Premier (PINC) 5 Nov 242025 Q1 Earnings call transcript

Good morning and welcome to Premier's Fiscal 2025 First Quarter Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Ben Krasinski, Senior Director, Investor Relations. Please go ahead.

Thank you, and welcome to Premier's Fiscal 2025 First Quarter Conference Call.

are our Premier's Officer. Chief morning and and this McKasson, Craig Administrative speakers Mike President Alkire, CEO; Our and Financial

we premierinc.com. supplemental want earnings I Investors section are get everyone website the Before our at our that investors available to in release accompanying presentation remind the of this call and started,

that those future as our strategies, from plans, most Please be today quarter, expect today. remarks and differ to regarding management's might discussed these filings actual our recent contain our certain Form you could in file soon. expectations XX-K to statements statements reports. in which we We of Form results and performance, them. forward-looking review statements advised that affect the forward-looking and results statements undertake forward-looking are encourage Factors the and detailed discussed for risk speak such and including today, These with the prospects to disclosures SEC, update our no materially as obligation we factor future XX-Q

in file Information earnings Form this presentation, we we including expect XX-Q measures and financial measures, addition these and Form earnings financial call. financial to of our we financial during cash GAAP are soon. and our which on reconciliations the and be why our this measures in to measures these to refer to our quarter release flow on non-GAAP our accompanying free other non-GAAP included in will evaluate in adjusted use of measures business. will Information supplemental both Also, GAAP included the appendix to for presentation of X-K, our measures the also

to turn the call will Alkire. Mike now I over

our report reaffirming you us today. for for in expectations giving confidence results everyone, that total our exceeded joining slightly morning, to guidance. fiscal us Good revenue XXXX profitability, net first fiscal and quarter pleased and I'm thank XXXX

in slightly fell expectations provide exceeded perspective, Craig revenue Performance anticipated for the the we Chain quarter. while Services Services short segment Supply details of revenue call. a will later our what From more

addition, States, the A returned previously be a shares reliant Today under through our to other billion quarterly In of by Class quarter during on dividend our election the marks the reminder, our our and the designed faced authorization. and repurchase day and share capital influences common strategies stockholders announced challenges in and we cash concentrated are regulatory as $X on customers. United less to political more core members addressing repurchase

for costs relationships Regardless to Our serve outcome, founded we on delivery and understanding relies on strategies communities care outcomes the member reducing through improving improving of the health and our patients are unwavering. technologies. improving commitment health and remains the of

in identifying to our members we're while leveraging enhancing closely our business. contract and market penetration for By Premier's to savings the for members Momentum Turning strategy. with chain our cost programs. additional collaborating continues group supply purchasing services, and technology opportunities technology-driven grow in our

for opportunities Our and on for strong contract also data-driven have progress renewals, deeper door are driven opening the strategic discussions improvement. with in relationships us which more member have to members

with renewal commitment over high we've trust our years. Our the collaboration reflects built our rate the and to members

had American In communities. and hospital agencies help that government to our mitigate addition, partner we and stakeholders hurricanes recent across the the members to operations continue other with have impact supply manufacturers, on chains

health an response our system resilience technology With enhancing hospitals care the and Premier's member commitment for remains these health high. reinforces our for response predictability members. to challenges, need particularly support overall all-time systems These trying challenging through each have at enablement. and the systems times to health disaster been Premier to our

a building care. vital impact minimize to the future is to job health the be of in ally Our

business. Performance Services our to Turning

efficiencies AI-enabled and for and We utilize insights and other our to customers. technology deliver opportunities our to focus data members robust on unparalleled continue to

to were that in agency proprietary renew leverages improvement example, Premier's dataset For methodologies outcomes maternal our we and and government performance and extend a with improvements hospitals the nation. scale to engagement in health across pleased infant

expanded companies health one real-world our pharma in innovations real-time of our to This faster top research insights work include with Alzheimer's smarter with to additional facilitates with world AI-enabled technologies. partnership also actionable better national smarter, that better, the observational with related the in in disease. the evidence We differentiation unique scale, their underscores and faster marketplace and care,

improving to continue initiatives published few responsibly and care, and weeks at impacting climate also we plan, aimed advance efforts. health many Sustainability ago, A communities. and We our Report practices our XXXX operating positively our sustainability resilience highlighting

