|
|
|
|
|||
|
|
|
|
|||
Indiana
|
|
1-6651
|
|
35-1160484
|
||
(State or other jurisdiction
of incorporation) |
|
(Commission File Number)
|
|
(IRS Employer Identification No.)
|
||
|
|
|
||||
130 East Randolph Street
Suite 1000
Chicago, Illinois
|
|
60601 |
||||
(Address of principal executive offices)
|
|
(Zip Code)
|
Not applicable
|
(Former name or former address, if changed since last report)
|
☐
|
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
|
||
☐
|
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
|
||
☐
|
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
|
||
☐
|
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
|
||
☐
|
|
Emerging growth company (Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.b-2 of this chapter).
|
☐
|
|
If an emerging growth company, indicate by check mark of the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
|
99.2
|
|
Exhibit No.
|
|
Description
|
99.1
|
|||
99.2
|
HILL-ROM HOLDINGS, INC.
|
|||
Date: January 26, 2018
|
By:
|
/s/ Steven J. Strobel | |
Name: | Steven J. Strobel | ||
Title: |
Senior Vice President and Chief Financial
Officer (duly authorized officer and principal financial officer) |
Contact:
|
Mary Kay Ladone, Vice President, Investor Relations
|
Phone:
|
312-819-9387
|
Email:
|
MaryKay.Ladone@hill-rom.com
|
Media
|
|
Contact:
|
Howard Karesh, Vice President, Corporate Communications
|
Phone:
|
312-819-7268
|
Email:
|
Howard.Karesh@hill-rom.com
|
• |
Patient Support Systems: Patient Support Systems revenue of $334 million was comparable to the prior year on a reported basis and declined 2 percent on a constant currency basis. Core revenue increased 2 percent on a constant currency basis.
|
• |
Front Line Care: Front Line Care revenue of $225 million increased 11 percent on a reported basis and increased 10 percent on a constant currency basis. Core revenue declined 1 percent on a constant currency basis.
|
• |
Surgical Solutions: Surgical Solutions revenue of $111 million advanced 10 percent on a reported basis and rose 6 percent on a constant currency basis.
|
· |
Launching innovative products and service solutions to drive accelerated future growth, such as the Centrella™ Smart+ bed, which transforms care by providing optimized patient safety, enhanced patient satisfaction and advanced caregiver efficiency. Now available in the U.S. and Canada, the new scalable platform also integrates with the NaviCare® Patient Safety application, including integrated technology, services, clinical programs and clinical expertise to prevent and reduce the risk of falls.
|
· |
Allowing patients to monitor their health outside the physician office using the clinically trusted Welch Allyn Home™ Blood Pressure Monitor. Welch Allyn Home™ 1700 Series Blood Pressure Monitor with SureBP® technology and Welch Allyn Home™ Weight Scale are now offered as standard peripherals with Honeywell Life Care Solution's Genesis Touch® remote patient monitoring kits, providing patients and providers the opportunity to capture accurate readings and deliver the highest quality-of-care outside of the traditional healthcare setting.
|
· |
Improving clinician decision-making and simplifying clinical workflows with the launch of the Connex® Cardio ECG (electrocardiograph). The PC-based resting ECG combines the clinical excellence of Mortara technology with Welch Allyn EMR connectivity expertise to ensure an accurate, high-fidelity ECG test for physicians to identify, manage and track conditions like heart disease and stroke.
|
· |
Introducing the TruSystem™ 7500 MR Neuro Surgical Table, which integrates with the IMRIS MR Neuro tabletop to support better patient treatment and optimize the surgical workflow. The new surgical table will be an essential component of the IMRIS Surgical Theater, a suite of intraoperative imaging technologies that allow neurosurgeons to see critical anatomical detail during surgery.
|
· |
Advancing Hill-Rom’s “Vision for All” campaign by announcing Hill-Rom’s contracted tele-ophthalmology services provider, RetinaVue, P.C., received the prestigious Gold Seal of Approval® from The Joint Commission. RetinaVue, P.C., is the first tele-ophthalmology provider to earn this quality certification, which reflects the organization’s commitment to providing safe and effective care, and demonstrating continuous compliance with nationally recognized standards.
