CHICAGO, July 27, 2018 /PRNewswire/ -- Hill-Rom
Holdings, Inc. (NYSE: HRC), today announced financial results for
its fiscal third quarter ended June 30,
2018, and reaffirmed its fiscal 2018 full-year outlook.
For the fiscal third quarter, Hill-Rom reported earnings of
$0.67 per diluted share compared to
$0.09 per diluted share in the
prior-year period. On an adjusted basis, excluding special items,
earnings of $1.15 per diluted share
rose 26 percent from $0.91 per
diluted share in the prior-year period, exceeding the company's
previously-issued guidance of $1.12
to $1.14 per diluted share.
Adjustments to reported earnings are detailed in the reconciliation
schedules provided.
"Since joining Hill-Rom in May, I have immersed myself in the
business, thoroughly reviewing the company and its global
operations and engaging with our employees, business leaders,
customers and partners," said John P.
Groetelaars, Hill-Rom's president and chief executive
officer. "It's clear to me that Hill-Rom has a solid foundation and
compelling growth prospects, as reflected in our strong fiscal
third quarter financial results. I am confident in Hill-Rom's
future as we enter the next phase of our transformation with the
momentum to drive growth through innovation and business
development initiatives, and create long-term value for patients,
customers and shareholders."
Fiscal Third Quarter Financial Results
In the fiscal third quarter, Hill-Rom's worldwide revenue of
$709 million increased 3 percent
compared to the fiscal third quarter of last year, or 1 percent on
a constant currency basis. Domestic revenue of $494 million advanced 5 percent, while revenue
outside the U.S. of $215 million
declined 2 percent, or 7 percent on a constant currency
basis.
Hill-Rom's core revenue accelerated by 4 percent on a constant
currency basis, as the company capitalized on several new product
introductions from across the portfolio. Core revenue excludes
foreign currency, divestitures and non-strategic assets the company
plans to exit.
By reporting segment:
- Patient Support Systems: Patient Support Systems revenue
of $360 million increased 1 percent
on a reported basis, and was comparable to the prior-year period on
a constant currency basis. Core revenue accelerated by 5 percent,
primarily the result of significant growth in key U.S. product
categories, including Med-Surg bed systems, Clinical Workflow
Solutions and patient handling equipment, of more than 20
percent.
- Front Line Care: Front
Line Care, which includes Welch Allyn, Respiratory Care and
Mortara, generated revenue of $239
million, an increase of 5 percent on a reported basis, and 4
percent on a constant currency basis, driven by contributions from
new products.
- Surgical Solutions: Surgical Solutions revenue of
$110 million increased 2 percent on a
reported basis, and was comparable to the prior-year period on a
constant currency basis, reflecting a challenging international
comparison to last year.
Gross margin of 49.1 percent expanded 110 basis points compared
to the prior year, and operating margin improved 520 basis points
to 11.1 percent. On an adjusted basis, gross margin expanded by 80
basis points to 49.1 percent and operating margin improved by 120
basis points to 17.3 percent. Adjustments to gross margin and
operating margin are detailed in the reconciliation schedules
provided.
Year-to-date, operating cash flow of $250
million increased 4 percent versus the prior-year period,
and the company returned $46 million
to shareholders in the form of dividends and share repurchases.
Recent Highlights
Complementing the company's financial performance were several
recent achievements aimed at delivering sustainable value through
innovation and strategic investments. Highlights include:
- Enhancing commercial execution and achieving more than
$180 million in new product revenue
through the first nine months of fiscal 2018. Contributing to this
performance are several innovative products, such as:
-
- 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
integrates with the NaviCare® Patient Safety application, including
integrated technology, services, clinical programs and clinical
expertise to prevent and reduce the risk of falls. The company
expects to launch Centrella in various international markets in the
coming months.
- Integrated Table Motion for the da Vinci® Xi® Surgical System,
which allows surgeons and anesthesiologists – for the first time –
to make a comprehensive range of table adjustments easily and
efficiently during surgery.
- Welch Allyn Connex® Spot Monitor, an easy-to-use, full-color,
touchscreen monitor that provides comprehensive and accurate
patient vital signs (blood pressure measurement, pulse oximetry for
assessing respiratory conditions, and thermometry) documentation
using a single device.
