Premier Inc (PINC) Reports Modest Revenue Growth Amid Economic Challenges
Premier Inc (NASDAQ:PINC) reports a 2% increase in consolidated net revenue year-over-year for the first quarter of fiscal 2024.
Adjusted EBITDA and adjusted EPS both show a 15% increase compared to the same period last year.
Performance Services segment revenue up by 15%, while Supply Chain Services segment net revenue decreases by 4%.
Company refrains from providing fiscal year 2024 guidance amidst ongoing strategic review.
On November 7, 2023, Premier Inc (NASDAQ:PINC), a leading healthcare improvement company, announced its financial results for the first quarter of fiscal year 2024, which ended on September 30, 2023. The company reported a slight increase in consolidated net revenue, which rose by 2% to $318.8 million from $313.9 million in the prior-year period. This growth was primarily driven by the Performance Services segment, which saw a 15% increase in revenue. However, net income experienced a marginal decline of 1%, coming in at $42.4 million compared to $43.0 million in the same quarter of the previous year.
Financial Performance Highlights
The Supply Chain Services segment faced a 4% decline in net revenue, primarily due to a decrease in products revenue, which fell by 14% year-over-year. Despite this, the segment's adjusted EBITDA increased by 2% to $114.9 million. The Performance Services segment, on the other hand, reported a robust 15% increase in net revenue, reaching $108.0 million, with segment adjusted EBITDA growing by 14% to $21.8 million.
Adjusted net income for the quarter was $64.9 million, a 15% increase from the previous year's figure of $56.2 million. Adjusted earnings per share (EPS) also saw a 15% rise, reaching $0.54 compared to $0.47 in the prior-year period. These improvements were attributed to the same factors that impacted adjusted EBITDA, along with a decrease in depreciation and amortization expense and an increase in interest income.
Liquidity and Cash Flow
Operating cash flow for the quarter was $81.9 million, an increase from $74.8 million in the prior-year period. The company's cash and cash equivalents stood at $453.3 million as of September 30, 2023, a significant increase from $89.8 million as of June 30, 2023. This was primarily due to proceeds from the sale of the company's non-healthcare GPO operations. Free cash flow for the quarter also increased, reaching $35.9 million compared to $31.5 million in the same period last year.
Outlook and Conference Call
Premier Inc did not provide guidance for fiscal year 2024, citing an ongoing strategic review. The company will host a conference call to discuss the quarter's results and provide additional details on the company's performance and outlook.
For more detailed information on Premier Inc's financial results, including reconciliations of non-GAAP financial measures, readers are encouraged to review the company's filings with the Securities and Exchange Commission (SEC) and visit Premier's investor relations website.
Investors and stakeholders are looking forward to seeing how Premier Inc will navigate the current economic landscape and continue to innovate in the healthcare sector. The company's focus on technology-enabled healthcare improvements and strategic investments may play a crucial role in its performance in the upcoming quarters.
Explore the complete 8-K earnings release (here) from Premier Inc for further details.
This article first appeared on GuruFocus.
