Transforming Healthcare from the Inside. Investor Information November 2016

Transcription

1 Transforming Healthcare from the Inside Investor Information November 2016

2 Forward-looking statements and Non-GAAP financial measures 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 and pipeline, revenue available under contract, 2017 financial guidance and related assumptions, and target growth rate 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. You should carefully read Premier s current and future filings with the SEC for more information on potential risks and other factors that could affect Premier s financial results. 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 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. You should carefully read Premier s current and future filings with the SEC for definitions and further explanation and disclosure regarding our use of non-gaap financial measures and such filings should be read in conjunction with this presentation. 2

3 Why Invest: We believe the following differentiate Premier: 1 Unique customer alignment Well-positioned to capitalize on industry trends An integrated platform to deliver solutions that span the entire continuum of care Compelling financial model 5 Experienced and tenured management team 3

4 Premier is a healthcare performance improvement company REDUCE Costs ~$15.0 billion saved [1] IMPROVE Quality and Care ~176k deaths avoided [1] LEAD Health Systems to Value-Base Care Best in KLAS 2015/2016 [2] [1] Cumulative seven-year data from Premier performance improvement collaborative of approximately 350 U.S. hospitals as of fiscal year ended June 30, [2] Premier ranked #1 by KLAS in Value-Based Care Advisory Services for 2015/

5 Significant footprint and scale COMMUNITY HOSPITALS 76%U.S. MORE THAN $48 BILLION IN SUPPLY CHAIN SPEND OVER 130,000 OTHER PROVIDER ORGANIZATIONS 40% HOSPITAL DISCHARGES NATIONWIDE ANALYZE DATA ~2,200 CONTRACTS ~1,200 SUPPLIERS 5

6 Unique member model drives innovation and growth SCALE Alliance of ~3,750 hospitals 76% of U.S. community hospitals andmore than 130,000 other provider organizations Integrated clinical, financial, operational data insights into ~40% of U.S. health system discharges More than $48 billion in supply chain spend Manage ~2,200 contracts from ~1,200 suppliers ALIGNMENT Members own ~64% of equity 10 health system board members Premier field force embedded in member hospitals COMMITMENT Member owner average tenure ~17 years (82% at 10+ years) Members view Premier as strategic partner CO INNOVATION Co develop solutions with members Committees composed of ~165 member hospitals ~1,300 hospitals in performance improvement collaboratives Note: Data as of fiscal year end June 30, 2016, except member ownership, which is as of October 31, 2016, and member owner average tenure, which is as of September 30,

7 Premier delivers a comprehensive solution Supply Chain Services 71% of FY16 Consolidated Net Revenue Performance Services 29% of FY16 Consolidated Net Revenue Group Purchasing Direct Sourcing Specialty Pharmacy SaaS-based Informatics Products Advisory Services Performance Improvement Collaboratives 7

8 Solutions-based go to market approach Premier, Inc. Segment Reporting Supply Chain Services Performance Services Go to Market Cost reduction Integrated pharmacy Population health Powered by: PremierConnect 8

9 Our financial model has delivered strong and consistent historical financial results Free cash flow generation Multiple growth drivers Recurring and visible revenue Consolidated Net Revenue (in millions) $764 $869 $1,007 $1,163 [1] [1] FY13 FY14 FY15 FY16 Strong balance sheet Core chassis built High customer retention rates Consolidated Non GAAP Adjusted EBITDA [1] (in millions) $314 $351 $393 $441 [1] [1] FY13 FY14 FY15 FY16 [1] For periods prior to October 1, 2013, comparisons are with non-gaap pro forma information that reflects the impact of the company s 2013 reorganization and initial public offering. See non- GAAP reconciliations to GAAP equivalents in Appendix. 9

10 Key Accomplishments Since IPO Delivered annual double-digit growth and strong free cash flow Achieved 3-year average 98% retention rates in GPO business and 93% SaaS institutional renewal rates Acquired and integrated eight companies; ninth acquisition completed and in process of being integrated [1] Earned recognition as the industry leader in value-based care advisory services [2] Developed deeper, more meaningful relationships with a larger percentage of our members [1] On August 23, 2016, we closed our acquisition of Acro Pharmaceutical Services LLC and Community Pharmacy Services, LLC. [2] Premier was recognized as having the best overall performance in providing value-based care consulting services to support population health management in the 2015/2016 Best in KLAS: Software & Services report. 10

11 Why we win: Key Differentiators SCALE and ALIGNMENT Strategic PARTNER changing healthcare from the inside DATA-enabled insights across the continuum of care Proven RESULTS Our PEOPLE 11

12 ~$250 MILLION IN COST OF CARE SAVINGS* ~$50 MILLION DECREASES IN MORTALITY AND READMISSIONS IN SUPPLY CHAIN SAVINGS ALONE [1] thanks to an integrated effort led by our consulting team. A GRADES in national patient safety ratings at all five hospitals [1] Since May

13 Challenges facing our industry are leading to a wide-ranging set of demands Population health MACRA Healthcare information technology Cost reduction/ drug pricing Evolving payment models Volume to Value Track 1: Value-based payments Track 2: Alternative payment models [1] % of all Medicare payments 90% of all Medicare payments 30% of all Medicare payments 50% of all Medicare payments [1] ACOs, bundled payments, medical homes, CPCI, comprehensive ESDR, Medicare-Medicaid Financial Alignment Initiative FFS Model 13

