Welcome!

Microsoft Cloud Authors: Pat Romanski, Elizabeth White, Liz McMillan, Mihai Corbuleac, David Bermingham

News Feed Item

Hillenbrand Fourth-Quarter Revenue Increased 10% to $254 Million

-- Process Equipment Group revenue grew 33% to $102 million (10% organic)

BATESVILLE, Ind., Nov. 26, 2012 /PRNewswire/ -- Hillenbrand (NYSE: HI) revenue for the fourth quarter of 2012 grew 10% to $254 million compared to the same quarter last year. This represents 11% revenue growth on a constant currency basis. This was driven by Process Equipment Group revenue growth of 33% to $102 million (10% organic growth). The group's order backlog was $121 million, representing a sequential decline from $140 million in the third quarter, but consistent with prior year backlog of $119 million. As in the prior year, several large orders shipped during the quarter, reducing the backlog balance.

Due to an estimated 3% decrease in North American burials, Batesville revenue dropped 2% to $152 million. The decline in burials was driven by an estimated 1% decrease in North American deaths compared to the same quarter last year, as well as an increase in the rate at which consumers opted for cremation. 

Consolidated gross profit margin in the fourth quarter was 39.5% compared to 39.2% in the prior year. On an adjusted basis, which excludes restructuring charges and inventory step-up charges related to the Rotex acquisition, the consolidated gross profit margin was 39.8%, a 60 basis point decline over the prior year. The decrease was largely driven by volume declines at the Batesville business platform.

Net income for the fourth quarter increased 6% over the prior year to $25 million, with diluted EPS up 5% to $0.40. On an adjusted basis, net income increased 6% to $31 million and diluted EPS increased 4% to $0.50, as continued strong growth from the Process Equipment Group was offset in part by lower Batesville volumes. EBITDA was $47 million, a 6% increase from the prior year.  On an adjusted basis, EBITDA increased by 8% to $57 million. Hillenbrand once again delivered strong cash flow from operations, reporting $29 million compared to $34 million last year.

"We continue to be pleased with the outstanding performance of the Process Equipment Group and believe that it illustrates both the importance, and the success, of our growth strategy," said Kenneth A. Camp, president and chief executive officer of Hillenbrand. "We have been able to offset the challenges Batesville has faced in 2012 by leveraging our consistent strong cash flow from both business platforms to grow our business organically and through acquisitions. The recently announced acquisition of Coperion marks a critical and significant strategic step forward for our company and our shareholders." 

Year-to-Date Summary
For the year ended September 30, 2012, Hillenbrand's revenue increased 11% over the prior year to $983 million. This represents 12% revenue growth on a constant currency basis. Gross profit margin was 39.6% (40.0% adjusted) compared to 41.9% (42.2% adjusted) in the prior year. Other income and expense decreased $12 million largely due to the full collection of the Forethought Note in April 2011 ($6 million) and lower investment gains ($4 million). The decline in other income and expense drove lower net income of $105 million (1% decline) and diluted EPS of $1.68 (2% decline). On an adjusted basis, net income decreased 4% to $110 million ($1.76 per diluted share). EBITDA decreased 5% to $187 million from the prior year and 1% to $207 million on an adjusted basis. Cash flow from operations was $138 million compared to $190 million in the prior year, which included $60 million from the collection of the Forethought Note. 

Coperion Acquisition
As previously announced, Hillenbrand has entered into a definitive agreement to acquire privately held Coperion Capital GmbH (Coperion), a portfolio company of Deutsche Beteiligungs AG, for an estimated purchase price of €423 million ($550 million at current exchange rates), which includes the assumption of an estimated €91 million of net debt and €100 million of pension liabilities. The final price is subject to certain closing and post closing adjustments. The transaction is expected to close in early December 2012, depending upon satisfaction of certain conditions, including receipt of applicable regulatory approvals. The company will provide guidance for fiscal year 2013 after the Coperion transaction closes.

