8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported): October 6, 2015

Premier, Inc.

(Exact Name of Registrant as Specified in its Charter)

Delaware	001-36092	35-2477140
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

13034 Ballantyne Corporate Place

Charlotte, NC 28277

(Address of Principal Executive Offices) (Zip Code)

(704) 357-0022

(Registrant’s Telephone Number, Including Area Code)

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 7.01. Regulation FD Disclosure.

Investor Day and Economic Outlook Panel

Premier, Inc. (the “Company”) hosted its 2015 Investor Day and Economic Outlook Panel on October 6, 2015 at The Westin Times Square in New York City. The Investor Day and Economic Outlook Panel was by invitation only. The event was audio webcast live through the Investor Relations page on the Company’s website at investors.premierinc.com. A webcast replay will be archived on the Company’s website for approximately 90 days.

Pursuant to Regulation FD, the Company hereby furnishes the presentation materials attached as Exhibit 99.1 to this Current Report on Form 8-K, which information is incorporated into this Item 7.01 by this reference. A related press release announcing the event and the audio webcast was previously issued.

Revised 2016 Revenue Guidance

The Company issued a press release today announcing that it was raising fiscal 2016 revenue guidance. The assumptions underlying the Company’s guidance are set forth in the press release. A copy of the press release is attached as Exhibit 99.2 to this Current Report on Form 8-K, which information is incorporated into this Item 7.01 by this reference.

* * * *

The information in this Current Report on Form 8-K under this Item 7.01, as well as Exhibits 99.1 and 99.2, shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act except as shall be expressly set forth by specific reference in such a filing. The furnishing of this report is not intended to constitute a determination by the registrant that the information is material or that the dissemination of the information is required by Regulation FD.

Use and Definition of Non-GAAP Financial Measures

The financial data contained in the presentation materials attached hereto as Exhibit 99.1 includes non-GAAP financial measures, including EBITDA, Adjusted EBITDA, Segment Adjusted EBITDA, Adjusted Fully Distributed Net Income and Free Cash Flow, each as defined below. For all non-GAAP financial measures, the Company considers non-recurring items to be expenses and other items that have not been incurred within the prior two years and are not expected to recur within the next two years. Such expenses include certain strategic and financial restructuring expenses. Non-operating items include gain or loss on disposal of assets.

The Company defines EBITDA as net income before interest and investment income, net, income tax expense, depreciation and amortization and amortization of purchased intangible assets. The Company defines Adjusted EBITDA as EBITDA before merger and acquisition related expenses and non-recurring, non-cash or non-operating items, and including equity in net income of unconsolidated affiliates.

The Company defines Segment Adjusted EBITDA as the segment’s net revenue less 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.

The Company defines Adjusted Fully Distributed Net Income as net income attributable to Premier (i) excluding income tax expense, (ii) excluding the effect of non-recurring and non-cash items, (iii) assuming the exchange of all the Class B common units into shares of Class A common stock, which results in the elimination of noncontrolling interest in Premier Healthcare Alliance, L.P. (“Premier LP”) and (iv) reflecting an adjustment for

income tax expense on non-GAAP pro forma fully distributed net income before income taxes at the Company’s estimated effective income tax rate. Adjusted Fully Distributed Net Income is a non-GAAP financial measure because it represents net income attributable to Premier before merger and acquisition related expenses and non-recurring or non-cash items and the effects of noncontrolling interest in Premier LP.

The Company defines Free Cash Flow as net cash provided by operating activities less distributions to limited partners and purchases of property and equipment. Free Cash Flow is a non-GAAP financial measure because it does not represent net cash provided by operating activities alone, but takes into consideration the ongoing distributions to limited partners and purchases of property and equipment that are necessary for ongoing business operations and long-term value creation. The Company believes Free Cash Flow is an important measure because it represents the cash that the Company generates after payment of tax distributions to limited partners and capital investment to maintain existing products and services as well as development of new and upgraded products and services to support future growth. Free Cash Flow is important because it allows the Company to enhance shareholder value through acquisitions, partnerships, joint ventures, investments in related business and/or debt reduction. Also, Free Cash Flow does not represent discretionary cash available for spending as it excludes certain contractual obligations such as debt repayment.

Adjusted EBITDA and Free Cash Flow are supplemental financial measures used by the Company and by external users of its financial statements. The Company considers Adjusted EBITDA and Free Cash Flow to be indicators of the operational strength and performance of its business. Adjusted EBITDA and Free Cash Flow measures allow the Company to assess its performance without regard to financing methods and capital structure and without the impact of other matters that the Company does not consider indicative of the operating performance of its business. Segment Adjusted EBITDA is the primary earnings measure the Company uses to evaluate the performance of its business segments.

The Company uses EBITDA to determine compliance with certain financial covenants in its revolving credit facility. The Company uses Adjusted EBITDA, Segment Adjusted EBITDA and Adjusted Fully Distributed Net Income to facilitate a comparison of its operating performance on a consistent basis from period to period that, when viewed in combination with its results prepared in accordance with GAAP, provides a more complete understanding of factors and trends affecting its business than GAAP measures alone. The Company believes Adjusted EBITDA and Segment Adjusted EBITDA assist its board of directors, management and investors in comparing the Company’s operating performance on a consistent basis from period to period because they remove the impact of the Company’s asset base (primarily depreciation and amortization) and items outside the control of its management team (taxes), as well as other non-cash (impairment of intangible assets, purchase accounting adjustments and stock-based compensation) and non-recurring items (strategic and financial restructuring expenses), from its operations. The Company believes Adjusted Fully Distributed Net Income assists its board of directors, management and investors in comparing its net income on a consistent basis from period to period because it removes non-cash (impairment of intangible assets, purchase accounting adjustments and stock-based compensation) and non-recurring items (strategic and financial restructuring expenses), and eliminates the variability of noncontrolling interest as a result of member owner exchanges of Class B common units into shares of Class A common stock (which exchanges are a member owner’s cumulative right, but not obligation, beginning on October 31, 2014, and each year thereafter, and are limited to one-seventh of the member owner’s initial allocation of Class B common units).

Despite the importance of these non-GAAP financial measures in analyzing the Company’s business, determining compliance with certain financial covenants in the Company’s revolving credit facility, measuring and determining incentive compensation and evaluating the Company’s operating performance relative to its competitors, EBITDA, Adjusted EBITDA, Segment Adjusted EBITDA, Adjusted Fully Distributed Net Income and Free Cash Flow are not measurements of financial performance under GAAP, may have limitations as analytical tools and should not be considered in isolation from, or as alternatives to, net income, net cash provided by operating activities or any other measure of the Company’s performance derived in accordance with GAAP. Some of the limitations of EBITDA, Adjusted EBITDA and Segment Adjusted EBITDA include that they do not reflect: the Company’s capital expenditures or its future requirements for capital expenditures or contractual commitments; changes in, or cash requirements for, the Company’s working capital needs; the interest expense or the cash requirements to service interest or principal payments under the Company’s revolving credit facility; income tax payments the Company is required to make; and any cash requirements for replacement of assets being depreciated or amortized.