14 Strategic priorities to drive long-term sustainable growth 1 Drive consistent returns in Supply Chain Services segment 2 3 Expand opportunities in Performance Services segment Leverage long-standing relationships to cross-sell offerings into a well-established member base 4 Capitalize on co-development engine with our members 5 Make strategic acquisitions that promote long-term stockholder value and address the needs of our members 14

15 Drive consistent growth in SUPPLY CHAIN SERVICES segment Change the game in supply chain, uncover savings and value, and lead the disruption of the industry Deliver stable administrative fee growth Leverage the supply chain chassis Integrate analytics capabilities Continue to scale product businesses Supply Chain Services Segment Net Revenue (in millions) $559 $637 $738 $829 [1] [1] FY13 FY14 FY15 FY16 Supply Chain Services Segment Non GAAP Adjusted EBITDA [1] (in millions) [1] For periods prior to October 1, 2103,comparisons are with non-gaap pro forma information that reflects the impact of the company s 2013 reorganization and initial public offering. See non-gaap reconciliations to GAAP equivalents in Appendix. $327 $355 $391 $439 FY13 FY14 FY15 FY16 [1] [1] 15

16 Expand opportunities in PERFORMANCE SERVICES segment Become the data analytics backbone with wraparound services for cost and quality improvement over the short-term and population health management solutions over the long-term Member co-development Focus in emerging areas Drive acquisition synergies Performance Services Segment Net Revenue (in millions) $205 $232 $269 $333 FY13 FY14 FY15 FY16 Performance Services Segment Non GAAP Adjusted EBITDA [1] (in millions) Leverage PremierConnect Platform $56 $74 $90 $111 [1] See non-gaap reconciliations to GAAP equivalents in Appendix. FY13 FY14 FY15 FY16 16

17 Leverage long-standing relationships to CROSS-SELL offerings into a well-established member base Reduce Costs Premier Product Offering Penetration within Existing Member Base [1] 21% 24% 30% 32% 24% 26% 8% 9% 13% Improve Quality and Safety Manage Population Health June 14 June 15 June 16 Cost and Quality/Safety Any Two Categories All Three Categories [1] 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 6/30/14, 6/30/15 and 6/30/16 (denominator). 17

18 Leverage member co-development engine to make strategic ACQUISITIONS that meet their needs and promote long-term stockholder value [1] Clinical & physician preference cost reduction Data acquisition from multiple technologies Health system capital expenditure cost reduction Supply chain technology enablement Quality & safety improvement Direct sourcing Integrated financial management, cost analytics Ambulatory performance improvement, professional education, population health Physician practice operational and financial performance improvement Specialty pharmacy JUL OCT [2] APR AUG SEPT FEB JUL AUG OCT AUG [1] Purchased initial 60% ownership in Remaining 40% purchased in February [2] Premier, Inc. initial public offering in October

19 Acquisition strategy designed to drive ROI and long-term stockholder growth Supply Chain Services Performance Services Physician preference item (PPI) management Alternate site expansion Population health management Shared services / standardized care Integrated pharmacy Supply chain analytics and workflow Patient engagement and social interaction Data acquisition and management Ambulatory clinical integration 19

20 Financial Overview

21 Ownership Structure: Majority-owned by member health systems Premier, Inc. formed in 2013 with two classes of stock: Class A shares held by public investors Class B shares held by member owners Class B units eligible to exchange 1/7th per year on quarterly basis, over seven-year period Member owners currently own ~64% of equity [1] Quarterly Share Exchange Results (in millions) Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16 [1] As of October 31, Class B Units Exchanged for Class A Shares Class B Units Settled for Cash Cumulative Class B Units Eligible to be Exchanged 21

22 Our model at a glance Business Supply Chain Services Administrative fees Products Performance Services SaaS-based informatics products Advisory services Consolidated Revenue Model Supplier paid administrative fees Drug reimbursement and contract manufactured product sales SaaS-based subscriptions Fee-for-service and service subscriptions Significant revenue visibility High retention and renewal rates 22

23 Significant fiscal 2017 revenue visibility HIGH GPO RETENTION AND SAAS INSTITUTIONAL RENEWAL RATES 86% - 90% OF FY 2017 REVENUE GUIDANCE RANGE ALREADY AVAILABLE UNDER CONTRACT PERFORMANCE METRICS FY 2017 FY 2016 [1] 3 Year Average [1] Revenue available under contract [2] ~$1.3B GPO retention rate [3] % 98% SaaS institutional renewal rate [4] % 93% [1] As of fiscal year-end June 30, [2] Revenue available under contract updated to include revenue visibility from Acro Pharmaceutical Services. As of August 22, 2016, approximately $1.3 billion represents percent of the company s fiscal 2017 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. 23

24 Diversified model driving consistent double-digit growth $764 $205 Consolidated Net Revenue (in millions) $869 $232 $1,007 $269 Consolidated Non-GAAP Adjusted EBITDA [1] (in millions) $1,163 $441 $393 $351 $111 $333 $314 $90 $74 $56 $327 $355 $391 $439 $559 $637 $738 $829 ($69) ($78) ($88) ($109) [1] [1] FY13 FY14 FY15 FY16 Supply Chain Services Performance Services [1] For periods prior to October 1, 2013, comparisons are with non-gaap pro forma information that reflects the impact of the company s 2013 reorganization and initial public offering. See non-gaap reconciliations to GAAP equivalents in Appendix. [1] FY13 [1] FY14 FY15 FY16 Supply Chain Services Performance Services Corporate 24

