Premier Q3 2024 Earnings Report
Key Takeaways
Premier, Inc. reported a 6% increase in total net revenue for the third quarter of fiscal year 2024, driven by growth in both Supply Chain Services and Performance Services segments. However, the company experienced a GAAP net loss due to a $140.1 million impairment charge related to its Contigo Health business. Adjusted earnings per share remained flat compared to the prior-year period. The company reaffirmed its fiscal year 2024 financial guidance and executed a $400 million accelerated share repurchase transaction.
Total net revenue increased by 6% year-over-year to $342.6 million.
GAAP net loss was $49.2 million, or $(0.36) per fully diluted share, impacted by a $140.1 million impairment charge.
Adjusted earnings per share were $0.55, remaining flat compared to the prior-year period.
The company reaffirmed its fiscal year 2024 financial guidance and executed a $400 million accelerated share repurchase transaction.
Premier
Premier
Premier Revenue by Segment
Forward Guidance
Premier, Inc. reaffirmed its fiscal 2024 guidance ranges, expecting Supply Chain Services net revenue between $840 million and $880 million, Performance Services net revenue between $425 million and $445 million, total net revenue between $1.265 billion and $1.325 billion, adjusted EBITDA between $405 million and $425 million, and adjusted EPS between $2.06 and $2.18.
Positive Outlook
- Net administrative fees revenue of $588 million to $603 million
- Direct sourcing products revenue of $207 million to $222 million
- Supply Chain Services segment software licenses, other services and support revenue of $45 million to $55 million
- Effective income tax rate in the range of 26-28%
- Free cash flow of 45% to 55% of adjusted EBITDA, excluding the impact of tax payments related to the sale of non-healthcare GPO operations
Challenges Ahead
- Capital expenditures of $93 million to $103 million
- Guidance does not include the impact of any significant acquisitions or divestitures
- Potential volatility or disruptions in the capital markets could impact the accelerated share repurchase transaction
- Uncertainties related to future events and trends affecting the business
- Forward-looking statements are subject to risks and uncertainties outside of Premier’s control
Revenue & Expenses
Visualization of income flow from segment revenue to net income