Premier, Inc. reported a decline in net revenue for the three months ended September 30, 2024, totaling $248.1 million, down from $269.0 million in the same period of 2023. This decrease was primarily driven by a 7% reduction in revenue from the Supply Chain Services segment, which generated $151.4 million compared to $163.3 million a year earlier. The Performance Services segment also saw a decline, with revenue falling to $96.8 million from $105.8 million.
Gross profit for the quarter was $180.4 million, representing 73% of net revenue, down from $204.9 million (76% of net revenue) in the prior year. Operating income decreased significantly to $35.3 million (14% of net revenue) from $58.3 million (22% of net revenue) in the previous year. However, income before income taxes increased to $95.7 million from $55.5 million, reflecting a notable improvement in non-operating income, which included a $57.0 million gain from a shareholder derivative complaint settlement.
Net income from continuing operations rose to $72.9 million, compared to $41.8 million in the same quarter of 2023, resulting in basic earnings per share of $0.71, up from $0.38. Diluted earnings per share from continuing operations also increased to $0.72 from $0.37.
The company’s total assets decreased to $3.3 billion as of September 30, 2024, down from $3.4 billion at the end of June 2024. Total liabilities also fell to $1.4 billion from $1.5 billion. Cash and cash equivalents were reported at $87.0 million, a decrease from $125.1 million at the end of the previous quarter.
Strategically, Premier completed the exchange of its direct sourcing subsidiary, S2S Global, for a 20% minority interest in Prestige Ameritech, increasing its total ownership to approximately 24%. The company also continued its share repurchase program, having repurchased 2.9 million shares at an average price of $20.18, totaling $58.0 million.
Operating expenses for the quarter included a rise in selling, general, and administrative expenses, which increased to $42.2 million from $40.6 million in the prior year. The company declared a cash dividend of $0.21 per share, payable on December 15, 2024, to stockholders of record on December 1, 2024.
Overall, while Premier faced revenue declines in its core segments, it demonstrated improved profitability metrics and strategic maneuvers aimed at enhancing shareholder value.
About Premier, Inc.
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