☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 35-2477140 | ||||||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||||||||||
13034 Ballantyne Corporate Place | |||||||||||
Charlotte, | North Carolina | 28277 | |||||||||
(Address of principal executive offices) | (Zip Code) |
Securities registered pursuant to Section 12(b) of the Act: | ||||||||
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Class A Common Stock, $0.01 Par Value | PINC | NASDAQ Global Select Market |
Large accelerated filer | ☒ | Accelerated filer | ☐ | Non-accelerated filer | ☐ | ||||||||||||||||||
Smaller reporting company | ☐ | Emerging growth company | ☐ |
Page | ||||||||
Exhibits | ||||||||
March 31, 2022 | June 30, 2021 | ||||||||||
Assets | |||||||||||
Cash and cash equivalents | $ | 179,503 | $ | 129,141 | |||||||
Accounts receivable (net of $852 and $1,174 allowance for credit losses, respectively) | 125,632 | 142,557 | |||||||||
Contract assets (net of $1,251 and $1,110 allowance for credit losses, respectively) | 255,693 | 266,173 | |||||||||
Inventory | 130,275 | 176,376 | |||||||||
Prepaid expenses and other current assets | 64,897 | 68,049 | |||||||||
Total current assets | 756,000 | 782,296 | |||||||||
Property and equipment (net of $574,185 and $518,332 accumulated depreciation, respectively) | 222,583 | 224,271 | |||||||||
Intangible assets (net of $322,802 and $289,912 accumulated amortization, respectively) | 373,752 | 396,642 | |||||||||
Goodwill | 999,913 | 999,913 | |||||||||
Deferred income tax assets | 744,899 | 781,824 | |||||||||
Deferred compensation plan assets | 53,914 | 59,581 | |||||||||
Investments in unconsolidated affiliates | 209,205 | 153,224 | |||||||||
Operating lease right-of-use assets | 41,764 | 48,199 | |||||||||
Other assets | 113,429 | 76,948 | |||||||||
Total assets | $ | 3,515,459 | $ | 3,522,898 | |||||||
Liabilities and stockholders' equity | |||||||||||
Accounts payable | $ | 53,720 | $ | 85,413 | |||||||
Accrued expenses | 58,129 | 48,144 | |||||||||
Revenue share obligations | 240,152 | 226,883 | |||||||||
Accrued compensation and benefits | 79,621 | 100,713 | |||||||||
Deferred revenue | 33,755 | 34,058 | |||||||||
Current portion of notes payable to former limited partners | 97,342 | 95,948 | |||||||||
Line of credit and current portion of long-term debt | 253,053 | 78,295 | |||||||||
Other current liabilities | 47,403 | 47,330 | |||||||||
Total current liabilities | 863,175 | 716,784 | |||||||||
Long-term debt, less current portion | 2,280 | 5,333 | |||||||||
Notes payable to former limited partners, less current portion | 225,814 | 298,995 | |||||||||
Deferred compensation plan obligations | 53,914 | 59,581 | |||||||||
Deferred consideration, less current portion | 57,762 | 56,809 | |||||||||
Operating lease liabilities, less current portion | 35,678 | 43,102 | |||||||||
Other liabilities | 43,234 | 112,401 | |||||||||
Total liabilities | 1,281,857 | 1,293,005 | |||||||||
Commitments and contingencies (Note 14) |
March 31, 2022 | June 30, 2021 | ||||||||||
Stockholders' equity: | |||||||||||
Class A common stock, $0.01 par value, 500,000,000 shares authorized; 124,415,319 shares issued and 117,985,944 shares outstanding at March 31, 2022 and 122,533,051 shares issued and outstanding at June 30, 2021 | 1,244 | 1,225 | |||||||||
Treasury stock, at cost; 6,429,375 and 0 shares at March 31, 2022 and June 30, 2021, respectively | (250,129) | — | |||||||||
Additional paid-in capital | 2,150,313 | 2,059,194 | |||||||||
Retained earnings | 332,171 | 169,474 | |||||||||
Accumulated other comprehensive income | 3 | — | |||||||||
Total stockholders' equity | 2,233,602 | 2,229,893 | |||||||||
Total liabilities and stockholders' equity | $ | 3,515,459 | $ | 3,522,898 |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
March 31, | March 31, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Net revenue: | |||||||||||||||||||||||
Net administrative fees | $ | 148,396 | $ | 146,553 | $ | 448,261 | $ | 424,537 | |||||||||||||||
Other services and support | 105,808 | 107,375 | 320,109 | 304,020 | |||||||||||||||||||
Services | 254,204 | 253,928 | 768,370 | 728,557 | |||||||||||||||||||
Products | 93,629 | 215,995 | 323,825 | 511,080 | |||||||||||||||||||
Net revenue | 347,833 | 469,923 | 1,092,195 | 1,239,637 | |||||||||||||||||||
Cost of revenue: | |||||||||||||||||||||||
Services | 46,735 | 46,980 | 136,326 | 125,852 | |||||||||||||||||||
Products | 88,621 | 211,136 | 294,916 | 496,286 | |||||||||||||||||||
Cost of revenue | 135,356 | 258,116 | 431,242 | 622,138 | |||||||||||||||||||
Gross profit | 212,477 | 211,807 | 660,953 | 617,499 | |||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Selling, general and administrative | 143,676 | 134,502 | 418,330 | 388,453 | |||||||||||||||||||
Research and development | 826 | 715 | 2,666 | 2,013 | |||||||||||||||||||
Amortization of purchased intangible assets | 11,151 | 10,400 | 32,890 | 33,864 | |||||||||||||||||||
Operating expenses | 155,653 | 145,617 | 453,886 | 424,330 | |||||||||||||||||||
Operating income | 56,824 | 66,190 | 207,067 | 193,169 | |||||||||||||||||||
Equity in net income of unconsolidated affiliates | 3,991 | 5,524 | 17,165 | 16,023 | |||||||||||||||||||
Interest expense, net | (2,804) | (3,225) | (8,465) | (8,742) | |||||||||||||||||||
(Loss) gain on FFF Put and Call Rights | — | (5,195) | 64,110 | (21,621) | |||||||||||||||||||
Other (expense) income, net | (4,248) | 1,594 | (2,176) | 10,167 | |||||||||||||||||||
Other (expense) income, net | (3,061) | (1,302) | 70,634 | (4,173) | |||||||||||||||||||
Income before income taxes | 53,763 | 64,888 | 277,701 | 188,996 | |||||||||||||||||||
Income tax expense (benefit) | 14,694 | 13,444 | 40,094 | (64,880) | |||||||||||||||||||
Net income | 39,069 | 51,444 | 237,607 | 253,876 | |||||||||||||||||||
Net income attributable to non-controlling interest | (654) | (3,123) | (1,643) | (15,903) | |||||||||||||||||||
Adjustment of redeemable limited partners' capital to redemption amount | — | — | — | (26,685) | |||||||||||||||||||
Net income attributable to stockholders | $ | 38,415 | $ | 48,321 | $ | 235,964 | $ | 211,288 | |||||||||||||||
Comprehensive income: | |||||||||||||||||||||||
Net income | $ | 39,069 | $ | 51,444 | $ | 237,607 | $ | 253,876 | |||||||||||||||
