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Premier
🇺🇸 NASDAQ:PINC
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•
Dec 31, 2019

Premier Q2 2020 Earnings Report

Premier Inc. reported solid performance in the fiscal second quarter, driven by growth in the Supply Chain Services segment, which offset softness in the Performance Services segment.

Key Takeaways

Premier Inc. reported a 4% increase in GAAP net revenue to $319.6 million. GAAP net income was $91.6 million. Non-GAAP adjusted EBITDA increased 4% to $148.4 million, and non-GAAP adjusted fully distributed earnings per share increased 10% to $0.74.

GAAP net revenue increased 4% to $319.6 million year-over-year.

Supply Chain Services segment revenue increased 9% to $232.6 million year-over-year.

Performance Services segment revenue decreased 8% to $87.0 million year-over-year.

Non-GAAP adjusted fully distributed earnings per share increased 10% to $0.74 year-over-year.

Total Revenue
$320M
Previous year: $422M
-24.2%
EPS
$0.74
Previous year: $0.66
+12.1%
Adjusted EBITDA
$148M
Previous year: $143M
+3.8%
Gross Profit
$219M
Previous year: $223M
-1.7%
Cash and Equivalents
$112M
Previous year: $111M
+0.9%
Free Cash Flow
$97M
Previous year: $126M
-23.0%
Total Assets
$2.62B
Previous year: $2.64B
-1.1%

Premier

Premier

Premier Revenue by Segment

Forward Guidance

Premier Inc. updated its full-year fiscal 2020 financial guidance, anticipating growth in Supply Chain Services segment revenue and a decline in Performance Services segment revenue. Consolidated net revenue is expected to increase, and non-GAAP adjusted EBITDA and fully distributed EPS are affirmed.

Positive Outlook

  • Supply Chain Services segment revenue is expected to increase to a range of $895.0 million to $930.0 million, indicating anticipated year-over-year growth of 5% to 9%.
  • Net administrative fees and products revenue are projected to have stronger-than-previously-anticipated growth, with year-over-year growth at 2% to 6% percent and 11% to 15%, respectively.
  • Consolidated net revenue is expected to increase to a range of $1,235.0 billion to $1,284.0 billion, reflecting anticipated year-over-year growth of 1% to 5%, due to the anticipated strong Supply Chain Services segment revenue growth.
  • Non-GAAP adjusted EBITDA is affirmed at $566.0 million to $589.0 million, indicating anticipated year-over-year growth of 1% to 5%.
  • Non-GAAP adjusted fully distributed earnings per share is affirmed at $2.76 to $2.89, indicating anticipated year-over-year growth of 4% to 9%.

Challenges Ahead

  • Performance Services segment revenue is expected to decrease to a range of $340.0 million-to-$354.0 million, indicating an anticipated year-over-year decline of 2% to 6%.
  • The decline in Performance Services is resulting from expected slower-than-planned growth in the segment’s technology and consulting businesses.
  • The decline in Performance Services is resulting from the slow ramp up of the company’s Contigo direct-to-employer, high-value care network initiative.
  • Non-GAAP adjusted EBITDA guidance range incorporates the expected negative impact of $11.0 million to $13.0 million due to expenses associated with the Acurity and Nexera acquisitions.
  • Non-GAAP adjusted fully distributed earnings per share guidance range incorporates the expected negative impact of $0.05 to $0.08 associated with the Acurity and Nexera acquisitions.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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