Hill-Rom Reports Preliminary Fiscal First Quarter Revenue

CHICAGO, Jan. 12, 2016 /PRNewswire/ -- Hill-Rom Holdings, Inc. (NYSE: HRC) today announced preliminary unaudited revenue for its fiscal first quarter of 2016. 

Hill-Rom expects to report revenue of approximately $661 million for the quarter ended December 31, 2015, an increase of approximately 42 percent, or approximately 47 percent on a constant currency basis, compared to last year's first quarter. Excluding Welch Allyn, revenue on a constant currency basis increased 3 percent, while reported revenue was approximately flat.

First Quarter Preliminary Revenue

• North America Acute Care.  North America Acute Care revenue grew 11 percent to approximately $249 million. Capital sales increased 10 percent year over year, while rental revenue grew 11 percent.
• Welch Allyn.  Welch Allyn revenue was approximately $198 million, which on a pro-forma basis represents approximately 7 percent constant currency growth year over year.
• Surgical/Respiratory Care.  Surgical and Respiratory Care revenue of approximately $121 million was flat on a constant currency basis year over year, or a decline of 5 percent on a reported basis.
• International.  International segment revenue of approximately $94 million declined about 9 percent on a constant currency basis year over year, or a decline of 17 percent on a reported basis.  

Other Highlights

• Impact of Tax Law Changes. The recently passed Consolidated Appropriations Act of 2015 included the permanent reinstatement of the R&D tax credit along with a two-year suspension of the Affordable Care Act medical device excise tax. Hill-Rom's previously announced 2016 earnings per share guidance included the medical device excise tax and excluded any R&D tax credit. The R&D tax credit reinstatement is expected to benefit Hill-Rom's fiscal 2016 earnings per share by approximately $0.03 in Q1 and $0.06 for the full year. The elimination of the medical device excise tax, which is effective January 1, 2016, could positively impact Hill-Rom's fiscal 2016 earnings per share by as much as $0.12.

Hill-Rom will release its final first quarter results and its financial outlook for Q2 and the full year on February 1, 2016, as previously announced. 

Discussion of Adjusted Financial Measures

Hill-Rom Holdings, Inc. routinely provides revenue measured on a constant currency basis because the Company's management believes that the presentation provides useful information to investors. This measure controls for currency fluctuations over the relevant time period. 

Management uses this measure internally for planning, forecasting and evaluating the performance of the business. Investors should consider non-GAAP adjusted measures in addition to, not as a substitute for, or as superior to, measures of financial performance prepared in accordance with GAAP.

Conference Call Webcast and Dial-in Information

As previously announced, the Company will host its first quarter earnings conference call and webcast Monday, February 1, 2016 at 8:00 a.m. ET.

Webcast:  To join the live webcast with audio on February 1, visit http://edge.media-server.com/m/p/ogipjy6m. The webcast slide deck will be posted to the Hill-Rom website prior to the webcast.

Conference Call Audio Only Dial-in information:  To join the live conference call, dial 877-304-8969 domestic callers / 631-291-4543 international callers. The following Confirmation Code is required for both: 11376288. Callers will need to provide their name, company affiliation and telephone number to the conference operator.

A recording of the webcast/call audio will be available for telephone replay through February 6, 2016.  To access the replay, dial 855-859-2056 domestic callers / 404-537-3406 international callers.  For the replay, callers will need to use Confirmation Code 11376288.  If you are unable to listen to the live webcast or the telephone replay, the webcast will be archived at http://ir.hill-rom.com/events.cfm.

About Hill-Rom Holdings, Inc.

Hill-Rom is a leading global medical technology company with approximately 10,000 employees worldwide.  We partner with health care providers in more than 100 countries by focusing on patient care solutions that improve clinical and economic outcomes in five core areas: Advancing Mobility, Wound Care and Prevention, Clinical Workflow, Surgical Safety and Efficiency, and Respiratory Health. Around the world, Hill-Rom's people, products, and programs work towards one mission: Enhancing outcomes for patients and their caregivers.

Disclosure Regarding Forward Looking Statements

Certain statements herein contain forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, regarding the Company's future plans, objectives, beliefs, expectations, representations and projections. It is important to note that forward-looking statements are not guarantees of future performance, and the Company's actual results could differ materially from those set forth in any forward-looking statements. For a more in depth discussion of factors that could cause actual results to differ from those contained in forward-looking statements, see the discussions under the heading "Risk Factors" in the Company's previously filed most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q. The Company assumes no obligation to update or revise any forward-looking statements.

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SOURCE Hill-Rom Holdings, Inc.