QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||||||||||
(Address of principal executive offices) | (Zip Code) |
Securities registered pursuant to Section 12(b) of the Act: | ||||||||
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
☒ | Accelerated filer | ☐ | Non-accelerated filer | ☐ | |||||||||||||||||||
Smaller reporting company | Emerging growth company |
Page | ||||||||
Exhibits | ||||||||
December 31, 2022 | June 30, 2022 | ||||||||||
Assets | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Accounts receivable (net of $ | |||||||||||
Contract assets (net of $ | |||||||||||
Inventory | |||||||||||
Prepaid expenses and other current assets | |||||||||||
Total current assets | |||||||||||
Property and equipment (net of $ | |||||||||||
Intangible assets (net of $ | |||||||||||
Goodwill | |||||||||||
Deferred income tax assets | |||||||||||
Deferred compensation plan assets | |||||||||||
Investments in unconsolidated affiliates | |||||||||||
Operating lease right-of-use assets | |||||||||||
Other assets | |||||||||||
Total assets | $ | $ | |||||||||
Liabilities and stockholders' equity | |||||||||||
Accounts payable | $ | $ | |||||||||
Accrued expenses | |||||||||||
Revenue share obligations | |||||||||||
Accrued compensation and benefits | |||||||||||
Deferred revenue | |||||||||||
Current portion of notes payable to former limited partners | |||||||||||
Line of credit and current portion of long-term debt | |||||||||||
Other current liabilities | |||||||||||
Total current liabilities | |||||||||||
Long-term debt, less current portion | |||||||||||
Notes payable to former limited partners, less current portion | |||||||||||
Deferred compensation plan obligations | |||||||||||
Deferred consideration, less current portion | |||||||||||
Operating lease liabilities, less current portion | |||||||||||
Other liabilities | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies (Note 13) |
December 31, 2022 | June 30, 2022 | ||||||||||
Stockholders' equity: | |||||||||||
Class A common stock, $ | |||||||||||
Treasury stock, at cost; | ( | ( | |||||||||
Additional paid-in capital | |||||||||||
Retained earnings | |||||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Total stockholders' equity | |||||||||||
Total liabilities and stockholders' equity | $ | $ |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Net revenue: | |||||||||||||||||||||||
Net administrative fees | $ | $ | $ | $ | |||||||||||||||||||
Software licenses, other services and support | |||||||||||||||||||||||
Services and software licenses | |||||||||||||||||||||||
Products | |||||||||||||||||||||||
Net revenue | |||||||||||||||||||||||
Cost of revenue: | |||||||||||||||||||||||
Services and software licenses | |||||||||||||||||||||||
Products | |||||||||||||||||||||||
Cost of revenue | |||||||||||||||||||||||
Gross profit | |||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Selling, general and administrative | |||||||||||||||||||||||
Research and development | |||||||||||||||||||||||
Amortization of purchased intangible assets | |||||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||
Operating income | |||||||||||||||||||||||
Equity in net income of unconsolidated affiliates | |||||||||||||||||||||||
Interest expense, net | ( | ( | ( | ( | |||||||||||||||||||
Gain on FFF Put and Call Rights | |||||||||||||||||||||||
Other income, net | |||||||||||||||||||||||
Other (expense) income, net | ( | ||||||||||||||||||||||
Income before income taxes | |||||||||||||||||||||||
Income tax expense | |||||||||||||||||||||||
Net income | |||||||||||||||||||||||
Net income attributable to non-controlling interest | ( | ( | ( | ( | |||||||||||||||||||
Net income attributable to stockholders | $ | $ | $ | $ | |||||||||||||||||||
Comprehensive income: | |||||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Comprehensive income attributable to non-controlling interest | ( | ( | ( | ( | |||||||||||||||||||
Foreign currency translation gain (loss) | ( | ( | ( | ||||||||||||||||||||
Comprehensive income attributable to stockholders | $ | $ | $ | $ | |||||||||||||||||||
Weighted average shares outstanding: | |||||||||||||||||||||||
Basic | |||||||||||||||||||||||
Diluted | |||||||||||||||||||||||
Earnings per share attributable to stockholders: | |||||||||||||||||||||||
Basic | $ | $ | $ | $ | |||||||||||||||||||
Diluted | $ | $ | $ | $ |
Class A Common Stock | Treasury Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Total Stockholders' Equity | ||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2022 | $ | $ | ( | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||
Issuance of Class A common stock under equity incentive plan | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Repurchase of vested restricted units for employee tax-withholding | — | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Net income attributable to non-controlling interest | — | — | — | — | ( | — | |||||||||||||||||||||||||||||||||||||||||
Change in ownership of consolidated entity | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Dividends ($ | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2022 | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Issuance of Class A common stock under equity incentive plan | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Issuance of Class A common stock under employee stock purchase plan | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Repurchase of vested restricted units for employee tax-withholding | — | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Net income attributable to non-controlling interest | — | — | — | — | ( | — | |||||||||||||||||||||||||||||||||||||||||
Change in ownership of consolidated entity | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Dividends ($ | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Other | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2022 | $ | $ | ( | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||
Class A Common Stock | Treasury Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Total Stockholders' Equity | ||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2021 | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||
Issuance of Class A common stock under equity incentive plan | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Treasury stock | ( | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Repurchase of vested restricted units for employee tax-withholding | — | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Net loss attributable to non-controlling interest | — | — | — | — | ( | — | |||||||||||||||||||||||||||||||||||||||||
Dividends ($ | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||
Non-controlling interest related to acquisition | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2021 | ( | ||||||||||||||||||||||||||||||||||||||||||||||
Issuance of Class A common stock under equity incentive plan | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Issuance of Class A common stock under employee stock purchase plan | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Treasury stock | ( | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Repurchase of vested restricted units for employee tax-withholding | — | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Net income attributable to non-controlling interest | — | — | — | — | ( | — | |||||||||||||||||||||||||||||||||||||||||
Change in ownership of consolidated entity | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Dividends ($ | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2021 | $ | $ | ( | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||
Six Months Ended December 31, | |||||||||||
2022 | 2021 | ||||||||||
Operating activities | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Equity in net income of unconsolidated affiliates | ( | ( | |||||||||
Deferred income taxes | |||||||||||
Stock-based compensation | |||||||||||
Gain on FFF Put and Call Rights | ( | ||||||||||
Other | |||||||||||
Changes in operating assets and liabilities, net of the effects of acquisitions: | |||||||||||
Accounts receivable, inventories, prepaid expenses and other assets | |||||||||||
Contract assets | ( | ( | |||||||||
Accounts payable, accrued expenses, deferred revenue, revenue share obligations and other liabilities | ( | ||||||||||
Net cash provided by operating activities | |||||||||||
Investing activities | |||||||||||
Purchases of property and equipment | ( | ( | |||||||||
Acquisition of businesses and equity method investments, net of cash acquired | ( | ( | |||||||||
Other | ( | ||||||||||
Net cash used in investing activities | ( | ( | |||||||||
Financing activities | |||||||||||
Payments made on notes payable | ( | ( | |||||||||
Proceeds from credit facility | |||||||||||
Payments on credit facility | ( | ( | |||||||||
Proceeds from exercise of stock options under equity incentive plan | |||||||||||
Cash dividends paid | ( | ( | |||||||||
Repurchase of Class A common stock (held as treasury stock) | ( | ||||||||||
Other | ( | ||||||||||
Net cash provided by (used in) financing activities | ( | ||||||||||
Effect of exchange rate changes on cash flows | ( | ( | |||||||||
Net increase (decrease) in cash and cash equivalents | ( | ||||||||||
Cash and cash equivalents at beginning of period | |||||||||||
Cash and cash equivalents at end of period | $ | $ |
Six Months Ended December 31, | |||||||||||
2022 | 2021 | ||||||||||
Supplemental schedule of non-cash investing and financing activities: | |||||||||||
Increase in treasury stock related to a payable as a result of applying trade date accounting when recording the repurchase of Class A common stock | $ | $ | |||||||||
Non-cash additions to property and equipment | |||||||||||
Accrued dividend equivalents |
Equity in Net Income | |||||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||
Carrying Value | December 31, | December 31, | |||||||||||||||||||||||||||||||||
December 31, 2022 | June 30, 2022 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||||
FFF | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Exela | |||||||||||||||||||||||||||||||||||
Qventus | |||||||||||||||||||||||||||||||||||
Prestige | |||||||||||||||||||||||||||||||||||
Other investments | |||||||||||||||||||||||||||||||||||
Total investments | $ | $ | $ | $ | $ | $ |
Fair Value of Financial Assets and Liabilities | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||
December 31, 2022 | |||||||||||||||||||||||
Cash equivalents | $ | $ | $ | $ | |||||||||||||||||||
Deferred compensation plan assets | |||||||||||||||||||||||
Total assets | |||||||||||||||||||||||
Earn-out liabilities | |||||||||||||||||||||||
Total liabilities | $ | $ | $ | $ | |||||||||||||||||||
June 30, 2022 | |||||||||||||||||||||||
Cash equivalents | $ | $ | $ | $ | |||||||||||||||||||
Deferred compensation plan assets | |||||||||||||||||||||||
Total assets | |||||||||||||||||||||||
Earn-out liabilities | |||||||||||||||||||||||
Total liabilities | $ | $ | $ | $ |
Input assumptions | As of December 31, 2022 | As of June 30, 2022 | |||||||||
Probability of transferred member renewal percentage < 50% | % | % | |||||||||
Probability of transferred member renewal percentage between 50% and 65% | % | % | |||||||||
Probability of transferred member renewal percentage between 65% and 80% | % | % | |||||||||
Probability of transferred member renewal percentage > 80% | % | % | |||||||||
Credit spread | % | % |
Beginning Balance | Purchases (Settlements)(a) | (Gain)/Loss (b) | Ending Balance | ||||||||||||||||||||
Three Months Ended December 31, 2022 | |||||||||||||||||||||||
Earn-out liabilities | $ | $ | $ | $ | |||||||||||||||||||
$ | $ | $ | $ | ||||||||||||||||||||
Three Months Ended December 31, 2021 | |||||||||||||||||||||||
Earn-out liabilities | $ | $ | $ | ( | $ | ||||||||||||||||||
$ | $ | $ | ( | $ | |||||||||||||||||||
Six Months Ended December 31, 2022 | |||||||||||||||||||||||
Earn-out liabilities | $ | $ | $ | ( | $ | ||||||||||||||||||
$ | $ | $ | ( | $ | |||||||||||||||||||
Six Months Ended December 31, 2021 | |||||||||||||||||||||||
Earn-out liabilities | $ | $ | $ | ( | $ | ||||||||||||||||||
