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Sep 30, 2021
Premier Q1 2022 Earnings Report
Premier reported first quarter results with revenue and profitability meeting expectations.
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
Revenue by Segment
Supply Chain Services Revenue
CapyFin.comPerformance Services Revenue
CapyFin.com 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