{"id":523527,"date":"2021-08-04T16:27:27","date_gmt":"2021-08-04T20:27:27","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/hillenbrand-announces-fiscal-third-quarter-2021-results\/"},"modified":"2021-08-04T16:27:27","modified_gmt":"2021-08-04T20:27:27","slug":"hillenbrand-announces-fiscal-third-quarter-2021-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/hillenbrand-announces-fiscal-third-quarter-2021-results\/","title":{"rendered":"Hillenbrand Announces Fiscal Third Quarter 2021 Results"},"content":{"rendered":"
\n

Fiscal Third Quarter 2021 Highlights:<\/h2>\n

– Revenue of $695 million increased 14% year over year led by growth in Molding Technology Solutions; pro forma revenue increased 18%<\/h2>\n

– GAAP EPS of $0.53 increased 66% compared to the prior year; adjusted EPS of $0.85 increased 5% primarily driven by growth in Molding Technology Solutions<\/h2>\n

– Record total backlog of $1.77 billion increased 57% year over year, or 62% on a pro forma basis, led by large plastics projects in Advanced Process Solutions and injection molding equipment within Molding Technology Solutions; total backlog increased 16% sequentially<\/h2>\n

– Cash flow from operations of $184 million increased $109 million compared to the prior year driven by favorable timing of working capital; net leverage decreased to 1.4x, down 0.3x sequentially<\/h2>\n

– Completed ~$100 million of share repurchases through end of July 2021<\/h2>\n

– Fiscal Q4 2021 guidance: Adjusted EPS range of $0.82 to $0.92<\/h2>\n

PR Newswire<\/p>\n<\/p><\/div>\n

\n

\n BATESVILLE, Ind.<\/span>, Aug. 4, 2021<\/span> \/PRNewswire\/ —\u00a0Hillenbrand, Inc. (NYSE: HI) reported results for the third quarter of fiscal 2021, which ended June 30, 2021<\/span>.<\/p>\n

“We had another strong quarter of performance with exceptional cash generation and record backlog due to continued momentum in our industrial businesses, while Batesville<\/span> performed better than expected,” said Joe Raver<\/span>, President and Chief Executive Officer of Hillenbrand. “I would like to thank our associates throughout the world for their continued dedication and execution in an environment that remains challenging due to COVID-19, rising inflation, and global supply chain disruptions. We remain focused on driving growth through strategic investments in our large platform businesses while capturing the full benefits of the Milacron integration. Our healthy balance sheet and solid backlog gives us confidence as we look to finish out a strong year for Hillenbrand.”<\/p>\n

\n
\n Third Quarter 2021 Results<\/u>
\n <\/b>\n <\/p>\n

Revenue of $695 million<\/span> increased 14% compared to the prior year, primarily driven by growth within Molding Technology Solutions and Advanced Process Solutions, partially offset by the divestitures of Red Valve and ABEL. Total revenue increased 10% excluding the impact of foreign currency exchange. On a pro forma basis, which excludes the divested Red Valve and ABEL businesses in Advanced Process Solutions, revenue increased 18% year over year, or 13% excluding the impact of foreign currency exchange.<\/p>\n

Net income of $40 million<\/span>, or $0.53<\/span> per share, increased $0.21<\/span>, or 66%, largely due to volume growth in Molding Technology Solutions, productivity improvements, favorable pricing, and inventory step-up charges in the prior year that did not repeat. This growth was partially offset by inflation and unfavorable mix. Adjusted net income of $65 million<\/span> resulted in adjusted EPS of $0.85<\/span>, an increase of $0.04<\/span>, or 5%. The adjusted effective tax rate for the quarter was 30.4%, an increase of 370 basis points from the prior year, primarily due to an increase in the recognition of deferred taxes on unremitted foreign earnings as well as an unfavorable impact of recent German tax legislation. <\/p>\n

Adjusted EBITDA of $126 million<\/span> increased 4% year over year.\u00a0 On a pro forma basis, adjusted EBITDA increased 7% primarily driven by higher volume.\u00a0 Adjusted EBITDA margin of 18.2% decreased 170 basis points compared to a year ago primarily due to cost inflation and unfavorable mix, which more than offset operating leverage from higher volume, productivity improvements, and favorable pricing.<\/p>\n

