Premier reported a jump in revenue, banking on strong GPO performance and positive software sales from recent acquisitions.
Fourth-quarter revenue was $266.6 million, up 13% from the same time the prior year. The Charlotte, N.C.-based group purchasing and performance improvement company reported strong performance in both its supply chain and performance segments, which saw 14% and 12% revenue growth respectively.
GPO administrative fees accounted for $119.9 million in revenue for the supply chain segment, reflecting increased contracts with existing measures and new recruitment, the company said. Increased use of the company's direct sourcing and specialty pharmacy businesses led to a 23% jump in product sales to $75.6 million.
The company's performance services segment, which includes its PremierConnect performance management software, benefited from increased software subscriptions and renewals, including business from TheraDoc and Aperek, which were acquired in the first quarter and integrated with PremierConnect.
The company reported adjusted fully distributed net income of $53 million, up 6% from the year before. That figure adjusts for the ongoing exchanges of GPO member-owners' Class B stock into Class A stock following the company's initial public offering in late 2013. It reports the financials as if all members have exchanged their stock and the company was fully public, though member owners still retain about 74% of ownership in Class B stock.
Without the adjustment, Premier suffered an $84.1 million loss on paper, compared to a $491.4 million profit last year. Premier doesn't believe the non-adjusted figures accurately portray the company's operating performance.
Revenue for this fiscal year was $1.1 billion, up 11% on an actual basis and 16% on a pro forma basis considering the impact of the company's reorganization of member shares following its IPO. Adjusted fully distributed net income for the year was up 10% at $208.2 million.
The company expects total revenue of $1.1 million to $1.2 million in fiscal 2016, a 13% to 16% increase from 2015, including a 29% to 32% jump in revenue for the performance software business. Adjusted fully distributed earnings per share are expected to be $1.54 to $1.62, an increase of 8% to 13%.
Premier has been on a M&A streak as of late, acquiring Healthcare Insights, a Libertyville, Ill.-based financial management software developer, and CECity, a Pittsburgh-based analytics software vendor, earlier this month.
