PINC - Earnings call transcript Q2 2025

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Operator

Good morning, and welcome to Premier's Fiscal 2025 Second Quarter Conference Call. [Operator Instructions] Please note this event is being recorded.

I would now like to turn the conference over to Ben Krasinski, Senior Director, Investor Relations. Please go ahead.

Ben Krasinski

Thank you. Fiscal Quarter Premier's Call. to welcome XXXX Conference Second and

Premier's are CEO; Administrative Our morning Alkire, and President Officer. Chief speakers this our Mike and Coleman, and Financial Glenn

plans, including our I this remarks accompanying those expect are today differ expectations materially that statements no at and XX-K available today. could prospects, to section Factors speak forward-looking with we results remind results get investors.premierinc.com. supplemental XX-Q our statements Form update Investors in our call want such the SEC, as contain regarding to today, our we and the certain from that the performance file most undertake discussed we recent started, everyone Before discussed our future quarter, These as future which affect management's filings that and of earnings are in and Form Please release presentation advised forward-looking soon. strategies, for to and might statements website them. of be actual our obligation the

expect our measures soon. X-K, financial measures supplemental the earnings of included free our our to financial reports. earnings why and in in review our our these be and release flow the use included factor our to file non-GAAP we this statement accompanying risk the and will to both XX-Q measures, presentation forward-looking the addition in are call. evaluate on financial these to appendix also Form detailed for in other financial including you which in measures of reconciliations GAAP GAAP presentation, to of adjusted Information during disclosures quarter refer business. this to these will Also, Form and Information encourage we non-GAAP measures and cash we We measures on

call over the Alkire. to Mike Now turning

Michael Alkire

business on our review Good giving over for second you then pass spend an few update strategy earnings it for morning, more XXXX minutes a and for to you morning, of quarter detailed fiscal financials. Ben. This and thank our performance, us our joining call. Glenn I'll Thanks, a

As a our better-than-expected expectations overall half first Supply of segment. Services in profitability from and the results revenue preview, fiscal in Chain line were XXXX our with resulting for

net our per we despite in and result, the are adjusted achieving guidance Services revenue earnings our increasing not share reaffirming a total Performance guidance segment. As objectives

technology-enabling partner transition the by beyond to digital supply pipeline one This in resiliency. of with chain Overall, utilization signing for the our our continue to supply supply a announce is agreement of goal major our chain smarter we and enabling In the for deliver team are In continues faster and and care. Chain our performance pilot remain progress the the chain partner. of supply of our segment, many vision strategies data on chain of research, better, our Supply make clinical to successful development, long-term excited will and that health improvement second execute phase health and advancing the we care. leverage committed first clinical innovation our and excellence across strategy marked quarter, to Services the unique sets

and efficient and digitization more a health we care shared towards chain. step payables of the previously, critical care creating invoicing As a is transparent health have supply providers for

encompasses following strategy the areas. Our key

savings. back-office significant manual cost AI-enabling are and we improvement providers First, processes delivering suppliers for time and

to view comprehensive are actionable to care Second, nonlabor enable providers. enhancing performance improvement we of data further insights spend total our health for deliver a

the shortages we product patient workflows, right address at leveraging anticipate our embed for chain care. impact we are industry the is before supply the by enhancing and time. decision-making patient the Third, available evidence-based right to potential right ensuring set are And data transparency, extensive helping into they finally,

in expertise Premier's the for are of us a shortages, intelligence topic XXXB for objectively market. which navigating program, encouraged provider-focused in the by the demand the growing data, we key and On is market differentiator

target list to background, manufacture, FDA shortage the actionable but which drugs drug often act on typically suppliers insights rely to As quickly. to lack the

capabilities bring much leverage total needed time new for technology-enabled payers the However, in enhance it shorten our market, providers, to and to optimize experiencing health strategy care providing cost to delivery Performance segment, to takes we market-leading supply the relief of providers that long-term care care Services our suppliers. services remain they and confident can shortages. In to deliver

new for our brings and strategies we care We are will health impressive thrilled and innovate an to leadership Dave years revenue insights financial expertise Zito welcome be turnaround Services. consulting David with of and providers. to XX President experience His as Performance continue and diversification as of deep invaluable grow.