In addition, EBITDA, Adjusted EBITDA, Segment Adjusted EBITDA and Free Cash Flow are not measures of liquidity under GAAP, or otherwise, and are not alternatives to cash flows from continuing operating activities. Some of the limitations of Adjusted Fully Distributed Net Income are that it does not reflect income tax expense or income tax payments the Company is required to make. In addition, Adjusted Fully Distributed Net Income is not a measure of profitability under GAAP.

The Company urges investors to review the reconciliation of these non-GAAP measures included in the Appendix to Exhibit 99.1 of this Form 8-K and in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2015 (“Form 10-K”), filed with the United States Securities and Exchange Commission (the “SEC”). To properly and prudently evaluate the Company’s business, investors should review (i) the audited consolidated financial statements and related notes included in the Company’s Form 10-K and (ii) the future periodic and current reports the Company files with the SEC, and investors should not rely on any single financial measure to evaluate the Company’s business. In addition, because EBITDA, Adjusted EBITDA, Segment Adjusted EBITDA, Adjusted Fully Distributed Net Income and Free Cash Flow are susceptible to varying calculations, the EBITDA, Adjusted EBITDA, Segment Adjusted EBITDA, Adjusted Fully Distributed Net Income and Free Cash Flow measures, as presented in the presentation materials, may differ from, and may therefore not be comparable to, similarly titled measures used by other companies.

The Company also uses a non-GAAP pro forma presentation in Exhibit 99.1 for consolidated operating results prior to October 1, 2013, the effective date of the Company’s Reorganization and initial public offering (“IPO”). The Company believes this presentation is useful because its consolidated operating results prior to the Reorganization and IPO are not indicative of its results for periods after the Reorganization and IPO. This non-GAAP pro forma presentation is for informational purposes only and does not purport to reflect the Company’s historical results of operations or financial position. This non-GAAP pro forma presentation should not be relied upon as being indicative of the Company’s financial condition or results of operations had the Reorganization and IPO occurred on the dates assumed. Further, this presentation does not project the Company’s results of operations or financial position for any future period or date. Investors should carefully review historical actual results.

Forward-Looking Statements

Statements made in the presentation materials attached hereto as Exhibit 99.1 and on the press release attached hereto as Exhibit 99.2 that are not statements of historical or current facts, such as those related to Premier’s financial and business outlook, strategy and growth drivers, member retention and renewal rates and revenue visibility, cross and upsell opportunities, acquisition activities and pipeline, revenue available under contract, financial flexibility, Class B LP unit exchange process results and 2016 financial guidance and related assumptions, are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from historical results or from any future results or projections expressed or implied by such forward-looking statements. Accordingly, readers should not place undue reliance on any forward looking statements. In addition to statements that explicitly describe such risks and uncertainties, readers are urged to consider statements in the conditional or future tenses or that include terms such as “believes,” “belief,” “expects,” “estimates,” “intends,” “anticipates” or “plans” to be uncertain and forward-looking. Forward-looking statements may include comments as to the Company’s beliefs and expectations as to future financial performance, events and trends affecting its business and are necessarily subject to uncertainties, many of which are outside the Company’s control. More information on potential factors that could affect the Company’s financial results is included from time to time in the “Forward Looking Statements,” “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s periodic and current filings with the SEC, including the Form 10-K, filed with the SEC and available on the Company’s website at http://investors.premierinc.com. Forward looking statements speak only as of the date they are made. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise that occur after that date.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

99.1	Premier, Inc. Presentation Materials, dated October 6, 2015
99.2	Press Release regarding revised Fiscal 2016 Revenue Guidance, dated October 6, 2015

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Premier, Inc.
By:	/s/ Susan D. DeVore
	Name:	Susan D. DeVore
	Title:	Chief Executive Officer and President

Date: October 6, 2015

EX-99.1

2015 Investor Day and Economic Outlook

Exhibit 99.1

Forward-looking statements—Certain statements included in this presentation, including, but not limited to, those related to our

financial

and

business

outlook,

strategy

and

growth

drivers,

member

retention

and

renewal

rates

and

revenue

visibility,

cross

and

upsell opportunities, acquisition activities, including integration and financial performance expectations of acquired companies,

and our acquisition pipeline, revenue available under contract, financial flexibility, Class B LP Unit exchange process and 2016

financial guidance and related assumptions, are “forward-looking statements” within the meaning of the federal securities laws.

Forward-looking statements may involve known and unknown risks, uncertainties and other factors that may cause the actual

results of Premier to be materially different from historical results or from any future results or projections expressed or implied

by such forward-looking statements. Accordingly, readers should not place undue reliance on any forward looking statements.

Readers are urged to consider statements in the conditional or future tenses or that include terms such as “believes,” “belief,”

“expects,”

“estimates,”

“intends,”

“anticipates”

or

“plans”

to

be

uncertain

and

forward-looking.

Forward-looking

statements

may

include comments as to Premier’s beliefs and expectations as to future events and trends affecting its business and are necessarily

subject to uncertainties, many of which are outside Premier’s control.

More information on potential risks and other factors that

could affect Premier’s financial results is included, and updated, from time to time, in Premier’s periodic and current filings with

the SEC, including Premier’s most recent Form 10-K for the year ended June 30, 2015.

Forward-looking statements speak only as

of the date they are made. Premier undertakes no obligation to publicly update or revise any forward-looking statements.

Non-GAAP financial measures—This presentation includes certain “non-GAAP financial measures” as defined in Regulation G

under the Securities Exchange Act of 1934. Schedules are attached that reconcile the non-GAAP financial measures included in

this presentation to the most directly comparable financial measures calculated and presented in accordance with Generally

Accepted Accounting Principles in the United States. Our Form 10-K for the year ended June 30, 2015 provides further explanation

and disclosure regarding our use of non-GAAP financial measures and should be read in conjunction with this presentation.

Forward-looking statements and Non-GAAP financial measures

Driving long-term sustainable value

Unique member alignment

Positioned to capitalize on compelling industry trends

Integrated framework delivering solutions

Balance sheet strength and financial flexibility

Experienced and tenured management team

Strong historical performance

demonstrates consistent and sustainable

growth

$1,144 –

$1,175

Consolidated Net Revenue*

(in millions)

Consolidated Adjusted EBITDA*

(in millions)

$764

$869

$1,007

$425 -

444

$314

$351

$393

*Comparisons are with non-GAAP pro forma information that reflects the impact of the company’s reorganization and initial public

offering.  See Adjusted EBITDA, Segment Adjusted EBITDA and Adjusted Fully Distributed Net Income reconciliations to GAAP

equivalents in Appendix.

