|
Indiana
|
|
26-1342272
|
|
(State of incorporation)
|
|
(I.R.S. Employer Identification No.)
|
|
|
|
|
|
One Batesville Boulevard
|
|
|
|
Batesville
|
IN
|
|
47006
|
(Address of principal executive offices)
|
|
(Zip Code)
|
Title of each class
|
|
Trading Symbol(s)
|
|
Name of each exchange on which registered
|
Common Stock, without par value
|
|
HI
|
|
New York Stock Exchange
|
Large accelerated filer
|
|
☒
|
|
Accelerated filer
|
|
☐
|
Emerging growth company
|
☐
|
Non-accelerated filer
|
|
☐
|
|
Smaller reporting company
|
|
☐
|
|
|
|
|
|
Page
|
|
|
|
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30, |
|
Nine Months Ended
June 30, |
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net revenue
|
$
|
446.6
|
|
|
$
|
446.0
|
|
|
$
|
1,321.5
|
|
|
$
|
1,295.4
|
|
Cost of goods sold
|
298.2
|
|
|
282.5
|
|
|
865.2
|
|
|
817.1
|
|
||||
Gross profit
|
148.4
|
|
|
163.5
|
|
|
456.3
|
|
|
478.3
|
|
||||
Operating expenses
|
90.8
|
|
|
98.3
|
|
|
275.2
|
|
|
285.7
|
|
||||
Amortization expense
|
8.6
|
|
|
7.6
|
|
|
25.0
|
|
|
22.7
|
|
||||
Impairment charge
|
—
|
|
|
—
|
|
|
—
|
|
|
63.4
|
|
||||
Interest expense
|
5.2
|
|
|
5.5
|
|
|
16.1
|
|
|
17.8
|
|
||||
Other (expense) income, net
|
(0.5
|
)
|
|
(0.7
|
)
|
|
0.1
|
|
|
(2.2
|
)
|
||||
Income before income taxes
|
43.3
|
|
|
51.4
|
|
|
140.1
|
|
|
86.5
|
|
||||
Income tax expense
|
11.6
|
|
|
15.2
|
|
|
39.9
|
|
|
52.5
|
|
||||
Consolidated net income
|
31.7
|
|
|
36.2
|
|
|
100.2
|
|
|
34.0
|
|
||||
Less: Net income attributable to noncontrolling interests
|
1.3
|
|
|
0.3
|
|
|
3.5
|
|
|
1.9
|
|
||||
Net income (1)
|
$
|
30.4
|
|
|
$
|
35.9
|
|
|
$
|
96.7
|
|
|
$
|
32.1
|
|
|
|
|
|
|
|
|
|
||||||||
Net income (1) — per share of common stock:
|
|
|
|
|
|
|
|
||||||||
Basic earnings per share
|
$
|
0.48
|
|
|
$
|
0.57
|
|
|
$
|
1.54
|
|
|
$
|
0.51
|
|
Diluted earnings per share
|
$
|
0.48
|
|
|
$
|
0.56
|
|
|
$
|
1.52
|
|
|
$
|
0.50
|
|
Weighted average shares outstanding (basic)
|
63.0
|
|
|
62.8
|
|
|
62.9
|
|
|
63.2
|
|
||||
Weighted average shares outstanding (diluted)
|
63.4
|
|
|
63.5
|
|
|
63.4
|
|
|
63.9
|
|
|
Three Months Ended
June 30, |
|
Nine Months Ended
June 30, |
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Consolidated net income
|
$
|
31.7
|
|
|
$
|
36.2
|
|
|
$
|
100.2
|
|
|
$
|
34.0
|
|
Changes in other comprehensive income (loss), net of tax
|
|
|
|
|
|
|
|
||||||||
Currency translation adjustment
|
6.1
|
|
|
(26.1
|
)
|
|
(3.4
|
)
|
|
(5.1
|
)
|
||||
Pension and postretirement (net of quarter-to-date tax of $0.5 and $0.2 and year-to-date tax of $0.7 and $0.9)
|
1.5
|
|
|
0.7
|
|
|
2.0
|
|
|
2.1
|
|
||||
Change in net unrealized gain (loss) on derivative instruments (net of quarter-to-date tax of $1.2 and $0.0 and year-to-date tax of $3.8 and $0.1)
|
(4.3
|
)
|
|
(0.1
|
)
|
|
(12.7
|
)
|
|
0.2
|
|
||||
Total changes in other comprehensive income (loss), net of tax
|
3.3
|
|
|
(25.5
|
)
|
|
(14.1
|
)
|
|
(2.8
|
)
|
||||
Consolidated comprehensive income
|
35.0
|
|
|
10.7
|
|
|
86.1
|
|
|
31.2
|
|
||||
Less: Comprehensive income attributable to noncontrolling interests
|
1.3
|
|
|
—
|
|
|
3.7
|
|
|
1.6
|
|
||||
Comprehensive income (2)
|
$
|
33.7
|
|
|
$
|
10.7
|
|
|
$
|
82.4
|
|
|
$
|
29.6
|
|
|
June 30,
2019 |
|
September 30,
2018 |
||||
ASSETS
|
|
|
|
|
|
||
Current Assets
|
|
|
|
|
|
||
Cash and cash equivalents
|
$
|
64.4
|
|
|
$
|
56.0
|
|
Trade receivables, net
|
198.8
|
|
|
218.5
|
|
||
Receivables from long-term manufacturing contracts
|
158.6
|
|
|
120.3
|
|
||
Inventories
|
186.7
|
|
|
172.5
|
|
||
Prepaid expenses
|
29.0
|
|
|
25.2
|
|
||
Other current assets
|
20.7
|
|
|
18.1
|
|
||
Total current assets
|
658.2
|
|
|
610.6
|
|
||
Property, plant, and equipment, net
|
136.6
|
|
|
142.0
|
|
||
Intangible assets, net
|
471.1
|
|
|
487.3
|
|
||
Goodwill
|
586.8
|
|
|
581.9
|
|
||
Other assets
|
37.9
|
|
|
42.8
|
|
||
Total Assets
|
$
|
1,890.6
|
|
|
$
|
1,864.6
|
|
|
|
|
|
||||
LIABILITIES
|
|
|
|
|
|
||
Current Liabilities
|
|
|
|
|
|
||
Trade accounts payable
|
$
|
224.5
|
|
|
$
|
196.8
|
|
Liabilities from long-term manufacturing contracts and advances
|
109.2
|
|
|
125.9
|
|
||
Accrued compensation
|
68.9
|
|
|
71.9
|
|
||
Other current liabilities
|
123.7
|
|
|
137.1
|
|
||
Total current liabilities
|
526.3
|
|
|
531.7
|
|
||
Long-term debt
|
323.2
|
|
|
344.6
|
|
||
Accrued pension and postretirement healthcare
|
114.2
|
|
|
120.5
|
|
||
Deferred income taxes
|
70.8
|
|
|
76.4
|
|
||
Other long-term liabilities
|
60.3
|
|
|
47.3
|
|
||
Total Liabilities
|
1,094.8
|
|
|
1,120.5
|
|
||
|
|
|
|
||||
Commitments and contingencies (Note 14)
|
|
|
|
|
|
||
|
|
|
|
||||
SHAREHOLDERS’ EQUITY
|
|
|
|
|
|
||