The company will host a conference call and simultaneous webcast Tuesday, November 27, at 8 a.m. ET to discuss the results for the fourth quarter of fiscal year 2012, which ended September 30, 2012. The webcast will be available at http://ir.hillenbrand.com and will be archived on the company's website through Tuesday, November 26, 2013. To access the conference call, listeners in the United States and Canada may dial 1-877-853-5642, and international callers may dial +1-253-237-1134. Use conference call ID number 43752338. A replay of the call will be available until midnight ET, Tuesday, December 11, 2012, by dialing 1-855-859-2056 toll free in the United States and Canada or +1-404-537-3406 internationally, and using the conference ID number 43752338.

Hillenbrand's financial statements on Form 10-K are expected to be filed jointly with this release and are available on the company's website (www.Hillenbrand.com).

Hillenbrand (www.Hillenbrand.com) is a global diversified industrial company that makes and sells premium business-to-business products and services for a wide variety of industries. We pursue profitable growth and meaningful dividends for our shareholders by leveraging our leading brands, robust cash generation capabilities and strong core competencies. HI-INC-F

Consolidated Statements of Income (Unaudited)

(in millions, except per share data)




Three Months Ended



Twelve Months Ended




September 30,



September 30,




2012



2011



2012



2011



















Net revenue


$

253.5



$

231.2



$

983.2



$

883.4


Cost of goods sold



153.4




140.5




594.3




513.5


       Gross profit



100.1




90.7




388.9




369.9


Operating expenses



61.5




56.9




240.1




211.3


       Operating profit



38.6




33.8




148.8




158.6


Interest expense



3.6




2.7




12.4




11.0


Other income (expense)



(0.7)




0.9




(1.5)




10.2


       Income before income taxes



34.3




32.0




134.9




157.8


Income tax expense



9.5




8.5




30.1




51.7


       Net income


$

24.8



$

23.5



$

104.8



$

106.1



















Basic earnings per share


$

0.40



$

0.38



$

1.68



$

1.71


Diluted earnings per share



0.40




0.38




1.68




1.71


Weighted average shares outstanding — basic



62.3




62.1




62.2




62.0


Weighted average shares outstanding — diluted



62.5




62.1




62.4




62.0


Cash dividends per share


$

0.1925



$

0.1900



$

0.77



$

0.76



















 

Condensed Consolidated Statements of Cash Flow (Unaudited)


(in millions)






Twelve Months Ended

September 30,




2012



2011


Net cash provided by operating activities


$

138.2



$

189.5


Net cash (used in) provided by investing activities



(22.5)




(154.5)


Net cash used in financing activities



(211.1)




(22.0)


Effect of exchange rate changes on cash and cash equivalents



0.1




4.1


Net cash flow



(95.3)




17.1











Cash and cash equivalents:









At beginning of period



115.5




98.4


At end of period


$

20.2



$

115.5











In addition to the financial measures prepared in accordance with accounting principles generally accepted in the U.S. (GAAP), this earnings release also contains non-GAAP financial measures. These non-GAAP measures are not in accordance with, nor are they a substitute for, GAAP measures. Hillenbrand uses this information internally and believes it is helpful to investors because it allows more meaningful period-to-period comparisons of our ongoing operating results. The information can also be used to perform trend analysis and to better identify operating trends that may otherwise be masked or distorted by these types of items. Finally, the company believes these non-GAAP measures provide a higher degree of transparency to the company's core operations.

We analyze net revenue on a constant currency basis to better measure the comparability of results between periods. We provide this information because exchange rates can distort the underlying change in sales, either positively or negatively. Organic revenue growth is defined as the year-over-year comparison of constant currency revenue with all acquired companies included in the base year. EBITDA is defined as net income less interest income, plus interest expense, income tax expense (benefit), depreciation and amortization.