25 Well-positioned in fiscal 2017; targeting double-digit growth FISCAL 2017 FINANCIAL GUIDANCE [1] (in millions, except per share data) FY 2017 YoY Increase Net revenue: Supply Chain Services $1,096 - $1,140 32% - 37% Performance Services $355 - $375 7% - 13% Total Net Revenue $1,451 - $1,515 25% - 30% Non-GAAP adjusted EBITDA $475 - $500 8% - 13% Non-GAAP adjusted fully distributed EPS $ $1.87 9% - 16% [1] Updated November 7, 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. 25

26 Fiscal 2017 annual guidance assumptions Key Assumptions Supply Chain Services assumptions:» Mid-single-digit net administrative fee revenue growth» Continued high GPO retention rates» Includes $ million revenue impact from the acquisition of Acro» 15-20% products revenue growth; excluding Acro Performance Services assumptions:» Continued demand for integrated offerings of SaaS-based subscription and licensed products, advisory services and collaboratives» Continuation of high SaaS institutional renewal rates» Contributions from integrated acquisitions made in fiscal

27 Maintain balance sheet strength and financial flexibility Cash, cash equivalents and short- and long-term marketable securities of $156.0 million at September 30, 2016 At September 30, 2016, there was no outstanding balance on the company s unsecured $750 million, five-year revolving credit facility; $50 million borrowed November 1, 2016 Fiscal 2016 cash flow from operations of $371.5 million and non-gaap free cash flow [1] of $191.0 million CONSIDERABLE CASH AND DEBT CAPACITY AVAILABLE AMPLE CAPITAL FLEXIBILITY FOR FUTURE ACQUISITIONS AND BUSINESS GROWTH [1] Company defines free cash flow as cash provided by operating activities less distributions to limited partners and purchases of property and equipment. See non-gaap reconciliations to GAAP equivalents in Appendix. 27

28 Ample financial capacity to support further growth opportunities Minimal financial leverage Total Debt Capacity (in millions) Non-GAAP free cash flow [1] expected to be in the range of 40% of non-gaap adjusted EBITDA* in fiscal 2017 Significant free cash flow generation provides flexibility to add incremental leverage for larger and more transformative potential acquisitions $750 Debt Capacity at 6/30/16 $1,000 Debt Capacity at 2x Adj. EBITDA $1,500 Debt Capacity at 3x Adj. EBITDA $2,000 Debt Capacity at 4x Adj. EBITDA [1] Company defines free cash flow as cash provided by operating activities less distributions to limited partners and purchases of property and equipment. See non-gaap reconciliations to GAAP equivalents in Appendix. Approximate Debt 28

29 Disciplined approach to M&A Strategic Fit Alignment to member needs and strategic objectives Innovation Market impact Financial Assessment ROIC Payback period Revenue diversification Member benefit Execution and Culture Cultural synergies Complexity Policy and compliance Rigorous due diligence process 29

30 Appendix

31 Our leadership team Susan Devore, President and CEO 13 years Premier, 27 year healthcare Cap Gemini Ernst & Young Craig McKasson, Chief Financial Officer 19 years Premier, 23 years healthcare Ernst & Young Leigh Anderson, SVP and Chief Information Officer 3 years Premier, 20 years healthcare informatics Hospital Corporation of America, HealthTrust, GHX David Klatsky, SVP and General Counsel 9 years as Premier s chief outside counsel, 26 years Healthcare focus; McDermott Will & Emery Andy Brailo, SVP, Member Field Services 15 years Premier, 23 years healthcare Medibuy, Bard Gary S. Long, Chief Sales Officer 3 years Premier, 22 years healthcare McKesson LeAnne Hester, SVP, Marketing 19 years healthcare Leidos Health, Sg2, Ontario Systems, The Advisory Board Company Note: Experience as of November 1, Mike Alkire, Chief Operating Officer 11 years Premier, 12 years healthcare Cap Gemini Ernst & Young Durral Gilbert, President, Supply Chain Services 10 years Premier, 10 years healthcare BDS Management, Wachovia Securities Kelly Rakowski, SVP, Performance Partners 20 years healthcare Cap Gemini Ernst & Young, Accenture, Xerox, GE Healthcare David Vorhoff, SVP, Corporate Development 30 years investment banking, 20 years healthcare focus; Deloitte Corporate Finance, McColl Partners, Banc of America Securities Kelli Price, SVP, People 15 years Premier, 17 years healthcare Malcolm Baldrige National Quality Award expert Blair Childs, SVP, Public Affairs 10 years Premier, 28 years healthcare AdvaMed Mike Riegel, SVP, Strategic Transformation 24 years information technology with focus on marketing, sales, business development, and product management; Cisco, IBM 31

32 PremierConnect : Combines People, Process and Technology Reduce Costs Improve Quality and Safety Manage Populations PREMIERCONNECT SUPPLY CHAIN ANY DATA PURCHASING BILLING FINANCIAL CLINICAL CLAIMS 32