Comprehensive income attributable to non-controlling interest | (654) | (3,123) | (1,643) | (15,903) | |||||||||||||||||||
Foreign currency translation gain | 4 | — | 3 | — | |||||||||||||||||||
Comprehensive income attributable to stockholders | $ | 38,419 | $ | 48,321 | $ | 235,967 | $ | 237,973 | |||||||||||||||
Weighted average shares outstanding: | |||||||||||||||||||||||
Basic | 118,697 | 122,254 | 120,957 | 114,596 | |||||||||||||||||||
Diluted | 119,813 | 123,116 | 122,302 | 115,365 | |||||||||||||||||||
Earnings per share attributable to stockholders: | |||||||||||||||||||||||
Basic | $ | 0.32 | $ | 0.40 | $ | 1.95 | $ | 1.84 | |||||||||||||||
Diluted | $ | 0.32 | $ | 0.39 | $ | 1.94 | $ | 1.83 |
Class A Common Stock | Treasury Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Total Stockholders' Equity | ||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2021 | 122,533 | $ | 1,225 | — | $ | — | $ | 2,059,194 | $ | — | $ | 169,474 | $ | 2,229,893 | |||||||||||||||||||||||||||||||||
Issuance of Class A common stock under equity incentive plan | 1,239 | 13 | — | — | 22,851 | — | — | 22,864 | |||||||||||||||||||||||||||||||||||||||
Treasury stock | (1,091) | — | 1,091 | (42,628) | — | — | — | (42,628) | |||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | 7,554 | — | — | 7,554 | |||||||||||||||||||||||||||||||||||||||
Repurchase of vested restricted units for employee tax-withholding | — | — | — | — | (9,171) | — | — | (9,171) | |||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | 121,306 | 121,306 | |||||||||||||||||||||||||||||||||||||||
Net loss attributable to non-controlling interest | — | — | — | — | (698) | — | 698 | — | |||||||||||||||||||||||||||||||||||||||
Dividends ($0.20 per share) | — | — | — | — | — | — | (24,877) | (24,877) | |||||||||||||||||||||||||||||||||||||||
Non-controlling interest related to acquisition | — | — | — | — | 23,145 | — | — | 23,145 | |||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2021 | 122,681 | 1,238 | 1,091 | (42,628) | 2,102,875 | — | 266,601 | 2,328,086 | |||||||||||||||||||||||||||||||||||||||
Issuance of Class A common stock under equity incentive plan | 579 | 5 | — | — | 14,398 | — | — | 14,403 | |||||||||||||||||||||||||||||||||||||||
Issuance of Class A common stock under employee stock purchase plan | 52 | 1 | — | — | 1,976 | — | — | 1,977 | |||||||||||||||||||||||||||||||||||||||
Treasury stock | (3,377) | — | 3,377 | (133,396) | — | — | — | (133,396) | |||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | 16,234 | — | — | 16,234 | |||||||||||||||||||||||||||||||||||||||
Repurchase of vested restricted units for employee tax-withholding | — | — | — | — | (1,495) | — | — | (1,495) | |||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | 77,232 | 77,232 | |||||||||||||||||||||||||||||||||||||||
Net income attributable to non-controlling interest | — | — | — | — | 1,687 | — | (1,687) | — | |||||||||||||||||||||||||||||||||||||||
Change in ownership of consolidated entity | — | — | — | — | 12 | — | — | 12 | |||||||||||||||||||||||||||||||||||||||
Dividends ($0.20 per share) | — | — | — | — | — | (24,250) | (24,250) | ||||||||||||||||||||||||||||||||||||||||
Foreign currency translation loss | — | — | — | — | — | (1) | — | (1) | |||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2021 | 119,935 | 1,244 | 4,468 | (176,024) | 2,135,687 | (1) | 317,896 | 2,278,802 | |||||||||||||||||||||||||||||||||||||||
Issuance of Class A common stock under equity incentive plan | 12 | — | — | — | 118 | — | — | 118 | |||||||||||||||||||||||||||||||||||||||
Treasury stock | (1,961) | — | 1,961 | (74,105) | — | — | — | (74,105) | |||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | 14,004 | — | — | 14,004 | |||||||||||||||||||||||||||||||||||||||
Repurchase of vested restricted units for employee tax-withholding | — | — | — | — | (174) | — | — | (174) | |||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | 39,069 | 39,069 | |||||||||||||||||||||||||||||||||||||||
Net income attributable to non-controlling interest | — | — | — | — | 654 | — | (654) | — | |||||||||||||||||||||||||||||||||||||||
Change in ownership of consolidated entity | — | — | — | — | 24 | — | — | 24 | |||||||||||||||||||||||||||||||||||||||
Dividends ($0.20 per share) | — | — | — | — | — | — | (24,140) | (24,140) | |||||||||||||||||||||||||||||||||||||||
Foreign currency translation gain | — | — | — | — | — | 4 | — | 4 | |||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2022 | 117,986 | $ | 1,244 | 6,429 | $ | (250,129) | $ | 2,150,313 | $ | 3 | $ | 332,171 | $ | 2,233,602 |
Class A Common Stock | Class B Common Stock | Additional Paid-In Capital | Retained Earnings / (Accumulated Deficit) | Total Stockholders' Equity | |||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2020 | 71,627 | $ | 716 | 50,213 | $ | — | $ | 138,547 | $ | — | $ | 139,263 | |||||||||||||||||||||||||||||
Balance at July 1, 2020 | 71,627 | 716 | 50,213 | — | 138,547 | — | 139,263 | ||||||||||||||||||||||||||||||||||
Impact of change in accounting principle | — | — | — | — | — | (1,228) | (1,228) | ||||||||||||||||||||||||||||||||||
Adjusted balance at July 1, 2020 | 71,627 | 716 | 50,213 | — | 138,547 | (1,228) | 138,035 | ||||||||||||||||||||||||||||||||||
Exchange of Class B common units for Class A common stock by member owners | 70 | 1 | (70) | — | 2,436 | — | 2,437 | ||||||||||||||||||||||||||||||||||
Increase in additional paid-in capital related to quarterly exchange by member owners, including associated TRA revaluation | — | — | — | — | 37,319 | — | 37,319 | ||||||||||||||||||||||||||||||||||
Increase in additional paid-in capital related to final exchange by member owners, including TRA termination | — | — | — | — | 517,526 | — | 517,526 | ||||||||||||||||||||||||||||||||||
Issuance of Class A common stock under equity incentive plan | 241 | 2 | — | — | 642 | — | 644 | ||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | 7,229 | — | 7,229 | ||||||||||||||||||||||||||||||||||
Repurchase of vested restricted units for employee tax-withholding | — | — | — | — | (3,023) | — | (3,023) | ||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 157,528 | 157,528 | ||||||||||||||||||||||||||||||||||
Net income attributable to non-controlling interest | — | — | — | — | — | (11,845) | (11,845) | ||||||||||||||||||||||||||||||||||