Before I hand XX We our take it has for gratitude leader and years of express wish all exemplifies incredible does. to an He best moment a over service. and his to to Craig, he retirement. been I the Premier integrity in want his him for

quarter to to you and during second February. look Chief We forward Financial earnings also in Coleman, call introducing our our new Glenn Officer, Administrative

Craig?

words. your Thanks, kind appreciate Mike. I truly

I resulting business, to like First, our results sourcing continuing during call otherwise all SXS this Direct our reflect . the would operations. Global that divestiture discussed from of indicated, note unless

In operations. the Contigo addition, it will Health be to be guidance from business, results as to that continue that the excluded and contributions include divestiture ongoing, expectation will actual will discontinued although divested given moved business process remains from for the it

release of and we impact our the earnings table Health that Contigo supplemental certain such, the reconciles presentation have for As measures financial in quarter. the business included a on

driven revenue revenue $XXX.X expected year our to quarter results. lower fiscal the to administrative the quarter. first fee blended In Total XX% the by Chain increase prior the aggregate member from share our period. XXXX decreased low an segment, of in turning X% level Supply Services in net fees million, was Now net

than expected, from However, we higher member resulting as existing fees spend. in growth to was our better administrative purchasing of revenue penetration gross member ongoing drive continue

of To provide that restructure administrative GPO of group gross of part August XXXX XX% an represent were members total the update, the approximately our fees.

end address approximately representing fees. addressed and would current this fiscal of fiscal X/X XX% gross additional members group's in the remainder have associated that with year finalize in of during by we result member renewals to the through XX, this XXXX process XXXX, fees currently XXXX. over being September gross fiscal administrative the the plan of and group's of As We administrative occurring renewal

business Performance lower our revenue in business in period; compared decline the the was we Additionally, the pressure agreements revenue, Health the Applied timing chain help driven by in by services of our continued chain prior mainly to chain Services supply In driven supply our experienced engagements to business in interest Contigo to new other business. end-to-end continue express demand supply in in Premier's operations. and growth members expertise comanagement manage Sciences their where the consulting year segment, leveraging

the our Turning lawsuit expected for period. to million from settlement year which benefited better quarter, adjusted the current the the income of from in was profitability. net than in GAAP resulting $XX gain EBITDA $XX.X was $XX.X from a GPO nonoperating Total million million performance. derivative quarter,

year However, the adjusted compared due to declined EBITDA following prior factors. period, to the

revenue adjusted mainly business in due consulting First, chain Supply administrative of mainly the net the a EBITDA EBITDA Services and ongoing Services decreased in due fees additional result well in Applied second, as the comanagement Performance decrease supply Chain businesses. in growth. to in And the as support investments revenue to the Sciences feature increase decline declined to adjusted as expected

rate the additional factors Adjusted repurchased decrease the of August an Then July. same and tax a as shares completion EBITDA, the the partially Adjusted same accelerated by offset in we in that million factors impacted net as by adjusted repurchase income current September, result share per decreased affected well in effective open a of of year primarily was $XX share earnings $XXX income in the our as transaction market. in million period.

As we repurchase of shares authorization. A the have and million repurchased billion under Class share September $X nearly XX, common XX retired

from year prior in a sale care full of to timing by revenue the in impacted well due period, operations received factors liquidity the from as a against cash quarter year fiscal a the derivative the cash future sale to settlement the primarily flow $XX same cash from and quarter in fiscal partially from current balance continuing XXXX that XXXX fiscal GPO year in was $XX of the period to the purchases for the due in current compensation primarily year than $XX.X first partially cash operations prior for performance lower fiscal resulting flow the due to the of cash XXXX. OMNIA offset million than decrease to XXXX non-health lawsuit property from performance-related offset From quarter expectations of increased by year sheet related better the period, increased were million performance of to from Free in expectations. of of payments million quarter and where the as flow period perspective, period payments prior partial of first year higher a operations These prior compared equipment.

