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PINC Premier

Participants
Angie McCabe Vice President of Investor Relations
Mike Alkire President & Chief Executive Officer
Craig McKasson Chief Financial Officer & Chief Administrative Officer
Iris Long Berenberg
Eric Percher Nephron
Jailendra Singh Credit Suisse
Jack Slevin Jefferies
Jessica Tassan Piper Sandler
Eric Coldwell Baird
Stephanie Davis SVB Leerink
Richard Close Canaccord Genuity
Call transcript
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Operator

Welcome to Premier's Fiscal 2021 Fourth Quarter and Full Year Conference Call.

Our speakers this morning are Mike Alkire, our President and CEO; and Craig McKasson, our Chief Administrative and Financial Officer.

Before we begin, I want to remind everyone that our earnings release and the supplemental slides accompanying this conference call are available in the Investor Relations section of our website, investor.premierinc.com. Management's remarks today contain certain forward-looking statements, and actual results could differ materially from those discussed today. These forward-looking statements speak as of today, and we undertake no obligation to update them. file future including discussed the our which expect affect with our fiscal might we SEC, the Form to that results in are filings year Factors soon. XX-K for these We encourage disclosures. safe and risk detailed you factor harbor review to will appropriate, adjusted to such we financial evaluate our or flow free cash Also, to non-GAAP business. measures refer where other as appendix of X-K, Reconciliations of our presentation, earnings release our are included of in this accompanying slides non-GAAP financial supplemental expect SEC earnings accompanying the the measures furnish the appendix the to in in soon. slides GAAP the to the which financial measures and to supplemental in presentation we Form like Mike to now call the Alkire. would over to I turn (sic) [Angie McCabe]

Angie McCabe

call. welcome and Premier's you, fourth to conference quarter XXXX Thank year fiscal and full

morning CEO; are President Administrative our Chief our this and McKasson, Financial Alkire, Officer. and and Mike speakers Craig Our

financial today. section remind Before in that discussed the accompanying the conference including we those appendix that obligation want year supplemental fiscal Mike our affect the as earnings XX-K will to expect over presentation actual Factors measures statements expect are now I Alkire. as update GAAP release call forward-looking accompanying we everyone encourage with undertake our flow which are from to turn disclosures. materially other supplemental no furnish differ forward-looking results investors.premierinc.com. refer earnings evaluate statements, contain We our of or free our today, to in in this and financial Form soon. certain the to review to earnings Relations results soon. our future detailed we I the factor will such of business. Also, for in might financial our Reconciliations them. of speak X-K, to filings discussed file to and we risk slides get These Form included SEC SEC, which the to and we the Management's remarks this of cash could the measures started, and non-GAAP available our non-GAAP harbor appropriate, measures in call today website at these to safe you where release Investor slides and are adjusted to

Mike Alkire

everyone. Thanks, morning, us provide progress And we joining to longer term today. deliver update morning, making our achieve value you This on our Good an we strategies our thank for are will to and advance goals Angie. stockholders. to the

and our will We for quarter fiscal full our and and outlook XXXX also discuss results, XXXX. guidance fiscal fourth year

We walk our quarter with are pleased of the revenue Compared expectations. net Services fiscal segment and which profitability Performances Supply guidance through grew revenue XXXX and quarter will grew Chain discuss with financial increased our XX%. segment of another with fourth in quarter operational you net solid reflect line more Craig, fourth execution. XXXX, results detail results, total and net was fiscal in our his in revenue remarks. X% our financial XX%. our

environment continue operate very We in dynamic brought the by to COVID-XX pandemic. on a

they focus stepped role we cost as delivering and staff, while the care supporting this on playing are Our And up an employees patients. our their their integral really have health safety in of to during protection members effective time. high-quality,

United chain and health chain direct care in highlighted of sourcing States. our supply The analytics particularly resulted in well that member by in from the effectively informed continued advance spread the The as the enabled our of more have are Delta rapid members from variant. alliance, chain. us utilization, our pandemic predictive the patient to network including the increases significant reflecting in gleaned of manage a states power have Our insights capabilities to resilient supply health Southern to supply build as our data our hospitalizations care evolution strategy weaknesses

care delivery. of new-shore chain manufacturing of In exam masks will needed announced nitrile the addition to protect both category initiatives of face and domestic our production care critical collaboration domestic critically support the expand Honeywell and a co-investing These help US with with our innovation gloves, to products. we members unique recently gowns, manufacturing providers for increase critical shortages, from and to our drive supply health to

the services. Our step achieved is web-based our a acquisition services advancing and e-invoicing consumer solutions. of of the strategy in chain In building delivery capabilities strategy enabled focused assets end-to-end that like chain set back unique to in with ordering March, catalog a we supply critical on supply technology a invoice e-commerce, through of the e-payables span front-end

branded e-invoicing of and addition our have of Remitra. an the we e-payables capabilities strategy, IDS, these With element

connectivity is supply AI-enabled overall While of is Performance strategy, segment it within our Remitra with a technology enhance Services our to capabilities. suite consulting key chain and component broader managed our of

retention looking profitable years, Remitra and forward and are to value we diversifying upcoming revenue deliver with growth We will and visibility the recruitment. member our the believe including into total spend in increased member increasing

new Services a for and Turning PINC consulting launched week platform brand technology Performance our comprehensive We to services business. called last our AI.

