CHARLOTTE, N.C.--(BUSINESS WIRE)--
Premier, Inc. (NASDAQ: PINC) today reported financial results for the
fiscal 2016 second quarter ended December 31, 2015.
Second-Quarter Highlights:
-
Net revenue increased 17% to $291.7 million from the same period last
year; Supply Chain Services segment revenue rose 13% and Performance
Services segment revenue increased 27%.
-
Adjusted EBITDA* increased 17% to $116.1 million from the same period
last year.
-
Adjusted fully distributed net income* increased 18% to $61.7 million,
or $0.42 on a fully diluted per-share basis, from the same period a
year ago. GAAP net income totaled $61.0 million, compared with $65.8
million in the prior year.
*Descriptions of adjusted EBITDA, adjusted fully distributed net
income and other non-GAAP financial measures are provided in “Use and
Definition of Non-GAAP Measures,” and reconciliations are provided in
the tables at the end of this release.
“Our second-quarter financial performance demonstrates the growing power
of Premier’s integrated business model as our multiple growth drivers
unite to provide comprehensive solutions to the many cost, quality,
safety and population health challenges facing our healthcare
providers,” said Susan DeVore, president and chief executive officer.
“The businesses within Supply Chain Services and Performance Services
delivered significant year-over-year growth in the quarter, driving a
17% increase in both consolidated net revenue and adjusted EBITDA. Based
on this performance and our current outlook and assumptions for the
remainder of the fiscal year, we are raising fiscal 2016 full-year
revenue and earnings guidance.”
“Longer term, we remain well positioned to continue to lead the
transformation of healthcare delivery in this country through
co-innovation with our member health systems across the continuum of
care,” DeVore said. “We believe our comprehensive, cloud-based,
provider-centric technology platform, coupled with industry leading
advisory services across the areas of cost, quality, safety and
population health, provide solutions unmatched in the marketplace.”
Results of Operations for the Second Quarter of Fiscal 2016
|
Consolidated Second-Quarter Financial Highlights
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
Six Months Ended December 31,
|
|
(in thousands, except per share data)
|
|
2015
|
|
|
2014
|
|
% Change
|
|
|
|
2015
|
|
|
2014
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
Net Revenue:
|
|
|
|
|
|
|
|
|
Supply Chain Services:
|
|
|
|
|
|
|
|
|
Net administrative fees
|
$
|
120,733
|
|
$
|
112,675
|
|
7
|
%
|
|
$
|
238,682
|
|
$
|
219,198
|
|
9
|
%
|
|
Other services and support
|
|
1,040
|
|
|
237
|
|
339
|
%
|
|
|
1,859
|
|
|
452
|
|
311
|
%
|
|
Services
|
|
121,773
|
|
|
112,912
|
|
8
|
%
|
|
|
240,541
|
|
|
219,650
|
|
10
|
%
|
|
Products
|
|
81,316
|
|
|
66,696
|
|
22
|
%
|
|
|
159,097
|
|
|
130,260
|
|
22
|
%
|
|
Total Supply Chain Services
|
|
203,089
|
|
|
179,608
|
|
13
|
%
|
|
|
399,638
|
|
|
349,910
|
|
14
|
%
|
|
Performance Services:
|
|
|
|
|
|
|
|
|
Services
|
|
88,580
|
|
|
69,837
|
|
27
|
%
|
|
|
162,866
|
|
|
128,843
|
|
26
|
%
|
|
Total
|
$
|
291,669
|
|
$
|
249,445
|
|
17
|
%
|
|
$
|
562,504
|
|
$
|
478,753
|
|
17
|
%
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA (a):
|
|
|
|
|
|
|
|
|
Supply Chain Services
|
$
|
107,989
|
|
$
|
97,342
|
|
11
|
%
|
|
$
|
210,938
|
|
$
|
188,610
|
|
12
|
%
|
|
Performance Services
|
|
34,462
|
|
|
23,189
|
|
49
|
%
|
|
|
59,387
|
|
|
41,551
|
|
43
|
%
|
|
Total segment adjusted EBITDA
|
|
142,451
|
|
|
120,531
|
|
18
|
%
|
|
|
270,325
|
|
|
230,161
|
|
17
|
%
|
|
Corporate
|
|
(26,396
|
)
|
|
(21,723
|
)
|
22
|
%
|
|
|
(49,273
|
)
|
|
(40,835
|
)
|
21
|
%
|
|
Total
|
$
|
116,055
|
|
$
|
98,808
|
|
17
|
%
|
|
$
|
221,052
|
|
$
|
189,326
|
|
17
|
%
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP adjusted fully distributed net income (a)
|
$
|
61,747
|
|
$
|
52,130
|
|
18
|
%
|
|
$
|
117,770
|
|
$
|
99,895
|
|
18
|
%
|
|
Non-GAAP earnings per share on adjusted fully distributed net income
- diluted (a)
|
$
|
0.42
|
|
$
|
0.36
|
|
17
|
%
|
|
$
|
0.81
|
|
$
|
0.69
|
|
17
|
%
|
|
Weighted average fully distributed shares outstanding - diluted
|
|
146,094
|
|
|
145,211
|
|
|
|
|
145,927
|
|
|
145,146
|
|
|
|
(a) See attached supplemental financial information for
reconciliation of reported GAAP results to Non-GAAP results.
|
|
|
For the fiscal second quarter ended December 31, 2015, Premier generated
net revenue of $291.7 million, an increase of 17% from net revenue of
$249.4 million for the same period a year ago.
Adjusted EBITDA of $116.1 million increased 17% from $98.8 million for
the same period last year. The increase was driven by revenue growth in
both of the company’s business segments, contributions from recent
acquisitions in the current year and effective management of operating
expenses.
Adjusted fully distributed net income for the fiscal second quarter rose
18% to $61.7 million, or $0.42 per fully diluted share, from $52.1
million, or $0.36 per fully diluted share, for the same period a year
ago. Adjusted fully distributed earnings per share is a non-GAAP
financial measure that represents net income, adjusted for non-recurring
and non-cash items, attributable to all stockholders as if all Class B
stockholders exchange their Class B common units and associated Class B
common shares for Class A common shares, and reflects income taxes at an
estimated effective rate of 40% on 100% of pretax income.