^As of 10/6/15.  Includes estimated contribution from Partnership for Patients government contract.

Strategic intent to diversify

and expand businesses  

54%

19%

27%

FY13

Consolidated Net Revenue Mix*

Strategic diversification 

49%

24%

27%

FY14

Net Admin Fees

Products

Performance Services

45%

28%

27%

FY15

*Comparisons are with non-GAAP pro forma information that reflects the impact of the company’s reorganization and initial public offering.

See Adjusted EBITDA, Segment Adjusted EBITDA and Adjusted Fully Distributed Net Income reconciliations to GAAP equivalents in Appendix.

Diversified and powerful financial model

Multiple growth drivers

Core “chassis” built

Recurring and visible revenue

Cross and up-sell opportunities

Financial flexibility

Unique Member Alignment

Ownership Structure Review

Note: % Ownership as of July 31, 2015

How we keep structural implications simple

•

Given Up-C structure and differences between taxes paid by our Class A unit holder (Premier GP) vs.

distributions to our Class B unit holders (members owners), we calculate Adjusted Fully Distributed Net

Income

*

for comparability purposes

•

Reflects taxes and net income as if the Company was a C-Corp for all periods presented

•

Class A and Class B shares will be used to calculate fully diluted EPS to

eliminate variability due to member exchanges over time

Adjusted fully

distributed net

income

Share count

Structure

•

Structured as “up C” with Premier, Inc. (parent C-Corp above operating partnership and subsidiaries)

•

Premier, Inc. formed with two classes of stock

•

Class A shares held by public investors

•

Class B shares allocated to member owners

•

22% of Limited Partner interests sold to Premier, Inc., 78% retained by member owners as Class B units

•

Class B units eligible to exchange 1/7th per year on quarterly basis, over seven-year period

•

Exchange of Class B Common Units for A-shares (on a 1-for-1 basis) as B-units vest subject to ROFR

by members owners and Premier, Inc.

•

Current ownership is 26% by public shareholders and 74% by member owners

Impact of IPO and

exchange process

*

See Adjusted EBITDA and Adjusted Fully Distributed Net Income reconciliations to GAAP equivalents in Appendix

Quarterly share exchange update

•

October 31, 2015 exchange update

•

6.2 million shares initially indicated

for exchange

•

400,000 shares either retracted

or purchased through right of

first refusal

•

5.8 million shares to be exchanged

•

Secondary offering being evaluated

4.7

5.8

0.3

0.3

0.1

16.0

26.6

11.3

11.0

10.8

PINC Class B to Class A

Quarterly Share Exchange Results

(in millions)

Cumulative Class B Shares Eligible to be Exchanged

Class B Shares Exchanged

Change the game in supply chain:

Uncover unmatched savings and value, and

lead the disruption of the industry

Supply Chain Segment Review

Emerging products businesses and strong net

administrative fee performance driving accelerated growth

$792 –

$813

Supply Chain Services Segment

Net Revenue*

(in millions)

Supply Chain Services Segment

Adjusted EBITDA*

(in millions)

$144

$213

$279

$327

$355

$391

$414

$424

$457

$559

$637

$738

*Comparisons are with non-GAAP pro forma information that reflects the impact of the company’s

reorganization and initial public offering.  See Adjusted EBITDA, Segment Adjusted EBITDA and

Adjusted Fully Distributed Net Income reconciliations to GAAP equivalents in Appendix.

Net Admin Fees

Products

Other Services and Support

<$1

<$1

$2

^

As of 10/6/15

Supply Chain Services

Driving long-term profitable growth

Deliver stable administrative fee growth

Continue to scale product businesses

Leverage supply chain “chassis”

Integrate analytics capabilities

Future investments

Be the data analytics “backbone” with wrap-

around services for cost and quality improvement

over the short-term and population health

management solutions over the long-term

Performance Services Segment Review

Accelerated revenue and profitable growth driven by increasing demand

for expanded product offerings and strategic acquisitions

$352-$362

Performance Services Segment

Net Revenue*

(in millions)

Performance Services Segment

Adjusted EBITDA*

(in millions)

$205

$232

$269

$56

$74

$90

*Comparisons

are

with

non-GAAP

pro

forma

information

that

reflects

the

impact

of

the

company’s

reorganization

and

initial

public

offering.

See

Adjusted

EBITDA,

Segment

Adjusted

EBITDA

and

Adjusted

Fully

Distributed

Net

Income

reconciliations

to

GAAP

equivalents

in

Appendix.

CECity +

Healthcare

Insights

Premier, Inc.

^

As of 10/6/15

Premier

+

CECity

+

Healthcare

Insights

Strategic

and

Attractive

Economics

Healthcare Insights

Strategic Fit

Enables Premier to offer a more complete solution that delivers

additional value by adding financial management solutions to

existing cost and quality applications

Attractive Economics

Accretive in year one with financial contributions accelerating

CECity

Strategic Fit

Extends seamless performance analytics and improvement

platform across the entire ambulatory and acute care spectrum,

creating opportunities for growth and expansion

Attractive Economics

Accretive in year one with financial contributions accelerating

Expected to be accretive to adjusted fully distributed

earnings per share by  $0.02-$0.04 in fiscal 2016 and

$0.08-$0.10 in fiscal 2017

Tax amortization benefit enhances returns in initial years

$30-$35

$60-$70

$7-$9

$22-$27

CECity + HCI Expected Financial Contributions

(in millions)

Revenue Guidance*

Adjusted EBITDA Guidance*

*

As of 10/6/15

Performance Services

Driving long-term profitable growth

Focus in emerging industry areas

Leverage PremierConnect

®

platform

Drive acquisition synergies

Member co-development

Future investments

Significant financial flexibility to support a

disciplined and targeted approach

to invest in the business while seeking out

acquisitions to create value for all stakeholders

Capital Deployment Overview

INTERNAL

Ongoing capital and expense budgets

MEMBER CO-INNOVATION

Use collaboratives

and committees to

identify new opportunities

PARTNERSHIPS

Joint development through partnerships in

technology and population health

INNOVATION INVESTMENTS

Minority investments to foster early stage

innovation and expansion opportunities

ACQUISITION

Acquire expanded capabilities and

R&D functions

Disciplined and targeted approach

Capital

Deployment

Targeted and disciplined acquisition strategy in

areas of provider needs

*Purchased initial 60% ownership in 2011.  Remaining 40% minority interest purchased in February 2015. 

