Hillenbrand First-Quarter Revenue Increased 26% to $385 Million

       Hillenbrand First-Quarter Revenue Increased 26% to $385 Million

-- Process Equipment Group revenue increased 58% to $242 million

-- Order backlog increased to $611 million

PR Newswire

BATESVILLE, Ind., Feb. 4, 2014

BATESVILLE, Ind., Feb. 4, 2014 /PRNewswire/ --Hillenbrand, Inc. (NYSE: HI)
reported results today for the first quarter ended December 31, 2013. Revenue
was $385 million, representing 26% growth over the prior year. The Process
Equipment Group reported revenue of $242 million, a 58% increase due primarily
to the acquisition of Coperion in December 2012, and order backlog of $611
million, a 1% increase from September 30, 2013. Batesville revenue was $143
million, a 6% decrease driven by a lower number of North American burials.

"We continue to be encouraged by order activity throughout the Process
Equipment Group, with backlog once again at a record-high level. Given our
visibility into backlog, we expect mid-single-digit revenue growth for this
group for the year," said Joe A. Raver, President and Chief Executive Officer
of Hillenbrand. "Batesville delivered a solid performance this quarter, with
improved margins despite reduced volume. We expect a similar volume decrease
in the second quarter, as pneumonia and influenza are expected to have less of
an impact on the number of deaths this year than they did last year."

Hillenbrand reports results on a GAAP and adjusted basis. Adjusted measures
are reconciled to the corresponding GAAP measures at the end of this release.
Net income increased 42% to $20 million ($0.32 per diluted share) primarily
due to lower Coperion acquisition-related costs. On an adjusted basis, net
income decreased 15% to $22 million ($0.34 per diluted share) driven primarily
by lower revenue at Batesville. Adjusted EBITDA increased 4% to $53 million
and operating cash flow was up $26 million to $46 million.

"Our growth strategy has transformed Hillenbrand into a global diversified
industrial company," said Raver. "We have made substantial investments over
the past three years and believe we are well-positioned to deliver long-term
growth and value for our shareholders."

Conference Call Information
Date/Time:                        8:00 a.m. EST, Wednesday, February 5, 2014
Dial-In for U.S. and Canada:      1-877-853-5642
Dial-In for International:        +1-253-237-1134
Conference call ID number:        50525720
Webcast link:                     http://ir.hillenbrand.com (archived through
                                  Wednesday, March 5, 2014)
Replay - Conference Call
Date/Time: Available until midnight EST, Wednesday,
                                  February 19, 2014
Dial-In for U.S. and Canada:      1-855-859-2056
Dial-In for International:        +1-404-537-3406
Conference call ID number:        50525720

Hillenbrand's interim financial statements on Form 10-Q are expected to be
filed jointly with this release and will be available on the Company's website
(www.Hillenbrand.com).

In addition to the financial measures prepared in accordance with accounting
principles generally accepted in the U.S. (GAAP), this earnings release also
contains non-GAAP operating performance measures. These non-GAAP measures are
referred to as "adjusted" and exclude expenses associated with backlog
amortization, inventory step-up, business acquisitions and integration,
restructuring, and antitrust litigation. The related income tax for all of
these items is also excluded. This non-GAAP information is provided as a
supplement, not as a substitute for, or as superior to, measures of financial
performance prepared in accordance with GAAP.

An important non-GAAP measure Hillenbrand uses is adjusted earnings before
interest, income tax, depreciation, and amortization ("adjusted EBITDA"). As
previously discussed, a part of Hillenbrand's strategy is to selectively
acquire companies that we believe can benefit from our core competencies to
spur faster and more profitable growth. Given that strategy, it is a natural
consequence to incur related expenses, such as amortization from acquired
intangible assets and additional interest expense from debt-funded
acquisitions. Accordingly, we use adjusted EBITDA, among other measures, to
monitor business performance.

Hillenbrand uses this non-GAAP information internally to make operating
decisions and believes it is helpful to investors because it allows more
meaningful period-to-period comparisons of ongoing operating results. The
information can also be used to perform trend analysis and to better identify
operating trends that may otherwise be masked or distorted by these types of
items. Finally, Hillenbrand believes this information provides a higher degree
of transparency.

See below for a reconciliation from GAAP operating performance measures to the
relevant non-GAAP (adjusted) performance measures.

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, robust cash
generation capabilities, and strong core competencies.  HI-INC-F



Consolidated Statements of Income
(in millions, except per share data)
                                                          Three Months Ended
                                                          December 31,
                                                          2013       2012
Net revenue                                               $ 384.9    $ 305.2
Cost of goods sold                                          253.9      194.7
 Gross profit                                         131.0      110.5
Operating expenses                                          94.0       86.4
 Operating profit                                     37.0       24.1
Interest expense                                            6.3        4.5
Other income (expense), net                                 (0.1)      0.9
 Income before income taxes                           30.6       20.5
Income tax expense                                          9.0        5.9
 Consolidated net income                               21.6       14.6
Less: Net income attributable to noncontrolling             1.3        0.3
interests
 Net income^1                                         $ 20.3     $ 14.3
Net income^1 per share of common stock:
Basic earnings per share                                  $ 0.32     $ 0.23
Diluted earnings per share                                $ 0.32     $ 0.23
Weighted-average shares outstanding — basic                 63.1       62.4
Weighted-average shares outstanding — diluted               63.7       62.6
Cash dividends per share                                  $ 0.1975   $ 0.1950
^1Net income attributable to Hillenbrand



Condensed Consolidated Statements of Cash Flow
(in millions)
                                                         Three Months Ended