FFF put right | ( | ||||||||||||||||||||||
$ | $ | ( | $ | ( | $ |
Supply Chain Services | Performance Services | Total | |||||||||||||||
June 30, 2022 | $ | $ | $ | ||||||||||||||
Acquisition of businesses and assets | |||||||||||||||||
December 31, 2022 | $ | $ | $ |
Useful Life | December 31, 2022 | June 30, 2022 | |||||||||||||||
Member relationships | $ | $ | |||||||||||||||
Provider network | |||||||||||||||||
Technology | |||||||||||||||||
Customer relationships | |||||||||||||||||
Non-compete agreements | |||||||||||||||||
Trade names | |||||||||||||||||
Other (a) | |||||||||||||||||
Total intangible assets | |||||||||||||||||
Accumulated amortization | ( | ( | |||||||||||||||
Total intangible assets, net | $ | $ |
December 31, 2022 | June 30, 2022 | ||||||||||
Supply Chain Services | $ | $ | |||||||||
Performance Services (a) | |||||||||||
Total intangible assets, net | $ | $ |
2023 (a) | $ | ||||
2024 | |||||
2025 | |||||
2026 | |||||
2027 | |||||
Thereafter | |||||
Total amortization expense | $ |
December 31, 2022 | June 30, 2022 | ||||||||||
Credit facility | $ | $ | |||||||||
Notes payable to members, net of discount | |||||||||||
Other notes payable | |||||||||||
Total debt and notes payable | |||||||||||
Less: current portion | ( | ( | |||||||||
Total long-term debt and notes payable | $ | $ |
Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Numerator for basic earnings per share: | |||||||||||||||||||||||
Net income attributable to stockholders (a) | $ | $ | $ | $ | |||||||||||||||||||
Numerator for diluted earnings per share: | |||||||||||||||||||||||
Net income attributable to stockholders (a) | $ | $ | $ | $ | |||||||||||||||||||
Net loss attributable to non-controlling interest | |||||||||||||||||||||||
Net income for diluted earnings per share | $ | $ | $ | $ |
Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Denominator for earnings per share: | |||||||||||||||||||||||
Basic weighted average shares outstanding (b) | |||||||||||||||||||||||
Effect of dilutive securities: (c) | |||||||||||||||||||||||
Stock options | |||||||||||||||||||||||
Restricted stock | |||||||||||||||||||||||
Performance share awards | |||||||||||||||||||||||
Diluted weighted average shares and assumed conversions | |||||||||||||||||||||||
Earnings per share attributable to stockholders: | |||||||||||||||||||||||
Basic | $ | $ | $ | $ | |||||||||||||||||||
Diluted | $ | $ | $ | $ |
Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Net income attributable to non-controlling interest | ( | ( | ( | ( | |||||||||||||||||||
Net income attributable to stockholders | $ | $ | $ | $ |
Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Pre-tax stock-based compensation expense | $ | $ | $ | $ | |||||||||||||||||||
Less: deferred tax benefit (a) | |||||||||||||||||||||||
Total stock-based compensation expense, net of tax | $ | $ | $ | $ |
Restricted Stock | Performance Share Awards | Stock Options | |||||||||||||||||||||||||||||||||
Number of Awards | Weighted Average Fair Value at Grant Date | Number of Awards | Weighted Average Fair Value at Grant Date | Number of Options | Weighted Average Exercise Price | ||||||||||||||||||||||||||||||
Outstanding at June 30, 2022 | $ | $ | $ | ||||||||||||||||||||||||||||||||
Granted | |||||||||||||||||||||||||||||||||||
Vested/exercised | ( | ( | ( | ||||||||||||||||||||||||||||||||
Forfeited | ( | ( | ( | ||||||||||||||||||||||||||||||||
Outstanding at December 31, 2022 | $ | $ | $ | ||||||||||||||||||||||||||||||||
Stock options outstanding and exercisable at December 31, 2022 | $ |
Unrecognized Stock-Based Compensation Expense | Weighted Average Amortization Period | ||||||||||
Restricted stock | $ | ||||||||||
Performance share awards | |||||||||||
Total unrecognized stock-based compensation expense | $ |
Intrinsic Value of Stock Options | |||||
Outstanding and exercisable | $ | ||||
Exercised during the six months ended December 31, 2022 |
December 31, 2022 | June 30, 2022 | ||||||||||
2023 (a) | $ | $ | |||||||||
2024 | |||||||||||
2025 | |||||||||||
2026 | |||||||||||
2027 | |||||||||||
Total future minimum lease payments | |||||||||||
Less: imputed interest | |||||||||||
$ | $ |
Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Net revenue: | |||||||||||||||||||||||
Supply Chain Services | |||||||||||||||||||||||
Net administrative fees | $ | $ | $ | $ | |||||||||||||||||||
Software licenses, other services and support | |||||||||||||||||||||||
Services and software licenses | |||||||||||||||||||||||
Products | |||||||||||||||||||||||
Total Supply Chain Services (a) | |||||||||||||||||||||||
Performance Services | |||||||||||||||||||||||
Software licenses, other services and support | |||||||||||||||||||||||
SaaS-based products subscriptions | |||||||||||||||||||||||
Consulting services | |||||||||||||||||||||||
Software licenses | |||||||||||||||||||||||
Other(b) | |||||||||||||||||||||||
Total Performance Services (a) | |||||||||||||||||||||||
Total segment net revenue | |||||||||||||||||||||||
Eliminations (a) | ( | ( | ( | ( | |||||||||||||||||||
Net revenue | $ | $ | $ | $ |
Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Depreciation and amortization expense (a): | |||||||||||||||||||||||
Supply Chain Services | $ | $ | $ | $ | |||||||||||||||||||
Performance Services | |||||||||||||||||||||||
Corporate | |||||||||||||||||||||||
Total depreciation and amortization expense | $ | $ | $ | $ | |||||||||||||||||||
Capital expenditures: | |||||||||||||||||||||||
Supply Chain Services | $ | $ | $ | $ | |||||||||||||||||||
Performance Services | |||||||||||||||||||||||
Corporate | |||||||||||||||||||||||
Total capital expenditures | $ | $ | $ | $ |
December 31, 2022 | June 30, 2022 | ||||||||||
Total assets: | |||||||||||
Supply Chain Services | $ | $ | |||||||||
Performance Services | |||||||||||
Corporate | |||||||||||
Total assets | |||||||||||
Eliminations (b) | ( | ( | |||||||||
Total assets, net | $ | $ |
Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Income before income taxes | $ | $ | $ | $ | |||||||||||||||||||
Equity in net income of unconsolidated affiliates (a) | ( | ( | ( | ( | |||||||||||||||||||
Interest expense, net | |||||||||||||||||||||||
Gain on FFF Put and Call Rights (b) | ( | ||||||||||||||||||||||
Other expense, net | ( | ( | ( | ( | |||||||||||||||||||
Operating income | |||||||||||||||||||||||
Depreciation and amortization | |||||||||||||||||||||||
Amortization of purchased intangible assets | |||||||||||||||||||||||
Stock-based compensation (c) | |||||||||||||||||||||||
Acquisition- and disposition-related expenses | |||||||||||||||||||||||
Strategic initiative and financial restructuring-related expenses | |||||||||||||||||||||||
Equity in net income of unconsolidated affiliates (a) | |||||||||||||||||||||||
Deferred compensation plan income (d) | |||||||||||||||||||||||
Other reconciling items, net | |||||||||||||||||||||||
Non-GAAP Adjusted EBITDA | $ | $ | $ | $ | |||||||||||||||||||
Segment Non-GAAP Adjusted EBITDA: | |||||||||||||||||||||||
Supply Chain Services (e) | $ | $ | $ | $ | |||||||||||||||||||
Performance Services (e) | |||||||||||||||||||||||
Corporate | ( | ( | ( | ( | |||||||||||||||||||
Non-GAAP Adjusted EBITDA | $ | $ | $ | $ |
Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Net revenue | $ | 359,626 | $ | 379,215 | $ | 673,499 | $ | 744,362 | |||||||||||||||
Net income | 64,374 | 77,232 | 107,333 | 198,538 | |||||||||||||||||||
Non-GAAP Adjusted EBITDA | 140,536 | 142,016 | 249,916 | 263,719 |
Three Months Ended December 31, | Change | % of Net Revenue | |||||||||||||||||||||||||||||||||
Net revenue: | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||
Supply Chain Services | $ | 235,520 | $ | 271,495 | $ | (35,975) | (13) | % | 65 | % | 72 | % | |||||||||||||||||||||||
Performance Services | 124,115 | 107,729 | 16,386 | 15 | % | 35 | % | 28 | % | ||||||||||||||||||||||||||
Segment net revenue | $ | 359,635 | $ | 379,224 | $ | (19,589) | (5) | % | 100 | % | 100 | % |
Six Months Ended December 31, | Change | % of Net Revenue | |||||||||||||||||||||||||||||||||
Net revenue: | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||
Supply Chain Services | $ | 455,214 | $ | 548,312 | $ | (93,098) | (17) | % | 68 | % | 74 | % | |||||||||||||||||||||||
Performance Services | 218,304 | 196,059 | 22,245 | 11 | % | 32 | % | 26 | % | ||||||||||||||||||||||||||
Segment net revenue | $ | 673,518 | $ | 744,371 | $ | (70,853) | (10) | % | 100 | % | 100 | % |
Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||||||||||||||||||
Amount | % of Net Revenue | Amount | % of Net Revenue | Amount | % of Net Revenue | Amount | % of Net Revenue | ||||||||||||||||||||||||||||||||||||||||
Net revenue: | |||||||||||||||||||||||||||||||||||||||||||||||
Net administrative fees | $ | 154,423 | 43% | $ | 150,403 | 40% | $ | 304,429 | 45% | $ | 299,865 | 40% | |||||||||||||||||||||||||||||||||||
Software licenses, other services and support | 138,210 | 38% | 117,046 | 31% | 243,216 | 36% | 214,301 | 29% | |||||||||||||||||||||||||||||||||||||||
Services and software licenses | 292,633 | 81% | 267,449 | 71% | 547,645 | 81% | 514,166 | 69% | |||||||||||||||||||||||||||||||||||||||
Products | 66,993 | 19% | 111,766 | 29% | 125,854 | 19% | 230,196 | 31% | |||||||||||||||||||||||||||||||||||||||
Net revenue | 359,626 | 100% | 379,215 | 100% | 673,499 | 100% | 744,362 | 100% | |||||||||||||||||||||||||||||||||||||||
Cost of revenue: | |||||||||||||||||||||||||||||||||||||||||||||||
Services and software licenses | 55,265 | 15% | 45,782 | 12% | 109,279 | 16% | 89,591 | 12% | |||||||||||||||||||||||||||||||||||||||
Products | 61,620 | 17% | 96,933 | 26% | 119,494 | 18% | 206,295 | 28% | |||||||||||||||||||||||||||||||||||||||
Cost of revenue | 116,885 | 33% | 142,715 | 38% | 228,773 | 34% | 295,886 | 40% | |||||||||||||||||||||||||||||||||||||||
Gross profit | 242,741 | 67% | 236,500 | 62% | 444,726 | 66% | 448,476 | 60% | |||||||||||||||||||||||||||||||||||||||
Operating expenses | 154,575 | 43% | 158,536 | 42% | 298,052 | 44% | 298,233 | 40% | |||||||||||||||||||||||||||||||||||||||
Operating income | 88,166 | 25% | 77,964 | 21% | 146,674 | 22% | 150,243 | 20% | |||||||||||||||||||||||||||||||||||||||
Other (expense) income, net | (27) | —% | 5,635 | 1% | 3,193 | —% | 73,695 | 10% | |||||||||||||||||||||||||||||||||||||||
Income before income taxes | 88,139 | 25% | 83,599 | 22% | 149,867 | 22% | 223,938 | 30% | |||||||||||||||||||||||||||||||||||||||
Income tax expense | 23,765 | 7% | 6,367 | 2% | 42,534 | 6% | 25,400 | 3% | |||||||||||||||||||||||||||||||||||||||
Net income | 64,374 | 18% | 77,232 | 20% | 107,333 | 16% | 198,538 | 27% | |||||||||||||||||||||||||||||||||||||||
Net income attributable to non-controlling interest | (328) | —% | (1,687) | —% | (571) | —% | (989) | —% | |||||||||||||||||||||||||||||||||||||||
Net income attributable to stockholders | $ | 64,046 | 18% | $ | 75,545 | 20% | $ | 106,762 | 16% | $ | 197,549 | 27% | |||||||||||||||||||||||||||||||||||
Earnings per share attributable to stockholders: | |||||||||||||||||||||||||||||||||||||||||||||||
Basic | $ | 0.54 | $ | 0.62 | $ | 0.90 | $ | 1.62 | |||||||||||||||||||||||||||||||||||||||
Diluted | $ | 0.54 | $ | 0.62 | $ | 0.89 | $ | 1.61 |
Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||||||||||||||||||
Certain Non-GAAP Financial Data: | Amount | % of Net Revenue | Amount | % of Net Revenue | Amount | % of Net Revenue | Amount | % of Net Revenue | |||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 140,536 | 39% | $ | 142,016 | 37% | $ | 249,916 | 37% | $ | 263,719 | 35% | |||||||||||||||||||||||||||||||||||
Non-GAAP Adjusted Net Income | 85,650 | 24% | 90,011 | 24% | 148,162 | 22% | 165,145 | 22% | |||||||||||||||||||||||||||||||||||||||
Non-GAAP Adjusted Earnings Per Share | 0.72 | nm | 0.73 | nm | 1.24 | nm | 1.34 | nm |
Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Net income | $ | 64,374 | $ | 77,232 | $ | 107,333 | $ | 198,538 | |||||||||||||||
Interest expense, net | 4,631 | 2,873 | 7,490 | 5,661 | |||||||||||||||||||
Income tax expense | 23,765 | 6,367 | 42,534 | 25,400 | |||||||||||||||||||
Depreciation and amortization | 21,439 | 20,870 | 44,878 | 41,466 | |||||||||||||||||||