Adjustment of redeemable limited partners' capital to redemption amount | — | — | — | — | — | (26,685) | (26,685) | ||||||||||||||||||||||||||||||||||
Reclassification of redeemable limited partners' capital to permanent equity | — | — | — | — | 1,750,840 | 3,767 | 1,754,607 | ||||||||||||||||||||||||||||||||||
Final exchange of Class B common units for Class A common stock by member owners | 50,143 | 502 | (50,143) | — | (502) | — | — | ||||||||||||||||||||||||||||||||||
Early termination payments to members | — | — | — | — | (438,967) | — | (438,967) | ||||||||||||||||||||||||||||||||||
Dividends ($0.19 per share) | — | — | — | — | — | (23,381) | (23,381) | ||||||||||||||||||||||||||||||||||
Balance at September 30, 2020 | 122,081 | 1,221 | — | — | 2,012,047 | 98,156 | 2,111,424 | ||||||||||||||||||||||||||||||||||
Issuance of Class A common stock under equity incentive plan | 102 | 1 | — | — | 1,770 | — | 1,771 | ||||||||||||||||||||||||||||||||||
Issuance of Class A common stock under employee stock purchase plan | 45 | — | — | — | 1,597 | — | 1,597 | ||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | 7,316 | — | 7,316 | ||||||||||||||||||||||||||||||||||
Repurchase of vested restricted units for employee tax-withholding | — | — | — | — | (28) | — | (28) | ||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 44,904 | 44,904 | ||||||||||||||||||||||||||||||||||
Net income attributable to non-controlling interest | — | — | — | — | 935 | (935) | — | ||||||||||||||||||||||||||||||||||
Dividends ($0.19 per share) | — | — | — | — | — | (23,374) | (23,374) | ||||||||||||||||||||||||||||||||||
Adjustment in additional paid-in capital related to consolidated investment | — | — | — | — | 318 | (318) | — | ||||||||||||||||||||||||||||||||||
Capital contributions | — | — | — | — | 1,959 | — | 1,959 | ||||||||||||||||||||||||||||||||||
Non-controlling interest in consolidated investments | — | — | — | — | 3,690 | — | 3,690 | ||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | 122,228 | 1,222 | — | — | 2,029,604 | 118,433 | 2,149,259 | ||||||||||||||||||||||||||||||||||
Issuance of Class A common stock under equity incentive plan | 40 | 1 | — | — | 1,101 | — | 1,102 | ||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | 13,056 | — | 13,056 | ||||||||||||||||||||||||||||||||||
Repurchase of vested restricted units for employee tax-withholding | — | — | — | — | (48) | — | (48) | ||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 51,444 | 51,444 | ||||||||||||||||||||||||||||||||||
Net income attributable to non-controlling interest | — | — | — | — | 3,123 | (3,123) | — | ||||||||||||||||||||||||||||||||||
Dividends ($0.19 per share) | — | — | — | — | — | (23,403) | (23,403) | ||||||||||||||||||||||||||||||||||
Balance at March 31, 2021 | 122,268 | $ | 1,223 | — | $ | — | $ | 2,046,836 | $ | 143,351 | $ | 2,191,410 |
Nine Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
Operating activities | |||||||||||
Net income | $ | 237,607 | $ | 253,876 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 95,764 | 89,768 | |||||||||
Equity in net income of unconsolidated affiliates | (17,165) | (16,023) | |||||||||
Deferred income taxes | 36,926 | (100,150) | |||||||||
Stock-based compensation | 37,792 | 27,601 | |||||||||
(Gain) loss on FFF call/put rights | (64,110) | 21,621 | |||||||||
Other | 4,578 | 537 | |||||||||
Changes in operating assets and liabilities, net of the effects of acquisitions: | |||||||||||
Accounts receivable, inventories, prepaid expenses and other assets | 91,418 | (181,263) | |||||||||
Contract assets | (39,139) | (43,733) | |||||||||
Accounts payable, accrued expenses, deferred revenue, revenue share obligations and other liabilities | (48,882) | 140,131 | |||||||||
Net cash provided by operating activities | 334,789 | 192,365 | |||||||||
Investing activities | |||||||||||
Purchases of property and equipment | (61,061) | (66,911) | |||||||||
Acquisition of businesses and equity method investments, net of cash acquired | (26,000) | (81,152) | |||||||||
Investment in unconsolidated affiliates | (16,000) | — | |||||||||
Other | (10,000) | (1,228) | |||||||||
Net cash used in investing activities | (113,061) | (149,291) | |||||||||
Financing activities | |||||||||||
Payments made on notes payable | (75,082) | (31,692) | |||||||||
Proceeds from credit facility | 300,000 | 225,000 | |||||||||
Payments on credit facility | (125,000) | (100,000) | |||||||||
Cash dividends paid | (72,861) | (69,647) | |||||||||
Repurchase of Class A common stock (held as treasury stock) | (250,129) | — | |||||||||
Proceeds from exercise of stock options | 37,385 | — | |||||||||
Distributions to limited partners of Premier LP | — | (9,949) | |||||||||
Payments to limited partners of Premier LP related to tax receivable agreements | — | (24,218) | |||||||||
Other | 14,318 | 712 | |||||||||
Net cash used in financing activities | (171,369) | (9,794) | |||||||||
Effect of exchange rate changes on cash flows | 3 | — | |||||||||
Net increase in cash and cash equivalents | 50,362 | 33,280 | |||||||||
Cash and cash equivalents at beginning of period | 129,141 | 99,304 | |||||||||
Cash and cash equivalents at end of period | $ | 179,503 | $ | 132,584 |
Nine Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
Supplementary non-cash investing and financing activities: | |||||||||||
Non-cash additions to property and equipment | $ | 129 | $ | — | |||||||
Accrued dividend equivalents | 738 | 513 | |||||||||
Increase in redeemable limited partners' capital for adjustment to fair value, with offsetting decrease in stockholders' equity | — | 26,685 | |||||||||
Decrease in redeemable limited partners' capital, with offsetting increase in stockholders' equity related to quarterly exchanges by member owners | — | (2,437) | |||||||||
Net increase in deferred tax assets related to departures and quarterly exchanges by member owners and other adjustments | — | 331 | |||||||||
Net increase in deferred tax assets related to final exchange by member owners | — | 284,852 | |||||||||
Reclassification of redeemable limited partners' capital to additional paid in capital | — | 1,754,607 | |||||||||
Decrease in additional paid-in capital related to notes payable to former limited partners, net of discounts | — | 438,967 | |||||||||
