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Dec 31, 2020
Premier Q2 2021 Earnings Report
Premier's fiscal year 2021 second quarter results were reported, demonstrating solid execution across businesses and continued demand.
Key Takeaways
Premier, Inc. reported a 32% increase in GAAP net revenue, reaching $422.8 million, but a decrease in GAAP net income to $44.9 million. The company initiated fiscal 2021 financial guidance, expecting total net revenue to be in the range of $1.608 billion to $1.653 billion, adjusted EBITDA to be in the range of $445 million to $465 million, and adjusted EPS to be in the range of $2.26 to $2.39.
GAAP net revenue increased 32% to $422.8 million.
Supply Chain Services segment revenue increased 41% to $329.1 million.
Performance Services segment revenue increased 8% to $93.7 million.
GAAP net income decreased to $44.9 million.
Premier
Premier
Premier Revenue by Segment
Revenue by Segment
Supply Chain Services Revenue
CapyFin.comPerformance Services Revenue
CapyFin.com Forward Guidance
Premier announced financial guidance for full fiscal year 2021. The company expects total net revenue to be in the range of $1.608 billion to $1.653 billion, adjusted EBITDA to be in the range of $445 million to $465 million, and adjusted EPS to be in the range of $2.26 to $2.39.
Positive Outlook
- Total net revenue to be in the range of $1.608 billion to $1.653 billion
- Adjusted EBITDA to be in the range of $445 million to $465 million
- Adjusted EPS to be in the range of $2.26 to $2.39
- Net administrative fees revenue of $560 million to $580 million
- Direct sourcing products revenue of $650 million to $690 million
Challenges Ahead
- Capital expenditures of $105 million to $110 million
- Effective tax rate of 24%
- Does not include the effect of any potential future significant acquisitions
- Impact of the amended GPO agreements
- Impact of the COVID-19 pandemic
Revenue & Expenses
Visualization of income flow from segment revenue to net income