- Welch Allyn's vision care portfolio including the Spot™ Vision
Screener, a handheld, portable device allowing clinicians to
quickly detect vision issues; and the Welch Allyn® RetinaVue™ 100
Imager, a breakthrough handheld technology which makes diabetic
retinopathy screening simple and affordable for primary care
settings.
- Monarch™ Airway Clearance System, which builds high frequency
chest wall oscillation therapy into a mobile vest, allowing a
patient to be active and productive while receiving therapy.
- Advancing the company's leadership in patient support systems
with continued investment and expansion of the company's clinical
workflow solutions and communication platforms. This includes the
recent limited release of Linq™ mobile, a smartphone application
that securely connects members of the care team to each other, to
their patients, and to patient information in real-time. With
the full commercial launch planned later this year, the Linq mobile
platform integrates clinical workflows with nurse call, clinical
surveillance and monitoring systems, improving care-team
collaboration, communication and efficiency. Hill-Rom
continues to invest in technology that accesses critical
information in the patient-care environment to provide caregivers
with actionable insights that improve care and enhance patient
outcomes.
- Driving innovation with the launch of a new magnetic resonance
neurosurgical table for the IMRIS Surgical Theatre. Developed in
collaboration with clinicians, designers and engineers, the new
table integrates a novel IMRIS magnetic resonance neurosurgical
tabletop with Hill-Rom's TruSystem™ 7500 OR Table platform,
maximizing utilization and improving ergonomic and multi-functional
capabilities.
Fiscal Fourth Quarter and Full-Year 2018 Financial
Outlook
Hill-Rom provided its fiscal fourth quarter financial outlook
and reaffirmed its full-year guidance. For the fiscal fourth
quarter 2018, Hill-Rom expects revenue to increase approximately 2
percent on both a reported and constant currency basis, and core
revenue to increase 3 to 4 percent. Hill-Rom expects adjusted
earnings, excluding special items, of $1.50 to $1.53 per
diluted share.
For full-year 2018, Hill-Rom continues to expect revenue to
increase 3 to 4 percent on a reported basis and 2 to 3 percent on a
constant currency basis. The company continues to expect core
revenue to increase approximately 3 percent. Core revenue excludes
foreign currency, divestitures, non-strategic assets the company
plans to exit, and Mortara revenue prior to the anniversary date of
the acquisition. Hill-Rom now expects adjusted earnings,
excluding special items, of $4.62 to
$4.65 per diluted share, compared to
its prior guidance of $4.60 to
$4.65 per diluted share, and
approximately $350 million in
operating cash flow.
Discussion of Adjusted Financial Measures
In addition to the results reported in accordance with GAAP,
Hill-Rom routinely provides gross margin, operating margin, income
tax expense, and earnings per diluted share results on an adjusted
basis because the company's management believes these measures
contribute to an understanding of our financial performance and
provide additional analytical tools to understand our results from
core operations and reveal underlying operating trends. These
measures exclude strategic developments, acquisition and
integration costs, special charges, the one-time impact of the new
U.S. tax reform legislation, and other unusual events. The company
also excludes expenses associated with the amortization of
intangible assets associated with prior business acquisitions.
These adjustments are made to allow investors to evaluate and
understand operating trends excluding the non-cash impact of
acquired intangible amortization on operating income and earnings
per diluted share.
Management uses these measures internally for planning,
forecasting and evaluating the performance of the business.
Investors should consider these 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.
The company also routinely provides earnings per diluted
share guidance on an adjusted basis. This excludes the impact of
intangible asset amortization associated with prior business
acquisitions, which we expect to be $1.15 to $1.20 per
diluted share for the fiscal year, and the one-time impact of new
U.S. tax reform legislation we expect to record during fiscal 2018.
Management also does not include adjusted items such as strategic
developments, acquisition and integration costs, special charges,
and other unusual items in our guidance because such items are
evaluated on an ongoing basis, can be highly variable and cannot be
reasonably predicted. As such, prospective quantification of these
items is not feasible and a full reconciliation of non-GAAP
earnings per diluted share guidance to GAAP earnings per diluted
share has not been provided. However, as a result of significant
recent acquisitions, our ongoing footprint and portfolio
optimization, and the new U.S. tax reform legislation, we do expect
adjusted items we have not predicted to potentially be significant
to our GAAP measures including gross margin, operating margin,
income tax expense and earnings per diluted share.