GAAP net income for the fiscal second quarter totaled $61.0 million,
compared with $65.8 million for the same quarter a year ago. The decline
is primarily attributable to higher income tax expense resulting from
the recording of a valuation allowance against a portion of the
company’s deferred tax assets. Fiscal 2016 and 2015 second-quarter net
income attributable to stockholders required non-cash adjustments of
$(65.6) million and $(42.3) million, respectively, to reflect the change
in redemption value of the limited partners Class B common unit
ownership at the end of each period. These non-cash adjustments result
from changes in the company’s stock price between periods and do not
reflect results of the company’s business operations. After these
non-cash adjustments based on changes in stock price, the company
reported a GAAP net loss attributable to stockholders of $1.31 per
share, compared with a GAAP net loss attributable to stockholders of
$0.93 per share a year ago. (See income statement in the tables
section of this press release.)
Segment Results
Supply Chain Services
For the fiscal second quarter ended December 31, 2015, the Supply Chain
Services segment generated net revenue of $203.1 million, an increase of
13% from $179.6 million a year ago. Revenue growth was driven by strong
performance of both the company’s group purchasing organization (GPO)
and products businesses. GPO net administrative fees revenue of $120.7
million increased 7% from a year ago, resulting from increased contract
penetration of existing members, continued recruitment and conversion of
members and positive utilization trends, although at a more normalized
level. Product sales of $81.3 million increased 22% from a year ago due
to the ongoing growth in member utilization of the company’s direct
sourcing and specialty pharmacy businesses.
Supply Chain Services segment adjusted EBITDA of $108.0 million for the
fiscal 2016 second quarter increased 11% from $97.3 million for the same
period a year ago. The increase primarily reflects growth in net
administrative fees revenue and the effective management of operating
expenses.
Performance Services
For the fiscal second quarter ended December 31, 2015, the Performance
Services segment generated net revenue of $88.6 million, an increase of
27% from $69.8 million for the same quarter last year. Revenue growth
was driven by PremierConnect SaaS-based (software-as-a-service)
subscriptions and renewals and the company’s advisory services as well
as contributions from the recent acquisitions of CECity.Com, Inc.,
Healthcare Insights, LLC and InflowHealth LLC.
Performance Services segment adjusted EBITDA was $34.5 million for the
fiscal 2016 second quarter, an increase of 49% from $23.2 million for
the same quarter last year. The growth in adjusted EBITDA reflects
increased revenue from PremierConnect SaaS-based subscriptions and
licenses, advisory services, contributions from recent acquisitions and
effective management of operating expenses.
Results of Operations for the Six Months Ended December 31, 2015
For the six months ended December 31, 2015, Premier generated net
revenue of $562.5 million, an increase of 17%, from net revenue of
$478.8 million for the same period a year ago. Adjusted EBITDA of $221.1
million increased 17% from $189.3 million for the same period last year.
Adjusted fully distributed net income for the six months rose 18% to
$117.8 million, or $0.81 per fully diluted share, from $99.9 million, or
$0.69 per fully diluted share, for the same period a year ago.
GAAP Net income for the six-month period totaled $113.2 million,
compared with $130.7 million for the same period a year ago. Fiscal 2016
and 2015 six-month net income attributable to stockholders required
non-cash adjustments of $401.2 million and $(424.9) million,
respectively, to reflect changes in redemption value of the limited
partners Class B common unit ownership at the end of each period. These
non-cash adjustments result from changes in the company’s stock price
between periods and do not reflect results of the company’s business
operations. After these non-cash adjustments based on the changes in
stock price, the company reported GAAP net income attributable to
stockholders of $0.60 per fully diluted share, compared with a GAAP net
loss attributable to stockholders of $11.96 per share a year ago. (See
income statement in the tables section of this press release.)
Supply Chain Services segment net revenue for the first six months of
fiscal 2016 increased 14% to $399.6 million from $349.9 million a year
earlier. Supply Chain Services segment adjusted EBITDA increased 12%, to
$210.9 million from $188.6 million for the prior year.
Performance Services segment net revenue for the first six months of
fiscal 2016 increased 26% to $162.9 million from $128.8 million a year
earlier, while segment adjusted EBITDA increased 43% to $59.4 million
from $41.6 million.
Cash Flows and Liquidity
Cash provided by operating activities was $138.8 million for the
six-month period ended December 31, 2015, compared with $153.7 million
for the same period a year ago. At December 31, 2015, the company’s
cash, cash equivalents and short- and long-term marketable securities
totaled $251.6 million, compared with $469.5 million at December 31,
2014, and consisted of $157.4 million in cash and cash equivalents and
$94.2 million in marketable securities with maturities ranging from
three months to five years. The reduction in cash, cash equivalents and
short- and long-term marketable securities, as compared to last year,
was due to the company’s acquisitions of CECity.Com, Inc., Healthcare
Insights, LLC and InflowHealth LLC during the first half of fiscal 2016.
Through the first six months of fiscal 2016, the company had capital
expenditures of $38.9 million.
Free cash flow for the quarter ended December 31, 2015 was $71.3
million, compared with $67.1 million for the same period last year. The
company continues to expect that 40% to 50% of adjusted EBITDA will
convert to free cash flow for the full fiscal year. The company does
expect variability in free cash flow in certain quarters as a result of
the timing of certain payments. The company defines free cash flow as
cash provided by operating activities less distributions to limited
partners, purchases of property and equipment, and payments to limited
partners under tax receivable agreements (see free cash flow
reconciliation to net cash provided by operating activities in the
tables section of this press release).
At December 31, 2015, the company had an outstanding balance of $100.0
million on its five-year $750.0 million revolving credit facility.
During the fiscal first quarter, the company borrowed $150.0 million to
partially fund the acquisition of CECity.Com, Inc. which closed on
August 20, 2015, and repaid $50.0 million in the fiscal second quarter.
Fiscal 2016 Outlook and Guidance
Based on fiscal second-quarter results and management’s current
expectations and assumptions for the remainder of fiscal 2016, the
company is raising full fiscal-year 2016 financial guidance as set forth
below.