Reconciliation of Non-GAAP Measures (Unaudited)

(in millions, except per share data)




Three Months Ended September 30, 2012



Three Months Ended September 30, 2011



Reported



Adjustments


Adjusted



Reported



Adjustments


Adjusted

Cost of goods sold


$

153.4



$

(0.7)


(a)

$

152.7



$

140.5



$

(2.8)


(b)

$

137.7

Gross profit



100.1




0.7




100.8




90.7




2.8




93.5

Operating expenses



61.5




(8.6)


(c)


52.9




56.9




(5.9)


(d)


51.0

Operating profit



38.6




9.3




47.9




33.8




8.7




42.5

Income tax expense



9.5




3.1


(e)


12.6




8.5




3.0


(e)


11.5

Net income



24.8




6.2




31.0




23.5




5.7




29.2

Diluted EPS



0.40




0.10




0.50




0.38




0.10




0.48



























Twelve Months Ended September 30, 2012



Twelve Months Ended September 30, 2011



Reported



Adjustments


Adjusted



Reported



Adjustments


Adjusted

Cost of goods sold


$

594.3



$

(4.2)


(a)

$

590.1



$

513.5



$

(2.8)


(b)

$

510.7

Gross profit



388.9




4.2




393.1




369.9




2.8




372.7

Operating expenses



240.1




(18.8)


(f)


221.3




211.3




(8.9)


(g)


202.4

Operating profit



148.8




23.0




171.8




158.6




11.7




170.3

Income tax expense



30.1




18.1


(h)


48.2




51.7




4.0


(g)


55.7

Net income



104.8




4.9




109.7




106.1




7.7




113.8

Diluted EPS



1.68




0.08




1.76




1.71




0.13




1.84

























(a)

Restructuring
























(b)

Inventory step-up

(c)

Antitrust litigation ($5.0), business acquisition ($3.0), restructuring ($0.6)

(d)

Business acquisition ($4.6), backlog amortization ($0.8), restructuring ($0.6), and sales tax recoveries ($0.1)

(e)

Tax effect of adjustments

(f)

Antitrust litigation ($5.5), restructuring ($4.3), business acquisition ($4.2), backlog amortization ($2.5), and
long-term incentive compensation related to the international integration ($2.2)

(g)

Restructuring ($1.3), antitrust litigation ($1.3), business acquisition costs ($6.3), backlog amortization ($0.8), and sales tax recoveries ($0.8)

(h)

Tax benefit of the international integration ($10.4) and tax effect of adjustments ($7.7)
























































Three Months Ended September 30,



Twelve Months Ended September 30,






2012



2011



2012



2011


GAAP net income


$

24.8



$

23.5



$

104.8



$

106.1



Interest income



(0.2)




(0.2)




(0.5)




(7.4)



Interest expense



3.6




2.7




12.4




11.0



Income tax expense



9.5




8.5




30.1




51.7



Depreciation and amortization



9.4




10.1




40.4




36.1


EBITDA


$

47.1



$

44.6



$

187.2



$

197.5



Antitrust litigation



5.0







5.5




1.3



Long-term incentive compensation



















related to the international integration









2.2






Restructuring



1.3




0.6




8.3




1.3



Inventory step-up






2.8







2.8



Business acquisition costs



3.0




4.6




4.2




6.3



Sales tax recoveries






(0.1)







(0.8)


EBITDA - adjusted


$

56.4



$

52.5



$

207.4



$

208.4



















Throughout this release, we make a number of forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. As the words imply, forward-looking statements are statements about the future, as contrasted with historical information. Our forward-looking statements are based on assumptions and current expectations of future events that we believe are reasonable, but by their very nature they are subject to a wide range of risks. If our assumptions prove inaccurate or unknown risks and uncertainties materialize, actual results could vary materially from Hillenbrand's expectations and projections.

Words that could indicate that we are making forward-looking statements include the following:

intend

believe

plan

expect

may

goal

would

become

pursue

estimate

will

forecast

continue

could

targeted

encourage

promise

improve

progress

potential

should

This is not an exhaustive list. Our intent is to provide examples of how readers might identify forward-looking statements. The absence of any of these words, however, does not mean that the statement is not forward-looking.