Amortization of purchased intangible assets | 13,047 | 10,850 | 23,499 | 21,739 | |||||||||||||||||||
EBITDA | 127,256 | 118,192 | 225,734 | 292,804 | |||||||||||||||||||
Stock-based compensation | 2,801 | 16,330 | 10,150 | 24,081 | |||||||||||||||||||
Acquisition- and disposition-related expenses | 3,138 | 3,746 | 5,298 | 7,167 | |||||||||||||||||||
Strategic initiative and financial restructuring-related expenses | 7,527 | 3,749 | 9,046 | 3,774 | |||||||||||||||||||
Gain on FFF Put and Call Rights | — | — | — | (64,110) | |||||||||||||||||||
Other reconciling items, net (a) | (186) | (1) | (312) | 3 | |||||||||||||||||||
Adjusted EBITDA | $ | 140,536 | $ | 142,016 | $ | 249,916 | $ | 263,719 | |||||||||||||||
Income before income taxes | $ | 88,139 | $ | 83,599 | $ | 149,867 | $ | 223,938 | |||||||||||||||
Equity in net income of unconsolidated affiliates | (1,674) | (6,116) | (9,917) | (13,174) | |||||||||||||||||||
Interest expense, net | 4,631 | 2,873 | 7,490 | 5,661 | |||||||||||||||||||
Gain on FFF Put and Call Rights | — | — | — | (64,110) | |||||||||||||||||||
Other expense, net | (2,930) | (2,392) | (766) | (2,072) | |||||||||||||||||||
Operating income | 88,166 | 77,964 | 146,674 | 150,243 | |||||||||||||||||||
Depreciation and amortization | 21,439 | 20,870 | 44,878 | 41,466 | |||||||||||||||||||
Amortization of purchased intangible assets | 13,047 | 10,850 | 23,499 | 21,739 | |||||||||||||||||||
Stock-based compensation | 2,801 | 16,330 | 10,150 | 24,081 | |||||||||||||||||||
Acquisition- and disposition-related expenses | 3,138 | 3,746 | 5,298 | 7,167 | |||||||||||||||||||
Strategic initiative and financial restructuring-related expenses | 7,527 | 3,749 | 9,046 | 3,774 | |||||||||||||||||||
Equity in net income of unconsolidated affiliates | 1,674 | 6,116 | 9,917 | 13,174 | |||||||||||||||||||
Deferred compensation plan income | 2,659 | 2,389 | 289 | 2,071 | |||||||||||||||||||
Other reconciling items, net (b) | 85 | 2 | 165 | 4 | |||||||||||||||||||
Adjusted EBITDA | $ | 140,536 | $ | 142,016 | $ | 249,916 | $ | 263,719 |
Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Segment Adjusted EBITDA: | |||||||||||||||||||||||
Supply Chain Services | $ | 127,991 | $ | 134,280 | $ | 249,188 | $ | 263,549 | |||||||||||||||
Performance Services | 43,203 | 39,010 | 62,569 | 62,725 | |||||||||||||||||||
Corporate | (30,658) | (31,274) | (61,841) | (62,555) | |||||||||||||||||||
Adjusted EBITDA | $ | 140,536 | $ | 142,016 | $ | 249,916 | $ | 263,719 |
Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Net income attributable to stockholders | $ | 64,046 | $ | 75,545 | $ | 106,762 | $ | 197,549 | |||||||||||||||
Net income attributable to non-controlling interest | 328 | 1,687 | 571 | 989 | |||||||||||||||||||
Income tax expense | 23,765 | 6,367 | 42,534 | 25,400 | |||||||||||||||||||
Amortization of purchased intangible assets | 13,047 | 10,850 | 23,499 | 21,739 | |||||||||||||||||||
Stock-based compensation | 2,801 | 16,330 | 10,150 | 24,081 | |||||||||||||||||||
Acquisition- and disposition-related expenses | 3,138 | 3,746 | 5,298 | 7,167 | |||||||||||||||||||
Strategic initiative and financial restructuring-related expenses | 7,527 | 3,749 | 9,046 | 3,774 | |||||||||||||||||||
Gain on FFF Put and Call Rights | — | — | — | (64,110) | |||||||||||||||||||
Other reconciling items, net (a) | 1,091 | 1,741 | 2,359 | 3,604 | |||||||||||||||||||
Non-GAAP adjusted income before income taxes | 115,743 | 120,015 | 200,219 | 220,193 | |||||||||||||||||||
Income tax expense on adjusted income before income taxes (b) | 30,093 | 30,004 | 52,057 | 55,048 | |||||||||||||||||||
Non-GAAP Adjusted Net Income | $ | 85,650 | $ | 90,011 | $ | 148,162 | $ | 165,145 | |||||||||||||||
Reconciliation of denominator for earnings per share attributable to stockholders to Non-GAAP Adjusted Earnings per Share | |||||||||||||||||||||||
Weighted Average: | |||||||||||||||||||||||
Basic weighted average shares outstanding | 118,787 | 121,181 | 118,569 | 122,063 | |||||||||||||||||||
Dilutive securities | 865 | 1,292 | 1,273 | 1,460 | |||||||||||||||||||
Weighted average shares outstanding - diluted | 119,652 | 122,473 | 119,842 | 123,523 | |||||||||||||||||||
Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Basic earnings per share attributable to stockholders | $ | 0.54 | $ | 0.62 | $ | 0.90 | $ | 1.62 | |||||||||||||||
Net income attributable to non-controlling interest | — | 0.01 | — | 0.01 | |||||||||||||||||||
Income tax expense | 0.20 | 0.05 | 0.36 | 0.21 | |||||||||||||||||||
Amortization of purchased intangible assets | 0.11 | 0.09 | 0.20 | 0.18 | |||||||||||||||||||
Stock-based compensation | 0.02 | 0.13 | 0.09 | 0.20 | |||||||||||||||||||
Acquisition- and disposition-related expenses | 0.03 | 0.03 | 0.04 | 0.06 | |||||||||||||||||||
Strategic initiative and financial restructuring-related expenses | 0.06 | 0.03 | 0.08 | 0.03 | |||||||||||||||||||
Gain on FFF Put and Call Rights | — | — | — | (0.53) | |||||||||||||||||||
Other reconciling items, net (a) | 0.01 | 0.03 | 0.02 | 0.03 | |||||||||||||||||||
Impact of corporation taxes (b) | (0.25) | (0.25) | (0.44) | (0.45) | |||||||||||||||||||
Impact of dilutive shares | — | (0.01) | (0.01) | (0.02) | |||||||||||||||||||
Non-GAAP Adjusted Earnings Per Share | $ | 0.72 | $ | 0.73 | $ | 1.24 | $ | 1.34 |
Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | Change | 2022 | 2021 | Change | ||||||||||||||||||||||||||||||||||||||||||
Net revenue: | |||||||||||||||||||||||||||||||||||||||||||||||
Net administrative fees | $ | 154,423 | $ | 150,403 | $ | 4,020 | 3% | $ | 304,429 | $ | 299,865 | $ | 4,564 | 2% | |||||||||||||||||||||||||||||||||
Software licenses, other services and support | 14,104 | 9,326 | 4,778 | 51% | 24,931 | 18,251 | 6,680 | 37% | |||||||||||||||||||||||||||||||||||||||
Services and software licenses | 168,527 | 159,729 | 8,798 | 6% | 329,360 | 318,116 | 11,244 | 4% | |||||||||||||||||||||||||||||||||||||||
Products | 66,993 | 111,766 | (44,773) | (40)% | 125,854 | 230,196 | (104,342) | (45)% | |||||||||||||||||||||||||||||||||||||||
Net revenue | 235,520 | 271,495 | (35,975) | (13)% | 455,214 | 548,312 | (93,098) | (17)% | |||||||||||||||||||||||||||||||||||||||
Cost of revenue: | |||||||||||||||||||||||||||||||||||||||||||||||
Services and software licenses | 4,389 | 3,267 | 1,122 | 34% | 9,597 | 6,638 | 2,959 | 45% | |||||||||||||||||||||||||||||||||||||||
Products | 61,620 | 96,933 | (35,313) | (36)% | 119,494 | 206,295 | (86,801) | (42)% | |||||||||||||||||||||||||||||||||||||||
Cost of revenue | 66,009 | 100,200 | (34,191) | (34)% | 129,091 | 212,933 | (83,842) | (39)% | |||||||||||||||||||||||||||||||||||||||
Gross profit | 169,511 | 171,295 | (1,784) | (1)% | 326,123 | 335,379 | (9,256) | (3)% | |||||||||||||||||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative | 49,792 | 48,454 | 1,338 | 3% | 99,815 | 96,498 | 3,317 | 3% | |||||||||||||||||||||||||||||||||||||||
Research and development | 116 | 72 | 44 | 61% | 245 | 236 | 9 | 4% | |||||||||||||||||||||||||||||||||||||||
Amortization of purchased intangible assets | 7,956 | 8,116 | (160) | (2)% | 16,039 | 16,252 | (213) | (1)% | |||||||||||||||||||||||||||||||||||||||
Operating expenses | 57,864 | 56,642 | 1,222 | 2% | 116,099 | 112,986 | 3,113 | 3% | |||||||||||||||||||||||||||||||||||||||
Operating income | 111,647 | 114,653 | (3,006) | (3)% | 210,024 | 222,393 | (12,369) | (6)% | |||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 5,654 | 5,336 | 11,821 | 10,344 | |||||||||||||||||||||||||||||||||||||||||||
Amortization of purchased intangible assets | 7,956 | 8,116 | 16,039 | 16,252 | |||||||||||||||||||||||||||||||||||||||||||
Acquisition- and disposition-related expenses | 1,001 | 56 | 1,510 | 1,608 | |||||||||||||||||||||||||||||||||||||||||||
Equity in net income of unconsolidated affiliates | 1,676 | 6,116 | 9,684 | 12,946 | |||||||||||||||||||||||||||||||||||||||||||
Other reconciling items, net | 57 | 3 | 110 | 6 | |||||||||||||||||||||||||||||||||||||||||||
Segment Adjusted EBITDA | $ | 127,991 | $ | 134,280 | $ | (6,289) | (5)% | $ | 249,188 | $ | 263,549 | $ | (14,361) | (5)% |
Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | Change | 2022 | 2021 | Change | ||||||||||||||||||||||||||||||||||||||||||
Net revenue: | |||||||||||||||||||||||||||||||||||||||||||||||
Software licenses, other services and support | |||||||||||||||||||||||||||||||||||||||||||||||
SaaS-based products subscriptions | $ | 49,664 | $ | 48,317 | $ | 1,347 | 3% | 97,412 | 95,010 | $ | 2,402 | 3% | |||||||||||||||||||||||||||||||||||
Consulting services | 18,514 | 15,105 | 3,409 | 23% | 35,876 | 30,098 | 5,778 | 19% | |||||||||||||||||||||||||||||||||||||||
Software licenses | 30,804 | 23,464 | 7,340 | 31% | 36,797 | 31,864 | 4,933 | 15% | |||||||||||||||||||||||||||||||||||||||
Other | 25,133 | 20,843 | 4,290 | 21% | 48,219 | 39,087 | 9,132 | 23% | |||||||||||||||||||||||||||||||||||||||
Net revenue | 124,115 | 107,729 | 16,386 | 15% | 218,304 | 196,059 | 22,245 | 11% | |||||||||||||||||||||||||||||||||||||||
Cost of revenue: | |||||||||||||||||||||||||||||||||||||||||||||||
Services and software licenses | 50,876 | 42,515 | 8,361 | 20% | 99,682 | 82,953 | 16,729 | 20% | |||||||||||||||||||||||||||||||||||||||
Cost of revenue | 50,876 | 42,515 | 8,361 | 20% | 99,682 | 82,953 | 16,729 | 20% | |||||||||||||||||||||||||||||||||||||||
Gross profit | 73,239 | 65,214 | 8,025 | 12% | 118,622 | 113,106 | 5,516 | 5% | |||||||||||||||||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative | 45,026 | 42,462 | 2,564 | 6% | 87,157 | 81,263 | 5,894 | 7% | |||||||||||||||||||||||||||||||||||||||
Research and development | 884 | 774 | 110 | 14% | 1,730 | 1,604 | 126 | 8% | |||||||||||||||||||||||||||||||||||||||
Amortization of purchased intangible assets | 5,091 | 2,734 | 2,357 | 86% | 7,460 | 5,487 | 1,973 | 36% | |||||||||||||||||||||||||||||||||||||||
Operating expenses | 51,001 | 45,970 | 5,031 | 11% | 96,347 | 88,354 | 7,993 | 9% | |||||||||||||||||||||||||||||||||||||||
Operating income | 22,238 | 19,244 | 2,994 | 16% | 22,275 | 24,752 | (2,477) | (10)% | |||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 13,711 | 13,342 | 28,758 | 26,699 | |||||||||||||||||||||||||||||||||||||||||||
Amortization of purchased intangible assets | 5,091 | 2,734 | 7,460 | 5,487 | |||||||||||||||||||||||||||||||||||||||||||
Acquisition- and disposition-related expenses | 2,137 | 3,690 | 3,788 | 5,559 | |||||||||||||||||||||||||||||||||||||||||||
Equity in net (loss) income of unconsolidated affiliates | (2) | — | 233 | 228 | |||||||||||||||||||||||||||||||||||||||||||
Other reconciling items, net | 28 | — | 55 | — | |||||||||||||||||||||||||||||||||||||||||||
Segment Adjusted EBITDA | $ | 43,203 | $ | 39,010 | $ | 4,193 | 11% | $ | 62,569 | $ | 62,725 | $ | (156) | —% |
Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | Change | 2022 | 2021 | Change | ||||||||||||||||||||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative | $ | 45,719 | $ | 55,933 | $ | (10,214) | (18)% | $ | 85,625 | $ | 96,902 | $ | (11,277) | (12)% | |||||||||||||||||||||||||||||||||
Operating expenses | 45,719 | 55,933 | (10,214) | (18)% | 85,625 | 96,902 | (11,277) | (12)% | |||||||||||||||||||||||||||||||||||||||
Operating loss | (45,719) | (55,933) | 10,214 | (18)% | (85,625) | (96,902) | 11,277 | (12)% | |||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 2,074 | 2,192 | 4,299 | 4,423 | |||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | 2,801 | 16,330 | 10,150 | 24,081 | |||||||||||||||||||||||||||||||||||||||||||
Strategic initiative and financial restructuring-related expenses | 7,527 | 3,749 | 9,046 | 3,774 | |||||||||||||||||||||||||||||||||||||||||||
Deferred compensation plan income | 2,659 | 2,389 | 289 | 2,071 | |||||||||||||||||||||||||||||||||||||||||||
Other reconciling items, net | — | (1) | — | (2) | |||||||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | (30,658) | $ | (31,274) | $ | 616 | 2% | $ | (61,841) | $ | (62,555) | $ | 714 | 1% |
Six Months Ended December 31, | |||||||||||
2022 | 2021 | ||||||||||
Net cash provided by (used in): | |||||||||||
Operating activities | $ | 196,725 | $ | 197,527 | |||||||
