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