Premier, Inc. Raises Fiscal 2016 Revenue Guidance
October 06 2015 - 8:29AM
Premier, Inc. (NASDAQ:PINC), a leading healthcare improvement
company, today increased its revenue guidance for its fiscal year
ending June 30, 2016.
As previously disclosed, the Centers for Medicare & Medicaid
Services (CMS) awarded Premier a contract to participate as a
Hospital Engagement Network in the second round of CMS’ Partnership
for Patients initiative. The one-year, $9.3 million contract began
September 24, 2015, and is expected to contribute approximately
$7.0 million in revenue to Premier’s fiscal 2016 financial
results. The company stated at the time of the announcement
that it would update guidance accordingly during its Investor Day
on October 6, 2015. The increase in guidance specifically impacts
Performance Services segment revenue.
Fiscal 2016 Financial Guidance
(1) |
|
|
|
|
|
|
|
Premier, Inc. updates 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 |
|
$792.0
- $813.0 |
|
7% - 10% |
|
$792.0 - $813.0 |
Performance Services segment |
|
$352.0
- $362.0 |
|
31% - 35% |
|
$346.0 - $355.0 |
Total Net Revenue |
|
$1,144.0 - $1,175.0 |
|
14% - 17% |
|
$1,138.0 - $1,168.0 |
|
|
|
|
|
|
|
Non-GAAP adjusted EBITDA |
|
$425.0
- $444.0 |
|
8% - 13% |
|
$425.0 - $444.0 |
|
|
|
|
|
|
|
Non-GAAP adjusted fully distributed EPS |
|
$1.54 - $1.62 |
|
8% - 13% |
|
$1.54 - $1.62 |
(1) Updated October 6, 2015. Premier does not reconcile
guidance for adjusted EBITDA and non-GAAP adjusted fully
distributed net income 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 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. |
Premier’s revised guidance assumptions include the financial and
operational contributions from the CMS contract. Consistent with
Premier’s initial guidance provided on August 24, 2015, financial
guidance for the fiscal year is also based on the following key
assumptions: 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, and 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; and the continuation of
historically high retention and renewal rates of Premier's GPO and
SaaS members.
Guidance assumptions also include the integration and
realization of anticipated financial and operational contributions
from acquisitions announced in August and October 2015, but do not
contemplate the impact of any potential future acquisitions.
Guidance also assumes performance consistent with the company's
current visibility into its annual revenue stream.
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 year ended June 30, 2015.
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.
Forward looking statements and non-GAAP financial
measures
Matters discussed in this release that are not statements of
historical or current facts, such as the expected contributions
from the CMS contract, the 2016 financial guidance and each of the
assumptions underlying such guidance, as set forth above, 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 “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 and available on Premier’s website
at investors.premierinc.com. Forward looking statements speak only
as of the date they are made. Premier undertakes no obligation to
publicly update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise that
occur after that date. Adjusted EBITDA and adjusted fully
distributed EPS are “non-GAAP financial measures” as defined in
Regulation G under the Securities Exchange Act of 1934. Premier's
Form 10-K for the year ended June 30, 2015 provides an explanation
and disclosure regarding our use of Adjusted EBITDA and adjusted
fully distributed EPS and should be read in conjunction with this
release. Premier does not reconcile guidance for adjusted EBITDA
and adjusted fully distributed EPS because it does not provide
guidance for reconciling items between net income (loss) and
adjusted EBITDA. Premier is unable to provide guidance for these
reconciling items since certain items that impact net income (loss)
are outside of Premier’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.
Contacts Media: Amanda
Forster, Premier, Inc., amanda_forster@premierinc.com, 202.897.8004
Morgan Guthrie, Premier, Inc., morgan_guthrie@premierinc.com,
704.816.4152
Investors: Jim Storey, Premier, Inc.,
jim_storey@premierinc.com, 704.816.5958
Premier (NASDAQ:PINC)
Historical Stock Chart
From Mar 2024 to Apr 2024
Premier (NASDAQ:PINC)
Historical Stock Chart
From Apr 2023 to Apr 2024