fiscal As June a flow our compensation lowest is typically of reminder, year first since performance-related cash free the quarter. ends including occurs quarter the annual expenses, in and certain in in payment first

million Cash of XXXX, XX, and XXXX. for the of of by $XX cash $XXX.X driven equivalents cash as primarily as with decrease totaled share September compared June million The XX, was repurchases. use

as the non-health billion million. quarter, in final the quarter. continued in sale $XXX.X proceeds resulting of end Our have to the revolving payment of of no the we the balance of care $XX.X operations, $X With to of credit million respect X-year facility the received GPO first cumulative

focused and focused taking With in we balanced near deployment, remaining on also term. return approach to disciplined the a capital remain on respect to of while to stockholders capital continue

our another authorization. of in repurchase under we August, a As reminder, announced million of $XXX execution share billion approved repurchase our share $X Board that

under dividend, our our XXXX. This program. in first of $XXX evaluate totaled $XX.X million under team the We the remaining quarterly that continue augmented shares and $X And completion, authorization. will quarter fiscal billion current million to the management repurchase cash available which following Board

in In of a recently December. addition, Board $X.XX share payable our declared per dividend

opportunities in our offerings potential to We marketplace. the acquisitions to and will evaluate continue core organic differentiate to in growth invest

on note August. year, on earnings begun the we we in program. Based Turning we are million guidance shares the not to for per fiscal guidance. months while remainder for that program, the are reaffirming XXXX update we $XXX earnings adjusted outlook of our share our repurchase of and the completed the Please until we have first the have performance repurchase planning to year under call share the that to fiscal X introduced our guidance

GPO quarter perspective, decline work cadence we as from residual renewal to departed the year, ongoing ongoing relatively members. as of of the impact expect the half process. performance fees comparable In contract revenue sequential by expect half the contract in following: first impact offset the the currently we in net our purchasing in administrative renewals the we is through a back with the of we business, From a continue second expect

timing of with revenue the Performance we quarter our and back more for still quarter. be on based at half engagements, the anticipate first the the above slightly weighted In Services business second expectations current will or

agreements As magnitude a and profitability quarters. of arrangements, the periodic be reminder, the recognition engagements to may license due and of consulting these there revenue and certain variability the with enterprise between in associated timing

a EBITDA adjusted earnings more profitability expect and back weighted to we Performance mainly continue business. share due cadence be the the to adjusted in half From revenue perspective, per Services to

quarter, decline due In GPO the impact renewal second in addition, we expect contract of the a process. sequential to mainly

to community truly as over and to be Before I and forward team. the amazing honor this believe health the will has December. the going with our their I indubitably with work like hands an to mission of team, in last work years. rest been also you contribute I It's in Premier culture the as good an of Glenn financial I thank that for am I'd part will remind It strong like pleasure with earnings the retiring have to to of confidence I full a would communities. to be everyone in you, improve to conclude, be such collaboration and Premier's call my been

We for open time appreciate now call your and the today, we'll questions.

comes question first Research. Eric Percher The Instructions] from [Operator with Nephron

fees. admin that expectation difficult into assumption the it for on the where check And want to call nuances want Craig, but renewal they to health the been I other in QX about to half, the believe word with we relatively running you managed with you're just fit process. year change inducibly, customers last you here. out. system I'll that appreciate look the It's ask wish from appears sounds down very there's in no get this hear about fees and relative first views that that I falls where and line admin around second the do expectations half? is QX. the to year like given to full it step any of

in of I'd terms contracts Yes. in with GPO according come to the in had led the in Sure, is right say GPO health systems where to actual all. doing being our of What going of Eric. the that out. a renewal from Thanks, stronger actually stronger relative we we're the underlying the first of we a would plan our a purchasing renewals is the first QX which the renewed to business, than expectations process quarter, standpoint performance renewal overall thought. from sync

Services see to performance expect as throughout from actually are XXXX be track procedures We in good situation through we'll that. business. Supply purchasing and and fee Chain continue sort and XXs to we've IV on Baxter monitoring and things to the But given with expect guided underlying share low continue of fiscal our fluids would elective have the to that the overall, like yes,

Baxter Can doing and give us on what as I go then stand where update And up and actually we get was the shortages help was offset trying running? you you've been to where that going to today Okay. an follow-up. the on to they're

Yes.

Eric. And back and last I and factory they to of where out website thank keep care that up I saw weeks the you, actually speed. running have up they A a where not health think whole stuff. community something back to it's got running. necessarily up So back They the XXX%, but in couple of bunch

there's been of we've a things number that So on. focused been

additional well And health White out that figure the to ways solution fast coordinating working obviously include First issue. other And as obviously look the HHS so bringing with ways the is mitigate government the federal IV and overall systems. of part track with -- all, discussion. working big House at and to we've things those been the our We've been agencies FDA with to of potential to that online. a the of

In our been that cases, effective utilization term, and found solution. long effective And we've it's Secondarily, we more leverage where -- these with interesting. working that conserve drive of practices be on some IV have the those looking might can IV efficiency or at might really can opportunities systems health ways to utilization of some there more some we solutions.