Strategic Need

Company

Clinical & physician preference cost reduction

Closed July 2013

Data acquisition from multiple technologies

Closed October 2013

Health system capital expenditure cost reduction

Closed April 2014

Supply chain technology enablement

Closed August 2014

Quality & safety improvement

Closed

September 2014

Direct sourcing

Closed February 2015*

Integrated financial management, cost analytics

Closed July 2015

Ambulatory performance improvement,

professional education, population health

Closed August 2015

Physician practice operational and

financial performance improvement

Closed October 2015

Ample financial capacity to support further

growth opportunities

$150

$600

~$900

~$1,300

~$2,000

Available Debt

Current Debt

Total Debt Capacity

(in millions)

Significant free cash flow generation provides flexibility to add

incremental leverage for larger and more transformative acquisitions

Attractive

acquisition

pipeline

designed

to

drive

ROI

Diverse and growing end markets to drive Premier’s growth

Supply Chain Services

Performance Services

Alternative

Site Expansion

Supply Chain

analytics and

workflow

Physician preference

item (PPI)

management

Integrated

Pharmacy

Shared services /

standardized care

Ambulatory

clinical integration

Population health

management

Patient

engagement and

social interaction

Data acquisition and 

management

Well Positioned for Continued

Sustainable Growth

Long-term Financial Goals

Significant fiscal 2016 revenue visibility

PERFORMANCE

METRICS

(1)

FY 2016

FY 2015

3

Year Average

Revenue

available under contract

(2)

$1.05B

---

---

GPO

retention rate

(3)

---

99%

97%

SaaS

institutional renewal rate

(4)

---

94%

94%

(1)

As of fiscal year-end June 30, 2015

(2)

Revenue available under contract updated to include revenue visibility from CECity and Healthcare Insights.  Visibility is now $1.05 billion or 91 percent of the midpoint of the company’s

FY16 guidance range.

(3)

The retention rate is calculated based upon the aggregate purchasing volume among all members participating in our GPO for such fiscal year less the annualized GPO purchasing volume

for departed members for such fiscal year, divided by the aggregate purchasing volume among all members participating in our GPO

for such fiscal year.

(4)

The renewal rate is calculated based upon the total number of members that have SaaS revenue in a given period that also have

revenue in the corresponding prior year period divided

by the total number of members that have SaaS revenue in the same period of the prior year.

OVER 90%

FY 2016 REVENUE GUIDANCE

RANGE ALREADY AVAILABLE

UNDER CONTRACT

HIGH GPO

RETENTION

AND SAAS

INSTITUTIONAL

RENEWAL RATES

Premier Member Hospitals

*Expansion of a hospital’s relationship with Premier defined as an increase in participation in one or more offerings.

Hospital Relationship

Expansion*:  FY13 -

FY15

1,900 (52%) member hospitals expanded their

relationship with Premier over the past two years

2,900

3,000

3,600

Driving increase in membership and expansion

of our relationships

+24%

1,900

52%

Member engagement across core capabilities

demonstrates recognition of integrated value

Category

June 2013

June 2015

Cost and Quality/Safety

24%

27%

Any Two

Categories

25%

34%

All Three Categories

2%

10%

Tracking and measuring a static cohort of member hospitals over a three-year period to

understand the change in participation yields a significant up-sell opportunity*

Reduce

Costs

Improve

Quality

and Safety

Population

Health

*Hospitals are counted in a category (reduce cost, improve quality & safety, population health) if they participate in at least one offering in that category (numerator).  

The hospital cohort is based on those hospitals that were Premier members at both 6/30/13 and 6/30/15 (denominator).

Fiscal 2016 annual guidance*

*

Updated October 6, 2015. The Company does not reconcile guidance for adjusted EBITDA and non-GAAP adjusted fully distributed net income per-share to net income (loss) or GAAP earnings per share because the Company does not

provide guidance for reconciling items between net income (loss) and adjusted EBITDA and non-GAAP adjusted fully distributed earnings per share. The Company is unable to provide guidance for these reconciling items since certain items

that impact net income (loss) are outside of the Company’s control and cannot be reasonably predicted. Accordingly, a reconciliation to net income (loss) or GAAP earnings per share is not available without unreasonable effort.

Supply Chain Services growth driven by:

»

Mid-single-digit net administrative fee revenue growth

»

16-19% product revenue growth

»

Continued high GPO retention rates

Guidance Assumptions:

Performance Services growth driven by:

»

Continued demand for integrated offerings of SaaS-based subscription and licensed

products, advisory services and collaboratives

»

Continuation of high SaaS institutional renewal rates

»

$30-35 million revenue and $7-9 million adjusted EBITDA contributions from CECity

and Healthcare Insights acquisitions

»

Contribution from Partnership for Patients government contract

Updated

Previous

(in millions, except per share data)

FY 2016

% YoY Increase

FY 2016

Net Revenue:

Supply Chain Services segment

$792 - $813

7% - 10%

$792 - $813

Performance Services segment

$352 - $362

31% - 35%

$346 - $355

Total Net Revenue

$1,144 - $1,175

14% - 17%

$1,138 - $1,168

Non-GAAP adjusted EBITDA

$425 - $444

8% - 13%

$425 - $444

Non-GAAP adjusted fully distributed EPS

$1.54 - $1.62

8% - 13%

$1.54 - $1.62

Fiscal 2016 Financial Guidance

Premier, Inc. updates full-year fiscal 2016 financial guidance, as follows:

Long-term financial goals

Our path to continued

profitable targeted growth

TARGETED

DOUBLE DIGIT

GROWTH

Invest in our

PEOPLE

Manage

EXPENSES

Innovate

PRODUCTS

Multiple

REVENUE DRIVERS

Financial

FLEXIBILITY

Q & A

Appendix

Fiscal 2013 and fiscal 2014 non-GAAP reconciliations

2014*

2013

2014

2013

Reconciliation of Pro Forma Net Revenue to Net Revenue:

Pro Forma Net Revenue

235,466

$         

200,938

$        

869,286

$       

764,278

$      

Pro forma adjustment for revenue share post-IPO

—

39,663

41,263

105,012

Net Revenue

235,466

$         

240,601

$        

910,549

$       

869,290

$      

Reconciliation of Pro Forma Adjusted EBITDA and Segment Adjusted EBITDA to Net Income and Operating Income:

Net income

66,632

$           

103,496

$        

332,617

$       

375,086

$      

Pro forma adjustment for revenue share post-IPO

—

(39,663)

(41,263)

(105,012)

Interest and investment income, net

(378)

(366)

(1,019)

(965)

Income tax expense

3,248

3,788

27,709

9,726

Depreciation and amortization

9,809

7,883

36,761

27,681

Amortization of purchased intangible assets

904

385

3,062

1,539

Pro Forma EBITDA

80,215

75,523

357,867

308,055

Stock-based compensation

6,358

—

19,476

—

Acquisition related expenses

711

—

2,014

—

Strategic and financial restructuring expenses

146

1,823

3,760

5,170

Adjustment to tax receivable agreement liability

6,215

—

6,215

—

Gain on sale of investment

(522)

