Hillenbrand Reports Fiscal Third Quarter 2024 Results
Hillenbrand (NYSE: HI) reported fiscal Q3 2024 results with revenue at $787 million, a 10% increase YoY, but a 8% decline in organic revenue. GAAP EPS was $(3.53), down from $0.60 due to $265 million in non-cash impairment charges. Adjusted EPS fell 11% to $0.85. Adjusted EBITDA rose 4% to $131 million, though organic adjusted EBITDA decreased 14%.
Advanced Process Solutions saw a 23% revenue increase to $569 million, while organic revenue was down 6%. Adjusted EBITDA increased 17% to $109 million. Molding Technology Solutions experienced a 14% revenue drop to $217 million with adjusted EBITDA decreasing 32% to $35 million.
Updated FY2024 guidance forecasts adjusted EPS of $3.20 - $3.30, down from $3.30 - $3.50. Free cash flow guidance was revised to approximately $100 million from $130 - $150 million.
Hillenbrand (NYSE: HI) ha riportato i risultati fiscali del terzo trimestre 2024 con un fatturato di 787 milioni di dollari, un aumento del 10% rispetto all'anno precedente, ma una diminuzione dell'8% nel fatturato organico. L'utile per azione GAAP è stato di $(3.53), in calo rispetto a $0.60 a causa di oneri di svalutazione non monetari per 265 milioni di dollari. L'utile per azione rettificato è sceso dell'11% a $0.85. L'EBITDA rettificato è aumentato del 4% a 131 milioni di dollari, sebbene l'EBITDA rettificato organico sia diminuito del 14%.
Advanced Process Solutions ha registrato un aumento del fatturato del 23% a 569 milioni di dollari, mentre il fatturato organico è sceso del 6%. L'EBITDA rettificato è aumentato del 17% a 109 milioni di dollari. Molding Technology Solutions ha subito un calo del fatturato del 14% a 217 milioni di dollari con un EBITDA rettificato che è diminuito del 32% a 35 milioni di dollari.
Le previsioni aggiornate per l'anno fiscale 2024 indicano un utile per azione rettificato di $3.20 - $3.30, in calo rispetto a $3.30 - $3.50. Le previsioni sul flusso di cassa libero sono state riviste a circa 100 milioni di dollari rispetto ai precedenti 130 - 150 milioni di dollari.
Hillenbrand (NYSE: HI) reportó los resultados fiscales del tercer trimestre de 2024 con ingresos de 787 millones de dólares, un aumento del 10% interanual, pero una disminución del 8% en ingresos orgánicos. El BPA GAAP fue de $(3.53), bajando de $0.60 debido a cargos de deterioro no monetarios de 265 millones de dólares. El BPA ajustado cayó un 11% a $0.85. El EBITDA ajustado aumentó un 4% a 131 millones de dólares, aunque el EBITDA ajustado orgánico disminuyó un 14%.
Advanced Process Solutions vio un aumento del 23% en ingresos hasta 569 millones de dólares, mientras que los ingresos orgánicos cayeron un 6%. El EBITDA ajustado aumentó un 17% a 109 millones de dólares. Molding Technology Solutions experimentó una caída del 14% en ingresos a 217 millones de dólares con el EBITDA ajustado disminuyendo un 32% a 35 millones de dólares.
Las guías actualizadas para el año fiscal 2024 pronostican un BPA ajustado de $3.20 - $3.30, bajando de $3.30 - $3.50. La guía de flujo de caja libre se revisó a aproximadamente 100 millones de dólares desde los 130 - 150 millones de dólares.
Hillenbrand (NYSE: HI)는 2024 회계연도 3분기 결과를 보고했으며, 수익은 7억 8,700만 달러로 전년 대비 10% 증가했으나 유기적 수익은 8% 감소했습니다. GAAP 주당 순이익은 $(3.53)으로, 비현금 손상 비용 2억 6,500만 달러로 인해 $0.60에서 하락했습니다. 조정된 주당 순이익은 11% 하락하여 $0.85로 기록되었습니다. 조정된 EBITDA는 4% 증가하여 1억 3,100만 달러에 도달했으나 유기 조정된 EBITDA는 14% 감소했습니다.
Advanced Process Solutions는 5억 6,900만 달러로 23%의 수익 증가를 보였고, 유기적 수익은 6% 감소했습니다. 조정된 EBITDA는 17% 증가하여 1억 800만 달러에 이르렀습니다. Molding Technology Solutions는 2억 1,700만 달러로 14%의 수익 감소를 경험했으며 조정된 EBITDA는 32% 감소하여 3,500만 달러에 달했습니다.
