Revenue during the quarter grew 15.67 percent to $313.27 million from $270.84 million in the previous year period. Gross margin for the quarter contracted 392 basis points over the previous year period to 55.79 percent. Total expenses were 76.85 percent of quarterly revenues, up from 74.79 percent for the same period last year. That has resulted in a contraction of 206 basis points in operating margin to 23.15 percent.

Operating income for the quarter was $72.52 million, compared with $68.27 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $110.77 million compared with $105 million in the prior year period. At the same time, adjusted EBITDA margin contracted 341 basis points in the quarter to 35.36 percent from 38.77 percent in the last year period.

"Premier is a provider-centric healthcare performance improvement company that we believe is uniquely positioned to transform healthcare in partnership with our member health systems," said Susan DeVore, president and chief executive officer, Premier. “Our fiscal 2017 first-quarter performance and full-year outlook reflects continuing demand for our supply chain, analytics and advisory solutions to help our members address the growing cost, quality, safety and population health challenges of this rapidly evolving market. We affirm our current full-year revenue and adjusted EBITDA financial guidance and are increasing our non-GAAP adjusted fully distributed earnings per share guidance. We continue to believe Premier remains well-positioned strategically given the market’s evolution to a value-based care environment."

For financial year 2017, Premier Inc projects diluted earnings per share to be in the range of $1.76 to $1.87 on adjusted basis.

The company has spent $96.80 million cash to meet investing activities during the quarter as against cash outgo of $186.63 million in the last year period.

The company has spent $37.83 million cash to carry out financing activities during the quarter as against cash inflow of $127.22 million in the last year period.

Cash and cash equivalents stood at $156.01 million as on Sep. 30, 2016, up 42.04 percent or $46.18 million from $109.84 million on Sep. 30, 2015.

Working capital drops significantly
Premier Inc has witnessed a decline in the working capital over the last year. It stood at $82.91 million as at Sep. 30, 2016, down 28.99 percent or $33.85 million from $116.76 million on Sep. 30, 2015. Current ratio was at 1.28 as on Sep. 30, 2016, down from 1.47 on Sep. 30, 2015.

Cash conversion cycle (CCC) was almost stable at 19 days for the quarter, when compared with the last year period. Days sales outstanding went up to 22 days for the quarter compared with 21 days for the same period last year.

Days inventory outstanding has decreased to 12 days for the quarter compared with 13 days for the previous year period. At the same time, days payable outstanding was almost stable at 15 days for the quarter, when compared with the previous year period.