– Hillrom (NYSE: HRC) recently declared fiscal results for its fiscal 4th-quarter and full year finished September 30, 2k19. In addition, Hillrom offered its fiscal 2k20 guidance and long-range fiscal outlook through fiscal 2k22.
For the financial 4th-quarter, Hillrom stated worldwide revenue of $783.00M and GAAP earnings of $0.410 for each diluted share. These results reflect the revenue recognition accounting standard, ASC 606, which the company adopted on a modified retrospective basis starting in the fiscal 1st-quarter 2k19. The company’s unaudited 2k18 modified financial plans reflecting the adoption of ASC 606 are available as supplemental plans on the company’s website.
“Our strong 4th-quarter fiscal results mark the close of another successful year at Hillrom,” said John Groetelaars, Hillrom president and CEO. “We enter financial 2k20 with strong momentum and confidence in our ability to execute on our strategy, advance our category leadership, and deliver on our commitments to drive value for patients, caregivers and our shareholders.”
Financial 4th-Quarter 2k19 Financial Results
On a comparable basis under ASC 606, financial 4th-quarter adjusted earnings of $1.690 for each diluted share exceeded the company’s guidance of $1.640 to $1.660 for each diluted share.
Worldwide stated revenue of $783.00M in the fiscal 4th-quarter increased 3.0 percent, or 4.0 percent on a constant currency basis under ASC 606 in both the current and prior durations. Hillrom’s core revenue advanced 8.0 percent, surpassing the company’s guidance of about 5.0 percent growth. Core revenue apart from acquisitions advanced 6.0 percent. Core revenue excludes foreign currency, divestitures, and non-planned assets the company may exit, counting the Surgical Solutions international OEM business.
By reporting segment (under ASC 606):
- Patient Support Systems: Patient Support Systems revenue of $415.00M increased 10.00 percent on a stated basis, or 11.00 percent on a constant currency basis. Core revenue advanced 14.00 percent, driven by strong performance across the diversified portfolio of connected solutions and services, counting double-digit growth of care communication platforms and med-surg bed systems.
- Front Line Care: Front Line Care generated revenue of $257.00M, a decline of 2.0 percent on a stated basis, or a decline of 1.0 percent on a constant currency basis. A difficult comparison from last year’s U.S. launch of the Monarch® Airway Clearance System offset strong growth in other respiratory health products and certain diagnostic tools, counting thermometry and the vision portfolio.
- Surgical Solutions: Surgical Solutions generated revenue of $110.00M, a decline of 8.0 percent on a stated basis, or a decline of 6.0 percent on a constant currency basis reflecting the surgical consumables divestiture. Core revenue increased 11.00 percent, fueled by strong growth of patient positioning and operating room equipment, counting Integrated Table Motion for the da Vinci Xi® Surgical System.
Fiscal Full-Year 2k19 Financial Results
For fiscal 2k19, Hillrom stated GAAP earnings of $2.250 for each diluted share.
On a comparable basis under ASC 606, full-year adjusted earnings of $5.080 for each diluted advanced 9.0 percent over the prior-year duration. Worldwide stated revenue of $2.910B increased 3.0 percent, or 4.0 percent on a constant currency basis. Hillrom’s core revenue grew 7.0 percent for the year, and apart from acquisitions, core revenue grew 6.0 percent.
Fiscal 2k20 Financial Guidance
For fiscal 2k20, Hillrom anticipates revenue to incline 1.0 to 2.0 percent on both a stated and constant currency basis, and core revenue to incline 5.0 to 6.0 percent. Apart From the incremental benefit of acquisitions before the anniversary date, core revenue is expected to incline 4.0 to 5.0 percent. The company anticipates adjusted earnings of $5.460 to $5.560 for each diluted share, and about $430.00M in operating cash flow.
For the fiscal 1st-quarter 2k20, Hillrom anticipates revenue to be flat to the prior year on a stated and constant currency basis. Core revenue is expected to incline 5.0 to 6.0 percent. Apart From acquisitions, core revenue is expected to incline about 4.0 percent. The company anticipates adjusted earnings, apart from special items, of $1.070 to $1.090 for each diluted share.
Long-Range Financial Outlook Through Fiscal 2k22
Based on strong performance and execution of its previous long-range plan, Hillrom is also providing its long-range fiscal outlook through fiscal 2k22.
Hillrom anticipates stated revenue growth of about 4.0 percent on a compound annual basis from 2k19 through 2k22 at constant currency rates. The company anticipates core revenue growth of about 5.0 percent on a compound annual basis from 2k19 to 2k22. Core revenue growth excludes revenue of about $150.00M in 2k19 mainly related to the surgical consumables divestiture and the pending exit of the Surgical Solutions international OEM business in 2k20.