Common stock, no par value (63.9 and 63.9 shares issued, 62.6 and 62.3 shares outstanding)
|
—
|
|
|
—
|
|
||
Additional paid-in capital
|
345.3
|
|
|
351.4
|
|
||
Retained earnings
|
588.1
|
|
|
531.0
|
|
||
Treasury stock (1.3 and 1.6 shares)
|
(53.7
|
)
|
|
(67.1
|
)
|
||
Accumulated other comprehensive loss
|
(98.5
|
)
|
|
(84.2
|
)
|
||
Hillenbrand Shareholders’ Equity
|
781.2
|
|
|
731.1
|
|
||
Noncontrolling interests
|
14.6
|
|
|
13.0
|
|
||
Total Shareholders’ Equity
|
795.8
|
|
|
744.1
|
|
||
|
|
|
|
||||
Total Liabilities and Equity
|
$
|
1,890.6
|
|
|
$
|
1,864.6
|
|
|
Nine Months Ended
June 30, |
||||||
|
2019
|
|
2018
|
||||
Operating Activities
|
|
|
|
|
|
||
Consolidated net income
|
$
|
100.2
|
|
|
$
|
34.0
|
|
Adjustments to reconcile net income to cash provided by operating activities:
|
|
|
|
|
|
||
Depreciation and amortization
|
44.3
|
|
|
42.0
|
|
||
Impairment charge
|
—
|
|
|
63.4
|
|
||
Deferred income taxes
|
0.2
|
|
|
(4.8
|
)
|
||
Share-based compensation
|
8.7
|
|
|
8.8
|
|
||
Trade accounts receivable and receivables from long-term manufacturing contracts
|
(15.5
|
)
|
|
(43.4
|
)
|
||
Inventories
|
(15.0
|
)
|
|
(32.4
|
)
|
||
Prepaid expenses and other current assets
|
(6.0
|
)
|
|
(2.5
|
)
|
||
Trade accounts payable
|
28.3
|
|
|
17.1
|
|
||
Liabilities from long-term manufacturing contracts and advances,
|
|
|
|
||||
accrued compensation, and other current liabilities
|
(29.8
|
)
|
|
46.4
|
|
||
Income taxes payable
|
(5.3
|
)
|
|
28.9
|
|
||
Defined benefit plan and postretirement funding
|
(6.8
|
)
|
|
(8.2
|
)
|
||
Defined benefit plan and postretirement expense
|
2.6
|
|
|
3.4
|
|
||
Other, net
|
3.7
|
|
|
3.6
|
|
||
Net cash provided by operating activities
|
109.6
|
|
|
156.3
|
|
||
|
|
|
|
||||
Investing Activities
|
|
|
|
|
|
||
Capital expenditures
|
(12.6
|
)
|
|
(16.3
|
)
|
||
Acquisition of business, net of cash acquired
|
(25.9
|
)
|
|
—
|
|
||
Other, net
|
0.1
|
|
|
0.4
|
|
||
Net cash used in investing activities
|
(38.4
|
)
|
|
(15.9
|
)
|
||
|
|
|
|
||||
Financing Activities
|
|
|
|
|
|
||
Repayments on term loan
|
—
|
|
|
(148.5
|
)
|
||
Proceeds from revolving credit facilities, net of financing costs
|
449.7
|
|
|
946.5
|
|
||
Repayments on revolving credit facilities
|
(470.1
|
)
|
|
(837.2
|
)
|
||
Payments of dividends on common stock
|
(39.4
|
)
|
|
(39.1
|
)
|
||
Repurchases of common stock
|
—
|
|
|
(60.6
|
)
|
||
Proceeds from stock option exercises and other
|
2.4
|
|
|
10.3
|
|
||
Payments for employee taxes on net settlement equity awards
|
(4.2
|
)
|
|
(4.1
|
)
|
||
Other, net
|
(0.9
|
)
|
|
(1.8
|
)
|
||
Net cash used in financing activities
|
(62.5
|
)
|
|
(134.5
|
)
|
||
|
|
|
|
||||
Effect of exchange rates on cash and cash equivalents
|
(0.2
|
)
|
|
(1.0
|
)
|
||
|
|
|
|
||||
Net cash flows
|
8.5
|
|
|
4.9
|
|
||
|
|
|
|
||||
Cash, cash equivalents, and restricted cash:
|
|
|
|
|
|
||
At beginning of period
|
56.5
|
|
|
66.7
|
|
||
At end of period
|
$
|
65.0
|
|
|
$
|
71.6
|
|
|
June 30, 2019
|
|
June 30, 2018
|
||||
Cash and cash equivalents
|
64.4
|
|
|
71.1
|
|
||
Short-term restricted cash included in other current assets
|
0.6
|
|
|
0.5
|
|
||
Total cash, cash equivalents, and restricted cash shown in the Consolidated Statements of Cash Flows
|
$
|
65.0
|
|
|
$
|
71.6
|
|
|
Three Months Ended June 30, 2019
|
||||||||||||||||||||||||||||
|
Shareholders of Hillenbrand, Inc.
|
||||||||||||||||||||||||||||
|
Common Stock
|
|
Additional
Paid-in
Capital
|
|
Retained
Earnings
|
|
Treasury Stock
|
|
Accumulated
Other
Comprehensive
Loss
|
|
Noncontrolling
Interests
|
|
Total
|
||||||||||||||||
|
Shares
|
|
|
|
Shares
|
|
Amount
|
|
|
|
|||||||||||||||||||
Balance at March 31, 2019
|
63.9
|
|
|
$
|
343.1
|
|
|
$
|
571.1
|
|
|
1.3
|
|
|
$
|
(55.6
|
)
|
|
$
|
(101.8
|
)
|
|
$
|
13.3
|
|
|
$
|
770.1
|
|
Total other comprehensive income (loss), net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3.3
|
|
|
—
|
|
|
3.3
|
|
||||||
Net income
|
—
|
|
|
—
|
|
|
30.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.3
|
|
|
31.7
|
|
||||||
Issuance/retirement of stock for stock awards/options
|
—
|
|
|
(0.9
|
)
|
|
—
|
|
|
—
|
|
|
1.9
|
|
|
—
|
|
|
—
|
|
|
1.0
|
|
||||||
Share-based compensation
|
—
|
|
|
2.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2.9
|
|
||||||
Dividends ($0.2100 per share)
|
—
|
|
|
0.2
|
|
|
(13.4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(13.2
|
)
|
||||||
Balance at June 30, 2019
|
63.9
|
|
|
$
|
345.3
|
|
|
$
|
588.1
|
|
|
1.3
|
|
|
$
|
(53.7
|
)
|
|
$
|
(98.5
|
)
|
|
$
|
14.6
|
|
|
$
|
795.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Nine Months Ended June 30, 2019
|
||||||||||||||||||||||||||||
|
Shareholders of Hillenbrand, Inc.