\n
\n Advanced Process Solutions (APS)<\/u>
\n <\/b>\n <\/p>\n

Revenue of $313 million<\/span> increased 11% compared to the same period in the prior year. Revenue increased 5% excluding the impact of foreign currency exchange. On a pro forma basis, which excludes the divested Red Valve and ABEL businesses, revenue increased 18% year over year, or 11% excluding the impact of foreign currency, primarily driven by an increase in large plastics projects and favorable pricing. <\/p>\n

Adjusted EBITDA of $61 million<\/span> increased 6% year over year.\u00a0 On a pro forma basis, adjusted EBITDA increased 13% driven by higher volume, favorable pricing, and productivity improvements, partially offset by cost inflation and an increase in strategic investments.\u00a0 Adjusted EBITDA margin of 19.5% decreased 100 basis points on a pro forma basis as cost inflation and strategic investments more than offset productivity improvements, favorable pricing, and operating leverage from higher volume. <\/p>\n

Record backlog of $1.4 billion<\/span> increased 52% on a pro forma basis compared to the prior year, or 45% excluding the impact of foreign currency, primarily driven by an increase in order volume for large polyolefin systems. Sequentially, backlog increased 19% compared to the quarter ended March 31, 2021<\/span>.<\/p>\n

\n
\n Molding Technology Solutions (MTS)<\/u>
\n <\/b>\n <\/p>\n

Revenue of $244 million<\/span> increased 31% year over year driven by increases across all product lines. Excluding the impact of foreign currency, revenue increased 26%.\u00a0\u00a0<\/p>\n

Adjusted EBITDA of $49 million<\/span> increased 29%, largely driven by volume growth and productivity improvements, partially offset by unfavorable mix due to an increased proportion of injection molding equipment and cost inflation. Adjusted EBITDA margin of 20.2% decreased 30 basis points as the impact of unfavorable mix and cost inflation more than offset operating leverage from higher volume and productivity improvements.<\/p>\n

Record backlog of $388 million<\/span> increased 110% year over year driven by an increase in orders for injection molding, extrusion, and hot runner equipment.\u00a0 Sequentially, backlog increased 7% compared to the quarter ended March 31, 2021<\/span>.<\/p>\n

\n
\n
\n Batesville<\/span>
\n <\/u>
\n <\/b>\n <\/p>\n

Revenue of $138 million<\/span> decreased 1% year over year due to lower burial casket sales resulting from an estimated decline in deaths associated with the COVID-19 pandemic. This decrease was partially offset by higher average selling price. <\/p>\n

Adjusted EBITDA of $30 million<\/span> decreased 18% year over year, and adjusted EBITDA margin of 21.6% was 440 basis points lower than the prior year primarily driven by commodity and non-commodity inflation and lower volume.<\/p>\n

\n
\n Balance Sheet, Cash Flow and Capital Allocation<\/u>
\n <\/b>\n <\/p>\n

Hillenbrand generated cash flow from operations of $184 million<\/span> in the quarter, an increase of $109 million<\/span> year over year, primarily driven by favorable timing of working capital and higher earnings. During the quarter, the Company repurchased approximately 993,000 shares for $43.4 million<\/span> at an average share price of $43.73<\/span> and returned $16 million<\/span> to shareholders in the form of quarterly dividends. \u00a0Subsequent to the quarter, the Company purchased an additional 1,289,000 shares through the end of July for $56.6 million<\/span> or an average share price of $43.88<\/span>.<\/p>\n

Net debt at the end of the quarter was $736 million<\/span>, and the net debt to adjusted EBITDA ratio was 1.4x, a sequential decrease of 0.3x from March 31, 2021<\/span>. As of quarter end, we had liquidity of approximately $1.4 billion<\/span>, including $476 million<\/span> in cash on hand and the remainder available under our revolving credit facility.<\/p>\n

\n
\n Fiscal Q4 2021 Outlook<\/u>
\n <\/b>\n <\/p>\n

Given continued uncertainties related to the COVID-19 pandemic, including pandemic duration, severity and resurgence in various parts of the world, vaccine availability and effectiveness, supply chain disruptions and other effects, the Company’s outlook assumes a continued gradual stabilization of the global economy and no significant increase in pandemic-related disruptions to the Company’s businesses:<\/p>\n