Investing activities | (227,466) | (68,660) | |||||||||
Financing activities | 39,230 | (171,846) | |||||||||
Effect of exchange rate changes on cash flows | (9) | (1) | |||||||||
Net increase (decrease) in cash and cash equivalents | $ | 8,480 | $ | (42,980) |
Six Months Ended December 31, | |||||||||||
2022 | 2021 | ||||||||||
Net cash provided by operating activities | $ | 196,725 | $ | 197,527 | |||||||
Purchases of property and equipment | (38,416) | (42,660) | |||||||||
Early termination payments to certain former limited partners that elected to execute a Unit Exchange Agreement (a) | (48,670) | (47,741) | |||||||||
Non-GAAP Free Cash Flow | $ | 109,639 | $ | 107,126 |
Exhibit No. | Description | |||||||
10.1 | Amended and Restated Credit Agreement, dated as of December 12, 2022, by and among Premier Healthcare Alliance, L.P., Premier Supply Chain Improvement, Inc. and Premier Healthcare Solutions, Inc., as Co-Borrowers, certain domestic subsidiaries of Premier Services, LLC, as Guarantors, Wells Fargo Bank, National Association, as Administrative Agent, Swing Line Lender and an L/C Issuer, other lenders from time to time party thereto, and Wells Fargo Securities, LLC BofA Securities, Inc., JPMorgan Chase Bank, N.A., PNC Capital Markets LLC, and Truist Securities, Inc. as Joint Lead Arrangers and Joint Book Managers. (Incorporated by reference to Exhibit 10.1 to our Current Report on Form 8-K filed on December 16, 2022). | |||||||
31.1 | ||||||||
31.2 | ||||||||
32.1 | ||||||||
32.2 | ||||||||
101 | Sections of the Premier, Inc. Quarterly Report on Form 10-Q for the quarter ended December 31, 2022, formatted in iXBRL (Inline eXtensible Business Reporting Language), submitted in the following files: | |||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document.* | |||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document.* | |||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document.* | |||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document.* | |||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document.* | |||||||
104 | The cover page from the Premier, Inc. Quarterly Report on Form 10-Q for the quarter ended December 31, 2022, formatted in Inline XBRL (included in Exhibit 101).* |
PREMIER, INC. | |||||||||||||||||
Date: | February 7, 2023 | By: | /s/ Craig S. McKasson | ||||||||||||||
Name: | Craig S. McKasson | ||||||||||||||||
Title: | Chief Administrative and Financial Officer and Senior Vice President | ||||||||||||||||
On behalf of the registrant and as principal financial and accounting officer | |||||||||||||||||
/s/ Michael J. Alkire | ||||||||
Michael J. Alkire | ||||||||
President and Chief Executive Officer |
/s/ Craig S. McKasson | ||||||||
Craig S. McKasson | ||||||||
Chief Administrative and Financial Officer and Senior Vice President |
/s/ Michael J. Alkire | ||||||||
Michael J. Alkire | ||||||||
President and Chief Executive Officer | ||||||||
February 7, 2023 |
/s/ Craig S. McKasson | ||||||||
Craig S. McKasson | ||||||||
Chief Administrative and Financial Officer and Senior Vice President | ||||||||
February 7, 2023 |
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Dec. 31, 2022 |
Jun. 30, 2022 |
---|---|---|
Allowance for doubtful accounts | $ 1,932 | $ 2,043 |
Allowance for credit losses | 918 | 755 |
Accumulated depreciation | 622,358 | 578,644 |
Accumulated amortization | $ 241,132 | $ 217,582 |
Treasury stock, shares (in shares) | 6,429,375 | 6,429,375 |
Class A Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 125,295,961 | 124,481,610 |
Common stock outstanding (in shares) | 118,866,586 | 118,052,235 |
Condensed Consolidated Statements of Income and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
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Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2022 |
Dec. 31, 2021 |
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Net revenue: | ||||
Net revenue | $ 359,626 | $ 379,215 | $ 673,499 | $ 744,362 |
Cost of revenue: | ||||
Cost of revenue | 116,885 | 142,715 | 228,773 | 295,886 |
Gross profit | 242,741 | 236,500 | 444,726 | 448,476 |
Operating expenses: | ||||
Selling, general and administrative | 140,528 | 146,840 | 272,578 | 274,654 |
Research and development | 1,000 | 846 | 1,975 | 1,840 |
Amortization of purchased intangible assets | 13,047 | 10,850 | 23,499 | 21,739 |
Operating expenses | 154,575 | 158,536 | 298,052 | 298,233 |
Operating income | 88,166 | 77,964 | 146,674 | 150,243 |
Equity in net income of unconsolidated affiliates | 1,674 | 6,116 | 9,917 | 13,174 |
Interest expense, net | (4,631) | (2,873) | (7,490) | (5,661) |
Gain on FFF Put and Call Rights | 0 | 0 | 0 | 64,110 |
Other income, net | 2,930 | 2,392 | 766 | 2,072 |
Other (expense) income, net | (27) | 5,635 | 3,193 | 73,695 |
Income before income taxes | 88,139 | 83,599 | 149,867 | 223,938 |
Income tax expense | 23,765 | 6,367 | 42,534 | 25,400 |
Net income | 64,374 | 77,232 | 107,333 | 198,538 |
Net income attributable to non-controlling interest | (328) | (1,687) | (571) | (989) |
Net income attributable to stockholders | 64,046 | 75,545 | 106,762 | 197,549 |
Comprehensive income: | ||||
Net income | 64,374 | 77,232 | 107,333 | 198,538 |
Comprehensive income attributable to non-controlling interest | (328) | (1,687) | (571) | (989) |
Foreign currency translation gain (loss) | 1 | (1) | (9) | (1) |
Comprehensive income attributable to stockholders | $ 64,047 | $ 75,544 | $ 106,753 | $ 197,548 |
Weighted average shares outstanding: | ||||
Basic (in shares) | 118,787 | 121,181 | 118,569 | 122,063 |
Diluted (in shares) | 119,652 | 122,473 | 119,842 | 123,523 |
Earnings per share attributable to stockholders: | ||||
Basic (in dollars per share) | $ 0.54 | $ 0.62 | $ 0.90 | $ 1.62 |
Diluted (in dollars per share) | $ 0.54 | $ 0.62 | $ 0.89 | $ 1.61 |
Services and software licenses | ||||
Net revenue: | ||||
Net revenue | $ 292,633 | $ 267,449 | $ 547,645 | $ 514,166 |
Cost of revenue: | ||||
Cost of revenue | 55,265 | 45,782 | 109,279 | 89,591 |
Net administrative fees | ||||
Net revenue: | ||||
Net revenue | 154,423 | 150,403 | 304,429 | 299,865 |
Software licenses, other services and support | ||||
Net revenue: | ||||
Net revenue | 138,210 | 117,046 | 243,216 | 214,301 |
Products | ||||
Net revenue: | ||||
Net revenue | 66,993 | 111,766 | 125,854 | 230,196 |
Cost of revenue: | ||||
Cost of revenue | $ 61,620 | $ 96,933 | $ 119,494 | $ 206,295 |
ORGANIZATION |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ORGANIZATION | (1) ORGANIZATION Organization Premier, Inc. (“Premier” or the “Company”) is a publicly held, for-profit Delaware corporation located in the United States. The Company is a holding company with no material business operations of its own. The Company’s primary asset is its equity interest in its wholly owned subsidiary Premier Healthcare Solutions, Inc., a Delaware corporation (“PHSI”). The Company conducts substantially all of its business operations through PHSI and its other consolidated subsidiaries. The Company, together with its subsidiaries and affiliates, is a leading healthcare performance improvement company that unites hospitals, health systems, physicians, employers, product suppliers, service providers, and other healthcare providers and organizations to improve and innovate in the clinical, financial and operational areas of their businesses to meet the demands of a rapidly evolving healthcare industry and continues to expand its capabilities to more fully address and coordinate care improvement and standardization in the employer, payor and life sciences markets. The Company also provides services to other businesses, including food service, schools and universities. The Company’s business model and solutions are designed to provide its members and other customers access to scale efficiencies, spread the cost of their development, provide actionable intelligence derived from anonymized data in the Company’s enterprise data warehouse, mitigate the risk of innovation and disseminate best practices to help the Company’s members and other customers succeed in their transformation to higher quality and more cost-effective healthcare. The Company, together with its subsidiaries and affiliates, delivers its integrated platform of solutions through two business segments: Supply Chain Services and Performance Services. See Note 14 - Segments for further information related to the Company’s reportable business segments. The Supply Chain Services segment includes one of the largest healthcare group purchasing organization (“GPO”) programs in the United States, supply chain co-management, purchased services and direct sourcing activities. The Performance Services segment consists of three sub-brands: PINC AITM, the Company’s technology and services platform with offerings that help optimize performance in three main areas – clinical intelligence, margin improvement and value-based care – using advanced analytics to identify improvement opportunities, consulting and managed services for clinical and operational design, and workflow solutions to hardwire sustainable change in the provider, life sciences and payer markets; Contigo Health®, the Company’s direct-to-employer business which provides third-party administrator services and management of health-benefit programs that allow employers to contract directly with healthcare providers as well as partner with healthcare providers to provide employers access to a specialized care network through Contigo Health’s centers of excellence program and cost containment and wrap network; and RemitraTM, the Company’s digital invoicing and payables business which provides financial support services to healthcare providers and suppliers. Principles of Consolidation The accompanying condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the SEC and in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and include the assets, liabilities, revenues and expenses of all majority-owned subsidiaries over which the Company exercised control and when applicable, entities for which the Company had a controlling financial interest or was the primary beneficiary. All intercompany transactions have been eliminated upon consolidation. Accordingly, certain information and disclosures normally included in annual financial statements have been condensed or omitted. The accompanying condensed consolidated financial statements reflect all adjustments that, in the opinion of management, are necessary for a fair presentation of results of operations and financial condition for the interim periods shown, consisting of normal recurring adjustments, unless otherwise disclosed. The Company believes that the disclosures are adequate to make the information presented not misleading and should be read in conjunction with the audited consolidated financial statements and related footnotes contained in the 2022 Annual Report. Supplementary Cash Flows Information The following table presents supplementary cash flows information for the six months ended December 31, 2022 and 2021 (in thousands):
Use of Estimates in the Preparation of Financial Statements The preparation of the Company’s condensed consolidated financial statements in accordance with GAAP requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses and related disclosure of contingent assets and liabilities. Significant estimates are evaluated on an ongoing basis, including, but not limited to, estimates for net administrative fees revenue, software licenses, other services and support revenue, contract assets, deferred revenue, contract costs, allowances for credit losses, reserves for net realizable value of inventory, obsolete inventory, useful lives of property and equipment, stock-based compensation, deferred tax balances including valuation allowances on deferred tax assets, uncertain tax positions, values of investments not publicly traded, projected future cash flows used in the evaluation of asset impairments, values of call rights, values of earn-out liabilities and the allocation of purchase prices. These estimates are based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.
