Indiana
(State or other jurisdiction of incorporation)
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1-6651
(Commission File Number)
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35-1160484
(IRS Employer Identification No.)
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1069 State Route 46 East
Batesville, Indiana
(Address of principal executive offices)
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47006
(Zip Code)
|
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(812) 934-7777
(Registrant’s telephone number, including area code)
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(d)
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Exhibits.
|
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99.1
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Press release, dated April 24, 2013, issued by the Corporation.
|
HILL-ROM HOLDINGS, INC.
|
||||
(Registrant)
|
||||
Date: April 25, 2013
|
By:
|
/s/ Mark J. Guinan
|
||
Name:
Title:
|
Mark J. Guinan
Senior Vice President and
Chief Financial Officer
(duly authorized officer and
principal financial officer)
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Exhibit Number
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Exhibit Description
|
|
99.1
|
Press release, dated April 24, 2013, issued by the Corporation.
|
Investor Relations
|
|
Contact:
|
Blair A. (Andy) Rieth, Jr., Vice President, Investor Relations
|
Phone:
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812-931-2199
|
Email:
|
andy.rieth@hill-rom.com
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Media
|
|
Contact:
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Larry Baumann, Director, Corporate Communications
|
Phone:
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312-819-7248
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Email:
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larry.baumann@hill-rom.com
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HILL-ROM REPORTS FISCAL SECOND QUARTER ADJUSTED
EARNINGS PER SHARE IN LINE WITH EXPECTATIONS; PROVIDES THIRD QUARTER AND UPDATED FULL-YEAR
FINANCIAL OUTLOOK
|
|
·
|
Second quarter revenue of $426 million grew 3 percent versus prior year
|
|
·
|
Adjusted diluted earnings per share for the second quarter decreased 17 percent to $0.49 compared to $0.59 in the prior year
|
|
·
|
Reported diluted earnings per share for the second quarter decreased 8 percent to $0.37 compared to $0.40 in the prior year
|
|
·
|
Year to date adjusted EBITDA of $150 million compares to $157 million in the prior year
|
|
·
|
Financial guidance: Full year reported revenue is now expected to increase 5 to 6 percent with adjusted earnings per share to be $2.03 to $2.09; Full year adjusted EBITDA is now expected to be $315 to $320 million
|
--
|
Year to date operating cash flow was $113 million, compared to $124 million in the prior year, down primarily on lower net income.
|
--
|
Year to date adjusted EBITDA was $150 million, compared to $157 million in the prior year.
|
--
|
Year to date share repurchases amounted to approximately $44 million.
|
--
|
During the quarter, the Company implemented a restructuring action in order to reduce fixed costs and streamline operations. The action included the elimination of approximately 100 positions, consolidation of select operations and a product discontinuation. The Company anticipates incurring pre-tax charges in connection with the restructuring totaling approximately $5 to $7 million during 2013, of which $3 million, or $0.03 per diluted share, was recorded in the second quarter. The restructuring action is anticipated to yield annualized savings of approximately $8 million after full implementation.
|
|
·
|
organic constant currency revenue decline of 3 to 4 percent;
|
|
·
|
no material currency impact at current rates; and
|
|
·
|
incremental revenue from fiscal 2012 acquisitions of approximately $145 million.
|
|
·
|
organic constant currency revenue decline of approximately 3 percent;
|
|
·
|
no material currency impact at current rates; and
|
|
·
|
incremental revenue from fiscal 2012 acquisitions of approximately $35 million.
