Hillenbrand Fourth-Quarter Revenue Increases 9% to $231 Million

BATESVILLE, Ind., Nov. 28, 2011 /PRNewswire/ — Hillenbrand, Inc. (NYSE: HI)

Quarterly Summary

Hillenbrand reported worldwide revenue of $231.2 million for the fourth quarter
of fiscal 2011, a 9% ($19.2 million) increase over the prior year. The company’s
fastest-growing business platform, Process Equipment Group, increased revenue
32% ($18.4 million) to $76.4 million, or 25% ($14.3 million) on a constant
currency basis. Excluding the impact of the August 31 acquisition of Rotex,
revenue grew 17%. The acquisition also contributed to a 26% increase in Process
Equipment Group’s order backlog compared to the third quarter. The Batesville
business platform reported fourth-quarter revenue of $154.8 million, slightly
above prior-year revenue of $154 million.

Increased commodity costs in the Batesville business, primarily fuel and steel,
along with inventory step-up charges related to the Rotex acquisition, led to a
consolidated gross profit margin of 39.2%, compared to 41.8% in the prior year.
Without the step-up charges, adjusted gross profit margin was 40.4% in the
fourth quarter of 2011.

Net income increased 17% over the prior year to $23.5 million, with EPS growing
19% to $0.38. In the same period, EBITDA increased 8% to $44.6 million. The
year-over-year increases were higher on an adjusted basis, with net income up
19% to $29.2 million, EPS up 20% to $0.48 and EBITDA up 11% to $52.5 million.
Cash flow from operations was $33 million higher than the prior year, largely
due to the timing of tax payments.

Annual Summary

Annual revenue for 2011 increased 18% ($134.2 million) over the prior year to
$883.4 million, 16% on a constant currency basis. Gross profit margin was 41.9%
compared to 41.8% in the prior year. Without the impact of inventory step-up
charges, adjusted gross profit margin was 42.2% in 2011 and 43.4% in the prior
year. Net income of $106.1 million ($1.71 per share) grew 15% compared to the
prior year, and adjusted net income of $113.8 million ($1.84 per share) was 2%
higher. At $197.5 million, EBITDA increased 19% ($31.7 million) over the prior
year, and 9% ($17.2 million) on an adjusted basis. Collection of the Forethought
Note in 2011 was a primary driver in the $71.3 million year-over-year increase
in cash flow from operations.

CEO Comments

“The company posted very solid fourth-quarter results, fueled by effective
execution of our growth strategy, which focuses on making the right investments
in our business platforms to drive profitability and shareholder value,” said
Kenneth A. Camp, Hillenbrand president and chief executive officer. “Batesville
continues to generate strong and consistent cash flow, while Process Equipment
Group has embarked on a global growth initiative that is opening up new
geographies for its brands, including newly acquired Rotex. I’m pleased with the
company’s accomplishments during the past year and look forward to building on
those successes in 2012.”

Guidance for Fiscal Year 2012

Hillenbrand expects 2012 global revenue to increase between 13% and 17%, driven
by double-digit organic top-line growth from Process Equipment Group and a full
year of revenue from Rotex. Batesville is anticipated to deliver low
single-digit top-line growth. Given current foreign exchange rates, management
expects foreign currency to be favorable in the early part of the year, then
largely offset in the latter part, resulting in a minimal total translation
impact when compared to 2011.

Diluted EPS for fiscal 2012 is projected to range from $1.75 to $1.85 on a GAAP
basis. This takes into account $5 million of intangible asset amortization for
Rotex and $12 million less interest and investment income. The Forethought Note,
collected in April 2011, yielded $6 million of interest income that will not
repeat in 2012. In addition, Hillenbrand recognized $6 million of gains from
limited partnership investments in 2011 that are not expected to recur. The
company expects to make adjustments for such items as business acquisition
costs, backlog step-up amortization and antitrust litigation expense, resulting
in a 2012 diluted adjusted EPS range of $1.82 to $1.92.