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SIGNIFICANT ACCOUNTING POLICIES |
6 Months Ended |
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Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | (2) SIGNIFICANT ACCOUNTING POLICIES There have been no material changes to the Company’s significant accounting policies as described in the 2022 Annual Report. Recently Adopted Accounting Standards In October 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2021-08 Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, (“ASU 2021-08”), which requires that an acquirer recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606, Revenue from Contracts with Customers. The Company adopted ASU 2021-08 during the second quarter of fiscal 2023. The standard did not have a material impact on the Company’s financial statements nor its related disclosures.
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BUSINESS ACQUISITIONS |
6 Months Ended |
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Dec. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
BUSINESS ACQUISITIONS | (3) BUSINESS ACQUISITIONS Acquisition of TRPN Direct Pay, Inc. and Devon Health, Inc. Assets On October 13, 2022, the Company, through its consolidated subsidiary Contigo Health, LLC (“Contigo Health”), acquired certain assets (the “TRPN Transferred Assets”) of TRPN Direct Pay, Inc. and Devon Health, Inc. (collectively, “TRPN”), including contracts with more than 900,000 providers (collectively, the “Assumed Contracts”), and agreed to assume certain liabilities and obligations of TRPN with regard to the Assumed Contracts (referred to as the “TRPN acquisition”). The TRPN Transferred Assets relate to businesses of TRPN focused on improving access to quality healthcare and reducing the cost of medical claims through pre-negotiated discounts with network providers, including acute-care hospitals, surgery centers, physicians, and other non-acute providers in the United States. Contigo Health also agreed to license proprietary cost containment technology of TRPN. The purchase price paid by the Company to complete the TRPN acquisition consisted of cash of $177.5 million, funded with borrowings under the Company’s Credit Facility (as defined in Note 8 - Debt and Notes Payable) and cash on hand, of which $17.8 million was placed in escrow to satisfy indemnification obligations of TRPN to Contigo Health and its affiliates and other parties related thereto under the purchase agreement governing the TRPN acquisition (“TRPN Purchase Agreement”). The Company has accounted for the TRPN acquisition as a business combination whereby the purchase price was allocated to tangible and intangible assets acquired and liabilities assumed based on their fair values. The total fair value assigned to intangible assets acquired was $116.6 million, consisting primarily of the provider network. The TRPN acquisition resulted in the recognition of $60.9 million of goodwill attributable to the anticipated profitability of TRPN, based on the purchase price paid in the acquisition compared to the fair value of the net assets acquired. The TRPN acquisition was considered an asset acquisition for income tax purposes. Accordingly, the Company expects tax goodwill to be deductible for tax purposes. The initial purchase price allocation for the TRPN acquisition is preliminary and subject to changes in the valuation of the assets acquired and liabilities assumed. TRPN is being integrated within Premier under Contigo Health and is reported as part of the Performance Services Segment. Pro forma results of operations for the acquisition have not been presented because the effects on revenue and net income were not material to the Company’s historical consolidated financial statements.
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INVESTMENTS |
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Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVESTMENTS | (4) INVESTMENTS Investments in Unconsolidated Affiliates The Company’s investments in unconsolidated affiliates consisted of the following (in thousands):
The Company, through its indirect, wholly owned subsidiary Premier Supply Chain Improvement, Inc. (“PSCI”), held a 49% interest in FFF Enterprises, Inc. (“FFF”) through its ownership of stock of FFF at December 31, 2022 and June 30, 2022. The Company, through its consolidated subsidiary, ExPre Holdings, LLC (“ExPre”), held an approximate 6% interest in Exela Holdings, Inc. (“Exela”) through its ownership of Exela Class A common stock at December 31, 2022. At December 31, 2022, the Company owned approximately 15% of the membership interest of ExPre, with the remainder of the membership interests held by 11 member health systems or their affiliates. The Company, through its consolidated subsidiary, PRAM Holdings, LLC (“PRAM”), held an approximate 20% interest in Prestige Ameritech Ltd. (“Prestige”) through its ownership of Prestige limited partnership units at December 31, 2022. At December 31, 2022, the Company owned approximately 26% of the membership interest of PRAM, with the remainder of the membership interests held by 16 member health systems or their affiliates. The Company accounts for its investments in FFF, Exela and Prestige using the equity method of accounting and includes each investment as part of the Supply Chain Services segment. The Company, through PHSI, purchased an approximate 7% interest in Qventus, Inc. (“Qventus”) through its ownership of Qventus Series C preferred stock. The Company accounts for its investment in Qventus at initial cost less impairments, if any, plus or minus any observable changes in fair value. The Company includes Qventus as part of the Performance Services segment.
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FAIR VALUE MEASUREMENTS |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS | (5) FAIR VALUE MEASUREMENTS Recurring Fair Value Measurements The following table represents the Company’s financial assets and liabilities, which are measured at fair value on a recurring basis (in thousands):
Deferred compensation plan assets consisted of highly liquid mutual fund investments, which were classified as Level 1. The current portion of deferred compensation plan assets ($4.9 million and $5.3 million at December 31, 2022 and June 30, 2022, respectively) was included in prepaid expenses and other current assets in the accompanying Condensed Consolidated Balance Sheets. Financial Instruments Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) FFF Put and Call Rights On July 29, 2021, the FFF shareholders’ agreement was amended resulting in the termination of the FFF Put Right and the derecognition of the FFF Put Right liability. In the event of a Key Man Event (generally defined in the FFF shareholders’ agreement as the resignation, termination for cause, death or disability of the majority shareholder), the Company has a call right that requires the majority shareholder to sell its remaining interest in FFF to the Company, and is exercisable at any time within 180 calendar days after the date of a Key Man Event (the “Call Right”, together with the FFF Put Right, the “Put and Call Rights”). As of December 31, 2022 and June 30, 2022, the Call Right had zero value. In the event that the Call Right is exercised, the purchase price for the additional interest in FFF will be at a per share price equal to FFF’s earnings before interest, taxes, depreciation and amortization (“FFF EBITDA”) over the twelve calendar months prior to the purchase date multiplied by a market adjusted multiple, adjusted for any outstanding debt and cash and cash equivalents, divided by the number of shares of FFF common stock then outstanding (“Equity Value per Share”). Earn-out liabilities An earn-out liability was established in connection with the acquisition of substantially all of the assets and certain liabilities of Acurity, Inc. and Nexera, Inc. (the “Acurity and Nexera asset acquisition”) in February 2020 based upon the Company’s achievement of a range of member renewals on terms to be agreed to by the Company and Greater New York Hospital Association based on prevailing market conditions in December 2023. The earn-out liability is classified as Level 3 of the fair value hierarchy. The earn-out liability arising from expected earn-out payments related to the Acurity and Nexera asset acquisition was measured on the acquisition date using a probability-weighted expected payment model and is remeasured periodically due to changes in management’s estimates of the number of transferred member renewals and market conditions. In determining the fair value of the contingent liabilities, management reviews the current results of the acquired business, along with projected results for the remaining earn-out period, to calculate the expected earn-out payment to be made based on the contractual terms set out in the acquisition agreement. The Acurity and Nexera earn-out liability utilized a credit spread of 1.4% at December 31, 2022 and 1.6% at June 30, 2022. As of December 31, 2022 and June 30, 2022, the undiscounted range of outcomes is between $0 and $30.0 million. A significant decrease in the probability could result in a significant decrease in the value of the earn-out liability. The fair value of the Acurity and Nexera earn-out liability at December 31, 2022 and June 30, 2022 was $22.6 million and $22.8 million, respectively. Acurity and Nexera Earn-out (a)
_________________________________ (a)The Acurity and Nexera earn-out liability was initially valued as of February 28, 2020. A reconciliation of the Company’s Put Right and earn-out liabilities is as follows (in thousands):
_________________________________ (a)Purchases for the three and six months ended December 31, 2022 includes an earn-out which has not been earned or paid as of December 31, 2022. Settlements for the six months ended December 31, 2021 includes non-cash gain recognized as a result the termination of the FFF Put Right and the derecognition of the FFF Put Right liability. (b)A gain on level 3 liability balances will decrease the liability ending balance whereas a loss on level 3 liability balance will increase the liability ending balance. Non-Recurring Fair Value Measurements As a result of the August 2020 Restructuring, the Company recorded non-interest bearing notes payable to former limited partners during the three months ended September 30, 2020. Although these notes are non-interest bearing, they include a Level 2 input associated with an implied fixed annual interest rate of 1.8% (see Note 8 - Debt and Notes Payable). As of December 31, 2022 and June 30, 2022, the notes payable to former limited partners were recorded net of discounts of $6.4 million and $9.1 million, respectively. During the six months ended December 31, 2022, no non-recurring fair value measurements were required relating to the measurement of goodwill and intangible assets for impairment. However, purchase price allocations required significant non- recurring Level 3 inputs. The preliminary fair values of the acquired intangible assets resulting from the TRPN acquisition were determined using the income approach (see Note 3 - Business Acquisitions). Financial Instruments For Which Fair Value Only is Disclosed The fair values of non-interest bearing notes payable, classified as Level 2, were equal to the carrying value at December 31, 2022 and $0.1 million less than the carrying value at June 30, 2022 based on an assumed market interest rate of 1.6%. Other Financial Instruments The fair values of cash, accounts receivable, accounts payable, accrued liabilities, and the Credit Facility (as defined in Note 8 - Debt and Notes Payable) approximated carrying value due to the short-term nature of these financial instruments.
