Hillenbrand Reports Second-Quarter Revenue of $397 Million

          Hillenbrand Reports Second-Quarter Revenue of $397 Million

- Process Equipment Group revenue increased 5% to $240 million

- Batesville revenue decreased 8% to $157 million

- Diluted EPS increased to $0.51 (10% increase to $0.54 on adjusted basis)

- Process Equipment Group order backlog at record-high of $717 million

PR Newswire

BATESVILLE, Ind., May 5, 2014

BATESVILLE, Ind., May 5, 2014 /PRNewswire/ --Hillenbrand, Inc. (NYSE: HI)
reported results today for the second quarter ended March 31, 2014. Revenue
was $397 million compared to $399 million in the prior year. Revenue increased
for the Process Equipment Group by 5% to $240 million (3% constant currency).
In addition, order backlog at the end of the second quarter reached an
all-time high of $717 million, representing a $106 million increase over the
first quarter and a $173 million increase over the prior year. Batesville
revenue was $157 million, an 8% decrease (7% constant currency) driven by a
lower number of North American burials.

"Order backlog grew significantly throughout the Process Equipment Group,
supporting our projection of mid-single-digit organic revenue growth this year
for this group," said Joe A. Raver, President and Chief Executive Officer. "We
are also pleased that Batesville delivered strong gross margins and cash flow
to support our growth strategy, despite the significant headwind from the
decline in North American deaths this year compared to the record number of
deaths last year."

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 160% to $33 million ($0.51 per diluted
share), while adjusted net income increased 12% to $34 million ($0.54 per
diluted share). Adjusted EBITDA increased 8% to $69 million. These increases
were driven by a $5 million gain from the exercise of warrants to purchase
common stock of Forethought Financial Group, a $3 million gain on limited
partnership investments, and a $3 million gain related to the cancellation of
a service agreement at Batesville. These gains and a $2 million increase in
adjusted EBITDA for the Process Equipment Group more than offset the impact of
lower volumes in the Batesville segment. Operating cash flow improved by $62
million to $82 million due to higher net income and significant improvement in
working capital.

Guidance for Fiscal 2014
Hillenbrand affirmed guidance with estimated full-year revenue expected to be
approximately $1.7 billion. Revenue from the Process Equipment Group is
expected to be approximately $1.1 billion and Batesville is anticipated to
deliver approximately $600 million in revenue. Given current foreign exchange
rates, management expects minimal translation impact to revenue compared to
2013. Adjusted diluted EPS for 2014 is projected to range from $2.00 to $2.10.

Conference Call Information
Date/Time:                   8:00 a.m. EDT, Tuesday, May 6, 2014
Dial-In for U.S. and Canada: 1-877-201-0168
Dial-In for International:   +1-647-788-4901
Conference call ID number:   30133997
Webcast link:                http://ir.hillenbrand.com (archived through
                             Thursday, June 5, 2014)
Replay - Conference Call
Date/Time:                   Available until midnight EDT, Tuesday, May 20,
Dial-In for U.S. and Canada: 1-855-859-2056
Dial-In for International:   +1-404-537-3406
Conference call ID number:   30133997

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

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.

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.

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.

Another important non-GAAP operational measure used is backlog. Backlog is not
a term recognized under GAAP; however it is a common measurement used in the
Process Equipment Group's industry. Order backlog represents the amount of
consolidated revenue that we expect to realize on contracts awarded related to
the Process Equipment Group. Backlog includes expected revenue from large
systems, equipment, and to a lesser extent, replacement parts, components, and
service. The length of time that projects remain in backlog can span from days
for replacement parts and service to approximately 18 months for larger system
sales. Backlog includes expected revenue from the remaining portion of firm
orders not yet completed, as well as revenue from change orders to the extent
that it is reasonably expected to to be realized. For purposes of calculating
backlog, 100% of estimated revenue attributable to consolidated subsidiaries
is included, an insignificant portion of which is not wholly-owned by

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

Net revenue is analyzed on a constant currency basis to better measure the
comparability of results between periods. This information is provided because
exchange rates can distort the underlying change in sales, either positively
or negatively.

See below for a reconciliation from GAAP operating performance measures to the
most directly comparable non-GAAP (adjusted) performance measures. There is
no GAAP financial measure comparable to backlog; therefore, a quantitative
reconciliation of backlog is not provided.

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    Six Months Ended
                                    March 31,             March 31,
                                    2014       2013       2014       2013
Net revenue                         $ 396.8    $ 398.5    $ 781.7    $ 703.7
Cost of goods sold                    254.0      264.5      507.9      459.2
 Gross profit                   142.8      134.0      273.8      244.5
Operating expenses                    99.9       108.4      193.9      194.8
 Operating profit               42.9       25.6       79.9       49.7
Interest expense                      5.6        6.8        11.9       11.3
Other income (expense), net           9.7        (0.3)      9.6        0.6
 Income before income taxes     47.0       18.5       77.6       39.0
Income tax expense                    13.7       5.3        22.7       11.2
 Consolidated net income        33.3       13.2       54.9       27.8
Less: Net income attributable to
noncontrolling                        0.3        0.5        1.6        0.8

