Navigation Links
Hill-Rom Reports Fiscal First Quarter Results; Updates 2013 Financial Outlook For R&D Tax Credit Reinstatement

BATESVILLE, Ind., Jan. 23, 2013 /PRNewswire/ -- Hill-Rom Holdings, Inc. (NYSE: HRC) announced financial results for its fiscal first quarter ended December 31, 2012 and updated its outlook for 2013 to include the impact of the recently reinstated R&D tax credit.  Adjusted earnings per diluted share decreased 11 percent to $0.47 from $0.53 due to lower gross margin, driven by adverse product and geographic mix, along with increased investment in research and development and higher operating expenses associated with recently acquired businesses, including intangible amortization.  Reported earnings per diluted share also decreased to $0.39 from $0.53 in the prior year.
Adjustments to reported earnings relate to costs associated with recent acquisitions, including the step-up of acquired inventories, additional costs related to field corrective actions, a litigation charge and gains associated with a vendor product recall.  See detail in the attached schedule.

(Logo: )

Hill-Rom's quarterly reported revenue of $428 million increased 12 percent compared to last year or 13 percent on a constant currency basis.  Excluding the impact of currency and acquisitions, revenue declined approximately 2 percent.  Domestic revenue was essentially flat at $273 million, while revenue outside the United States increased 42 percent to $155 million in the same period (44 percent on a constant currency basis). 

Management Comments"Despite a year over year revenue decline in our core capital business in North America, we delivered revenue and adjusted earnings ahead of our expectations," stated John J. Greisch, President and CEO.  "We are pleased with improved operating cash flow in this challenging environment and we are committed to a continuing focus on operational efficiencies to drive sustainable, long term margin improvement."

Financial and Operational Highlights -- First quarter revenue highlights include:

-- North America.  North America revenue declined 7 percent to $235 million.  Capital sales declined 6 percent due primarily to a 10 percent decline in patient support systems revenue, partially offset by growth in certain other capital categories.  Rental revenue declined 9 percent. 

-- International.  International segment revenue, excluding Volker, increased 14 percent on a constant currency basis due primarily to growth in Latin America and the Middle East.
International revenue, including Volker, increased 39 percent to $135 million, or 42 percent on a constant currency basis. 

-- Surgical/Respiratory Care.  Surgical/Respiratory Care revenue increased 84 percent to $59 million, due to the addition of the Aspen Surgical business.  Excluding Aspen Surgical, segment revenue decreased 5 percent on lower respiratory care revenues.

-- Operating cash flow for the quarter was $65 million, compared to $62 million in the prior year.

-- Adjusted EBITDA for the quarter was $75 million, compared to $76 million in the prior year.

Please see the attached schedules for additional information, including condensed financial information, summary balance sheet, cash flow statement and reconciliations of GAAP to adjusted financial measures. 

For a more complete review of Hill-Rom's results, please refer to our Quarterly Report on Form 10-Q for the quarter ended December 31, 2012.

Financial Guidance Summary Consistent with prior guidance, for full year fiscal 2013, Hill-Rom expects reported revenue growth of 7 to 8 percent.  This reflects:

  • organic constant currency revenue decline of 1 to 2 percent;
  • no material currency impact at current rates; and
  • incremental revenue from fiscal 2012 acquisitions of approximately $145 million.
  • For the full year, adjusted earnings per share guidance is unchanged except for the impact of the reinstatement of the R&D tax credit.
    Adjusted earnings per diluted share are now expected to be $2.01 to $2.11, including $0.03 related to the current year tax credit and $0.03 related to the prior year credit to be recognized in the second quarter.

    Cash flow from operations for the full year is now expected to be approximately $270 to $280 million, up $5 million from our previous guidance.  Adjusted EBITDA is unchanged at $315 to $325 million.

    For the second quarter of fiscal 2013, Hill-Rom expects reported revenue growth of 4 to 5 percent.  This reflects:

  • organic constant currency revenue decline of approximately 5 percent;
  • no material currency impact at current rates; and
  • incremental revenue from fiscal 2012 acquisitions of approximately $45 million. 
  • Adjusted earnings per diluted share are expected to be $0.48 to $0.50 for the quarter. 