|
||||||||||||||||||||||||||||
|
Common Stock
|
|
Additional
Paid-in
Capital
|
|
Retained
Earnings
|
|
Treasury Stock
|
|
Accumulated
Other
Comprehensive
Loss
|
|
Noncontrolling
Interests
|
|
Total
|
||||||||||||||||
|
Shares
|
|
|
|
Shares
|
|
Amount
|
|
|
|
|||||||||||||||||||
Balance at September 30, 2018
|
63.9
|
|
|
$
|
351.4
|
|
|
$
|
531.0
|
|
|
1.6
|
|
|
$
|
(67.1
|
)
|
|
$
|
(84.2
|
)
|
|
$
|
13.0
|
|
|
$
|
744.1
|
|
Total other comprehensive income (loss), net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(14.3
|
)
|
|
0.2
|
|
|
(14.1
|
)
|
||||||
Net income
|
—
|
|
|
—
|
|
|
96.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3.5
|
|
|
100.2
|
|
||||||
Issuance/retirement of stock for stock awards/options
|
—
|
|
|
(15.2
|
)
|
|
—
|
|
|
(0.3
|
)
|
|
13.4
|
|
|
—
|
|
|
—
|
|
|
(1.8
|
)
|
||||||
Share-based compensation
|
—
|
|
|
8.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8.7
|
|
||||||
Dividends ($0.6300 per share)
|
—
|
|
|
0.4
|
|
|
(39.8
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2.1
|
)
|
|
(41.5
|
)
|
||||||
Other
|
—
|
|
|
—
|
|
|
0.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.2
|
|
||||||
Balance at June 30, 2019
|
63.9
|
|
|
$
|
345.3
|
|
|
$
|
588.1
|
|
|
1.3
|
|
|
$
|
(53.7
|
)
|
|
$
|
(98.5
|
)
|
|
$
|
14.6
|
|
|
$
|
795.8
|
|
|
Three Months Ended June 30, 2018
|
||||||||||||||||||||||||||||
|
Shareholders of Hillenbrand, Inc.
|
||||||||||||||||||||||||||||
|
Common Stock
|
|
Additional
Paid-in
Capital
|
|
Retained
Earnings
|
|
Treasury Stock
|
|
Accumulated
Other
Comprehensive
Loss
|
|
Noncontrolling
Interests
|
|
Total
|
||||||||||||||||
|
Shares
|
|
|
|
Shares
|
|
Amount
|
|
|
|
|||||||||||||||||||
Balance at March 31, 2018
|
63.9
|
|
|
$
|
346.4
|
|
|
$
|
476.9
|
|
|
1.2
|
|
|
$
|
(48.0
|
)
|
|
$
|
(58.5
|
)
|
|
$
|
15.2
|
|
|
$
|
732.0
|
|
Total other comprehensive income (loss), net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(25.2
|
)
|
|
(0.3
|
)
|
|
(25.5
|
)
|
||||||
Net income
|
—
|
|
|
—
|
|
|
35.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.3
|
|
|
36.2
|
|
||||||
Issuance/retirement of stock for stock awards/options
|
—
|
|
|
(0.5
|
)
|
|
—
|
|
|
(0.1
|
)
|
|
1.5
|
|
|
—
|
|
|
—
|
|
|
1.0
|
|
||||||
Share-based compensation
|
—
|
|
|
2.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2.6
|
|
||||||
Purchases of common stock
|
—
|
|
|
—
|
|
|
—
|
|
|
0.5
|
|
|
(21.7
|
)
|
|
—
|
|
|
—
|
|
|
(21.7
|
)
|
||||||
Dividends ($0.2075 per share)
|
—
|
|
|
—
|
|
|
(13.1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(13.1
|
)
|
||||||
Balance at June 30, 2018
|
63.9
|
|
|
$
|
348.5
|
|
|
$
|
499.7
|
|
|
1.6
|
|
|
$
|
(68.2
|
)
|
|
$
|
(83.7
|
)
|
|
$
|
15.2
|
|
|
$
|
711.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Nine Months Ended June 30, 2018
|
||||||||||||||||||||||||||||
|
Shareholders of Hillenbrand, Inc.
|
||||||||||||||||||||||||||||
|
Common Stock
|
|
Additional
Paid-in
Capital
|
|
Retained
Earnings
|
|
Treasury Stock
|
|
Accumulated
Other
Comprehensive
Loss
|
|
Noncontrolling
Interests
|
|
Total
|
||||||||||||||||
|
Shares
|
|
|
|
Shares
|
|
Amount
|
|
|
|
|||||||||||||||||||
Balance at September 30, 2017
|
63.8
|
|
|
$
|
349.9
|
|
|
$
|
507.1
|
|
|
0.7
|
|
|
$
|
(24.4
|
)
|
|
$
|
(81.2
|
)
|
|
$
|
14.5
|
|
|
$
|
765.9
|
|
Total other comprehensive income (loss), net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2.5
|
)
|
|
(0.3
|
)
|
|
(2.8
|
)
|
||||||
Net income
|
—
|
|
|
—
|
|
|
32.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.9
|
|
|
34.0
|
|
||||||
Issuance/retirement of stock for stock awards/options
|
0.1
|
|
|
(10.6
|
)
|
|
—
|
|
|
(0.5
|
)
|
|
16.8
|
|
|
—
|
|
|
—
|
|
|
6.2
|
|
||||||
Share-based compensation
|
—
|
|
|
8.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8.8
|
|
||||||
Purchases of common stock
|
—
|
|
|
—
|
|
|
—
|
|
|
1.4
|
|
|
(60.6
|
)
|
|
—
|
|
|
—
|
|
|
(60.6
|
)
|
||||||
Dividends ($0.6225 per share)
|
—
|
|
|
0.4
|
|
|
(39.5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.9
|
)
|
|
(40.0
|
)
|
||||||
Balance at June 30, 2018
|
63.9
|
|
|
$
|
348.5
|
|
|
$
|
499.7
|
|
|
1.6
|
|
|
$
|
(68.2
|
)
|
|
$
|
(83.7
|
)
|
|
$
|
15.2
|
|
|
$
|
711.5
|
|
1.
|
Background and Basis of Presentation
|
2.