|
Fiscal 2016 Financial Guidance
|
|
Premier, Inc. raises full-year fiscal 2016 financial guidance, as
follows:
|
|
|
|
Updated
|
|
|
|
Previous
|
|
(in millions, except per share data)
|
|
FY 2016
|
|
% YoY Increase
|
|
FY 2016
|
|
Net Revenue:
|
|
|
|
|
|
|
|
Supply Chain Services segment
|
|
$802 - $823
|
|
9% - 12%
|
|
$792 - $813
|
|
Performance Services segment
|
|
$352 - $362
|
|
31% - 35%
|
|
$352 - $362
|
|
Total Net Revenue
|
|
$1,154 - $1,185
|
|
15% - 18%
|
|
$1,144 - $1,175
|
|
|
|
|
|
|
|
|
|
Non-GAAP adjusted EBITDA
|
|
$430 - $449
|
|
9% - 14%
|
|
$425 - $444
|
|
|
|
|
|
|
|
|
|
Non-GAAP adjusted fully distributed EPS
|
|
$1.57 - $1.65
|
|
10% - 15%
|
|
$1.54 - $1.62
|
|
(1) Updated February 8, 2016. The Company does not
reconcile guidance for non-GAAP adjusted EBITDA and non-GAAP
adjusted fully distributed earnings per-share to net income (loss)
or GAAP earnings per share because the Company does not provide
guidance for reconciling items between net income (loss) and
non-GAAP adjusted EBITDA and non-GAAP adjusted fully distributed
earnings per share. The Company is unable to provide guidance for
these reconciling items since certain items that impact net income
(loss) are outside of the Company’s control and cannot be reasonably
predicted. Accordingly, a reconciliation to net income (loss) or
GAAP earnings per share is not available without unreasonable effort.
|
The company’s updated fiscal full-year 2016 outlook is based on
stronger-than-anticipated Supply Chain Services revenue and
stronger-than-expected adjusted EBITDA performance in both Supply Chain
Services and Performance Services segments in the first half of the
fiscal year. Key assumptions include: expectations of continued stable
growth in the Supply Chain Services segment through the continued (but
more normalized) growth of the company’s direct sourcing and specialty
pharmacy businesses; the addition and contract conversion ramp-up of new
GPO members; deeper penetration of existing members’ supply spend;
increased product and services sales in the Performance Services
segment, including sales and use of SaaS-based products; increased
member participation in performance improvement collaboratives and
increased demand for advisory services; the contribution from the
Centers for Medicare & Medicaid Services one-year contract award related
to the Partnership for Patients initiative that began in October 2015;
and the continuation of historically high retention and renewal rates of
Premier’s GPO and SaaS informatics products.
Guidance assumptions also include the integration and realization of
anticipated financial and operational contributions from the CECity,
Healthcare Insights and InflowHealth acquisitions previously announced
but do not contemplate the impact of any potential future acquisitions.
Premier expects fiscal 2016 capital expenditures of approximately $83
million and a consolidated EBITDA margin approximating 38%, as a result
of our intentional business mix shift related to our growth strategy and
the impact of the recent acquisitions.
The statements in this “Outlook and Guidance” discussion are
“forward-looking statements.” For additional information regarding the
use and limitations of such statements, see “Forward-Looking Statements”
below and the “Risk Factors” section of the company’s Form 10-K for the
fiscal year ended June 30, 2015.
Conference Call
Premier management will host a conference call and live audio webcast on
Monday, February 8, 2016, at 5:00 p.m. ET, to discuss the company’s
financial results. The conference call can be accessed through a link
provided on the investor relations page on Premier’s website at investors.premierinc.com.
To expedite access, participants should preregister at this website, at
which time the participant will be sent a confirmation email including
dial-in numbers and a unique PIN for those who wish to participate by
phone. A replay of the conference call will be available on the investor
relations page of Premier’s website.
About Premier, Inc.
Premier, Inc. (NASDAQ: PINC) is a leading healthcare improvement
company, uniting an alliance of approximately 3,600 U.S. hospitals and
120,000 other providers to transform healthcare. With integrated data
and analytics, collaboratives, supply chain solutions, and advisory and
other services, Premier enables better care and outcomes at a lower
cost. Premier, a Malcolm Baldrige National Quality Award recipient,
plays a critical role in the rapidly evolving healthcare industry,
collaborating with members to co-develop long-term innovations that
reinvent and improve the way care is delivered to patients nationwide.
Headquartered in Charlotte, N.C., Premier is passionate about
transforming American healthcare. Please visit Premier’s news and
investor sites on www.premierinc.com;
as well as Twitter,
Facebook,
LinkedIn,
YouTube,
Instagram,
Foursquare
and Premier’s
blog for more information about the company.
Use and Definition of Non-GAAP Measures
Premier uses EBITDA, adjusted EBITDA, segment adjusted EBITDA, adjusted
fully distributed net income, adjusted fully distributed earnings per
share, and free cash flow to facilitate a comparison of the company’s
operating performance on a consistent basis from period to period and to
provide measures that, when viewed in combination with its results
prepared in accordance with GAAP, allow for a more complete
understanding of factors and trends affecting the company’s business
than GAAP measures alone. The company believes adjusted EBITDA and
segment adjusted EBITDA assist its board of directors, management and
investors in comparing the company’s operating performance on a
consistent basis from period to period by removing the impact of the
company’s asset base (primarily depreciation and amortization) and items
outside the control of management (taxes), as well as other non-cash
(impairment of intangible assets and purchase accounting adjustments)
and non-recurring items, from operating results.
In addition, adjusted fully distributed net income eliminates the
variability of non-controlling interest as a result of member owner
exchanges of Class B common stock and corresponding Class B units into
shares of Class A common stock (which exchanges are a member owner’s
cumulative right, but not obligation, which began on October 31, 2014,
and occur each quarter thereafter, and are limited to one-seventh of the
member owner’s initial allocation of Class B common units) and other
potentially dilutive equity transactions which are outside of
management’s control. Adjusted fully distributed net income is defined
as net income attributable to PHSI (i) excluding income tax expense,
(ii) excluding the effect of non-recurring and non-cash items, (iii)
assuming the exchange of all the Class B common units for shares of
Class A common stock, which results in the elimination of
non-controlling interest in Premier LP, and (iv) reflecting an
adjustment for income tax expense on non-GAAP pro forma fully
distributed net income before income taxes at the company’s estimated
effective income tax rate.
EBITDA is defined as net income before interest and investment income,
net, income tax expense, depreciation and amortization and amortization
of purchased intangible assets. Adjusted EBITDA is defined as EBITDA
before merger and acquisition related expenses and non-recurring,
non-cash or non-operating items, and including equity in net income of
unconsolidated affiliates. Non-recurring items include certain strategic
and financial restructuring expenses. Non-operating items include gain
or loss on disposal of assets. Segment adjusted EBITDA is defined as the
segment's net revenue less operating expenses directly attributable to
the segment, excluding depreciation and amortization, amortization of
purchased intangible assets, merger and acquisition related expenses and
non-recurring or non-cash items, and including equity in net income of
unconsolidated affiliates. Operating expenses directly attributable to
the segment include expenses associated with sales and marketing,
general and administrative and product development activities specific
to the operation of each segment. General and administrative corporate
expenses that are not specific to a particular segment are not included
in the calculation of segment adjusted EBITDA. Adjusted EBITDA is a
supplemental financial measure used by the company and by external users
of the company’s financial statements.
