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So, how did they do?
Premier, Inc. (Nasdaq:PINC) today reported financial results for the fiscal 2014 fourth quarter and full year ended June 30, 2014.
Fiscal-Year Highlights:
Pro forma results reflect the impact of the company’s reorganization and initial public offering (IPO)*.
– On a pro forma basis, net revenue of $869.3 million increased 14% from the prior year – Supply Chain Services segment revenue rose 14% and Performance Services segment revenue increased 13%. GAAP net revenue* of $910.5 million increased 5% from GAAP net revenue for the prior year.
– On a pro forma basis, adjusted EBITDA of $351.0 million increased 12% from the prior year – Supply Chain Services segment pro forma adjusted EBITDA increased 9% and Performance Services segment pro forma adjusted EBITDA rose 31%.
– On a pro forma basis, adjusted fully distributed net income increased 9% to $188.6 million, or $1.30 per diluted share from a year ago. GAAP net income* attributable to shareholders was $28.3 million.
– For the fiscal year ended June 30, 2014, the company generated cash flow from operations of $368.1 million. At June 30, 2014, the company’s cash, cash equivalents and short- and long-term marketable securities totaled $540.4 million, compared with $255.6 million at June 30, 2013.
Fourth-Quarter Highlights:
Pro forma results reflect the impact of the company’s reorganization and IPO*.
– Net revenue of $235.5 million increased 17% from pro forma net revenue for the same period a year ago – Supply Chain Services segment revenue rose 18% and Performance Services segment revenue increased 15%. GAAP net revenue* for the same period a year ago was $240.6 million.
– Adjusted EBITDA of $93.2 million increased 19% from pro forma adjusted EBITDA for the same period a year ago – Supply Chain Services segment adjusted EBITDA increased 15% and Performance Services segment adjusted EBITDA rose 36%.
– Adjusted fully distributed net income increased 18% to $49.9 million, or $0.34 per diluted share from pro forma results for the same period a year ago. GAAP net income* attributable to shareholders was $8.9 million.
* Actual results prior to the company’s reorganization and IPO consummated on October 1, 2013, do not reflect the impact of the reorganization and IPO, and therefore, management believes they do not provide meaningful year-over-year comparisons. A description of adjusted EBITDA and other non-GAAP financial measures is provided in “Use and Definition of Non-GAAP Measures,” and reconciliations are provided in the tables at the end of this release. See “Reorganization and Initial Public Offering” for important information regarding pro forma results.
Acquisition Activity:
– In fiscal 2014, Premier acquired three companies for a total of $42.6 million in cash as part of its strategy to enhance existing capabilities and better serve its members: SYMMEDRx, LLC, a physician preference contract management and data service company; Meddius, LLC, a data acquisition and integration-as-a-service company; and MEMdata, LLC, a capital equipment planning, sourcing and analytics company. All have been integrated into Premier’s Performance Services segment.
– On August 5, 2014, Premier announced an agreement to acquire TheraDoc, Inc., a market leading provider of clinical surveillance software, for $117.0 million in cash, subject to potential purchase price adjustment based on TheraDoc’s working capital, cash and indebtedness at closing. The acquisition is subject to customary closing conditions.
– On August 25, 2014, Premier signed a definitive agreement to acquire Aperek, Inc. (formerly Mediclick), a SaaS-based (software as a service) supply chain solutions company focused on purchasing workflow and analytics, for $48.5 million, subject to potential purchase price adjustment based on Aperek’s working capital at time of closing. The acquisition is subject to customary closing conditions.
“We are pleased to report a very strong finish to our successful first year as a public company,” said Susan DeVore, president and chief executive officer. “Financially and operationally, we performed extremely well, delivering double-digit percentage gains in revenue and adjusted EBITDA as we added, renewed and expanded member relationships through innovative product and service offerings.
“Our strong fourth-quarter and fiscal-year financial performance demonstrates the exceptional service and value we provide to our approximately 3,000 member hospitals and 110,000 alternate site providers,” DeVore continued. “We believe this solid performance speaks to our leadership role in developing measurable cost, quality, safety and population health management solutions necessary to transform delivery of healthcare in America.
“Looking ahead, we expect to further leverage our market-leading data analytics platform, aligned delivery channel and collaborative member relationships in our ongoing commitment to deliver effective solutions to the marketplace and drive long-term performance for our shareholders,” DeVore added. “A key element supporting this strategy is our capital deployment plan, which includes acquisitions that complement and enhance our existing capabilities. Our acquisition strategy is on track, evidenced by the three companies acquired in fiscal 2014, our agreement earlier this month to acquire TheraDoc, a market leading provider of clinical surveillance software, and the execution today of an agreement to acquire Aperek, which focuses on supply chain workflow analytics. Our pipeline of potential new opportunities remains active. We plan to continue deploying capital during fiscal 2015 in a disciplined manner, focusing on attractive areas that align with our business objectives.”