of to continue enhance automation potential workflows for will AI-enabled in and ultimately and to believe better also streamline to strongly for care transformative satisfaction lead the patients. providers. This guidance We

where robust. addition, drives remains to deliver digitization turn our our strong continued our success. With direction of Conference ability we key In month, care navigate are pipeline drive leadership for eager the joined customers and Glenn. our that call Glenn improvements modernize strategic Premier's of to we the me investors, meetings appropriate dozen over utilization in price overwhelmingly the positioned performance providers care feedback Healthcare participated data ability Both talented With real-world through X last dynamic most confident evidence the team, at harness at with to now prospects. over landscape the deliver team's right products health and I was Their health Dave in and patients. well that, reinforcing the I'll and JPMorgan to efficacious positive, and remain results right effectively. to provider for

Glenn Coleman

everyone. Good Mike. Thanks, morning,

And and this not pleased reminder, which also XXXX. reflect divested do during SXS Global report was I'm operations all on October discussed that X, results continuing we reflect assets to call towards As a of end of sale remaining to and the the Contigo January this XXXX. Health the we completed year. the continue of work fiscal network divesting before assets of in

Contigo from include the such, contributions quarter business. As actual for results

guidance. the continuing are to our we However, results in exclude

turning consolidated Now to second quarter results.

were expectations. EBITDA and revenue our below quarter second Our adjusted

of Net million $XXX X first we year XXXX, revenue a with for months for driven decreased of the administrative on the in fiscal quarter metrics of prior year these ahead track fees and Supply in revenue period, are adjusted from by decline Chain for the our expectations Services. However, net EPS.

in million $XXX distribution million from the from and our of consulting million and continuing GAAP charge In cash revenue technology experienced was Services in product operations, from the an an unfavorable segment. goodwill continuing we applied lower to our loss services minority an in $XX offset net Performance Services to mix by addition, sciences due operations within $XX of impairment business partially to of was mainly Performance This segment. which included related data profitability investments.

and count the Adjusted billion EBITDA translating $X.XX due impact share from a was revenue. of margin average EPS Contigo in our Health largely share was share with to repurchases of excluding to benefited $XX weighted lower per million, result line our Adjusted lower the a of declined XX.X% as earnings and authorization. is $X.XX, expectations. $X a Adjusted and under

January repurchased million shares $XXX Class stock of we XX for common of A million. As over XXXX,

to revenue Turning to expected lower the segment in segment, in the results. driven fee fees In quarter. blended level our aggregate increase Supply low was XX% the share Chain net the by Services administrative

we and of the our August members part approximately fees. existing continued as group fees to GPO restructure gross XX% members. The and members that new increase XXXX represent contract onboard of gross total administrative grew of However, recruit penetration administrative spend of as were

in addressed occurring by XX, of December we members majority of address and greater year of fiscal the than approximately group's expect As with XX% end remainder of the representing fees, XX% and fiscal we've to this the XXXX XXXX.

and expectations, in where result, our driven Chain is one agreements end-to-end a Premier's has supply low experienced XX% services addition, To increasing our In we've the renewal expertise continue manage while chain operations. fiscal supply fee other year-over-year growth new to we our our be continue process. year versus for been chain in range results, members of funded be headwind supply interest the reasons we're increase full for our date, their in express XXXX. the Supply that aggregate will And in stabilized revenue funded in of leveraging the completed business our by comanagement less Also, we a impacted aggregate has expect to fee share negatively help guidance it revenue, to in share XXs once the chain the high Services. as to it

demand to lower services the Applied Sciences. due Moving Services product Performance in mix was in segment. The to consulting decline of revenue XX% and

the current minority payments. compensation around of and strategy the offset of interest to quarter million items, short-term performance use business while paid more from health we the To $XX serve. Shifting to under broad-based equivalents In an headwinds extending sheet. member year our payments driven further improvement license addition, these are talent $X as the reinvigorate the performance timing-related lawsuit cash we in Cash shift was delivering balance Mike long-term In began leveraging million a outstanding market to a by from to XX, totaled plan the market of and already which, million see refocusing strong favoring derivative and a of differentiation, increased balance and distribution track unique improvement in gradual XXXX, new areas facility, to record our will versus half performance-related with improvement to cash We and SaaS systems, and the first cash engagements solutions revolving the partially go-to-market confident capabilities on large These settlement higher penetrate largely with by despite leadership, our December said, year billion continuing million new AI be strategy $XX at prior from in Dave's January. we this echo flow in by our of our of credit areas collaboratives the by XXXX. recruiting million free $XX This remain broadly and period. of cases we $XX of ended the timing OMNIA key what in subscription agreements. received fiscal investment. $XXX