Here is the key point: Forward-looking statements are not guarantees of future performance, and our actual results could differ materially from those set forth in any forward-looking statements. Any number of factors, many of which are beyond our control, could cause our performance to differ significantly from what is described in the forward-looking statements. These factors include, but are not limited to: the outcome of any legal proceedings that may be instituted against Hillenbrand, or any companies we may acquire; risks that an acquisition disrupts current operations or poses potential difficulties in employee retention or otherwise affects financial or operating results; the ability to recognize the benefits of an acquisition, including potential synergies and cost savings or the failure of an acquired company to achieve its plans and objectives generally; global market and economic conditions, including those related to the credit markets; volatility of our investment portfolio; adverse foreign currency fluctuations; ongoing involvement in claims, lawsuits and governmental proceedings related to operations; labor disruptions; the dependence of our business units on relationships with several large providers; increased costs or unavailability of raw materials; continued fluctuations in mortality rates and increased cremations; competition from nontraditional sources in the funeral services business; cyclical demand for industrial capital goods; and certain tax-related matters. For a more in-depth discussion of these and other factors that could cause actual results to differ from those contained in forward-looking statements, see the discussions under the heading "Risk Factors" in item 1A of Hillenbrand's Annual Report on Form 10-K for the year ended September 30, 2012, filed with the Securities and Exchange Commission on November 26, 2012. The company assumes no obligation to update or revise any forward-looking information.