Management considers adjusted EBITDA an indicator of the operational
strength and performance of the company’s business. Adjusted EBITDA
allows management to assess performance without regard to financing
methods and capital structure and without the impact of other matters
that management does not consider indicative of the operating
performance of the business. Segment adjusted EBITDA is the primary
earnings measure used by management to evaluate the performance of the
company’s business segments.
Free cash flow is defined as cash provided by operating activities less
distributions to limited partners and purchases of property and
equipment and payments to limited partners under tax receivable
agreements. Management believes free cash flow is an important measure
because it represents the cash that the company generates after payment
of tax distributions to limited partners and capital investment to
maintain existing products and services as well as development of new
and upgraded products and services to support future growth. Free cash
flow is important because it allows the Company to enhance stockholder
value through acquisitions, partnerships, investments in related or
complimentary businesses and debt reduction.
Forward-Looking Statements
Statements made in this release that are not statements of historical or
current facts, such as those under the heading “Fiscal 2016 Outlook and
Guidance” are “forward-looking statements” within the meaning of the
Private Securities Litigation Reform Act of 1995. Forward-looking
statements may involve known and unknown risks, uncertainties and other
factors that may cause the actual results, performance or achievements
of Premier to be materially different from historical results or from
any future results or projections expressed or implied by such
forward-looking statements. Accordingly, readers should not place undue
reliance on any forward looking statements. In addition to statements
that explicitly describe such risks and uncertainties, readers are urged
to consider statements in the conditional or future tenses or that
include terms such as “believes,” “belief,” “expects,” “estimates,”
“intends,” “anticipates” or “plans” to be uncertain and forward-looking.
Forward-looking statements may include comments as to Premier’s beliefs
and expectations as to future events and trends affecting its business
and are necessarily subject to uncertainties, many of which are outside
Premier’s control. More information on potential factors that could
affect Premier’s financial results is included from time to time in the
“Cautionary Note Regarding Forward-Looking Statements,” “Risk Factors”
and “Management’s Discussion and Analysis of Financial Condition and
Results of Operations” sections of Premier’s periodic and current
filings with the SEC, including those discussed under the “Risk Factors”
and “Cautionary Note Regarding Forward-Looking Statements” sections of
Premier’s Form 10-K for the fiscal year ended June 30, 2015 and also
made available on Premier’s website at investors.premierinc.com.
Forward-looking statements speak only as of the date they are made, and
Premier undertakes no obligation to publicly update or revise any
forward-looking statements, including as a result of new information or
future events that occur after that date.
|
Condensed Consolidated Statements of Income
|
|
|
|
(Unaudited)
|
|
|
|
(In thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Six Months Ended
December 31,
|
|
|
|
|
|
2015
|
|
|
2014
|
|
|
|
2015
|
|
|
2014
|
|
|
|
|
Net revenue:
|
|
|
|
|
|
|
|
|
Net administrative fees
|
$
|
120,733
|
|
$
|
112,675
|
|
|
$
|
238,682
|
|
$
|
219,198
|
|
|
|
|
Other services and support
|
|
89,620
|
|
|
70,074
|
|
|
|
164,725
|
|
|
129,295
|
|
|
|
|
Services
|
|
210,353
|
|
|
182,749
|
|
|
|
403,407
|
|
|
348,493
|
|
|
|
|
Products
|
|
81,316
|
|
|
66,696
|
|
|
|
159,097
|
|
|
130,260
|
|
|
|
|
Net revenue
|
|
291,669
|
|
|
249,445
|
|
|
|
562,504
|
|
|
478,753
|
|
|
|
|
Cost of revenue:
|
|
|
|
|
|
|
|
|
Services
|
|
40,492
|
|
|
35,276
|
|
|
|
78,616
|
|
|
68,040
|
|
|
|
|
Products
|
|
72,105
|
|
|
59,256
|
|
|
|
143,104
|
|
|
116,513
|
|
|
|
|
Cost of revenue
|
|
112,597
|
|
|
94,532
|
|
|
|
221,720
|
|
|
184,553
|
|
|
|
|
Gross profit
|
|
179,072
|
|
|
154,913
|
|
|
|
340,784
|
|
|
294,200
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
Selling, general and administrative
|
|
99,284
|
|
|
85,391
|
|
|
|
186,222
|
|
|
156,557
|
|
|
|
|
Research and development
|
|
424
|
|
|
716
|
|
|
|
880
|
|
|
1,789
|
|
|
|
|
Amortization of purchased intangible assets
|
|
9,271
|
|
|
3,141
|
|
|
|
15,318
|
|
|
4,044
|
|
|
|
|
Operating expenses
|
|
108,979
|
|
|
89,248
|
|
|
|
202,420
|
|
|
162,390
|
|
|
|
|
Operating income
|
|
70,093
|
|
|
65,665
|
|
|
|
138,364
|
|
|
131,810
|
|
|
|
|
Equity in net income of unconsolidated affiliates
|
|
4,785
|
|
|
4,749
|
|
|
|
9,375
|
|
|
9,615
|
|
|
|
|
Interest and investment (expense) income, net
|
|
(937
|
)
|
|
122
|
|
|
|
(696
|
)
|
|
313
|
|
|
|
|
Other expense, net
|
|
(272
|
)
|
|
(458
|
)
|
|
|
(2,081
|
)
|
|
(962
|
)
|
|
|
|
Other income, net
|
|
3,576
|
|
|
4,413
|
|
|
|
6,598
|
|
|
8,966
|
|
|
|
|
Income before income taxes
|
|
73,669
|
|
|
70,078
|
|
|
|
144,962
|
|
|
140,776
|
|
|
|
|
Income tax expense
|
|
12,674
|
|
|
4,270
|
|
|
|
31,714
|
|
|
10,081
|
|
|
|
|
Net income
|
|
60,995
|
|
|
65,808
|
|
|
|
113,248
|
|
|
130,695
|
|
|
|
|
Net income attributable to noncontrolling interest in S2S Global
|
|
—
|
|
|
(786
|
)
|
|
|
—
|
|
|
(1,584
|
)
|
|
|
|
Net income attributable to noncontrolling interest in Premier LP
|
|
(49,817
|
)
|
|
(55,751
|
)
|
|
|
(97,717
|
)
|
|
(110,567
|
)
|
|
|
|
Net income attributable to noncontrolling interest
|
|
(49,817
|
)
|
|
(56,537
|
)
|
|
|
(97,717
|
)
|
|
(112,151
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustment of redeemable limited partners' capital to redemption
amount
|
|
(65,561
|
)
|
|
(42,250
|
)
|
|
|
401,240
|
|
|
(424,907
|
)
|
|
|
|
Net income (loss) attributable to stockholders
|
$
|
(54,383
|
)
|
$
|
(32,979
|
)
|
|
$
|
416,771
|
|
$
|
(406,363
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
|
41,575
|
|
|
35,589
|
|
|
|
39,655
|
|
|
33,965
|
|
|
|
|
Diluted
|
|
41,575
|
|
|
35,589
|
|
|
|
148,167
|
|
|
33,965
|
|
|
|
|
Earnings (loss) per share attributable to stockholders (a)
|
|
|
|
|
|
|
|
|
Basic
|
$
|
(1.31
|
)
|
$
|
(0.93
|
)
|
|
$
|
10.51
|
|
$
|
(11.96
|
)
|
|
|
|
Diluted
|
$
|
(1.31
|
)
|
$
|
(0.93
|
)
|
|
$
|
0.60
|
|
$
|
(11.96
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Earnings (loss) per share attributable to
stockholders includes an adjustment to net income (loss)
attributable to stockholders of redeemable limited partners' capital
to redemption amount of ($65.6) million and ($42.2) million for the
three months ended December 31, 2015 and 2014, respectively, and
$401.2 million and ($424.9 million) for the six months ended
December 31, 2015 and 2014, respectively.