With We XXXX. we the a repurchase focused in deployment, to respect share to to taking approach completed $XXX term. the in returning and January capital stockholders disciplined remain million and continue balanced of early on capital near

continued also calendar the in and return X% year through totaled a our to $XX yield capital XXXX. million of in which dividend, We represented half year fiscal quarterly XXXX first

March. In addition, declared of Board share in dividend recently our payable $X.XX a per

investments organic to driving acquisitions priority through in as be our growth well Our revenue capital deployment differentiate tuck-in potential the as marketplace. core in offerings will

share. the $XX by resulting first year million revenue XXXX, range Chain Turning for and reaffirming midpoint our of to increasing with midpoint the a expectations line overall of the ranges. to performance actual guidance fiscal higher revenue favorable consolidated blended the Based underlying from of in updating was we're all fee administrative outlook our our range and we're the for the tightening on guidance. segment reflect year, the which half In fees Services, Supply expectations guidance net of remainder

added we've addition, Health win. Aspire In competitive and new Partners a members, recent including GPO

in Lastly, termination member with we system, require venture quarter into expect a entered agreement their a through XXXX. joint from that a payment which fiscal the the phased will another fourth health of

Performance guidance revenue $XX previously we're the range discussed headwinds our from Services, that resulting we're of the midpoint by short-term In lowering million, experiencing.

In guidance by profitability, EBITDA share the completed adjusted are $X.XX better our as favorable terms million $XXX the reflect Supply guidance tightening share our of in well ranges early impact our per as in January. the of of Services, earnings in the performance we repurchase due an reaffirming midpoint increase to Chain to midpoint adjusted of

to our we flat GPO fourth For Then quarter in higher of as second business net slightly to to quarter. administrative anticipate the the of second expect quarter. quarter, revenue be compared member have half the in more back-end up third fees year, ramping payment the we our increase the Performance anticipate member the weighted will from in we fourth a new Services, spend. In resulting expected and sequential the

mainly the we fourth EBITDA For In mix be earnings adjusted and Services timing is remain expected. track on doing to for better adjusted summary, more weighted, per due than year. to slightly Supply profitability, we share of the revenue. expect and quarter Chain

stockholders. balance we that And with performance reinvigorate grow flow we right provides believe an have a business have to flexible and services. a net differentiation us the ability to meaningful cash in our sheet and to in the action strategy have plan the market. value continue We to We

We we'll now the appreciate for your questions. today, open call time and

We will question-and-answer now session. begin the

Operator

[Operator comes Cherny from Partners. Instructions] Michael Leerink The first with question

Michael Cherny

not be would make leverage, or big Mike have a savings constraints for debate supply of tariffs, the customers areas off lot you're your prepare weekend and first. by guess, affected what or from supply we are regarding I for what to having what come a with potentially you discussion best customers you tariffs for proactively components of picture the are now the which sure as Maybe radar, that the discussions now yesterday the given that doing world can are tariffs? to over some that had most a know that opportunity Obviously, of just of your I possible? And do question purchasing

Michael Alkire

Thank on is we've supply think thing the of to and resiliency just build the continuing in to got to the you, #X I Michael. And focus suppliers continue the diversification chain.

obviously, have been I what and of tariffs -- not So been Canada closely. maybe read constantly mean, potential following what's and we issue I've tariffs. you in it the about all, I've like is Mexico and happened this changing. happened in incredibly having

tariffs. the of tariffs you the of to are think I depend the this, and the end countries going on day, at have impact the know full that the

that. very are And being understand so we to focused on trying obviously very,

have to on protections health and care which mitigate any for taxes tariffs help general, as relates to it our most term the impacts short-term of against providers. pricing, In contracts firm us, includes the

the So a Southeast two, country been countries. as in to potential we're and are I it that the that overreliance are to diversifying, much that supply we're some of having truly lessen of how will that systems that, but if health that's think, number we're chain that for term. that Asia, of again, on for in think has an to not not firm heard spread also focus the impacted a the care by we're doing to and so creating years one. production that, not able me, being there's contracts things possible. doing We as other over obviously you've really as ensure that truly providing diversification tariffs our most and for number Number ensure the