|
Summary of Significant Accounting Policies
|
|
Balance at September 30, 2018
|
|
Adjustments due to ASC 606
|
|
Balance at October 1, 2018
|
||||||
Assets
|
|
|
|
|
|
||||||
Receivables from long-term manufacturing contracts
|
$
|
120.3
|
|
|
$
|
1.9
|
|
|
$
|
122.2
|
|
Inventories
|
172.5
|
|
|
(1.6
|
)
|
|
170.9
|
|
|||
|
|
|
|
|
|
||||||
Liabilities
|
|
|
|
|
|
||||||
Deferred income taxes
|
$
|
76.4
|
|
|
$
|
0.1
|
|
|
$
|
76.5
|
|
|
|
|
|
|
|
||||||
Shareholders’ Equity
|
|
|
|
|
|
||||||
Retained earnings
|
$
|
531.0
|
|
|
$
|
0.2
|
|
|
$
|
531.2
|
|
|
Three Months Ended June 30, 2019
|
|
Nine Months Ended June 30, 2019
|
||||||||||||||||||||
|
As Reported
|
|
Adjustments Due to ASC 606
|
|
Balances without Adoption
|
|
As Reported
|
|
Adjustments Due to ASC 606
|
|
Balances without Adoption
|
||||||||||||
Net revenue
|
$
|
446.6
|
|
|
$
|
1.0
|
|
|
$
|
447.6
|
|
|
$
|
1,321.5
|
|
|
$
|
(0.1
|
)
|
|
$
|
1,321.4
|
|
Cost of goods sold
|
298.2
|
|
|
1.0
|
|
|
299.2
|
|
|
865.2
|
|
|
—
|
|
|
865.2
|
|
||||||
Gross profit
|
148.4
|
|
|
—
|
|
|
148.4
|
|
|
456.3
|
|
|
(0.1
|
)
|
|
456.2
|
|
||||||
Income before income taxes
|
43.3
|
|
|
—
|
|
|
43.3
|
|
|
140.1
|
|
|
(0.1
|
)
|
|
140.0
|
|
||||||
Consolidated net income
|
31.7
|
|
|
—
|
|
|
31.7
|
|
|
100.2
|
|
|
(0.1
|
)
|
|
100.1
|
|
|
June 30, 2019
|
||||||||||
|
As Reported
|
|
Adjustments Due to ASC 606
|
|
Balances without Adoption
|
||||||
Assets
|
|
|
|
|
|
|
|||||
Receivables from long-term manufacturing contracts
|
$
|
158.6
|
|
|
$
|
(2.0
|
)
|
|
$
|
156.6
|
|
Inventories
|
186.7
|
|
|
1.7
|
|
|
188.4
|
|
|||
|
|
|
|
|
|
||||||
Liabilities
|
|
|
|
|
|
||||||
Deferred income taxes
|
$
|
70.8
|
|
|
$
|
(0.1
|
)
|
|
$
|
70.7
|
|
|
|
|
|
|
|
||||||
Shareholders’ Equity
|
|
|
|
|
|
||||||
Retained earnings
|
$
|
588.1
|
|
|
$
|
(0.2
|
)
|
|
$
|
587.9
|
|
•
|
Hillenbrand elected not to adjust the promised amount of consideration for the effects of the time value of money for contracts in which the anticipated period between when Hillenbrand transfers the goods or services to the customer and when the customer pays is equal to one year or less.
|
•
|
Hillenbrand elected to account for shipping and handling activities that occur after the customer has obtained control of a good as fulfillment activities rather than as a promised service.
|
•
|
Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, and that are collected by the Company from a customer, are excluded from revenue.
|
3.
|
Revenue Recognition
|
|
Three Months Ended June 30, 2019
|
|
Nine Months Ended June 30, 2019
|
||||||||||||||||||||
|
Process Equipment Group
|
|
Batesville
|
|
Total
|
|
Process Equipment Group
|
|
Batesville
|
|
Total
|
||||||||||||
Revenue by End Market
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Plastics
|
$
|
197.9
|
|
|
$
|
—
|
|
|
$
|
197.9
|
|
|
$
|
561.0
|
|
|
$
|
—
|
|
|
$
|
561.0
|
|
Chemicals
|
28.3
|
|
|
—
|
|
|
28.3
|
|
|
80.8
|
|
|
—
|
|
|
80.8
|
|
||||||
Food & Pharmaceuticals
|
20.0
|
|
|
—
|
|
|
20.0
|
|
|
60.9
|
|
|
—
|
|
|
60.9
|
|
||||||
Minerals & Mining
|
14.1
|
|
|
—
|
|
|
14.1
|
|
|
64.3
|
|
|
—
|
|
|
64.3
|
|
||||||
Water & Wastewater
|
8.3
|
|
|
—
|
|
|
8.3
|
|
|
25.5
|
|
|
—
|
|
|
25.5
|
|
||||||
Death Care
|
—
|
|
|
131.3
|
|
|
131.3
|
|
|
—
|
|
|
397.3
|
|
|
397.3
|
|
||||||
Other
|
46.7
|
|
|
—
|
|
|
46.7
|
|
|
131.7
|
|
|
—
|
|
|
131.7
|
|
||||||
Total
|
$
|
315.3
|
|
|
$
|
131.3
|
|
|
$
|
446.6
|
|
|
$
|
924.2
|
|
|
$
|
397.3
|
|
|
$
|
1,321.5
|
|
|
Three Months Ended June 30, 2019
|
|
Nine Months Ended June 30, 2019
|
||||||||||||||||||||
|
Process Equipment Group
|
|
Batesville
|
|
Total
|
|
Process Equipment Group
|
|
Batesville
|
|
Total
|
||||||||||||
Products and Services
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Equipment
|
$
|
212.4
|
|
|
$
|
—
|
|
|
$
|
212.4
|
|
|
$
|
623.4
|
|
|
$
|
—
|
|
|
$
|
623.4
|
|
Parts and Services
|
102.9
|
|
|
—
|
|
|
102.9
|
|
|
300.8
|
|
|
—
|
|
|
300.8
|
|
||||||
Death Care
|
—
|
|
|
131.3
|
|
|
131.3
|
|
|
—
|
|
|
397.3
|
|
|
397.3
|
|
||||||
Total
|
$
|
315.3
|
|
|
$
|
131.3
|
|
|
$
|
446.6
|
|
|
$
|
924.2
|
|
|
$
|
397.3
|
|
|
$
|
1,321.5
|
|
|
Three Months Ended June 30, 2019
|
|
Nine Months Ended June 30, 2019
|
||||||||||||||||||||
|
Process Equipment Group
|
|
Batesville
|
|
Total
|
|
Process Equipment Group
|
|
Batesville
|
|
Total
|
||||||||||||
Timing of Transfer
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Point in Time
|
$
|
164.6
|
|
|
$
|
131.3
|
|
|
$
|
295.9
|
|
|
$
|
505.1
|
|
|
$
|
397.3
|
|
|
$
|
902.4
|
|
Over Time
|
150.7
|
|
|
—
|
|
|
150.7
|
|
|
419.1
|
|
|
—
|
|
|
419.1
|
|
||||||
Total
|
$
|
315.3
|
|
|
$
|
131.3
|
|
|
$
|
446.6
|
|
|
$
|
924.2
|
|
|
$
|
397.3
|
|
|
$
|
1,321.5
|
|
4.
|
Business Acquisitions
|
5.
|
Supplemental Balance Sheet Information
|
|
June 30,
2019 |
|
September 30,
2018 |
||||
Trade accounts receivable reserves
|
$
|
19.1
|
|
|
$
|
22.2
|
|
|
|
|
|
||||
Accumulated depreciation on property, plant, and equipment
|
$
|
311.1
|
|
|
$
|
303.8
|
|
|
|
|
|
||||
Inventories:
|
|
|
|
|
|
||
Raw materials and components
|
$
|
75.2
|
|
|
$
|
68.3
|
|
Work in process
|
47.8
|
|
|
44.7
|
|
||
Finished goods
|
63.7
|
|
|
59.5
|
|
||
Total inventories
|
$
|
186.7
|
|
|
$
|
172.5
|
|
6.