Net increase in additional paid-in capital related to departures and quarterly exchanges by member owners and other adjustments | — | 37,319 | |||||||||
Increase in additional paid-in capital related to final exchange by member owners | — | 517,526 |
Carrying Value | Equity in Net Income | ||||||||||||||||||||||||||||||||||
Three Months Ended March 31, | Nine Months Ended March 31, | ||||||||||||||||||||||||||||||||||
March 31, 2022 | June 30, 2021 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||||
FFF | $ | 132,384 | $ | 120,548 | $ | 2,437 | $ | 806 | $ | 11,836 | $ | 8,387 | |||||||||||||||||||||||
Exela | 27,504 | — | 501 | — | 1,504 | — | |||||||||||||||||||||||||||||
Prestige | 14,566 | 14,478 | 935 | 4,436 | 3,272 | 7,082 | |||||||||||||||||||||||||||||
Qventus | 16,000 | — | — | — | — | — | |||||||||||||||||||||||||||||
Other investments | 18,751 | 18,198 | 118 | 282 | 553 | 554 | |||||||||||||||||||||||||||||
Total investments | $ | 209,205 | $ | 153,224 | $ | 3,991 | $ | 5,524 | $ | 17,165 | $ | 16,023 |
Fair Value of Financial Assets and Liabilities | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||
March 31, 2022 | |||||||||||||||||||||||
Cash equivalents | $ | 75 | $ | 75 | $ | — | $ | — | |||||||||||||||
Deferred compensation plan assets | 59,803 | 59,803 | — | — | |||||||||||||||||||
Total assets | 59,878 | 59,878 | — | — | |||||||||||||||||||
Earn-out liabilities | 23,194 | — | — | 23,194 | |||||||||||||||||||
Total liabilities | $ | 23,194 | $ | — | $ | — | $ | 23,194 | |||||||||||||||
June 30, 2021 | |||||||||||||||||||||||
Cash equivalents | $ | 75 | $ | 75 | $ | — | $ | — | |||||||||||||||
Deferred compensation plan assets | 65,051 | 65,051 | — | — | |||||||||||||||||||
Total assets | 65,126 | 65,126 | — | — | |||||||||||||||||||
Earn-out liabilities | 24,249 | — | — | 24,249 | |||||||||||||||||||
FFF put right | 64,110 | — | — | 64,110 | |||||||||||||||||||
Total liabilities | $ | 88,359 | $ | — | $ | — | $ | 88,359 |
June 30, 2021 | |||||
Annual FFF EBITDA growth rate | 2.5-10.8% | ||||
Annual revenue growth rate | 2.5-6.3% | ||||
Correlation | 80.0 | % | |||
Weighted average cost of capital | 14.0 | % | |||
Asset volatility | 30.0 | % | |||
Credit spread | 0.8 | % |
Input assumptions | As of March 31, 2022 | As of June 30, 2021 | |||||||||
Probability of transferred member renewal percentage < 50% | 5.0 | % | 5.0 | % | |||||||
Probability of transferred member renewal percentage between 50% and 65% | 10.0 | % | 10.0 | % | |||||||
Probability of transferred member renewal percentage between 65% and 80% | 25.0 | % | 25.0 | % | |||||||
Probability of transferred member renewal percentage > 80% | 60.0 | % | 60.0 | % | |||||||
Credit spread | 1.1 | % | 0.9 | % |
Beginning Balance | Purchases (Settlements) (a)(b) | (Gain)/Loss (c) | Ending Balance | ||||||||||||||||||||
Three Months Ended March 31, 2022 | |||||||||||||||||||||||
Earn-out liabilities | $ | 24,139 | $ | — | $ | (945) | $ | 23,194 | |||||||||||||||
$ | 24,139 | $ | — | $ | (945) | $ | 23,194 | ||||||||||||||||
Three Months Ended March 31, 2021 | |||||||||||||||||||||||
Earn-out liabilities | $ | 22,700 | $ | — | $ | (1,254) | $ | 23,954 | |||||||||||||||
FFF put right | 53,184 | — | (5,195) | 58,379 | |||||||||||||||||||
$ | 75,884 | $ | — | $ | (6,449) | $ | 82,333 | ||||||||||||||||
Nine Months Ended March 31, 2022 | |||||||||||||||||||||||
Earn-out liabilities | $ | 24,249 | $ | — | $ | (1,055) | $ | 23,194 | |||||||||||||||
FFF put right | 64,110 | (64,110) | — | — | |||||||||||||||||||
$ | 88,359 | $ | (64,110) | $ | (1,055) | $ | 23,194 | ||||||||||||||||
Nine Months Ended March 31, 2021 | |||||||||||||||||||||||
Earn-out liabilities | $ | 33,151 | $ | (13,733) | $ | (4,536) | $ | 23,954 | |||||||||||||||
FFF put right | 36,758 | — | (21,621) | 58,379 | |||||||||||||||||||
$ | 69,909 | $ | (13,733) | $ | (26,157) | $ | 82,333 |
Useful Life | March 31, 2022 | June 30, 2021 | |||||||||||||||
Member relationships | 14.7 years | $ | 386,100 | $ | 386,100 | ||||||||||||
Technology | 6.1 years | 186,017 | 186,017 | ||||||||||||||
Customer relationships | 9.6 years | 70,830 | 70,830 | ||||||||||||||
Trade names | 7.4 years | 24,610 | 24,610 | ||||||||||||||
Non-compete agreements | 5.2 years | 21,315 | 11,315 | ||||||||||||||
Other (a) | 10.2 years | 7,682 | 7,682 | ||||||||||||||
Total intangible assets | 696,554 | 686,554 | |||||||||||||||
Accumulated amortization | (322,802) | (289,912) | |||||||||||||||
Total intangible assets, net | $ | 373,752 | $ | 396,642 |
March 31, 2022 | June 30, 2021 | ||||||||||
Credit facility | $ | 250,000 | $ | 75,000 | |||||||
Notes payable to members, net of discount | 323,156 | 394,943 | |||||||||
Other notes payable | 5,333 | 8,628 | |||||||||
Total debt and notes payable | 578,489 | 478,571 | |||||||||
Less: current portion | (350,395) | (174,243) | |||||||||
Total long-term debt and notes payable | $ | 228,094 | $ | 304,328 |
Receivables From Limited Partners | Redeemable Limited Partners' Capital | Total Redeemable Limited Partners' Capital | |||||||||||||||
June 30, 2020 | $ | (995) | $ | 1,721,304 | $ | 1,720,309 | |||||||||||
Distributions applied to receivables from limited partners | 141 | — | 141 | ||||||||||||||
Net income attributable to non-controlling interest in Premier LP | — | 11,845 | 11,845 | ||||||||||||||
Distributions to limited partners | — | (1,936) | (1,936) | ||||||||||||||
Exchange of Class B common units for Class A common stock by member owners | — | (2,437) | (2,437) | ||||||||||||||
Adjustment of redeemable limited partners' capital to redemption amount | — | 26,685 | 26,685 | ||||||||||||||
Reclassification to permanent equity | 854 | (1,755,461) | (1,754,607) | ||||||||||||||
September 30, 2020 | $ | — | $ | — | $ | — |
Three Months Ended March 31, | Nine Months Ended March 31, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Numerator for basic earnings per share: | |||||||||||||||||||||||
Net income attributable to stockholders (a) | $ | 38,415 | $ | 48,321 | $ | 235,964 | $ | 211,288 | |||||||||||||||
Numerator for diluted earnings per share: | |||||||||||||||||||||||
Net income attributable to stockholders (a) | $ | 38,415 | $ | 48,321 | $ | 235,964 | $ | 211,288 | |||||||||||||||