—

(38,372)

—

Other (income) expense, net

121

783

65

788

Pro Forma Adjusted EBITDA

93,244

$            

78,129

$           

351,025

$       

314,013

$      

Pro Forma Adjusted EBITDA

93,244

$            

78,129

$           

351,025

$       

314,013

$      

Depreciation and amortization

(9,809)

(7,883)

(36,761)

(27,681)

Amortization of purchased intangible assets

(904)

(385)

(3,062)

(1,539)

Stock-based compensation

(6,358)

—

(19,476)

—

Acquisition related expenses

(711)

—

(2,014)

—

Strategic and financial restructuring expenses

(146)

(1,823)

(3,760)

(5,170)

Adjustment to tax receivable agreement liability

(6,215)

—

(6,215)

—

Equity in net income of unconsolidated affiliates

(4,805)

(3,636)

(16,976)

(11,968)

Deferred compensation plan expense

(1,972)

—

(1,972)

—

62,324

64,402

260,789

267,655

Pro forma adjustment for revenue share post-IPO

—

39,663

41,263

105,012

Operating income

62,324

$         

104,065

$      

302,052

$     

372,667

$    

* Note that no pro forma adjustments were made for the three months ended June 30, 2014; as such, actual results are presented for the

three months ended June 30, 2014.

Three Months Ended

June 30,

Year Ended

June 30,

Supplemental Financial Information - Reporting of Pro Forma Adjusted EBITDA

(Unaudited)

(In thousands)

Reconciliation of Selected Non-GAAP Measures to GAAP Measures

and Non-GAAP Adjusted Fully Distributed Net Income

Fiscal 2013 and fiscal 2014 non-GAAP reconciliations

2014*

2013

2014

2013

Reconciliation of Non-GAAP Adjusted Fully Distributed Net Income:

Non-GAAP Adjusted Fully Distributed Net Income (pro forma):

Net income (loss) attributable to shareholders

8,879

$             

(797)

$              

28,332

$        

7,376

$         

Pro forma adjustment for revenue share post-IPO

—

(39,663)

(41,263)

(105,012)

Income tax expense

3,248

3,788

27,709

9,726

Stock-based compensation

6,358

—

19,476

—

Gain on sale of investment

(522)

—

(38,372)

—

Acquisition related expenses

711

—

2,014

—

Strategic and financial restructuring expenses

146

1,823

3,760

5,170

Adjustment to tax receivable agreement liability

6,215

—

6,215

—

Amortization of purchased intangible assets

904

385

3,062

1,539

Net income attributable to noncontrolling interest in Premier LP

57,281

104,726

303,336

369,189

Non-GAAP adjusted fully distributed income before income taxes

83,220

70,262

314,269

287,988

Income tax expense on fully distributed income before income taxes

33,288

28,105

125,708

115,195

Non-GAAP adjusted fully distributed net income (pro forma)

49,932

$        

42,157

$       

188,561

$    

172,793

$   

* Note that no pro forma adjustments were made for the three months ended June 30, 2014; as such, actual results are presented for

the three months ended June 30, 2014.

Three Months Ended

June 30,

Year Ended

June 30,

Supplemental Financial Information -

Reporting of Pro Forma Adjusted EBITDA

(Unaudited)

(In thousands)

Reconciliation of Selected Non-GAAP Measures to GAAP Measures

and Non-GAAP Adjusted Fully Distributed Net Income

Fiscal 2013 and fiscal 2014 non-GAAP reconciliations

2014*

2013

2014

2013

Reconciliation of numerator for GAAP EPS to Adjusted Fully Distributed EPS

Net income (loss) attributable to shareholders after  adjustment of redeemable

limited partners' capital to redemption amount

491,389

$        

(797)

$            

(2,713,256)

$  

7,376

$            

Adjustment of redeemable limited partners' capital to redemption amount

          (482,510)

                    -  

       2,741,588

                    -  

Net income (loss) attributable to shareholders

                8,879

                (797)

             28,332

               7,376

Pro forma adjustment for revenue share post-IPO

—

(39,663)

(41,263)

(105,012)

Income tax expense

3,248

3,788

27,709

9,726

Stock-based compensation

6,358

—

19,476

—

Gain on sale of investment

(522)

—

(38,372)

—

Acquisition related expenses

711

—

2,014

—

Strategic and financial restructuring expenses

146

1,823

3,760

5,170

Adjustment to tax receivable agreement liability

6,215

—

6,215

—

Amortization of purchased intangible assets

904

385

3,062

1,539

Net income attributable to noncontrolling interest in Premier LP

57,281

104,726

303,336

369,189

Non-GAAP adjusted fully distributed income before income taxes

83,220

70,262

314,269

287,988

Income tax expense on fully distributed income before income taxes

33,288

28,105

125,708

115,195

Non-GAAP adjusted fully distributed net income (pro forma)

49,932

$        

42,157

$      

188,561

$    

172,793

$    

Reconciliation of denominator for GAAP EPS to Adjusted Fully Distributed EPS

Weighted Average:

Common shares used for basic and diluted earnings per share

              32,375

              5,733

             25,633

               5,858

Potentially dilutive shares

                   194

                   -  

                  124

                    -  

Class A common shares outstanding

                      -  

           26,642

               6,742

             26,517

Conversion of Class B common units

            112,511

         112,608

          112,584

          112,608

Weighted average fully distributed shares outstanding - diluted

         145,080

       144,983

        145,083

        144,983

Reconciliation of GAAP EPS to Adjusted Fully Distributed EPS

GAAP income (loss) per share

$            15.18

$           (0.14)

$        (105.85)

$             1.26

Impact of adjustment of redeemable limited partners' capital to redemption amount

$           (14.90)

$                -  

$         106.96

$                 -  

Impact of additions:

Pro forma adjustment for revenue share post-IPO

$                  -  

$           (6.92)

$            (1.61)

$          (17.93)

Income tax expense

$              0.10

$            0.66

$             1.08

$             1.66

Stock-based compensation

$              0.20

$                -  

$             0.76

$                 -  

Gain on sale of investment

$             (0.02)

$                -  

$            (1.50)

$                 -  

Acquisition related expenses

$              0.02

$                -  

$             0.08

$                 -  

Strategic and financial restructuring expenses

$              0.00

$            0.32

$             0.15

$             0.88

Adjustment to tax receivable agreement liability

$              0.19

$                -  

$             0.24

$                 -  

Amortization of purchased intangible assets

$              0.03

$            0.07

$             0.12

$             0.26

Net income attributable to noncontrolling interest in Premier LP

$              1.77

$          18.27

$           11.83

$           63.02

Impact of corporation taxes

$             (1.03)

$           (4.90)

$            (4.90)

$          (19.66)

Impact of increased share count

$             (1.20)

$           (7.06)

$            (6.06)

$          (28.31)

Non-GAAP earnings per share on adjusted fully distributed net income - diluted

$             0.34

$           0.29

$            1.30

$            1.19

* Note that actual results are presented for the three months ended June 30, 2014.