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CONTRACT BALANCES |
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Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
CONTRACT BALANCES | (6) CONTRACT BALANCES Deferred Revenue Revenue recognized during the six months ended December 31, 2022 that was included in the opening balance of deferred revenue at June 30, 2022 was $23.3 million, which is a result of satisfying certain performance obligations. Performance Obligations A performance obligation is a contractual obligation to transfer a distinct good or service to a customer. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. Contracts may have a single performance obligation as the agreement to transfer individual goods or services is not separately identifiable from other contractual obligations and, therefore, not distinct, while other contracts may have multiple performance obligations, most commonly due to the contract covering multiple phases or deliverable arrangements (licensing fees, SaaS subscription fees, maintenance and support fees, and professional fees for consulting services). Refer to the Company’s significant accounting policies in the 2022 Annual Report for discussion of revenue recognition on contracts with customers. The reduction to net revenue recognized during the three months ended December 31, 2022 from performance obligations that were satisfied or partially satisfied in prior periods was $0.4 million. The reduction was driven by a $0.8 million decrease associated with revised forecasts from underlying contracts that include variable consideration components as well as additional fluctuations due to input method contracts which occur in the normal course of business. This decrease was partially offset by an increase of $0.4 million in net administrative fees revenue related to under-forecasted cash receipts received in the current period. Net revenue of $2.5 million was recognized during the six months ended December 31, 2022 from performance obligations that were satisfied or partially satisfied in prior periods. The net revenue recognized was driven by an increase of $4.6 million in net administrative fees revenue related to under-forecasted cash receipts received in the current period partially offset by a reduction of $2.1 million associated with revised forecasts from underlying contracts that include variable consideration components as well as additional fluctuations due to input method contracts which occur in the normal course of business. Net revenue of $8.1 million and $3.7 million was recognized during the three and six months ended December 31, 2021, respectively, from certain performance obligations that were satisfied or partially satisfied in prior periods. The net revenue recognized was driven by an increase of $7.3 million and $3.1 million, respectively, in net administrative fees revenue related to under-forecasted cash receipts received in the current period. There was also an increase of $0.8 million and $0.6 million, respectively, associated with revised forecasts from underlying contracts that include variable consideration components as well as additional fluctuations due to input method contracts which occur in the normal course of business. Remaining performance obligations represent the portion of the transaction price that has not yet been satisfied or achieved. As of December 31, 2022, the aggregate amount of the transaction price allocated to remaining performance obligations was $700.6 million. The Company expects to recognize approximately 42% of the remaining performance obligations over the next 12 months and an additional 23% over the following 12 months, with the remainder recognized thereafter.
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GOODWILL AND INTANGIBLE ASSETS |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GOODWILL AND INTANGIBLE ASSETS | (7) GOODWILL AND INTANGIBLE ASSETS Goodwill Goodwill consisted of the following (in thousands):
Goodwill increased primarily due to the TRPN acquisition (see Note 3 - Business Acquisitions). The initial purchase price allocation for the TRPN acquisition is preliminary and subject to change in the valuation of the assets acquired and the liabilities assumed. Intangible Assets, Net Intangible assets, net consisted of the following (in thousands):
_________________________________ (a)Includes a $1.0 million indefinite-lived asset. The net carrying value of intangible assets by segment was as follows (in thousands):
_________________________________ (a)Includes a $1.0 million indefinite-lived asset. Total intangible assets increased primarily due to the TRPN acquisition (see Note 3 - Business Acquisitions). As part of the TRPN acquisition, the total fair value assigned to intangible assets acquired was $116.6 million, consisting primarily of the provider network of $106.5 million. The weighted average useful life of the acquired intangible assets is 14.1 years, with the provider network having a useful life of 15.0 years. Intangible asset amortization was $13.0 million and $10.9 million for the three months ended December 31, 2022 and 2021, respectively, and $23.5 million and $21.7 million for the six months ended December 31, 2022 and 2021, respectively. The estimated amortization expense for each of the next five fiscal years and thereafter is as follows (in thousands):
(a)As of December 31, 2022, estimated amortization expense is for the period from January 1, 2023 to June 30, 2023.
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DEBT AND NOTES PAYABLE |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DEBT AND NOTES PAYABLE | (8) DEBT AND NOTES PAYABLE Long-term debt and notes payable consisted of the following (in thousands):
Credit Facility PHSI, along with its consolidated subsidiaries, Premier LP and PSCI, as Co-Borrowers, and certain domestic subsidiaries of the Co-Borrowers, as guarantors, entered into an unsecured Credit Facility, dated as of December 12, 2022 (the “Credit Facility”). The Credit Facility has a maturity date of December 12, 2027, subject to up to two one-year extensions at the request of the Co-Borrowers and approval of a majority of the lenders under the Credit Facility. The Credit Facility provides for borrowings of up to $1.0 billion with (i) a $50.0 million sub-facility for standby letters of credit and (ii) a $100.0 million sub-facility for swingline loans. The Credit Facility also provides that Co-Borrowers may from time to time (i) incur incremental term loans and (ii) request an increase in the revolving commitments under the Credit Facility, together up to an aggregate of $350.0 million, subject to the approval of the lenders providing such term loans or revolving commitment increase. The Credit Facility contains an unconditional and irrevocable guaranty of all obligations of Co-Borrowers under the Credit Facility by the current and future Guarantors. Premier is not a guarantor under the Credit Facility. The Credit Facility refinanced the Credit Facility dated November 9, 2018, as amended (the “Prior Loan Agreement”), and the Prior Loan Agreement, which was scheduled to mature on November 9, 2023, was terminated on December 12, 2022. The Prior Loan Agreement included a $1.0 billion unsecured revolving credit facility. At the time of its termination, outstanding borrowings, accrued interest and fees and expenses under the Prior Loan Agreement totaled $331.3 million, which was repaid with cash on hand and borrowings under the new Credit Facility. At the Company’s option, committed loans under the Credit Facility may be in the form of secured overnight financing rate loans (“SOFR Loans”) or base rate loans. SOFR Loans bear interest at SOFR plus an adjustment of 0.100% (“Adjusted Term SOFR”) plus the Applicable Rate (defined as a margin based on the Consolidated Total Net Leverage Ratio (as defined in the Credit Facility)). Base rate loans bear interest at the Base Rate (defined as the highest of the prime rate announced by the administrative agent, the federal funds effective rate plus 0.500%, the one-month Adjusted Term SOFR plus 1.000%, and 0.000%), plus the Applicable Rate. The Applicable Rate ranges from 1.250% to 1.750% for SOFR Loans and 0.250% to 0.750% for base rate loans. At December 31, 2022 , the interest rate for SOFR Loans was 5.708% and the interest rate for base rate loans was 7.750%. Co-Borrowers are required to pay a commitment fee ranging from 0.125% to 0.225% per annum on the actual daily unused amount of commitments under the Credit Facility. At December 31, 2022, the weighted average interest rate on outstanding borrowings under the Credit Facility was 5.633% and the annual commitment fee, based on the actual daily unused amount of commitments under the Credit Facility, was 0.125%. The Credit Facility contains customary representations and warranties as well as customary affirmative and negative covenants, including, among others, limitations on liens, indebtedness, fundamental changes, dispositions, restricted payments and investments. The Company was in compliance with all such covenants at December 31, 2022. The Credit Facility also contains customary events of default, including a cross-default of any indebtedness or guarantees in excess of $75.0 million. If any event of default occurs and is continuing, the administrative agent under the Credit Facility may, with the consent, or shall, at the request of a majority of the lenders under the Credit Facility, terminate the commitments and declare all of the amounts owed under the Credit Facility to be immediately due and payable. The Company had $300.0 million in outstanding borrowings under the Credit Facility at December 31, 2022 with $699.9 million of available borrowing capacity after reductions for outstanding borrowings and outstanding letters of credit. For the six months ended December 31, 2022, the Company borrowed $285.0 million and repaid $135.0 million of outstanding borrowings under the Prior Loan Agreement. For the six months ended December 31, 2022, there were no borrowings or repayments under the Credit Facility. In January 2023, the Company repaid $30.0 million of outstanding borrowings under the Credit Facility. Notes Payable Notes Payable to Former Limited Partners At December 31, 2022, the Company had $250.3 million of notes payable to former LPs, net of discounts on notes payable of $6.4 million, of which $98.7 million was recorded to current portion of notes payable to former limited partners in the accompanying Condensed Consolidated Balance Sheets. At June 30, 2022, the Company had $299.0 million of notes payable to former LPs, net of discounts on notes payable of $9.1 million, of which $97.8 million was recorded to current portion of notes payable to former limited partners in the accompanying Condensed Consolidated Balance Sheets. The notes payable to former LPs were issued in connection with the early termination of the TRA as part of the August 2020 Restructuring. Although the notes payable to former LPs are non-interest bearing, pursuant to GAAP requirements, they were recorded net of imputed interest at a fixed annual rate of 1.8%. Other At December 31, 2022 and June 30, 2022, the Company had $3.0 million and $5.3 million in other notes payable, respectively, of which $1.9 million and $3.1 million, respectively, were included in current portion of long-term debt in the accompanying Condensed Consolidated Balance Sheets. Other notes payable do not bear interest and generally have stated maturities of to five years from their date of issuance.
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STOCKHOLDERS' EQUITY |
6 Months Ended |
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Dec. 31, 2022 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | (9) STOCKHOLDERS' EQUITY As of December 31, 2022, there were 118,866,586 shares of the Company’s Class A common stock, par value $0.01 per share, outstanding. During the six months ended December 31, 2022, the Company paid cash dividends of $0.21 per share on outstanding shares of Class A common stock to stockholders on each of September 15, 2022 and December 15, 2022. On January 26, 2023, the Board of Directors declared a quarterly cash dividend of $0.21 per share, payable on March 15, 2023 to stockholders of record on March 1, 2023.
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EARNINGS PER SHARE |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS PER SHARE | (10) EARNINGS PER SHARE Basic earnings per share is computed by dividing net income attributable to stockholders by the weighted average number of shares of common stock outstanding for the period. Except when the effect would be anti-dilutive, the diluted earnings per share calculation, which is calculated using the treasury stock method, includes the impact of all potentially issuable dilutive shares of Class A common stock. The following table provides a reconciliation of the numerator and denominator used for basic and diluted earnings per share (in thousands, except per share amounts):
_________________________________ (a)Net income attributable to stockholders was calculated as follows (in thousands):
(b)Weighted average number of common shares used for basic earnings per share excludes the impact of all potentially issuable dilutive shares of Class A common stock for the three and six months ended December 31, 2022 and 2021. (c)For the three and six months ended December 31, 2022, the effect of 0.5 million and 0.7 million stock options and restricted stock units, respectively, was excluded from diluted weighted average shares outstanding as it had an anti-dilutive effect. Additionally, for the three and six months ended December 31, 2022, the effect of 0.2 million and 0.3 million performance share awards, respectively, was excluded from diluted weighted average shares outstanding as the awards had not satisfied the applicable performance criteria at the end of the period. For the six months ended December 31, 2021, the effect of 0.3 million stock options and restricted stock units was excluded from diluted weighted average shares outstanding as it had an anti-dilutive effect. Additionally, for the three and six months ended December 31, 2021 the effect of 0.2 million and 0.4 million performance share awards, respectively, was excluded from diluted weighted average shares outstanding as the awards had not satisfied the applicable performance criteria at the end of the period.
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STOCK-BASED COMPENSATION |
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Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
STOCK-BASED COMPENSATION | (11) STOCK-BASED COMPENSATION Stock-based compensation expense is recognized over the requisite service period, which generally equals the stated vesting period. The associated deferred tax benefit was calculated at a tax rate of 26% for the six months ended December 31, 2022 and 2021, which represents the expected effective income tax rate at the time of the compensation expense deduction and differs from the Company’s current effective income tax rate. See Note 12 - Income Taxes for further information. Stock-based compensation expense and the resulting deferred tax benefits were as follows (in thousands):
_________________________________ (a)For the three and six months ended December 31, 2022, the deferred tax benefit was increased by $0.4 million and reduced by $0.5 million, respectively, attributable to stock-based compensation expense that is nondeductible for tax purposes pursuant to Section 162(m) as amended by the Tax Cuts and Jobs Act of 2017. Premier 2013 Equity Incentive Plan The Premier 2013 Equity Incentive Plan, as amended and restated (and including any further amendments thereto, the “2013 Equity Incentive Plan”) provides for grants of up to 14.8 million shares of Class A common stock, all of which are eligible to be issued as non-qualified stock options, incentive stock options, stock appreciation rights, restricted stock, restricted stock units or performance share awards. As of December 31, 2022, there were 3.9 million shares available for grant under the 2013 Equity Incentive Plan. The following table includes information related to restricted stock, performance share awards and stock options for the six months ended December 31, 2022:
Restricted stock units and restricted stock awards issued and outstanding generally vest over a three-year period for employees and a one-year period for directors. Performance share awards issued and outstanding generally vest over a three-year period if performance targets are met. Stock options generally vest in equal annual installments over three years. Stock options have a term of ten years from the date of grant. Vested stock options will generally expire either twelve months after an employee’s termination with the Company or 90 days after an employee’s termination with the Company, depending on the termination circumstances. Unrecognized stock-based compensation expense at December 31, 2022 was as follows (in thousands). At December 31, 2022, there was no unrecognized stock-based compensation expense for outstanding stock options.