more coming its a in network PINC large Through believe set, includes centric drive adjacent growth scale robust providers, of XX% quality innovation and offerings than than services Our AI, the expand patient realignment physicians three other strategy to safely sub-brands, PINC and to in Contigo and and hospital and Performance Remitra which inefficiencies. consists of better technology markets to to This our XXX,XXX throughout a portfolio. while Today, and AI AI artificial can natural years. incorporate enables visibility and reflects care, we processing US deliver learning segment collaborative, including Services waste our help Health. of machine language PINC high advance intelligence, now more platform, reducing and current product discharges, our data

provider in markets. further through We adjacent and advancing to technology through payer, strategy businesses make diversify and our revenue including our our progress the into and and also market to deeper drive the continue growth penetration sciences expansion of markets, streams life employer consulting

trial leading we for evidence and new language In employer lives world in on data We progress to member expanded sources, fiscal XXX% we XXXX. the In and our expanded more are achieved trials. provider focused with sciences Contigo of business, focuses solutions better Sciences Health to by to which in improved solutions, connecting data-driven real direct life fiscal Life integration on partnerships. advancements for Plus, and our clinical than managed completed natural patient make capabilities business, in include example, recruitment continue our we to customer providers retention. and For research processing, XXXX, Health XX% identification grew Design clinical companies

key initiatives underway several in XXXX. fiscal have We Contigo for Health

employer needs centers provider other improve and continue with we our excellence networks of network enablement to outcomes, customers and technology access to our of to example, expand connectivity health For meet to the care.

advanced to capabilities improvement. plan clinical analytics drive our expect enhance clinical improvements. also deeper that and actions insights administration platform combine quality data several key and with continuous claims We to This health drive includes with

goals, customers meet identify and Global an implement party through support inclusive Achievers Last our for sourcing their Workplaces, AI-powered We inclusion environmental, programs. Annual our and also inclusion Impact equity diverse our governance workforce and efforts. creating week analytics international technology, by purchase Lumen our third Network. be and local XX Premier optimize employee-centered the a needs. of members diverse suppliers spend workplace economies social qualified their reinforcing Conductiv, equity helps award service of was to supplier continue and choosing Most building to commitment local, suppliers, that engaged ERG Awards XXXX diversity, named recently increases Also, initiative. recipient importantly, inclusion we on the diversity, many our to environment engaged Engaged business honored through also advance Earlier helps our this Using for Lumen from strategies, broader and and our diversity, an services, Diversity month, focus efficiently an equity, launched two belonging. received with a

In members this was plan like the we during provide our survey, in times. member our and employees XXXX fall. overall CEO rate satisfaction their The this also reflected inaugural I'd in each during tireless our to support continued which customers XX% have and critical for and report time sustainability frontline communities. continuing supporting and to recognize a in other addressing than annual their members pandemic, these for received more in commitment fiscal addition, received publish we summary, continue to commitment opportunity we members as Premier unprecedented and to inside. XX% strategic Premier workers our to members about as take a the care health from view excited are the other, on, In care this we our to thank I'd partner. dedication to our of transform we like their are path strategic

our for improvement technology innovation deeper by be to will broad member of and the on provide the for evolution our focused strategies I engaged for financial company stakeholders. Craig full over call AI-based assets a remain actionable network, financial McKasson service fiscal our more and to We now insights will stakeholders. Our to our our our continued and discussion advancement and value performance operational, performance creating data turn our and of powered guidance. all executing 'XX a

Craig McKasson

year challenges we full even Thanks, that of the year Mike. capital XXXX detail. allocation fiscal guidance our and walk including our then outlook, assumptions in results, fiscal and reflect execution This solid fourth face fourth in XXXX XXXX through pandemic. results fiscal financial will more highlight priorities I quarter a morning Today, reported key and by COVID-XX quarter of brought our initial the on discuss

net prior Performance was year In million, was compared X%. by of Chain million, the with an year three segment Services quarter of factors. increase $XXX.X Supply segment, affected total Services with revenue of fees as quarter Services For revenue an compared of increase increase Chain $XX.X slightly was our the segment fourth prior declined XXXX an And and the revenue mainly XX%. net XX%. and was million, $XXX.X Supply revenue period, administrative

in amended amended reduced our quarter by members, than level year were the throughout impact approximately mix with was million administrative First, purchasing communicated prior as fiscal X, effective quarter. with XXXX last we the The net of in GPO higher our fourth our changes to which agreements million $XX July the XXXX, due expected, extended of million the in agreements fees compared and top $XXX original estimate year. most revenue August, member actual and end the $X of

in member XXXX. grew a of including in part penetration highly due Second, the partially System third, our to ramp-up than combined significant increased Services offset penetration $XX by driven from billion by member participating revenue impact the this further programs, the Virginia members which fees for existing year. compared new purchasing XXXX, during from from was Resource Health And less members fiscal administrative Health fiscal of in and in Community the decrease net committed represented growth was The of more billion spend. $XX pandemic addition and to Mason, to growth existing GPO last the spend by spend purchasing