“Absent significant jolts to the world economy, we expect our strong growth in
2012 to drive us over the billion-dollar revenue mark,” said Camp. “As we
continue our transformation into a global diversified industrial enterprise,
it’s encouraging to see our strategy affirmed by the results we’re delivering to
our shareholders.”

Conference Call and Webcast

The company will host a conference call and simultaneous webcast Tuesday,
November 29, 2011, at 8 a.m. ET to discuss the results for the fourth quarter
and full fiscal year 2011, which ended September 30, 2011. The webcast will be
available at http://ir.hillenbrandinc.com and will be archived on the company’s
website through November 29, 2012.

To access the conference call, listeners in the United States and Canada may
dial 1-800-378-6592, and international callers may dial 1-719-325-2324. A replay
of the call will be available until midnight ET, Tuesday, December 13, 2011, by
dialing 1-888-203-1112 in the United States and Canada or 1-719-457-0820
internationally, and using the passcode 8822146.

Consolidated Statements of Income (Unaudited)
(in millions, except per share data)

Three Months Ended September 30, ————- 2011 —- Net revenue $231.2 Cost of goods
sold 140.5 Gross profit 90.7 Operating
expenses 56.9 —- Operating profit 33.8 —- Interest expense (2.7) Investment income
and other 0.9 — Income before
income taxes 32.0 Income tax
expense 8.5 Net income $23.5 ===== Fiscal Year Ended
September 30,
————-
2010 2011 2010
—- —- —-
$212.0 $883.4 $749.2
123.3 513.5 435.9
—– —– —– —–
88.7 369.9 313.3
53.9 211.3 175.4
—- —– —–
34.8 158.6 137.9
—- —– —–
(2.7) (11.0) (4.2)
0.8 10.2 12.7
— —- —-
32.9 157.8 146.4
12.8 51.7 54.1
$20.1 $106.1 $92.3
===== ====== =====

EPS -basic and
diluted $0.38 $0.32 $1.71 $1.49
Weighted average
shares
outstanding -
basic and 62.1 62.0 62.0 61.9
diluted
Cash dividends
per share $0.1900 $0.1875 $0.7600 $0.7500

Condensed Consolidated Statements of Cash Flows (Unaudited)
(in millions)

Fiscal Year Ended
September 30,
————-
2011 2010
—- —-
Net cash
provided
by
operating
activities $189.5 $118.2
Net cash
used in
investing
activities (154.5) (348.7)
Net cash
provided
by (used
in)
financing
activities (22.0) 289.8
Effect of
exchange
rate
changes
on cash
and cash
equivalents 4.1 3.9
— —

Net cash
flows 17.1 63.2

Cash and
cash
equivalents:
At
beginning
of
period 98.4 35.2
At end of
period $115.5 $98.4
====== =====

Hillenbrand’s financial statements on Form 10-K are expected to be filed jointly
with this release and are available on the Company’s website
(www.HillenbrandInc.com).

Reconciliation of Non-GAAP Measures (Unaudited)
(in millions, except per share data)

Three Months Ended Fiscal Year Ended
September 30, September 30,
————- ————-
2011 2010 2011 2010
—- —- —- —-
GAAP net income $23.5 $20.1 $106.1 $92.3
Antitrust litigation – 3.1 1.3 5.0
Inventory step-up 2.8 – 2.8 11.6
Backlog step-up 0.8 – 0.8 1.7
Business acquisition 4.6 0.5 6.3 10.5
Sales tax adjustment (0.1) (0.6) (0.8) (4.7)
Restructuring 0.6 3.0 1.3 3.0
Income tax on adjustments (3.0) (1.5) (4.0) (7.8)
—- —- —- —-
Net income – adjusted $29.2 $24.6 $113.8 $111.6
===== ===== ====== ======

EPS – adjusted $0.48 $0.40 $1.84 $1.80

Three Months Ended Fiscal Year Ended
September 30, September 30,
————- ————-
2011 2010 2011 2010
—- —- —- —-
GAAP net income $23.5 $20.1 $106.1 $92.3
Interest income (0.2) (3.1) (7.4) (13.0)
Interest expense 2.7 2.7 11.0 4.2
Income tax expense 8.5 12.8 51.7 54.1
Depreciation and amortization 10.1 8.7 36.1 28.2
—- — —- —-
EBITDA 44.6 41.2 197.5 165.8

