Batesville Herald Tribune, Batesville, Indiana

January 17, 2012

HI fourth quarter results


The Herald-Tribune

-- — Hillenbrand Inc. reported a worldwide revenue of $231.2 million for the fourth quarter of fiscal year 2011, a 9 percent ($19.2 million) increase over the prior year, reported communications manager Shari Morey,

The company’s fastest-growing business platform, the Process Equipment Group, increased revenue 32 percent ($18.4 million) to $76.4 million or 25 percent ($14.3 million) on a constant currency basis.

Excluding the impact of the Aug. 31, 2011, acquisition of Rotex, revenue grew 17 percent. The acquisition also contributed to a 26 percent increase in the Process Equipment Group’s order backlog compared to the third quarter.

The Batesville business platform reported fourth-quarter revenue of $154.8 million, slightly above prior-year revenue of $154 million.

Increased commodity costs in the Batesville business, primarily fuel and steel, along with inventory step-up charges related to the Rotex acquisition, led to a consolidated gross profit margin of 39.2 percent, compared to 41.8 percent in the prior year. Without the step-up charges, adjusted gross profit margin was 40.4 percent in the fourth quarter of 2011.

Net income increased 17 percent over the prior year to $23.5 million, with EPS growing 19 percent to $0.38. In the same period, EBITDA increased 8 percent to $44.6 million. The year-over-year increases were higher on an adjusted basis, with net income up 19 percent to $29.2 million, EPS up 20 percent to $0.48 and EBITDA up 11 percent to $52.5 million. Cash flow from operations was $33 million higher than the prior year, largely due to the timing of tax payments.

The annual revenue summary for 2011 increased 18 percent ($134.2 million) over the prior year to $883.4 million, 16 percent on a constant currency basis. Gross profit margin was 41.9 percent compared to 41.8 percent in the prior year. Without the impact of inventory step-up charges, the adjusted gross profit margin was 42.2 percent in 2011 and 43.4 percent in the prior year.

Net income of $106.1 million ($1.71 per share) grew 15 percent compared to the prior year, and adjusted net income of $113.8 million ($1.84 per share) was 2 percent higher. At $197.5 million, EBITDA increased 19 percent ($31.7 million) over the prior year and 9 percent ($17.2 million) on an adjusted basis. Collection of the Forethought Note in 2011 was a primary driver in the $71.3 million year-over-year increase in cash flow from operations.

"The company posted very solid fourth-quarter results fueled by effective execution of our growth strategy, which focuses on making the right investments in our business platforms to drive profitability and shareholder value," said Kenneth Camp, HI president and chief executive officer.

"Batesville continues to generate strong and consistent cash flow, while the Process Equipment Group has embarked on a global growth initiative that is opening up new geographies for its brands, including newly acquired Rotex. I’m pleased with the company’s accomplishments during the past year and look forward to building on those successes in 2012."