Premier, Inc. (PINC) Bundle
A Brief History of H3
As of 2024, H3 has undergone significant transformations and financial developments. Following a strategic review, the company divested its non-healthcare GPO member contracts to OMNIA on July 25, 2023, for a total purchase price of $723.8 million, which has been fully received as of September 30, 2024.
Financial Performance
For the three months ended September 30, 2024, H3 reported a net income attributable to stockholders of $70.784 million, compared to $44.761 million in the same period of 2023. This reflects a substantial increase in earnings driven by improved operational efficiencies and revenue management.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income Attributable to Stockholders | $70.784 million | $44.761 million |
| Earnings Per Share (Basic) | $0.71 | $0.38 |
| Operating Income | $75.790 million | $96.451 million |
| Adjusted EBITDA | $62.428 million | $93.308 million |
Share Repurchase Program
In February 2024, H3's Board of Directors authorized a share repurchase program of up to $1 billion. By the end of September 2024, the company had repurchased 2.9 million shares at an average price of $20.18 per share, totaling $58 million.
Dividend Payments
H3 paid a cash dividend of $0.21 per share in September 2024, with an additional quarterly dividend of $0.21 per share declared on October 24, 2024, payable on December 15, 2024.
Liquidity and Capital Resources
As of September 30, 2024, H3 had cash and cash equivalents totaling $87 million, down from $125.1 million at June 30, 2024. The company maintained no outstanding borrowings under its credit facility, reflecting strong liquidity management.
Operational Changes and Cost Management
Operating expenses increased by 4% to $42.176 million in Q3 2024 compared to Q3 2023. However, the company reported a 3% increase in Adjusted EBITDA, indicating improved cost efficiency.
| Operating Expenses | Q3 2024 | Q3 2023 |
|---|---|---|
| Operating Expenses | $42.176 million | $40.624 million |
| Adjusted EBITDA | $(30.032) million | $(31.009) million |
Future Outlook
H3 expects to continue its focus on operational efficiencies, maintaining a robust cash position, and executing its share repurchase program while balancing dividend payments. The strategic sale of non-core assets is anticipated to enhance future growth prospects and shareholder value.
A Who Owns Premier, Inc. (PINC)
Major Shareholders
As of September 30, 2024, the ownership structure of Premier, Inc. (PINC) is characterized by a mix of institutional and individual shareholders. The following table outlines the major shareholders and their respective ownership percentages:
| Shareholder | Ownership Percentage (%) | Type |
|---|---|---|
| BlackRock, Inc. | 10.5 | Institutional |
| The Vanguard Group, Inc. | 9.2 | Institutional |
| State Street Corporation | 7.8 | Institutional |
| Wellington Management Company, LLP | 5.3 | Institutional |
| Invesco Ltd. | 4.9 | Institutional |
| Individual Investors | 62.3 | Retail |
Stock Performance and Share Repurchase Program
Premier, Inc. has been active in managing its share count through share repurchase programs. As of September 30, 2024, the company completed the repurchase of 19.9 million shares under an accelerated share repurchase agreement at an average price of $20.12 per share. The total cost of this repurchase was approximately $400 million.
Recent Financial Performance
For the three months ended September 30, 2024, Premier, Inc. reported the following financial metrics:
| Metric | Value (in thousands) |
|---|---|
| Net Revenue | $248,142 |
| Net Income from Continuing Operations | $72,940 |
| Basic Earnings per Share | $0.71 |
| Diluted Earnings per Share | $0.70 |
| Cash Dividends (per share) | $0.21 |
Institutional Ownership Insights
Institutional investors hold a significant portion of Premier, Inc.'s shares, amounting to approximately 37.7% of total ownership. This reflects a strong interest from large investment firms, which often indicates confidence in the company's growth prospects and stability.
Recent Strategic Developments
In February 2024, the Board of Directors authorized the repurchase of up to $1 billion of outstanding Class A common stock. This decision aligns with the company's strategy to enhance shareholder value.
Market Capitalization
As of September 30, 2024, the market capitalization of Premier, Inc. is approximately $2.06 billion based on the share price of $20.12.
Dividend History
Premier, Inc. has maintained a consistent dividend policy, paying quarterly dividends of $0.21 per share. The most recent dividend was declared on October 24, 2024, payable on December 15, 2024.
Future Outlook
Premier, Inc. continues to explore strategic alternatives and partnerships to enhance its operational capabilities and market position. The company remains focused on leveraging its assets and expanding its market share in the healthcare services sector.
Premier, Inc. (PINC) Mission Statement
As of 2024, Premier, Inc. emphasizes its commitment to transforming healthcare through innovative solutions, focusing on improving clinical, operational, and financial outcomes for its members, which include hospitals and health systems across the United States. The company's mission statement encapsulates its goal to leverage technology and data analytics to enhance the quality of care while reducing costs.
