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Jun 30, 2022
Premier Q4 2022 Earnings Report
Premier's Q4 2022 performance reflected its focus on improving community health and advancing its long-term strategy.
Key Takeaways
Premier, Inc. reported a 29% decrease in GAAP net revenue to $340.7 million, a 39% decrease in GAAP net income to $30.7 million, and a 38% decrease in GAAP diluted EPS to $0.25. However, adjusted EBITDA increased by 5% to $122.8 million, and adjusted EPS increased by 2% to $0.61.
GAAP net revenue decreased 29% to $340.7 million.
Supply Chain Services segment revenue decreased 40% to $232.7 million.
Performance Services segment revenue increased 18% to $108.0 million.
GAAP net income decreased 39% to $30.7 million.
Premier
Premier
Premier Revenue by Segment
Revenue by Segment
Supply Chain Services Revenue
CapyFin.comPerformance Services Revenue
CapyFin.com Forward Guidance
In fiscal 2023, the company expects total net revenue to be in the range of $1.38 billion to $1.45 billion, adjusted EBITDA to be in the range of $510 million to $530 million, and adjusted EPS to be in the range of $2.63 to $2.75.
Positive Outlook
- Net administrative fees revenue of $620 million to $640 million
- Direct sourcing products revenue of $315 million to $345 million
- Net revenue available under contract that represents approximately 80% to 86% of the fiscal-2023 guidance range
- Effective income tax rate in the range of 26% to 27%
- Free cash flow of 45% to 55% of adjusted EBITDA
Challenges Ahead
- Capital expenditures of $90 million to $100 million
- Does not include the effect of any potential future significant acquisitions
- Does not include the effect of share repurchases
- Adjusted for the impact of the COVID-19 pandemic
- Premier’s fiscal-2023 growth expectations are in line with its previously communicated multi-year, compound annual growth rate targets of mid-to-high single digits for consolidated net revenue, adjusted EBITDA and adjusted EPS.
Revenue & Expenses
Visualization of income flow from segment revenue to net income