Premier (NASDAQ: PINC) reported Q1 EPS of $0.68, $0.02 better than the analyst estimate of $0.66. Revenue for the quarter came in at $302.4 million versus the consensus estimate of $296.14 million.

Q1 2020 Highlights:

• GAAP net revenue increased 3% to $302.4 million from $292.6 million a year ago; Supply Chain Services segment revenue increased 8% to $223.1 million from $206.9 million a year ago; and Performance Services segment revenue decreased 7% to $79.3 million from $85.7 million a year ago.
• GAAP net income was $70.9 million, compared with $83.4 million a year ago; diluted earnings per share was $0.49, compared with a loss of $12.79 per share a year ago.
• Non-GAAP adjusted EBITDA* increased 1% to $140.3 million from $139.5 million a year ago.
• Non-GAAP adjusted fully distributed net income* decreased 2% to $86.0 million from $87.5 million a year ago, while diluted per-share net income increased to $0.68 from $0.65 a year ago.
• Premier acquired Medpricer, one of the nation’s leading technology-based cost management solutions for purchased services, on Oct. 28, 2019, for $35 million in cash.
• During the quarter and through Oct. 31, 2019, Premier repurchased approximately 4.1 million shares of Class A common stock for at an average price of $31.90 per share as part of its previously authorized $300.0 million Class A stock repurchase program.

“We delivered solid performance in the first quarter, driven by continued steady growth in our core group purchasing business within Supply Chain Services that largely offset anticipated continued softness in Performance Services segment revenue,” said Susan DeVore, chief executive officer. “We remain committed to capitalizing on Premier’s unique, integrated and expanding supply chain, technology and consulting capabilities to build on our momentum and track record of consistently and profitably growing the overall business.

“In this dynamic marketplace, we are taking steps to ensure Premier is well-positioned to continue performing and driving value for our members and stockholders,” DeVore continued. “We are confident in Premier’s business model and our strong, longstanding relationships with the company’s member owners, who created and helped build Premier into a powerful shared resource that provides comprehensive cost, quality and safety solutions.”

DeVore added, “We believe Premier’s comprehensive data, analytics and services capabilities significantly differentiate the company’s offerings across our supply chain, enterprise analytics and performance improvement businesses and enable us to deliver a unique, integrated total-value approach. Importantly, our Supply Chain Services business, including the administrative fees revenue from group purchasing, is one of multiple drivers of the value we create through our integrated portfolio, which we are continually working to expand.

“We are confident in the company’s strategy and future prospects and believe our strong free cash flow and flexible balance sheet will continue to provide Premier with a solid foundation for growth and stockholder value creation,” DeVore concluded.

For earnings history and earnings-related data on Premier (PINC) click here.