2024 회계연도에 대한 업데이트된 가이드는 조정된 주당 순이익을 $3.20 - $3.30로 예측하며, 이는 이전의 $3.30 - $3.50에서 하락한 수치입니다. 자유 현금 흐름 가이드는 약 1억 달러로 수정되었습니다. 이전 예측은 1억 3,000만 - 1억 5,000만 달러였습니다.
Hillenbrand (NYSE: HI) a annoncé les résultats financiers du troisième trimestre 2024, avec un chiffre d'affaires de 787 millions de dollars, soit une augmentation de 10 % par rapport à l'année précédente, mais une baisse de 8 % du chiffre d'affaires organique. Le BPA GAAP s'élevait à $(3.53), en baisse par rapport à $0.60 en raison de charges de dépréciation non monétaires de 265 millions de dollars. Le BPA ajusté a chuté de 11 % à $0.85. L'EBITDA ajusté a augmenté de 4 % à 131 millions de dollars, bien que l'EBITDA ajusté organique ait diminué de 14 %.
Advanced Process Solutions a enregistré une augmentation de 23 % du chiffre d'affaires à 569 millions de dollars, tandis que le chiffre d'affaires organique a diminué de 6 %. L'EBITDA ajusté a augmenté de 17 % à 109 millions de dollars. Molding Technology Solutions a connu une baisse du chiffre d'affaires de 14 % à 217 millions de dollars, le BPA ajusté ayant diminué de 32 % à 35 millions de dollars.
Les prévisions mises à jour pour l'exercice 2024 prévoient un BPA ajusté de $3.20 - $3.30, en baisse par rapport à $3.30 - $3.50. Les prévisions de flux de trésorerie disponibles ont été révisées à environ 100 millions de dollars contre 130 - 150 millions de dollars précédemment.
Hillenbrand (NYSE: HI) hat die Ergebnisse für das dritte Geschäftsquartal 2024 veröffentlicht, mit Umsätzen von 787 Millionen US-Dollar, einem Anstieg von 10% im Jahresvergleich, jedoch einem Rückgang des organischen Umsatzes um 8%. Der GAAP-Gewinn pro Aktie betrug $(3.53), ein Rückgang von $0.60 aufgrund von nicht zahlungswirksamen Wertminderungen in Höhe von 265 Millionen US-Dollar. Der bereinigte Gewinn pro Aktie fiel um 11% auf $0.85. Das bereinigte EBITDA stieg um 4% auf 131 Millionen US-Dollar, obwohl das organische bereinigte EBITDA um 14% zurückging.
Advanced Process Solutions verzeichnete einen Umsatzanstieg von 23% auf 569 Millionen US-Dollar, während der organische Umsatz um 6% zurückging. Das bereinigte EBITDA stieg um 17% auf 109 Millionen US-Dollar. Molding Technology Solutions erlitt einen Umsatzrückgang von 14% auf 217 Millionen US-Dollar, wobei das bereinigte EBITDA um 32% auf 35 Millionen US-Dollar fiel.
Die aktualisierten Prognosen für das Geschäftsjahr 2024 sehen einen bereinigten Gewinn pro Aktie von $3.20 - $3.30 vor, ein Rückgang gegenüber $3.30 - $3.50. Die Prognose für den freien Cashflow wurde auf etwa 100 Millionen US-Dollar von 130 - 150 Millionen US-Dollar gesenkt.
- Revenue increased 10% YoY to $787 million.
- Adjusted EBITDA rose 4% to $131 million.
- Advanced Process Solutions revenue increased 23% to $569 million.
- Updated restructuring program on track to deliver $20 million in annual run-rate savings by FY25.
- GAAP EPS decreased to $(3.53) from $0.60 due to $265 million in non-cash impairment charges.
- Organic revenue declined 8%.
- Adjusted EPS fell 11% to $0.85.
- Organic adjusted EBITDA decreased 14%.
- Molding Technology Solutions revenue dropped 14% to $217 million.
- Operating cash flow decreased 49% to $45.6 million.
- Net debt is approximately $1.87 billion.
- Updated FY2024 guidance lowered adjusted EPS to $3.20 - $3.30 from $3.30 - $3.50.