|
Hill-Rom Holdings, Inc. and Subsidiaries
|
Condensed Consolidated Statements of Income
|
(Dollars in millions except per share data)
|
Quarter Ended March 31
|
Year To Date Ended March 31
|
|||||||||||||||
2013
|
2012
|
2013
|
2012
|
|||||||||||||
Net revenues
|
||||||||||||||||
Capital sales
|
$ | 318.3 | $ | 300.6 | $ | 642.7 | $ | 567.5 | ||||||||
Rental revenues
|
107.4 | 114.5 | 211.4 | 228.7 | ||||||||||||
Total revenues
|
425.7 | 415.1 | 854.1 | 796.2 | ||||||||||||
Cost of revenues
|
||||||||||||||||
Cost of goods sold
|
181.7 | 169.3 | 370.6 | 317.0 | ||||||||||||
Rental expenses
|
47.9 | 50.0 | 96.0 | 98.3 | ||||||||||||
Total cost of revenues
|
229.6 | 219.3 | 466.6 | 415.3 | ||||||||||||
Gross profit
|
||||||||||||||||
Capital
|
136.6 | 131.3 | 272.1 | 250.5 | ||||||||||||
Rental
|
59.5 | 64.5 | 115.4 | 130.4 | ||||||||||||
Total gross profit
|
196.1 | 195.8 | 387.5 | 380.9 | ||||||||||||
As a percentage of sales
|
46.1 | % | 47.2 | % | 45.4 | % | 47.8 | % | ||||||||
Research and development expenses
|
18.3 | 16.8 | 35.5 | 32.1 | ||||||||||||
Selling and administrative expenses
|
141.4 | 125.6 | 278.5 | 245.8 | ||||||||||||
Impairment of other intangibles
|
- | 8.0 | - | 8.0 | ||||||||||||
Special charges
|
2.9 | 8.0 | 2.9 | 8.0 | ||||||||||||
Operating profit
|
33.5 | 37.4 | 70.6 | 87.0 | ||||||||||||
Other income/(expense), net
|
(3.5 | ) | (0.6 | ) | (5.3 | ) | (1.8 | ) | ||||||||
Income tax expense
|
7.7 | 11.5 | 19.0 | 27.0 | ||||||||||||
Net income
|
$ | 22.3 | $ | 25.3 | $ | 46.3 | $ | 58.2 | ||||||||
Diluted earnings per share
|
$ | 0.37 | $ | 0.40 | $ | 0.76 | $ | 0.93 | ||||||||
Average common shares outstanding - diluted (thousands)
|
60,612 | 62,546 | 60,818 | 62,385 | ||||||||||||
Dividends per common share
|
$ | 0.1250 | $ | 0.1250 | $ | 0.2500 | $ | 0.2375 |
Hill-Rom Holdings, Inc. and Subsidiaries
|
Revenues - Constant Currency
|
(Dollars in millions)
|
Quarter Ended March 31
|
||||||||||||||||||||
2013
|
Foreign Exchange
|
2013
|
2012
|
Constant Currency
|
||||||||||||||||
As Reported
|
Impact
|
Adjusted
|
As Reported
|
Change
|
||||||||||||||||
Capital sales
|
$ | 318.3 | $ | - | $ | 318.3 | $ | 300.6 | 5.9 | % | ||||||||||
Rental revenues
|
107.4 | - | 107.4 | 114.5 | -6.2 | % | ||||||||||||||
Total
|
$ | 425.7 | $ | - | $ | 425.7 | $ | 415.1 | 2.6 | % | ||||||||||
North America
|
$ | 239.7 | $ | (0.3 | ) | $ | 240.0 | $ | 255.3 | -6.0 | % | |||||||||
Surgical and Respiratory Care
|
61.2 | - | 61.2 | 33.9 | 80.5 | % | ||||||||||||||
International
|
124.8 | 0.3 | 124.5 | 125.9 | -1.1 | % | ||||||||||||||
Total
|
$ | 425.7 | $ | - | $ | 425.7 | $ | 415.1 | 2.6 | % |
Year To Date Ended March 31
|
||||||||||||||||||||
2013 |
Foreign Exchange
|
2013 | 2012 |
Constant Currency
|
||||||||||||||||
As Reported
|
Impact
|
Adjusted
|
As Reported
|
Change
|
||||||||||||||||
Capital sales
|
$ | 642.7 | $ | (1.7 | ) | $ | 644.4 | $ | 567.5 | 13.6 | % | |||||||||
Rental revenues
|
211.4 | (0.2 | ) | 211.6 | 228.7 | -7.5 | % | |||||||||||||
Total
|
$ | 854.1 | $ | (1.9 | ) | $ | 856.0 | $ | 796.2 | 7.5 | % | |||||||||
North America
|
$ | 474.4 | $ | - | $ | 474.4 | $ | 507.7 | -6.6 | % | ||||||||||
Surgical and Respiratory Care
|
120.2 | 0.1 | 120.1 | 65.9 | 82.2 | % | ||||||||||||||
International
|