|
|
Condensed Consolidated Balance Sheets
|
|
(In thousands, except share and per share data)
|
|
|
|
|
|
|
December 31,
2015
|
June 30,
2015
|
|
|
(Unaudited)
|
(Audited)
|
|
Assets
|
|
|
|
Cash and cash equivalents
|
$
|
157,410
|
|
$
|
146,522
|
|
|
Marketable securities
|
|
42,205
|
|
|
240,667
|
|
|
Accounts receivable
|
|
125,052
|
|
|
99,120
|
|
|
Inventory
|
|
30,244
|
|
|
33,058
|
|
|
Prepaid expenses and other current assets
|
|
28,083
|
|
|
22,353
|
|
|
Due from related parties
|
|
3,764
|
|
|
3,444
|
|
|
Total current assets
|
|
386,758
|
|
|
545,164
|
|
|
Marketable securities
|
|
51,963
|
|
|
174,745
|
|
|
Property and equipment, net
|
|
163,044
|
|
|
147,625
|
|
|
Intangible assets, net
|
|
175,952
|
|
|
38,669
|
|
|
Goodwill
|
|
537,905
|
|
|
215,645
|
|
|
Deferred income tax assets
|
|
408,512
|
|
|
353,723
|
|
|
Deferred compensation plan assets
|
|
38,428
|
|
|
37,483
|
|
|
Other assets
|
|
25,418
|
|
|
17,137
|
|
|
Total assets
|
$
|
1,787,980
|
|
$
|
1,530,191
|
|
|
|
|
|
|
Liabilities, redeemable limited partners' capital and
stockholders' deficit
|
|
|
|
Accounts payable
|
$
|
25,829
|
|
$
|
37,634
|
|
|
Accrued expenses
|
|
48,163
|
|
|
41,261
|
|
|
Revenue share obligations
|
|
60,798
|
|
|
59,259
|
|
|
Limited partners' distribution payable
|
|
22,505
|
|
|
22,432
|
|
|
Accrued compensation and benefits
|
|
34,153
|
|
|
51,066
|
|
|
Deferred revenue
|
|
48,872
|
|
|
39,824
|
|
|
Current portion of tax receivable agreements
|
|
11,080
|
|
|
11,123
|
|
|
Current portion of long-term debt
|
|
4,046
|
|
|
2,256
|
|
|
Other liabilities
|
|
7,123
|
|
|
4,776
|
|
|
Total current liabilities
|
|
262,569
|
|
|
269,631
|
|
|
Long-term debt, less current portion
|
|
113,104
|
|
|
15,679
|
|
|
Tax receivable agreements, less current portion
|
|
275,621
|
|
|
224,754
|
|
|
Deferred compensation plan obligations
|
|
38,428
|
|
|
37,483
|
|
|
Other liabilities
|
|
21,081
|
|
|
20,914
|
|
|
Total liabilities
|
|
710,803
|
|
|
568,461
|
|
|
|
|
|
|
Redeemable limited partners' capital
|
|
3,523,690
|
|
|
4,079,832
|
|
|
|
|
|
|
Stockholders' deficit:
|
|
|
|
Class A common stock, $0.01 par value, 500,000,000 shares
authorized; 43,646,315 and
37,668,870 shares issued and outstanding at December 31, 2015 and
June 30, 2015,
respectively
|
|
436
|
|
|
377
|
|
|
Class B common stock, $0.000001 par value, 600,000,000 shares
authorized; 100,150,698 and
106,382,552 shares issued and outstanding at December 31, 2015 and
June 30, 2015,
respectively
|
|
—
|
|
|
—
|
|
|
Accumulated deficit
|
|
(2,446,788
|
)
|
|
(3,118,474
|
)
|
|
Accumulated other comprehensive loss
|
|
(161
|
)
|
|
(5
|
)
|
|
Total stockholders' deficit
|
|
(2,446,513
|
)
|
|
(3,118,102
|
)
|
|
Total liabilities, redeemable limited partners' capital and
stockholders' deficit
|
$
|
1,787,980
|
|
$
|
1,530,191
|
|
|
Condensed Consolidated Statements of Cash Flows
|
|
(Unaudited)
|
|
(In thousands)
|
|
|
|
|
|
|
Six Months Ended December 31,
|
|
|
|
2015
|
|
|
2014
|
|
|
|
|
|
|
Operating activities
|
|
|
|
Net income
|
$
|
113,248
|
|
$
|
130,695
|
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
Depreciation and amortization
|
|
39,382
|
|
|
25,614
|
|
|
Equity in net income of unconsolidated affiliates
|
|
(9,375
|
)
|
|
(9,615
|
)
|
|
Deferred income taxes
|
|
21,331
|
|
|
917
|
|
|
Stock-based compensation
|
|
25,022
|
|
|
13,844
|
|
|
Employee stock purchase plan expense
|
|
232
|
|
|
—
|
|
|
Adjustment to tax receivable agreement liability
|
|
(4,818
|
)
|
|
1,073
|
|
|
Changes in operating assets and liabilities:
|
|
|
|
Accounts receivable, prepaid expenses and other current assets
|
|
(26,245
|
)
|
|
(11,276
|
)
|
|
Other assets
|
|
(10,853
|
)
|
|
(3,754
|
)
|
|
Inventory
|
|
2,814
|
|
|
(6,854
|
)
|
|
Accounts payable, accrued expenses, revenue share obligations and
other current liabilities
|
|
(12,376
|
)
|
|
11,246
|
|
|
Long-term liabilities
|
|
166
|
|
|
674
|
|
|
Other operating activities
|
|
308
|
|
|
1,151
|
|
|
Net cash provided by operating activities
|
|
138,836
|
|
|
153,715
|
|
|
Investing activities
|
|
|
|
Purchase of marketable securities
|
|
(19,211
|
)
|
|
(123,536
|
)
|
|
Proceeds from sale of marketable securities
|
|
339,674