The company also presents certain results on a constant
currency basis, which compares results between periods as if
foreign currency exchange rates had remained consistent
period-over-period. Management monitors sales performance on an
adjusted basis that eliminates the positive or negative effects
that result from translating international sales into U.S. dollars.
Management calculates constant currency by applying the foreign
currency exchange rate for the prior period to the local currency
results for the current period.
Conference Call Webcast and Dial-in
Information
The company will host a conference call and webcast today
beginning at 7:00 a.m. (CT) /
8:00 a.m. (ET).
Conference Call Audio Only Dial-in Information: To
participate in the conference call, dial (844) 654-5620 (domestic)
or (647) 253-8654 (international). Please dial into the call at
least 10 minutes prior to the start to allow time to connect. The
confirmation code is 8837608.
Webcast: A simultaneous webcast of the call will be
accessible via the company's website at www.hill-rom.com.
Presentation: A supplementary presentation will be posted
to the Hill-Rom website prior to the webcast.
A recording of the webcast/call audio will be available for
telephone replay through August 3,
2018. To access the replay, dial (800) 585-8367 (domestic)
or (416) 621-4642 (international). For the replay, callers will
need to use confirmation code 8837608. If you are unable to listen
to the live webcast or the telephone replay, the webcast will be
archived at www.hill-rom.com.
About Hill-Rom Holdings, Inc.
Hill-Rom is a leading global medical technology company with
more than 10,000 employees worldwide. We partner with health care
providers in more than 100 countries, across all care settings, by
focusing on patient care solutions that improve clinical and
economic outcomes in five core areas: Advancing Mobility, Wound
Care and Prevention, Patient Monitoring and Diagnostics, Surgical
Safety and Efficiency and Respiratory Health. Our innovations
ensure caregivers have the products they need to help diagnose,
treat and protect their patients; speed up recoveries; and manage
conditions. Every day, around the world, we enhance outcomes for
patients and their caregivers. Learn more at hill-rom.com.
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, proposed
divestitures, product launches, 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, unless required by law.
CONTACT
INFORMATION
|
|
Investor
Relations
|
|
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
|
Hill-Rom Holdings,
Inc. and Subsidiaries
|
Condensed
Consolidated Statements of Income
|
(Dollars in
millions, except per share data, unaudited)
|
|
|
|
|
|
|
|
Quarter Ended
June 30
|
|
Year to Date
Ended
June 30
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Net
revenue
|
|
|
|
|
|
|
|
|
Product sales and
service
|
|
$
|
617.6
|
|
|
$
|
593.1
|
|
|
$
|
1,803.5
|
|
|
$
|
1,714.6
|
|
Rental
revenue
|
|
91.0
|
|
|
96.0
|
|
|
285.3
|
|
|
290.8
|
|
Total net
revenue
|
|
708.6
|
|
|
689.1
|
|
|
2,088.8
|
|
|
2,005.4
|
|
