Premier Q2 2021 Earnings Report
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
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