- Revenue of
increased$787 million 10% compared to prior year; organic revenue decreased8% - GAAP EPS of
decreased from$(3.53) in the prior year primarily due to non-cash impairment charges of$0.60 ; adjusted EPS of$265 million decreased$0.85 11% compared to prior year - Previously announced restructuring program remains on track to deliver
in annual run-rate savings in FY25; accelerating additional cost actions and synergies across the enterprise$20 million - Updated Outlook: FY24 adjusted EPS of
-$3.20 , previously$3.30 -$3.30 ; Q4 adjusted EPS of$3.50 to$0.90 $1.00
Summary of Third Quarter 2024 Results1
Three Months Ended June 30, | Change | |||
(unaudited, dollars in millions, except EPS) | 2024 | 2023 | $ | % |
Total net revenue | 786.6 | 716.6 | 70.0 | 10 % |
Organic net revenue2 | 655.8 | 716.6 | (60.8) | (8) % |
GAAP net (loss) / income attributable to HI | (248.9) | 43.3 | (292.2) | (675) % |
Total adjusted EBITDA2 | 131.0 | 126.1 | 4.9 | 4 % |
Organic adjusted EBITDA2 | 108.6 | 126.1 | (17.5) | (14) % |
GAAP diluted EPS | (3.53) | 0.60 | (4.13) | (688) % |
Adjusted diluted EPS2 | 0.85 | 0.95 | (0.10) | (11) % |
Cash flows from operating activities | 45.6 | 88.9 | (43.3) | (49) % |
"We're pleased with our progress in executing our strategy during the quarter in light of a tougher than expected macro environment. Our FPM integration continued to progress well and exceeded our expectations for margin performance. However, due to the challenging macro environment, we experienced significantly lower than expected orders and revenue in our Advanced Process Solutions segment. This level of performance was primarily due to continued customer project delays, which became more widespread throughout the quarter given ongoing concerns around interest rates, inflation, and broader macroeconomic uncertainty," said Kim Ryan, President and Chief Executive Officer of Hillenbrand.
"While the demand environment for our key end markets remains more challenged than we expected, we're confident in our strategy and believe the long-term catalysts for our business remain strongly intact. We remain fully focused on managing discretionary costs and we're utilizing temporary external resources to accelerate additional cost saving initiatives across the enterprise as we navigate the difficult demand environment over the near to medium term. I'm confident that our portfolio of leading process technologies and highly-engineered solutions is well positioned for success once market conditions improve."
Third Quarter 2024 Results1
Revenue of
Net loss of
Adjusted EBITDA of
Advanced Process Solutions (APS)
Three Months Ended June 30, | Change | |||
(unaudited, dollars in millions) | 2024 | 2023 | $ | % |
Total net revenue | 569.4 | 464.7 | 104.7 | 23 % |
Organic net revenue2 | 436.6 | 464.7 | (28.1) | (6) % |
Total adjusted EBITDA2 | 109.2 | 93.6 | 15.6 | 17 % |
Margin %2 | 19.2 % | 20.1 % | (90) bps | |
Organic adjusted EBITDA2 | 86.4 | 93.6 | (7.2) | (8) % |
Margin %2 | 19.8 % | 20.1 % | (30) bps |
Revenue of
Adjusted EBITDA of
Backlog of
Molding Technology Solutions (MTS)
Three Months Ended June 30, | Change | |||
(unaudited, dollars in millions) | 2024 | 2023 | $ | % |
Net revenue | 217.2 | 251.9 | (34.7) | (14) % |
Adjusted EBITDA2 | 34.6 | 50.8 | (16.2) | (32) % |
Margin %2 | 15.9 % | 20.2 % | (430) bps |
Revenue of
Adjusted EBITDA of
Backlog of
Balance Sheet, Cash Flow and Capital Allocation
The Company's operating cash flow was
As of June 30, 2024, net debt was approximately
"Debt reduction remains our top priority for capital deployment, though our cash flow continues to be challenged by the weak demand environment. As a result, we expect our deleverage plan to remain under pressure until order patterns normalize," said Bob VanHimbergen, Chief Financial Officer of Hillenbrand.
Fiscal 2024 Outlook
Hillenbrand is updating its annual guidance range for fiscal year 2024 and is providing a fiscal Q4 outlook for adjusted earnings per share. These changes primarily reflect reduced volumes stemming from lower than expected orders.