The aggregate intrinsic value of stock options at December 31, 2022 was as follows (in thousands):
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INCOME TAXES |
6 Months Ended |
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Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | (12) INCOME TAXES Income tax expense for the three months ended December 31, 2022 and 2021 was $23.8 million and $6.4 million, respectively, which reflects effective tax rates of 27% and 8%, respectively. The change in the effective tax rate for the three months ended December 31, 2022 is primarily driven by the prior year valuation allowance release resulting from the Subsidiary Reorganization. Excluding the valuation allowance release, the effective tax rate would have been 19% for the three months ended December 31, 2021 with the remaining difference primarily related to repricing due to the Subsidiary Reorganization and state legislative changes. Income tax expense for the six months ended December 31, 2022 and 2021 was $42.5 million and $25.4 million, respectively, which reflects effective tax rates of 28% and 11%, respectively. The change in the effective tax rate for the six months ended December 31, 2022, is primarily driven by the prior year valuation allowance release resulting from the Subsidiary Reorganization. Excluding the valuation allowance release, the effective tax rate would have been 24% for the six months ended December 31, 2021 with the remaining difference primarily related to repricing due to the Subsidiary Reorganization and state legislative changes.
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COMMITMENTS AND CONTINGENCIES |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
COMMITMENTS AND CONTINGENCIES | (13) COMMITMENTS AND CONTINGENCIES Operating Leases Operating lease expense for both the three months ended December 31, 2022 and 2021 was $2.5 million. Operating lease expense for the six months ended December 31, 2022 and 2021 was $5.0 million and $5.1 million, respectively. As of December 31, 2022, the weighted average remaining lease term was 3.3 years and the weighted average discount rate was 4%. Future minimum lease payments under noncancellable operating leases with initial lease terms in excess of one year were as follows (in thousands):
_________________________________ (a)As of December 31, 2022, future minimum lease payments are for the period from January 1, 2023 to June 30, 2023. (b)As of December 31, 2022, total operating lease liabilities included $10.9 million within other current liabilities in the Condensed Consolidated Balance Sheets. Other Matters The Company is not currently involved in any litigation it believes to be material. The Company is periodically involved in litigation, arising in the ordinary course of business or otherwise, which from time to time may include stockholder derivative or other similar litigation, claims relating to commercial, product liability, tort and personal injury, employment, antitrust, intellectual property, or other regulatory matters. If current or future government regulations, including but not limited to those with respect to antitrust or healthcare laws, are interpreted or enforced in a manner adverse to the Company or its business, the Company may be subject to regulatory inquiries or investigations, enforcement actions, penalties and other material limitations which could have a material adverse effect on the Company’s business, financial condition and results of operations.
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SEGMENTS |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SEGMENTS | (14) SEGMENTS The Company delivers its solutions and manages its business through two reportable business segments, the Supply Chain Services segment and the Performance Services segment. The Supply Chain Services segment includes the Company’s GPO, supply chain co-management, purchased services and direct sourcing activities. The Performance Services segment consists of three sub-brands: PINC AI, the Company’s technology and services platform; Contigo Health, the Company’s direct-to-employer business; and Remitra, the Company’s digital invoicing and payables business. The following table presents disaggregated revenue by business segment and underlying source (in thousands):
_________________________________ (a)Includes intersegment revenue that is eliminated in consolidation. Intersegment revenue is not separately identified in Segments as the amounts are not material. (b)Includes revenue from Contigo Health, Remitra and other PINC AI revenue. Additional segment information related to depreciation and amortization expense, capital expenditures and total assets was as follows (in thousands):
_________________________________ (a)Includes amortization of purchased intangible assets. (b)Includes eliminations of intersegment transactions which occur during the ordinary course of business. The Company uses Segment Adjusted EBITDA (a financial measure not determined in accordance with generally accepted accounting principles (“Non-GAAP”)) as its primary measure of profit or loss to assess segment performance and to determine the allocation of resources. The Company also uses Segment Adjusted EBITDA to facilitate the comparison of the segment operating performance on a consistent basis from period to period. The Company defines Segment Adjusted EBITDA as the segment’s net revenue less cost of revenue and operating expenses directly attributable to the segment excluding depreciation and amortization, amortization of purchased intangible assets, merger and acquisition-related expenses, and non-recurring or non-cash items, and including equity in net income of unconsolidated affiliates. Operating expenses directly attributable to the segment include expenses associated with sales and marketing, general and administrative, and product development activities specific to the operation of each segment. General and administrative corporate expenses that are not specific to a particular segment are not included in the calculation of Segment Adjusted EBITDA. Segment Adjusted EBITDA also excludes any income and expense that has been classified as discontinued operations. For more information on Segment Adjusted EBITDA and the use of Non-GAAP financial measures, see “Our Use of Non-GAAP Financial Measures” within Item 2 - Management's Discussion and Analysis of Financial Condition and Results of Operations. A reconciliation of income before income taxes to unaudited Segment Adjusted EBITDA, a Non-GAAP financial measure, is as follows (in thousands):
_________________________________ (a)Refer to Note 4 - Investments for more information. (b)Refer to Note 5 - Fair Value Measurements for more information. (c)Includes non-cash employee stock-based compensation expense and stock purchase plan expense of $0.1 million for the three months ended December 31, 2022 and 2021 and $0.3 million for the six months ended December 31, 2022 and 2021. (d)Represents realized and unrealized gains and losses and dividend income on deferred compensation plan assets. (e)Includes intersegment revenue which is eliminated in consolidation.
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SIGNIFICANT ACCOUNTING POLICIES (Policies) |
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Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The accompanying condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the SEC and in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and include the assets, liabilities, revenues and expenses of all majority-owned subsidiaries over which the Company exercised control and when applicable, entities for which the Company had a controlling financial interest or was the primary beneficiary. All intercompany transactions have been eliminated upon consolidation. Accordingly, certain information and disclosures normally included in annual financial statements have been condensed or omitted. The accompanying condensed consolidated financial statements reflect all adjustments that, in the opinion of management, are necessary for a fair presentation of results of operations and financial condition for the interim periods shown, consisting of normal recurring adjustments, unless otherwise disclosed. The Company believes that the disclosures are adequate to make the information presented not misleading and should be read in conjunction with the audited consolidated financial statements and related footnotes contained in the 2022 Annual Report.
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Use of Estimates in the Preparation of Financial Statements | Use of Estimates in the Preparation of Financial StatementsThe preparation of the Company’s condensed consolidated financial statements in accordance with GAAP requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses and related disclosure of contingent assets and liabilities. Significant estimates are evaluated on an ongoing basis, including, but not limited to, estimates for net administrative fees revenue, software licenses, other services and support revenue, contract assets, deferred revenue, contract costs, allowances for credit losses, reserves for net realizable value of inventory, obsolete inventory, useful lives of property and equipment, stock-based compensation, deferred tax balances including valuation allowances on deferred tax assets, uncertain tax positions, values of investments not publicly traded, projected future cash flows used in the evaluation of asset impairments, values of call rights, values of earn-out liabilities and the allocation of purchase prices. These estimates are based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards In October 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2021-08 Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, (“ASU 2021-08”), which requires that an acquirer recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606, Revenue from Contracts with Customers. The Company adopted ASU 2021-08 during the second quarter of fiscal 2023. The standard did not have a material impact on the Company’s financial statements nor its related disclosures.
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ORGANIZATION (Tables) |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Supplemental Cash Flow Information | The following table presents supplementary cash flows information for the six months ended December 31, 2022 and 2021 (in thousands):
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INVESTMENTS (Tables) |
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Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Investments in Unconsolidated Affiliates | The Company’s investments in unconsolidated affiliates consisted of the following (in thousands):
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FAIR VALUE MEASUREMENTS (Tables) |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Financial Assets and Liabilities | The following table represents the Company’s financial assets and liabilities, which are measured at fair value on a recurring basis (in thousands):
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Schedule of Fair Value Measurement Inputs and Valuation Assumptions | Acurity and Nexera Earn-out (a)
_________________________________ (a)The Acurity and Nexera earn-out liability was initially valued as of February 28, 2020.
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Schedule of Reconciliation of Earn-out Liabilities and FFF Put Rights | A reconciliation of the Company’s Put Right and earn-out liabilities is as follows (in thousands):
_________________________________ (a)Purchases for the three and six months ended December 31, 2022 includes an earn-out which has not been earned or paid as of December 31, 2022. Settlements for the six months ended December 31, 2021 includes non-cash gain recognized as a result the termination of the FFF Put Right and the derecognition of the FFF Put Right liability. (b)A gain on level 3 liability balances will decrease the liability ending balance whereas a loss on level 3 liability balance will increase the liability ending balance.
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Schedule of Reconciliation of FFF Call Rights | A reconciliation of the Company’s Put Right and earn-out liabilities is as follows (in thousands):
_________________________________ (a)Purchases for the three and six months ended December 31, 2022 includes an earn-out which has not been earned or paid as of December 31, 2022. Settlements for the six months ended December 31, 2021 includes non-cash gain recognized as a result the termination of the FFF Put Right and the derecognition of the FFF Put Right liability. (b)A gain on level 3 liability balances will decrease the liability ending balance whereas a loss on level 3 liability balance will increase the liability ending balance.
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GOODWILL AND INTANGIBLE ASSETS (Tables) |
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Schedule of Goodwill | Goodwill consisted of the following (in thousands):
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Schedule of Finite-Lived Intangible Assets | Intangible assets, net consisted of the following (in thousands):
_________________________________ (a)Includes a $1.0 million indefinite-lived asset. The net carrying value of intangible assets by segment was as follows (in thousands):
_________________________________ (a)Includes a $1.0 million indefinite-lived asset.
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Schedule of Indefinite-Lived Intangible Assets | Intangible assets, net consisted of the following (in thousands):
_________________________________ (a)Includes a $1.0 million indefinite-lived asset. The net carrying value of intangible assets by segment was as follows (in thousands):
_________________________________ (a)Includes a $1.0 million indefinite-lived asset.
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Schedule of Estimated Aggregate Amortization Expense | The estimated amortization expense for each of the next five fiscal years and thereafter is as follows (in thousands):
(a)As of December 31, 2022, estimated amortization expense is for the period from January 1, 2023 to June 30, 2023.
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DEBT AND NOTES PAYABLE (Tables) |
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Schedule of Long-term Debt and Notes Payable | Long-term debt and notes payable consisted of the following (in thousands):
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EARNINGS PER SHARE (Tables) |
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Reconciliation of Common Shares Used for Earnings Per Share | The following table provides a reconciliation of the numerator and denominator used for basic and diluted earnings per share (in thousands, except per share amounts):
_________________________________ (a)Net income attributable to stockholders was calculated as follows (in thousands):
(b)Weighted average number of common shares used for basic earnings per share excludes the impact of all potentially issuable dilutive shares of Class A common stock for the three and six months ended December 31, 2022 and 2021. (c)For the three and six months ended December 31, 2022, the effect of 0.5 million and 0.7 million stock options and restricted stock units, respectively, was excluded from diluted weighted average shares outstanding as it had an anti-dilutive effect. Additionally, for the three and six months ended December 31, 2022, the effect of 0.2 million and 0.3 million performance share awards, respectively, was excluded from diluted weighted average shares outstanding as the awards had not satisfied the applicable performance criteria at the end of the period. For the six months ended December 31, 2021, the effect of 0.3 million stock options and restricted stock units was excluded from diluted weighted average shares outstanding as it had an anti-dilutive effect. Additionally, for the three and six months ended December 31, 2021 the effect of 0.2 million and 0.4 million performance share awards, respectively, was excluded from diluted weighted average shares outstanding as the awards had not satisfied the applicable performance criteria at the end of the period.
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STOCK-BASED COMPENSATION (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Stock-based Compensation Expense and Resulting Tax Benefits | Stock-based compensation expense and the resulting deferred tax benefits were as follows (in thousands):
_________________________________ (a)For the three and six months ended December 31, 2022, the deferred tax benefit was increased by $0.4 million and reduced by $0.5 million, respectively, attributable to stock-based compensation expense that is nondeductible for tax purposes pursuant to Section 162(m) as amended by the Tax Cuts and Jobs Act of 2017.