Michael Cherny

with Glenn, secondary behind view the year. that work you mentioned anticipated the a led out way to then that give the dynamics you I the world. you you on Obviously, finalization going recontracting of as sense to us the Can this a on as start broad-based you your maybe had fees, drivers a of little our we recontracting. given appreciate that a just little the And broad lot than came as effort? question the administrative through better to point

Glenn Coleman

Services. thanks happy Mike. No, Supply And overall, Yes. the we the very of for are Chain with question, performance

see net we of fees. -- addition to pieces administrative to in So I really our a give growth good you couple gross want fees in the administrative continue to

So if remember last had you Craig highlighted as this quarter, a positive.

to into continued it's X% were food, that which overall construction fees, categories gross medical at facilities, all look quarter. that close second to and diagnostics, us So broad-based. the I We actually on surgical year-to-date, puts close pharmacy, If X% grew administrative growing. the pretty

much a way the complete situation, end be of positive So XXXX. going sign also actually the for us. When pretty fiscal is look we're I renegotiation. positive. And the through the should obviously, very also that we share of fee We're XX% the a that at remainder highlight now, was did which through by

we're by wrapped year good fiscal So the XXXX. of trying But end progress. making up get to those

would And some we're I as we so laid had few impacts. say fee our a out share budget what to far, expectations, favorable in seeing relative

[indiscernible] to new on that disclosing so as upticks are that's why members Board. half now in to us going kicking in coming the also chain member another going us January for raising X, we're fact, that's the in some the help terms then previously key name but help in that's the And And well. we're the big to year. win not about of talked going Coupled so member, we our win now of those drivers had here back the with see we're services. additional numbers about the confident of supply We

on year-over-year, Chain So while are when Supply the whole, the positive business. down a are you direction numbers look things trending our in Services at

Operator

comes question Eric from Research. Percher Nephron Next with

Eric Percher

in year maybe ahead wide at And in Can groups of you versus ask bit your of step as to kind so where the expectation the there's and then as commentary I'm when you on little guidance. does in what's year that much netting the the and And from that, us like absolute little can commentary at my and future I give a of you be looking target, -- that any XXs, QX? of new you concern is look this high that leaving lower I'd 'XX you us stabilizing we QX the for high bit any see and you've members should that, you, is on far, into you fiscal get go how of off leaving XXs a the a versus kind ourselves. out around is how progressed because further off which value looking falling announced? range retention

Glenn Coleman

Thank the Yes. question, you Eric.

all expect and first foremost, think higher see contract to of penetration contracts. we do I our on

with we next side, some year. momentum non-acute category. growth terms in growth nonacute we nice by into as there's areas penetration. even of situation have seeing So look really on Supply good going And our I'm at the contract the the really encouraged Chain Services some the

So that's encouraging.

fee I you relatively share of would QX, it, it's piece QX just stable. the On tell to from

going the Is anything high it remarks, our high that's share increase where didn't expectation mention But then better to on other be a we don't be the view could we we'll are It's as XXXX. than bit expect albeit today? it we end the has XXs in the setting a negotiations, ends And my that. through I we back until possible. to year, given get the think prepared see the to for have would did fee all half very I expect around changed we fiscal modest. uptick. little XXs year an of in moment. some I So into it big and up the get But it see in in where careful possible

Michael Alkire

this Eric, is Mike. And

Just in supply enablement significant mean? really It of of chain from the real making quickly, technology and the a the spend pretty means we've some been does after that we're that standpoint. all investment technology what getting

that's opportunity least that that, to the gross ad design And fees. We be admin drive as a continue tailwind so contracts value fee having significant to an additional build at to obviously, the can perspective. think from to and that very models going

Eric Percher

traction opportunity, And to that, high XXs put addition a of through customers. some fine on saying point lower you're through retention not is of

Michael Alkire

one that more Say time?