Revenue Outlook ($M) | Updated | YOY | Previous | YOY |
Advanced Process Solutions | ||||
Molding Technology Solutions | (13)% - (12)% | (12)% - (10)% | ||
Hillenbrand | ||||
Adj. EBITDA Outlook | Updated | Total YOY | Previous | YOY |
Advanced Process Solutions | (110) - (100) bps | (120) - (90) bps | ||
Molding Technology Solutions | (290) - (240) bps | (320) - (220) bps | ||
Hillenbrand ($M) | ||||
Adj. EPS Outlook | Updated | Previous | ||
Full Year | ||||
Q4 | N/A | |||
Free Cash Flow Outlook ($M) | Updated | Previous | ||
Full Year |
1 | All financial results are reported on a continuing operations basis, excluding the divested |
2 | These are non-GAAP financial measures. See the reconciliations of Non-GAAP financial measures to their most directly comparable GAAP financial measures at the end of this release. |
Conference Call Information
Date/Time: Thursday, August 8, 2024, 8:00 a.m. ET
Dial-In for
Dial-In for International: +1-412-902-1013
Conference call ID number: 13747839
Webcast link: http://ir.hillenbrand.com under the News & Events tab (archived through Thursday, September 5, 2024)
Replay - Conference Call
Date/Time: Available until midnight ET, Thursday, August 22, 2024
Replay ID number: 13747839
Dial-In for
Dial-In for International: +1-201-612-7415
Hillenbrand's financial statements on Form 10-Q are expected to be filed jointly with this release and will be made available on the company's investor relations website (https://ir.hillenbrand.com).
In addition to the financial measures prepared in accordance with
- business acquisition, divestiture, and integration costs;
- restructuring and restructuring-related charges;
- impairment charges;
- intangible asset amortization;
- pension settlement charges;
- inventory step-up charges;
- costs associated with debt financing activities;
- other non-recurring costs related to a discrete commercial dispute;
- other individually immaterial one-time costs;
- the related income tax impact for all of these items; and
- certain tax items related to acquisitions and divestitures, the revaluation of deferred tax balances resulting from fluctuations in currency exchange rates and non-routine changes in tax rates for certain foreign jurisdictions, and the impact that the Molding Technology Solutions reportable operating segment's loss carryforward attributes have on tax provisions related to the imposition of tax on Global Intangible Low-Taxed Income (GILTI) earned by certain foreign subsidiaries, the Foreign Derived Intangible Income Deduction (FDII), and the Base Erosion and Anti-Abuse Tax (BEAT).
Refer to the Reconciliation of Non-GAAP Measures for further information on these adjustments. Non-GAAP information is provided as a supplement to, 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 measure operating segment performance and 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 items such as the above excluded items. Hillenbrand believes this information provides a higher degree of transparency.
One important non-GAAP financial measure Hillenbrand uses is adjusted earnings before interest, income tax, depreciation, and amortization ("adjusted EBITDA"). A part of our strategy is to selectively acquire companies that we believe can benefit from the Hillenbrand Operating Model 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 our business performance. We also use "adjusted net income" and "adjusted diluted earnings per share (EPS)," which are defined as net income and earnings per share, respectively, each excluding items described in connection with adjusted EBITDA. Adjusted EBITDA, adjusted net income, and adjusted diluted EPS are not recognized terms under GAAP and therefore do not purport to be alternatives to net (loss) income or to diluted EPS, as applicable. Further, Hillenbrand's measures of adjusted EBITDA, adjusted net income, and adjusted diluted EPS may not be comparable to similarly titled measures of other companies.
Organic revenue and organic adjusted EBITDA are defined respectively as net revenue and adjusted EBITDA excluding recent acquisitions, including FPM and Peerless Food Equipment, and adjusting for the effects of foreign currency exchange. In addition, the ratio of net debt to pro forma adjusted EBITDA is a key financial measure that is used by management to assess Hillenbrand's borrowing capacity (and is calculated as the ratio of total debt less cash and cash equivalents to the trailing twelve months pro forma adjusted EBITDA). Trailing twelve months pro forma adjusted EBITDA is defined as adjusted EBITDA including adjusted EBITDA directly attributable to FPM in the trailing twelve month period prior to Hillenbrand's acquisition of FPM. Hillenbrand uses organic and pro forma measures to assess performance of its reportable operating segments and the Company in total without the impact of recent acquisitions and divestitures.
Hillenbrand calculates the foreign currency impact on net revenue, adjusted EBITDA, and backlog in order to better measure the comparability of results between periods. We calculate the foreign currency impact by translating current year results at prior year foreign exchange rates. This information is provided because exchange rates can distort the underlying change in sales, either positively or negatively.