Net income attributable to non-controlling interest | — | — | 1,643 | — | |||||||||||||||||||
Net income for diluted earnings per share | $ | 38,415 | $ | 48,321 | $ | 237,607 | $ | 211,288 | |||||||||||||||
Denominator for earnings per share: | |||||||||||||||||||||||
Basic weighted average shares outstanding (b) | 118,697 | 122,254 | 120,957 | 114,596 | |||||||||||||||||||
Effect of dilutive securities: (c) | |||||||||||||||||||||||
Stock options | 98 | 325 | 225 | 300 | |||||||||||||||||||
Restricted stock | 465 | 373 | 499 | 336 | |||||||||||||||||||
Performance share awards | 553 | 164 | 621 | 133 | |||||||||||||||||||
Diluted weighted average shares and assumed conversions | 119,813 | 123,116 | 122,302 | 115,365 | |||||||||||||||||||
Earnings per share attributable to stockholders: | |||||||||||||||||||||||
Basic | $ | 0.32 | $ | 0.40 | $ | 1.95 | $ | 1.84 | |||||||||||||||
Diluted | $ | 0.32 | $ | 0.39 | $ | 1.94 | $ | 1.83 |
Three Months Ended March 31, | Nine Months Ended March 31, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Net income | $ | 39,069 | $ | 51,444 | $ | 237,607 | $ | 253,876 | |||||||||||||||
Net income attributable to non-controlling interest | (654) | (3,123) | (1,643) | (15,903) | |||||||||||||||||||
Adjustment of redeemable limited partners’ capital to redemption amount | — | — | — | (26,685) | |||||||||||||||||||
Net income attributable to stockholders | $ | 38,415 | $ | 48,321 | $ | 235,964 | $ | 211,288 |
Three Months Ended March 31, | Nine Months Ended March 31, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Pre-tax stock-based compensation expense | $ | 14,004 | $ | 13,056 | $ | 37,792 | $ | 27,601 | |||||||||||||||
Deferred tax benefit (a) | 3,288 | 2,521 | 8,013 | 4,641 | |||||||||||||||||||
Total stock-based compensation expense, net of tax | $ | 10,716 | $ | 10,535 | $ | 29,779 | $ | 22,960 |
Restricted Stock | Performance Share Awards | Stock Options | |||||||||||||||||||||||||||||||||
Number of Awards | Weighted Average Fair Value at Grant Date | Number of Awards | Weighted Average Fair Value at Grant Date | Number of Options | Weighted Average Exercise Price | ||||||||||||||||||||||||||||||
Outstanding at June 30, 2021 | 990,301 | $ | 35.27 | 1,731,002 | $ | 35.56 | 2,163,006 | $ | 30.32 | ||||||||||||||||||||||||||
Granted | 624,256 | 37.79 | 651,392 | 37.22 | — | — | |||||||||||||||||||||||||||||
Vested/exercised | (293,691) | 40.19 | (588,142) | 43.74 | (1,239,656) | 30.18 | |||||||||||||||||||||||||||||
Forfeited | (139,811) | 33.80 | (199,985) | 32.06 | (12,025) | 36.54 | |||||||||||||||||||||||||||||
Outstanding at March 31, 2022 | 1,181,055 | $ | 35.55 | 1,594,267 | $ | 33.66 | 911,325 | $ | 30.44 | ||||||||||||||||||||||||||
Stock options outstanding and exercisable at March 31, 2022 | 911,325 | $ | 30.44 |
Unrecognized Stock-Based Compensation Expense | Weighted Average Amortization Period | ||||||||||
Restricted stock | $ | 24,950 | 2.1 years | ||||||||
Performance share awards | 23,590 | 1.7 years | |||||||||
Total unrecognized stock-based compensation expense | $ | 48,540 | 1.9 years |
Intrinsic Value of Stock Options | |||||
Outstanding and exercisable | $ | 4,727 | |||
Exercised during the year ended March 31, 2022 | $ | 9,716 |
March 31, 2022 | June 30, 2021 | ||||||||||
2022 (a) | $ | 3,017 | $ | 11,738 | |||||||
2023 | 12,131 | 12,012 | |||||||||
2024 | 12,267 | 12,145 | |||||||||
2025 | 12,301 | 12,177 | |||||||||
2026 | 9,005 | 8,878 | |||||||||
Thereafter | 1,323 | 1,293 | |||||||||
Total future minimum lease payments | 50,044 | 58,243 | |||||||||
Less: imputed interest | 3,885 | 5,289 | |||||||||
$ | 46,159 | $ | 52,954 |
Three Months Ended March 31, | Nine Months Ended March 31, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Net revenue: | |||||||||||||||||||||||
Segment net revenue | |||||||||||||||||||||||
Supply Chain Services | |||||||||||||||||||||||
Net administrative fees | $ | 148,396 | $ | 146,553 | $ | 448,261 | $ | 424,537 | |||||||||||||||
Other services and support | 8,914 | 8,630 | 27,165 | 18,307 | |||||||||||||||||||
Services | 157,310 | 155,183 | 475,426 | 442,844 | |||||||||||||||||||
Products | 93,629 | 215,995 | 323,825 | 511,080 | |||||||||||||||||||
Total Supply Chain Services (a) | 250,939 | 371,178 | 799,251 | 953,924 | |||||||||||||||||||
Performance Services (a) | 96,903 | 98,745 | 292,962 | 285,713 | |||||||||||||||||||
Total segment net revenue | 347,842 | 469,923 | 1,092,213 | 1,239,637 | |||||||||||||||||||
Eliminations (a) | (9) | — | (18) | — | |||||||||||||||||||
Net revenue | $ | 347,833 | $ | 469,923 | $ | 1,092,195 | $ | 1,239,637 |
Three Months Ended March 31, | Nine Months Ended March 31, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Depreciation and amortization expense (a): | |||||||||||||||||||||||
Supply Chain Services | $ | 14,114 | $ | 9,389 | $ | 40,710 | $ | 27,608 | |||||||||||||||
Performance Services | 16,163 | 18,196 | 48,349 | 55,763 | |||||||||||||||||||
Corporate | 2,282 | 2,152 | 6,705 | 6,397 | |||||||||||||||||||
Total depreciation and amortization expense | $ | 32,559 | $ | 29,737 | $ | 95,764 | $ | 89,768 | |||||||||||||||
Capital expenditures: | |||||||||||||||||||||||
Supply Chain Services | $ | 6,740 | $ | 2,486 | $ | 22,212 | $ | 8,061 | |||||||||||||||
Performance Services | 10,926 | 18,835 | 34,312 | 54,118 | |||||||||||||||||||
Corporate | 735 | 726 | 4,537 | 4,732 | |||||||||||||||||||
Total capital expenditures | $ | 18,401 | $ | 22,047 | $ | 61,061 | $ | 66,911 |
March 31, 2022 | June 30, 2021 | ||||||||||
Total assets: | |||||||||||
Supply Chain Services | $ | 1,507,056 | $ | 1,550,300 | |||||||
Performance Services | 1,065,974 | 1,043,608 | |||||||||
Corporate | 942,431 | 928,939 | |||||||||
Total assets | 3,515,461 | 3,522,847 | |||||||||
Eliminations (b) | (2) | 51 | |||||||||
Total assets, net | $ | 3,515,459 | $ | 3,522,898 |
Three Months Ended March 31, | Nine Months Ended March 31, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Income before income taxes | $ | 53,763 | $ | 64,888 | $ | 277,701 | $ | 188,996 | |||||||||||||||
Equity in net income of unconsolidated affiliates (a) | (3,991) | (5,524) | (17,165) | (16,023) | |||||||||||||||||||
Interest and investment loss, net | 2,804 | 3,225 | 8,465 | 8,742 | |||||||||||||||||||