    Additional assumptions and discussion will be provided during the Company's conference call to be held tomorrow morning.  Information to access the webcast is provided below.

    Discussion of Adjusted Financial MeasuresHill-Rom Holdings, Inc. routinely provides earnings per share results and guidance on an adjusted basis because the Company's management believes that the presentation provides useful information to investors.  In addition, we are providing adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA).  These measures exclude strategic developments, special charges and the impact of significant litigation or other unusual events.  Such items may be highly variable, difficult to predict and of a size that sometimes have substantial impact on the Company's reported operations for a period. Often, prospective quantification of such items is not feasible.  Management uses these measures internally for planning, forecasting and evaluating the performance of the business. Investors should consider non-GAAP measures in addition to, not as a substitute for, or as superior to, measures of financial performance prepared in accordance with GAAP.

    Reconciliations of GAAP measures to adjusted measures appear in the financial tables of this release.

    Conference Call Webcast and Dial-in InformationAs previously announced, the Company will host a conference call and webcast tomorrow morning on Thursday, January 24, 2013, at 8:00 a.m. ET.

    Webcast: To join the live webcast with audio, go to or The webcast slide deck will be posted to the Hill-Rom website prior to the webcast.

    Conference Call Audio Only Dial-in information: To join the live conference call, dial 877-304-8969 domestic callers / 631-291-4543 international callers.  The following Confirmation Code is required for both: 83612495. Callers will need to provide their name, company affiliation and telephone number to the conference operator.  A recording of the webcast/call audio will be available for telephone replay through January 31, 2013, domestically at 855-859-2056 and internationally at 404-537-3406. For the replay, callers will need to use confirmation code 83612495. If you are unable to listen to the live webcast or the telephone replay, the webcast will be archived at

    ABOUT HILL-ROM HOLDINGS, INC. Hill-Rom is a leading worldwide manufacturer and provider of medical technologies and related services for the health care industry, including patient support systems, safe mobility and handling solutions, non-invasive therapeutic products for a variety of acute and chronic medical conditions, medical equipment rentals, surgical products and information technology solutions.  Hill-Rom's comprehensive product and service offerings are used by health care providers across the health care continuum and around the world in hospitals, extended care facilities and home care settings to enhance the safety and quality of patient care.

    Hill-Rom…enhancing outcomes for patients and their caregivers.

    Disclosure Regarding Forward-Looking Statements Certain statements herein contain forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, regarding the Company's future plans, objectives, beliefs, expectations, representations and projections. It is important to note that forward-looking statements are not guarantees of future performance, and the Company's actual results could differ materially from those set forth in any forward-looking statements. For a more in depth discussion of factors that could cause actual results to differ from those contained in forward-looking statements, see the discussions under the heading "Risk Factors" in the Company's previously filed most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q. The Company assumes no obligation to update or revise any forward-looking statements. Hill-Rom Holdings, Inc. and Subsidiaries  Condensed Consolidated Statements of Income  (Dollars in millions except per share data)  Quarter Ended December 31 20122011Net revenuesCapital sales