XXX% increased as addition mainly related year the for alternate leverage with We in the revenue revenue also the portfolio opportunities. continued site duration million new from as potential and businesses, the broaden commodity $XXX of to contract result to both incremental our identify quarter, pandemic. categories to enablement across due technology in ongoing Products and of the acute of and contract GPO suppliers contract we products, to nature demand prior growth a our

fourth quarter over items was the certain for the initially logistic expected higher ago, six a market due a and we Our primarily in than months. and quarter than prevailing from certain expected demand than anticipated revenue port impact we lower past higher challenges to

market that continue in our revenue growth in established broader incremental fact by fiscal dynamics fiscal compared XXXX, excessive demand and necessary acquired stockpiles Performance Health May from was XXXX. gradually normalize we to ahead, Looking growth driven In levels Health revenue Services Plus revenue in X% from and to grew this fiscal have products in in and with largely fourth their primarily inventory quarter the Performance segment, point our at members subsides Services business. pre-pandemic our time. consulting as Contigo In will XXXX our the the Design expect XXXX,

With consists million contributed the support We than are GAAP $XX.X revenue which Health, more for year. for decision to businesses, pleased our adjacent businesses quarter. of full in and our with of was income million the Applied $XX net performance Remitra respect markets clinical the profitability, and Contigo which Sciences,

an acquisition, Remitra. result adjusted well perspective, XX, contract was and of general fees. was million well to From the As for direct quarter-over-quarter $XX quarter million year administrative XXXX, with the cash to Health earnings income headcount that supply the administrative by $XXX.X per was increased expense as as chain of to fourth $XX.X compared expected, which incremental in with of we Adjusted sheet of year increased lower Services and decreased adjusted The adjusted primarily and year flow Chain EBITDA prior the offset businesses, operations with as technology connection Contigo recognition increased the of segment the $XXX.X ended following. related investment revenue share support in partially associated due critical if impact prior adjusted share XX% we was higher $X.XX. XXXX, of cash PPE which selling, our our as year timing the year-over-year net as expected of and fee outlays anticipated cash and cash net Cash secure of to capital prior $XXX.X a in X% totaled the result business, primarily prepaid from former increased distributions, the $XXX.X and in additional the a June Acurity for June occurred And decreased increase Free changes of to million in increase our reduced liquidity XX% $XXX.X the EBITDA growth termination X% the Free decrease as Supply of timing year primarily the million members balance offset for prior to a free for ago, a to abates year, from that due primarily of and an flow in XX, June flow restructure The to June the of at to from made the Services with current flow administrative co-management year. company's a limited million payment throughout XXXX partially quarter net ended of related with part million which million lower to of X% to sourcing the profitability fiscal revenue which due and prior XXXX. Performance year payments as by the pandemic, due to expense year agreement, adjusted were EBITDA tax XX, million the the PPE million we of XXXX, to XX% a than efforts as as fees was in from quarter EBITDA pandemic to early was $XXX.X year. for compared related will normalize, XXXX receivable of well LP XX, when adjusted related administrative pandemic. same expect in purchases in represented items collections other by the net the ago. of Premier $XXX.X fiscal equivalents the capital range cash of period and for million continue compared cash year the connection tax August to elimination of $XX.X for XXXX. both primarily partners of working at year. EBITDA fiscal and during the In with originally

facility. quarter which outstanding respect deployment. With credit balance revolving as Our outstanding subsequent X credit full had there billion an in million year capital the $X no to June of of XX, facility $XX amount currently on end, repaid was is and to

share million XXXX to our XX, of September new declaration record to X. On the August second, dividend, to priorities continue first, per as in payable to And stockholders stockholders. growth of cash X, as XXXX, approved strengthen to other the could X.X% approach This increase of existing as invest a balanced our the repurchase $XXX $X.XX our of of the of combination our share drive to in September in reinvestment Board a business Directors a expect and offerings to investments include a fiscal and well for with with our returning being, acquisitions take a differentiate marketplace. Premier's XXXX businesses. on and growth, capabilities organic dividend to capital program quarterly future We of

represents guidance. And years, based our up the current fiscal early our year and this prior our we provided the Now This on for our and related to it let's are In call, key with view into turn does incorporate historical market earnings expectations quarter fiscal follow XXXX our certain our to to business. financial XXXX assumptions not performance on incorporates guidance third year. full guidance introducing now consistent In that contract we revenue fiscal we is any in undertake. impact significant for may billion our acquisitions developing approximately that the estimated and realization XX% factored the consistent with guidance under prior range, This retention guidance, assumes in of years $X.XX XX% of historical rates. SaaS expected our approximately institutional XXXX. revenue of and continuation future available net GPO total to of renewal

of year key segment administrative fees revenue guidance and Together, $XXX of Supply million ranges as of follows, $X.XX With net of direct million. products $XXX to mind, these Services to revenue billion. XXXX Services revenue Performance GPO sourcing Chain $XXX full specific assumptions our million net million these primarily segment million. fiscal $X.XX revenue total revenue $XXX of million of million net net $XXX $XXX in billion, billion to $X.XX to comprised $XXX to are produced

the million We in expect to of And be $X.XX. under adjusted range share authorization share of to per be range million. adjusted $XXX any the EBITDA to repurchase to million the in impact $XXX excluding $X.XX our earnings of $XXX