Another important operational measure used is backlog. Backlog is not a term recognized under GAAP; however, it is a common measurement used in industries with extended lead times for order fulfillment (long-term contracts), like those in which our reportable operating segments compete. Backlog represents the amount of net revenue that we expect to realize on contracts awarded to our reportable operating segments. For purposes of calculating backlog,
Hillenbrand expects that future net revenue associated with our reportable operating segments will be influenced by order backlog because of the lead time involved in fulfilling engineered-to-order equipment for customers. Although backlog can be an indicator of future net 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 net revenue. Net revenue attributable to backlog may also be affected by foreign exchange fluctuations for orders denominated in currencies other than
See below for a reconciliation from GAAP operating performance measures to the most directly comparable non-GAAP (adjusted) financial performance measures. Given that backlog is an operational measure and that the Company's methodology for calculating backlog does not meet the definition of a non-GAAP financial measure, as that term is defined by the
Hillenbrand, Inc. | |||||||
Consolidated Statements of Operations (Unaudited) | |||||||
(in millions, except per share data) | |||||||
Three Months Ended June 30, | Nine Months Ended June 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Net revenue | $ 786.6 | $ 716.6 | $ 2,345.2 | $ 2,063.2 | |||
Cost of goods sold | 520.2 | 469.7 | 1,577.1 | 1,382.5 | |||
Gross profit | 266.4 | 246.9 | 768.1 | 680.7 | |||
Operating expenses | 174.2 | 143.6 | 513.5 | 421.1 | |||
Amortization expense | 25.5 | 19.7 | 76.7 | 58.6 | |||
Impairment charges | 265.0 | — | 265.0 | — | |||
Pension settlement charges | 26.9 | — | 35.2 | — | |||
Interest expense, net | 32.2 | 15.8 | 92.8 | 55.9 | |||
(Loss) income from continuing operations before income taxes | (257.4) | 67.8 | (215.1) | 145.1 | |||
Income tax (benefit) expense | (10.5) | 23.8 | 3.7 | 50.2 | |||
(Loss) income from continuing operations | (246.9) | 44.0 | (218.8) | 94.9 | |||
Income (loss) from discontinued operations (net of income tax expense (benefit)) | — | 0.6 | (0.3) | 20.1 | |||
Gain on divestiture of discontinued operations (net of income tax expense) | — | 0.4 | — | 441.3 | |||
Total income (loss) from discontinued operations | — | 1.0 | (0.3) | 461.4 | |||
Consolidated net (loss) income | (246.9) | 45.0 | (219.1) | 556.3 | |||
Less: Net income attributable to noncontrolling interests | 2.0 | 1.7 | 6.5 | 4.8 | |||
Net (loss) income attributable to Hillenbrand | $ (248.9) | $ 43.3 | $ (225.6) | $ 551.5 | |||
(Loss) earnings per share | |||||||
Basic (loss) earnings per share | |||||||
(Loss) income from continuing operations attributable to Hillenbrand | $ (3.53) | $ 0.60 | $ (3.20) | $ 1.29 | |||
Income from discontinued operations | — | 0.02 | — | 6.62 | |||
Net (loss) income attributable to Hillenbrand | $ (3.53) | $ 0.62 | $ (3.20) | $ 7.91 | |||
Diluted (loss) earnings per share | |||||||
(Loss) income from continuing operations attributable to Hillenbrand | $ (3.53) | $ 0.60 | $ (3.20) | $ 1.29 | |||
Income from discontinued operations | — | 0.02 | — | 6.59 | |||
Net (loss) income attributable to Hillenbrand | $ (3.53) | $ 0.62 | $ (3.20) | $ 7.88 | |||
Weighted average shares outstanding (basic) | 70.5 | 70.0 | 70.4 | 69.7 | |||
Weighted average shares outstanding (diluted) | 70.5 | 70.3 | 70.4 | 70.0 | |||
Cash dividends per share | $ 0.2225 | $ 0.2200 | $ 0.6675 | $ 0.6600 |
Condensed Consolidated Statements of Cash Flows | |||
(in millions) | |||
Nine Months Ended June 30, | |||
2024 | 2023 | ||
Cash flows provided by (used in): | |||
Operating activities from continuing operations | $ 24.8 | $ 133.6 | |
Investing activities from continuing operations | (40.2) | 25.0 | |
Financing activities from continuing operations | 13.4 | 21.4 | |
Total cash used in discontinued operations | (23.3) | (117.0) | |
Effect of exchange rates on cash and cash equivalents | (0.3) | (9.3) | |
