Premier(PINC)2025-02-05 12:01Financial Performance - Total net revenue for Q2 FY2025 was $240.3 million, a decrease of 14% from $279.9 million in Q2 FY2024[9] - GAAP net loss from continuing operations was $45.8 million, a decline of 191% compared to a net income of $50.4 million in the prior-year period, primarily due to a $126.8 million impairment charge[10] - Adjusted EBITDA for Q2 FY2025 was $50.1 million, down 48% from $96.4 million in Q2 FY2024, mainly due to lower net administrative fees revenue[12] - Supply Chain Services segment net revenue decreased 11% to $148.7 million from $166.2 million in the prior-year period[14] - Performance Services segment net revenue fell 19% to $91.5 million from $113.6 million in the prior-year period, driven by lower demand in consulting[18] - Adjusted earnings per share (EPS) was $0.25, a decrease of 51% from $0.51 in the prior-year period[13] - 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[52] - 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[52] - Operating loss for the three months ended December 31, 2024, was $(92.8) million, compared to an operating income of $62.9 million for the same period in 2023[52] - Net loss attributable to stockholders for the three months ended December 31, 2024, was $(96.0) million, compared to a net income of $54.3 million in the same period last year[52] - The company reported a basic loss per share attributable to stockholders of $(1.01) for the three months ended December 31, 2024, compared to earnings of $0.45 in the same period last year[52] Cash Flow and Liquidity - Net cash provided by operating activities from continuing operations was $193.7 million for the first six months of FY2025, significantly up from $15.5 million in the prior-year period[20] - Cash and cash equivalents as of December 31, 2024, were $85.9 million, down from $125.1 million as of June 30, 2024[19] - Free cash flow for the six months ended December 31, 2024, was $73.9 million, an increase from $40.7 million in the prior-year period[22] - Cash and cash equivalents at the end of the period decreased to $85.850 million in 2024 from $371.110 million in 2023, a decline of 76.9%[56] - The net cash used in financing activities was $(178.689) million in 2024, a significant decrease from the net cash provided of $294.982 million in 2023[56] Shareholder Returns - The company repurchased a total of 19.9 million shares of Common Stock for $400.0 million under an accelerated share repurchase transaction[23] - As of December 31, 2024, the company had repurchased an additional 9.2 million shares for $192.1 million in market transactions[24] - Aggregate dividends paid to holders of Common Stock during the first half of fiscal 2025 amounted to $42.4 million[25] - The Board declared a quarterly cash dividend of $0.21 per share, payable on March 15, 2025[25] Business Strategy and Outlook - The company reaffirmed guidance midpoints for total net revenue excluding Contigo Health at $940 million to $1.01 billion for FY2025[7] - The midpoint of adjusted EPS guidance was increased by $0.08 to a range of $1.26 to $1.34 for FY2025[7] - The company plans to divest a majority interest in the Contigo Health business, with ongoing contributions included in current financial results[45] - The company expects that the Contigo Health business will be moved into discontinued operations in fiscal 2025, impacting future financial guidance[48] - The company anticipates continued challenges in revenue growth and profitability due to market conditions and operational adjustments[51] Non-GAAP Measures - Adjusted EBITDA and free cash flow are used as indicators of operational strength and performance, excluding certain non-recurring and non-cash items[33] - The company’s non-GAAP financial measures are intended to provide a more complete understanding of factors and trends affecting its business[29] - Adjusted EBITDA for the six months ended December 31, 2024, was $112.518 million, down from $189.727 million in 2023, a decrease of 40.6%[62] - Adjusted net income for the three months ended December 31, 2024, was $23.8 million, compared to $60.7 million for the same period in 2023, representing a decline of 60.7%[64] - Adjusted earnings per share excluding Contigo Health for the three months ended December 31, 2024, was $0.27, down from $0.53 in the same period of 2023[67] - The company reported an adjusted EBITDA excluding Contigo Health of $116.7 million for the six months ended December 31, 2024, compared to $193.8 million in the same period of 2023, reflecting a decline of 39.8%[67]