Loss (gain) on FFF Put and Call Rights (b) | — | 5,195 | (64,110) | 21,621 | |||||||||||||||||||
Other (income) expense | 4,248 | (1,594) | 2,176 | (10,167) | |||||||||||||||||||
Operating income | 56,824 | 66,190 | 207,067 | 193,169 | |||||||||||||||||||
Depreciation and amortization | 21,408 | 19,337 | 62,874 | 55,904 | |||||||||||||||||||
Amortization of purchased intangible assets | 11,151 | 10,400 | 32,890 | 33,864 | |||||||||||||||||||
Stock-based compensation (c) | 14,149 | 13,180 | 38,229 | 27,970 | |||||||||||||||||||
Acquisition- and disposition-related expenses | 3,115 | 4,126 | 10,282 | 14,889 | |||||||||||||||||||
Equity in net income of unconsolidated affiliates (a) | 3,991 | 5,524 | 17,165 | 16,023 | |||||||||||||||||||
Deferred compensation plan (expense) income (d) | (3,994) | 1,521 | (1,923) | 9,231 | |||||||||||||||||||
Other expense, net | 5,544 | 929 | 9,323 | 5,718 | |||||||||||||||||||
Non-GAAP Adjusted EBITDA | $ | 112,188 | $ | 121,207 | $ | 375,907 | $ | 356,768 | |||||||||||||||
Segment Non-GAAP Adjusted EBITDA: | |||||||||||||||||||||||
Supply Chain Services (e) | $ | 118,034 | $ | 117,949 | $ | 381,586 | $ | 339,538 | |||||||||||||||
Performance Services (e) | 26,552 | 35,950 | 89,277 | 109,675 | |||||||||||||||||||
Corporate | (32,398) | (32,692) | (94,956) | (92,445) | |||||||||||||||||||
Non-GAAP Adjusted EBITDA | $ | 112,188 | $ | 121,207 | $ | 375,907 | $ | 356,768 |
Three Months Ended March 31, | Nine Months Ended March 31, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Net revenue | $ | 347,833 | $ | 469,923 | $ | 1,092,195 | $ | 1,239,637 | |||||||||||||||
Net income | 39,069 | 51,444 | 237,607 | 253,876 | |||||||||||||||||||
Non-GAAP Adjusted EBITDA | 112,188 | 121,207 | 375,907 | 356,768 |
Three Months Ended March 31, | Nine Months Ended March 31, | ||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||||||||||||||||||
Amount | % of Net Revenue | Amount | % of Net Revenue | Amount | % of Net Revenue | Amount | % of Net Revenue | ||||||||||||||||||||||||||||||||||||||||
Net revenue: | |||||||||||||||||||||||||||||||||||||||||||||||
Net administrative fees | $ | 148,396 | 43% | $ | 146,553 | 31% | $ | 448,261 | 41% | $ | 424,537 | 34% | |||||||||||||||||||||||||||||||||||
Other services and support | 105,808 | 30% | 107,375 | 23% | 320,109 | 29% | 304,020 | 25% | |||||||||||||||||||||||||||||||||||||||
Services | 254,204 | 73% | 253,928 | 54% | 768,370 | 70% | 728,557 | 59% | |||||||||||||||||||||||||||||||||||||||
Products | 93,629 | 27% | 215,995 | 46% | 323,825 | 30% | 511,080 | 41% | |||||||||||||||||||||||||||||||||||||||
Net revenue | 347,833 | 100% | 469,923 | 100% | 1,092,195 | 100% | 1,239,637 | 100% | |||||||||||||||||||||||||||||||||||||||
Cost of revenue: | |||||||||||||||||||||||||||||||||||||||||||||||
Services | 46,735 | 13% | 46,980 | 10% | 136,326 | 12% | 125,852 | 10% | |||||||||||||||||||||||||||||||||||||||
Products | 88,621 | 25% | 211,136 | 45% | 294,916 | 27% | 496,286 | 40% | |||||||||||||||||||||||||||||||||||||||
Cost of revenue | 135,356 | 39% | 258,116 | 55% | 431,242 | 39% | 622,138 | 50% | |||||||||||||||||||||||||||||||||||||||
Gross profit | 212,477 | 61% | 211,807 | 45% | 660,953 | 61% | 617,499 | 50% | |||||||||||||||||||||||||||||||||||||||
Operating expenses | 155,653 | 45% | 145,617 | 31% | 453,886 | 42% | 424,330 | 34% | |||||||||||||||||||||||||||||||||||||||
Operating income | 56,824 | 16% | 66,190 | 14% | 207,067 | 19% | 193,169 | 16% | |||||||||||||||||||||||||||||||||||||||
Other (expense) income, net | (3,061) | (1)% | (1,302) | —% | 70,634 | 6% | (4,173) | —% | |||||||||||||||||||||||||||||||||||||||
Income before income taxes | 53,763 | 15% | 64,888 | 14% | 277,701 | 25% | 188,996 | 15% | |||||||||||||||||||||||||||||||||||||||
Income tax expense (benefit) | 14,694 | 4% | 13,444 | 3% | 40,094 | 4% | (64,880) | (5)% | |||||||||||||||||||||||||||||||||||||||
Net income | 39,069 | 11% | 51,444 | 11% | 237,607 | 22% | 253,876 | 20% | |||||||||||||||||||||||||||||||||||||||
Net income attributable to non-controlling interest | (654) | —% | (3,123) | (1)% | (1,643) | —% | (15,903) | (1)% | |||||||||||||||||||||||||||||||||||||||
Adjustment of redeemable limited partners’ capital to redemption amount | — | —% | — | —% | — | —% | (26,685) | (2)% | |||||||||||||||||||||||||||||||||||||||
Net income attributable to stockholders | $ | 38,415 | nm | $ | 48,321 | nm | $ | 235,964 | nm | $ | 211,288 | nm | |||||||||||||||||||||||||||||||||||
Earnings per share attributable to stockholders: | |||||||||||||||||||||||||||||||||||||||||||||||
Basic | $ | 0.32 | $ | 0.40 | $ | 1.95 | $ | 1.84 | |||||||||||||||||||||||||||||||||||||||
Diluted | $ | 0.32 | $ | 0.39 | $ | 1.94 | $ | 1.83 |
Three Months Ended March 31, | Nine Months Ended March 31, | ||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||||||||||||||||||
Certain Non-GAAP Financial Data: | Amount | % of Net Revenue | Amount | % of Net Revenue | Amount | % of Net Revenue | Amount | % of Net Revenue | |||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 112,188 | 32% | $ | 121,207 | 26% | $ | 375,907 | 34% | $ | 356,768 | 29% | |||||||||||||||||||||||||||||||||||
Non-GAAP Adjusted Net Income | 68,098 | 20% | 78,535 | 17% | 235,444 | 22% | 232,023 | 19% | |||||||||||||||||||||||||||||||||||||||
Non-GAAP Adjusted Earnings Per Share | 0.57 | nm | 0.64 | nm | 1.93 | nm | 1.89 | nm |
Three Months Ended March 31, | Nine Months Ended March 31, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Net income | $ | 39,069 | $ | 51,444 | $ | 237,607 | $ | 253,876 | |||||||||||||||
Interest expense, net | 2,804 | 3,225 | 8,465 | 8,742 | |||||||||||||||||||
Income tax expense (benefit) | 14,694 | 13,444 | 40,094 | (64,880) | |||||||||||||||||||
Depreciation and amortization | 21,408 | 19,337 | 62,874 | 55,904 | |||||||||||||||||||
Amortization of purchased intangible assets | 11,151 | 10,400 | 32,890 | 33,864 | |||||||||||||||||||
EBITDA | 89,126 | 97,850 | 381,930 | 287,506 | |||||||||||||||||||
Stock-based compensation | 14,149 | 13,180 | 38,229 | 27,970 | |||||||||||||||||||
Acquisition- and disposition-related expenses | 3,115 | 4,126 | 10,282 | 14,889 | |||||||||||||||||||
Loss (gain) on FFF Put and Call Rights | — | 5,195 | (64,110) | 21,621 | |||||||||||||||||||