Eric Percher

through a higher saying -- not was the of today, addition to customers? share it's you seeing it's I you're Yes. lower that roll-off getting that return of coming customers have of the

Glenn Coleman

Yes, I it's assessment. a fair think

Operator

The next question with comes from UBS. Kevin Caliendo

Kevin Caliendo

it The it's the going win where quarter fourth Performance or of to Is more that lives ramp or there is bit around new mentioned something the around the of little to weighted. Services, Glenn, the want just be in sort some the business there? segment? [indiscernible] I improvement guidance to just get confidence to just comfort maybe to sort of related that you a seasonality just understand and

Glenn Coleman

sure. Yes,

going of was half think And my into why year the soft the is second play to QX going we comments and of a stronger. quarter to be some why is actually

parts usually in this Sciences. softer QX December year. we the Life quarter. didn't off Services was quarter and a was very It's calendar So start companies for year business, with Performance overall, Yes, see than Applied It that if is typically I different look typical. market biggest a our at the Sciences of in market the I'll strong

strong in our QX deals actual of we'll fiscal funnel applied see in QX. fiscal and think we an have and to sciences those fruition really we so And come some that

strong funnel, going a the about we good year momentum we the at XXXX. fact feel pretty calendar of actually didn't end the the year, uptick into see calendar So with the

subscription that engagement, seeing data customized we this more that typically type in is The deals Sciences Applied of towards in some access data shift is other licensed where the model. rollout sell deals a akin more we're thing were these to or moving a data and

couple the multiple where over spread So deals to have versus going out won a of upfront. we revenue actually periods be is

later through that of confidence us some year. that come see so we'll some this And gives that

area, On from deals these January fiscal shift we did we month QX license see them QX the the just into in of to in improvement QX, of one agreements our that happen and some closed was enterprise technology last supposed quarter. of fiscal performance our actually

around building get they focusing timing license is new with opportunities a it leadership in and when new these logos really of significant on obviously, some funnel and customers. completed. So hard very enterprise Dave's deals out of And we're

to And in continue I have big you focus momentum so the to do year. half don't anything? second that's a for know, right now better Mike the of us

Michael Alkire

right? has been Yes, collaborative out a stronger will on much of on couple capability. Board building now. things, couple a he just I here really a for focus has you, of Dave other tell months our

Premier those significant other improvements. So on. it's a them those systems for focus to use more with an and And it's health that interested, against work of for us potentially us, an historically, drive something And very that, obviously, capabilities help each on has benchmark one advisory things. opportunity had for kinds are for very, Premier, like also then

around about refocused that's that's excited also obviously, background, very I again, getting the think, that -- veteran. a Dave's with industry experienced really So he's collaborative and

how sell things. with advisory additional those the technologies will focus to only think us help that ability services capability of I up and in is we our to kind and business. going to And build are continue additional his

here see feet next to gets over the as really So his couple under. of excited what Dave months happens

Kevin Caliendo

the or a how how that That's me reimburse that cost who kicked X, all on then have would I would now. a of product take unclear just or were If from by somewhat product, kind through $XXX you could can who sourcing gets understand that where great. where you affected consumer? Like tariffs up provider say, who sort If in don't February would the does that to actually how I have distributor ask it from gets have impacted the that responsibility, extra who It's this might tariffs. right, the that on have the costs channel, of perspective, takes follow-up that? just impacts like Like as money, the work. a the the let's that end insurer use does product $XXX? cost product the that might to on

Glenn Coleman

So just how actually it depends the is implemented. on look, tariff

of with of comment that So I'm it bit covers a answer. going my a answer to sort

implemented. two, a So gets subtext a number Number of, tariff political if on applied even it one. a gets or to know country. on we're medical actually or actually to things. to product, depends medical That's how spend going there's doesn't the always and this There's apply a about you if commentary how do tariff tariff this, well, different maybe it devices

to really net what think, of that the would have to like you product a is to that, XX% on is to tariffs. Having the be actually So included seller pay $X, detail to attention $X.XX a you the to the product if just tariff the a consumer, going is tariff going be that's there's said in of product.

cover possible, price our getting having as term that commits firm reimbursement amount. cost And for produce China, in their going manufactured the to important up, it somebody that to really the we gets much or the is that cost. does in product example, not agreements health to a pricing given they're systems, not is hospitals that these has providers actually have with if the that That's possible for that partially end much increased that for pay that product so as so that go up reason as and as

matter how it's really around I situation give best applied. a and just those. answer the of terms you in of sort you But can that's because those do an of how -- these contracts contract volatile it's So get happening things a what's terms in such

Operator

Coldwell comes W. next with Eric Baird. The Robert from question

Eric Coldwell

you if X mind. or I have don't X,

and it's about or something nature? that curious The most its or income well. million in First distribution something earnings, numbers your specifically, one the was you could about distribution an included as is EBITDA, about adjusted guidance were And And Was onetime where your investment. in confusion going or talk or minority of there in embedded coming wound then from adjusted $XX.X recurring a bit little how in investor that up net from we forward? OMNIA else? the

Michael Alkire

Yes.

of come type X And not So from our of an did we of couple oe numbers. adjust It It time, minority partners. distribution. happen really it that every it's years, is onetime did distribution not came OMNIA. annual our from it but out could

it's So in included not our results.