is the obviously, conservation, So second.

potentially either of lines then that third is or where are can get produced system. suppliers to we and to And support look solution up the other with we at working IV health a that's get needs the additional running the

to play So those government; this three, that of ways have; two to number capacity. over to looking out and X to focused is going next this on quarter. end with to quarter the at is, look the and phases, the we of continue conserve federal obviously, into be going But supply we're working the for we're all going additional number

Cherny with Next question comes Michael Leerink. from

been and and a I'll helpful echo retirement it's Craig, the Eric's great IPO your comments, before doing in very next. of whatever run, since luck you're best

Thank you, Michael.

on better renegotiations, macro see underlying would a high to beyond the utilization are do a like what pull-through disagree customers the feel spending. environment. you to your level don't think core. anyone post-COVID for just the cartelization, inventory from preparing they the in Obviously, of touch want Great world? Maybe else on now thinking their keep through place impact tariffs in whatever to sustainability as proposed are for the in they a potentially accordingly of both terms decisions levels in of think place plan and and purchasing they through how I

Yes.

lot a there. So there's

to me From pretty of see utilization. just slight of utilization let seeing system some health of general, So unpack we're the if standpoint in increases that. -- a a can I stable

being solution that is Now IV this issue. tampered by

see elective and keeping procedures is having those how an that IV we're on to the -- such. So impact issue on eye an

been technologies relates one have it been our utilization don't the significant investments Michael, spend of there's of the where identify contracts. we've things, to making areas As contracts in to those for. we that

and of around that different leveraging to contracts leveraging of high been out where so building put We've spend technologies And areas technology. information, are that forms those advanced identify that. to

to not for we've the -- us continue drive going we've areas we're that continue contracts. historically, to done delivered do that up. obviously Obviously, contract and So opportunity not to in to

one. continual with, number of that's are struggling high cost right now systems labor. two, So the Number obviously, health really

I the systems what in to health economic conversations isn't growing, having am following. with strong be that so is And areas. out profit revenue this we're seems especially seeing those idea is But

sort we're So health pressure seeing of this on marginal these systems.

gaps And so our help leveraging labor extenders, where what is cost can health that creating? help we're driving are drive got more leveraging the efficient areas high that sort their through maybe to we through. to throughput identifying technology back And be them we them really on office, technologies they've we doubling they've or be really down can terms be of system, our could manage care of where so more in that what got

obviously those are mistake, building So these technology these it's of how around up and driving where services strategy performance today. things we're all But then identifying to drive improvement into of our driven, no improvement wrapping performance opportunities we're help really all solutions. Make

thoughts Mike, to technology and my development. And alluded you that's of my idea the second on question,

be into And As normal pipeline, the as you in adjustments technology, of about Suite. fee portfolio, you by Performance especially health settle more for through areas making then the helpful your made also SXS do internal capabilities GPO you core the and systems think How this you developing on Global. the changes development administrative both areas, further better? your Services new think can divestiture where

great Yes, that's question. a

now technology we're of our systems. opportunities of the to And HCC have looking current in grow at to authorization. the health capital prior we drive additional So are management. example, that extending So organic into very in where we benefit other we're investment, we're areas capital where continuing very, as and to How offering? our you good, the especially think the internal for about evolution through, we're investing radiology think areas

So approach number that's portfolio. capital to got you balanced number one, utilization as think continue investments we've Craig inorganic, in to about to the We one. chain. expand Number always when want two, that to said, make supply

those not that are today. areas we're where So covering

PPI You've services in look Those to talk non-acute heard going we're purchase and for. continue to that about us the past, areas areas. are

for We we appropriate to pricing there's chain to whole a where there that ordering Number we continue the supply two, that in can platform. the believe alternatives appropriate that that up evolve offering our tee is opportunity. huge degree can products do and

Services, So bit we're as with to continue prior investments little make this about talked -- I opened to we there. a going up authorization. HCC Performance

to So finally, sciences, we then continue about things of life to those think real-world Craig? to want companies. build appropriate and make And as our we're there. continue capital to we the doing in around investments for what services out deploy science kinds evidence life

Michael, standpoint. point One this an from is organic Craig. other

purchasing really ability as highlighted, supply an versus is relying we moved and fuller we've into GPO and year, to business point invoice As historically aligning the technology get to paid getting chain historical actually of have align the through well with better the our about we the services that on supply technology to throughput the tighter potentially due development to ability it the platform GPO administrative supplier fees the enabled much Premier Remitra our as model. this digital chain a suppliers to and for

