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Dec 31, 2021
Premier Q2 2022 Earnings Report
Premier's fiscal year 2022 second quarter results reflected continued operational execution.
Key Takeaways
Premier, Inc. reported a decrease in GAAP net revenue by 10% to $379.2 million compared to the previous year, but an increase in GAAP net income by 72% to $77.2 million. GAAP diluted earnings per share (EPS) increased 72% to $0.62. The company is increasing its total net revenue guidance range to $1.40 billion to $1.44 billion from a range of $1.32 billion to $1.43 billion.
GAAP net revenue decreased 10% to $379.2 million.
Supply Chain Services segment revenue decreased 18% to $271.5 million.
Performance Services segment revenue increased 15% to $107.7 million.
GAAP net income increased 72% to $77.2 million.
Premier
Premier
Premier Revenue by Segment
Revenue by Segment
Supply Chain Services Revenue
CapyFin.comPerformance Services Revenue
CapyFin.com Forward Guidance
Premier is increasing its total net revenue guidance range to $1.40 billion to $1.44 billion from a range of $1.32 billion to $1.43 billion. The company continues to expect fiscal 2022 adjusted EBITDA to be in the range of $483 million to $500 million. Premier is revising its previous guidance range of $2.56 to $2.66 for adjusted EPS to a range of $2.45 to $2.55.
Positive Outlook
- Total Net Revenue: $1.40 billion to $1.44 billion
- Supply Chain Services: $1.0 billion to $1.02 billion
- Performance Services: $395 million to $420 million
- Adjusted EBITDA: $483 million to $500 million
- Net administrative fees revenue of $580 million to $600 million
Challenges Ahead
- Adjusted EPS: $2.45 to $2.55
- Direct sourcing products revenue of $370 million to $390 million
- Effective income tax rate in the range of 24% to 26%
- Free cash flow of 35% to 50% of adjusted EBITDA
- Capital expenditures of $90 million to $95 million
Revenue & Expenses
Visualization of income flow from segment revenue to net income