Our guidance in the is on continue following the our the current from due we business, expectations. expect pandemic the GPO experiencing cases to assumptions of In based some impact variant. impact Delta the and surge including also to

a additions recent year, of amended contract as to did including not penetration and ChristianaCare. fees net member well we In our net result time ramp the add existing further and to an With members, UnityPoint communicated, up continue to Health we XXXX. at this number impact spend, of new of we the of agreements August in fiscal revenue as to as revenue growth restructure expect administrative drive respect expect GPO extended members in administrative agree of previously XXXX, and small addition, fees to as that the to

will patient lived. business, the Delta a In pre-pandemic that currently expect levels elective have utilization stockpiles our utilization use generally direct we necessary represent the on levels, elevated fiscal PPE that higher and as result inventory We gradually year. than lower is of of products the those members return remains also more prices stockpiles of levels to in potential associated the levels currently to a to short impact health purchasing of normalized with pandemic this higher is and expectations. and or hand. care of establishment and are assuming throughout our To have extent tailwind sourcing XXXX utilization down and that that fiscal our variant on headwind sufficient levels near We or believe established procedures continue could it the

revenue Given the Performance this, grow our single in expect care to respect step a digit provider markets we our first produce approximately anticipate million sequential in low growth of million our XX% to Services to expect business, the expansion and we our With down $XXX consulting we business, In businesses and to in over adjacent markets quarter. $XXX range. health fiscal continued adjacent that mid investments XXXX. will technology

expect In enterprise tax be an we XX% of perspective, in as months fiscal there With anticipate nine agreements between a and in rate mind, as fiscal higher this single the previously, to associated timing to addition, implemented XXXX strategies a follow of recognition XX% first magnitude which arrangements, of given consulting for the be growth the August enabled rate tax in quarter XXXX. currently may From we digit for certain effective remaining planning rate XXXX. to restructuring, the income the up in any periodic result with analytics quarters tax variability engagements fiscal currently being low profitability with and of the tax XXXX and year. range fiscal and these have effective a growth due the in communicated during license year-over-year we revenue of our

our to we would Beyond tax fiscal effective rate return level. more normalized a XXXX, to expect XX%

for expenditures capital to million expect year. $XXX range the of in we the Finally, be to million fiscal $XXX

initiatives, technology is capabilities in clinical AI-enabling on capital investment for focused and decision Remitra. our Our including growth expenditures further support, Health our Contigo primarily

open vigilantly share. the to call strengthen, fiscal for adjusted time COVID-XX pandemic forward growth annual to of Operator, today. to and grow digits on, up excited XXXX beyond, executing mid look earnings sustainable Thank net and single path total And are compound high and long-term we achieve we the Premier success. our the are our remain for and strategy up focused for per further we adjusted on impact position questions. EBITDA revenue, to multi-year about the we we'll adjusted for your you rates for targeted now As

Operator

from comes Thank you. Berenberg. with [Operator Instructions] Our Iris first question Long

Your is line open.

Iris Long

for morning. taking question. Hi, good Thanks my

line I first if AI. about you the question on branding bit rationale PINC guess, more if And that can making little wondering about some is talk you PINC a product the the So this are you I'm of can of the you maybe to here. to changes about strategy, AI. are your services of then into talk think performance my any goals as what go-to-market And that? you achieve want same along

Mike Alkire

Yeah. Thank you, Iris. This is Mike.

of whole just First focus me and that Performance was and our Services really offerings. step technology consulting AI PINC say of the to let all, realign back

focus working talking us which help PINC closely the quarters. last commercial the of well single more a care message stakeholders. We think focus our sciences innovative makes single opportunity things. AI for an the administrative we really accelerate more concept includes our stop that improvement model evidence enabled also closely so market proposition AI create think members, Contigo in their both to enables for a shop a revenue of consolidated And one performing systems adjacent as for the Also to those that network models we've business, believe model our the work automate supports prior very like brand to couple also to about identity and which health underpinning helps support authorization, data is our our been of the believe diversifying over life driving PINC that as to payers drive technology the and for on clear care. to to streams with efficiently to high with value also innovating our that using this as be to of perceived it's help create Services But Performance focus and performance our with more to us tests about that health company markets, us action. into We sort really sort our kinds technology was

the technology all really one really services under of re-branding that's the It's our label. and of focus. So capabilities that

Iris Long

Okay.

Just to to follow up, changes just spend general, sales your are Or you as to are go to any increase think also strategy? you maybe and market making marketing, planning we marketing a in bit? about the sales and

Mike Alkire

Yeah.