33 First-quarter fiscal 2017 financial highlights 16% growth in consolidated net revenue to $313.3 million Supply Chain Services revenue increased 19%, Performance Services revenue increased 7% GAAP net income increased 11% to $58.1 million, Non-GAAP adjusted EBITDA [1] increased 6% to $110.8 million GAAP diluted earnings per share increased 8% to $0.26, Non-GAAP adjusted fully distributed earnings per share [1] increased 8% to $0.41 Affirm full-year fiscal 2017 revenue and adjusted EBITDA financial guidance Increasing full-year fiscal 2017 adjusted fully distributed earnings per share financial guidance [1] See non-gaap Adjusted EBITDA, non-gaap Adjusted Fully Distributed Earnings Per Share and non-gaap Free Cash Flow reconciliations to GAAP equivalents in Appendix. 33

34 FY 2017 first-quarter consolidated and segment highlights Consolidated Net revenue (in millions) Supply Chain Services Net revenue (in millions) Performance Services Net revenue (in millions) 16% GAAP $270.8 $313.3 $ % $ % $74.3 $79.5 1Q'16 1Q'17 1Q'16 1Q'17 1Q'16 1Q'17 Adjusted EBITDA (in millions) Adjusted EBITDA (in millions) Adjusted EBITDA (in millions) 6% 14% NON-GAAP [1] $105.0 $110.8 $102.9 $ % $24.9 $22.3 1Q'16 1Q'17 1Q'16 1Q'17 1Q'16 [1] See non-gaap Adjusted EBITDA and non-gaap Segment Adjusted EBITDA reconciliations to GAAP equivalents in Appendix. 1Q'17 34

35 Medicare payment reform population health is here to stay CURRENT VBP & regulatory cuts HACs & readmissions Shared savings Bundled payments Full risk sharing FUTURE Healthcare is accelerating towards alternative payment models. HHS announces plan to accelerate payment shift» Shifting fee for service, Medicare payments to alternative payment models. Congress passes Medicare Access &CHIP Reauthorization Act of 2015 (MACRA)» Bill permanently reforms the Medicare physician payment system (Sustainable Growth Rate formula). CMS introduces mandatory payment model for joint replacements» Hospitals will be held accountable for the quality and costs of care from time of surgery through 90 days after discharge. Premier is well positioned to lead health systems through this transformation. 35

36 Multiple opportunities to drive long-term sustainable growth Performance Services Other Upside Steady acute GPO growth Supply Chain Services Non acute and complementary services expansion Expanding supply chain solutions Member penetration performance services New product development M&A and growth opportunities Top Priority Strategic Initiatives Expanded cost reduction Non acute and pharmacy growth Supply chain technology Top Priority Strategic Initiatives Clinical integration/ shared services Ambulatory data expansion Population health capabilities Attributes Strong distribution channel Desired expertise/ capabilities 36

37 Multiple opportunities to drive long-term sustainable growth UNIQUE CUSTOMER ALIGNMENT MULTIPLE GROWTH DRIVERS HIGH VISIBILITY ATTRACTIVE ECONOMIC MODEL DISCIPLINED CAPITAL DEPLOYMENT Interests and perspectives are aligned with our customers Members own ~64% [1] of equity and view Premier as strategic partner Embedded field force co developing solutions with members Consolidated YoY double digit annual non GAAP pro forma net revenue and non GAAP adjusted EBITDA growth since IPO [2] Diversified revenue opportunities in Supply Chain Services and Performance Services Multiple emerging growth drivers High retention rates in both business segments 5 7 year contracts in Supply Chain Services and 3 5 year SaaS based subscription contracts in Performance Services Fiscal 2017 revenue visibility between 86% to 90% of revenue guidance Significant cross sell and upsell opportunities in existing member base High margins and low marginal cost to support new GPO members and for further penetration of existing GPO members SaaS based products generate high returns on new wins Attractive returns on acquired assets Strategic, financial and execution framework in place for capital deployment [1] As of October 31, [2] Comparisons are with non GAAP pro forma information that reflects the impact of the company s October 2013 reorganization and initial public offering. See Adjusted EBITDA and Pro Forma Net Revenue reconciliations to GAAP equivalents in Appendix. 37

38 Structural implications of Premier Inc. 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 Impact of IPO and Exchange Process ~22% of Limited Partner interests sold to public, ~78% retained by member owners as Class B units Class B units eligible to exchange 1/7th per year, over seven year period Exchange of Class B units for Class A shares (on a 1 for 1 basis) as B units become eligible for exchange subject to ROFR by members owners and Premier, Inc. Quarterly exchanges, beginning October 31, 2014, have been the primary driver for injecting 17.7 million shares of liquidity into the public market, increasing total Class A shares outstanding by approximately 55% since IPO, as of October 31, Adjusted fully distributed net income Share count 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 38