Cost of
revenue
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
|
317.5
|
|
|
311.5
|
|
|
935.3
|
|
|
905.6
|
|
Rental
expenses
|
|
43.1
|
|
|
46.5
|
|
|
135.5
|
|
|
141.7
|
|
Total cost of
revenue
|
|
360.6
|
|
|
358.0
|
|
|
1,070.8
|
|
|
1,047.3
|
|
Gross
profit
|
|
|
|
|
|
|
|
|
Product sales and
service
|
|
300.1
|
|
|
281.6
|
|
|
868.2
|
|
|
809.0
|
|
Rental
|
|
47.9
|
|
|
49.5
|
|
|
149.8
|
|
|
149.1
|
|
Total gross
profit
|
|
348.0
|
|
|
331.1
|
|
|
1,018.0
|
|
|
958.1
|
|
As a percentage of
sales
|
|
49.1
|
%
|
|
48.0
|
%
|
|
48.7
|
%
|
|
47.8
|
%
|
|
|
|
|
|
|
|
|
|
Research and
development expenses
|
|
33.6
|
|
|
34.9
|
|
|
100.6
|
|
|
102.2
|
|
Selling and
administrative expenses
|
|
221.9
|
|
|
221.0
|
|
|
676.3
|
|
|
652.2
|
|
Special
charges
|
|
14.0
|
|
|
34.8
|
|
|
64.4
|
|
|
43.7
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
78.5
|
|
|
40.4
|
|
|
176.7
|
|
|
160.0
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense), net
|
|
(23.0)
|
|
|
(24.3)
|
|
|
(68.9)
|
|
|
(67.3)
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
(benefit)
|
|
10.3
|
|
|
10.4
|
|
|
(54.2)
|
|
|
29.5
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
45.2
|
|
|
5.7
|
|
|
162.0
|
|
|
63.2
|
|
|
|
|
|
|
|
|
|
|
Less: Net loss
attributable to noncontrolling interests
|
|
—
|
|
|
(0.3)
|
|
|
—
|
|
|
(1.0)
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to common shareholders
|
|
$
|
45.2
|
|
|
$
|
6.0
|
|
|
$
|
162.0
|
|
|
$
|
64.2
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
per share
|
|
$
|
0.67
|
|
|
$
|
0.09
|
|
|
$
|
2.40
|
|
|
$
|
0.95
|
|
|
|
|
|
|
|
|
|
|
Average common
shares outstanding - diluted (thousands)
|
|
67,646
|
|
|
67,688
|
|
|
67,550
|
|
|
67,300
|
|
|
|
|
|
|
|
|
|
|
Dividends per
common share
|
|
$
|
0.20
|
|
|
$
|
0.18
|
|
|
$
|
0.58
|
|
|
$
|
0.53
|
|
Hill-Rom Holdings,
Inc. and Subsidiaries
|
Revenue Constant
Currency
|
(Dollars in
millions, unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
|
|
OUS
|
|
|
Quarter Ended
June 30
|
|
Change As
|
|
Constant
|
|
Change As
|
|
Change As
|
|
Constant
|
|
|
2018
|
|
2017
|
|
Reported
|
|
Currency
|
|
Reported
|
|
Reported
|
|
Currency
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product sales and
service
|
|
$
|
617.6
|
|
|
$
|
593.1
|
|
|
4.1
|
%
|
|
2.6
|
%
|
|
7.7
|
%
|
|
(2.3)
|
%
|
|
(6.6)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental
revenue
|
|
91.0
|
|
|
96.0
|
|
|
(5.2)
|
%
|
|
(5.9)
|
%
|
|
(6.0)
|
%
|
|
1.0
|
%
|
|
(5.8)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net
revenue
|
|
$
|
708.6
|
|
|
$
|
689.1
|
|
|
2.8
|
%
|
|
1.4
|
%
|
|
5.2
|
%
|
|
(2.2)
|
%
|
|
(6.6)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Patient Support
Systems
|
|
359.7
|
|
|
354.7
|
|
|
1.4
|
%
|
|
0.3
|
%
|
|
5.3
|
%
|
|
(8.6)
|
%
|
|
(12.5)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Front Line
Care
|
|
239.0
|
|
|
227.1
|
|
|
5.2
|
%
|
|
4.0
|
%
|
|
4.1
|
%
|
|
8.1
|
%
|
|
3.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Surgical
Solutions
|
|
109.9
|
|
|
107.3
|
|
|
2.4
|
%
|
|
(0.4)
|
%
|
|
7.8
|
%