|
|
|
190,734
|
|
|
Acquisition of CECity.com, Inc., net of cash acquired
|
|
(398,261
|
)
|
|
—
|
|
|
Acquisition of Healthcare Insights, LLC, net of cash acquired
|
|
(64,634
|
)
|
|
—
|
|
|
Acquisition of InFlow Health, LLC
|
|
(10,197
|
)
|
|
—
|
|
|
Acquisition of Aperek, Inc., net of cash acquired
|
|
—
|
|
|
(47,446
|
)
|
|
Acquisition of TheraDoc, Inc., net of cash acquired
|
|
—
|
|
|
(108,561
|
)
|
|
Investment in unconsolidated affiliate
|
|
(1,000
|
)
|
|
—
|
|
|
Distributions received on equity investment
|
|
11,743
|
|
|
10,050
|
|
|
Purchases of property and equipment
|
|
(38,882
|
)
|
|
(32,411
|
)
|
|
Other investing activities
|
|
(5
|
)
|
|
353
|
|
|
Net cash used in investing activities
|
|
(180,773
|
)
|
|
(110,817
|
)
|
|
Financing activities
|
|
|
|
Payments made on notes payable
|
|
(1,336
|
)
|
|
(684
|
)
|
|
Proceeds from S2S Global revolving line of credit
|
|
—
|
|
|
800
|
|
|
Payments on S2S Global revolving line of credit
|
|
—
|
|
|
(500
|
)
|
|
Proceeds from credit facility
|
|
150,000
|
|
|
—
|
|
|
Payments on senior secured line of credit
|
|
(50,000
|
)
|
|
—
|
|
|
Proceeds from exercise of stock options under equity incentive plan
|
|
237
|
|
|
446
|
|
|
Proceeds from issuance of Class A common stock under stock purchase
plan
|
|
1,302
|
|
|
—
|
|
|
Repurchase of restricted units
|
|
(46
|
)
|
|
(31
|
)
|
|
Final remittance of net income attributable to S2S Global before
February 1, 2015
|
|
(1,890
|
)
|
|
—
|
|
|
Distributions to limited partners of Premier LP
|
|
(45,461
|
)
|
|
(45,099
|
)
|
|
Other financing activities
|
|
19
|
|
|
—
|
|
|
Net cash provided by (used in) financing activities
|
|
52,825
|
|
|
(45,068
|
)
|
|
Net decrease in cash and cash equivalents
|
|
10,888
|
|
|
(2,170
|
)
|
|
Cash and cash equivalents at beginning of period
|
|
146,522
|
|
|
131,786
|
|
|
Cash and cash equivalents at end of period
|
$
|
157,410
|
|
$
|
129,616
|
|
|
Supplemental Financial Information - Reporting of Adjusted EBITDA
|
|
|
|
and Non-GAAP Adjusted Fully Distributed Net Income
|
|
|
|
Reconciliation of Selected Non-GAAP Measures to GAAP Measures
|
|
|
|
(Unaudited)
|
|
|
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Six Months Ended
December 31,
|
|
|
|
|
|
|
2015
|
|
|
2014
|
|
|
|
2015
|
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net Income to Adjusted EBITDA and
Reconciliation of Segment Adjusted EBITDA to Income Before Income
Taxes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
60,995
|
|
$
|
65,808
|
|
|
$
|
113,248
|
|
$
|
130,695
|
|
|
|
|
Interest and investment income, net
|
|
|
937
|
|
|
(122
|
)
|
|
|
696
|
|
|
(313
|
)
|
|
|
|
Income tax expense
|
|
|
12,674
|
|
|
4,270
|
|
|
|
31,714
|
|
|
10,081
|
|
|
|
|
Depreciation and amortization
|
|
|
12,199
|
|
|
11,262
|
|
|
|
24,064
|
|
|
21,570
|
|
|
|
|
Amortization of purchased intangible assets
|
|
|
9,271
|
|
|
3,141
|
|
|
|
15,318
|
|
|
4,044
|
|
|
|
|
EBITDA
|
|
|
96,076
|
|
|
84,359
|
|
|
|
185,040
|
|
|
166,077
|
|
|
|
|
Stock-based compensation
|
|
|
11,554
|
|
|
7,405
|
|
|
|
25,254
|
|
|
13,844
|
|
|
|
|
Acquisition related expenses
|
|
|
5,644
|
|
|
2,267
|
|
|
|
9,116
|
|
|
3,545
|
|
|
|
|
Strategic and financial restructuring expenses
|
|
|
208
|
|
|
1,183
|
|
|
|
235
|
|
|
1,279
|
|
|
|
|
ERP implementation expenses
|
|
|
1,518
|
|
|
—
|
|
|
|
2,078
|
|
|
—
|
|
|
|
|
Adjustment to tax receivable agreement liability
|
|
|
—
|
|
|
—
|
|
|
|
(4,818
|
)
|
|
(1,073
|
)
|
|
|
|
Acquisition related adjustment - deferred revenue
|
|
|
1,047
|
|
|
3,596
|
|
|
|
4,139
|
|
|
5,661
|
|
|
|
|
Other income, net
|
|
|
8
|
|
|
(2
|
)
|
|
|
8
|
|
|
(7
|
)
|
|
|
|
Adjusted EBITDA
|
|
$
|
116,055
|
|
$
|
98,808
|
|
|
$
|
221,052
|
|
$
|
189,326
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Adjusted EBITDA:
|
|
|
|
|
|
|
|
|
|
Supply Chain Services
|
|
$
|
107,989
|
|
$
|
97,342
|
|
|
$
|
210,938
|
|
$
|
188,610
|
|
|
|
|
Performance Services
|
|
|
34,462
|
|
|
23,189
|
|
|
|
59,387
|
|
|
41,551
|
|
|
|
|
Corporate
|
|
|
(26,396
|
)
|
|
(21,723
|
)
|
|
|
(49,273
|
)
|
|
(40,835
|
)
|
|
|
|
Adjusted EBITDA
|
|
$
|
116,055
|
|
$
|
98,808
|
|
|
$
|
221,052
|
|
$
|
189,326
|
|
|
|
|
Depreciation and amortization