The question Tassan from comes Piper Jessica next with Sandler.

the then able that to in included reflecting guidance? of relative income above to is OMNIA. to the which would that 'XX? that million portion outperformance of your the be to the Or to Premier kind be level the of with liability And -- in sale to operating portion liability retain associated wanted future FY would the that? related just the upside Is start I revenues current current of So $XX.X just

This Jessica. Craig. is Thanks, Yes.

will all, to anticipated current we to actually the just of as need a first result is during purchasing. So amounts portion the pay fiscal back year XXXX their OMNIA of during the that given

it's the purchasing. expected beyond So not above and

the you're there's We given the it's upside. a to come would that's that, million $XX that in OMNIA purchasing comes just of million others for expect Anything in this fiscal a year, only initial through above of on year, baseline portfolio, we I we the few $XX think would that to and depending going that life this performance our XX% that of to, early OMNIA of through goes, is what retain to anticipate to of understand that relationship. purchasing be OMNIA. million referring get to how beyond dollars

million of current expectations have nominal our So amount factored it's dollars that been a whole guidance, for but would magnitude the into fiscal not the few XXXX of liability.

question, Why grow Got just then to And a XQ from then in liability clarification quick it. XQ? quarter-over-quarter Okay. would one. real the another and

the due the was transaction. finalization to of It OMNIA

as noted had bow we see in So a when we around of we release, put July. actually transaction payment I my in and million $XX.X actually, commentary, you'll final the the in a

it why up. went So that's

to it expect quarter continue after now life remaining after agreement. the quarter would down over XX-year of to the You see quarter come

induces the level you your more Got kind matter and customer back Or expanding -- a in really saw categories your Congratulations purchasing? rates that having was of reached it. is of indicative of then diversification -- quarter purchasing of And on a my it retirement. question purchasing? increased is, of from fee the first customer that share

you, Thank appreciate I it. Jessica.

performance as identify leveraging opposed any opportunities to and in share is contract field to really fee change resources just tied for percentage. The the and undergoing to quarter pull-through our savings it our more about penetration technology much driving being first

question next from comes Kevin Caliendo UBS. with The

hopefully, in whatever, we an one. timing, of first was year companies in sorry. impacts FDA, you came if I for And had behavior any this there or if expecting that that earlier tariffs my Craig, that in way, question couple luck. you cadence, heard if was a My on forward enjoyable. you're if people quarter of business? benefit going that building is of And be else of the purchasing, building or chain any and Best inventories, will for anything you impact terms the COVID form everything ahead if really wondering about of supply inventories, think affects congratulations. how And fun from relaxing, cadence undue any behavior or That shape was because

no. No,

Mike. Kevin. that, This Sorry about is

Let me first. hit the COVID

of COVID. And Just supply. of as we reminder, and I flu of see necessarily kind from saying part a why a just was doesn't a this significant really is that reminder, -- didn't drive impact as amount that

really this year. didn't we that impact see So COVID from

more As a -- bit the question. it a complex relates of to to tariffs, that's

what you been to ways think it's have of for strategies to last about and as to the really over as Southeast our the So supply our in reduce did number resiliency years, create dependence. that. try much across possible Asia look as Obviously, chain. And we

to we've and done created products. We've So created domestically gowns capabilities the produce nearshore. with masks. same and isolation other We've

categories. of the So that domestic through concern on said continue thinking been of inventory for to as But obviously capabilities impact. where not may come out that of a that look so to is of necessarily more we've a be building seen there products. we've the a and pull that out we're to wouldn't tariffs where not impact we've sort degree, significant But organizations our out tariffs. the some focus suppliers on nearshore significant it significant not a seen some asking instead, us that, seeing building on might number as of to capability tariffs an relates have have what price the and tariffs these Having increase far,

follow-up. one can I Got it. If quick ask

expectations? December the bit little the the you quarter, actually did any was how actually a or and talked You weather, IV lower did there your anything a it numbers drag guidance, this like it shape Like think because but it volumes form your your affect in procedure bags your way, -- expected how -- and about about that? or as of like didn't,

elective little conservative but some to second in we they a have expecting amount currently quarter depending health really status it material various of in locations, they Kevin, in each -- will manage on be it was to regionally that product of their individual and inventory had system terms the aware where aren't procedures, varies had are but of the procedures Yes. our impact performance. on of we a more that

next The Richard Genuity. with comes Close question from Canaccord

services can up GPO this Penny This John come regard? with there I potentially in for cross-sell contract how renewals in is on Close. you question, like other movement the guess, renewals, been to Richard as the it's discuss that trying Any quarter? first and