|
Hill-Rom Holdings, Inc. and Subsidiaries
|
Condensed Consolidated Statements of Income
|
(Dollars in millions, except per share data, unaudited)
|
Quarter Ended
December 31 |
||||||||
2017
|
2016
|
|||||||
Net revenue
|
||||||||
Product sales and service
|
$
|
575.2
|
$
|
541.9
|
||||
Rental revenue
|
94.5
|
95.5
|
||||||
Total revenue
|
669.7
|
637.4
|
||||||
Cost of revenue
|
||||||||
Cost of goods sold
|
304.1
|
288.4
|
||||||
Rental expenses
|
46.0
|
46.4
|
||||||
Total cost of revenue
|
350.1
|
334.8
|
||||||
Gross profit
|
||||||||
Product sales and service
|
271.1
|
253.5
|
||||||
Rental
|
48.5
|
49.1
|
||||||
Total gross profit
|
319.6
|
302.6
|
||||||
As a percentage of sales
|
47.7
|
%
|
47.5
|
%
|
||||
Research and development expenses
|
32.3
|
32.0
|
||||||
Selling and administrative expenses
|
221.7
|
208.8
|
||||||
Special charges
|
13.5
|
5.8
|
||||||
Operating profit
|
52.1
|
56.0
|
||||||
Other income (expense), net
|
(21.3
|
)
|
(20.7
|
)
|
||||
Income tax expense
|
(57.5
|
)
|
11.8
|
|||||
Net income
|
88.3
|
23.5
|
||||||
Less: Net loss attributable to noncontrolling interests
|
—
|
(0.3
|
)
|
|||||
Net income attributable to common shareholders
|
$
|
88.3
|
$
|
23.8
|
||||
Diluted earnings per share
|
$
|
1.31
|
$
|
0.36
|
||||
Average common shares outstanding - diluted (thousands)
|
67,432
|
66,860
|
||||||
Dividends per common share
|
$
|
0.18
|
$
|
0.17
|
U.S.
|
OUS
|
|||||||||||||||||||||||||||
Quarter Ended
December 31 |
Change As
|
Constant
|
Change As
|
Change As
|
Constant
|
|||||||||||||||||||||||
2017
|
2016
|
Reported
|
Currency
|
Reported
|
Reported
|
Currency
|
||||||||||||||||||||||
Product sales and service
|
$
|
575.2
|
$
|
541.9
|
6.1
|
%
|
3.8
|
%
|
2.2
|
%
|
13.9
|
%
|
7.0
|
%
|
||||||||||||||
Rental revenue
|
94.5
|
95.5
|
(1.0
|
)%
|
(1.9
|
)%
|
(1.8
|
)%
|
4.7
|
%
|
(2.9
|
)%
|
||||||||||||||||
Total revenue
|
$
|
669.7
|
$
|
637.4
|
5.1
|
%
|
3.0
|
%
|
1.5
|
%
|
13.4
|
%
|
6.5
|
%
|
||||||||||||||
Patient Support Systems
|
$
|
334.4
|
$
|
335.2
|
(0.2
|
)%
|
(1.9
|
)%
|
(1.9
|
)%
|
4.6
|
%
|
(2.0
|
)%
|
||||||||||||||
Front Line Care
|
224.6
|
201.8
|
11.3
|
%
|
9.8
|
%
|
7.1
|
%
|
22.8
|
%
|
17.0
|
%
|
||||||||||||||||
Surgical Solutions
|
110.7
|
|
100.4
|
10.3
|
%
|
5.8
|
%
|
1.8
|
%
|
18.6
|
%
|
9.7
|
%
|
|||||||||||||||
Total revenue
|
$
|
669.7
|
$
|
637.4
|
5.1
|
%
|
3.0
|
%
|
1.5
|
%
|
13.4
|
%
|
6.5
|
%
|
||||||||||||||
OUS - Outside of the U.S.
