Premier (PINC) Q4 2024 earnings summary

Executive summary

• Fiscal 2024 Q4 and full-year results exceeded expectations, driven by technology enablement, supply chain initiatives, and growth in both segments.

• Strategic focus on technology-enabled healthcare, smarter supply chain, and divestiture of non-core assets S2S Global and Contigo Health.

• Board approved an additional $200 million share repurchase under a $1 billion authorization and continued quarterly dividends.

• Expanded partnerships with healthcare providers, achieving 97% GPO retention and 95% SaaS renewal rates.

• Leadership transition: CFO Craig McKasson retiring, succeeded by Glenn Coleman.

Financial highlights

• Q4 total net revenue: $350.3 million, up 3% year-over-year; full-year net revenue $1,346.4 million, up 1%.

• Q4 GAAP net income: $60.6 million; Q4 diluted EPS $0.57, up 217% year-over-year.

• Q4 adjusted EBITDA: $118.7 million, down 9%; full-year adjusted EBITDA $445.8 million, down 8%.

• Free cash flow for fiscal 2024: $115.7 million, down from $264.4 million, mainly due to $162.3 million in tax payments from a non-healthcare GPO sale.

• Cash and cash equivalents as of June 30, 2024: $125.1 million.

Outlook and guidance

• Fiscal 2025 guidance: total net revenue $930 million–$1.02 billion; adjusted EBITDA $235 million–$255 million; adjusted EPS $1.16–$1.28.

• Guidance excludes Contigo Health and S2S Global contributions and impacts from significant acquisitions or share repurchases.

• Supply Chain Services segment revenue (excluding direct sourcing): $560 million–$610 million.

• Performance Services segment revenue: $370 million–$410 million.

• Free cash flow expected to be 45%–55% of adjusted EBITDA; capital expenditures $90–$100 million; cash tax rate below 5%.