|
Intangible Assets and Goodwill
|
|
|||||||||||||||
|
June 30, 2019
|
|
September 30, 2018
|
||||||||||||
|
Cost
|
|
Accumulated
Amortization
|
|
Cost
|
|
Accumulated
Amortization
|
||||||||
Finite-lived assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Trade names
|
$
|
0.2
|
|
|
$
|
(0.2
|
)
|
|
$
|
0.2
|
|
|
$
|
(0.2
|
)
|
Customer relationships
|
472.1
|
|
|
(165.8
|
)
|
|
464.5
|
|
|
(148.4
|
)
|
||||
Technology, including patents
|
78.8
|
|
|
(49.0
|
)
|
|
79.6
|
|
|
(45.1
|
)
|
||||
Software
|
58.4
|
|
|
(51.2
|
)
|
|
58.0
|
|
|
(48.9
|
)
|
||||
Other
|
2.8
|
|
|
(2.8
|
)
|
|
0.2
|
|
|
(0.2
|
)
|
||||
|
612.3
|
|
|
(269.0
|
)
|
|
602.5
|
|
|
(242.8
|
)
|
||||
Indefinite-lived assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Trade names
|
127.8
|
|
|
—
|
|
|
127.6
|
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Total
|
$
|
740.1
|
|
|
$
|
(269.0
|
)
|
|
$
|
730.1
|
|
|
$
|
(242.8
|
)
|
|
Process
Equipment
Group
|
|
Batesville
|
|
Total
|
||||||
Balance as of September 30, 2018
|
$
|
573.6
|
|
|
$
|
8.3
|
|
|
$
|
581.9
|
|
Acquisition
|
8.8
|
|
|
—
|
|
|
8.8
|
|
|||
Foreign currency adjustments
|
(3.9
|
)
|
|
—
|
|
|
(3.9
|
)
|
|||
Balance as of June 30, 2019
|
$
|
578.5
|
|
|
$
|
8.3
|
|
|
$
|
586.8
|
|
7.
|
Financing Agreements
|
8.
|
Retirement Benefits
|
|
U.S. Pension Benefits
|
|
Non-U.S. Pension Benefits
|
||||||||||||
|
Three Months Ended June 30,
|
|
Three Months Ended June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Service costs
|
$
|
0.5
|
|
|
$
|
0.7
|
|
|
$
|
0.4
|
|
|
$
|
0.5
|
|
Interest costs
|
2.4
|
|
|
2.2
|
|
|
0.3
|
|
|
0.3
|
|
||||
Expected return on plan assets
|
(3.3
|
)
|
|
(3.5
|
)
|
|
(0.1
|
)
|
|
(0.2
|
)
|
||||
Amortization of unrecognized prior service costs, net
|
—
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
||||
Amortization of net loss
|
0.4
|
|
|
0.8
|
|
|
0.3
|
|
|
0.2
|
|
||||
Net pension costs
|
$
|
—
|
|
|
$
|
0.2
|
|
|
$
|
0.9
|
|
|
$
|
0.9
|
|
|
U.S. Pension Benefits
|
|
Non-U.S. Pension Benefits
|
||||||||||||
|
Nine Months Ended June 30,
|
|
Nine Months Ended June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Service costs
|
$
|
1.7
|
|
|
$
|
2.1
|
|
|
$
|
1.1
|
|
|
$
|
1.5
|
|
Interest costs
|
7.5
|
|
|
6.5
|
|
|
0.9
|
|
|
0.9
|
|
||||
Expected return on plan assets
|
(9.9
|
)
|
|
(10.5
|
)
|
|
(0.4
|
)
|
|
(0.5
|
)
|
||||
Amortization of unrecognized prior service costs, net
|
0.1
|
|
|
0.1
|
|
|
—
|
|
|
0.1
|
|
||||
Amortization of net loss
|
0.8
|
|
|
2.4
|
|
|
0.8
|
|
|
0.7
|
|
||||
Net pension costs
|
$
|
0.2
|
|
|
$
|
0.6
|
|
|
$
|
2.4
|
|
|
$
|
2.7
|
|
9.
|
Income Taxes
|
10.
|
Earnings per share
|
|
Three Months Ended
June 30, |
|
Nine Months Ended
June 30, |
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net income (1)
|
$
|
30.4
|
|
|
$
|
35.9
|
|
|
$
|
96.7
|
|
|
$
|
32.1
|
|
Weighted average shares outstanding (basic - in millions)
|
63.0
|
|
|
62.8
|
|
|
62.9
|
|
|
63.2
|
|
||||
Effect of dilutive stock options and other unvested equity awards (in millions)
|
0.4
|
|
|
0.7
|
|
|
0.5
|
|
|
0.7
|
|
||||
Weighted average shares outstanding (diluted - in millions)
|
63.4
|
|
|
63.5
|
|
|
63.4
|
|
|
63.9
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Basic earnings per share
|
$
|
0.48
|
|
|
$
|
0.57
|
|
|
$
|
1.54
|
|
|
$
|
0.51
|
|
Diluted earnings per share
|
$
|
0.48
|
|
|
$
|
0.56
|
|
|
$
|
1.52
|
|
|
$
|
0.50
|
|
|
|
|
|
|
|
|
|
||||||||
Shares with anti-dilutive effect excluded from the computation of diluted earnings per share (in millions)
|
1.1
|
|
|
0.5
|
|
|
0.9
|
|
|
0.4
|
|
11.
|
Other Comprehensive Income (Loss)
|
|
Pension and
Postretirement
|
|
Currency
Translation
|
|
Net
Unrealized
Gain (Loss)
on Derivative
Instruments
|
|
Total
Attributable
to
Hillenbrand,
Inc.
|
|
Noncontrolling
Interests
|
|
Total
|
||||||||||||
Balance at September 30, 2018
|
$
|
(41.0
|
)
|
|
$
|
(44.1
|
)
|
|
$
|
0.9
|
|
|
$
|
(84.2
|
)
|
|
|
|
|
|
|
||
Other comprehensive income before reclassifications
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Before tax amount
|
1.5
|
|
|
(3.6
|
)
|
|
(16.2
|
)
|
|
(18.3
|
)
|
|
$
|
0.2
|
|
|
$
|
(18.1
|
)
|
||||
Tax expense
|
(0.4
|
)
|
|
—
|
|
|
3.8
|
|
|
3.4
|
|
|
—
|
|
|
3.4
|
|
||||||
After tax amount
|
1.1
|
|
|
(3.6
|
)
|
|
(12.4
|
)
|
|
(14.9
|
)
|
|
0.2
|
|
|
(14.7
|
)
|
||||||
Amounts reclassified from accumulated other comprehensive income(1)
|
0.9
|
|
|
—
|
|
|
(0.3
|
)
|
|
0.6
|
|
|
—
|
|
|
0.6
|
|
||||||
Net current period other comprehensive income (loss)
|
2.0
|
|
|
(3.6
|
)
|
|
(12.7
|
)
|
|
(14.3
|
)
|
|
$
|
0.2
|
|
|
$
|
(14.1
|
)
|
||||
Balance at June 30, 2019
|
$
|
(39.0
|
)
|
|
$
|
(47.7
|
)
|
|
$
|
(11.8
|
)
|
|
$
|
(98.5
|
)
|
|
|
|
|
|
|
|
Pension and
Postretirement
|
|
Currency
Translation
|
|
Net
Unrealized
Gain (Loss)
on Derivative
Instruments
|
|
Total
Attributable
to
Hillenbrand,
Inc.