|
Quarter Ended December 31, 2017
|
Quarter Ended September 30, 2016
|
|||||||||||||||||||||||||||||||||||||||
Gross
Margin |
Operating
Margin1 |
Income
Before Income Taxes |
Income
Tax Expense |
Diluted
EPS1 |
Gross
Margin |
Operating
Margin |
Income
Before Income Taxes |
Income
Tax Expense |
Diluted
EPS1 |
|||||||||||||||||||||||||||||||
GAAP Basis
|
47.7
|
%
|
7.9
|
%
|
$
|
30.8
|
$
|
(57.5
|
)
|
$
|
1.31
|
47.5
|
%
|
8.8
|
%
|
$
|
35.3
|
$
|
11.8
|
$
|
0.36
|
|||||||||||||||||||
Adjustments:
|
||||||||||||||||||||||||||||||||||||||||
Acquisition and integration costs
|
—
|
%
|
0.4
|
%
|
2.4
|
0.6
|
0.03
|
—
|
%
|
0.9
|
%
|
6.0
|
2.2
|
0.06
|
||||||||||||||||||||||||||
Acquisition-related intangible asset
amortization
|
—
|
%
|
4.0
|
%
|
26.7
|
6.6
|
0.30
|
—
|
%
|
4.0
|
%
|
25.5
|
8.3
|
0.26
|
||||||||||||||||||||||||||
Litigation settlements and expenses
|
—
|
%
|
0.6
|
%
|
4.0
|
1.1
|
0.04
|
—
|
%
|
—
|
%
|
—
|
—
|
—
|
||||||||||||||||||||||||||
Special charges
|
—
|
%
|
2.0
|
%
|
13.5
|
3.5
|
0.15
|
—
|
%
|
0.9
|
%
|
5.8
|
1.9
|
0.06
|
||||||||||||||||||||||||||
Tax law change
|
—
|
%
|
—
|
%
|
—
|
60.3
|
(0.89
|
)
|
—
|
%
|
—
|
%
|
—
|
(2.2
|
)
|
0.03
|
||||||||||||||||||||||||
Gain on disposition
|
—
|
%
|
—
|
%
|
(1.0
|
)
|
—
|
(0.01
|
)
|
—
|
%
|
—
|
%
|
(1.0
|
)
|
(0.4
|
)
|
(0.01
|
)
|
|||||||||||||||||||||
Adjusted Basis
|
47.7
|
%
|
14.7
|
%
|
$
|
76.4
|
$
|
14.6
|
$
|
0.92
|
47.5
|
%
|
14.6
|
%
|
$
|
71.6
|
$
|
21.6
|
$
|
0.75
|
||||||||||||||||||||
1 Total does not add due to rounding
|
December 31,
2017 |
September 30,
2017 |
|||||||
Assets
|
||||||||
Current Assets
|
||||||||
Cash and cash equivalents
|
$
|
233.7
|
$ |
231.8
|
||||
Trade accounts receivable, net of allowances
|
511.0
|
579.3
|
||||||
Inventories, net
|
298.5
|
284.5
|
||||||
Other current assets
|
75.1
|
70.6
|
||||||
Total current assets
|
1,118.3
|
1,166.2
|
||||||
Property, plant and equipment, net
|
357.9
|
355.4
|
||||||
Intangible assets
|
||||||||
Goodwill
|
1,761.1
|
1,759.6
|
||||||
Other intangible assets and software, net
|
1,116.1
|
1,144.0
|
||||||
Other assets
|
107.1
|
103.5
|
||||||
Total Assets
|
$
|
4,460.5
|
$
|
4,528.7
|
||||
Liabilities
|
||||||||
Current Liabilities
|
||||||||
Trade accounts payable
|
$
|
147.7
|
$
|
167.9
|
||||
Short-term borrowings
|
212.3
|
188.9
|
||||||
Other current liabilities
|
277.3
|
301.9
|
||||||
Total current liabilities
|
637.3
|
658.7
|
||||||
Long-term debt
|
2,036.3
|
2,120.4
|
||||||
Other long-term liabilities
|
322.8
|
384.0
|
||||||
Total Liabilities
|
2,996.4
|
3,163.1
|
||||||
Total Shareholders' Equity Attributable to Common Shareholders
|
1,457.1
|
1,358.2
|
||||||
Noncontrolling interests
|
7.0
|
7.4
|
||||||
Total Shareholders' Equity
|
1,464.1
|
1,365.6
|
||||||
