Premier Q1 2022 Earnings Report
Key Takeaways
Premier, Inc. reported a 5% increase in GAAP net revenue to $365.1 million for the fiscal year 2022 first quarter ended September 30, 2021. GAAP net income decreased 23% to $121.3 million, while GAAP diluted earnings per share (EPS) decreased 18% to $0.97. Adjusted EBITDA increased 10% to $121.7 million, and adjusted EPS increased 12% to $0.64.
GAAP net revenue increased 5% to $365.1 million.
Supply Chain Services segment revenue increased 9% to $276.8 million.
GAAP net income decreased 23% to $121.3 million.
Adjusted EBITDA increased 10% to $121.7 million.
Premier
Premier
Premier Revenue by Segment
Forward Guidance
Premier continues to expect total net revenue to be in the range of $1.32 billion to $1.43 billion and adjusted EBITDA to be in the range of $483 million to $500 million. The company is increasing its previous guidance range of $2.50 to $2.60 for adjusted EPS to a range of $2.56 to $2.66 as a result of its expectation that its effective tax rate will be approximately 21%.
Positive Outlook
- Total net revenue expected to be in the range of $1.32 billion to $1.43 billion.
- Adjusted EBITDA expected to be in the range of $483 million to $500 million.
- Adjusted EPS guidance increased to a range of $2.56 to $2.66.
- Effective tax rate expected to be approximately 21%.
- Supply Chain Services net revenue between $925 million and $1.01 billion.
Challenges Ahead
- Guidance does not include the impact of share repurchases under the previously authorized $250 million stock repurchase plan made after September 30, 2021
- Guidance does not include the effect of any potential future significant acquisitions
- Performance Services net revenue between $395 million and $420 million.
- Capital expenditures of $100 million to $110 million.
- Free cash flow of 35% to 50% of adjusted EBITDA
Revenue & Expenses
Visualization of income flow from segment revenue to net income