Premier(US:PINC)2024-02-06 21:12Financial Performance - Net revenue for the three months ended December 31, 2023, was $334.745 million, a decrease of 6.8% compared to $359.626 million in the same period of 2022[22]. - Gross profit for the six months ended December 31, 2023, was $431.865 million, down from $444.726 million in the prior year, reflecting a decrease of 2.9%[22]. - Operating income for the three months ended December 31, 2023, was $65.693 million, a decline of 25.4% from $88.166 million in the same quarter of 2022[22]. - Net income attributable to stockholders for the three months ended December 31, 2023, was $54.302 million, compared to $64.046 million in the same period of 2022, representing a decrease of 15.8%[22]. - Basic earnings per share for the three months ended December 31, 2023, was $0.45, down from $0.54 in the same quarter of 2022, a decrease of 16.7%[22]. - Net income for the six months ended December 31, 2023, was $95.276 million, a decrease of 11.5% compared to $107.333 million in 2022[26]. - Total segment net revenue for the six months ended December 31, 2023, was $653.622 million, down from $673.518 million in 2022, indicating a decrease of 3%[103]. Assets and Liabilities - Total assets increased to $3,832,528, up from $3,371,487 as of June 30, 2023, representing a growth of approximately 13.7%[20]. - Total current assets reached $990,257, compared to $641,626 at the end of June 2023, marking an increase of 54.3%[20]. - Total liabilities increased to $1,442,319 from $1,037,132, reflecting a rise of 38.9%[20]. - Stockholders' equity grew to $2,390,209, up from $2,334,355, which is an increase of 2.4%[20]. - Cash and cash equivalents rose significantly to $371,110 from $89,793, indicating a substantial increase of 314.5%[20]. - Cash equivalents increased significantly from $77,000 on June 30, 2023, to $147.6 million on December 31, 2023[48]. - The total assets rose from $55.6 million on June 30, 2023, to $202.8 million on December 31, 2023[48]. - The total debt and notes payable decreased to $152.60 million as of December 31, 2023, from $418.47 million as of June 30, 2023, indicating a reduction of approximately 63.6%[70]. Cash Flow - Net cash provided by operating activities decreased significantly to $35.380 million from $196.725 million, reflecting a decline of 82.0%[26]. - The company reported a net cash used in investing activities of $49.068 million, down from $227.466 million in the previous year[26]. - Net cash provided by financing activities increased to $294.982 million from $39.230 million, indicating a substantial rise[26]. - Cash and cash equivalents at the end of the period were $371.110 million, compared to $94.623 million at the end of the previous year[26]. Acquisitions and Impairments - The company recorded a pre-tax goodwill impairment charge of $54.4 million related to the Contigo Health reporting unit, including goodwill from the TRPN acquisition[40]. - The TRPN acquisition involved a purchase price of $177.5 million, funded through borrowings and cash on hand[38]. - The total fair value assigned to intangible assets acquired in the TRPN acquisition was $116.6 million, primarily related to the provider network[39]. - The company’s investments in unconsolidated affiliates showed a net loss of $2.392 million for the six months ended December 31, 2023[42]. Dividends and Share Repurchase - The company declared dividends of $0.21 per share during the reporting period[24]. - The company entered into an accelerated share repurchase agreement to repurchase $400,000,000 of its Class A common stock[113]. Expenses - Total operating expenses for the three months ended December 31, 2023, were $155.590 million, slightly up from $154.575 million in the same period of 2022[22]. - Stock-based compensation expense for the three months ended December 31, 2023, was $8.378 million, compared to $2.679 million for the same period in 2022, representing a 212% increase[89]. - Total stock-based compensation expense, net of tax, for the six months ended December 31, 2023, was $12.144 million, up from $7.808 million in 2022, reflecting a 55% increase[89]. Future Outlook and Risks - Future growth may be influenced by the ability to maintain strategic alliances and timely offer new products and services[11]. - The company faces risks related to competition and potential delays in revenue recognition due to extended sales cycles[11].