Three Months Ended

June 30,

Year Ended

June 30,

Supplemental Financial Information - Reporting of Net Income and Earnings Per Share

(Unaudited)

(In thousands)

Reconciliation of Selected Non-GAAP Measures to GAAP Measures

Fiscal 2014 and fiscal 2015 non-GAAP reconciliations

2015*

2014*

2015*

2014

Reconciliation of Pro Forma Net Revenue to Net Revenue:

Pro Forma Net Revenue

266,553

$         

235,466

$        

1,007,029

$    

869,286

$      

Pro forma adjustment for revenue share post-IPO

—

—

—

41,263

Net Revenue

266,553

$         

235,466

$        

1,007,029

$    

910,549

$      

Net income

32,061

$            

66,632

$           

234,785

$       

332,617

$      

Pro forma adjustment for revenue share post-IPO

—

—

—

(41,263)

Interest and investment income, net

(349)

(378)

(866)

(1,019)

Income tax expense

24,235

3,248

36,342

27,709

Depreciation and amortization

12,079

9,809

45,186

36,761

Amortization of purchased intangible assets

2,538

904

9,136

3,062

EBITDA

70,564

80,215

324,583

357,867

Stock-based compensation

7,369

6,358

28,498

19,476

Acquisition related expenses

2,629

711

9,037

2,014

Strategic and financial restructuring expenses

92

146

1,373

3,760

(Gain) loss on investment

—

(522)

1,000

(38,372)

Adjustment to tax receivable agreement liability

—

6,215

—

6,215

Acquisition related adjustment - deferred revenue

4,147

—

13,371

—

Loss on disposal of long-lived assets

15,243

15,243

Other expense (income), net

60

121

70

65

Adjusted EBITDA

100,104

$         

93,244

$           

393,175

$       

351,025

$      

Segment Adjusted EBITDA:

Supply Chain Services

100,970

$         

94,394

$           

391,180

$       

396,470

$      

Pro forma adjustment for revenue share post-IPO

—

—

—

(41,263)

Supply Chain Services (including pro forma adjustment)

100,970

$         

94,394

$           

391,180

$       

355,207

$      

Performance Services

22,518

19,531

90,235

73,898

Corporate

(23,384)

(20,681)

(88,240)

(78,080)

Adjusted EBITDA

100,104

$         

93,244

$           

393,175

$       

351,025

$      

Depreciation and amortization

(12,079)

(9,809)

(45,186)

(36,761)

Amortization of purchased intangible assets

(2,538)

(904)

(9,136)

(3,062)

Stock-based compensation

(7,369)

(6,358)

(28,498)

(19,476)

Acquisition related expenses

(2,629)

(711)

(9,037)

(2,014)

Strategic and financial restructuring expenses

(92)

(146)

(1,373)

(3,760)

Adjustment to tax receivable agreement liability

—

(6,215)

—

(6,215)

Acquisition related adjustment - deferred revenue

(4,147)

—

(13,371)

—

Equity in net income of unconsolidated affiliates

(6,473)

(4,805)

(21,285)

(16,976)

Deferred compensation plan expense (income)

544

(1,972)

753

(1,972)

65,321

62,324

266,042

260,789

Pro forma adjustment for revenue share post-IPO

—

—

—

41,263

Operating income

65,321

$         

62,324

$        

266,042

$     

302,052

$    

Equity in net income of unconsolidated affiliates

6,473

4,805

21,285

16,976

Interest and investment income, net

349

378

866

1,019

(Loss) gain on investment

—

522

(1,000)

38,372

Loss on disposal of long-lived assets

(15,243)

—

(15,243)

—

Other (expense) income, net

(604)

1,851

(823)

1,907

Income before income taxes

56,296

$         

69,880

$        

271,127

$     

360,326

$    

* Note that no pro forma adjustments were made for the three months and year ended June 30, 2015 and the three months ended June 30,

2014; as such, actual results are presented for each of these periods.

Three Months Ended

June 30,

Year Ended

June 30,

Supplemental Financial Information - Reporting of Pro Forma Adjusted EBITDA

(Unaudited)

(In thousands)

Reconciliation of Selected Non-GAAP Measures to GAAP Measures

and Non-GAAP Adjusted Fully Distributed Net Income

Reconciliation of Net Income to Adjusted EBITDA and Reconciliation of Segment Adjusted EBITDA to Income Before Income Taxes:

Fiscal 2014 and fiscal 2015 non-GAAP reconciliations

2015*

2014*

2015*

2014

Reconciliation of Non-GAAP Pro Forma Adjusted Fully Distributed Net Income:

Net income attributable to shareholders

7,990

$             

8,879

$            

38,743

$        

28,332

$       

Pro forma adjustment for revenue share post-IPO

—

—

—

(41,263)

Income tax expense

24,235

3,248

36,342

27,709

Stock-based compensation

7,369

6,358

28,498

19,476

Acquisition related expenses

2,629

711

9,037

2,014

Strategic and financial restructuring expenses

92

146

1,373

3,760

(Gain) loss on investment

—

(522)

1,000

(38,372)

Adjustment to tax receivable agreement liability

—

6,215

—

6,215

Acquisition related adjustment -

deferred revenue

4,147

—

13,371

—

Loss on disposal of long-lived assets

15,243

—

15,243

—

Amortization of purchased intangible assets

2,538

904

9,136

3,062

Net income attributable to noncontrolling interest in Premier LP

24,071

57,281

194,206

303,336

Non-GAAP pro forma adjusted fully distributed income before income taxes

88,314

83,220

346,949

314,269

Income tax expense on fully distributed income before income taxes

35,326

33,288

138,780

125,708

Non-GAAP Pro Forma Adjusted Fully Distributed Net Income

52,988

$        

49,932

$       

208,169

$    

188,561

$   

* Note that no pro forma adjustments were made for the three months and year ended June 30, 2015 and the three months ended June

30,

2014; as such, actual results are presented for each of these periods.