39 Fiscal 2017 first-quarter and fiscal 2016 first-quarter non- GAAP reconciliations Supplemental Financial Information - Reporting of Adjusted EBITDA and Non-GAAP Adjusted Fully Distributed Net Income Reconciliation of Selected Non-GAAP Measures to GAAP Measures (Unaudited) (in thousands) Three months ended September 30, Reconciliation of Net Income to Adjusted EBITDA and Reconciliation of Segment Adjusted EBITDA to Income Before Income Taxes: Net income $ 58,095 $ 52,253 Interest and investment loss (income), net 152 (241) Income tax expense 23,336 19,040 Depreciation and amortization 14,018 11,865 Amortization of purchased intangible assets 9,209 6,047 EBITDA 104,810 88,964 Stock-based compensation (a) 5,896 13,700 Acquisition related expenses 2,937 3,472 Strategic and financial restructuring expenses 27 Adjustment to tax receivable agreement liability (5,722) (4,818) ERP implementation expenses 1, Acquisition related adjustment - deferred revenue 151 3,092 Loss on disposal of long-lived assets 1,518 Other expense 89 Adjusted EBITDA $ 110,773 $ 104,997 39

40 Fiscal 2017 first-quarter and fiscal 2016 first-quarter non- GAAP reconciliations Supplemental Financial Information - Reporting of Adjusted EBITDA and Non-GAAP Adjusted Fully Distributed Net Income Reconciliation of Selected Non-GAAP Measures to GAAP Measures (Unaudited) (in thousands) Three months ended September 30, Segment Adjusted EBITDA: Supply Chain Services $ 117,304 $ 102,949 Performance Services 22,311 24,925 Corporate (28,842) (22,877) Adjusted EBITDA $ 110,773 $ 104,997 Depreciation and amortization (14,018) (11,865) Amortization of purchased intangible assets (9,209) (6,047) Stock-based compensation (a) (5,896) (13,700) Acquisition related expenses (2,937) (3,472) Strategic and financial restructuring expenses (27) Adjustment to tax receivable agreement liability 5,722 4,818 ERP implementation expenses (1,094) (560) Acquisition related adjustment - deferred revenue (151) (3,092) Equity in net income of unconsolidated affiliates (9,579) (4,590) Deferred compensation plan (income) expense (1,095) 1,809 Operating income $ 72,516 $ 68,271 Equity in net income of unconsolidated affiliates 9,579 4,590 Interest and investment (loss) income, net (152) 241 Loss on disposal of long-lived asset (1,518) Other income (expense), net 1,006 (1,809) Income before income taxes $ 81,431 $ 71,293 40

41 Fiscal 2017 first-quarter and fiscal 2016 first-quarter non- GAAP reconciliations Supplemental Financial Information - Reporting of Adjusted EBITDA and Non-GAAP Adjusted Fully Distributed Net Income Reconciliation of Selected Non-GAAP Measures to GAAP Measures (Unaudited) (in thousands) Reconciliation of Net Income Attributable to Stockholders to Non-GAAP Adjusted Fully Distributed Net Income: Three months ended September 30, Net income attributable to stockholders $ 70,302 $ 471,154 Adjustment of redeemable partners' capital to redemption amount (61,808) (466,801) Net income attributable to non-controlling interest in Premier LP 49,601 47,900 Income tax expense 23,336 19,040 Amortization of purchased intangible assets 9,209 6,047 Stock-based compensation (a) 5,896 13,700 Acquisition related expenses 2,937 3,472 Strategic and financial restructuring expenses 27 Adjustment to tax receivable agreement liability (5,722) (4,818) ERP implementation expenses 1, Acquisition related adjustment - deferred revenue 151 3,092 Loss on disposal of long-lived assets 1,518 Other expense 89 Non-GAAP adjusted fully distributed income before income taxes 96,603 93,373 Income tax expense on fully distributed income before income taxes 37,675 37,349 Non-GAAP Adjusted Fully Distributed Net Income $ 58,928 $ 56,024 (a) Represents non-cash employee stock-based compensation expense, and $0.1 million and $0.2 million stock purchase plan expense in the three months ended September 30, 2016, and 2015 respectively. 41

42 Fiscal 2017 first-quarter and fiscal 2016 first-quarter non- GAAP reconciliations Supplemental Financial Information - Reporting of Net Income and Earnings Per Share Reconciliation of Selected Non-GAAP Measures to GAAP Measures (Unaudited) (in thousands, except per share data) Three months ended September 30, Reconciliation of numerator for GAAP EPS to Non-GAAP EPS on Adjusted Fully Distributed Net Income Net income attributable to stockholders $ 70,302 $ 471,154 Adjustment of redeemable partners' capital to redemption amount (61,808) (466,801) Net income attributable to non-controlling interest in Premier LP 49,601 47,900 Income tax expense 23,336 19,040 Amortization of purchased intangible assets 9,209 6,047 Stock-based compensation (a) 5,896 13,700 Acquisition related expenses 2,937 3,472 Strategic and financial restructuring expenses 27 Adjustment to tax receivable agreement liability (5,722) (4,818) ERP implementation expenses 1, Acquisition related adjustment - deferred revenue 151 3,092 Loss on disposal of long-lived assets 1,518 Other expense 89 Non-GAAP adjusted fully distributed income before income taxes 96,603 93,373 Income tax expense on fully distributed income before income taxes 37,675 37,349 Non-GAAP Adjusted Fully Distributed Net Income $ 58,928 $ 56,024 Reconciliation of denominator for GAAP EPS to Non-GAAP Adjusted Fully Distributed Earnings per Share Weighted Average: Common shares used for basic and diluted earnings per share 47,214 37,735 Potentially dilutive shares 939 1,747 Conversion of Class B common units 94, ,078 Weighted average fully distributed shares outstanding - diluted 142, ,560 42