    $  324.4$  266.9Rental revenues

    104.0114.2Total revenues

    428.4381.1Cost of revenuesCost of goods sold

    188.9147.7Rental expenses

    48.148.3Total cost of revenues

    237.0196.0Gross profitCapital


    55.965.9Total gross profit

    191.4185.1As a percentage of sales

    44.7%48.6%Research and development expenses

    17.215.3Selling and administrative expenses

    136.1120.2Litigation charge

    1.0-Operating profit37.149.6Other income/(expense), net

    (1.8)(1.2)Income tax expense

    11.315.5Net income $
    32.9Diluted earnings per share:Earnings per share 

    .53Average common shares outstanding - diluted (thousands)61,10662,337Dividends per common share$0.1250$0.1125Non-GAAP Financial Disclosures and ReconciliationsWhile Hill-Rom reports financial results in accordance with U.S. GAAP, this press release includes non-GAAP measures. These non-GAAP measures are not in accordance with, nor are they a substitute for, GAAP measures. Hill-Rom uses the non-GAAP measures to evaluate and manage its operations and provides the information to assist investors in performing financial analysis that is consistent with financial models developed by research analysts. Investors should consider non-GAAP measures in addition to, not as a substitute for, or as superior to, measures of financial performance prepared in accordance with GAAP. Hill-Rom Holdings, Inc. and SubsidiariesRevenues - Constant Currency(Dollars in millions)Quarter Ended December 312012Foreign Exchange 20122011Constant CurrencyAs ReportedImpactAdjustedAs ReportedChangeCapital sales

    (1.7)$  326.1$
    266.922.2%Rental revenues

    (1.9)$  430.3$
    381.112.9%North America 

    .3$  234.4$
    252.4-7.1%Surgical and Respiratory Care 

    134.7(2.3)137.096.741.7%Total $
    (1.9)$  430.3$
    381.112.9% Hill-Rom Holdings, Inc. and SubsidiariesReconciliation: Earnings Per Share(Dollars in millions except per share data)Quarterly Period Ended December 31, 2012Quarterly Period Ended December 31, 2011Income Before
    Income TaxesIncome Tax
    ExpenseDiluted EPSIncome Before
    Income TaxesIncome Tax
    ExpenseDiluted EPSGAAP Earnings

    .53Adjustments:Acquisition and integration costs corrective action charge product recall

    ---(2.1)(0.8)(0.02)Adjusted Earnings

    .53Reconciliation: Adjusted EBITDA(Dollars in millions) Quarter Ended December 31 20122011Adjusted income before income taxes 

    48.0Add back:Other expense

    1.81.2Depreciation and amortization

    31.126.6Adjusted EBITDA

    75.8 Hill-Rom Holdings, Inc. and SubsidiariesCondensed Consolidated Balance Sheets(Dollars in millions)December 31, 2012September 30, 2012AssetsCurrent AssetsCash and cash equivalents

    84.3Trade accounts receivable, net of allowances

    373.1392.6Inventories, net

    122.7126.9Other current assets

    79.078.0Total current assets

    682.4681.8Property, plant and equipment, net


    342.5335.2Other assets

    344.6360.5Total Assets$
    ,627.6LiabilitiesCurrent LiabilitiesTrade accounts payable

    80.7Short-term borrowings

    115.2115.2Other current liabilities

    178.3182.2Total current liabilities

    371.7378.1Long-term debt

    234.6237.5Other long-term liabilities

    187.8199.4Total Liabilities794.1815.0Shareholders' Equity820.9812.6Total Liabilities and Shareholders' Equity$
    ,627.6Hill-Rom Holdings, Inc. and SubsidiariesCondensed Consolidated Statements of Cash Flows(Dollars in millions) Quarterly Period Ended December 31 20122011Operating ActivitiesNet income 

    $  24.0$  32.9Adjustments to reconcile net income to net cash provided byoperating activities:Depreciation and amortization

    31.126.6Provision for deferred income taxes

    (4.4)(3.6)Loss (gain) on disposal of property, equipment leased to others,intangible assets and impairments

    0.3(1.6)Stock compensation

    3.32.5Excess tax benefits from employee stock plans

    (0.1)(0.7)Change in working capital excluding cash, current investments,current debt and acquisitions and dispositions:Trade accounts receivable


