Hillenbrand Yearly Profit JumpsPosted: Updated:
Batesville-based Hillenbrand Inc. (NYSE: HI) is reporting fiscal full-year net income of nearly $110 million, compared to $63.4 million during the previous year. The company projects revenue to continue to grow in the upcoming fiscal year. November 25, 2014
BATESVILLE, Ind. (November 19, 2014) - Hillenbrand, Inc. (NYSE: HI) reported results today for the fourth quarter ended September 30, 2014. Revenue grew 6% over the prior year to $469 million. The Process Equipment Group increased revenue by 10% to $319 million and finished the year with $580 million in order backlog, 4% below the prior year, but consistent on a constant currency basis. Batesville revenue decreased 0.5% to $149 million due to a lower average selling price.
Hillenbrand reports results on a GAAP and adjusted basis. Adjusted measures are reconciled to the most directly comparable GAAP measures at the end of this release. Net income increased 2% to $23.6 million ($0.37 per diluted share), while adjusted net income increased 24% to $39.2 million ($0.61 per diluted share). Adjusted EBITDA increased 21% to $82.3 million and adjusted EBITDA margin improved by 210 basis points to 18%. The increase in adjusted EBITDA was driven by improved profitability for the Process Equipment Group.
Fiscal Year 2014 Results
Hillenbrand's revenue for fiscal year 2014 increased 7%, or 6.5% on a constant currency basis, to $1.67 billion. Net income increased 73% to $109.7 million ($1.72 per diluted share). On an adjusted basis, net income increased 11% to $131.6 million ($2.06 per diluted share). Adjusted EBITDA increased 11% to $275.5 million, and as a percentage of revenue, increased 60 basis points to 16.5%. Operating cash flow improved by $52 million to $180 million due to higher net income and improvement in working capital.
"We are pleased with the results delivered for the quarter and year, particularly the profitability improvements in the Process Equipment Group," said Joe A. Raver, president and chief executive officer of Hillenbrand. "We are confident that we are on the right path to deliver long-term growth and shareholder value as we continue to execute the growth strategy that has transformed Hillenbrand into a global diversified industrial company."
Hillenbrand expects 2015 revenue growth of 2-4% on a constant currency basis. Revenue from the Process Equipment Group is projected to grow 4-6% on a constant currency basis and Batesville is expected to deliver revenue in line with 2014. Given current foreign exchange rates, management expects a 4% negative translation impact to revenue compared to 2014. Adjusted diluted EPS for 2015 is projected to range from $2.05 to $2.15.
Hillenbrand's financial statements on Form 10-K are expected to be filed jointly with this release and will be available on the Company's website (www.Hillenbrand.com).
Future revenue for the Process Equipment Group is influenced by backlog because of the lead time involved in fulfilling engineered-to-order equipment for customers. Although backlog can be an indicator of future revenue, it does not include projects and parts orders that are booked and shipped within the same quarter. The timing of order placement, size, extent of customization, and customer delivery dates can create fluctuations in backlog and revenue. Revenue attributable to backlog is also affected by foreign exchange fluctuations for orders denominated in currencies other than United States dollars.
Hillenbrand (www.Hillenbrand.com) is a global diversified industrial company that makes and sells premium business-to-business products and services for a wide variety of industries. We pursue profitable growth and meaningful dividends for our shareholders by leveraging our leading brands and robust cash generation capabilities.
Source: Hillenbrand Inc.