|
|
(2.5)
|
%
|
|
(7.9)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net
revenue
|
|
$
|
708.6
|
|
|
$
|
689.1
|
|
|
2.8
|
%
|
|
1.4
|
%
|
|
5.2
|
%
|
|
(2.2)
|
%
|
|
(6.6)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OUS - Outside of the
U.S.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
|
|
OUS
|
|
|
Year to Date
Ended
June 30
|
|
Change As
|
|
Constant
|
|
Change As
|
|
Change As
|
|
Constant
|
|
|
2018
|
|
2017
|
|
Reported
|
|
Currency
|
|
Reported
|
|
Reported
|
|
Currency
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product sales and
service
|
|
$
|
1,803.5
|
|
|
$
|
1,714.6
|
|
|
5.2
|
%
|
|
2.9
|
%
|
|
3.7
|
%
|
|
7.9
|
%
|
|
1.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental
revenue
|
|
285.3
|
|
|
290.8
|
|
|
(1.9)
|
%
|
|
(2.9)
|
%
|
|
(2.5)
|
%
|
|
3.1
|
%
|
|
(5.6)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net
revenue
|
|
$
|
2,088.8
|
|
|
$
|
2,005.4
|
|
|
4.2
|
%
|
|
2.0
|
%
|
|
2.6
|
%
|
|
7.7
|
%
|
|
0.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Patient Support
Systems
|
|
1,049.1
|
|
|
1,052.8
|
|
|
(0.4)
|
%
|
|
(2.1)
|
%
|
|
(0.7)
|
%
|
|
0.7
|
%
|
|
(5.7)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Front Line
Care
|
|
701.5
|
|
|
639.9
|
|
|
9.6
|
%
|
|
8.0
|
%
|
|
7.3
|
%
|
|
15.6
|
%
|
|
9.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Surgical
Solutions
|
|
338.2
|
|
|
312.7
|
|
|
8.2
|
%
|
|
3.6
|
%
|
|
5.0
|
%
|
|
11.2
|
%
|
|
2.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net
revenue
|
|
$
|
2,088.8
|
|
|
$
|
2,005.4
|
|
|
4.2
|
%
|
|
2.0
|
%
|
|
2.6
|
%
|
|
7.7
|
%
|
|
0.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OUS - Outside of the
U.S.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hill-Rom Holdings,
Inc. and Subsidiaries
|
Reconciliation:
Earnings Per Share
|
(Dollars in
millions, except per share data, unaudited)
|
|
|
Quarter Ended June
30, 2018
|
|
Quarter Ended June
30, 2017
|
|
Gross
Margin
|
|
Operating
Margin
|
|
Income
Before
Income
Taxes
|
|
Income
Tax
Expense
|
|
Diluted
EPS
|
|
Gross
Margin
|
|
Operating
Margin1
|
|
Income
Before
Income
Taxes
|
|
Income
Tax
Expense
|
|
Diluted
EPS
|
GAAP
Basis
|
49.1
|
%
|
|
11.1
|
%
|
|
$
|
55.5
|
|
|
$
|
10.3
|
|
|
$
|
0.67
|
|
|
48.0
|
%
|
|
5.9
|
%
|
|
$
|
16.1
|
|
|
$
|
10.4
|
|
|
$
|
0.09
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition and
integration costs
|
—
|
%
|
|
0.4
|
%
|
|
3.1
|
|
|
0.8
|
|
|
0.03
|
|
|
0.3
|
%
|
|
0.9
|
%
|
|
5.9
|
|
|
2.4
|
|
|
0.05
|
|
Acquisition-related
intangible asset
amortization
|
—
|
%
|
|
3.8
|
%
|
|
26.8
|
|
|
7.4
|
|
|
0.28
|
|
|
—
|
%
|
|
4.1
|
%
|
|
28.1
|
|
|
9.4
|
|
|
0.28
|
|
Litigation
expenses
|
—
|
%
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|
0.2
|
%
|
|
1.6
|
|
|
0.6
|
|
|
0.02
|
|
Special
charges
|
—
|
%
|
|
2.0
|
%
|
|
14.0
|
|
|
4.1
|
|
|
0.15
|
|
|
—
|
%
|
|
5.1
|
%
|
|
34.8
|
|
|
2.7
|
|
|
0.47
|
|
Tax method and law
changes and related
costs
|
—
|
%
|
|
—
|
|
|
0.3
|
|
|
(1.0)
|
|
|
0.02
|
|
|
—
|
%
|
|
—
|
%
|
|
—
|
|
|
—
|
|
|
—
|
|
Adjusted
Basis
|
49.1
|
%
|
|
17.3%
|
|
$
|
99.7
|
