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Mar 31, 2024
Premier Q3 2024 Earnings Report
Reported a 6% increase in total net revenue and reaffirmed fiscal year 2024 financial guidance, despite a GAAP net loss due to a significant impairment charge.
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
Revenue by Segment
Supply Chain Services Revenue
CapyFin.comPerformance Services Revenue
CapyFin.com 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