SOURCE Hillenbrand

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform and how we integrate our thinking to solve complicated problems. In his session at 19th Cloud Expo, Craig Sproule, CEO of Metavine, will demonstrate how to move beyond today's coding paradigm ...
Internet of @ThingsExpo has announced today that Chris Matthieu has been named tech chair of Internet of @ThingsExpo 2016 Silicon Valley. The 6thInternet of @ThingsExpo will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
The cloud market growth today is largely in public clouds. While there is a lot of spend in IT departments in virtualization, these aren’t yet translating into a true “cloud” experience within the enterprise. What is stopping the growth of the “private cloud” market? In his general session at 18th Cloud Expo, Nara Rajagopalan, CEO of Accelerite, explored the challenges in deploying, managing, and getting adoption for a private cloud within an enterprise. What are the key differences between wh...
SYS-CON Events has announced today that Roger Strukhoff has been named conference chair of Cloud Expo and @ThingsExpo 2016 Silicon Valley. The 19th Cloud Expo and 6th @ThingsExpo will take place on November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. "The Internet of Things brings trillions of dollars of opportunity to developers and enterprise IT, no matter how you measure it," stated Roger Strukhoff. "More importantly, it leverages the power of devices and the Interne...
"We work in the area of Big Data analytics and Big Data analytics is a very crowded space - you have Hadoop, ETL, warehousing, visualization and there's a lot of effort trying to get these tools to talk to each other," explained Mukund Deshpande, head of the Analytics practice at Accelerite, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
The idea of comparing data in motion (at the sensor level) to data at rest (in a Big Data server warehouse) with predictive analytics in the cloud is very appealing to the industrial IoT sector. The problem Big Data vendors have, however, is access to that data in motion at the sensor location. In his session at @ThingsExpo, Scott Allen, CMO of FreeWave, discussed how as IoT is increasingly adopted by industrial markets, there is going to be an increased demand for sensor data from the outermos...
UAS, drones or unmanned aircraft, no matter what you call them — this was their week. Our news stream was flooded with updates on the newly announced rules and regulations for commercial UAS from the FAA. So, naturally we have dedicated this week’s top news round up to highlight some of our favorite UAS stories.
CenturyLink has announced that application server solutions from GENBAND are now available as part of CenturyLink’s Networx contracts. The General Services Administration (GSA)’s Networx program includes the largest telecommunications contract vehicles ever awarded by the federal government. CenturyLink recently secured an extension through spring 2020 of its offerings available to federal government agencies via GSA’s Networx Universal and Enterprise contracts. GENBAND’s EXPERiUS™ Application...
Basho Technologies has announced the latest release of Basho Riak TS, version 1.3. Riak TS is an enterprise-grade NoSQL database optimized for Internet of Things (IoT). The open source version enables developers to download the software for free and use it in production as well as make contributions to the code and develop applications around Riak TS. Enhancements to Riak TS make it quick, easy and cost-effective to spin up an instance to test new ideas and build IoT applications. In addition to...
In addition to all the benefits, IoT is also bringing new kind of customer experience challenges - cars that unlock themselves, thermostats turning houses into saunas and baby video monitors broadcasting over the internet. This list can only increase because while IoT services should be intuitive and simple to use, the delivery ecosystem is a myriad of potential problems as IoT explodes complexity. So finding a performance issue is like finding the proverbial needle in the haystack.
When people aren’t talking about VMs and containers, they’re talking about serverless architecture. Serverless is about no maintenance. It means you are not worried about low-level infrastructural and operational details. An event-driven serverless platform is a great use case for IoT. In his session at @ThingsExpo, Animesh Singh, an STSM and Lead for IBM Cloud Platform and Infrastructure, will detail how to build a distributed serverless, polyglot, microservices framework using open source tec...
Apixio Inc. has raised $19.3 million in Series D venture capital funding led by SSM Partners with participation from First Analysis, Bain Capital Ventures and Apixio’s largest angel investor. Apixio will dedicate the proceeds toward advancing and scaling products powered by its cognitive computing platform, further enabling insights for optimal patient care. The Series D funding comes as Apixio experiences strong momentum and increasing demand for its HCC Profiler solution, which mines unstruc...
The IoT is changing the way enterprises conduct business. In his session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, discussed how businesses can gain an edge over competitors by empowering consumers to take control through IoT. He cited examples such as a Washington, D.C.-based sports club that leveraged IoT and the cloud to develop a comprehensive booking system. He also highlighted how IoT can revitalize and restore outdated business models, making them profitable ...
Presidio has received the 2015 EMC Partner Services Quality Award from EMC Corporation for achieving outstanding service excellence and customer satisfaction as measured by the EMC Partner Services Quality (PSQ) program. Presidio was also honored as the 2015 EMC Americas Marketing Excellence Partner of the Year and 2015 Mid-Market East Partner of the Year. The EMC PSQ program is a project-specific survey program designed for partners with Service Partner designations to solicit customer feedbac...
IoT offers a value of almost $4 trillion to the manufacturing industry through platforms that can improve margins, optimize operations & drive high performance work teams. By using IoT technologies as a foundation, manufacturing customers are integrating worker safety with manufacturing systems, driving deep collaboration and utilizing analytics to exponentially increased per-unit margins. However, as Benoit Lheureux, the VP for Research at Gartner points out, “IoT project implementers often ...
"delaPlex is a software development company. We do team-based outsourcing development," explained Mark Rivers, COO and Co-founder of delaPlex Software, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
In his general session at 18th Cloud Expo, Lee Atchison, Principal Cloud Architect and Advocate at New Relic, discussed cloud as a ‘better data center’ and how it adds new capacity (faster) and improves application availability (redundancy). The cloud is a ‘Dynamic Tool for Dynamic Apps’ and resource allocation is an integral part of your application architecture, so use only the resources you need and allocate /de-allocate resources on the fly.
Connected devices and the industrial internet are growing exponentially every year with Cisco expecting 50 billion devices to be in operation by 2020. In this period of growth, location-based insights are becoming invaluable to many businesses as they adopt new connected technologies. Knowing when and where these devices connect from is critical for a number of scenarios in supply chain management, disaster management, emergency response, M2M, location marketing and more. In his session at @Th...
Machine Learning helps make complex systems more efficient. By applying advanced Machine Learning techniques such as Cognitive Fingerprinting, wind project operators can utilize these tools to learn from collected data, detect regular patterns, and optimize their own operations. In his session at 18th Cloud Expo, Stuart Gillen, Director of Business Development at SparkCognition, discussed how research has demonstrated the value of Machine Learning in delivering next generation analytics to imp...
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life sett...