Net cash flows | (25.6) | 53.7 | |
Cash and cash equivalents: | |||
At beginning of period | 250.2 | 237.6 | |
At end of period | $ 224.6 | $ 291.3 |
Reconciliation of Non-GAAP Financial Measures | |||||||
(in millions, except per share data) | |||||||
Three Months Ended June 30, | Nine Months Ended June 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
(Loss) income from continuing operations | $ (246.9) | $ 44.0 | $ (218.8) | $ 94.9 | |||
Less: Net income attributable to noncontrolling interests | 2.0 | 1.7 | 6.5 | 4.8 | |||
(Loss) income from continuing operations attributable to Hillenbrand | (248.9) | 42.3 | (225.3) | 90.1 | |||
Impairment charges (1) | 265.0 | — | 265.0 | — | |||
Business acquisition, divestiture, and integration costs (2) | 24.9 | 10.6 | 39.6 | 28.5 | |||
Restructuring and restructuring-related charges (3) | 1.0 | 0.8 | 27.2 | 2.3 | |||
Inventory step-up charges (4) | — | — | 0.6 | 11.1 | |||
Intangible asset amortization (5) | 25.5 | 19.7 | 76.7 | 58.6 | |||
Pension settlement charges (6) | 26.9 | — | 35.2 | — | |||
Costs associated with debt financing activities (7) | 1.1 | — | 1.1 | — | |||
Other non-recurring costs related to a discrete commercial dispute | — | — | 6.1 | — | |||
Tax adjustments (8) | (0.1) | 0.6 | (0.2) | 2.2 | |||
Tax effect of adjustments (9) | (35.3) | (7.1) | (63.3) | (25.7) | |||
Adjusted net income from continuing operations attributable to Hillenbrand | $ 60.1 | $ 66.9 | $ 162.7 | $ 167.1 | |||
Diluted EPS from continuing operations attributable to Hillenbrand | $ (3.53) | $ 0.60 | $ (3.20) | $ 1.29 | |||
Impairment charges (1) | 3.76 | — | 3.76 | — | |||
Business acquisition, divestiture, and integration costs (2) | 0.35 | 0.15 | 0.56 | 0.41 | |||
Restructuring and restructuring-related charges (3) | 0.01 | 0.01 | 0.39 | 0.03 | |||
Inventory step-up charges (4) | — | — | 0.01 | 0.16 | |||
Intangible asset amortization (5) | 0.36 | 0.28 | 1.08 | 0.84 | |||
Pension settlement charges (6) | 0.38 | — | 0.50 | — | |||
Costs associated with debt financing activities (7) | 0.02 | — | 0.02 | — | |||
Other non-recurring costs related to a discrete commercial dispute | — | — | 0.09 | — | |||
Tax adjustments (8) | — | 0.01 | — | 0.03 | |||
Tax effect of adjustments (9) | (0.50) | (0.10) | (0.90) | (0.37) | |||
Adjusted Diluted EPS from continuing operations attributable to Hillenbrand | $ 0.85 | $ 0.95 | $ 2.31 | $ 2.39 |
________________________________ | |
(1) | Hillenbrand recorded impairment charges to goodwill and certain indefinite-lived intangible assets within the Molding Technology Solutions reportable operating segment during the three and nine months ended June 30, 2024. |
(2) | Business acquisition, divestiture, and integration costs during the three and nine months ended June 30, 2024, primarily included costs associated with the integration of recent acquisitions. Business acquisition, divestiture, and integration costs during the three and nine months ended June 30, 2023, primarily included professional fees related to acquisitions and costs associated with the integration of recent acquisitions. |
(3) | Restructuring and restructuring-related charges primarily included severance costs during the three and nine months ended June 30, 2024 and 2023. |
(4) | The amount during the nine months ended June 30, 2024, represents the non-cash charges related to the fair value adjustment of inventories acquired in connection with the acquisition of FPM. The amount during the nine months ended June 30, 2023, represents the non-cash charges related to the fair value adjustment of inventories acquired in connection with the acquisitions of Herbold, Linxis, and Peerless. |
(5) | Intangible assets relate to our acquisition activities and are amortized over their useful lives. The amortization of acquired intangible assets is reported separately in our Consolidated Statements of Operations as amortization expense. The amortization of acquired intangible assets does not impact the core performance of our business operations since this amortization does not directly relate to the sale of our products or services. |