Other expense, net | 5,798 | 856 | 9,576 | 4,782 | |||||||||||||||||||
Adjusted EBITDA | $ | 112,188 | $ | 121,207 | $ | 375,907 | $ | 356,768 | |||||||||||||||
Income before income taxes | $ | 53,763 | $ | 64,888 | $ | 277,701 | $ | 188,996 | |||||||||||||||
Equity in net income of unconsolidated affiliates | (3,991) | (5,524) | (17,165) | (16,023) | |||||||||||||||||||
Interest expense, net | 2,804 | 3,225 | 8,465 | 8,742 | |||||||||||||||||||
Loss (gain) on FFF Put and Call Rights | — | 5,195 | (64,110) | 21,621 | |||||||||||||||||||
Other expense (income), net | 4,248 | (1,594) | 2,176 | (10,167) | |||||||||||||||||||
Operating income | 56,824 | 66,190 | 207,067 | 193,169 | |||||||||||||||||||
Depreciation and amortization | 21,408 | 19,337 | 62,874 | 55,904 | |||||||||||||||||||
Amortization of purchased intangible assets | 11,151 | 10,400 | 32,890 | 33,864 | |||||||||||||||||||
Stock-based compensation | 14,149 | 13,180 | 38,229 | 27,970 | |||||||||||||||||||
Acquisition- and disposition-related expenses | 3,115 | 4,126 | 10,282 | 14,889 | |||||||||||||||||||
Equity in net income of unconsolidated affiliates | 3,991 | 5,524 | 17,165 | 16,023 | |||||||||||||||||||
Deferred compensation plan (expense) income | (3,994) | 1,521 | (1,923) | 9,231 | |||||||||||||||||||
Other expense, net | 5,544 | 929 | 9,323 | 5,718 | |||||||||||||||||||
Adjusted EBITDA | $ | 112,188 | $ | 121,207 | $ | 375,907 | $ | 356,768 |
Three Months Ended March 31, | Nine Months Ended March 31, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Segment Adjusted EBITDA: | |||||||||||||||||||||||
Supply Chain Services | $ | 118,034 | $ | 117,949 | $ | 381,586 | $ | 339,538 | |||||||||||||||
Performance Services | 26,552 | 35,950 | 89,277 | 109,675 | |||||||||||||||||||
Corporate | (32,398) | (32,692) | (94,956) | (92,445) | |||||||||||||||||||
Adjusted EBITDA | $ | 112,188 | $ | 121,207 | $ | 375,907 | $ | 356,768 |
Three Months Ended March 31, | Nine Months Ended March 31, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Earnings per share attributable to stockholders | $ | 0.32 | $ | 0.40 | $ | 1.95 | $ | 1.84 | |||||||||||||||
Adjustment of redeemable limited partners’ capital to redemption amount | — | — | — | 0.23 | |||||||||||||||||||
Net income attributable to non-controlling interest | 0.01 | 0.03 | 0.01 | 0.14 | |||||||||||||||||||
Income tax expense (benefit) | 0.12 | 0.11 | 0.33 | (0.56) | |||||||||||||||||||
Amortization of purchased intangible assets | 0.09 | 0.09 | 0.27 | 0.30 | |||||||||||||||||||
Stock-based compensation | 0.12 | 0.11 | 0.32 | 0.24 | |||||||||||||||||||
Acquisition- and disposition-related expenses | 0.03 | 0.03 | 0.09 | 0.13 | |||||||||||||||||||
Loss (gain) on FFF Put and Call Rights | — | 0.04 | (0.53) | 0.19 | |||||||||||||||||||
Other expense, net | 0.06 | 0.02 | 0.12 | 0.09 | |||||||||||||||||||
Impact of corporation taxes (a) | (0.18) | (0.19) | (0.61) | (0.57) | |||||||||||||||||||
Impact of dilutive shares (b) | — | — | (0.02) | (0.14) | |||||||||||||||||||
Non-GAAP Adjusted Earnings Per Share | $ | 0.57 | $ | 0.64 | $ | 1.93 | $ | 1.89 |
Three Months Ended March 31, | Nine Months Ended March 31, | ||||||||||||||||||||||||||||||||||||||||||||||
Supply Chain Services | 2022 | 2021 | Change | 2022 | 2021 | Change | |||||||||||||||||||||||||||||||||||||||||
Net revenue: | |||||||||||||||||||||||||||||||||||||||||||||||
Net administrative fees | $ | 148,396 | $ | 146,553 | $ | 1,843 | 1% | $ | 448,261 | $ | 424,537 | $ | 23,724 | 6 | % | ||||||||||||||||||||||||||||||||
Other services and support | 8,914 | 8,630 | 284 | 3% | 27,165 | 18,307 | 8,858 | 48 | % | ||||||||||||||||||||||||||||||||||||||
Services | 157,310 | 155,183 | 2,127 | 1% | 475,426 | 442,844 | 32,582 | 7 | % | ||||||||||||||||||||||||||||||||||||||
Products | 93,629 | 215,995 | (122,366) | (57)% | 323,825 | 511,080 | (187,255) | (37) | % | ||||||||||||||||||||||||||||||||||||||
Net revenue | 250,939 | 371,178 | (120,239) | (32)% | 799,251 | 953,924 | (154,673) | (16) | % | ||||||||||||||||||||||||||||||||||||||
Cost of revenue: | |||||||||||||||||||||||||||||||||||||||||||||||
Services | 3,835 | 1,120 | 2,715 | 242% | 10,472 | 2,627 | 7,845 | 299 | % | ||||||||||||||||||||||||||||||||||||||
Products | 88,621 | 211,136 | (122,515) | (58)% | 294,916 | 496,286 | (201,370) | (41) | % | ||||||||||||||||||||||||||||||||||||||
Cost of revenue | 92,456 | 212,256 | (119,800) | (56)% | 305,388 | 498,913 | (193,525) | (39) | % | ||||||||||||||||||||||||||||||||||||||
Gross profit | 158,483 | 158,922 | (439) | —% | 493,863 | 455,011 | 38,852 | 9 | % | ||||||||||||||||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative | 49,954 | 49,714 | 240 | —% | 146,453 | 144,511 | 1,942 | 1 | % | ||||||||||||||||||||||||||||||||||||||
Research and development | 65 | 72 | (7) | (10)% | 301 | 199 | 102 | 51 | % | ||||||||||||||||||||||||||||||||||||||
Amortization of purchased intangible assets | 8,093 | 8,151 | (58) | (1)% | 24,344 | 24,205 | 139 | 1 | % | ||||||||||||||||||||||||||||||||||||||
Operating expenses | 58,112 | 57,937 | 175 | —% | 171,098 | 168,915 | 2,183 | 1 | % | ||||||||||||||||||||||||||||||||||||||
Operating income | 100,371 | 100,985 | (614) | (1)% | 322,765 | 286,096 | 36,669 | 13 | % | ||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 6,021 | 1,238 | 16,365 | 3,403 | |||||||||||||||||||||||||||||||||||||||||||
Amortization of purchased intangible assets | 8,093 | 8,151 | 24,345 | 24,205 | |||||||||||||||||||||||||||||||||||||||||||
Acquisition- and disposition-related expenses | (180) | 2,053 | 1,428 | 9,684 | |||||||||||||||||||||||||||||||||||||||||||
Equity in net income of unconsolidated affiliates | 3,726 | 5,319 | 16,672 | 15,907 | |||||||||||||||||||||||||||||||||||||||||||
Other expense | 3 | 203 | 11 | 243 | |||||||||||||||||||||||||||||||||||||||||||
Segment Adjusted EBITDA | $ | 118,034 | $ | 117,949 | $ | 85 | —% | $ | 381,586 | $ | 339,538 | $ | 42,048 | 12 | % |
Three Months Ended March 31, | Nine Months Ended March 31, | ||||||||||||||||||||||||||||||||||||||||||||||
Performance Services | 2022 | 2021 | Change | 2022 | 2021 | Change | |||||||||||||||||||||||||||||||||||||||||
Net revenue: | |||||||||||||||||||||||||||||||||||||||||||||||
Other services and support | $ | 96,903 | $ | 98,745 | $ | (1,842) | (2)% | $ | 292,962 | $ | 285,713 | $ | 7,249 | 3% | |||||||||||||||||||||||||||||||||