|
|
$
|
21.6
|
|
|
$
|
1.15
|
|
|
48.3
|
%
|
|
16.1
|
%
|
|
$
|
86.5
|
|
|
$
|
25.5
|
|
|
$
|
0.91
|
|
1
Total does not add due to rounding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year to Date
Ended
June 30, 2018
|
|
Year to Date
Ended
June 30, 2017
|
|
Gross
Margin
|
|
Operating
Margin1
|
|
Income
Before
Income
Taxes
|
|
Income
Tax
Expense
|
|
Diluted
EPS
|
|
Gross
Margin
|
|
Operating
Margin
|
|
Income
Before
Income
Taxes
|
|
Income
Tax
Expense
|
|
Diluted
EPS1
|
GAAP
Basis
|
48.7
|
%
|
|
8.5
|
%
|
|
$
|
107.8
|
|
|
$
|
(54.2)
|
|
|
$
|
2.40
|
|
|
47.8
|
%
|
|
8.0
|
%
|
|
$
|
92.7
|
|
|
$
|
29.5
|
|
|
$
|
0.95
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition and
integration costs
|
—
|
%
|
|
0.4
|
%
|
|
8.1
|
|
|
2.1
|
|
|
0.09
|
|
|
0.1
|
%
|
|
1.0
|
%
|
|
19.1
|
|
|
8.0
|
|
|
0.17
|
|
Acquisition-related
intangible asset
amortization
|
—
|
%
|
|
3.9
|
%
|
|
80.5
|
|
|
20.9
|
|
|
0.88
|
|
|
—
|
%
|
|
4.0
|
%
|
|
80.2
|
|
|
26.7
|
|
|
0.79
|
|
Field corrective
actions
|
—
|
%
|
|
—
|
%
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|
—
|
%
|
|
0.5
|
|
|
(0.1)
|
|
|
0.01
|
|
Litigation
expenses
|
—
|
%
|
|
0.3
|
%
|
|
5.8
|
|
|
1.5
|
|
|
0.06
|
|
|
—
|
%
|
|
0.1
|
%
|
|
2.5
|
|
|
0.9
|
|
|
0.02
|
|
Special
charges
|
—
|
%
|
|
3.1
|
%
|
|
64.4
|
|
|
17.3
|
|
|
0.70
|
|
|
—
|
%
|
|
2.2
|
%
|
|
43.7
|
|
|
5.5
|
|
|
0.57
|
|
Tax method and law
changes and related
costs
|
—
|
%
|
|
—
|
%
|
|
1.1
|
|
|
68.0
|
|
|
(0.99)
|
|
|
—
|
%
|
|
—
|
%
|
|
—
|
|
|
(2.2)
|
|
|
0.03
|
|
Gain on
disposition
|
—
|
%
|
|
—
|
%
|
|
(1.0)
|
|
|
—
|
|
|
(0.01)
|
|
|
—
|
%
|
|
—
|
%
|
|
(1.0)
|
|
|
(0.4)
|
|
|
(0.01)
|
|
Adjusted
Basis
|
48.7
|
%
|
|
16.1
|
%
|
|
$
|
266.7
|
|
|
$
|
55.6
|
|
|
$
|
3.13
|
|
|
47.9
|
%
|
|
15.3
|
%
|
|
$
|
237.7
|
|
|
$
|
67.9
|
|
|
$
|
2.54
|
|
1
Total does not add due to rounding
|
Hill-Rom Holdings,
Inc. and Subsidiaries
|
Condensed
Consolidated Balance Sheets
|
(Dollars in
millions, unaudited)
|
|
|
|
June 30,
2018
|
|
September 30,
2017
|
Assets
|
|
|
|
|
Current
Assets
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
246.5
|
|
|
$
|
231.8
|
|
Trade accounts
receivable, net of allowances
|
|
555.5
|
|
|
579.3
|
|
Inventories,
net
|
|
309.4
|
|
|
284.5
|
|
Other current
assets
|
|
109.6
|
|
|
70.6
|
|
Total current
assets
|
|
1,221.0
|
|
|
1,166.2
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
335.9
|
|
|
355.4
|
|
Intangible
assets
|
|
|
|
|
Goodwill
|
|
1,739.6
|
|
|
1,759.6
|
|
Other intangible
assets and software, net
|
|
1,054.5
|
|
|
1,144.0
|
|
Other
assets
|
|
114.4
|
|
|
103.5
|
|
|
|
|
|
|
Total
Assets
|
|
$
|
4,465.4
|
|
|
$
|
4,528.7
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
Trade accounts
payable
|
|
$
|
163.4
|
|
|
$
|
167.9
|
|
Short-term
borrowings
|
|
304.8
|
|
|
188.9
|
|
Other current
liabilities
|
|
302.7
|
|
|
301.9
|
|
Total current
liabilities
|
|
770.9
|
|
|
658.7
|
|
|
|
|
|
|
Long-term
debt
|
|
1,865.3
|
|
|
2,120.4
|
|
Other long-term
liabilities
|
|
320.3
|
|
|
384.0
|
|
|
|
|
|
|
Total
Liabilities
|
|
2,956.5
|
|
|
3,163.1
|
|
|
|
|
|
|