So bunch again, different this allows marketing us a really to right. from of options have a standpoint,

can talk So various AI. the businesses by that we say But and Contigo like mentioned, Remitra Craig we businesses powered PINC about can our growth those. and

is message the services. underlying this technology and So really

out. Specifically, aggressive social know, out more kinds relates yeah, platforms, much And the as we continue to continue those we'll in make will whether our the need elevate message of determination we it – the using, to to be as a reaction making look spend to you obviously things. just and to marketing, becoming determination brand to getting then and at market get

Craig McKasson

channels. around I Yeah. have sales provider our efforts sales drive to is force to those the approach our those have sort Mike, market would market. is market dedicated focused of independently we add we'll believe brands thing that to focus Craig. adjacent our Remitra, a continue Contigo we that actually then go this to is of And and only on Iris,

Iris Long

you. Thank great. Okay,

Operator

you. Thank

Percher question comes Nephron. Eric from Our with next

button. is open. your check Eric, line Your please mute

Eric Percher

like growth. think 'XX around ask we pretty wanted in the weight admin impact as about health there. the sounds base bearing it size you. that made Thank there today? for and headwind guidance purchasing a new in I question help 'XX way there. a The and as you're clear, the Apologies it into growth to client ongoing and provide a 'XX from Is you long-term that you fees, to compliance

Craig McKasson

happy is that. handle Craig. This I'll Eric. Sure, be to

to effective extended as up we small we're quarter, fiscal step number beginning XXXX. view at agree not are talked So gave in slight of 'XX incremental the headwind members last the to we about did amended the the facing the of we when - think I due and early is our that agreements that

as once our XXs through be that's in XXs. XXXX. to will we'll have share stabilize the that moving growth feature the the we to moved have we're that from into So because drive will our because low And articulated administrative high impacting digit We and moving place previously of then that forward low then a stable high line get fee XXs forward. single top benefit mid growth we believe the

Eric Percher

Okay. And give for think that there of hit as 'XX, kind to is sense - what the in scale is versus about we the remainder you've a there any scale us of way 'XX?

Craig McKasson

Yeah.

to specifically haven't We that But the additional more sized get low on change. in fiscal - headwind given us. of to implication of digit I the restructuring sort single it it growth bit more growth on overall guidance, sort of in it in of little because a we'll net does administrative on based fees 'XX, a mid depend prospective think basis a impacting versus the

Eric Percher

Okay. Thank you for that.

Operator

you. Thank

with comes Credit Suisse. Your Jailendra question from Singh next

open. is line Your

Jailendra Singh

canceled want bit year did guys I back, fluid COVID-related Yeah, being your a this little compared in issue outlook guidance several in what uncertainties. 'XX. parts the thank understand you you. confidence the The not 'XX outlook XX you your forward is fiscal your us everyone. situation across And electives to the good visibility still into country. thought heading fiscal time COVID better. given with you months Help morning, understand with and have

Craig McKasson

is for Sure, the question. Craig. This Thanks Jailendra.

do. pandemic. to the going even the government is at today going what a was despite that was country happen Delta what doing, perspective There lot point implications insight a than federal how and there's variant handling knowledge terms is economy, the XX broadly states the summer at of this known terms to the lot were is in more our what of think think We with time. in of was months ago the that I this more complete last uncertainty

implications what As complete our interaction when I in this causing, will the and fact, in mentioned we it time, at at shorter a spike in there the we my that remarks, variant were and despite Delta it's than lived year with was variant the members just the experiencing we this do ago are believe we of time about daily generally believe despite be uncertainty.

to. Yes, there other seen certain elective our we the type we have at so providers down to the continue care And more Obviously, for ongoing interactions, patients that and whereas completely business operate. have last the this to the how learned industry significantly for to to our business try back perspective And services underlying manage our provide will that, from delays procedures of some as if bit is to were it on sites country. expectations based fiscal think provide that part, COVID in in services. parts were continue provide and vary year, shut lot to But much health most to need or the They've parts guidance going subject confidence geographic continue gave us come start point and to and things are components business, more in a they effectively our of a time. alternate ability well, to is XXXX. those still been other

Jailendra Singh

contracts maybe what if Or terms? thoughts all business announced some and you And side. level of I Okay. there maybe share part are the as my two renewed on the also UnityPoint so the GPO believe, the UnityPoint side? And yesterday, including side? follow-up, those you more GPO ChristianaCare. on similar share RFP perspective has at to contracts on can back services, the been Are A pipeline point. With fair the on the seeing any you from high being of changes

Craig McKasson

of part last the the catch didn't I question…

Jailendra Singh

seeing are RFP how you're of like businesses, a general there? the pipeline lot - curious on seeing activity in for the GPO you Just like

Craig McKasson

the Got Relative to I'll result to overall then and talked can and you Mike go are add appreciate we it. contract that we recent guidance, about accounts the market? start about color. any of on ChristianaCare, as I terms. you. with certainly, the performance those excited the UnityPoint basis. any don't expectations do about Thank want clarification. opportunity have a in not a are our of engagements. forward we the Mike, as those And different into we forward future addition of moving wins of get But talk around individual terms

Mike Alkire

Yeah, that - quarter of or Craig. Yeah. hopefully question, going few the announcing It that approach. to your strong. been sort to Thanks, has of We've our pipeline couple have answer fairly so. they close in very are all-in remained a is we're so next got be this

near I in help also our strong manage we think And products, think down sort a is foundational making are non-member shore in become what's response health is price are drive sort But for in could technology price I for opportunity they points. from continue ability driving market not chain. obviously, more we're of the our to in then repurchasing capital, efficient what these investments systems but programs both systems creating supply well as we that differentiation more we as our internationally and quite their help of committed to investments our health chain. domestically, them And that bit really that terms can create make of supply care are diversify it's supply resilient to and And getting as to only we also doing the deploy Premier, illuminating the great investment technology. chain. care the finally, of a

isolation as marketplace. nitrile I recent for the and exam on Ameritech announcement, continues recent announcements us announcement with do gloves, So most on to Prestige differentiation think these as masks the gowns in create the well

continue on focus more the resilient improve for a we're that So to supply continue strategy, to to Thank going that and creating chain. you grow obviously strategy question.

