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INVESTMENTS
12 Months Ended
Jun. 30, 2023
Equity Method Investments and Joint Ventures [Abstract]  
INVESTMENTS
(4) INVESTMENTS
Investments in Unconsolidated Affiliates
The Company’s investments in unconsolidated affiliates consisted of the following (in thousands):
Carrying ValueEquity in Net Income
June 30,Year Ended June 30,
20232022202320222021
FFF$136,080 $137,162 $8,571 $16,614 $11,344 
Exela32,905 27,733 5,172 1,733 — 
Qventus16,000 16,000 — — — 
Prestige15,503 15,597 921 4,303 8,856 
Other investments31,338 19,053 1,404 855 873 
Total investments$231,826 $215,545 $16,068 $23,505 $21,073 
The Company, through its indirect, wholly owned subsidiary Premier Supply Chain Improvement, Inc. (“PSCI”), held a 49% interest in FFF Enterprises, Inc. (“FFF”) through its ownership of stock of FFF at June 30, 2023 and 2022. The Company accounts for its investment in FFF as part of the Supply Chain Services segment.
On March 3, 2023, the Company and the majority shareholder of FFF amended the FFF shareholders’ agreement and in lieu of a distribution, the Company received an increase of $24.8 million to its liquidation preferences on the Class B common stock in FFF, bringing the Company’s total liquidation preference in FFF to $32.3 million. In the event of liquidation or dissolution of FFF, the Company will receive the liquidation preference of $32.3 million prior to any pro rata distribution of FFF’s proportional equity value between the Company and the majority shareholder of FFF. As a result of the increase to the liquidation preference and priority of the Company’s Class B common stock in FFF in the event of liquidation or dissolution of FFF, the Company will no longer account for its investment in FFF using the equity method of accounting. As of the date of the amendment, the Company will account for its investment in FFF at cost less impairments, if any, plus or minus any observable changes in fair value.
The Company, through its consolidated subsidiary, ExPre Holdings, LLC (“ExPre”), held an approximate 6% interest in Exela Holdings, Inc. (“Exela”) through its ownership of Exela Class A common stock at June 30, 2023. At June 30, 2023, the Company owned approximately 15% of the membership interest of ExPre, with the remainder of the membership interests held by 11 member health systems or their affiliates.
The Company, through its consolidated subsidiary, PRAM Holdings, LLC (“PRAM”), held an approximate 20% interest in Prestige Ameritech Ltd. (“Prestige”) through its ownership of Prestige limited partnership units at June 30, 2023. At June 30,
2023, the Company owned approximately 26% of the membership interest of PRAM, with the remainder of the membership interests held by 16 member health systems.
The Company accounts for its investments in Exela and Prestige using the equity method of accounting and includes the investment as part of the Supply Chain Services segment.
On January 31, 2022, the Company, through PHSI, purchased an approximate 7% interest in Qventus, Inc. (“Qventus”) through its ownership of Qventus Series C preferred stock. The Company accounts for its investment in Qventus at initial cost less impairments, if any, plus or minus any observable changes in fair value. The Company includes Qventus as part of the Performance Services segment.
Unconsolidated Significant Subsidiaries
In accordance with Rules 3-09 and 4-08(g) of Regulation S-X, the Company must determine which of its unconsolidated investments, if any, are considered “significant subsidiaries.” In evaluating these investments, there are three tests utilized to determine if any unconsolidated subsidiaries are considered significant subsidiaries: the investment test, the asset test and the income test. Rule 3-09 of Regulation S-X requires the Company to include separate audited financial statements of any unconsolidated majority-owned subsidiary (unconsolidated subsidiaries in which the Company owns greater than 50% of the voting securities) in an annual report if any of the three tests exceed 20%. Rule 4-08(g) of Regulation S-X requires summarized financial information of unconsolidated subsidiaries in an annual report if any of the three tests exceeds 10%, and summarized financial information in a quarterly report if any of the three tests exceeds 20% pursuant to Rule 10-01(b)(1) of Regulation S-X.
As of June 30, 2022 and 2021, the Company held one unconsolidated investment whose assets represented greater than 10% of its total assets.
The following table shows summarized unaudited financial information for FFF, which met the 10% asset test for the year ended June 30, 2022 (in thousands):
June 30,
2022
Total current assets$841,555 
Total non-current assets103,298 
Total current liabilities463,863 
Total non-current liabilities325,693 
Non-controlling equity76,096 
The following table shows summarized unaudited results of operations information for FFF, which met the 10% asset test for the years ended June 30, 2022 and 2021 (in thousands):
Year Ended June 30,
20222021
Revenue$2,728,855 $2,047,494 
Gross profit150,980 122,890 
Income from operations55,379 41,643 
Net income33,215 23,841 
Net income attributable to non-controlling interest16,275 11,682