Premier(US:PINC)2025-05-06 11:53Financial Performance - Net revenue for the three months ended March 31, 2025, was $261.4 million, a decrease of 8.9% from $286.9 million in the same period of 2024[19] - Gross profit for the nine months ended March 31, 2025, was $544.8 million, down 14.2% from $635.3 million in the prior year[19] - Operating income for the three months ended March 31, 2025, was $33.8 million, compared to an operating loss of $77.6 million in the same period of 2024[19] - Net income attributable to stockholders for the three months ended March 31, 2025, was $27.1 million, compared to a net loss of $40.2 million in the same period of 2024[19] - Basic earnings per share from continuing operations for the three months ended March 31, 2025, was $0.32, compared to a loss of $0.36 in the same period of 2024[19] - Comprehensive income attributable to stockholders for the three months ended March 31, 2025, was $27.1 million, compared to a comprehensive loss of $40.2 million in the same period of 2024[19] - Net income for the nine months ended March 31, 2025, was $12,952,000, a decrease from $46,114,000 in the same period of 2024[25] - For the nine months ended March 31, 2025, net revenue was $749.790 million, a decrease of 10.3% from $835.763 million in the same period of 2024[104] Assets and Liabilities - Total assets decreased from $3,401,449 thousand as of June 30, 2024, to $3,071,792 thousand as of March 31, 2025, representing a decline of approximately 9.7%[17] - Total current liabilities increased from $746,563 thousand to $880,707 thousand, an increase of approximately 17.9%[17] - Total stockholders' equity decreased from $1,962,231 thousand to $1,522,985 thousand, a decline of approximately 22.4%[17] - The company reported accrued excise taxes related to the repurchase of Class A common stock amounting to $4.1 million for the nine months ended March 31, 2025, compared to $3.0 million for the same period in 2024[34] - The total liabilities from discontinued operations were reported at $386,000 as of March 31, 2025, down from $45.7 million as of June 30, 2024[39] Cash Flow and Investments - Net cash provided by operating activities from continuing operations was $307,780,000, compared to $160,864,000 in the prior year[25] - The company reported a net cash decrease of $53,819,000 for the period, with cash and cash equivalents at the end of the period totaling $71,327,000[25] - The company’s total investments in unconsolidated affiliates increased to $270.8 million as of March 31, 2025, up from $228.6 million as of June 30, 2024[40] - The deferred compensation plan assets were valued at $58.0 million as of March 31, 2025, compared to $61.2 million as of June 30, 2024[46] Expenses and Costs - Total operating expenses for the three months ended March 31, 2025, were $159.4 million, a decrease of 45.7% from $294.1 million in the same period of 2024[19] - The company incurred interest expense of $5.4 million for the three months ended March 31, 2025, compared to $2.4 million in the same period of 2024[19] - Operating lease expense for the three months ended March 31, 2025, was $1.7 million, down from $2.4 million in the same period of 2024[95] Shareholder Actions - The Company repurchased Class A common stock totaling $400,192,000 during the period[25] - The Company repurchased approximately 19.9 million shares of Common Stock at an average price of $20.12 per share under the 2024 ASR Agreement[79] - The Company completed a $200.0 million share repurchase program, acquiring approximately 9.5 million shares at an average price of $21.00 per share[80] - The Company declared a quarterly cash dividend of $0.21 per share, payable by June 15, 2025[85] Strategic Initiatives - The company is focusing on integrating artificial intelligence into its product offerings, which may enhance service delivery and operational efficiency[10] - Future acquisition opportunities are being evaluated, with potential risks associated with integration and financial performance[10] - The company plans to mitigate investment risks by investing in low-risk securities, as it does not expect significant impacts from interest rate changes[259] Discontinued Operations - The company incurred a loss on disposal of its direct sourcing subsidiary, S2S Global, amounting to $52.6 million[30] - For the nine months ended March 31, 2025, the company recorded a loss on disposal of S2S Global amounting to $52.6 million, classified under net (loss) income from discontinued operations[38] - The net revenue from discontinued operations for the nine months ended March 31, 2025, was $50.5 million, compared to $160.3 million for the same period in 2024, reflecting a decrease of approximately 68.5%[39] Goodwill and Intangible Assets - A pre-tax goodwill impairment charge of $126.8 million was recorded during the second quarter of fiscal year 2025 related to the Informatics and Technology Services reporting unit[62] - As of March 31, 2025, the Company had accumulated impairment losses to goodwill at Performance Services of $197.7 million, inclusive of current and prior period impairment losses[64] - The net carrying value of intangible assets as of March 31, 2025, was $240.6 million, down from $269.3 million at June 30, 2024[65] Debt and Financing - The Company had total debt and notes payable of $280.6 million as of March 31, 2025, which included $255.0 million under the Credit Facility[66] - The Credit Facility allows for borrowings of up to $1.0 billion, with a maturity date of December 12, 2027, and an effective interest rate of 5.668% on outstanding borrowings[67][69] - The company had $255.0 million of outstanding borrowings under its Credit Facility as of March 31, 2025, with a potential interest expense fluctuation of $2.6 million for a 1% change in interest rates[258]