|
|
Noncontrolling
Interests
|
|
Total
|
||||||||||||
Balance at September 30, 2017
|
$
|
(45.3
|
)
|
|
$
|
(36.9
|
)
|
|
$
|
1.0
|
|
|
$
|
(81.2
|
)
|
|
|
|
|
|
|
||
Other comprehensive income before reclassifications
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Before tax amount
|
—
|
|
|
(4.8
|
)
|
|
(0.2
|
)
|
|
(5.0
|
)
|
|
$
|
(0.3
|
)
|
|
$
|
(5.3
|
)
|
||||
Tax expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
After tax amount
|
—
|
|
|
(4.8
|
)
|
|
(0.2
|
)
|
|
(5.0
|
)
|
|
(0.3
|
)
|
|
(5.3
|
)
|
||||||
Amounts reclassified from accumulated other comprehensive income(1)
|
2.1
|
|
|
—
|
|
|
0.4
|
|
|
2.5
|
|
|
—
|
|
|
2.5
|
|
||||||
Net current period other comprehensive income (loss)
|
2.1
|
|
|
(4.8
|
)
|
|
0.2
|
|
|
(2.5
|
)
|
|
$
|
(0.3
|
)
|
|
$
|
(2.8
|
)
|
||||
Balance at June 30, 2018
|
$
|
(43.2
|
)
|
|
$
|
(41.7
|
)
|
|
$
|
1.2
|
|
|
$
|
(83.7
|
)
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2019
|
||||||||||||||
|
Amortization of Pension and
Postretirement (1) |
|
(Gain)/Loss on
|
|
|
||||||||||
|
Net Loss
Recognized |
|
Prior Service Costs
Recognized |
|
Derivative
Instruments |
|
Total
|
||||||||
Affected Line in the Consolidated Statement of Operations:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net revenue
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(0.1
|
)
|
|
$
|
(0.1
|
)
|
Cost of goods sold
|
—
|
|
|
—
|
|
|
(0.4
|
)
|
|
(0.4
|
)
|
||||
Other income (expense), net
|
0.6
|
|
|
—
|
|
|
—
|
|
|
0.6
|
|
||||
Total before tax
|
$
|
0.6
|
|
|
$
|
—
|
|
|
$
|
(0.5
|
)
|
|
$
|
0.1
|
|
Tax expense
|
|
|
|
|
|
|
—
|
|
|||||||
Total reclassifications for the period, net of tax
|
|
|
|
|
|
|
$
|
0.1
|
|
|
Nine Months Ended June 30, 2019
|
||||||||||||||
|
Amortization of Pension and
Postretirement (1) |
|
(Gain)/Loss on
|
|
|
||||||||||
|
Net Loss
Recognized |
|
Prior Service Costs
Recognized |
|
Derivative
Instruments |
|
Total
|
||||||||
Affected Line in the Consolidated Statement of Operations:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net revenue
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
0.1
|
|
|
$
|
0.1
|
|
Cost of goods sold
|
—
|
|
|
—
|
|
|
(0.6
|
)
|
|
(0.6
|
)
|
||||
Other income (expense), net
|
1.3
|
|
|
—
|
|
|
—
|
|
|
1.3
|
|
||||
Total before tax
|
$
|
1.3
|
|
|
$
|
—
|
|
|
$
|
(0.5
|
)
|
|
$
|
0.8
|
|
Tax expense
|
|
|
|
|
|
|
(0.2
|
)
|
|||||||
Total reclassifications for the period, net of tax
|
|
|
|
|
|
|
$
|
0.6
|
|
|
Three Months Ended June 30, 2018
|
||||||||||||||
|
Amortization of Pension and
Postretirement (1)
|
|
(Gain)/Loss on
|
|
|
||||||||||
|
Net Loss
Recognized
|
|
Prior Service Costs
Recognized
|
|
Derivative
Instruments
|
|
Total
|
||||||||
Affected Line in the Consolidated Statement of Operations:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net revenue
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
0.9
|
|
|
$
|
0.9
|
|
Other income (expense), net
|
0.9
|
|
|
0.1
|
|
|
—
|
|
|
1.0
|
|
||||
Total before tax
|
$
|
0.9
|
|
|
$
|
0.1
|
|
|
$
|
0.9
|
|
|
$
|
1.9
|
|
Tax expense
|
|
|
|
|
|
|
|
|
|
(0.5
|
)
|
||||
Total reclassifications for the period, net of tax
|
|
|
|
|
|
|
|
|
|
$
|
1.4
|
|
|
Nine Months Ended June 30, 2018
|
||||||||||||||
|
Amortization of Pension and
Postretirement (1)
|
|
(Gain)/Loss on
|
|
|
||||||||||
|
Net Loss
Recognized
|
|
Prior Service Costs
Recognized
|
|
Derivative
Instruments
|
|
Total
|
||||||||
Affected Line in the Consolidated Statement of Operations:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net revenue
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
0.5
|
|
|
$
|
0.5
|
|
Other income (expense), net
|
2.9
|
|
|
0.1
|
|
|
—
|
|
|
3.0
|
|
||||
Total before tax
|
$
|
2.9
|
|
|
$
|
0.1
|
|
|
$
|
0.5
|
|
|
$
|
3.5
|
|
Tax expense
|
|
|
|
|
|
|
(1.0
|
)
|
|||||||
Total reclassifications for the period, net of tax
|
|
|
|
|
|
|
$
|
2.5
|
|
12.
|
Share-Based Compensation
|
|
Three Months Ended
June 30, |
|
Nine Months Ended
June 30, |
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Share-based compensation costs
|
$
|
2.9
|
|
|
$
|
2.6
|
|
|
$
|
8.7
|
|
|
$
|
8.8
|
|
Less impact of income tax benefit
|
0.7
|
|
|
0.7
|
|
|
2.0
|
|
|
2.3
|
|
||||
Share-based compensation costs, net of tax
|
$
|
2.2
|
|
|
$
|
1.9
|
|
|
$
|
6.7
|
|
|
$
|
6.5
|
|
|
Number of
Units
|
|
Stock options
|
431,726
|
|
Time-based stock awards
|
29,262
|
|
Performance-based stock awards (maximum that can be earned)
|
336,273
|
|
13.
