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SEGMENTS (Tables)
3 Months Ended
Sep. 30, 2024
Segment Reporting [Abstract]  
Schedule of Segment Information
The following table presents disaggregated revenue by business segment and underlying source (in thousands):
Three Months Ended September 30,
20242023
Net revenue:
Supply Chain Services
Net administrative fees$132,625 $149,886 
Software licenses, other services and support18,763 13,390 
Total Supply Chain Services (a)
151,388 163,276 
Performance Services
Software licenses, other services and support
SaaS-based products subscriptions38,911 45,340 
Consulting services19,689 23,768 
Software licenses20,947 14,738 
Other (b)
17,207 21,904 
Total Performance Services (a)
96,754 105,750 
Net revenue$248,142 $269,026 
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(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 and certain revenue from PINC AI.
Additional segment information related to depreciation and amortization expense, capital expenditures and total assets was as follows (in thousands):
Three Months Ended September 30,
20242023
Depreciation and amortization expense (a):
Supply Chain Services$15,577 $14,893 
Performance Services12,223 15,887 
Corporate1,488 2,101 
Total depreciation and amortization expense$29,288 $32,881 
Capital expenditures:
Supply Chain Services$7,335 $12,237 
Performance Services10,326 8,118 
Corporate57 915 
Total capital expenditures$17,718 $21,270 
September 30, 2024June 30, 2024
Total assets (b):
Supply Chain Services $1,543,392 $1,629,042 
Performance Services1,021,640 986,993 
Corporate748,561 785,408 
Total assets before eliminations
3,313,593 3,401,443 
Eliminations (c)
Total assets
$3,313,598 $3,401,449 
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(a)Includes amortization of purchased intangible assets.
(b)As of September 30, 2024 and June 30, 2024, Supply Chain Services total assets included $104.9 million and $116.5 million, respectively, in assets of discontinued operations related to S2S Global.
(c)Includes eliminations of intersegment transactions which occur during the ordinary course of business.
Schedule of Reconciliation of (loss) 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 September 30,
20242023
Income before income taxes
$95,651 $55,500 
Equity in net (income) loss of unconsolidated affiliates (a)
(1,833)1,726 
Interest expense, net1,756 22 
Other (income) expense, net(60,259)1,092 
Operating income
35,315 58,340 
Depreciation and amortization19,651 20,328 
Amortization of purchased intangible assets9,637 12,553 
Stock-based compensation (b)
7,140 6,893 
Acquisition- and disposition-related expenses2,884 6,205 
Strategic initiative and financial restructuring-related expenses110 1,746 
Operating income from revenues sold to OMNIA(15,710)(11,666)
Deferred compensation plan expense (income) (c)
2,692 (1,125)
Other reconciling items, net709 34 
Total Non-GAAP Adjusted EBITDA (d)
$62,428 $93,308 
Non-GAAP Adjusted EBITDA (d):
Supply Chain Services (e)
$77,511 $101,387 
Performance Services (e)
14,949 22,930 
Segment Adjusted EBITDA
92,460 124,317 
Corporate(30,032)(31,009)
Total Non-GAAP Adjusted EBITDA
$62,428 $93,308 
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(a)Refer to Note 4 - Investments for more information.
(b)Includes non-cash employee stock-based compensation expense and stock purchase plan expense of $0.2 million for both the three months ended September 30, 2024 and 2023.
(c)Represents changes in deferred compensation plan obligations resulting from realized and unrealized gains and losses and dividend income on deferred compensation plan assets.
(d)The definition for Non-GAAP Adjusted EBITDA was revised from the definition reported in the 2024 Annual Report to exclude the operating income from revenues sold to OMNIA in connection with the sale of non-healthcare GPO member contracts, less royalty fees retained. For comparability purposes, prior year Non-GAAP financial measures are presented based on the current definition.
(e)Includes intersegment revenue which is eliminated in consolidation.