    4.21.8Other current assets

    (4.7)16.5Trade accounts payable

    (2.5)(1.7)Accrued expenses and other liabilities

    (7.9)(43.5)Other, net

    2.0(1.9)Net cash provided by operating activities

    64.862.1Investing ActivitiesCapital expenditures and purchase of intangibles

    (16.5)(18.6)Proceeds on sale of property and equipment leased to others

    2.93.1Payment for acquisition of businesses, net of cash acquired

    (0.2)-Net cash used in investing activities

    (13.8)(15.5)Financing ActivitiesNet change in short-term debt

    -(3.8)Payment of long-term debt

    (2.8)(47.3)Purchase of noncontrolling interest

    (0.7)(0.7)Payment of cash dividends

    (7.5)(7.0)Proceeds on exercise of options

    2.52.1Proceeds from stock issuance

    0.70.9Excess tax benefits from employee stock plans

    0.10.7Treasury stock acquired

    (20.4)(1.7)Net cash used in financing activities

    (28.1)(56.8)Effect of exchange rate changes on cash

    0.4(0.5)Net Cash Flows23.3(10.7)Cash and Cash Equivalents:At beginning of period

    84.3224.6At end of period


    SOURCE Hill-Rom Holdings, Inc.
    Copyright©2012 PR Newswire.
    All rights reserved

    Related medicine technology :

    1. Hill-Rom Announces First Quarter 2013 Dividend
    2. Hill-Rom to Participate in the 24th Annual Piper Jaffray Healthcare Conference
    3. Hill-Rom Announces Fourth Quarter 2012 Dividend
    4. Hill-Rom to Participate in the Morgan Stanley Global Healthcare Conference
    5. RoundTable Healthcare Partners Announces Sale of Aspen Surgical Products Holding, Inc. to Hill-Rom Holdings, Inc.
    6. Hill-Rom Reports Fiscal Third Quarter Results; Announces Aspen Surgical Acquisition; Lowers Full Year Financial Outlook
    7. Hill-Rom Acquires Aspen Surgical Products
    8. Hill-Rom Holdings, Inc. Hosts Fiscal 2012 Third Quarter Earnings Conference Call and Webcast
    9. Hill-Rom Appoints Alton Shader President of Hill-Rom North America
    10. Hill-Rom to Participate in the Bank of America Merrill Lynch 2012 Health Care Conference
    11. Hill-Rom Announces Third Quarter 2012 Dividend
    Post Your Comments:
    (Date:10/12/2017)... -- AVACEN Medical , Inc. (AVACEN) announced that Frost ... Product Innovation Award for Its fibromyalgia pain management device. ... device market research by Frost & Sullivan,s industry experts. ... relief product, the AVACEN 100, offers a safe and effective ... ...
    (Date:10/11/2017)... Texas , Oct. 11, 2017  True ... services, has amplified its effort during National Breast ... about hereditary cancer risks. ... of Clinical Oncology calculated that more than 10 ... have inherited mutations in BRCA1 or BRCA2 and have ...
    (Date:10/5/2017)... , Oct. 5, 2017  In response to ... Oral and Maxillofacial Surgeons (AAOMS) released prescribing recommendations ... to be used as a first-line therapy to ... Recognizing the value ... White Paper "Opioid Prescribing: Acute and Postoperative Pain ...
    Breaking Medicine Technology:
    (Date:10/13/2017)... ... ... Yisrayl Hawkins, Pastor and Overseer at The House of Yahweh, has released a ... books in the Holy Scriptures, Revelation. The Book of Revelation paints a picture of ... have tossed it off as mere rubbish, but Yisrayl Hawkins says that is because ...
    (Date:10/13/2017)... ... ... Journey: From the Mountains to the Mission Field”: the story of a missionary couple ... From the Mountains to the Mission Field” is the creation of published author, Carole ... and currently teaches a class of ladies at her church, which she has taught ...
    (Date:10/12/2017)... Francisco, CA (PRWEB) , ... October 12, 2017 ... ... Dr. Cheng, are now treating sleep apnea using cutting-edge Oventus O2Vent ... apnea, a serious sleep disorder characterized by frequent cessation in breathing. Oral appliances ...
    (Date:10/12/2017)... (PRWEB) , ... October 12, 2017 , ... IsoComforter, Inc. ... products, announced today the introduction of an innovative new design of the shoulder pad. ... so you get maximum comfort while controlling your pain while using cold therapy. By ...
    (Date:10/12/2017)... (PRWEB) , ... October 12, 2017 , ... ... drug delivery system that we intend to develop to enable prevention of a ... lead to severe hearing loss, especially in pediatric patients. For cisplatin, hearing loss ...
    Breaking Medicine News(10 mins):