(6) | The pension settlement charges during the three and nine months ended June 30, 2024 were due to lump-sum payments made from the Company's |
(7) | Costs associated with debt financing activities during 2024 primarily included the accelerated amortization of deferred financing costs related to the |
(8) | For the three and nine months ended June 30, 2024 and 2023, this primarily represents the net impact from certain non-recurring tax items, including items related to acquisitions and divestitures. |
(9) | Represents the tax effect of the adjustments previously identified above. |
Three Months Ended June 30, | Nine Months Ended June 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Adjusted EBITDA: | |||||||
Advanced Process Solutions | $ 109.2 | $ 93.6 | $ 306.0 | $ 238.1 | |||
Molding Technology Solutions | 34.6 | 50.8 | 100.3 | 141.4 | |||
Corporate | (12.8) | (18.3) | (38.5) | (43.5) | |||
Add: | |||||||
Income (loss) from discontinued operations (net of income tax expense (benefit)) | — | 1.0 | (0.3) | 461.4 | |||
Less: | |||||||
Interest expense, net | 32.2 | 15.8 | 92.8 | 55.9 | |||
Income tax (benefit) expense | (10.5) | 23.8 | 3.7 | 50.2 | |||
Depreciation and amortization | 38.7 | 31.1 | 118.8 | 93.1 | |||
Impairment charges | 265.0 | — | 265.0 | — | |||
Pension settlement charges | 26.9 | — | 35.2 | — | |||
Business acquisition, divestiture, and integration costs | 24.9 | 10.6 | 39.6 | 28.5 | |||
Inventory step-up charges | — | — | 0.6 | 11.1 | |||
Restructuring and restructuring-related charges | 0.7 | 0.8 | 24.8 | 2.3 | |||
Other non-recurring costs related to a discrete commercial dispute | — | — | 6.1 | — | |||
Consolidated net (loss) income | $ (246.9) | $ 45.0 | $ (219.1) | $ 556.3 |
Three Months Ended June 30, | Nine Months Ended June 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Consolidated net (loss) income | $ (246.9) | $ 45.0 | $ (219.1) | $ 556.3 | |||
Interest expense, net | 32.2 | 15.8 | 92.8 | 55.9 | |||
Income tax (benefit) expense | (10.5) | 23.8 | 3.7 | 50.2 | |||
Depreciation and amortization | 38.7 | 31.1 | 118.8 | 93.1 | |||
EBITDA | (186.5) | 115.7 | (3.8) | 755.5 | |||
(Income) loss from discontinued operations (net of income tax expense) | — | (1.0) | 0.3 | (461.4) | |||
Business acquisition, divestiture, and integration costs | 24.9 | 10.6 | 39.6 | 28.5 | |||
Inventory step-up charges | — | — | 0.6 | 11.1 | |||
Restructuring and restructuring-related charges | 0.7 | 0.8 | 24.8 | 2.3 | |||
Impairment charges | 265.0 | — | 265.0 | — | |||
Pension settlement charges | 26.9 | — | 35.2 | — | |||
Other non-recurring costs related to a discrete commercial dispute | — | — | 6.1 | — | |||
Adjusted EBITDA | 131.0 | 126.1 | 367.8 | 336.0 | |||
Less: Acquisitions adjusted EBITDA(1) | 23.8 | — | 70.2 | — | |||
Foreign currency impact | 1.4 | — | (0.9) | — | |||
Organic adjusted EBITDA | $ 108.6 | $ 126.1 | $ 296.7 | $ 336.0 | |||
Advanced Process Solutions adjusted EBITDA | $ 109.2 | $ 93.6 | $ 306.0 | $ 238.1 | |||
Less: Acquisitions adjusted EBITDA(1) | 23.8 | — | 70.2 | — | |||
Foreign currency impact | 1.0 | — | (1.6) | — | |||
Advanced Process Solutions organic adjusted EBITDA | $ 86.4 | $ 93.6 | $ 234.2 | $ 238.1 | |||
Molding Technology Solutions adjusted EBITDA | $ 34.6 | $ 50.8 | $ 100.3 | $ 141.4 | |||
Foreign currency impact | 0.4 | — | 0.7 | — | |||
Molding Technology Solutions organic adjusted EBITDA | $ 35.0 | $ 50.8 | $ 101.0 | $ 141.4 |
________________________________ | |
(1) | The impact of the acquisitions of Peerless (October and November) and FPM. |
Three Months Ended June 30, | Nine Months Ended June 30, | ||||||
Shares used in computing non-GAAP per share amounts: | 2024 | 2023 | 2024 | 2023 | |||
GAAP Weighted average shares outstanding (diluted) | 70.5 | 70.3 | 70.4 | 70.0 | |||
Non-GAAP dilutive shares excluded from GAAP EPS calculation (1) | 0.2 | — | 0.2 | — | |||
Pro forma weighted average shares outstanding (diluted) | 70.7 | 70.3 | 70.6 | 70.0 |
________________________________ | |
(1) | Due to the occurrence of a net loss on a GAAP basis for the three and nine months ended June 30, 2024, potentially dilutive |
