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v3.23.1

SEGMENTS (Tables) | 9 Months Ended
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Mar. 31, 2023
Segment Reporting [Abstract] |
Schedule of Segment Information | The following table presents disaggregated revenue by business segment and underlying source (in thousands):
| Three Months Ended March 31, |  | Nine Months Ended March 31,
| 2023 |  | 2022 |  | 2023 |  | 2022
Net revenue: |  |  |  |  |  |  |
Supply Chain Services |  |  |  |  |  |  |
Net administrative fees | $ | 148,441 |  |  | $ | 148,396 |  |  | $ | 452,870 |  |  | $ | 448,261 |
Software licenses, other services and support | 11,032 |  |  | 8,914 |  |  | 35,963 |  |  | 27,165 |
Services and software licenses | 159,473 |  |  | 157,310 |  |  | 488,833 |  |  | 475,426 |
Products | 57,212 |  |  | 93,629 |  |  | 183,066 |  |  | 323,825 |
Total Supply Chain Services (a) | 216,685 |  |  | 250,939 |  |  | 671,899 |  |  | 799,251 |
Performance Services |  |  |  |  |  |  |
Software licenses, other services and support |  |  |  |  |  |  |
SaaS-based products subscriptions | 44,685 |  |  | 49,347 |  |  | 142,097 |  |  | 144,357 |
Consulting services | 22,087 |  |  | 16,342 |  |  | 57,963 |  |  | 46,440 |
Software licenses | 14,400 |  |  | 12,169 |  |  | 51,197 |  |  | 44,033 |
Other(b) | 24,384 |  |  | 19,045 |  |  | 72,603 |  |  | 58,132 |
Total Performance Services (a) | 105,556 |  |  | 96,903 |  |  | 323,860 |  |  | 292,962 |
Total segment net revenue | 322,241 |  |  | 347,842 |  |  | 995,759 |  |  | 1,092,213 |
Eliminations (a) | (9) |  |  | (9) |  |  | (28) |  |  | (18) |
Net revenue | $ | 322,232 |  |  | $ | 347,833 |  |  | $ | 995,731 |  |  | $ | 1,092,195 |
_________________________________ (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):
| Three Months Ended March 31, |  | Nine Months Ended March 31,
| 2023 |  | 2022 |  | 2023 |  | 2022
Depreciation and amortization expense (a): |  |  |  |  |  |  |
Supply Chain Services | $ | 13,002 |  |  | $ | 14,114 |  |  | $ | 40,862 |  |  | $ | 40,710 |
Performance Services | 17,189 |  |  | 16,163 |  |  | 53,407 |  |  | 48,349 |
Corporate | 2,000 |  |  | 2,282 |  |  | 6,299 |  |  | 6,705 |
Total depreciation and amortization expense | $ | 32,191 |  |  | $ | 32,559 |  |  | $ | 100,568 |  |  | $ | 95,764 |
Capital expenditures: |  |  |  |  |  |  |
Supply Chain Services | $ | 6,571 |  |  | $ | 6,740 |  |  | $ | 19,586 |  |  | $ | 22,212 |
Performance Services | 13,311 |  |  | 10,926 |  |  | 38,576 |  |  | 34,312 |
Corporate | 166 |  |  | 735 |  |  | 302 |  |  | 4,537 |
Total capital expenditures | $ | 20,048 |  |  | $ | 18,401 |  |  | $ | 58,464 |  |  | $ | 61,061 |
| March 31, 2023 |  | June 30, 2022
Total assets: |  |  |
Supply Chain Services | $ | 1,355,552 |  |  | $ | 1,406,108 |
Performance Services | 1,261,241 |  |  | 1,054,687 |
Corporate | 896,047 |  |  | 896,336 |
Total assets | 3,512,840 |  |  | 3,357,131 |
Eliminations (b) | (323) |  |  | (4) |
Total assets, net | $ | 3,512,517 |  |  | $ | 3,357,127 |
_________________________________ (a)Includes amortization of purchased intangible assets. (b)Includes eliminations of intersegment transactions which occur during the ordinary course of business.
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):
| Three Months Ended March 31, |  | Nine Months Ended March 31,
| 2023 |  | 2022 |  | 2023 |  | 2022
Income before income taxes | $ | 65,881 |  |  | $ | 53,763 |  |  | $ | 215,748 |  |  | $ | 277,701 |
Equity in net income of unconsolidated affiliates (a) | (4,630) |  |  | (3,991) |  |  | (14,547) |  |  | (17,165) |
Interest expense, net | 4,269 |  |  | 2,804 |  |  | 11,759 |  |  | 8,465 |
Gain on FFF Put and Call Rights (b) | — |  |  | — |  |  | — |  |  | (64,110) |
Other (income) expense, net | (2,954) |  |  | 4,248 |  |  | (3,720) |  |  | 2,176 |
Operating income | 62,566 |  |  | 56,824 |  |  | 209,240 |  |  | 207,067 |
Depreciation and amortization | 20,275 |  |  | 21,408 |  |  | 65,153 |  |  | 62,874 |
Amortization of purchased intangible assets | 11,916 |  |  | 11,151 |  |  | 35,415 |  |  | 32,890 |
Stock-based compensation (c) | 6,709 |  |  | 14,149 |  |  | 16,859 |  |  | 38,229 |
Acquisition- and disposition-related expenses | 6,294 |  |  | 3,115 |  |  | 11,592 |  |  | 10,282 |
Strategic initiative and financial restructuring-related expenses | 1,942 |  |  | 5,540 |  |  | 10,988 |  |  | 9,314 |
Equity in net income of unconsolidated affiliates (a) | 4,630 |  |  | 3,991 |  |  | 14,547 |  |  | 17,165 |
Deferred compensation plan expense (income) (d) | 2,859 |  |  | (3,994) |  |  | 3,148 |  |  | (1,923) |
Other reconciling items, net | 95 |  |  | 4 |  |  | 260 |  |  | 9 |
Non-GAAP Adjusted EBITDA | $ | 117,286 |  |  | $ | 112,188 |  |  | $ | 367,202 |  |  | $ | 375,907 |
Segment Non-GAAP Adjusted EBITDA: |  |  |  |  |  |  |
Supply Chain Services (e) | $ | 122,040 |  |  | $ | 118,034 |  |  | $ | 371,228 |  |  | $ | 381,586 |
Performance Services (e) | 25,018 |  |  | 26,552 |  |  | 87,587 |  |  | 89,277 |
Corporate | (29,772) |  |  | (32,398) |  |  | (91,613) |  |  | (94,956) |
Non-GAAP Adjusted EBITDA | $ | 117,286 |  |  | $ | 112,188 |  |  | $ | 367,202 |  |  | $ | 375,907 |
_________________________________ (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 both the three months ended March 31, 2023 and 2022 and $0.5 million and $0.4 million for the nine months ended March 31, 2023 and 2022, respectively. (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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