Eric Coldwell

years, in was departure for the me, prepared there more end a remarks, of Perfect. was a a -- that's mention then member be over of to there the specifically, it multiple out? going there more of with and associated in provide on multiyear a sounds. were you there Or the will that departure? detail any onetime that be number And then Could why payments And phase it's mention phased future?

Michael Alkire

This Mike. Yes. is

moving So obviously, of that that well. scenario of things is a couple as still kind around

providing partnership are still services that So in occurred, that there. we

want the there that's saw So portfolio the you the of they're because strongest example, for Like, that reason still leverage that they the part to -- are parts multiyear sort industry. of in comment.

want they they far as those as to can so And long, leverage those. leverage

the think So very reason I it's still time. to see that going And this you're that's over fluid.

ahead. that -- that, what looks onetime yes, go So we're still working Having through Glenn, there contractual a was like. said

Glenn Coleman

quarter. say onetime we fourth yet. coming received just the would haven't It's in I payment the

Eric Coldwell

How is much embedded that I the Glenn, in payment? And much how -- assume is guidance? that

Glenn Coleman

our we It's we're embedded at why Chain of in Supply it's not amount the guidance million are $XX midpoint. it's up reasons But number disclosing guidance, and Services and the taking by the of the the in actual one payment.

Operator

The with from next Tassan Sandler. Piper question Jessica comes

Jessica Tassan

for the pricing term to come And congrats to hoping results. strong was comments. just firm just the back I the on

just the term of period time? isolated of tariffs pressure? unchanged embedded customers from would the in your Premier does kind your be guarantees and whatever can on So Premier the that that, for pricing or member that firm that contracts that would organizations you imply hook would for for clear be the supplier maintain on Or price be is

Michael Alkire

the No, good is question. contracts. embedded No, in that

firm not as tariffs, That that then that's absorb the for the on is they are those to systems that it's provides not those obviously, for. Premier. So that's Premier have ones hook And something -- health is if not the well. the a supplier product,s, term, who the

Jessica Tassan

volume, just then in it. really purchasing tariff you contemplates of helpful. the I comment you saw environment, the ask moderates of half Got the second or of within pull your And year? guidance you yes, any light in think wanted pull that, fiscal and moderates to to gross which the extent that forward that of which without extent That's then on kind with kind forward can to

Michael Alkire

it's in any back we this But felt I any worried too substantial will to Jessica, people that, there get of or I is it's to point, whether that. the if, to light tell. to of was think as to I tariff. going to to purchasing have fact, answer a in you not at early too think early about specifics any tell with be

Jessica Tassan

Okay. That's one. maybe then, last my I And guess, helpful.

think provided us X wraparounds selling were just just of of services. kind conversations, distinct that mentioned how supply you appealing prospecting what there I your or the prospects? additional SCS the like guys are that digital in Can chain remind dozen at you is are offering initial you you kind just to JPMorgan, from that

Michael Alkire

Sure.

And being about, whole a focused all that's actually partners to So bunch true driving is the then opportunity really the around real-world appealing stuff, to that that about most that is #X actually and is which around evidence there talking are clinical I to that driving be think do happening. value they're innovation ensure we're was supposed are for what studies, really how products access launched like is supplier the of which data. really Glenn our we

layer happening of basis. So the you then cost also supply when to from on it also gives what's start perspective data, some a in sort of

the with that the on there cost associated a having dramatic are So also opportunities world impact real are category. evidence

those these X the around, combining points. So some of nuances it's X suppliers data but what we're so just the really talking of are to different different cycles, data

Operator

question Close next Canaccord The comes from Richard with Genuity.