Three Months Ended June 30, | Nine Months Ended June 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Advanced Process Solutions net revenue | $ 569.4 | $ 464.7 | $ 1,696.9 | $ 1,308.0 | |||
Less: Acquisitions(1) | 136.7 | — | 412.2 | — | |||
Foreign currency impact | 3.9 | — | (10.8) | — | |||
Advanced Process Solutions organic net revenue | 436.6 | 464.7 | 1,273.9 | 1,308.0 | |||
Molding Technology Solutions net revenue | 217.2 | 251.9 | 648.3 | 755.2 | |||
Foreign currency impact | 2.0 | — | 0.6 | — | |||
Molding Technology Solutions organic net revenue | 219.2 | 251.9 | 648.9 | 755.2 | |||
Consolidated organic net revenue | $ 655.8 | $ 716.6 | $ 1,922.8 | $ 2,063.2 |
________________________________ | |
(1) | The impact of the acquisitions of Peerless (October and November) and FPM. |
June 30, | June 30, | ||
2024 | 2023 | ||
Advanced Process Solutions backlog | $ 1,735.7 | $ 1,604.0 | |
Less: Acquisitions(1) | 288.6 | — | |
Foreign currency impact | 24.2 | — | |
Advanced Process Solutions organic backlog | 1,471.3 | 1,604.0 | |
Molding Technology Solutions backlog | 238.5 | 266.4 | |
Foreign currency impact | 1.8 | — | |
Molding Technology Solutions organic backlog | 240.3 | 266.4 | |
Consolidated organic backlog | $ 1,711.6 | $ 1,870.4 |
________________________________ | |
(1) | The impact of the FPM acquisition. |
June 30, | |
2024 | |
Current portion of long-term debt | $ 19.9 |
Long-term debt | 2,068.9 |
Total debt | 2,088.8 |
Less: Cash and cash equivalents | 223.8 |
Net debt | $ 1,865.0 |
Pro forma adjusted EBITDA for the trailing twelve months ended | $ 526.3 |
Ratio of net debt to pro forma adjusted EBITDA | 3.5 |
Forward-Looking Statements
Throughout this earnings release, we make a number of "forward-looking statements," that are within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the
Words that could indicate that we are making forward-looking statements include the following:
intend | believe | plan | expect | may | goal | would | project | position | future |
become | pursue | estimate | will | forecast | continue | could | anticipate | remain | likely |
target | encourage | promise | improve | progress | potential | should | impact | strategy |
This is not an exhaustive list, but is intended to give you an idea of how we try to 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 or events, and actual results or events 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: global market and economic conditions, including those related to the continued volatility in the financial markets; the risk of business disruptions associated with information technology, cyber-attacks, or catastrophic losses affecting infrastructure; increasing competition for highly skilled and talented workers, as well as labor shortages; closures or slowdowns and changes in labor costs and labor difficulties; uncertainty related to environmental regulation and industry standards, as well as physical risks of climate change; uncertainty related to environmental regulation including the Securities and Exchange Commission's ("SEC") final climate rules and litigation regarding its enforceability; increased costs, poor quality, or unavailability of raw materials or certain outsourced services and supply chain disruptions; economic and financial conditions, including volatility in interest and exchange rates, commodity and equity prices and the value of financial assets; uncertainty in
About Hillenbrand
Hillenbrand (NYSE: HI) is a global industrial company that provides highly-engineered, mission-critical processing equipment and solutions to customers in over 100 countries around the world. Our portfolio is composed of leading industrial brands that serve large, attractive end markets, including durable plastics, food, and recycling. Guided by our Purpose — Shape What Matters For Tomorrow™ — we pursue excellence, collaboration, and innovation to consistently shape solutions that best serve our associates, customers, communities, and other stakeholders. To learn more, visit: www.Hillenbrand.com.
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