intangible assets |
|
9,637 |
|
|
12,553 |
|
Stock-based compensation |
|
7,140 |
|
|
6,893 |
|
Acquisition- and disposition-related expenses |
|
2,884 |
|
|
6,205 |
|
Strategic initiative and financial restructuring-related expenses |
|
110 |
|
|
1,746 |
|
Operating income from revenues sold to OMNIA |
|
(15,710 |
) |
|
(11,666 |
) |
Equity in net (income) loss of unconsolidated affiliates |
|
(1,833 |
) |
|
1,726 |
|
Other non-operating gain |
|
(57,244 |
) |
|
— |
|
Other reconciling items, net |
|
6,236 |
|
|
1,630 |
|
Adjusted income before income taxes |
|
46,319 |
|
|
76,938 |
|
Income tax expense on adjusted income before income taxes |
|
11,580 |
|
|
20,773 |
|
Adjusted net income |
$ |
34,739 |
|
$ |
56,165 |
|
Supplemental Financial Information |
||||||
Reconciliation of GAAP EPS to Adjusted EPS |
||||||
(Unaudited) |
||||||
(In thousands, except per share data) |
||||||
|
|
|
||||
|
Three Months Ended |
|||||
|
|
|||||
|
2024 |
2023 |
||||
|
|
|
||||
Net income attributable to stockholders |
$ |
70,784 |
|
$ |
44,761 |
|
Loss (income) from discontinued operations, net of tax |
|
1,604 |
|
|
(641 |
) |
Income tax expense |
|
22,711 |
|
|
13,731 |
|
Amortization of purchased intangible assets |
|
9,637 |
|
|
12,553 |
|
Stock-based compensation |
|
7,140 |
|
|
6,893 |
|
Acquisition- and disposition-related expenses |
|
2,884 |
|
|
6,205 |
|
Strategic initiative and financial restructuring-related expenses |
|
110 |
|
|
1,746 |
|
Operating income from revenues sold to OMNIA |
|
(15,710 |
) |
|
(11,666 |
) |
Equity in net (income) loss of unconsolidated affiliates |
|
(1,833 |
) |
|
1,726 |
|
Other non-operating gain |
|
(57,244 |
) |
|
— |
|
Other reconciling items, net |
|
6,236 |
|
|
1,630 |
|
Adjusted income before income taxes |
|
46,319 |
|
|
76,938 |
|
Income tax expense on adjusted income before income taxes |
|
11,580 |
|
|
20,773 |
|
Adjusted net income |
$ |
34,739 |
|
$ |
56,165 |
|
|
|
|
||||
Weighted average: |
|
|
||||
Basic weighted average shares outstanding |
|
100,380 |
|
|
119,344 |
|
Dilutive shares |
|
611 |
|
|
789 |
|
Weighted average shares outstanding - diluted |
|
100,991 |
|
|
120,133 |
|
|
|
|
||||
Basic earnings per share attributable to stockholders |
$ |
0.71 |
|
$ |
0.38 |
|
Loss (income) from discontinued operations, net of tax |
|
0.02 |
|
|
(0.01 |
) |
Income tax expense |
|
0.23 |
|
|
0.12 |
|
Amortization of purchased intangible assets |
|
0.10 |
|
|
0.11 |
|
Stock-based compensation |
|
0.07 |
|
|
0.06 |
|
Acquisition- and disposition-related expenses |
|
0.03 |
|
|
0.05 |
|
Strategic initiative and financial restructuring-related expenses |
|
— |
|
|
0.01 |
|
Operating income from revenues sold to OMNIA |
|
(0.16 |
) |
|
(0.10 |
) |
Equity in net (income) loss of unconsolidated affiliates |
|
(0.02 |
) |
|
0.01 |
|
Other non-operating gain |
|
(0.57 |
) |
|
— |
|
Other reconciling items, net |
|
0.05 |
|
|
0.01 |
|
Impact of corporation taxes |
|
(0.12 |
) |
|
(0.17 |
) |
Adjusted earnings per share |
$ |
0.34 |
|
$ |
0.47 |
|
Supplemental Financial Information |
|||
Fiscal 2025 First Quarter Walk to Align to Fiscal 2025 Guidance Presentation |
|||
(Unaudited) |
|||
(In thousands) |
|||
|
|
||
|
Three Months Ended
|
||
Net revenue |
$ |
248,142 |
|
Less: |
|
(7,646 |
) |
Net revenue excluding |
$ |
240,496 |
|
|
|
||
Adjusted EBITDA |
$ |
62,428 |
|
Less: |
|
2,227 |
|
Adjusted EBITDA excluding |
$ |
64,655 |
|
_________________________________ |
|
(a) |
Contigo Health Adjusted EBITDA for the fiscal 2025 first quarter was a loss and therefore added back to the total. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241105183119/en/
Investor contact:
Senior Director, Investor Relations
704.816.5644
ben_krasinski@premierinc.com
Media contact:
Vice President,
202.879.8004
amanda_forster@premierinc.com
Source: