Earnings Review and Free Research Report: Premier’s Revenue Soared 34%; Adjusted EPS Surged 39%
Research Desk Line-up: Veeva Systems Post Earnings Coverage
LONDON, UK / ACCESSWIRE / September 1, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Premier, Inc. (NASDAQ: PINC), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=PINC, following the Company's posting of its fourth quarter and fiscal 2017 financial results on August 21, 2017. The health care data services Company outperformed revenue estimates. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
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Get more of our free earnings reports coverage from other constituents of the Healthcare Information Services industry. Pro-TD has currently selected Veeva Systems Inc. (NYSE: VEEV) for due-diligence and potential coverage as the Company announced on August 24, 2017, its financial results for Q2 FY18 which ended on July 31, 2017. Register for a free membership today, and be among the early birds that get access to our report on Veeva Systems when we publish it.
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Earnings Reviewed
For the fiscal fourth-quarter ended June 30, 2017, Premier generated net revenue of $403.1 million, reflecting an increase of 34%, from net revenue of $301.4 million for Q4 FY16. The Company's revenue number had surpassed analysts' expectations of $400.1 million. The Company generated net revenue of $1.45 billion for the fiscal year ended June 30, 2017, a 25% increase from net revenue of $1.16 billion in FY16.
For Q4 FY17, Premier's non-GAAP adjusted EBITDA was $132.1 million, increasing 32% from the same period of the prior year. The growth was primarily driven by increase in net administrative fees revenue and growth in Performance Services.
Premier's net income advanced 47% to $73.9 million for Q4 FY17 from $50.4 million for Q4 FY16. In accordance with GAAP required non-cash adjustments to reflect the change in the redemption value of limited partners' Class B common unit ownership at the end of each period, diluted earnings per share reflected a loss of $6.10 compared with diluted earnings per share of $0.30 for Q4 FY16.
Premier's non-GAAP adjusted fully distributed net income increased 36% to $70.2 million for Q4 FY17 from $51.6 million for the same period a year ago. The Company's non-GAAP adjusted fully distributed earnings per share increased 39% to $0.50 from $0.36 for the year ago comparable period, and fell short of Wall Street's expectations of $0.52 per share. Premier reported net income of $449.5 million for FY17 compared to $235.2 million for FY16.
Segment Results
For the fiscal fourth-quarter ended June 30, 2017, Premier's Supply Chain Services segment generated net revenue of $309.7 million, an increase of 42% from $217.4 million in Q4 FY16. Revenue growth was driven by strong performance of both the Company's GPO and products businesses. GPO net administrative fees revenue of $158.5 million increased 23% on a y-o-y basis, where contributions from the Innovatix and Essensa's acquisitions accounted for $23.7 million of the increase, while the Company's legacy GPO business increased 5%, or $6.4 million.
The Supply Chain Services segment's Product revenues surged 68% to $147.5 million from $87.5 million a year ago, primarily driven by $57.4 million in revenues from the Acro acquisition and increased sales of direct sourcing products. Supply Chain Services segment's non-GAAP adjusted EBITDA totaled $129.5 million for Q4 FY17, up 18% compared to $109.4 million for Q4 FY16. The increase was largely the result of growth in net administrative fees, and to a lesser extent growth in products revenue.
For Q4 FY17, Premier's Performance Services segment generated net revenue of $93.4 million, an increase of 11% from $84.0 million for Q4 FY16. The growth reflects a 26% y-o-y growth in advisory services revenue and a 5% revenue increase from the informatics and technology services business. Performance Services segment's non-GAAP adjusted EBITDA surged 63% to $33.6 million in the reported quarter from $20.6 million in the year ago same period, primarily due to the increase in revenue and lower selling, general, and administrative (SG&A) expenses.
Cash Flows and Liquidity
Premier's net cash provided by operating activities was $392.2 million for the fiscal year ended June 30, 2017, an increase of $20.7 million from $371.5 million for FY16. The increase in cash flow from operations primarily resulted from an increase in net administrative fees revenue and an increase in cash generated from gross margin on other services and support revenue. At June 30, 2017, the Company's cash and cash equivalents totaled $156.7 million compared to $248.8 million at June 30, 2016. Premier had no marketable securities as of June 30, 2017, compared with $47.9 million a year earlier.
At June 30, 2017, the Company had an outstanding balance of $220.0 on its five-year $750.0 million revolving credit facility. During Q4 FY17, Premier repaid $147.5 million on the credit facility.
Premier's non-GAAP free cash flow totaled $61.5 million for Q4 FY17 compared to $42.7 million for Q4 FY16. The increase in free cash flow primarily resulted from an increase in net administrative fees revenue and an increase in cash generated from gross margin on other services and support revenue associated with growth in ambulatory regulatory reporting, cost management solutions, and government services.
Stock Performance
On Thursday, August 31, 2017, the stock closed the trading session at $33.50, rising 1.73% from its previous closing price of $32.93. A total volume of 391.52 thousand shares have exchanged hands. Premier's stock price advanced 7.54% in the past six months and 5.85% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have surged 10.34%. At Thursday's closing price, the stock's net capitalization stands at $4.69 billion.
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