|
Other Income (Expense), Net
|
|
Three Months Ended
June 30, |
|
Nine Months Ended
June 30, |
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Equity in net income (loss) of affiliates
|
$
|
0.1
|
|
|
$
|
(0.1
|
)
|
|
$
|
—
|
|
|
$
|
(0.1
|
)
|
Foreign currency exchange gain (loss), net
|
(0.5
|
)
|
|
(0.1
|
)
|
|
—
|
|
|
(0.9
|
)
|
||||
Other, net
|
(0.1
|
)
|
|
(0.5
|
)
|
|
0.1
|
|
|
(1.2
|
)
|
||||
Other income (expense), net
|
$
|
(0.5
|
)
|
|
$
|
(0.7
|
)
|
|
$
|
0.1
|
|
|
$
|
(2.2
|
)
|
14.
|
Commitments and Contingencies
|
15.
|
Fair Value Measurements
|
Level 1:
|
Inputs are quoted prices in active markets for identical assets or liabilities.
|
Level 2:
|
Inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs (other than quoted prices) that are observable for the asset or liability, either directly or indirectly.
|
Level 3:
|
Inputs are unobservable for the asset or liability.
|
|
Carrying
|
|
|
|
|
|
|
||||||||
|
Value at
June 30, |
|
Fair Value at June 30, 2019
Using Inputs Considered as: |
||||||||||||
|
2019
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cash and cash equivalents
|
$
|
64.4
|
|
|
$
|
64.4
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Investments in rabbi trust
|
4.2
|
|
|
4.2
|
|
|
—
|
|
|
—
|
|
||||
Derivative instruments
|
2.0
|
|
|
—
|
|
|
2.0
|
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||
$150 senior unsecured notes
|
149.7
|
|
|
154.2
|
|
|
—
|
|
|
—
|
|
||||
Revolving credit facility
|
74.0
|
|
|
—
|
|
|
74.0
|
|
|
—
|
|
||||
$100 Series A Notes
|
100.0
|
|
|
—
|
|
|
106.1
|
|
|
—
|
|
||||
Derivative instruments
|
17.7
|
|
|
—
|
|
|
17.7
|
|
|
—
|
|
16.
|
Segment and Geographical Information
|
|
Three Months Ended June 30,
|
|
Nine Months Ended June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net revenue
|
|
|
|
|
|
|
|
|
|
||||||
Process Equipment Group
|
$
|
315.3
|
|
|
$
|
316.7
|
|
|
$
|
924.2
|
|
|
$
|
880.8
|
|
Batesville
|
131.3
|
|
|
129.3
|
|
|
397.3
|
|
|
414.6
|
|
||||
Total
|
$
|
446.6
|
|
|
$
|
446.0
|
|
|
$
|
1,321.5
|
|
|
$
|
1,295.4
|
|
|
|
|
|
|
|
|
|
||||||||
Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
||||||
Process Equipment Group
|
$
|
54.9
|
|
|
$
|
58.2
|
|
|
$
|
156.6
|
|
|
$
|
153.7
|
|
Batesville
|
25.3
|
|
|
25.6
|
|
|
83.6
|
|
|
92.1
|
|
||||
Corporate
|
(10.7
|
)
|
|
(12.4
|
)
|
|
(31.7
|
)
|
|
(32.9
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Net revenue (1)
|
|
|
|
|
|
|
|
|
|
||||||
United States
|
$
|
222.1
|
|
|
$
|
226.7
|
|
|
$
|
669.3
|
|
|
$
|
691.7
|
|
Germany
|
145.4
|
|
|
130.7
|
|
|
398.3
|
|
|
370.9
|
|
||||
All other foreign business units
|
79.1
|
|
|
88.6
|
|
|
253.9
|
|
|
232.8
|
|
||||
Total
|
$
|
446.6
|
|
|
$
|
446.0
|
|
|
$
|
1,321.5
|
|
|
$
|
1,295.4
|
|
|
June 30,
2019 |
|
September 30,
2018 |
||||
Total assets assigned
|
|
|
|
|
|
||
Process Equipment Group
|
$
|
1,682.7
|
|
|
$
|
1,638.8
|
|
Batesville
|
175.9
|
|
|
191.8
|
|
||
Corporate
|
32.0
|
|
|
34.0
|
|
||
Total
|
$
|
1,890.6
|
|
|
$
|
1,864.6
|
|
|
|
|
|
||||
Tangible long-lived assets, net
|
|
|
|
|
|
||
United States
|
$
|
73.5
|
|
|
$
|
76.6
|
|
Germany
|
38.6
|
|
|
40.7
|
|
||
All other foreign business units
|
24.5
|
|
|
24.7
|
|
||
Total
|
$
|
136.6
|
|
|
$
|
142.0
|
|
|
Three Months Ended
June 30, |
|
Nine Months Ended
June 30, |
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Adjusted EBITDA:
|
|
|
|
|
|
|
|
||||||||
Process Equipment Group
|
$
|
54.9
|
|
|
$
|
58.2
|
|
|
$
|
156.6
|
|
|
$
|
153.7
|
|
Batesville
|
25.3
|
|
|
25.6
|
|
|
83.6
|
|
|
92.1
|
|
||||
Corporate
|
(10.7
|
)
|
|
(12.4
|
)
|
|
(31.7
|
)
|
|
(32.9
|
)
|
||||
Less:
|
|
|
|
|
|
|
|
|
|
||||||
Interest income
|
(0.3
|
)
|
|
(0.3
|
)
|
|
(0.7
|
)
|
|
(1.1
|
)
|
||||
Interest expense
|
5.2
|
|
|
5.5
|
|
|
16.1
|
|
|
17.8
|
|
||||
Income tax expense
|
11.6
|
|
|
15.2
|
|
|
39.9
|
|
|
52.5
|
|
||||
Depreciation and amortization
|
15.1
|
|
|
14.2
|
|
|
44.3
|
|
|
42.0
|
|
||||
Impairment charge
|
—
|
|
|
—
|
|
|
—
|
|
|
63.4
|
|
||||
Business acquisition, development, and integration
|
3.8
|
|
|
0.1
|
|
|
4.9
|
|
|
2.6
|
|
||||
Restructuring and restructuring related
|
2.4
|
|
|
0.5
|
|
|
3.6
|
|
|
1.7
|
|
||||
Inventory step-up
|
—
|
|
|
—
|
|
|
0.2
|
|
|
—
|
|
||||
Consolidated net income
|
$
|
31.7
|
|
|
$
|
36.2
|
|
|
$
|
100.2
|
|
|
$
|
34.0
|
|
17.