Antitrust litigation – 3.1 1.3 5.0
Inventory step-up 2.8 – 2.8 11.6
Business acquisition 4.6 0.5 6.3 10.5
Sales tax adjustment (0.1) (0.6) (0.8) (4.7)
Restructuring 0.6 3.0 1.3 3.0
— — — —
EBITDA – adjusted $52.5 $47.2 $208.4 $191.2
—– —– —— ——

GAAP gross profit $90.7 39.2% $88.7 41.8% $369.9 41.9% $313.3 41.8%
Inventory step-up 2.8 – 2.8 11.6
— — — —-
Gross profit – adjusted $93.5 40.4% $88.7 41.8% $372.7 42.2% $324.9 43.4%
===== ===== ====== ======

While Hillenbrand, Inc. reports financial results in accordance with accounting
principles generally accepted in the United States (GAAP), this press release
includes non-GAAP measures. These non-GAAP measures are not in accordance with,
nor are they a substitute for, GAAP measures. Hillenbrand uses the non-GAAP
measures to evaluate and manage its operations and provides the information to
investors so they can see the results “through the eyes” of management.
Hillenbrand further believes that providing this information better enables
investors to understand the ongoing operating performance of the company.
Investors should consider non-GAAP measures in addition to, not as a substitute
for, or as superior to, measures of financial performance prepared in accordance
with GAAP.

Disclosure Regarding Forward-Looking Statements

Throughout this release, we make a number of forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995. As the
words imply, forward-looking statements are statements about the future, as
contrasted with historical information. Our forward-looking statements are based
on assumptions and current expectations of future events that we believe are
reasonable, but by their very nature they are subject to a wide range of risks.
If our assumptions prove inaccurate or unknown risks and uncertainties
materialize, actual results could vary materially from Hillenbrand’s
expectations and projections.

Words that could indicate we’re making forward-looking statements include the
following:

intend believe plan expect may goal would
become pursue estimate will forecast continue could
targeted encourage promise improve progress potential should

This isn’t an exhaustive list, but is simply 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’s the key point: Forward-looking statements are not guarantees of future
performance, and our actual results 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: the outcome of any legal proceedings that may be instituted
against Hillenbrand, Rotex or others following the Rotex acquisition; risks that
the Rotex acquisition disrupts current operations or poses potential
difficulties in employee retention or otherwise affects financial or operating
results; the ability to recognize the benefits of the acquisition, including
potential synergies and cost savings or the failure of the acquired company to
achieve its plans and objectives generally; global market and economic
conditions, including those related to the credit markets; volatility of our
investment portfolio; adverse foreign currency fluctuations; ongoing involvement
in claims, lawsuits and governmental proceedings related to operations; labor
disruptions; the dependence of our business units on relationships with several
large national providers; increased costs or unavailability of raw materials;
continued fluctuations in mortality rates and increased cremations; competition
from nontraditional sources in the funeral services business; our ongoing
antitrust litigation; cyclical demand for industrial capital goods; and certain
tax-related matters. For a more in-depth discussion of these and other factors
that could cause actual results to differ from those contained in
forward-looking statements, see the discussions under the heading “Risk Factors”
in item 1A of Hillenbrand’s Annual Report on Form 10-K for the year ended
September 30, 2011, expected to be filed with the Securities and Exchange
Commission (SEC) November 28, 2011. The company assumes no obligation to update
or revise any forward-looking information.

About Hillenbrand, Inc.

Hillenbrand (www.HillenbrandInc.com) is a global diversified industrial
enterprise that manufactures and sells premium business-to-business products and
services for a wide variety of industries. We seek profitable growth and
meaningful dividends for our shareholders by leveraging our leading brands,
robust cash generation capabilities and strong core competencies.HI-INC-F

SOURCE Hillenbrand, Inc.