Hillenbrand Inc · Q1 2021 earnings

Briefing

Hillenbrand reported strong first-quarter results, driven by COVID-19 related demand and the Milacron acquisition. The company executed its portfolio simplification strategy with the sale of Red Valve and an agreement to sell ABEL.

Hillenbrand's first-quarter revenue increased by 22% year-over-year to $693 million, driven by strong COVID-19 related demand at Batesville and the inclusion of 50 additional days of Milacron revenue. GAAP EPS was $1.01, an increase of $1.06, and adjusted EPS was $0.96, a 28% increase. The company's record backlog increased 32% year-over-year to $1.36 billion.

• Revenue of $693 million was 22% higher year over year, driven by strong COVID-19 related demand at Batesville and 50 additional days of Milacron revenue.
• GAAP EPS of $1.01 increased by $1.06 primarily as a result of lower business acquisition and integration costs and a gain on the sale of Red Valve; adjusted EPS of $0.96 increased 28% primarily driven by strength in Batesville and Molding Technology Solutions
• Record backlog increased 32% year over year to $1.36 billion led by continued demand for large plastics projects in Advanced Process Solutions (APS) and increased injection molding demand in Molding Technology Solutions (MTS).
• Cash flow from operations of $66 million increased $48 million compared to prior year; net leverage decreased to 2.2x, down 0.5x sequentially.

Headline financials

Revenue & EPS history

Hillenbrand is providing guidance for the fiscal second quarter 2021. Total quarterly revenue expected to increase 12% to 16% year over year on a pro forma basis. Adjusted EPS of 0.85 - $0.95