43 Fiscal 2017 first-quarter and fiscal 2016 first-quarter non- GAAP reconciliations Supplemental Financial Information - Reporting of Net Income and Earnings Per Share Reconciliation of Selected Non-GAAP Measures to GAAP Measures (Unaudited) (in thousands, except per share data) Three months ended September 30, Reconciliation of GAAP EPS to Non-GAAP Adjusted Fully Distributed EPS GAAP earnings per share $ 1.49 $ Adjustment of redeemable limited partners' capital to redemption amount (1.31) (12.37) Impact of additions: Net income attributable to non-controlling interest in Premier LP Income tax expense Amortization of purchased intangible assets Stock-based compensation (a) Acquisition related expenses Adjustment to tax receivable agreement liability (0.12) (0.13) ERP implementation expenses Acquisition related adjustment - deferred revenue 0.08 Loss on disposal of long-lived assets 0.03 Impact of corporation taxes (0.80) (0.99) Impact of increased share count (0.83) (1.10) Non-GAAP Adjusted Fully Distributed Earnings Per Share $ 0.41 $ 0.38 (a) Represents non-cash employee stock-based compensation expense, and $0.1 million and $0.2 million stock purchase plan expense in the three months ended September 30, 2016, and 2015 respectively. 43

44 Fiscal 2016 and fiscal 2015 non-gaap reconciliations Supplemental Financial Information - Reporting of Adjusted EBITDA and Non-GAAP Adjusted Fully Distributed Net Income Reconciliation of Selected Non-GAAP Measures to GAAP Measures (Unaudited) (in thousands) Three Months Ended Twelve Months Ended June 30, June 30, Reconciliation of Net Income to Adjusted EBITDA and Reconciliation of Segment Adjusted EBITDA to Income Before Income Taxes: Net income $ 50,356 $ 32,061 $ 235,161 $ 234,785 Interest and investment income (loss), net 40 (349) 1,021 (866) Income tax expense 8,464 24,235 49,721 36,342 Depreciation and amortization 13,928 12,079 51,102 45,186 Amortization of purchased intangible assets 8,996 2,538 33,054 9,136 EBITDA 81,784 70, , ,583 Stock-based compensation (a) 11,988 7,369 49,081 28,498 Acquisition related expenses 4,105 2,629 15,804 9,037 Strategic and financial restructuring expenses ,373 Adjustment to tax receivable agreement liability (4,818) Loss on investment 1,000 ERP implementation expenses 1,630 4,870 Acquisition related adjustment - deferred revenue 408 4,147 5,624 13,371 Loss on disposal of long-lived assets 15,243 15,243 Other expense, net Adjusted EBITDA $ 99,994 $ 100,104 $ 440,975 $ 393,175 44

45 Fiscal 2016 and fiscal 2015 non-gaap reconciliations Supplemental Financial Information - Reporting of Adjusted EBITDA and Non-GAAP Adjusted Fully Distributed Net Income Reconciliation of Selected Non-GAAP Measures to GAAP Measures (Unaudited) (in thousands) Three Months Ended Twelve Months Ended June 30, June 30, Segment Adjusted EBITDA: Supply Chain Services 2016 $ 109, $ 100, $ 439, $ 391,180 Performance Services 20,629 22, ,787 90,235 Corporate (30,006) (23,384) (108,825) (88,240) Adjusted EBITDA $ 99,994 $ 100,104 $ 440,975 $ 393,175 Depreciation and amortization (13,928) (12,079) (51,102) (45,186) Amortization of purchased intangible assets (8,996) (2,538) (33,054) (9,136) Stock-based compensation (a) (11,988) (7,369) (49,081) (28,498) Acquisition related expenses (4,105) (2,629) (15,804) (9,037) Strategic and financial restructuring expenses (92) (268) (1,373) Adjustment to tax receivable agreement liability 4,818 ERP implementation expenses (1,630) (4,870) Acquisition related adjustment - deferred revenue (408) (4,147) (5,624) (13,371) Equity in net income of unconsolidated affiliates (5,645) (6,473) (21,647) (21,285) Deferred compensation plan income (expense) (468) 544 1, Operating income $ 52,826 $ 65,321 $ 265,948 $ 266,042 Equity in net income of unconsolidated affiliates 5,645 6,473 21,647 21,285 Interest and investment income (loss), net (40) 349 (1,021) 866 Loss on investment (1,000) Loss on disposal of long-lived assets (15,243) (15,243) Other income (expense), net 389 (604) (1,692) (823) Income before income taxes $ 58,820 $ 56,296 $ 284,882 $ 271,127 45

