) reported adjusted earnings of 57 cents per share for
third-quarter fiscal 2014 (ended Jun 2014). The bottom-line grew
18.8% from 48 cents earned in the year-ago quarter.
Hillenbrand generated net revenues of $416.8 million, up 2.0% year
over year, primarily driven by improved revenues from the Process
The company's segmental results are discussed below:
Revenues from the Process Equipment Group were $274 million,
reflecting a year-over-year increase of 5%, or 2% on a constant
currency basis. Order backlog was $731 million versus $572 million
at the end of the year-ago quarter.
Batesville segment's revenues declined 4%, or 3% on a constant
currency basis, to $143 million. Lower number of burials in North
America adversely impacted selling price and volumes.
Hillenbrand's cost of sales was relatively flat at $267.6 million
and, as a percentage of revenue, was 64.2% versus 65.4% in the
prior-year quarter. Gross margin climbed 120 basis points (bps) to
35.8%. Operating expenses, as a percentage of revenue, were 22.3%,
down from 22.4% in the year-ago quarter.
Adjusted earnings before interest, tax, depreciation and
amortization (EBITDA) came in at $71 million, up 11% year over
year. EBITDA margin came in at 17.0%.
Balance Sheet/ Cash Flow
Exiting third-quarter fiscal 2014, Hillenbrand had cash and cash
equivalents of $61.7 million versus $51 million in the preceding
In the nine months ended Jun 2014, Hillenbrand generated cash of
$136.9 million from its operating activities as against $50.8
million produced in the year-ago comparable period.
For fiscal 2014, Hillenbrand maintained its revenue guidance at
approximately $1.7 billion, including contributions of $1.1 billion
from the Process Equipment Group and roughly $600 million from the
Batesville segment. Top-line result is expected to gain 1% from
favourable currency translation impacts. Adjusted earnings are
anticipated in a range of $2.00−$2.10 per share.
With a market capitalization of $1.9 billion, Hillenbrand currently
carries a Zacks Rank #3 (Hold). Better-ranked companies in the
industry include Ingersoll-Rand Plc (
), Badger Meter Inc. (
) and Roper Industries Inc. (
). All these stocks hold a Zacks Rank #2 (Buy).
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