Premier, Inc.

Good morning and welcome to the Premier, Inc. Fiscal 2022 Fourth Quarter Results Conference Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your touch-tone phone. To withdraw from the question queue, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Angie McCabe, Vice President, Investor Relations. Please go ahead. Thank you.

Welcome to Premier's fiscal 2022 fourth quarter and full year conference call. Our speakers this morning are Mike Alkire, our President and CEO, and Craig McCaslin, our Chief Administrative and Financial Officer. Before we get started, I want to remind everyone that our earnings release and the supplemental slides accompanying this conference call are available in the investor relations section of our website at investors.premierinc.com. Management's remarks today contain certain forward-looking statements, and actual results could differ materially from those discussed today. These forward-looking statements speak as of today, and we undertake no obligation to update them. Factors that might affect future results are discussed in our filings with the SEC, including our Form 10-K for the fiscal year which we expect to file soon. We encourage you to review these detailed safe harbor and risk factor disclosures. Also, where appropriate, we will refer to adjusted or other non-GAAP financial measures, such as free cash flow, to evaluate our business. Reconciliations of non-GAAP financial measures to GAAP financial measures are included in our earnings release, in the appendix of the supplemental slides accompanying this presentation, and in our earnings form 8K. which we expect to furnish to the SEC soon. I will now turn the call over to Mike Alkire. Mike?

Thanks, Angie. Good morning, everyone, and thank you for joining us today. We're very pleased with our performance in the fourth quarter and fiscal year 2022. For the full year, net revenue of $1.4 billion and adjusted EBITDA of $498.7 million. exceeded our expectations that reflect our focus on executing our multi-year growth strategy. At our investor day in November 2021, we communicated how we are leveraging technology and executing our strategy to achieve sustainable long-term growth. This morning, Craig and I will share with you the progress we are making to advance the strategy and our outlook for fiscal year 2023 Craig will also provide additional details regarding our fiscal 2023 guidance. Our multi-year growth strategy consists of four pillars. The first pillar is to grow and deepen existing relationships with our more than 4,400 hospitals and health systems and nearly 250,000 providers and other organizations. We believe the challenges of labor shortages and supply chain disruption that our healthcare systems faced over the past two years have provided us with the opportunity to further demonstrate our differentiated solutions and the value we bring to the market. I am proud of our results from our most recent annual C-suite satisfaction survey, where more than 90% of our member executives responded that they view Premier not simply as a vendor, but a strategic partner or an extension of their own organization. We recently achieved an all-time high net promoter score, which remains above 70 and places Premier among some of the most recognizable well-regarded companies in the Fortune 500. And our overall satisfaction score has steadily increased over the last five years and remains in the high 90% range. Through the second pillar of our growth strategy, we are building and strengthening capabilities and solutions that deliver on the needs of our members and other customers. For instance, as part of our supply chain services growth strategy, we are leveraging our technology-enabled purchasing program for non-acute healthcare to further capture members' spend, particularly since healthcare is increasingly shifting from the hospital to the outpatient setting. This resulted in year-over-year double-digit growth in our non-acute group purchasing business. Our third strategic growth pillar consists of creating and delivering innovative solutions in healthcare. In fiscal 2022, we launched two new innovative brands that represent Premier's unique ability to scale disruptive technologies in healthcare. Pink AI, our AI-enabled technology and services platform, and Remitra, our digital invoice and payment solution for healthcare providers and suppliers. In Remitra, We recently achieved the key milestone on our strategic roadmap. Ahead of our schedule, we launched Remitra Cashflow Optimizer, or Remitra CFO. Remitra is already digitizing invoicing, and Remitra CFO positions us to be what we believe is the first solution in healthcare to manage electronic invoicing and guarantee on-time invoice payment for suppliers. Launching Remitra CFO is a very exciting step for us as we continue to vertically integrate and evolve our capabilities to build an end-to-end technology-enabled supply chain to create efficiencies and savings across the entire supply chain. We expect it to drive Remitra's growth as we add more suppliers and providers to the platform in fiscal 2023. Lastly, The fourth pillar of our growth strategy is to diversify and grow revenue by expanding into adjacent markets. Contigo Health, our direct-to-employer business, performed very well in fiscal 2022, with both revenue and participants accessing our centers of excellence and third-party health plan administrative services growing nearly 30% year-over-year and exceeding the target that we communicated at our investor day last year. We believe Contigo Health is well positioned for continued growth as we expand our offering into the provider and employer sponsored health plan markets and seek opportunities to provide more comprehensive network services, back office support and infrastructure. In the second half of this fiscal year, we anticipate rolling out new centers of excellence programs, including a new substance use program, and expanding our Center of Excellence provider network. We also expect the number of participants accessing Contigo Health's products and services to grow by 20 to 30% in fiscal 2023. We are very pleased with the strong momentum in Pink AI Applied Sciences business. We believe we are highly differentiated through our unique health systems relationship and Pink AI's technology capabilities to accelerate regulatory review and commercialization of treatment therapies for life sciences and medical device companies. In fiscal 2022, we continue to expand our partnerships so that pharmaceutical, medical device, and diagnostic companies can leverage real-world evidence using Pink AI's data and research capabilities. One example of this is our new partnership with AstraZeneca to support their efforts to transform the treatment of chronic obstructive pulmonary disease, or COPD, and eliminate it as a leading cause of death. This is in addition to the work we are already doing with them to use our platform to help identify patients with incidental pulmonary nodules for the diagnosis of lung cancer, as well as five other cancer types. In fiscal 2023, we expect to drive further growth in this business by entering new and expanding existing strategic partnerships with life sciences companies members and other research organizations, collaborating with life sciences companies on innovative clinical trials, leveraging real-world evidence to help in the pre-market regulatory process and to deliver targeted treatment therapies for patients. Before I turn the call over to Craig, I want to take a moment to thank our employees for their hard work and continued dedication to and support of our members, our customers, and partners as we all navigate a challenging environment. This is a testament to our employees' focus and belief in our mission to improve the health of communities. In closing, we continue to evolve in what we believe is the most comprehensive, full-service performance improvement company in healthcare. As we look ahead, we remain committed to achieving our longer-term objectives and creating value for our stakeholders. I will now turn the call over to Craig McKesson for a discussion of our operational and financial performance and fiscal 2023 financial guidance.