|
|
|
(12,199
|
)
|
|
(11,262
|
)
|
|
|
(24,064
|
)
|
|
(21,570
|
)
|
|
|
|
Amortization of purchased intangible assets
|
|
|
(9,271
|
)
|
|
(3,141
|
)
|
|
|
(15,318
|
)
|
|
(4,044
|
)
|
|
|
|
Stock-based compensation
|
|
|
(11,554
|
)
|
|
(7,405
|
)
|
|
|
(25,254
|
)
|
|
(13,844
|
)
|
|
|
|
Acquisition related expenses
|
|
|
(5,644
|
)
|
|
(2,267
|
)
|
|
|
(9,116
|
)
|
|
(3,545
|
)
|
|
|
|
Strategic and financial restructuring expenses
|
|
|
(208
|
)
|
|
(1,183
|
)
|
|
|
(235
|
)
|
|
(1,279
|
)
|
|
|
|
ERP implementation expenses
|
|
|
(1,518
|
)
|
|
—
|
|
|
|
(2,078
|
)
|
|
—
|
|
|
|
|
Adjustment to tax receivable agreement liability
|
|
|
—
|
|
|
—
|
|
|
|
4,818
|
|
|
1,073
|
|
|
|
|
Acquisition related adjustment - deferred revenue
|
|
|
(1,047
|
)
|
|
(3,596
|
)
|
|
|
(4,139
|
)
|
|
(5,661
|
)
|
|
|
|
Equity in net income of unconsolidated affiliates
|
|
|
(4,785
|
)
|
|
(4,749
|
)
|
|
|
(9,375
|
)
|
|
(9,615
|
)
|
|
|
|
Deferred compensation plan expense
|
|
|
264
|
|
|
460
|
|
|
|
2,073
|
|
|
969
|
|
|
|
|
Operating income
|
|
$
|
70,093
|
|
$
|
65,665
|
|
|
$
|
138,364
|
|
$
|
131,810
|
|
|
|
|
Equity in net income of unconsolidated affiliates
|
|
|
4,785
|
|
|
4,749
|
|
|
|
9,375
|
|
|
9,615
|
|
|
|
|
Interest and investment income, net
|
|
|
(937
|
)
|
|
122
|
|
|
|
(696
|
)
|
|
313
|
|
|
|
|
Other expense, net
|
|
|
(272
|
)
|
|
(458
|
)
|
|
|
(2,081
|
)
|
|
(962
|
)
|
|
|
|
Income before income taxes
|
|
$
|
73,669
|
|
$
|
70,078
|
|
|
$
|
144,962
|
|
$
|
140,776
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net Income (Loss) Attributable to
Stockholders to Non-GAAP Adjusted Fully Distributed Net Income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to stockholders
|
|
$
|
(54,383
|
)
|
$
|
(32,979
|
)
|
|
$
|
416,771
|
|
$
|
(406,363
|
)
|
|
|
|
Adjustment of redeemable partners' capital to redemption amount
|
|
|
65,561
|
|
|
42,250
|
|
|
|
(401,240
|
)
|
|
424,907
|
|
|
|
|
Income tax expense
|
|
|
12,674
|
|
|
4,270
|
|
|
|
31,714
|
|
|
10,081
|
|
|
|
|
Stock-based compensation
|
|
|
11,554
|
|
|
7,405
|
|
|
|
25,254
|
|
|
13,844
|
|
|
|
|
Acquisition related expenses
|
|
|
5,644
|
|
|
2,267
|
|
|
|
9,116
|
|
|
3,545
|
|
|
|
|
Strategic and financial restructuring expenses
|
|
|
208
|
|
|
1,183
|
|
|
|
235
|
|
|
1,279
|
|
|
|
|
ERP implementation expenses
|
|
|
1,518
|
|
|
—
|
|
|
|
2,078
|
|
|
—
|
|
|
|
|
Adjustment to tax receivable agreement liability
|
|
|
—
|
|
|
—
|
|
|
|
(4,818
|
)
|
|
(1,073
|
)
|
|
|
|
Acquisition related adjustment - deferred revenue
|
|
|
1,047
|
|
|
3,596
|
|
|
|
4,139
|
|
|
5,661
|
|
|
|
|
Amortization of purchased intangible assets
|
|
|
9,271
|
|
|
3,141
|
|
|
|
15,318
|
|
|
4,044
|
|
|
|
|
Net income attributable to noncontrolling interest in Premier LP
|
|
|
49,817
|
|
|
55,751
|
|
|
|
97,717
|
|
|
110,567
|
|
|
|
|
Non-GAAP fully distributed income before income taxes
|
|
|
102,911
|
|
|
86,884
|
|
|
|
196,284
|
|
|
166,492
|
|
|
|
|
Income tax expense on fully distributed income before income taxes
|
|
|
41,164
|
|
|
34,754
|
|
|
|
78,514
|
|
|
66,597
|
|
|
|
|
Non-GAAP Adjusted Fully Distributed Net Income
|
|
$
|
61,747
|
|
$
|
52,130
|
|
|
$
|
117,770
|
|
$
|
99,895
|
|
|
|
|
Supplemental Financial Information - Reporting of Non-GAAP Free
Cash Flow
|
|
Reconciliation of Selected Non-GAAP Measures to GAAP Measures
|
|
(Unaudited)
|
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Three Months Ended
September 30,
|
|
Six Months Ended
December 31,
|
|
|
|
|
2015
|
|
|
2014
|
|
|
|
2015
|
|
|
2014
|
|
|
|
2015
|
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net Cash Provided by Operating Activities to
Non-GAAP Free Cash Flow:
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities
|
|
$
|
116,117
|
|
$
|
107,842
|
|
|
$
|
22,719
|
|
$
|
45,873
|
|
|
$
|
138,836
|
|
$
|
153,715
|
|
|
Purchases of property and equipment
|
|
|
(21,741
|
)
|
$
|
(18,051
|
)
|
|
|
(17,141
|
)
|
|
(14,360
|
)
|
|
|
(38,882
|
)
|
|
(32,411
|
)
|
|
Distributions to limited partners
|
|
|
(23,029
|
)
|
$
|
(22,691
|
)
|
|
|
(22,432
|
)
|
|
(22,408
|
)
|
|
|
(45,461
|
)
|
|
(45,099
|
)
|
|
Non-GAAP Free Cash Flow
|
|
$
|
71,347
|
|
$
|
67,100
|
|
|
$
|
(16,854
|
)
|