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Schedule of Information Related to Restricted Stock | The following table includes information related to restricted stock, performance share awards and stock options for the six months ended December 31, 2022:
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Schedule of Information Related to Performance Share Awards | The following table includes information related to restricted stock, performance share awards and stock options for the six months ended December 31, 2022:
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Schedule of Information Related to Stock Options | The following table includes information related to restricted stock, performance share awards and stock options for the six months ended December 31, 2022:
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Schedule of Unrecognized Stock-based Compensation Expense | Unrecognized stock-based compensation expense at December 31, 2022 was as follows (in thousands). At December 31, 2022, there was no unrecognized stock-based compensation expense for outstanding stock options.
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Schedule of Aggregate Intrinsic Value of Stock Options | The aggregate intrinsic value of stock options at December 31, 2022 was as follows (in thousands):
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COMMITMENTS AND CONTINGENCIES (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Future Minimum Rental Payments for Operating Leases | Future minimum lease payments under noncancellable operating leases with initial lease terms in excess of one year were as follows (in thousands):
_________________________________ (a)As of December 31, 2022, future minimum lease payments are for the period from January 1, 2023 to June 30, 2023. (b)As of December 31, 2022, total operating lease liabilities included $10.9 million within other current liabilities in the Condensed Consolidated Balance Sheets.
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SEGMENTS (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Information | The following table presents disaggregated revenue by business segment and underlying source (in thousands):
_________________________________ (a)Includes intersegment revenue that is eliminated in consolidation. Intersegment revenue is not separately identified in Segments as the amounts are not material. (b)Includes revenue from Contigo Health, Remitra and other PINC AI revenue. Additional segment information related to depreciation and amortization expense, capital expenditures and total assets was as follows (in thousands):
_________________________________ (a)Includes amortization of purchased intangible assets. (b)Includes eliminations of intersegment transactions which occur during the ordinary course of business.
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Schedule of Reconciliation of Income Before Income Taxes to Segment Adjusted EBITDA | A reconciliation of income before income taxes to unaudited Segment Adjusted EBITDA, a Non-GAAP financial measure, is as follows (in thousands):
_________________________________ (a)Refer to Note 4 - Investments for more information. (b)Refer to Note 5 - Fair Value Measurements for more information. (c)Includes non-cash employee stock-based compensation expense and stock purchase plan expense of $0.1 million for the three months ended December 31, 2022 and 2021 and $0.3 million for the six months ended December 31, 2022 and 2021. (d)Represents realized and unrealized gains and losses and dividend income on deferred compensation plan assets. (e)Includes intersegment revenue which is eliminated in consolidation.
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ORGANIZATION - Narrative (Details) |
6 Months Ended |
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Dec. 31, 2022
brand
segment
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Segment Reporting Information [Line Items] | |
Number of business segments | segment | 2 |
Performance Services | |
Segment Reporting Information [Line Items] | |
Number of sub-brands | brand | 3 |
ORGANIZATION - Supplementary Cash Flow Information (Details) - USD ($) $ in Thousands |
6 Months Ended | |
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Dec. 31, 2022 |
Dec. 31, 2021 |
|
Supplemental schedule of non-cash investing and financing activities: | ||
Increase in treasury stock related to a payable as a result of applying trade date accounting when recording the repurchase of Class A common stock | $ 0 | $ 2,108 |
Non-cash additions to property and equipment | 84 | 8 |
Accrued dividend equivalents | $ 519 | $ 244 |
BUSINESS ACQUISITIONS (Details) $ in Thousands |
Oct. 13, 2022
USD ($)
provider
|
Dec. 31, 2022
USD ($)
|
Jun. 30, 2022
USD ($)
|
---|---|---|---|
Asset Acquisition, Contingent Consideration [Line Items] | |||
Goodwill | $ 1,069,300 | $ 999,913 | |
TRPN Transferred Assets | |||
Asset Acquisition, Contingent Consideration [Line Items] | |||
Number of TRPN contracts | provider | 900,000 | ||
Transferring cash | $ 177,500 | ||
Escrow account satisfy indemnification obligations | 17,800 | ||
Fair value of intangible assets acquired | 116,600 | ||
Goodwill | $ 60,900 |
CONTRACT BALANCES - Contract Assets, Deferred Revenue and Capitalized Contract Costs (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Revenue recognized | $ 8.1 | $ 23.3 | $ 3.7 | |
Revenue recognized from performance obligations satisfied in previous periods | $ (0.4) | 2.5 | ||
Revenue recognized associated with revised forecasts underlying contracts with variable consideration components | (0.8) | (2.1) | ||
Revenue recognized associated with a change in net administration fee revenue | 0.8 | 0.6 | ||
Administrative Fees | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Revenue recognized associated with revised forecasts underlying contracts with variable consideration components | $ 7.3 | $ 3.1 | ||
Revenue recognized associated with a change in net administration fee revenue | $ 0.4 | $ 4.6 |
GOODWILL AND INTANGIBLE ASSETS - Schedule of Goodwill (Details) $ in Thousands |
6 Months Ended |
---|---|
Dec. 31, 2022
USD ($)
| |
Goodwill [Roll Forward] | |
Goodwill beginning balance | $ 999,913 |
Acquisition of businesses and assets | 69,387 |
Goodwill ending balance | 1,069,300 |
Supply Chain Services | |
Goodwill [Roll Forward] | |
Goodwill beginning balance | 388,502 |
Acquisition of businesses and assets | 0 |
Goodwill ending balance | 388,502 |
Performance Services | |
Goodwill [Roll Forward] | |
Goodwill beginning balance | 611,411 |
Acquisition of businesses and assets | 69,387 |
Goodwill ending balance | $ 680,798 |
GOODWILL AND INTANGIBLE ASSETS - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Oct. 13, 2022 |
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Goodwill [Line Items] | |||||
Intangible asset amortization | $ 13,047 | $ 10,850 | $ 23,499 | $ 21,739 | |
TRPN Transferred Assets | |||||
Goodwill [Line Items] | |||||
Fair value of intangible assets acquired | $ 116,600 | ||||
Weighted average useful life of the acquired intangible assets | 14 years 1 month 6 days | ||||
TRPN Transferred Assets | Provider network | |||||
Goodwill [Line Items] | |||||
Fair value of intangible assets acquired | $ 106,500 | ||||
Weighted average useful life of the acquired intangible assets | 15 years |
GOODWILL AND INTANGIBLE ASSETS - Intangible Assets by Segment (Details) - USD ($) $ in Thousands |
Dec. 31, 2022 |
Jun. 30, 2022 |
---|---|---|
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets, net | $ 452,845 | $ 356,572 |
Supply Chain Services | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets, net | 285,571 | 301,611 |
Performance Services | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets, net | $ 167,274 | $ 54,961 |
GOODWILL AND INTANGIBLE ASSETS - Schedule of Estimated Aggregate Amortization Expense (Details) $ in Thousands |
Dec. 31, 2022
USD ($)
|
---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | |
2023 | $ 24,407 |
2024 | 49,414 |
2025 | 47,788 |
2026 | 46,544 |
2027 | 43,893 |
Thereafter | 239,799 |
Total intangible assets, net | $ 451,845 |
DEBT AND NOTES PAYABLE - Schedule of Long-Term Debt and Notes Payable (Details) - USD ($) $ in Thousands |
Dec. 31, 2022 |
Jun. 30, 2022 |
---|---|---|
Debt Instrument [Line Items] | ||
Total debt and notes payable | $ 553,278 | $ 454,327 |
Less: current portion | (400,682) | (250,859) |
Total long-term debt and notes payable | 152,596 | 203,468 |
Credit facility | ||
Debt Instrument [Line Items] | ||
Total debt and notes payable | 300,000 | 150,000 |
Notes Payable | Notes payable to members, net of discount | ||
Debt Instrument [Line Items] | ||
Total debt and notes payable | 250,324 | 298,994 |
Notes Payable | Other notes payable | ||
Debt Instrument [Line Items] | ||
Total debt and notes payable | $ 2,954 | $ 5,333 |
DEBT AND NOTES PAYABLE - Notes Payable (Narrative) (Details) - USD ($) $ in Millions |
6 Months Ended | ||
---|---|---|---|
Dec. 31, 2022 |
Jun. 30, 2022 |
Aug. 11, 2020 |
|
Level 2 | |||
Debt Instrument [Line Items] | |||
Imputed interest (percent) | 1.80% | ||
Notes Payable | Minimum | |||
Debt Instrument [Line Items] | |||
Notes payable, stated maturity period | 3 years | ||
Notes Payable | Maximum | |||
Debt Instrument [Line Items] | |||
Notes payable, stated maturity period | 5 years | ||
Notes payable to members, net of discount | Notes Payable | |||
Debt Instrument [Line Items] | |||
Notes payable | $ 250.3 | $ 299.0 | |
Debt discount | 6.4 | 9.1 | |
Notes payable included in current portion of long-term debt | 98.7 | 97.8 | |
Other notes payable | Notes Payable | |||
Debt Instrument [Line Items] | |||
Notes payable | 3.0 | 5.3 | |
Notes payable included in current portion of long-term debt | $ 1.9 | $ 3.1 |
STOCKHOLDERS' EQUITY (Details) - $ / shares |
3 Months Ended | |||||
---|---|---|---|---|---|---|
Jan. 26, 2023 |
Dec. 31, 2022 |
Sep. 30, 2022 |
Dec. 31, 2021 |
Sep. 30, 2021 |
Jun. 30, 2022 |
|
Subsequent Event | ||||||
Class of Stock [Line Items] | ||||||
Dividends declared (in dollars per share | $ 0.21 | |||||
Class A Common Stock | ||||||
Class of Stock [Line Items] | ||||||
Common stock outstanding (in shares) | 118,866,586 | 118,052,235 | ||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | ||||
Dividends declared (in dollars per share | $ 0.21 | $ 0.21 | $ 0.20 | $ 0.20 |
STOCK-BASED COMPENSATION - Schedule of Stock-based Compensation Expense and Resulting Tax Benefits (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Share-Based Payment Arrangement [Abstract] | ||||
Pre-tax stock-based compensation expense | $ 2,679 | $ 16,234 | $ 9,815 | $ 23,788 |
Less: deferred tax benefit | 1,060 | 3,650 | 2,007 | 4,725 |
Total stock-based compensation expense, net of tax | 1,619 | $ 12,584 | 7,808 | $ 19,063 |
Increase (decrease) in deferred tax benefit | $ 400 | $ (500) |
STOCK-BASED COMPENSATION - Schedule of Unrecognized Stock-Based Compensation Expense (Details) $ in Thousands |
6 Months Ended |
---|---|
Dec. 31, 2022
USD ($)
| |
Stock options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Stock-Based Compensation Expense | $ 0 |
2013 Equity Incentive Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Stock-Based Compensation Expense | $ 55,450 |
Weighted Average Amortization Period | 2 years |
2013 Equity Incentive Plan | Restricted Stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Stock-Based Compensation Expense | $ 27,707 |
Weighted Average Amortization Period | 2 years |
2013 Equity Incentive Plan | Performance share awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Stock-Based Compensation Expense | $ 27,743 |
Weighted Average Amortization Period | 2 years |
STOCK-BASED COMPENSATION - Schedule of Aggregate Intrinsic Value of Stock Options (Details) - 2013 Equity Incentive Plan $ in Thousands |
6 Months Ended |
---|---|
Dec. 31, 2022
USD ($)
| |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding and exercisable | $ 4,178 |
Exercised during the six months ended December 31, 2022 | $ 78 |
INCOME TAXES (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Income Tax Disclosure [Abstract] | ||||
Income tax expense | $ 23,765 | $ 6,367 | $ 42,534 | $ 25,400 |
Effective tax rate (percent) | 27.00% | 8.00% | 28.00% | 11.00% |
SEGMENTS - Narrative (Details) |
6 Months Ended |
---|---|
Dec. 31, 2022
brand
segment
| |
Segment Reporting Information [Line Items] | |
Number of reportable business segments | segment | 2 |
Performance Services | |
Segment Reporting Information [Line Items] | |
Number of sub-brands | brand | 3 |
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