Hillenbrand, Inc. Reports Second Quarter Revenue of $191.4 Million, Up 5.6% Over Prior Year, and Confirms 2008 Earnings Guidance
Second-quarter operating profit of $40.9 million includes the effects ofone-time separation costs of $12.9 million and incremental corporate costs of$2.6 million. Excluding these costs, the operating results from our corecasket and cremation business showed a solid growth rate in excess of ourrevenue growth rate. We currently expect our annual public company costs to be$17 million to $19 million in fiscal 2009.
An additional separation-related impact on our financial performance isthe increase in our tax rate from 36.2 percent to 43.0 percent because certainnon-recurring separation costs are not deductible. We do not expect this taxrate to continue at the current level.
As a result of the factors noted above, our GAAP net income for thequarter was $23.3 million or $0.37 fully diluted earnings per share, down from$33.3 million or $0.53 fully diluted earnings per share reported in the secondquarter of the prior year. Excluding anti-trust litigation and separationcosts, net income of $34.5 million was essentially unchanged in the quarter asimproved operating results offset the incremental corporate costs discussedabove. Cash flow from operations for the quarter was $26.8 million.
"Overall, the operating results of our core business reflect betterperformance than the prior year in key areas of the company despite increasedcosts for health care, fuel and commodities," said Kenneth A. Camp, presidentand CEO of Hillenbrand, Inc. "Although we expect to face increased fuel andcommodity cost pressures in the second half of the year, we are reaffirmingour previous guidance for the 2008 fiscal year."
"Our leadership team is invigorated by the reception we have received as anew publicly traded company and we are excited about continuing to exploregrowth opportunities to build long-term value for our shareholders," Campconcluded.
Additional assumptions and discussion will be provided during thecompany's conference call to be held later today.
Conference Call and Webcast
The company will sponsor a conference call and webcast for the investingpublic at 5 p.m. EDT Tuesday, May 13, 2008. During the event, management willdiscuss the results for the fiscal second quarter ended March 31, 2008, alongwith expectations for the remainder of fiscal 2008. The webcast is availableat http://www.hillenbrandinc.com and will be archived on the company's Website through May 12, 2009, for those unable to listen to the live webcast.
Participants may listen to the conference call by dialing 1-877-397-0300(1-719-325-4851 for international callers). A replay of the call will beavailable through May 27, 2008, at 1-888-203-1112 (1-719-457-0820 forinternational callers). Please use the confirmation code 9845397.
Non-GAAP Financial Disclosures and Reconciliations for Second Quarter
While Hillenbrand, Inc. reports financial results in accordance with U.S.GAAP, this press release includes non-GAAP measures. These non-GAAP measuresare not in accordance with, nor are they a substitute for, GAAP measures.Hillenbrand, Inc. uses the non-GAAP measures to evaluate and manage itsoperations and provides the information to assist investors in performingfinancial analysis that is consistent with financial models developed byre
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