$
|
9,105
|
|
|
$
|
54,493
|
|
$
|
76,205
|
|
|
Supplemental Financial Information - Reporting of Net Income and
Earnings Per Share
|
|
Reconciliation of Selected Non-GAAP Measures to GAAP Measures
|
|
(Unaudited)
|
|
(In thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
Six Months Ended
December 31,
|
|
|
|
2015
|
|
|
2014
|
|
|
|
2015
|
|
|
2014
|
|
|
|
|
|
|
|
|
|
Reconciliation of numerator for GAAP EPS to Non-GAAP EPS on
Adjusted Fully Distributed Net Income
|
|
|
Net income (loss) attributable to stockholders
|
$
|
(54,383
|
)
|
$
|
(32,979
|
)
|
|
$
|
416,771
|
|
$
|
(406,363
|
)
|
|
Adjustment of redeemable limited partners' capital to redemption
amount
|
|
65,561
|
|
|
42,250
|
|
|
|
(401,240
|
)
|
|
424,907
|
|
|
Income tax expense
|
|
12,674
|
|
|
4,270
|
|
|
|
31,714
|
|
|
10,081
|
|
|
Stock-based compensation
|
|
11,554
|
|
|
7,405
|
|
|
|
25,254
|
|
|
13,844
|
|
|
Acquisition related expenses
|
|
5,644
|
|
|
2,267
|
|
|
|
9,116
|
|
|
3,545
|
|
|
Strategic and financial restructuring expenses
|
|
208
|
|
|
1,183
|
|
|
|
235
|
|
|
1,279
|
|
|
ERP implementation expenses
|
|
1,518
|
|
|
—
|
|
|
|
2,078
|
|
|
—
|
|
|
Adjustment to tax receivable agreement liability
|
|
—
|
|
|
—
|
|
|
|
(4,818
|
)
|
|
(1,073
|
)
|
|
Acquisition related adjustment - deferred revenue
|
|
1,047
|
|
|
3,596
|
|
|
|
4,139
|
|
|
5,661
|
|
|
Amortization of purchased intangible assets
|
|
9,271
|
|
|
3,141
|
|
|
|
15,318
|
|
|
4,044
|
|
|
Net income attributable to noncontrolling interest in Premier LP
|
|
49,817
|
|
|
55,751
|
|
|
|
97,717
|
|
|
110,567
|
|
|
Non-GAAP fully distributed income before income taxes
|
|
102,911
|
|
|
86,884
|
|
|
|
196,284
|
|
|
166,492
|
|
|
Income tax expense on fully distributed income before income taxes
|
|
41,164
|
|
|
34,754
|
|
|
|
78,514
|
|
|
66,597
|
|
|
Non-GAAP adjusted fully distributed net income
|
$
|
61,747
|
|
$
|
52,130
|
|
|
$
|
117,770
|
|
$
|
99,895
|
|
|
|
|
|
|
|
|
|
Reconciliation of denominator for GAAP EPS to Non-GAAP
Adjusted Fully Distributed Net Income
|
|
|
|
Weighted Average:
|
|
|
|
|
|
|
Common shares used for basic and diluted earnings (loss) per share
|
|
41,575
|
|
|
35,589
|
|
|
|
39,655
|
|
|
33,965
|
|
|
Potentially dilutive shares
|
|
2,341
|
|
|
948
|
|
|
|
2,129
|
|
|
785
|
|
|
Conversion of Class B common units
|
|
102,178
|
|
|
108,674
|
|
|
|
104,143
|
|
|
110,396
|
|
|
Weighted average fully distributed shares outstanding - diluted
|
|
146,094
|
|
|
145,211
|
|
|
|
145,927
|
|
|
145,146
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP EPS to Non-GAAP Adjusted Fully
Distributed EPS
|
|
|
|
|
|
GAAP earnings (loss) per share
|
$
|
(1.31
|
)
|
$
|
(0.93
|
)
|
|
$
|
10.51
|
|
$
|
(11.96
|
)
|
|
Impact of adjustment of redeemable limited partners' capital to
redemption amount
|
$
|
1.58
|
|
$
|
1.19
|
|
|
$
|
(10.12
|
)
|
$
|
12.51
|
|
|
Impact of additions:
|
|
|
|
|
|
|
Income tax expense
|
$
|
0.30
|
|
$
|
0.12
|
|
|
$
|
0.80
|
|
$
|
0.30
|
|
|
Stock-based compensation
|
$
|
0.28
|
|
$
|
0.21
|
|
|
$
|
0.64
|
|
$
|
0.41
|
|
|
Acquisition related expenses
|
$
|
0.14
|
|
$
|
0.06
|
|
|
$
|
0.23
|
|
$
|
0.10
|
|
|
Strategic and financial restructuring expenses
|
$
|
-
|
|
$
|
0.03
|
|
|
$
|
0.01
|
|
$
|
0.04
|
|
|
ERP implementation expenses
|
$
|
0.04
|
|
$
|
-
|
|
|
$
|
0.05
|
|
$
|
-
|
|
|
Adjustment to tax receivable agreement liability
|
$
|
-
|
|
$
|
-
|
|
|
$
|
(0.12
|
)
|
$
|
(0.03
|
)
|
|
Acquisition related adjustment - deferred revenue
|
$
|
0.02
|
|
$
|
0.10
|
|
|
$
|
0.10
|
|
$
|
0.17
|
|
|
Amortization of purchased intangible assets
|
$
|
0.22
|
|
$
|
0.09
|
|
|
$
|
0.39
|
|
$
|
0.12
|
|
|
Net income attributable to noncontrolling interest in Premier LP
|
$
|
1.20
|
|
$
|
1.57
|
|
|
$
|
2.46
|
|
$
|
3.25
|
|
|
Impact of corporation taxes
|
$
|
(0.99
|
)
|
$
|
(0.98
|
)
|
|
$
|
(1.98
|
)
|
$
|
(1.96
|
)
|
|
Impact of increased share count
|
$
|
(1.06
|
)
|
$
|
(1.10
|
)
|
|
$
|
(2.16
|
)
|
$
|
(2.26
|
)
|
|
Non-GAAP earnings per share on adjusted fully distributed net
income - diluted
|
$
|
0.42
|
|
$
|
0.36
|
|
|
$
|
0.81
|
|
$
|
0.69
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20160208006270/en/
Source: Premier, Inc. Premier, Inc.