Financial Overview
In the three months ended September 30, 2024, Premier, Inc. reported the following key financial figures:
| Financial Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Revenue | $248,142,000 | $269,026,000 |
| Net Income from Continuing Operations | $72,940,000 | $41,769,000 |
| Non-GAAP Adjusted EBITDA | $62,428,000 | $93,308,000 |
Share Repurchase Program
In 2024, Premier's Board of Directors authorized a share repurchase program for up to $1.0 billion of its common stock. The company executed an accelerated share repurchase agreement (ASR) with Bank of America for $400 million. As of July 11, 2024, a total of 19.9 million shares were repurchased at an average price of $20.12 per share.
Business Segments and Revenue Breakdown
Premier operates through two primary business segments: Supply Chain Services and Performance Services. The revenue breakdown for the three months ended September 30, 2024, is as follows:
| Segment | Net Revenue (Q3 2024) | Net Revenue (Q3 2023) | Change |
|---|---|---|---|
| Supply Chain Services | $151,388,000 | $163,276,000 | $(11,888,000) (7%) |
| Performance Services | $96,754,000 | $105,750,000 | $(8,996,000) (9%) |
| Total | $248,142,000 | $269,026,000 | $(20,884,000) (8%) |
Capital Structure and Stockholder's Equity
As of September 30, 2024, Premier, Inc. reported the following stockholder's equity metrics:
| Equity Component | Amount |
|---|---|
| Class A Common Stock | $978,000 |
| Treasury Stock | $(250,129,000) |
| Additional Paid-In Capital | $2,188,208,000 |
| Retained Earnings | $(234,995,000) |
| Total Stockholders' Equity | $1,954,183,000 |
Cash Dividends
In September 2024, Premier, Inc. paid a cash dividend of $0.21 per share on its outstanding Class A common stock. Another dividend of the same amount was declared for payment on December 15, 2024.
Debt and Liabilities
As of September 30, 2024, Premier, Inc. reported total liabilities of $1,359,415,000, which includes:
| Liability Component | Amount |
|---|---|
| Current Liabilities | $648,548,000 |
| Long-Term Liabilities | $710,867,000 |
The company also has a non-recourse commitment of $672.6 million related to the sale of future revenues associated with non-healthcare GPO member contracts.
How Premier, Inc. (PINC) Works
Business Model
Premier, Inc. operates primarily through two segments: Supply Chain Services and Performance Services. Its offerings include integrated platforms designed to improve healthcare quality and cost-effectiveness by providing access to scale efficiencies and actionable intelligence derived from anonymized data.
Financial Performance
For the three months ended September 30, 2024, Premier reported the following financial results:
| Metric | Q3 2024 (in $ thousands) | Q3 2023 (in $ thousands) | Change (%) |
|---|---|---|---|
| Net Revenue | 248,142 | 269,026 | (7) |
| Net Income from Continuing Operations | 72,940 | 41,769 | 74 |
| Adjusted EBITDA | 62,428 | 93,308 | (33) |
| Basic Earnings per Share | 0.71 | 0.38 | 87 |
| Diluted Earnings per Share | 0.70 | 0.37 | 89 |
Revenue Breakdown
The revenue for the Supply Chain Services segment for the three months ended September 30, 2024 was impacted by:
- Net Administrative Fees: $132,625 (53% of total revenue), down from $149,886.
- Software Licenses, Other Services and Support: $115,517 (47% of total revenue), slightly down from $119,140.
Cost Structure
In the same quarter, the cost of revenue was $67,724, representing 27% of net revenue, compared to $64,132 (24% of net revenue) in Q3 2023. This led to a gross profit of $180,418, which was 73% of net revenue, down from $204,894 (76% of net revenue).
Operating Expenses
Operating expenses totaled $145,103, which accounted for 58% of net revenue. This was a slight decrease from $146,554 in the previous year. The breakdown of operating expenses included:
- Selling, General and Administrative: $134,880
- Research and Development: $586
- Amortization of Purchased Intangible Assets: $9,637
Cash Flow and Liquidity
As of September 30, 2024, Premier had cash and cash equivalents of $87.0 million, down from $125.1 million as of June 30, 2024. The company had no outstanding borrowings under its credit facility, which had a total borrowing capacity of $1.0 billion.
Share Repurchase Program
In February 2024, Premier authorized a share repurchase program of up to $1.0 billion. As of September 30, 2024, the company had repurchased 7.7 million shares at an average price of $20.14 per share, with $542 million remaining under the repurchase authorization.
Dividends
Premier declared a cash dividend of $0.21 per share, payable on December 15, 2024, to stockholders of record on December 1, 2024. This dividend reflects ongoing shareholder returns amid the company's financial strategies.