46 Fiscal 2016 and fiscal 2015 non-gaap reconciliations Supplemental Financial Information - Reporting of Adjusted EBITDA and Non-GAAP Adjusted Fully Distributed Net Income Reconciliation of Selected Non-GAAP Measures to GAAP Measures (Unaudited) Three Months Ended Twelve Months Ended (in thousands) June 30, June 30, Reconciliation of Net Income (Loss) Attributable to Stockholders to Non-GAAP Adjusted Fully Distributed Net Income: Net income (loss) attributable to stockholders $ 101,645 $ (84,076) $ 818,364 $ (865,292) Adjustment of redeemable partners' capital to redemption amount (91,101) 92,066 (776,750) 904,035 Income tax expense 8,464 24,235 49,721 36,342 Stock-based compensation (a) 11,988 7,369 49,081 28,498 Acquisition related expenses 4,105 2,629 15,804 9,037 Strategic and financial restructuring expenses ,373 ERP implementation expenses 1,630 4,870 Adjustment to tax receivable agreement liability (4,818) Loss on investment 1,000 Acquisition related adjustment - deferred revenue 408 4,147 5,624 13,371 Loss on disposal of long-lived assets 15,243 15,243 Amortization of purchased intangible assets 8,996 2,538 33,054 9,136 Net income attributable to non-controlling interest in Premier LP 39,812 24, , ,206 Non-GAAP adjusted fully distributed income before income taxes 85,947 88, , ,949 Income tax expense on fully distributed income before income taxes 34,379 35, , ,780 Non-GAAP Adjusted Fully Distributed Net Income $ 51,568 $ 52,988 $ 233,259 $ 208,169 (a) Represents non-cash employee stock-based compensation expense, and $0.1 million and $0.4 million stock purchase plan expense in the three and twelve months ended June 30, 2016, respectively. 46

47 Fiscal 2016 and fiscal 2015 non-gaap reconciliations 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 Twelve Months Ended June 30, June 30, Reconciliation of Net Cash Provided by Operating Activities to Non-GAAP Free Cash Flow: Net cash provided by operating activities $ 100,533 $ 108,483 $ 371,470 $ 364,058 Purchases of property and equipment (22,306) (19,670) (76,990) (70,734) Distributions to limited partners of Premier LP (24,742) (23,412) (92,707) (92,212) Payments to limited partners under tax receivable agreements (10,805) (11,499) (10,805) (11,499) Non-GAAP Free Cash Flow $ 42,680 $ 53,902 $ 190,968 $ 189,613 47

48 Fiscal 2016 and fiscal 2015 non-gaap reconciliations Supplemental Financial Information - Reporting of Net Income and Earnings Per Share Reconciliation of Selected Non-GAAP Measures to GAAP Measures (Unaudited) (in thousands, except per share data) Three Months Ended Twelve Months Ended June 30, June 30, Reconciliation of numerator for GAAP EPS to Non-GAAP EPS on Adjusted Fully Distributed Net Income Net income (loss) attributable to stockholders $ 101,645 $ (84,076) $ 818,364 $ (865,292) Adjustment of redeemable limited partners' capital to redemption amount (91,101) 92,066 (776,750) 904,035 Income tax expense 8,464 24,235 49,721 36,342 Stock-based compensation (a) 11,988 7,369 49,081 28,498 Acquisition related expenses 4,105 2,629 15,804 9,037 Strategic and financial restructuring expenses ,373 ERP implementation expenses 1,630 4,870 Adjustment to tax receivable agreement liability (4,818) Loss on investment 1,000 Acquisition related adjustment - deferred revenue 408 4,147 5,624 13,371 Loss on disposal of long-lived assets 15,243 15,243 Amortization of purchased intangible assets 8,996 2,538 33,054 9,136 Net income attributable to non-controlling interest in Premier LP 39,812 24, , ,206 Non-GAAP fully distributed income before income taxes 85,947 88, , ,949 Income tax expense on fully distributed income before income taxes 34,379 35, , ,780 Non-GAAP Adjusted Fully Distributed Net Income $ 51,568 $ 52,988 $ 233,259 $ 208,169 48

49 Fiscal 2016 and fiscal 2015 non-gaap reconciliations Supplemental Financial Information - Reporting of Net Income and Earnings Per Share Reconciliation of Selected Non-GAAP Measures to GAAP Measures (Unaudited) (in thousands, except per share data) Three Months Ended June 30, Twelve Months Ended June 30, Reconciliation of denominator for GAAP EPS to Non-GAAP Adjusted Fully Distributed Earnings per Share Weighted Average: Common shares used for basic and diluted earnings (loss) per share 45,506 37,576 42,368 35,681 Potentially dilutive shares 2,911 1,592 2,366 1,048 Conversion of Class B common units 96, , , ,518 Weighted average fully distributed shares outstanding - diluted 144, , , ,247 Reconciliation of GAAP EPS to Non-GAAP Adjusted Fully Distributed EPS GAAP earnings (loss) per share $ 2.23 $ (2.24) $ $ (24.25) Adjustment of redeemable limited partners' capital to redemption amount $ (2.00) $ 2.45 $ (18.33) $ Impact of additions: Income tax expense $ 0.19 $ 0.64 $ 1.17 $ 1.02 Stock-based compensation (a) $ 0.26 $ 0.20 $ 1.16 $ 0.80 Acquisition related expenses $ 0.09 $ 0.07 $ 0.37 $ 0.25 Strategic and financial restructuring expenses $ - $ - $ 0.01 $ 0.04 ERP implementation expenses $ 0.04 $ - $ 0.11 $ - Adjustment to tax receivable agreement liability $ - $ - $ (0.11) $ - Loss on investment $ - $ - $ - $ 0.03 Acquisition related adjustment - deferred revenue $ 0.01 $ 0.11 $ 0.13 $ 0.37 Loss on disposal of long-lived assets $ - $ 0.41 $ - $ 0.43 Amortization of purchased intangible assets $ 0.20 $ 0.07 $ 0.78 $ 0.26 Net income attributable to non-controlling interest in Premier LP $ 0.87 $ 0.64 $ 4.57 $ 5.44 Impact of corporation taxes $ (0.76) $ (0.94) $ (3.67) $ (3.90) Impact of increased share count $ (0.77) $ (1.05) $ (3.90) $ (4.40) Non-GAAP Adjusted Fully Distributed Earnings Per Share $ 0.36 $ 0.36 $ 1.61 $ 1.43 (a) Represents non-cash employee stock-based compensation expense, and $0.1 million and $0.4 million stock purchase plan expense in the three and twelve months ended June 30, 2016, respectively. 49

