Loading...
•
Jun 30, 2024
Premier Q4 2024 Earnings Report
Premier's Q4 2024 financial results exceeded expectations, with consolidated net revenue increasing due to growth in both Supply Chain and Performance Services segments.
Key Takeaways
Premier, Inc. reported strong Q4 2024 results, with revenue and profitability exceeding expectations. Consolidated net revenue increased year-over-year, driven by growth in both Supply Chain Services and Performance Services segments. The company remains disciplined in its approach and is well-positioned to advance its strategy and return capital to stockholders.
Consolidated net revenue increased from the prior-year period.
Supply Chain Services and Performance Services segments both contributed to revenue growth.
Board of Directors approved execution of another $200 million of Class A common shares under share repurchase authorization.
Net income increased 221% from $18.9 million in the prior-year period.
Premier
Premier
Premier Revenue by Segment
Revenue by Segment
Supply Chain Services Revenue
CapyFin.comPerformance Services Revenue
CapyFin.com Forward Guidance
Premier, Inc. provided fiscal year 2025 guidance, excluding financial contributions from divested businesses. Supply Chain Services revenue is expected to be lower due to increased member fee share and exclusion of direct sourcing products revenue. Performance Services revenue is also projected to be lower, driven by the exclusion of revenue from Contigo Health and Remitra businesses. Adjusted EBITDA and adjusted EPS are anticipated to decrease due to the increased member fee share, impact of terminated GPO members, and exclusion of the OMNIA transaction impact.
Positive Outlook
- Net administrative fees revenue of $495 million to $525 million, which includes $60 million to $75 million in revenue related to non-healthcare member purchasing
- Supply Chain Services segment software licenses, other services and support revenue of $65 million to $85 million
- Effective income tax rate in the range of 25% to 27%
- Cash income tax rate of less than 5%
- Free cash flow of 45% to 55% of adjusted EBITDA
Challenges Ahead
- Supply Chain Services segment revenue that is lower than the prior year primarily resulting from the expected increase in aggregate blended member fee share in the GPO from approximately 54% in fiscal 2024 to the low-60% range for fiscal 2025 on a full year basis as well as the exclusion of direct sourcing products revenue.
- Performance Services segment revenue that is lower than the prior year primarily resulting from the exclusion of revenue from the Contigo Health and Remitra businesses as well as the timing of new bookings in fiscal 2025 related to fiscal 2024 finishing better than expected.
- Together, these result in total expected net revenue that is lower than the prior year.
- Adjusted EBITDA and adjusted EPS that are lower than the prior year primarily resulting from the aforementioned increase in aggregate blended member fee share in the GPO, the impact associated with fiscal 2024 terminated GPO members, and the exclusion of the impact of the OMNIA transaction including associated revenues sold, imputed interest expense and cash taxes paid on proceeds received.
- Capital expenditures of $90 million to $100 million
Revenue & Expenses
Visualization of income flow from segment revenue to net income