Premier(PINC)2024-08-21 20:01Financial Performance - For the fiscal year 2024, Premier, Inc. reported a GAAP net revenue of $1,346.4 million, reflecting a 1% increase from $1,336.1 million in the prior year[14]. - The fourth-quarter GAAP net revenue was $350.3 million, up 3% from $340.4 million in the prior-year period[8]. - Net income for the fourth quarter was $60.6 million, a significant increase of 221% from $18.9 million in the prior-year period[9]. - Adjusted EBITDA for the fourth quarter decreased by 9% to $118.7 million from $131.1 million in the prior-year period[10]. - Adjusted EPS for the fourth quarter was $0.69, a 3% increase from $0.67 in the prior-year period[10]. - Adjusted net income decreased 6% to $270.4 million from $288.1 million in the prior year, impacted by the decrease in adjusted EBITDA and an increase in the effective income tax rate[15]. - Net income for the year ended June 30, 2024, was $106,719, a decrease of 39% compared to $174,887 for the year ended June 30, 2023[36]. - Adjusted EBITDA for the year ended June 30, 2024, was $445,842, a decrease of 8% compared to $483,715 for the year ended June 30, 2023[39]. - The company reported a diluted earnings per share of $0.57 for the three months ended June 30, 2024, compared to $0.18 in the same period of 2023, indicating improved profitability[34]. Revenue Segments - The Supply Chain Services segment net revenue was $230.0 million, a 1% increase from $228.1 million in the prior-year period[11]. - Performance Services segment net revenue increased by 7% to $120.4 million from $112.3 million in the prior-year period[13]. - Supply Chain Services segment net revenue decreased 2% to $886.3 million from $900.0 million year-over-year, while Performance Services segment net revenue increased 6% to $460.3 million from $436.2 million[16]. Cash Flow and Liquidity - Net cash provided by operating activities decreased to $296.6 million from $444.5 million in the prior year, primarily due to $162.3 million in tax payments related to the sale of non-healthcare GPO operations[17]. - Free cash flow for the year ended June 30, 2024, was $115.7 million, down from $264.4 million in the prior year, mainly due to the same factors impacting operating cash flow[19]. - Cash and cash equivalents increased to $125.1 million as of June 30, 2024, compared to $89.8 million as of June 30, 2023[18]. - Total current liabilities decreased to $746,563,000 as of June 30, 2024, from $815,463,000 in the prior year, indicating improved liquidity[35]. - Cash and cash equivalents increased to $125,146,000 as of June 30, 2024, compared to $89,793,000 in the same period of 2023, showing enhanced cash position[35]. Shareholder Returns and Repurchases - The company plans to execute an additional $200 million share repurchase under its $1 billion authorization[2]. - The company paid aggregate dividends of $95.2 million to holders of its Class A common stock during the year ended June 30, 2024[19]. - The company repurchased $400,000 of Class A common stock during the year ended June 30, 2024[36]. Guidance and Future Outlook - The company expects total net revenue for fiscal 2025 to be between $930 million and $1.02 billion, excluding contributions from Contigo Health and S2S Global[7]. - The guidance for fiscal 2025 includes an expected adjusted EBITDA range of $235 million to $255 million[7]. - Forward-looking guidance excludes financial contributions from divested businesses, including Contigo Health and S2S Global, and will be updated to reflect the sale of the non-healthcare GPO in fiscal 2025[32]. Expenses and Liabilities - Research and development expenses for the three months ended June 30, 2024, were $663,000, down from $1,564,000 in the same period of 2023, reflecting a focus on cost management[34]. - The company incurred acquisition- and disposition-related expenses of $4,117,000 for the three months ended June 30, 2024, compared to $5,559,000 in 2023, reflecting a decrease of 25.9%[40]. - The company reported an impairment of assets totaling $140,053 for the year ended June 30, 2024, compared to $56,718 in the previous year[39]. - The company’s total liabilities increased to $1,439,218,000 as of June 30, 2024, from $1,037,132,000 in the prior year, suggesting a rise in financial obligations[35].