Jailendra Singh

lot. Thanks Great. a

Operator

you. Thank

Brian Tanquilut Our next Jefferies. from with comes question

Your is open. line

Jack Slevin

Jack morning. good Slevin on Brian. for Hey, It's

those kind thinking as for to Just that three forward? inform forward? are kind perhaps more touch each contribution of Performance pillars organic buckets you organic growth how out segment see of buckets is about going that three But about the on that businesses forward. breaking a I bit to Thanks. of guys [ph] of focus lastly, color wanted those now going profile little outlook it of appreciate then outlook. what to the And margin on growth how the And Services. the contributing going you're the organic you to going wanted thinking growth to

Craig McKasson

Craig. would like Sure. any can color and you afterwards. that then start, add Mike I'll This is

X% XX% about guidance So organic to over the segment the as we fiscal effective for fiscal is that XXXX talked for growth XXXX.

emerging about, achieving. So that digit clinical the did prepared comprised, in Sciences support of remarks but anticipated the segment previously in single to the level my is at more in those high we provider the core of about grow XX% mid Applied I and also digit that kind then business our a growth component That mid Remitra, businesses. indicate are Contigo, mid growth talked in as parts, decision single talked of XXXX. low Where kind to I higher growth, and much to from fiscal type digit growth single historic type

range of to about of top combination in line is that us fiscal talked the those the we've XXXX. guidance gets terms in the So what

business XX%. Our as an Applied in Sciences example excess of grew

XX%. Decision Clinical Support Our business grew

opportunity grow brand expectations and a lot business that high So Remitra at but a new, to level. of very

what areas with those about and the good newer provider overall business stable very us the platform is level. to growth the feeling those So will combination that get of of

basis. the But to investments we're overarching Services the we'll not sort assets terms In on expectation not as the every margins getting in a at we're What investments have the Performance for EBITDA stage overall. you, do is business earlier EBITDA piece business. the profitability will - making core of mid-XX continue overall would so they go-forward that of the margins those growth that segment, are breaking tell business. into provider single overall margin I have the is EBITDA margin and the down expect, point, this of Incorporating for businesses, profiles making high you of we the our to of and

Mike Alkire

system the efficient, and tailwind to Yeah. care the And provider it I cost drive towards to really, of really performance more more area as the value reducing think care. is ways specifically on innovative And to our whole health improving incentivizing accountability growth within that's care. transition quality based and relates pushing this the focus

think drivers, you about the key things. exchange insurance and if plan, So health program, kind Medicaid or Care like plans of the Managed Advantage those Medicare

of and our ability that's Sciences, provider help patient need side. on activation evidence. Life that's to interest seeing standpoint, of still around the for and prior through the focus payer for Also our we're technology our - we're significant driving our world a From real very, them In market post in helping trials. So them very patient services sort sort on focus with the tailwind authorization. identification nice in getting the growth

of Craig and in to continuing the Contigo Remitra got on program of creating a building and focus health as think said, are though are that and couple just out become for evolve even that of is us about growth of high the value a Centers evolve our whole Craig thinking our tailwind as that said, announced, with service systems capabilities through and care that to Health we've care offerings payments. the them And been really working help what Excellence continue of As it's efficient to the then we they're to develop more groups right network invoicing also offering, there. bit

Jack Slevin

going forward? growth you is appreciate capital just included deployment Awesome, repurchase thinking share you're $XXX relates quick sides things program capital about of in the thanks. maybe about those talk there. going appetite inorganic versus color share million after your that how guide. not on Appreciate then utilize of kind or the two of between it to Can to all program deployment, that a just the And balance follow-up kind the initiatives as purchase

Craig McKasson

be to this that. is Craig. happy take Sure, I'll

So prepared organically we and I my We inorganically. of capital to continue mentioned relative share approach balanced to as the level sufficient grow repurchase. have business, the - remarks, with substantial still have in a and and both

expand drive And for with the and we'll that balance to will growth. share capabilities continue repurchase. opportunities our look to future indicated, to we as So to deploy capital

appetite the of types to know, those all we do a our grow law, focus share place, that. that deploying our and a we terms been when upon is In to have in put the history you of it's obviously have applicable use repurchase to under would But things. place, I authorization put on done think we business. being subject it, to But executed has to actually still expectation ability continue capital plan in

Jack Slevin

Awesome. you. Thank

Craig McKasson

Thank you.

Operator

Ransom from James. John have We with Raymond a question

Your line is open.

Unidentified Analyst

is calling Ransom. everyone. in Hi, This for Kyle John

A the Just go to want add question. some perhaps your prior repurchase what's not there? fiscal Class the off shares any color back priority to just Can you in as decision And to 'XX?

Mike Alkire

Sure.

it - the of ensure the the to uncertainty the think with capital I want 'XX we during had us fiscal uncertainty really that of made COVID pandemic sufficient business.

it put continue to in we're to that business place. future capital now back appropriate in terms as more thought So direction, opportunities the deploy to again, feeling repurchase for to well. we of And confident our was grow look

Unidentified Analyst

Great. Thank you.