Yes.

thank So you.

that's to we're it's fact, teams that we for the going this, an create. they ensure while understand And obviously, actually us time to what's happening. spend can the So opportunity through executive with value in

help as health through the contract and day, we're renewals, more been help them -- patients. caring how use services, ways capability the significant these percent on very, looking our as they're technologies we've years. to lot we these at cross us that technology for because what we systems for are sell, efficient our be But to of terms at very the total obviously, in end they're talking do that entering for value, of see for to opportunities high our a cost advisory them additional about are look looking renewals including for bend care can value also total of in So you supplies them and of the to and really for

this EBITDA to the there I in against commentary anything being margin was Or correct, like -- expectation? follow-up. like like to low around chain if number Great. then right. adjusted any your above The it segment last sustainable just like XX%. EBITDA mid-XXs, of why -- you're is is was this getting a I'm believe level? supply talking Chain there All Supply And one quarter

Yes.

As Global discontinued a SXS in quarter. business first reminder, the the we've

in segment it would in of indicative that XX% expect of fiscal for business, EBITDA the the saw the XXXX. margin really a you that So level sort so low-margin affected is QX we the was range and

XXXX would to on we a margins ballpark in fiscal of XX% expect have So sort that basis.

Davis The next question Barclays. Stephanie comes with from

missed. Craig, And be you so will

is get do fantastic about in. Glenn to going job me Stephanie, a to

a not I I'm going miss to distant happy either you and hope calls, in lot, we're hours. are earnings sure going you're you miss but to

you Thank much. very

So Mike, remarks lot of prepared the AI. a talking about

out call called it all You SDF. having And chain license sales in in then of supply Remitra segments. upside Craig

to gotten can think items, you're through it list? that that So in investments your right with and tech the And into done walk chain of reshuffling top to business. your the if in the forward, so, what's is to wish just going you're supply us kind right now businesses for lean the you

yes, Yes, Stephanie. of yes. technology, too yes. chain, supply jumped I a there a early if be bit if -- And I there in I apologize must I apologize delay,

around making capability buys and to investment for look system do, obviously, that we've that. e-invoicing significant contracts a but in invoicing health So at and e-payables, is that to the us put everything been allows care

talked So Spire that's quarter, really, win. about all really the -- important. the Number we last two,

where at a identify So cost. volumes of number systems of ERPs that opportunities kinds and of price are care can there's reduce from spend, these layer was to ways their a came a those of top supply technology parity there contract standpoint, all where that pull overall together to things. win look to Well, on health that

So the it process. in our but believe, and together that managing only help contract us continue struggling obviously, differentiate pull IDNs as to revenue, we evolve us market. as invoice to care therefore, that systems their also with entire entities large is a health more still critical those not models and drive for differentiator, well penetration obviously, are

that looking excited that very about market. for for to the penetrate So investment that forward to and continue

of I guess the the have supply and chain part on last tech side follow-up a it.

dynamic and branded But trying vendor You product prime you've in -- medical sales. leading the acknowledging own a of seen side their distributors. that to of distributors have I'm co-optation to are a relationship more lot seeing and there's this GPOs between

are these more a that thinking a of try with was how direct dynamics? business? relationship? bit How players working they going about are to kind with head-to-head be competitive more you little And as those you So of your

Yes.

the with work we very distributors. So closely actually,

As label programs building that this of those number been there private been our things. they've -- on those on going current a of out of and for has their years Obviously, and kinds are contracts. many

in the care that So partnerships important two, the area. trading it think partner we -- as the really we differentiate program, nonacute they're example, areas, for value have distributor about And similarly, truly do we of obviously, the we our does very, into other systems. create can lean for in we health that food ours. Number then very

strong those care. value we We health there players non-acute have create with very differentiated for distributor partnerships in a where

So where care sense. ecosystem, a Stephanie, do we it have scale different but interesting, kind playbook, health on of want basically leverage where it's they within to play the makes we depending their

Quarter Premier's question-and-answer Thank for our today's First you and XXXX concludes presentation. Conference Fiscal This attending Call. session

may now disconnect. You