Premier(PINC)2025-02-04 22:08Financial Performance - Net revenue for the three months ended December 31, 2024, was $240.3 million, a decrease of 14.1% compared to $279.9 million for the same period in 2023[19]. - Gross profit for the six months ended December 31, 2024, was $351.6 million, down 16.0% from $418.8 million in the prior year[19]. - The company reported a net loss of $85.2 million for the three months ended December 31, 2024, compared to a net income of $52.9 million in the same period of 2023[19]. - Total net revenue for the three months ended December 31, 2024, was $240.3 million, a decrease of 14.1% from $279.9 million in 2023; for the six months, revenue was $488.4 million, down 11% from $548.9 million[113]. - Non-GAAP Adjusted EBITDA for the three months ended December 31, 2024, was $50.1 million, down from $96.4 million in 2023; for the six months, it decreased from $189.7 million to $112.5 million[118]. Assets and Liabilities - Total assets decreased from $3,401,449 thousand as of June 30, 2024, to $3,142,375 thousand as of December 31, 2024, representing a decline of approximately 7.6%[17]. - Total liabilities decreased slightly from $1,439,218 thousand to $1,424,484 thousand, a decrease of about 1.0%[17]. - Stockholders' equity decreased from $1,962,231 thousand to $1,717,891 thousand, a decline of approximately 12.4%[17]. - Cash and cash equivalents decreased from $125,146 thousand to $85,850 thousand, a reduction of about 31.5%[17]. - The net carrying value of intangible assets decreased from $269.3 million as of June 30, 2024, to $250.1 million as of December 31, 2024[68]. Revenue and Expenses - Operating expenses increased significantly to $264.0 million for the three months ended December 31, 2024, compared to $151.0 million in the same period of 2023, representing a 74.3% increase[19]. - The company reported a significant increase in selling, general, and administrative expenses, which rose to $253.8 million for the three months ended December 31, 2024, compared to $137.7 million in the same period of 2023[19]. - Research and development expenses were relatively stable, totaling $726,000 for the three months ended December 31, 2024, compared to $928,000 in the same period of 2023[19]. - Stock-based compensation expense for the six months ended December 31, 2024, was $9,519 thousand, down from $15,070 thousand in 2023[26]. - Stock-based compensation expense for the three months ended December 31, 2024, was $2.6 million, down from $8.4 million in the same period of 2023[94]. Cash Flow and Financing - The company reported a net cash provided by operating activities of $179,315 thousand for the six months ended December 31, 2024, compared to $35,380 thousand in 2023[26]. - The Company had $100.0 million in outstanding borrowings under the Credit Facility at December 31, 2024, with a weighted average interest rate of 5.938%[73]. - The Company repurchased Class A common stock totaling $189,754 thousand during the financing activities[26]. - The Company announced a share repurchase authorization of up to $1.0 billion, with an initial agreement to repurchase $400.0 million of its Common Stock[84]. - During the quarter ended December 31, 2024, the Company repurchased 6.3 million shares at an average price of $21.35 per share, totaling $134.1 million[86]. Discontinued Operations - The company incurred a loss on disposal of its direct sourcing subsidiary, S2S Global, amounting to $51.7 million, recorded within net income from discontinued operations[31]. - The net revenue from discontinued operations for the three months ended December 31, 2024, was $0, compared to $54.874 million for the same period in 2023[40]. - The company reported a net loss from discontinued operations, net of tax, attributable to stockholders of $39.389 million for the three months ended December 31, 2024[40]. - The company recognized a gross profit of $7.402 million from discontinued operations for the three months ended December 31, 2024[40]. - The company recorded a loss on disposal of S2S Global amounting to $51.7 million during the three months ended December 31, 2024[39]. Future Outlook and Strategy - The company is focusing on maintaining and adding new GPO members, which is critical for revenue generation from administrative fees[11]. - Future growth may be impacted by competition and the consolidation in the healthcare industry, which could limit market share expansion[11]. - The company is exploring new product offerings and the integration of artificial intelligence to enhance service delivery and operational efficiency[11]. - The estimated amortization expense for the next five fiscal years totals $250.1 million, with $19.0 million estimated for fiscal year 2025[70]. - The Company sold its non-healthcare GPO member agreements to OMNIA for a total purchase price of $723.8 million, all of which has been received as of December 31, 2024[78]. Taxation - Income tax benefit for the three months ended December 31, 2024, was $18.0 million, compared to an expense of $18.3 million for the same period in 2023, reflecting effective tax rates of 28% and 27% respectively[13]. - For the six months ended December 31, 2024, income tax expense was $4.7 million, significantly lower than $32.1 million for the same period in 2023, with effective tax rates of 15% and 26% respectively[104]. Risk Management - The company does not expect changes in interest rates to have a material impact on its results of operations or financial position[261]. - The company plans to mitigate default, market, and investment risks by investing in low-risk securities[261]. - The company does not hold any material derivative financial instruments[261]. - The company is not currently involved in any material litigation, but may face regulatory inquiries or investigations that could adversely affect its business[109].