On August 20, 2024, Premier Inc (PINC, Financial) released its 8-K filing for the fiscal-year 2024 fourth quarter and full year ended June 30, 2024. Premier Inc, a Charlotte, North Carolina-based national group purchasing organization, provides primary supply chain services to large hospital systems and alternate outpatient locations. The company also offers advisory services, consulting services, and software-as-a-service-based subscriptions.
Quarterly and Annual Financial Highlights
Premier Inc reported a consolidated net revenue of $350.3 million for the fourth quarter, a 3% increase from $340.4 million in the prior-year period. This exceeded the analyst estimate of $313.21 million. The company's net income for the quarter was $60.6 million, a significant increase of 221% from $18.9 million in the previous year. Diluted earnings per share (EPS) for the quarter stood at $0.57, surpassing the analyst estimate of $0.34.
For the full fiscal year, Premier Inc reported a net revenue of $1.35 billion, a 1% increase from $1.34 billion in the prior year. However, the net income for the year decreased by 39% to $106.7 million from $174.9 million in the previous year. The diluted EPS for the year was $1.04, down from $1.46 in the prior year.
Segment Performance
The Supply Chain Services segment reported a net revenue of $230.0 million for the fourth quarter, a 1% increase from $228.1 million in the prior-year period. This growth was driven by higher net administrative fees revenue and software license, other services, and support revenue, partially offset by a decrease in products revenue. The Performance Services segment reported a net revenue of $120.4 million, a 7% increase from $112.3 million in the prior-year period, primarily due to an increase in consulting services revenue and enterprise license agreements.
Financial Metrics and Achievements
Adjusted EBITDA for the fourth quarter was $118.7 million, a 9% decrease from $131.1 million in the prior-year period. Adjusted net income for the quarter was $72.7 million, a 10% decrease from $80.7 million in the previous year. Despite these decreases, the adjusted EPS for the quarter increased by 3% to $0.69 from $0.67 in the prior-year period.
For the full fiscal year, adjusted EBITDA was $445.8 million, an 8% decrease from $483.7 million in the prior year. Adjusted net income for the year was $270.4 million, a 6% decrease from $288.1 million in the previous year. The adjusted EPS for the year was $2.36, a slight decrease from $2.40 in the prior year.
Cash Flow and Liquidity
Net cash provided by operating activities for the year ended June 30, 2024, was $296.6 million, a decrease from $444.5 million in the prior year. This decrease was primarily due to $162.3 million in tax payments related to the sale of non-healthcare GPO operations and increased expenses to support growth in certain areas of the Supply Chain Services and Performance Services segments. Free cash flow for the year was $115.7 million, down from $264.4 million in the prior year.
Conclusion
Premier Inc's performance in the fourth quarter and full fiscal year 2024 highlights the company's resilience and ability to exceed expectations despite challenges. The significant increase in net income and EPS for the quarter, along with the steady growth in net revenue, underscores the company's strong position in the healthcare improvement industry. However, the decreases in adjusted EBITDA and net income for the full year indicate areas that may require strategic adjustments moving forward.
Explore the complete 8-K earnings release (here) from Premier Inc for further details.