Total Liabilities and Shareholders' Equity
|
$
|
4,460.5
|
$
|
4,528.7
|
Quarter Ended September 30
|
||||||||
2017
|
2016
|
|||||||
Operating Activities
|
||||||||
Net income
|
$
|
88.3
|
$
|
23.5
|
||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Depreciation
|
19.8
|
20.8
|
||||||
Amortization
|
4.9
|
5.0
|
||||||
Acquisition-related intangible asset amortization
|
26.7
|
25.5
|
||||||
Provision for deferred income taxes
|
(86.4
|
)
|
(6.1
|
)
|
||||
(Gain) Loss on disposal of property, equipment leased to others, intangible assets, and
impairments |
(0.6
|
)
|
0.4
|
|||||
Gain on sale of businesses
|
(1.0
|
)
|
(1.0
|
)
|
||||
Stock compensation
|
6.3
|
5.1
|
||||||
Change in working capital excluding cash, current debt, acquisitions and dispositions:
|
||||||||
Trade accounts receivable
|
69.6
|
35.5
|
||||||
Inventories
|
(13.1
|
)
|
(1.0
|
)
|
||||
Other current assets
|
(5.2
|
)
|
14.9
|
|||||
Trade accounts payable
|
(17.7
|
)
|
(7.6
|
)
|
||||
Accrued expenses and other liabilities
|
(24.0
|
)
|
(46.2
|
)
|
||||
Other, net
|
25.5
|
2.2
|
||||||
Net cash provided by operating activities
|
93.1
|
71.0
|
||||||
Investing Activities
|
||||||||
Capital expenditures and purchases of intangible assets
|
$
|
(27.3
|
)
|
$
|
(22.4
|
)
|
||
Proceeds on sale of property and equipment leased to others
|
1.6
|
4.1
|
||||||
Proceeds on sale of businesses
|
1.0
|
4.5
|
||||||
Other
|
(0.4
|
)
|
(0.3
|
)
|
||||
Net cash used in investing activities
|
(25.1
|
)
|
(14.1
|
)
|
||||
Financing Activities
|
||||||||
Proceeds from borrowings on long-term debt
|
$
|
1.0
|
$
|
—
|
||||
Payment of long-term debt
|
(27.4
|
)
|
(18.3
|
)
|
||||
Borrowings on Revolving Credit Facility
|
30.0
|
45.0
|
||||||
Payments on Revolving Credit Facility
|
(80.0
|
)
|
(35.8
|
)
|
||||
Borrowings on Securitization Program
|
30.9
|
—
|
||||||
Payments on Securitization Program
|
(16.6
|
)
|
—
|
|||||
Payment of cash dividends
|
(11.9
|
)
|
(11.1
|
)
|
||||
Proceeds from exercise of stock options
|
8.0
|
2.5
|
||||||
Proceeds from stock issuance
|
1.4
|
1.0
|
||||||
Treasury stock acquired
|
(3.5
|
)
|
(33.5
|
)
|
||||
Net cash provided by (used in) financing activities
|
(68.1
|
)
|
(50.2
|
)
|
||||
Effect of exchange rate changes on cash
|
2.0
|
(7.2
|
)
|
|||||
Net Cash Flows
|
1.9
|
(0.5
|
)
|
|||||
Cash and Cash Equivalents
|
||||||||
At beginning of period
|
231.8
|
232.2
|
||||||
At end of period
|
$
|
233.7
|
$
|
231.7
|
Contact:
|
Mary Kay Ladone, Vice President, Investor Relations
|
Phone:
|
312-819-9387
|
Email:
|
MaryKay.Ladone@hill-rom.com
|
Media
|
|
Contact:
|
Howard Karesh, Vice President, Corporate Communications
|
Phone:
|
312-819-7268
|
Email:
|
Howard.Karesh@hill-rom.com
|
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