Three Months Ended

June 30,

Year Ended

June 30,

Supplemental Financial Information -

Reporting of Pro Forma Adjusted EBITDA

(Unaudited)

(In thousands)

Reconciliation of Selected Non-GAAP Measures to GAAP Measures

and Non-GAAP Adjusted Fully Distributed Net Income

Fiscal 2014 and fiscal 2015 non-GAAP reconciliations

2015

2014

Reconciliation of Non-GAAP Free Cash Flow to Net Cash Provided by Operating Activities:

Net cash provided by operating activities

108,483

$     

79,431

$       

Purchases of property and equipment

(19,670)

(15,898)

$     

Distributions to limited partners

(23,412)

(21,299)

$     

Payments to limited partners under tax receivable agreements

(11,499)

—

$              

Non-GAAP free cash flow

53,902

$       

42,234

$       

Supplemental

Financial

Information

-

Reporting

of

Non-GAAP

Free

Cash

Flow

Reconciliation of Selected Non-GAAP Measures to GAAP Measures

(Unaudited)

(In thousands)

Three Months Ended

June 30,

Fiscal 2014 and fiscal 2015 non-GAAP reconciliations

2015*

2014*

2015*

2014

Reconciliation of numerator for GAAP EPS to Non-GAAP EPS on Net Income Attributable to Stockholders

Net (loss) income attributable to stockholders after adjustment of redeemable

(84,076)

$        

491,389

$      

(865,292)

$     

(2,713,256)

$  

Adjustment of redeemable limited partners' capital to redemption amount

92,066

(482,510)

904,035

2,741,588

Net income attributable to stockholders

7,990

              8,879

38,743

             28,332

Reconciliation of denominator for GAAP EPS to Non-GAAP EPS on Net Income Attributable to Stockholders

Weighted Average:

Common shares used for basic and diluted earnings per share

              37,576

            32,375

             35,681

             25,633

Potentially dilutive shares

                1,592

                 194

               1,048

                  124

Weighted average fully distributed shares outstanding - diluted

             39,168

          32,569

            36,729

            25,757

Reconciliation of GAAP EPS to Non-GAAP EPS on Net Income Attributable to Stockholders

GAAP earnings (loss) per share

$             (2.24)

$          15.18

$          (24.25)

$        (105.85)

Impact of adjustment of redeemable limited partners' capital to redemption amount

$              2.45

$         (14.90)

$           25.34

$         106.96

Impact of potentially dilutive shares

$             (0.01)

$           (0.01)

$            (0.04)

$            (0.01)

Non-GAAP earnings per share on net income attributable to stockholders - diluted

$             0.20

$           0.27

$            1.05

$            1.10

Reconciliation of numerator for GAAP EPS to Non-GAAP EPS on Adjusted Fully Distributed Net Income

Net (loss) income attributable to shareholders after adjustment of redeemable

limited partners' capital to redemption amount

(84,076)

$        

491,389

$      

(865,292)

$     

(2,713,256)

$  

Adjustment of redeemable limited partners' capital to redemption amount

92,066

(482,510)

904,035

2,741,588

Net income attributable to shareholders

7,990

              8,879

38,743

             28,332

Pro forma adjustment for revenue share post-IPO

—

—

—

(41,263)

Income tax expense

24,235

3,248

36,342

27,709

Stock-based compensation

7,369

6,358

28,498

19,476

Acquisition related expenses

2,629

711

9,037

2,014

Strategic and financial restructuring expenses

92

146

1,373

3,760

(Gain) loss on investment

—

(522)

1,000

(38,372)

Adjustment to tax receivable agreement liability

—

6,215

—

6,215

Acquisition related adjustment - deferred revenue

4,147

—

13,371

—

Loss on disposal of long-lived assets

15,243

—

15,243

—

Amortization of purchased intangible assets

2,538

904

9,136

3,062

Net income attributable to noncontrolling interest in Premier LP

24,071

57,281

194,206

303,336

Non-GAAP pro forma adjusted fully distributed income before income taxes

88,314

83,220

346,949

314,269

Income tax expense on fully distributed income before income taxes

35,326

33,288

138,780

125,708

Non-GAAP pro forma adjusted fully distributed net income

52,988

$        

49,932

$      

208,169

$    

188,561

$    

* Note that no pro forma adjustments were made for the three months and year ended June 30, 2015 and the three months ended June 30, 2014; as

such, actual results are presented for each of these periods.

Three Months Ended

June 30,

Year Ended

June 30,

Supplemental Financial Information - Reporting of Net Income and Earnings Per Share

(Unaudited)

(In thousands, except per share data)

Reconciliation of Selected Non-GAAP Measures to GAAP Measures

Fiscal 2014 and fiscal 2015 non-GAAP reconciliations

2015*

2014*

2015*

2014

Reconciliation of denominator for GAAP EPS to Non-GAAP Adjusted Fully Distributed Net Income

Weighted Average:

Common shares used for basic and diluted earnings per share

37,576

32,375

35,681

25,633

Potentially dilutive shares

1,592

194

1,048

124

Class A common shares outstanding

-

-

-

6,742

Conversion of Class B common units

106,471

112,511

108,518

112,584

Weighted average fully distributed shares outstanding -

diluted

145,639

145,080

145,247

145,083

Reconciliation of GAAP EPS to Adjusted Fully Distributed EPS

GAAP earnings (loss) per share

$              (2.24)

$          15.18

$          (24.25)

$        (105.85)

Impact of adjustment of redeemable limited partners' capital to redemption amount

$              2.45

$         (14.90)

$            25.34

$         106.96

Impact of additions:

Pro forma adjustment for revenue share post-IPO

$                   -

$                -

$                  -

$            (1.61)

Income tax expense

$               0.64

$             0.10

$              1.02

$              1.08

Stock-based compensation

$               0.20

$             0.20

$              0.80

$              0.76

Acquisition related expenses

$               0.07

$             0.02

$              0.25

$              0.08

Strategic and financial restructuring expenses

$               0.00

$             0.00

$              0.04

$              0.15

(Gain) loss on investment

$                   -

$           (0.02)

$              0.03

$             (1.50)

Adjustment to tax receivable agreement liability

$                   -

$            0.19

$                  -

$             0.24

Acquisition related adjustment -

deferred revenue

$               0.11

$                 -

$              0.37

$                  -

Loss on disposal of long-lived assets

$              0.41

$                 -

$              0.43

$                  -

Amortization of purchased intangible assets

$              0.07

$             0.03

$              0.26

$              0.12

Net income attributable to noncontrolling interest in Premier LP

$              0.64

$             1.77

$              5.44

$            11.83

Impact of corporation taxes

$              (0.94)

$            (1.03)

$             (3.90)

$             (4.90)

Impact of increased share count

$              (1.05)

$            (1.20)

$             (4.40)

$             (6.06)

Non-GAAP earnings per share on adjusted fully distributed net income -

diluted

$              0.36

$             0.34

$              1.43

$              1.30

* Note that no pro forma adjustments were made for the three months and year ended June 30, 2015 and the three months ended June

30, 2014; as

such, actual results are presented for each of these periods.

