Hill-Rom Reports Third Quarter Financi...(rth America Post-Acute Care. Hill-Ro...),Health

Date:8/6/2009

rth America Post-Acute Care. Hill-Rom North America Post-Acute Care revenue was flat at $50.3 million. Capital sales revenue increased slightly offset by a moderate decline in rental revenue. Solid growth in our home care business was offset by continued weakness in extended care.

Other Third Quarter Financial and Operational Highlights

Gross Profit and Operating Expenses:

-- Hill-Rom gross profit declined 6.2 percent versus the prior year to $150.7 million. Capital gross profit declined by 15.0 percent and gross margin was down 120 basis points versus the prior year due primarily to costs related to performance issues associated with a discontinued product. Rental gross profit grew by 8.2 percent and associated gross margin improved 490 basis points, due primarily to the success of our new wound and bariatric products and significant cost improvements within the field service network.

-- Operating expenses declined $10.6 million, or 7.7 percent, despite the addition of Liko ($7.4 million of operating expenses). Operating expenses also declined sequentially. The decline was due to job elimination actions, volume-related compensation savings and other general and administrative cost reduction activities aimed at reducing core operating expenses, along with foreign exchange movements.

-- Adjusted pre-tax income from continuing operations increased 8.6 percent to $23.9 million despite the 8.8 percent revenue decline.

-- Hill-Rom free cash flow increased to $60.7 million, as strong expense controls, reduction in capital expenditures and working capital improvements have resulted in strong conversion to cash despite our capital sales decline. Prior year cash flows were also negatively impacted by the payment of expenses related to the separation of the funeral services business and higher international trade payables associa
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SOURCE Hill-Rom Holdings, Inc. Copyright©2009 PR Newswire. All rights reserved

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