                                                         December 31,
                                                         2013       2012
Net cash provided by operating activities                $ 45.9     $ 19.7
Net cash used in investing activities                      (6.2)      (418.6)
Net cash (used in) provided by financing activities        (19.3)     480.0
Effect of exchange rate changes on cash and cash           (0.8)      0.8
equivalents
Net cash flow                                              19.6       81.9
Cash and cash equivalents:
At beginning of period                                     42.7       20.2
At end of period                                         $ 62.3     $ 102.1



Reconciliation of Non-GAAP Measures
(in millions, except per share data)
            Three Months Ended December 31,
            2013                            2012
            GAAP     Adjustments  Adjusted  GAAP     Adjustments  Adjusted
Cost of     $ 253.9  $  (0.1)     $  253.8  $ 194.7  $  (3.0)     $  191.7
goods sold              (a)                             (d)
Operating     94.0      (2.1)        91.9     86.4      (13.6)       72.8
expenses                (b)                             (e)
Other                                                   
income
              (0.1)     —            (0.1)    0.9       (0.9)        —
(expense),                                              (f)
net
Income tax    9.0       0.6 (c)      9.6      5.9       4.2 (c)      10.1
expense
Net           20.3      1.6          21.9     14.3      11.5         25.8
income^1
Diluted       0.32      0.02         0.34     0.23      0.18         0.41
EPS
Ratios:
Gross         34.0%     0.1%         34.1%    36.2%     1.0%         37.2%
margin
Operating
expenses
              24.4%     (0.5)%       23.9%    28.3%     (4.4)%       23.9%
as a % of
revenue

Both GAAP and adjusted results for the three months ended December 31, 2013,
include an adjustment to operating expenses to correct errors related to the
accounting for sales commissions at Coperion in fiscal 2013. The adjustment
reduced operating expenses in the first quarter of fiscal 2014 by $2.0, which
should have been recorded in fiscal 2013.
^1 Net income attributable to Hillenbrand
P = Process Equipment Group; B = Batesville; C = Corporate
(a) Restructuring ($0.1 B)
(b) Business acquisition and integration costs ($0.7 P, $1.2 C),
restructuring ($0.2 P)
(c) Tax effect of adjustments
(d) Inventory step up ($2.6 P), restructuring ($0.1 P, $0.3 B)
(e) Business acquisition and integration costs ($9.0 C), backlog amortization
($4.2 P), restructuring ($0.2 C),

antitrust litigation ($0.1 B), other ($0.1 B)
(f) Acquisition-related foreign currency transactions ($0.8 C), other ($0.1
B)



                                           Three Months Ended

                                           December 31,
                                           2013       2012
Net income of consolidated and affiliated
subsidiaries                               $  21.6    $ 14.6
Interest income                               (0.2)     (0.1)
Interest expense                              6.3       4.5
Income tax expense                            9.0       5.9
Depreciation and amortization                 14.3      15.0
EBITDA                                     $  51.0    $ 39.9
Business acquisition and integration          1.9       8.2
Inventory step-up                             —         2.6
Restructuring                                 0.3       0.6
Antitrust litigation                          —         0.1
EBITDA – adjusted                          $  53.2    $ 51.4



Throughout this release, we make a number of forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995. As the
words imply, forward-looking statements are statements about the future, as
contrasted with historical information. Our forward-looking statements are
based on assumptions and current expectations of future events that we believe
are reasonable, but by their very nature they are subject to a wide range of
risks. If our assumptions prove inaccurate or unknown risks and uncertainties
materialize, actual results could vary materially from Hillenbrand's
expectations and projections.

Words that could indicate that we are making forward-looking statements
include the following:

intend   believe   plan     expect  may      goal      would
become   pursue    estimate will    forecast continue  could
targeted encourage promise  improve progress potential should

This is not an exhaustive list. Our intent is to provide examples of how
readers might identify forward-looking statements. The absence of any of these
words, however, does not mean that the statement is not forward-looking.

Here is the key point: Forward-looking statements are not guarantees of future
performance, and our actual results could differ materially from those set
forth in any forward-looking statements. Any number of factors, many of which
are beyond our control, could cause our performance to differ significantly
from what is described in the forward-looking statements. These factors
include, but are not limited to: the outcome of any legal proceedings that may
be instituted against Hillenbrand, or any companies we may acquire; risks that
an acquisition disrupts current operations or poses potential difficulties in
employee retention or otherwise affects financial or operating results; the
ability to recognize the benefits of an acquisition, including potential
synergies and cost savings or the failure of an acquired company to achieve
its plans and objectives generally; global market and economic conditions,
including those related to the credit markets; volatility of our investment
portfolio; adverse foreign currency fluctuations; ongoing involvement in
claims, lawsuits and governmental proceedings related to operations; labor
disruptions; the dependence of our business units on relationships with
several large providers; increased costs or unavailability of raw materials;
continued fluctuations in mortality rates and increased cremations;
competition from nontraditional sources in the death care industry; cyclical
demand for industrial capital goods; and certain tax-related matters. For a
more in-depth discussion of these and other factors that could cause actual
results to differ from those contained in forward-looking statements, see the
discussions under the heading "Risk Factors" in Part II, Item 1A of
Hillenbrand's Form 10-Q for the quarter ended December 31, 2013, filed with
the Securities and Exchange Commission on February 4, 2014. The company
assumes no obligation to update or revise any forward-looking information.

SOURCE Hillenbrand, Inc.

Website: http://www.Hillenbrand.com
Contact: Chris Gordon, Director, Investor Relations, Phone: 812-931-5001,
Email: chris.gordon@hillenbrand.com
 
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