50 Fiscal 2015 and fiscal 2014 non-gaap reconciliations Supplemental Financial Information - Reporting of Pro Forma Adjusted EBITDA and Non-GAAP Adjusted Fully Distributed Net Income Reconciliation of Selected Non-GAAP Measures to GAAP Measures (Unaudited) (In thousands) Three Months Ended Year Ended June 30, June 30, 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 $ 41,263 Pro forma adjustment for revenue share post-ipo Net Revenue $ 266,553 $ 235,466 1,007, ,549 $ $ Reconciliation of Net Income to Adjusted EBITDA and Reconciliation of Segment Adjusted EBITDA to Income Before Income Taxes: Net income 32,061 $ 66,632 $ 234,785 $ 332,617 $ (41,263) Pro forma adjustment for revenue share post-ipo 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, ,136 3,062 EBITDA 70,564 80, , ,867 Stock-based compensation 7,369 6,358 28,498 19,476 Acquisition related expenses 2, ,037 2,014 Strategic and financial restructuring expenses ,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 Adjusted EBITDA $ 100,104 $ 93,244 $ 393,175 $ 351,025 Segment Adjusted EBITDA: Supply Chain Services 100,970 $ 94,394 $ 391,180 $ 396,470 $ (41,263) Pro forma adjustment for revenue share post-ipo Supply Chain Services (including pro forma adjustment) $ 100,970 $ 94, , ,207 $ $ 73,898 Performance Services 22,518 19,531 90,235 Corporate (23,384) (20,681) (88,240) (78,080) Adjusted EBITDA $ 100,104 $ 93, , ,025 $ $ (36,761) Depreciation and amortization (12,079) (9,809) (45,186) 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, , ,789 Pro forma adjustment for revenue share post-ipo 41,263 Operating income $ 65,321 $ 62, , ,052 $ $ 16,976 Equity in net income of unconsolidated affiliates 6,473 4,805 21,285 Interest and investment income, net ,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, , ,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. 50

51 Fiscal 2015 and fiscal 2014 non-gaap reconciliations Supplemental Financial Information - Reporting of Pro Forma Adjusted EBITDA and Non-GAAP Adjusted Fully Distributed Net Income Reconciliation of Selected Non-GAAP Measures to GAAP Measures (Unaudited) (In thousands) Three Months Ended Year Ended June 30, June 30, 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, ,037 2,014 Strategic and financial restructuring expenses ,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, ,136 3,062 Net income attributable to noncontrolling interest in Premier LP 24,071 57, , ,336 Non-GAAP pro forma adjusted fully distributed income before income taxes 88,314 83, , ,269 Income tax expense on fully distributed income before income taxes 35,326 33, , ,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. 51

52 Fiscal 2015 and fiscal 2014 non-gaap reconciliations 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, 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 52

53 Fiscal 2015 and fiscal 2014 non-gaap reconciliations Supplemental Financial Information - Reporting of Net Income and Earnings Per Share Reconciliation of Selected Non-GAAP Measures to GAAP Measures (Unaudited) (In thousands, except per share data) Three Months Ended Year Ended June 30, June 30, 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, , 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) $ $ (24.25) $ (105.85) Impact of adjustment of redeemable limited partners' capital to redemption amount $ 2.45 $ (14.90) $ $ 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, ,037 2,014 Strategic and financial restructuring expenses ,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, ,136 3,062 Net income attributable to noncontrolling interest in Premier LP 24,071 57, , ,336 Non-GAAP pro forma adjusted fully distributed income before income taxes 88,314 83, , ,269 Income tax expense on fully distributed income before income taxes 35,326 33, , ,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. 53

54 Fiscal 2015 and fiscal 2014 non-gaap reconciliations Supplemental Financial Information - Reporting of Net Income and Earnings Per Share Reconciliation of Selected Non-GAAP Measures to GAAP Measures (Unaudited) (In thousands, except per share data) Three Months Ended Year Ended June 30, June 30, 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, , Class A common shares outstanding ,742 Conversion of Class B common units 106, , , ,584 Weighted average fully distributed shares outstanding - diluted 145, , , ,083 Reconciliation of GAAP EPS to Adjusted Fully Distributed EPS GAAP earnings (loss) per share $ (2.24) $ $ (24.25) $ (105.85) Impact of adjustment of redeemable limited partners' capital to redemption amount $ 2.45 $ (14.90) $ $ 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 $ 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. 54