Hillenbrand, Inc. (NYSE:HI) Q1 2015 Earnings Conference Call - Final Transcript

Feb 05, 2015 • 08:00 am ET


Hillenbrand, Inc. (NYSE:HI) Q1 2015 Earnings Conference Call - Final Transcript


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Good morning, everyone and welcome to Hillenbrand's Earnings Teleconference for the First Quarter of Fiscal 2015. A replay of this call will be available until midnight Eastern Time, Thursday, February 19, by dialing 1-855-859-2026 toll free in the United States and Canada or 1-404-537-3406 internationally, and using the conference ID number 60438544. This webcast will be archived on the company's website at www.hillenbrands.com through March 5, 2015. (Operator Instructions)

At this time, it's my pleasure to turn the conference over to Joe Raver, Hillenbrand President and Chief Executive Officer. Mr. Raver, please go ahead.

Joe Raver

Thank you, Lisa, and good morning, everyone. We appreciate you joining us this morning to discuss Hillenbrand's results for the first quarter of fiscal 2015 which ended December 31. I'm joined in the prepared remarks portion of our call today by our CFO, Kristina Cerniglia. During the Q&A portion of the call, we'll be joined by Thomas Kehl, President of Coperion; Kim Ryan, President of Batesville is traveling out of the country and will not be joining us on the call, but we do expect to back next quarter.

(Forward-Looking Cautionary Statements)

Also, during the course of this call, we'll be discussing certain non-GAAP operating performance measures. I encourage you to take a look at our 10-Q which can be found on our website for a deeper discussion of forward-looking statements, the risk factors that could impact our actual results and more information on our use of non-GAAP operating measures and their reconciliation to GAAP financial measures.

Let me begin by reminding you of Hillenbrand's strategy, it's a strategy we crafted at the very beginning of our journey as a public company and our objectives remain unchanged. We seek to leverage our strong financial foundation to deliver sustainable profit growth, revenue expansion, and robust free cash flow. Over the past several years, we've made strategic investments in a number of acquisitions as well as in organic growth initiatives to create value for shareholders.

We continually seek opportunities to make our businesses better by expanding globally, penetrating growing end markets, and improving margins through the application of our Hillenbrand business systems, which includes management practices such as strategy, lean and talent development. As a result, we've transformed Hillenbrand from the strong resilient North American funeral products business to a growing global diversified industrial company. We are excited about the potential we have to continue our growth and transformation become truly world class.

Now let me turn to the results for the first quarter. As we saw in the press release last night, consolidated revenue for the quarter increased 4% to approximately $402 million and adjusted EPS was $0.49, about 44% higher than the prior year. Top line growth was consistent with our expectations for the quarter, despite some headwinds from currency fluctuations. We continually look for opportunities to improve our businesses and I'm pleased with the progress we continue to make in reducing costs and capitalizing on synergies with our acquired companies.

We were able to expand gross