Net revenue | 96,903 | 98,745 | (1,842) | (2)% | 292,962 | 285,713 | 7,249 | 3% | |||||||||||||||||||||||||||||||||||||||
Cost of revenue: | |||||||||||||||||||||||||||||||||||||||||||||||
Services | 42,900 | 45,860 | (2,960) | (6)% | 125,854 | 123,225 | 2,629 | 2% | |||||||||||||||||||||||||||||||||||||||
Cost of revenue | 42,900 | 45,860 | (2,960) | (6)% | 125,854 | 123,225 | 2,629 | 2% | |||||||||||||||||||||||||||||||||||||||
Gross profit | 54,003 | 52,885 | 1,118 | 2% | 167,108 | 162,488 | 4,620 | 3% | |||||||||||||||||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative | 43,354 | 34,517 | 8,837 | 26% | 124,617 | 102,488 | 22,129 | 22% | |||||||||||||||||||||||||||||||||||||||
Research and development | 761 | 643 | 118 | 18% | 2,366 | 1,814 | 552 | 30% | |||||||||||||||||||||||||||||||||||||||
Amortization of purchased intangible assets | 3,059 | 2,249 | 810 | 36% | 8,545 | 9,659 | (1,114) | (12)% | |||||||||||||||||||||||||||||||||||||||
Operating expenses | 47,174 | 37,409 | 9,765 | 26% | 135,528 | 113,961 | 21,567 | 19% | |||||||||||||||||||||||||||||||||||||||
Operating income | 6,829 | 15,476 | (8,647) | (56)% | 31,580 | 48,527 | (16,947) | (35)% | |||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 13,104 | 15,947 | 39,804 | 46,104 | |||||||||||||||||||||||||||||||||||||||||||
Amortization of purchased intangible assets | 3,059 | 2,249 | 8,545 | 9,659 | |||||||||||||||||||||||||||||||||||||||||||
Acquisition related expenses | 3,295 | 2,073 | 8,854 | 5,205 | |||||||||||||||||||||||||||||||||||||||||||
Equity in net income of unconsolidated affiliates | 265 | 205 | 494 | 116 | |||||||||||||||||||||||||||||||||||||||||||
Other expense | — | — | — | 64 | |||||||||||||||||||||||||||||||||||||||||||
Segment Adjusted EBITDA | $ | 26,552 | $ | 35,950 | $ | (9,398) | (26)% | $ | 89,277 | $ | 109,675 | $ | (20,398) | (19)% |
Three Months Ended March 31, | Nine Months Ended March 31, | ||||||||||||||||||||||||||||||||||||||||||||||
Corporate | 2022 | 2021 | Change | 2022 | 2021 | Change | |||||||||||||||||||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative | $ | 50,376 | $ | 50,271 | $ | 105 | —% | $ | 147,279 | $ | 141,454 | $ | 5,825 | 4% | |||||||||||||||||||||||||||||||||
Operating expenses | 50,376 | 50,271 | 105 | —% | 147,279 | 141,454 | 5,825 | 4% | |||||||||||||||||||||||||||||||||||||||
Operating loss | (50,376) | (50,271) | (105) | —% | (147,279) | (141,454) | (5,825) | 4% | |||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 2,282 | 2,152 | 6,705 | 6,397 | |||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | 14,149 | 13,180 | 38,229 | 27,970 | |||||||||||||||||||||||||||||||||||||||||||
Deferred compensation plan (expense) income | (3,992) | 1,521 | (1,922) | 9,231 | |||||||||||||||||||||||||||||||||||||||||||
Other expense, net | 5,539 | 726 | 9,311 | 5,411 | |||||||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | (32,398) | $ | (32,692) | $ | 294 | 1% | $ | (94,956) | $ | (92,445) | $ | (2,511) | (3)% |
Nine Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
Net cash provided by (used in): | |||||||||||
Operating activities | $ | 334,789 | $ | 192,365 | |||||||
Investing activities | (113,061) | (149,291) | |||||||||
Financing activities | (171,369) | (9,794) | |||||||||
Net increase in cash and cash equivalents | $ | 50,359 | $ | 33,280 |
Nine Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
Net cash provided by operating activities | $ | 334,789 | $ | 192,365 | |||||||
Purchases of property and equipment | (61,061) | (66,911) | |||||||||
Early termination payments to certain former limited partners that elected to execute a Unit Exchange Agreement (a) | (71,786) | (20,328) | |||||||||
Distributions to limited partners of Premier LP | — | (9,949) | |||||||||
Payments to limited partners of Premier LP related to tax receivable agreements | — | (24,218) | |||||||||
Non-GAAP Free Cash Flow | $ | 201,942 | $ | 70,959 |
Period | Total Number of Share Purchased | Average Price Paid per Share ($)(a) | Total Number of Shares Purchased as Part of Publicly Announced Program | Approximate Dollar Value of Shares that May Yet be Purchased Under the Program (in millions)(b) | |||||||||||||||||||
January 1 through January 31, 2022 | 935,628 | $ | 38.79 | 935,628 | $ | 38 | |||||||||||||||||
February 1 through February 28, 2022 | 825,862 | 36.84 | 825,862 | 7 | |||||||||||||||||||
March 1 through March 31, 2022 | 199,603 | 36.79 | 199,603 | — | |||||||||||||||||||
Total | 1,961,093 | 1,961,093 | $ | — |
Exhibit No. | Description | |||||||
3.2 | ||||||||
10.1 | ||||||||
31.1 | ||||||||
31.2 | ||||||||
32.1 | ||||||||
32.2 | ||||||||
101 | Sections of the Premier, Inc. Quarterly Report on Form 10-Q for the quarter ended March 31, 2022, formatted in iXBRL (Inline eXtensible Business Reporting Language), submitted in the following files: | |||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document.* | |||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document.* | |||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document.* | |||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document.* | |||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document.* | |||||||
104 | The cover page from the Premier, Inc. Quarterly Report on Form 10-Q for the quarter ended March 31, 2022, formatted in Inline XBRL (included in Exhibit 101).* |
PREMIER, INC. | |||||||||||||||||
Date: | May 3, 2022 | By: | /s/ Craig S. McKasson | ||||||||||||||
Name: | Craig S. McKasson | ||||||||||||||||
Title: | Chief Administrative and Financial Officer and Senior Vice President | ||||||||||||||||
Signing on behalf of the registrant and as principal financial officer and principal accounting officer |
/s/ Michael J. Alkire | ||||||||
Michael J. Alkire | ||||||||
President and Chief Executive Officer |
/s/ Craig S. McKasson | ||||||||
Craig S. McKasson | ||||||||
Chief Administrative and Financial Officer and Senior Vice President |
/s/ Michael J. Alkire | ||||||||
Michael J. Alkire | ||||||||
President and Chief Executive Officer | ||||||||
May 3, 2022 |
/s/ Craig S. McKasson | ||||||||
Craig S. McKasson | ||||||||
Chief Administrative and Financial Officer and Senior Vice President | ||||||||
May 3, 2022 |