Press Release: Hillrom's Fiscal First Quarter Financial Results Exceed Guidance
Hillrom's Fiscal First Quarter Financial Results Exceed Guidance
Accelerated Recovery and Expanded Demand for Critical Care Products Contribute to Strong Performance
Company Raises Fiscal 2021 Guidance
CHICAGO, Feb. 5, 2021
CHICAGO, Feb. 5, 2021 /PRNewswire/ -- Hillrom (NYSE: HRC) today announced financial results for its fiscal first quarter ended December 31, 2020, and raised its fiscal 2021 guidance.
For the fiscal first quarter, Hillrom reported GAAP earnings of $0.88 per diluted share compared to $0.59 per diluted share in the prior-year period. On an adjusted basis, excluding special items, earnings of $1.53 per diluted share rose 35 percent from $1.13 per diluted share in the prior-year period, and exceeded the company's guidance range of $1.05 to $1.10 per diluted share. First quarter financial results reflect strong revenue growth, margin expansion, disciplined cost management and strategic investments to drive future growth. Adjustments to reported earnings are detailed in the reconciliation schedules provided.
"Hillrom's strong start to fiscal 2021 underscores our significant transformation and the diversity of our product portfolio," said John Groetelaars, Hillrom president and CEO. "We continue to support our global customers, deliver critical care products and solutions in response to the ongoing pandemic, and remain committed to our vision of Advancing Connected Care(TM)."
Fiscal First Quarter 2021 Financial Results
For the fiscal first quarter, worldwide revenue of $741 million increased 8 percent on a reported basis, or 6.5 percent on a constant currency basis. All three business segments generated better-than-expected performance driven by accelerated recovery and expanded demand for critical care products, including one-time COVID revenue of approximately $40 million and earnings of $0.20 per diluted share.
By Reporting Segment:
Hillrom recently achieved numerous key milestones aimed at realizing the company's vision of Advancing Connected Care, transforming the portfolio through innovation and acquisitions, and delivering sustainable value to shareholders. Highlights include:
2021 Financial Outlook
"With improved performance, building momentum and accelerated recovery across the Hillrom portfolio, we are raising our full-year revenue and earnings guidance. Our revised forecast includes continued recovery in our underlying business and COVID-related revenue," continued Mr. Groetelaars. "We remain committed to driving sustainable and profitable growth aligned with our long-term aspirations, achieving our strategic objectives, and unlocking significant value for patients, caregivers and shareholders as we deliver on our mission."
For the full year, Hillrom now expects revenue to increase 0 percent to 2 percent on a reported basis. In addition, the company now expects adjusted earnings, excluding special items, of $5.70 to $5.90 per diluted share and operating cash flow of $400 to $430 million. This compares to the company's previous guidance range of adjusted earnings of $5.25 to $5.45 per diluted share and operating cash flow of $370 to $400 million.
For the fiscal second quarter 2021, Hillrom expects revenue to increase 0 percent to 2 percent on a reported basis, and adjusted earnings, excluding special items, of $1.40 to $1.45 per diluted share.
The ongoing scope and evolution of the pandemic remains uncertain and could present pandemic-related risks or opportunities that may require updates to the fiscal 2021 guidance ranges provided today.
Discussion of Adjusted Financial Measures
In addition to the results reported in accordance with accounting principles generally accepted in the United States (GAAP), Hillrom routinely provides gross margin, operating margin, income before taxes, income tax expense, and earnings per diluted share results on an adjusted basis because the company's management believes these measures contribute to an understanding of our financial performance, provide additional analytical tools to understand our results from core operations, and reveal underlying operating trends. These measures exclude strategic developments, acquisition and integration costs and related fair value adjustments, gains and losses associated with disposals of businesses or significant product lines, regulatory costs related to updating existing product registrations to comply with the European Medical Device Regulations, special charges, the transitional impacts of U.S. tax reform legislation, changes in tax accounting methods, other tax law changes and expenses associated with these tax items, the impacts of significant litigation matters, certain impacts of the COVID-19 pandemic, and other unusual events. The company also excludes expenses associated with the amortization of purchased intangible assets. These adjustments are made to allow investors to evaluate and understand operating trends excluding their impact on operating income and earnings per diluted share.
Management uses these measures internally for planning, forecasting and evaluating the performance of the business. Investors should consider these non-GAAP measures in addition to, not as a substitute for, or as superior to, measures of financial performance prepared in accordance with GAAP. Reconciliations of GAAP measures to adjusted measures appear in the financial tables of this release.
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February 05, 2021 06:59 ET (11:59 GMT)