Three Months Ended

June 30,

Year Ended

June 30,

Supplemental Financial Information -

Reporting of Net Income and Earnings Per Share

(Unaudited)

(In thousands, except per share data)

Reconciliation of Selected Non-GAAP Measures to GAAP Measures

EX-99.2

Exhibit 99.2

FOR IMMEDIATE RELEASE

Premier, Inc. raises fiscal 2016 revenue guidance

Increase a result of government contract awarded for participation in Partnership for Patients initiative

CHARLOTTE, NC, October 6, 2015 – Premier, Inc. (NASDAQ: PINC), a leading healthcare improvement company, today increased its revenue guidance for its fiscal year ending June 30, 2016.

As previously disclosed, the Centers for Medicare & Medicaid Services (CMS) awarded Premier a contract to participate as a Hospital Engagement Network in the second round of CMS’ Partnership for Patients initiative. The one-year, $9.3 million contract began September 24, 2015, and is expected to contribute approximately $7.0 million in revenue to Premier’s fiscal 2016 financial results. The company stated at the time of the announcement that it would update guidance accordingly during its Investor Day on October 6, 2015. The increase in guidance specifically impacts Performance Services segment revenue.

Fiscal 2016 Financial Guidance⁽¹⁾

Premier, Inc. updates full-year fiscal 2016 financial guidance, as follows:

(in millions, except per share data)	Updated FY 2016	% YoY Increase	Previous FY 2016
Net Revenue:
Supply Chain Services segment	$792.0 - $813.0	7% - 10%	$792.0 -$813.0
Performance Services segment	$352.0 - $362.0	31% - 35%	$346.0 - $355.0
Total Net Revenue	$1,144.0 - $1,175.0	14% - 17%	$1,138.0 - $1,168.0
Non-GAAP adjusted EBITDA	$425.0 - $444.0	8% - 13%	$425.0 - $444.0
Non-GAAP adjusted fully distributed EPS	$1.54 - $1.62	8% - 13%	$1.54 - $1.62

(1) Updated October 6, 2015. Premier does not reconcile guidance for adjusted EBITDA and non-GAAP adjusted fully distributed net income per-share to net income (loss) or GAAP earnings per share because the company does not provide guidance for reconciling items between net income (loss) and adjusted EBITDA and non-GAAP adjusted fully distributed earnings per share. The company is unable to provide guidance for these reconciling items since certain items that impact net income (loss) are outside of the company’s control and cannot be reasonably predicted. Accordingly, a reconciliation to net income (loss) or GAAP earnings per share is not available without unreasonable effort.

Premier’s revised guidance assumptions include the financial and operational contributions from the CMS contract. Consistent with Premier’s initial guidance provided on August 24, 2015, financial guidance for the fiscal year is also based on the following key assumptions: stable growth in the Supply Chain Services segment through the continued, but more normalized growth of the company’s direct sourcing and specialty pharmacy businesses, the addition and contract conversion ramp-up of new GPO members, and deeper penetration of existing members’ supply spend; increased product and services sales in the Performance Services segment, including sales and use of SaaS-based products, increased member participation in performance improvement collaboratives and increased demand for advisory services; and the continuation of historically high retention and renewal rates of Premier’s GPO and SaaS members.

Guidance assumptions also include the integration and realization of anticipated financial and operational contributions from acquisitions announced in August and October 2015, but do not

Premier, Inc. raises fiscal 2016 revenue guidance

Page 2 of 3

contemplate the impact of any potential future acquisitions. Guidance also assumes performance consistent with the company’s current visibility into its annual revenue stream.

The statements in this “Outlook and Guidance” discussion are “forward-looking statements.” For additional information regarding the use and limitations of such statements, see “Forward-Looking Statements” below and the “Risk Factors” section of the company’s Form 10-K for the year ended June 30, 2015.

About Premier, Inc.

Premier, Inc. (NASDAQ: PINC) is a leading healthcare improvement company, uniting an alliance of approximately 3,600 U.S. hospitals and 120,000 other providers to transform healthcare. With integrated data and analytics, collaboratives, supply chain solutions, and advisory and other services, Premier enables better care and outcomes at a lower cost. Premier, a Malcolm Baldrige National Quality Award recipient, plays a critical role in the rapidly evolving healthcare industry, collaborating with members to co-develop long-term innovations that reinvent and improve the way care is delivered to patients nationwide. Headquartered in Charlotte, N.C., Premier is passionate about transforming American healthcare. Please visit Premier’s news and investor sites on www.premierinc.com; as well as Twitter, Facebook, LinkedIn, YouTube, Instagram, Foursquare and Premier’s blog for more information about the company.

Forward looking statements and non-GAAP financial measures

Matters discussed in this release that are not statements of historical or current facts, such as the expected contributions from the CMS contract, the 2016 financial guidance and each of the assumptions underlying such guidance, as set forth above, are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Premier to be materially different from historical results or from any future results or projections expressed or implied by such forward-looking statements. Accordingly, readers should not place undue reliance on any forward looking statements. In addition to statements that explicitly describe such risks and uncertainties, readers are urged to consider statements in the conditional or future tenses or that include terms such as “believes,” “belief,” “expects,” “estimates,” “intends,” “anticipates” or “plans” to be uncertain and forward-looking. Forward-looking statements may include comments as to Premier’s beliefs and expectations as to future events and trends affecting its business and are necessarily subject to uncertainties, many of which are outside Premier’s control. More information on potential factors that could affect Premier’s financial results is included from time to time in the “Forward Looking Statements,” “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of Premier’s periodic and current filings with the SEC and available on Premier’s website at investors.premierinc.com. Forward looking statements speak only as of the date they are made. Premier undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise that occur after that date. Adjusted EBITDA and adjusted fully distributed EPS are “non-GAAP financial measures” as defined in Regulation G under the Securities Exchange Act of 1934. Premier’s Form 10-K for the year ended June 30, 2015 provides an explanation and disclosure regarding our use of Adjusted EBITDA and adjusted fully distributed EPS and should be read in conjunction with this release. Premier does not reconcile guidance for adjusted EBITDA and adjusted fully distributed EPS because it does not provide guidance for reconciling items between net income (loss) and adjusted EBITDA. Premier is unable to provide guidance for these reconciling items since certain items that impact net income (loss) are outside

Premier, Inc. raises fiscal 2016 revenue guidance

Page 3 of 3

of Premier’s control and cannot be reasonably predicted. Accordingly, a reconciliation to net income (loss) or GAAP earnings per share is not available without unreasonable effort.

Contacts

Media:

Amanda Forster, Premier, Inc., amanda_forster@premierinc.com, 202.897.8004

Morgan Guthrie, Premier, Inc., morgan_guthrie@premierinc.com, 704.816.4152

Investors:

Jim Storey, Premier, Inc., jim_storey@premierinc.com, 704.816.5958