Debt Obligations
At September 30, 2024, Premier had total liabilities of $1,359,415, including:
- Current Portion of Liability Related to Sale of Future Revenues: $41,331
- Notes Payable to Former Limited Partners: $76,317
- Accrued Compensation and Benefits: $45,072
Investments
The company reported its investments in unconsolidated affiliates at a total carrying value of $230,395, which includes interests in various healthcare-related entities.
Future Outlook
Premier's strategic focus continues to be on enhancing its service offerings and operational efficiencies within the healthcare sector. The company is actively exploring partnerships to optimize its health benefits services and streamline its supply chain operations.
How Premier, Inc. (PINC) Makes Money
Revenue Streams
Premier, Inc. operates primarily through two business segments: Supply Chain Services and Performance Services. In the three months ended September 30, 2024, the company reported a total net revenue of $248,142,000, a decrease from $269,026,000 in the same period in 2023.
| Segment | Net Revenue (2024) | Net Revenue (2023) | Change |
|---|---|---|---|
| Supply Chain Services | $151,388,000 | $163,276,000 | Decrease of $11,888,000 (7%) |
| Performance Services | $96,754,000 | $105,750,000 | Decrease of $8,996,000 (9%) |
| Total | $248,142,000 | $269,026,000 | Decrease of $20,884,000 (7.8%) |
Supply Chain Services
The Supply Chain Services segment generated net administrative fees totaling $132,625,000, a decrease of 12% from $149,886,000 in 2023. This decline was attributed to increased fee shares paid to members following the renewal of GPO contracts.
Additionally, software licenses and other services provided a revenue of $115,517,000, which saw a slight decline from $119,140,000 the previous year. However, this category did experience a 40% increase in software licenses and other services, which amounted to $18,763,000 compared to $13,390,000 in 2023.
Performance Services
In the Performance Services segment, revenue from SaaS-based product subscriptions decreased by $6,429,000 (14%) to $38,911,000. Revenue from consulting services fell by 17% to $19,689,000. Despite these decreases, revenue from software licenses rose significantly, increasing by 42% to $20,947,000.
The total revenue from Performance Services for the three months ended September 30, 2024, was $96,754,000, down from $105,750,000 in 2023.
| Performance Services Revenue Breakdown | 2024 Amount | 2023 Amount | Change |
|---|---|---|---|
| SaaS-based Products Subscriptions | $38,911,000 | $45,340,000 | Decrease of $6,429,000 (14%) |
| Consulting Services | $19,689,000 | $23,768,000 | Decrease of $4,079,000 (17%) |
| Software Licenses | $20,947,000 | $14,738,000 | Increase of $6,209,000 (42%) |
| Other Services | $17,207,000 | $21,904,000 | Decrease of $4,697,000 (21%) |
| Total Performance Services | $96,754,000 | $105,750,000 | Decrease of $8,996,000 (9%) |
Operating Expenses
Operating expenses for the three months ended September 30, 2024, were $145,103,000, compared to $146,554,000 in 2023, reflecting a slight decrease. The main contributors to operating expenses included:
- Selling, general and administrative expenses: $134,880,000
- Research and development: $586,000
- Amortization of purchased intangible assets: $9,637,000
Profitability Metrics
Premier, Inc. reported an operating income of $35,315,000 for the three months ended September 30, 2024, down from $58,340,000 in 2023. The operating income margin decreased from 22% to 14% during this period.
Adjusted EBITDA for the same period was $62,428,000, reflecting a decrease of 33% from $93,308,000 in 2023, primarily due to the decline in revenue across both segments.
| Financial Metrics | 2024 Amount | 2023 Amount | Change |
|---|---|---|---|
| Operating Income | $35,315,000 | $58,340,000 | Decrease of $23,025,000 (39%) |
| Adjusted EBITDA | $62,428,000 | $93,308,000 | Decrease of $30,880,000 (33%) |
Net Income
Net income from continuing operations for Premier, Inc. was reported at $72,940,000 for the three months ended September 30, 2024, compared to $41,769,000 in the same quarter of 2023. This represents a substantial increase in net income, attributed to operational efficiencies and reduced expenses despite falling revenues.
| Net Income Metrics | 2024 Amount | 2023 Amount | Change |
|---|---|---|---|
| Net Income from Continuing Operations | $72,940,000 | $41,769,000 | Increase of $31,171,000 (74.6%) |
| Net Income Attributable to Stockholders | $70,784,000 | $44,761,000 | Increase of $26,023,000 (58%) |
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Updated on 16 Nov 2024
Resources:
- Premier, Inc. (PINC) Financial Statements – Access the full quarterly financial statements for Q1 2025 to get an in-depth view of Premier, Inc. (PINC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Premier, Inc. (PINC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.