Mike Alkire

you. Thank

Operator

question with next Our from Piper Tassan comes Sandler. Jessica

Your line is open.

Jessica Tassan

Hi. question. Thank you for the taking

were impressed revenue and So I the think Contigo retention growth. managed we with the lives

add center us help just you the of geographic that capacity. plans growth you business? kind excellence think guys of can to I So understand of a mentioned then And

should we do have out half in of year? the potentially adequate your you demand? you back where to fiscal employer And are for you. Performance catalyst you feel build-outs response growth And Services So density. think like in as building about the Thank those

Mike Alkire

Thanks is for Mike. This the question. Yeah.

of all, whole the So based. nationally is first program really

is, the we a expand the opposed excellence, to to excellence to we as center to about so meaning focus centers that many make to we're is is. think our as want centers And depending what sure continue offering disease what singular of of of on try model, excellence

the is it entire So geographically over spread country.

across question entire your quick to network behind is the focus initiative that think which I reminder, Now continuing country. employers the the we care, around focused consistent large a and just are of high build help be And evolve. have may out value care to as

kinds providing and our employers their it's we needs what to the capability of help all with technology And high to be answer value care those with, of country that working working them where we're care. think closely your become of so standpoint. and some gaps systems obviously, performance But across to insights evolve them part question, things. spread and improvements health might and there continue of very to that them network geographic are entire And from a specifically and help

Craig McKasson

do question back your is basis. about on the operate of add would Mike, employee to nature only And color year benefits business. year of the front of sort half an I calendar Yeah. a half Many the

our half but the won't So in up fiscal will new been have year ramp they start expect we of as back under see January that procured, already generally X. would some come that a you of until the lives management

Mike Alkire

Thank you, you. Thank Craig.

Jessica Tassan

Thank you.

Operator

from Coldwell next Eric comes question Our with Baird.

line Your open. is

Mike Alkire

Hi, Eric.

Eric Coldwell

Hey, services Thanks, chain came direct sourcing. model, EBITDA it to At of our compared supply [ph] good guys. looks some morning. the performance least like from

business? driver of in the side did about side that if direct of an perhaps procurement upside be on there. there's matching that, quarter. maybe quarter, to on talk as expand sourcing may that of unusual talk the drivers sales, margin anything your profit rank In et direct was the the side, of unusual You either the relative versus that the on Thanks there profit the in sourcing profile direct upside mix. unsustainable anything expectations the very quarter. drove hoping know, the of sourcing upside much. in the cite about other you then cetera, margin you was I product If could And words, on timing things

Craig McKasson

those to digit an in we our sort mid the see year. see and to kinds us freight things in pandemic, upon that I'll back We of in doing supply. of everything happy business as charges to We margins trying But sourcing the ramp-up here single could get Eric. of QX, all members given that. did I we operational height indicated, in were did oversight be earlier ensure of were the of and that impacted and continue direct the higher things some that have improvement. and to improvement, Craig. business Sure. year margin did improve address kind in earlier to This EBITDA There improvement is we business had the in the

up So there was the step a year. in there

that really contract are digit to for. would extension basis, to with say, But go-forward gauge has be low excess a take look off costs directly to be make mid our continued of sort, not products to to that supply health to think members care I to profitable. our profits business, for we directly strategy or clearly strategy we a expect at continue It as on services an the our looking providers. we EBITDA margin I'll manufacturer [ph] chain to actually, single down really overall is have

undertook did to focus it And the on the restructuring lower the we we'll And year. yes, that. continue we given EBITDA that offset in during impact of pandemic GPO that saw the so the and

Eric Coldwell

sure very looks you could fee investments. directionally think I another single to to If ask because back expectations. much. in I of really maybe just street Thanks guidance be and admin you lay below fiscal to XQ line street jump or a comes with question Performance in But a Services how digits, down revenue - looking in It's better And tougher lot I'm you're 'XX, here. direct - - said, expectations. making for maybe at in not one it as to little fiscal we're below out. profit is low just a the sourcing 'XX was

to just with I'm with guidance analyst the could of below several when ability that your very how I'm guidance there? And with get actually What's well analysts. all to EBITDA EBITDA you point the seem models? perhaps So the aligns of street to - of majority be wondering - the least areas the what that bit get majority aligns we at to framework, compared to expectations, a

Craig McKasson

Craig. This is

go-forward top But we've core base confident provided investments business potential profitability have that a we ability effective our areas growing guidance the focus basis. that to than business, to aren't in our the to to that fiscal deliver opportunities guidance going we the continue that the line and drive deliver also ensure to, the parts of the and clip of opportunity making grow will we while to key to XXXX relative we a in the focus more growth, as So We in looking continue the on ranges efficient expected provided. we're to our be clearly to for expectations to business ranges. the feel on need as in fast for every future on more of

Eric Coldwell

maybe some hidden is core investments that say better we're to safe it missing? just of the maybe in is that's some or piece actions productivity that the offsetting efficiency these Craig, and So cost

Craig McKasson

Correct.

Eric Coldwell

Okay. very it. you appreciate Thank much. I really

Craig McKasson

Yeah.