259.5 | (2.0 | ) | 261.5 | 222.6 | 17.5 | % | |||||||||||||
Total
|
$ | 854.1 | $ | (1.9 | ) | $ | 856.0 | $ | 796.2 | 7.5 | % |
Hill-Rom Holdings, Inc. and Subsidiaries
|
||||||||||||
Reconciliation: Earnings Per Share
|
||||||||||||
(Dollars in millions except per share data)
|
Quarter Ended March 31, 2013
|
Quarter Ended March 31, 2012
|
|||||||||||||||||||||||
Income Before
Income Taxes |
Income Tax
Expense |
Diluted EPS*
|
Income Before
Income Taxes |
Income Tax Expense
|
Diluted EPS
|
|||||||||||||||||||
GAAP Earnings
|
$ | 30.0 | $ | 7.7 | $ | 0.37 | $ | 36.8 | $ | 11.5 | $ | 0.40 | ||||||||||||
Adjustments:
|
||||||||||||||||||||||||
Acquisition and integration costs
|
2.2 | 0.7 | 0.02 | 1.9 | 0.3 | 0.03 | ||||||||||||||||||
Field corrective actions
|
5.2 | 1.9 | 0.05 | - | - | - | ||||||||||||||||||
FDA remediation expenses
|
1.9 | 0.7 | 0.02 | - | - | - | ||||||||||||||||||
Litigation
|
(0.5 | ) | 0.1 | (0.01 | ) | - | - | - | ||||||||||||||||
Special charges
|
2.9 | 1.0 | 0.03 | 8.0 | 3.0 | 0.08 | ||||||||||||||||||
Impairment of other intangibles
|
- | - | - | 8.0 | 2.1 | 0.09 | ||||||||||||||||||
Vendor product recall
|
- | - | - | (1.0 | ) | (0.4 | ) | (0.01 | ) | |||||||||||||||
Adjusted Earnings
|
$ | 41.7 | $ | 12.1 | $ | 0.49 | $ | 53.7 | $ | 16.5 | $ | 0.59 |
Year To Date Ended March 31, 2013
|
Year To Date Ended March 31, 2012
|
|||||||||||||||||||||||
Income Before
Income Taxes |
Income Tax
Expense |
Diluted EPS*
|
Income Before
Income Taxes |
Income Tax
Expense |
Diluted EPS*
|
|||||||||||||||||||
GAAP Earnings
|
$ | 65.3 | $ | 19.0 | $ | 0.76 | $ | 85.2 | $ | 27.0 | $ | 0.93 | ||||||||||||
Adjustments:
|
||||||||||||||||||||||||
Acquisition and integration costs
|
5.7 | 1.9 | 0.06 | 3.6 | 0.8 | 0.04 | ||||||||||||||||||
Field corrective actions
|
7.7 | 2.8 | 0.08 | - | - | - | ||||||||||||||||||
FDA remediation expenses
|
1.9 | 0.7 | 0.02 | - | - | - | ||||||||||||||||||
Litigation
|
0.5 | 0.5 | - | - | - | - | ||||||||||||||||||
Special charges
|
2.9 | 1.0 | 0.03 | 8.0 | 3.0 | 0.08 | ||||||||||||||||||
Impairment of other intangibles
|
- | - | - | 8.0 | 2.1 | 0.09 | ||||||||||||||||||
Vendor product recall
|
- | - | - | (3.1 | ) | (1.2 | ) | (0.03 | ) | |||||||||||||||
Adjusted Earnings
|
$ | 84.0 | $ | 25.9 | $ | 0.96 | $ | 101.7 | $ | 31.7 | $ | 1.12 |
Reconciliation: Adjusted EBITDA
|
||||||||||||||||||||||||
(Dollars in millions)
|
||||||||||||||||||||||||
Quarter Ended March 31
|
Year To Date Ended March 31
|
|||||||||||||||||||||||
2013
|
2012
|
2013
|
2012
|
|||||||||||||||||||||
Adjusted income before income taxes
|
$ | 41.7 | $ | 53.7 | $ | 84.0 | $ | 101.7 | ||||||||||||||||
Add back:
|
||||||||||||||||||||||||
Other expense
|
3.5 | 0.6 | 5.3 | 1.8 | ||||||||||||||||||||
Depreciation and amortization
|
29.1 | 27.1 | 60.2 | 53.7 | ||||||||||||||||||||
Adjusted EBITDA
|
$ | 74.3 | $ | 81.4 | $ | 149.5 | $ | 157.2 |
Hill-Rom Holdings, Inc. and Subsidiaries
|
||||||
Condensed Consolidated Balance Sheets
|
||||||
(Dollars in millions)
|
March 31, 2013
|
September 30, 2012
|
|||||||
Assets
|
||||||||
Current Assets
|
||||||||
Cash and cash equivalents
|
$ | 87.3 | $ | 84.3 | ||||
Trade accounts receivable, net of allowances
|
359.3 | 392.6 | ||||||
Inventories, net
|
130.5 | 126.9 | ||||||