Total Shareholders'
Equity Attributable to Common Shareholders
|
|
1,508.9
|
|
|
1,358.2
|
|
|
|
|
|
|
Noncontrolling
interests
|
|
—
|
|
|
7.4
|
|
|
|
|
|
|
Total
Shareholders' Equity
|
|
1,508.9
|
|
|
1,365.6
|
|
|
|
|
|
|
Total Liabilities
and Shareholders' Equity
|
|
$
|
4,465.4
|
|
|
$
|
4,528.7
|
|
Hill-Rom Holdings,
Inc. and Subsidiaries
|
Condensed
Consolidated Statements of Cash Flows
|
(Dollars in
millions, unaudited)
|
|
|
|
Year to Date Ended
June 30
|
|
|
2018
|
|
2017
|
Operating
Activities
|
|
|
|
|
Net income
|
|
$
|
162.0
|
|
|
$
|
63.2
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
Depreciation
|
|
58.5
|
|
|
60.5
|
|
Amortization
|
|
13.7
|
|
|
15.3
|
|
Acquisition-related intangible asset amortization
|
|
80.5
|
|
|
80.2
|
|
Provision
(benefit) for deferred income taxes
|
|
(89.4)
|
|
|
(23.3)
|
|
(Gain) loss on
disposal of property, equipment leased to others, intangible
assets, and
impairments
|
|
1.1
|
|
|
23.5
|
|
(Gain) loss on
disposition of businesses
|
|
22.4
|
|
|
(1.0)
|
|
Stock
compensation
|
|
21.6
|
|
|
17.5
|
|
Change in
working capital excluding cash, current debt, acquisitions and
dispositions:
|
|
|
|
|
Trade accounts
receivable
|
|
20.5
|
|
|
13.7
|
|
Inventories
|
|
(27.4)
|
|
|
(1.8)
|
|
Other current
assets
|
|
(38.5)
|
|
|
13.2
|
|
Trade accounts
payable
|
|
(2.6)
|
|
|
1.0
|
|
Accrued expenses and
other liabilities
|
|
1.0
|
|
|
(29.9)
|
|
Other,
net
|
|
26.4
|
|
|
7.6
|
|
Net cash provided by
operating activities
|
|
249.8
|
|
|
239.7
|
|
Investing
Activities
|
|
|
|
|
Capital expenditures
and purchases of intangible assets
|
|
(71.9)
|
|
|
$
|
(73.8)
|
|
Proceeds on sale of
property and equipment leased to others
|
|
4.0
|
|
|
13.7
|
|
Payment for
acquisition of businesses, net of cash acquired
|
|
—
|
|
|
(311.4)
|
|
Proceeds on sale of
businesses
|
|
1.0
|
|
|
4.5
|
|
Other
|
|
2.2
|
|
|
(2.1)
|
|
Net cash used in
investing activities
|
|
(64.7)
|
|
|
(369.1)
|
|
Financing
Activities
|
|
|
|
|
Proceeds from
borrowings on long-term debt
|
|
1.0
|
|
|
$
|
300.0
|
|
Payments of long-term
debt
|
|
(137.4)
|
|
|
(54.9)
|
|
Borrowings on
Revolving Credit Facility
|
|
75.0
|
|
|
108.0
|
|
Payments on Revolving
Credit Facility
|
|
(165.0)
|
|
|
(248.8)
|
|
Borrowings on
Securitization Program
|
|
68.2
|
|
|
101.3
|
|
Payments on
Securitization Program
|
|
(40.7)
|
|
|
(14.5)
|
|
Borrowings on Note
Securitization Facility
|
|
61.0
|
|
|
—
|
|
Debt issuance
costs
|
|
(0.4)
|
|
|
(5.1)
|
|
Payments of cash
dividends
|
|
(38.4)
|
|
|
(34.8)
|
|
Proceeds from
exercise of stock options
|
|
13.6
|
|
|
17.5
|
|
Proceeds from stock
issuance
|
|
4.5
|
|
|
3.5
|
|
Treasury stock
acquired
|
|
(7.4)
|
|
|
(34.3)
|
|
Net cash provided by
(used in) financing activities
|
|
(166.0)
|
|
|
137.9
|
|
Effect of exchange
rate changes on cash
|
|
(4.4)
|
|
|
2.5
|
|
Net Cash
Flows
|
|
14.7
|
|
|
11.0
|
|
Cash and Cash
Equivalents
|
|
|
|
|
At beginning of
period
|
|
231.8
|
|
|
232.2
|
|
At end of
period
|
|
$
|
246.5
|
|
|
$
|
243.2
|
|
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SOURCE Hill-Rom Holdings, Inc.