Operator

Our next question Leerink. Stephanie SVB comes Davis with from

is line open. Your

Stephanie Davis

taking you Hey, for guys. Hi. Thank question. my

Stephanie Davis

you'd us First PINC tell end more about off, I hoping AI. the for markets was

you've get markets markets. and of life can provider, you of end So where each the the I and and employer historically you outside sciences a payer, on for guys like have some sizing but Because more touched feels the was from hoping stages been? granular maybe rank that pivot the

Mike Alkire

Yeah.

Stephanie. question, the for thanks First,

obviously, Craig businesses. all through the growth for So the went numbers

I capability, protocols there. we think that of to the whole will will enablement, if really ability expand. we to in also could Health, our obviously, think into start write Contigo PINC to that, workflow the potential just technology participate that We truly the think that AI going is the to help differentiate systems those high value centers way continue It health excellence networks. care

opportunity care work obviously, think technology that revenue support there's systems offering a think employers. So with also with we health an help and going growth differentiated systems. closely selling care more But to have, to for sort we Contigo of additional health services to our associated is

Remitra. start So then would mentioned go Craig I to I also there. I'd would

acute more payment but those their very, of settings, across invoicing play and their their all very settings, systems care efficient, they're know, for them an with dealing you we about become non-acute affiliations complex. manage kinds systems to to It's we Remitra about and functionality. to talk think help their as as more the not efficiency I our things. invoices think only offering, as continue care Health become it their health hard

to is think this we technology capability that So the for enablement invoicing. allow going centralized to manage

a and health us suppliers of part as have and right, things that going where, then see be non-Premier out then and significant as that information systems kinds the Remitra fingertips. to been that's network, portals, kinds able of because well. has capabilities products differentiator to sell begin the their that's going and members, our these key towards at that sold potentially also services those are allow So And build to to be think value a fingertips, penetration into we obviously, we going also at their of value they're have to to which what to

Craig capabilities unique So a systems, mentioned part the going that's world think think, disease, to technology with our health area manage need We our also standpoint then from then are we with what a growth, our standpoint our life business. new unique from very care and with very revenue are therapies, one we unique, might And in the the do new participate is very, steps our think those a the to sciences next as of to far to believe to launch as that And the be also protocol of very is evidence, real to opportunities discovery, world trial. continuing we capabilities as well. that, very, this finally, the And real obviously, patient evidence. suppliers. and they're tailwind a at for And as help the create business. talking between for point ability of care our because uniqueness of technology about and of of the our whole the identification, physician our to, patient, then there's

Stephanie Davis

right already using other you in guess I now? [ph] have And of currently stage some world. What the end that side deep life you world is are that How are follow-up sciences Like these a Or that. markets? of evidence businesses? selling on are these clients something you're real

Mike Alkire

life of years old. science probably So couple is a

probably Having said last X the been in been the that would last has is bit Remitra with the large companies we've X a sciences market So we of the have technology for the bought, couple in last working capability months. to years. the over we life a product, I that - few lot say, out that's of years. been more nascent, IDS that,

leverage those then you're of Stephanie, out in think, we want we've out been focused that and I on last terms to some customers And So to to capabilities. aware, couple, for our building into build X that continue toeholds years the continue of functionality. those Contigo,

Stephanie Davis

for Craig? Super Can modeling quick speak one a I helpful. in

Mike Alkire

Sure.

Stephanie Davis

side. There's think that. that Is to the below basis, in pieces ex-GPO look a it moving that agreement on it guidance high bridge normalized the in a it? in range? target? 'XX your growth more SCS to Is at we ton If how of long-term it out about and me of ex-PPE it, digit just single headwinds, would mid guidance obviously Help

Craig McKasson

Yeah. question. It's a good

with to will of everything low past if mid and The we think mid the year a what dealing the half. normal been direct I restructuring, said low behind to grow grow single GPO gets business were to single of the out the you you high we've that year, sort haven't we've double-digit strip to guidance post back pre-COVID implications combination digits changed high would So supply On historically we've chain and for COVID that level. to normalized levels to digit at and sourcing of And bridged. single those us.

you in a [ph] it of it And COVID. million business, year, COVID, do what year pre-COVID. COVID, about $XXX absent - that's future that's a basis. was about would had And If the then business so sourcing sort XX% that's go-forward this a X% to think what million, that to absent done would direct have on if million $XXX the $XXX absent grown

Stephanie Davis

guys. you, Thank helpful. Very

Craig McKasson

bet. You

Mike Alkire

Thank you.

Operator

a Close Genuity. from with Canaccord Richard have We question

Your line open. is

Richard Close

lot along ever spinning lines? of about Mike, some those and have guys what excellence thought grow. terms center A out been asked. as have sciences, life I'm you newer of monetizing not, But you. these of curious, them anything those in Thank just the curious, Yes. maybe of the I'm or questions businesses,

Mike Alkire

And to total value. most obviously, the looking figure with the amount over really We're last of create to ways total what's of out always we've structure the return. years the Board at shareholder had, shareholder best conversations create couple to

Richard Close

you. Thank Okay.

Mike Alkire

Thank you.

Operator

we call. concludes That's participating. This for all Thank conference have for questions. the today's time you

now may You disconnect.