 Net income^1                 $ 33.0     $ 12.7     $ 53.3     $ 27.0
Net income^1 – per share of
common stock:
Basic earnings per share            $ 0.52     $ 0.20     $ 0.84     $ 0.43
Diluted earnings per share          $ 0.51     $ 0.20     $ 0.83     $ 0.43
Weighted average shares               63.3       62.7       63.2       62.6
outstanding — basic
Weighted average shares               63.9       63.1       63.9       62.9
outstanding — diluted
Cash dividends per share            $ 0.1975   $ 0.1950   $ 0.3950   $ 0.3900
^1 Net income attributable to

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

                                                         March 31,
                                                         2014       2013
Net cash provided by operating activities                $ 82.2     $ 19.7
Net cash used in investing activities                      (4.1)      (423.9)
Net cash (used in) provided by financing activities        (68.5)     424.0
Effect of exchange rate changes on cash and cash           (1.3)      0.7
Net cash flow                                              8.3        20.5
Cash and cash equivalents:
At beginning of period                                     42.7       20.2
At end of period                                         $ 51.0     $ 40.7

Reconciliation of Non-GAAP Measures
(in millions, except per share data)
              Three months ended March 31,
              2014                              2013
              GAAP    Adjustments     Adjusted  GAAP   Adjustments     Adjusted
Cost of       $     $          $      $    $          $   
goods sold             0.2     (a) 254.2           (9.7)   (c) 254.8
              254.0                            264.5
Operating     99.9    (2.3)       (b) 97.6      108.4  (15.2)      (d) 93.2
Interest      5.6     -               5.6       6.8    (0.6)       (e) 6.2
Other income
(expense),    9.7     -               9.7       (0.3)  -               (0.3)
Income tax    13.7    0.7         (k) 14.4      5.3    7.6         (k) 12.9
Net income^1  33.0    1.4             34.4      12.7   17.9            30.6
Diluted EPS   0.51    0.03            0.54      0.20   0.29            0.49
Gross margin  36.0%   (0.1%)          35.9%     33.6%  2.5%            36.1%
expenses as   25.2%   (0.6%)          24.6%     27.2%  (3.8%)          23.4%
a % of
              Six months ended March 31,
              2014                              2013
              GAAP    Adjustments     Adjusted  GAAP   Adjustments     Adjusted
Cost of       $     $          $      $    $          $   
goods sold             0.1     (f) 508.0          (12.7)    (h) 446.5
              507.9                            459.2
Operating     193.9   (4.4)       (g) 189.5     194.8  (28.8)      (i) 166.0
Interest      11.9    -               11.9      11.3   (0.6)       (e) 10.7
Other income
(expense),    9.6     -               9.6       0.6    (0.9)       (j) (0.3)
Income tax    22.7    1.3         (k) 24.0      11.2   11.8        (k) 23.0
Net income^1  53.3    3.0             56.3      27.0   29.4            56.4
Diluted EPS   0.83    0.05            0.88      0.43   0.47            0.90
Gross margin  35.0%   -               35.0%     34.7%  1.8%            36.5%
expenses as   24.8%   (0.6%)          24.2%     27.7%  (4.1%)          23.6%
a % of
^1Net income

    P = Process Equipment Group; B = Batesville; C = Corporate
(a) Restructuring ($0.1 P, $0.3 credit B)
(b) Business acquisition and integration costs ($0.3P, $0.8 C), restructuring
    ($1.2 C)
(c) Inventory step up ($8.1 P), restructuring ($0.1 P, $1.5 B)
(d) Business acquisition and integration costs ($0.3 P, $1.6 C), backlog
    amortization ($12.9 P), restructuring ($0.4 B)
(e) Business acquisition and integration costs ($0.6 C)
(f) Restructuring ($0.1 P, $0.2 credit B)
(g) Business acquisition and integration costs ($1.0 P, $2.0 C),
    restructuring ($0.2 P, $1.2 C)
(h) Inventory step up ($10.7 P), restructuring ($0.2 P, $1.8 B)
    Business acquisition and integration costs ($0.3 P, $10.6 C), backlog
(i) amortization ($17.1 P), restructuring ($0.5 B, $0.2 C), antitrust
    litigation ($0.1 B)
(j) Acquisition-related foreign currency transactions ($0.8 C), other ($0.1
(k) Tax effect of adjustments

                                Three Months Ended   Six Months Ended

                                March 31,            March 31,
                                2014       2013      2014     2013
 Adjusted EBITDA:
 Process Equipment Group        $  26.0    $ 24.2    $ 52.7   $ 45.2
 Batesville                        44.9      48.4      79.4     86.9
 Corporate                         (1.7)     (8.5)     (9.7)    (16.5)
 Interest income                   (0.1)     (0.2)     (0.3)    (0.3)
 Interest expense                  5.6       6.8       11.9     11.3
 Income tax expense                13.7      5.3       22.7     11.2
 Depreciation and amortization     14.7      27.8      29.0     42.9
 Business acquisition costs        1.1       1.8       3.0      10.0
 Inventory step-up                 —         8.1       —        10.7
 Restructuring                     0.9       1.3       1.2      1.9
 Antitrust litigation              —         —         —        0.1
Consolidated net income         $  33.3    $ 13.2    $ 54.9   $ 27.8

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 March 31, 2014, filed with the
Securities and Exchange Commission on May 5, 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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