Richard Close

commenting the to dig just the services. the in little just bit more going curious consulting Just could What a past, than a on little in you changes? if on is on a seems It exactly what deeper bit in business? proposed on that. more And here -- are turnaround that dig in negative

Michael Alkire

Yes.

bit. little I think I hit it a

advanced that they're ways can do where historically bring for that behalf a when improvement around customer that way been refresh those could that's say are ways we things for of deal from that. ways we obviously, our time cost that can advisory the performance still that to to improvement. there manual, cost additional like. systems systems around are with associated I huge significant health constantly a think in providers through What There's those business, labor. as couple things, need a using to the as health it's refresh things back-office helping any -- all with services these opportunities thinking probably and we to technology better those standpoint, have technology our are especially curves. historically, the value just functions performance that to enable issues there systems health those think reduce We're reduce looking looking are significant co-management of we a obviously overall at the opportunities our the I really a capabilities Obviously, way on that capability

So long those it's needs market. and so got the term, appropriate building capabilities about offering meeting of in a for that really the all those the making robust up that's we've investment really the

Richard Close

Okay. else? to on license And going you Or mix the Glenn, Sciences, talking about Applied product then, you're is about? it subscription. talked that Is maybe something

Glenn Coleman

Yes, that's mix. product the

Richard Close

with then Any about assets that bit can And to you said little you And respect talk Okay. Contigo, then sale? What's ongoing? there? a additional some final left? details there's question

Glenn Coleman

Sure.

It's normal $XX subject million. of for working sell adjustments. did we assets network to the So in January obviously Contigo capital

So disclosed our that filing. XX-Q in we've

selling We or center aspect COE are of still moving the administrative excellence. business and third-party of the forward with

at in process divested. don't in on point still an being this that's that of update time. I have So

Operator

Allen comes Lutz of question with Bank from next America. The

Allen Lutz

One for Glenn.

as talk admin calendar MNP gross business anything we X% updated the we as the of and the in there about utilization MNP about Can fees end year-to-date. what's you flip about is talked You guide different year? about calendar to gross embedded of think XXXX, it the 'XX you're expecting relates as tail of in net then versus

Glenn Coleman

be admin to anything our of seeing or in I of on fees, just think the first the in conservative our lower Not conservative. what of we're more I'm gross in based we a a year. on what slower assuming but saw the terms business, half being a meaning I'm little terms a number bit guide, in bit than

So year. got in, I half of when we coming a there's an And generated say opportunity member number numbers, Obviously, kind the the in this have would lower we the in to then first potentially year. the overachieve time of that's one 'XX pain we've that guide, versus QX there. in at do X% But look of we 'XX the versus

Operator

The from Benchmark with next comes Sutherland Bill the Company. question

William Sutherland

have geographies of ever Thinking kind percentages, where about you terms stand all of the sourcing from this in the your -- you're you point? that about sourcing at talked

Michael Alkire

overdependence get you've specific don't focus an China, Yes. We for our been and create on us X that refer country, but like in diversity to over that. into heard more has to specifics, having example, time,

those production countries example, for get a isolation specific been supportive of and And we practice are into certainly for years. those like, of in in to number so of diversity Southeast example products. sets to production we more of ours COVID moving yes, has and for kinds don't But of Malaysia, Asia a the things. example, to other very But of numbers. it gowns create

to will that's all kinds chain. really creating those So supply healthy look at things as we of a continue important to

William Sutherland

Right.

just so instance? you talk as And did broadly as even [indiscernible]

Michael Alkire

of We don't it No. -- time very, moves a first of lot all, very quickly. spend

because and that a production comes of a large category, product, couple priced percentage somewhere we're and to Somebody lower get it with then product of of able be changes up else. years a a in potentially could

So we're how that occurs. very thoughtful movement around

who where make products where manufacturers the is capability suppliers we they that truly is most think right helping understand to capability then in the the we to direction the to that sure get point those want contract those produce through products them I have thing and high-quality production important could produce.

William Sutherland

firm a and on term, contract And just being X-year wondering, typically continually that for are is this -- recontracted? Okay. these the

Michael Alkire

it we agreements. X-year But are typically, that. as contracts. But say our contracts contracts than they're But our X-year less part, that most this, the for be are I accurate. won't Typically, soon Yes. as do have contracts some

Operator

This concludes Quarter session XXXX presentation. you Second Conference Thank Premier's question-and-answer attending Fiscal and today's for our Call.

disconnect. now may You

Premier (PINC) 4 Feb 252025 Q2 Earnings call transcript