Other current assets
|
82.9 | 78.0 | ||||||
Total current assets
|
660.0 | 681.8 | ||||||
Property, plant and equipment, net
|
241.2 | 250.1 | ||||||
Goodwill
|
338.6 | 335.2 | ||||||
Other assets
|
332.0 | 360.5 | ||||||
Total Assets
|
$ | 1,571.8 | $ | 1,627.6 | ||||
Liabilities
|
||||||||
Current Liabilities
|
||||||||
Trade accounts payable
|
$ | 74.2 | $ | 80.7 | ||||
Short-term borrowings
|
95.1 | 115.2 | ||||||
Other current liabilities
|
180.2 | 182.2 | ||||||
Total current liabilities
|
349.5 | 378.1 | ||||||
Long-term debt
|
232.1 | 237.5 | ||||||
Other long-term liabilities
|
179.9 | 199.4 | ||||||
Total Liabilities
|
761.5 | 815.0 | ||||||
Shareholders' Equity
|
810.3 | 812.6 | ||||||
Total Liabilities and Shareholders' Equity
|
$ | 1,571.8 | $ | 1,627.6 |
Hill-Rom Holdings, Inc. and Subsidiaries
|
||||||
Condensed Consolidated Statements of Cash Flows
|
||||||
(Dollars in millions)
|
Year To Date Ended March 31
|
||||||||
2013
|
2012
|
|||||||
Operating Activities
|
||||||||
Net income
|
$ | 46.3 | $ | 58.2 | ||||
Adjustments to reconcile net income to net cash provided by
|
||||||||
operating activities:
|
||||||||
Depreciation
|
36.9 | 36.9 | ||||||
Amortization
|
23.3 | 16.8 | ||||||
Provision for deferred income taxes
|
(9.4 | ) | (4.0 | ) | ||||
Loss on disposal of property, equipment leased to others,
|
||||||||
intangible assets and impairments
|
0.3 | 7.8 | ||||||
Stock compensation
|
7.6 | 6.4 | ||||||
Excess tax benefits from employee stock plans
|
(0.3 | ) | (0.9 | ) | ||||
Change in working capital excluding cash, current investments,
|
||||||||
current debt and acquisitions and dispositions:
|
||||||||
Trade accounts receivable
|
33.3 | 34.6 | ||||||
Inventories
|
(3.8 | ) | (0.4 | ) | ||||
Other current assets
|
(7.8 | ) | (0.2 | ) | ||||
Trade accounts payable
|
(6.5 | ) | (5.1 | ) | ||||
Accrued expenses and other liabilities
|
(3.1 | ) | (23.9 | ) | ||||
Other, net
|
(4.1 | ) | (2.6 | ) | ||||
Net cash provided by operating activities
|
112.7 | 123.6 | ||||||
Investing Activities
|
||||||||
Capital expenditures and purchase of intangibles
|
(34.4 | ) | (39.3 | ) | ||||
Proceeds on sale of property and equipment leased to others
|
4.8 | 6.4 | ||||||
Payment for acquisition of businesses, net of cash acquired
|
(0.2 | ) | (77.0 | ) | ||||
Proceeds on investment sales and maturities
|
- | 0.9 | ||||||
Net cash used in investing activities
|
(29.8 | ) | (109.0 | ) | ||||
Financing Activities
|
||||||||
Net change in short-term debt
|
- | (7.6 | ) | |||||
Net change in revolver
|
(20.0 | ) | - | |||||
Payment of long-term debt
|
(5.3 | ) | (47.4 | ) | ||||
Purchase of noncontrolling interest
|
(1.0 | ) | (1.0 | ) | ||||
Payment of cash dividends
|
(15.0 | ) | (14.7 | ) | ||||
Proceeds on exercise of options
|
5.0 | 3.8 | ||||||
Proceeds from stock issuance
|
1.3 | 1.6 | ||||||
Excess tax benefits from employee stock plans
|
0.3 | 0.9 | ||||||
Treasury stock acquired
|
(44.0 | ) | (1.8 | ) | ||||
Net cash used in financing activities
|
(78.7 | ) | (66.2 | ) | ||||
Effect of exchange rate changes on cash
|
(1.2 | ) | 1.7 | |||||
Net Cash Flows
|
3.0 | (49.9 | ) | |||||
Cash and Cash Equivalents:
|
||||||||
At beginning of period
|
84.3 | 224.6 | ||||||
At end of period
|
$ | 87.3 | $ | 174.7 |