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| First-quarter economic impact of restructure See Adjusted EBITDA and Adjusted Fully Distributed Net Income reconciliations to GAAP equivalents in Appendix (Unaudited; in thousands except pershare data) 2013 2012 2013 2012 Net revenue: Net administrative fees 143,576 $ 117,489 $ 102,313 $ 100,032 $ (a) Other services and support 53,252 48,147 53,252 48,147 Services 196,828 165,636 155,565 148,179 Products 43,748 32,930 43,748 32,930 240,576 198,566 199,313 181,109 Cost of revenue: Services 27,488 24,080 27,488 24,080 Products 40,038 30,152 40,038 30,152 67,526 54,232 67,526 54,232 Gross profit 173,050 144,334 131,787 126,877 Operating expenses: Selling, general and administrative 62,318 55,732 62,643 55,732 (b) Research and development 852 3,638 852 3,638 Amortization of purchased intangible assets 601 385 601 385 63,771 59,755 64,096 59,755 Operating income 109,279 84,579 67,691 67,122 Equity in net income of unconsolidated affiliates 4,114 2,781 4,114 2,781 Interest and investment income, net 220 224 220 224 Gain on disposal of assets 4 — 4 — Other income, net 4,338 3,005 4,338 3,005 Income before income taxes 113,617 87,584 72,029 70,127 Income tax expense 891 2,517 6,761 8,144 (b)(c) Net income 112,726 85,067 65,268 61,983 Add: Net loss attributable to noncontrolling interest in S2S Global 210 305 210 305 Less: Net income attributable to noncontrolling interest in Premier LP (113,214) (83,116) (51,030) (48,398) (d) Net income attributable to noncontrolling interest (113,004) (82,811) (50,820) (48,093) Net (loss) income attributable to PHSI/Premier, Inc. shareholders (278) $ 2,256 $ 14,448 $ 13,890 $ (d) - Reflects a reduction in the noncontrolling interest attributable to the limited partners from 99% to approximately 78%, and the impact of adjustments (a) and (b) , resulting in a decrease in noncontrolling interests of $62.2 million and $34.7 million, respectively. (b) - Reflects stock compensation expense of $325 with an associated income tax benefit of $127. Three Months Ended September 30, PHSI Pro forma - Premier, Inc (a) - Reflects the payment of revenue share to each member owner equal to 30% of all gross administrative fees collected, resulting in a decrease in net administrative fees revenue of $41.3 million and $17.5 million, respectively. (c) - Reflects income taxes on additional allocable share of taxable income at an estimated effective income tax rate of 39%, resulting in additional income taxes of $6.0 million and $5.6 million, respectively. |