|
Condensed Consolidating Information
|
|
Three Months Ended June 30, 2019
|
|
Three Months Ended June 30, 2018
|
||||||||||||||||||||||||||||||||||||
|
Parent
|
|
Guarantors
|
|
Non-
Guarantors
|
|
Eliminations
|
|
Consolidated
|
|
Parent
|
|
Guarantors
|
|
Non-
Guarantors
|
|
Eliminations
|
|
Consolidated
|
||||||||||||||||||||
Net revenue
|
$
|
—
|
|
|
$
|
220.4
|
|
|
$
|
284.2
|
|
|
$
|
(58.0
|
)
|
|
$
|
446.6
|
|
|
$
|
—
|
|
|
$
|
232.7
|
|
|
$
|
273.2
|
|
|
$
|
(59.9
|
)
|
|
$
|
446.0
|
|
Cost of goods sold
|
—
|
|
|
125.0
|
|
|
204.7
|
|
|
(31.5
|
)
|
|
298.2
|
|
|
—
|
|
|
126.4
|
|
|
189.6
|
|
|
(33.5
|
)
|
|
282.5
|
|
||||||||||
Gross profit
|
—
|
|
|
95.4
|
|
|
79.5
|
|
|
(26.5
|
)
|
|
148.4
|
|
|
—
|
|
|
106.3
|
|
|
83.6
|
|
|
(26.4
|
)
|
|
163.5
|
|
||||||||||
Operating expenses
|
15.1
|
|
|
59.8
|
|
|
42.4
|
|
|
(26.5
|
)
|
|
90.8
|
|
|
13.4
|
|
|
63.1
|
|
|
48.2
|
|
|
(26.4
|
)
|
|
98.3
|
|
||||||||||
Amortization expense
|
—
|
|
|
3.3
|
|
|
5.3
|
|
|
—
|
|
|
8.6
|
|
|
—
|
|
|
3.3
|
|
|
4.3
|
|
|
—
|
|
|
7.6
|
|
||||||||||
Interest expense
|
4.4
|
|
|
0.1
|
|
|
0.7
|
|
|
—
|
|
|
5.2
|
|
|
4.6
|
|
|
—
|
|
|
0.9
|
|
|
—
|
|
|
5.5
|
|
||||||||||
Other (expense) income, net
|
(0.1
|
)
|
|
(0.3
|
)
|
|
(0.1
|
)
|
|
—
|
|
|
(0.5
|
)
|
|
(0.2
|
)
|
|
(0.4
|
)
|
|
(0.1
|
)
|
|
—
|
|
|
(0.7
|
)
|
||||||||||
Equity in net income of subsidiaries
|
44.8
|
|
|
2.4
|
|
|
—
|
|
|
(47.2
|
)
|
|
—
|
|
|
34.8
|
|
|
3.6
|
|
|
—
|
|
|
(38.4
|
)
|
|
—
|
|
||||||||||
Income before income taxes
|
25.2
|
|
|
34.3
|
|
|
31.0
|
|
|
(47.2
|
)
|
|
43.3
|
|
|
16.6
|
|
|
43.1
|
|
|
30.1
|
|
|
(38.4
|
)
|
|
51.4
|
|
||||||||||
Income tax expense
|
(5.2
|
)
|
|
9.3
|
|
|
7.5
|
|
|
—
|
|
|
11.6
|
|
|
(19.3
|
)
|
|
9.9
|
|
|
24.6
|
|
|
—
|
|
|
15.2
|
|
||||||||||
Consolidated net income
|
30.4
|
|
|
25.0
|
|
|
23.5
|
|
|
(47.2
|
)
|
|
31.7
|
|
|
35.9
|
|
|
33.2
|
|
|
5.5
|
|
|
(38.4
|
)
|
|
36.2
|
|
||||||||||
Less: Net income attributable to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
noncontrolling interests
|
—
|
|
|
—
|
|
|
1.3
|
|
|
—
|
|
|
1.3
|
|
|
—
|
|
|
—
|
|
|
0.3
|
|
|
—
|
|
|
0.3
|
|
||||||||||
Net income (1)
|
$
|
30.4
|
|
|
$
|
25.0
|
|
|
$
|
22.2
|
|
|
$
|
(47.2
|
)
|
|
$
|
30.4
|
|
|
$
|
35.9
|
|
|
$
|
33.2
|
|
|
$
|
5.2
|
|
|
$
|
(38.4
|
)
|
|
$
|
35.9
|
|
Consolidated comprehensive income
|
$
|
33.7
|
|
|
$
|
26.2
|
|
|
$
|
30.2
|
|
|
$
|
(55.1
|
)
|
|
$
|
35.0
|
|
|
$
|
10.7
|
|
|
$
|
33.8
|
|
|
$
|
(20.4
|
)
|
|
$
|
(13.4
|
)
|
|
$
|
10.7
|
|
Less: Comprehensive income attributable
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
to noncontrolling interests
|
—
|
|
|
—
|
|
|
1.3
|
|
|
—
|
|
|
1.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
Comprehensive income (2)
|
$
|
33.7
|
|
|
$
|
26.2
|
|
|
$
|
28.9
|
|
|
$
|
(55.1
|
)
|
|
$
|
33.7
|
|
|
$
|
10.7
|
|
|
$
|
33.8
|
|
|
$
|
(20.4
|
)
|
|
$
|
(13.4
|
)
|
|
$
|
10.7
|
|
|
Nine Months Ended June 30, 2019
|
|
Nine Months Ended June 30, 2018
|
||||||||||||||||||||||||||||||||||||
|
Parent
|
|
Guarantors
|
|
Non-
Guarantors
|
|
Eliminations
|
|
Consolidated
|
|
Parent
|
|
Guarantors
|
|
Non-
Guarantors
|
|
Eliminations
|
|
Consolidated
|
||||||||||||||||||||
Net revenue
|
$
|
—
|
|
|
$
|
667.1
|
|
|
$
|
826.1
|
|
|
$
|
(171.7
|
)
|
|
$
|
1,321.5
|
|
|
$
|
—
|
|
|
$
|
701.8
|
|
|
$
|
758.7
|
|
|
$
|
(165.1
|
)
|
|
$
|
1,295.4
|
|
Cost of goods sold
|
—
|
|
|
367.6
|
|
|
589.1
|
|
|
(91.5
|
)
|
|
865.2
|
|
|
—
|
|
|
371.2
|
|
|
530.7
|
|
|
(84.8
|
)
|
|
817.1
|
|
||||||||||
Gross profit
|
—
|
|
|
299.5
|
|
|
237.0
|
|
|
(80.2
|
)
|
|
456.3
|
|
|
—
|
|
|
330.6
|
|
|
228.0
|
|
|
(80.3
|
)
|
|
478.3
|
|
||||||||||
Operating expenses
|
39.0
|
|
|
182.1
|
|
|
134.3
|
|
|
(80.2
|
)
|
|
275.2
|
|
|
37.9
|
|
|
189.5
|
|
|
138.6
|
|
|
(80.3
|
)
|
|
285.7
|
|
||||||||||
Amortization expense
|
—
|
|
|
10.0
|
|
|
15.0
|
|
|
—
|
|
|
25.0
|
|
|
—
|
|
|
10.0
|
|
|
12.7
|
|
|
—
|
|
|
22.7
|
|
||||||||||
Impairment charge
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
63.4
|
|
|
—
|
|
|
—
|
|
|
63.4
|
|
||||||||||
Interest expense
|
13.6
|
|
|
0.2
|
|
|
2.3
|
|
|
—
|
|
|
16.1
|
|
|
15.7
|
|
|
—
|
|
|
2.1
|
|
|
—
|
|
|
17.8
|
|
||||||||||
Other (expense) income, net
|
(0.6
|
)
|
|
(0.4
|
)
|
|
1.1
|
|
|
—
|
|
|
0.1
|
|
|
(0.6
|
)
|
|
(0.1
|
)
|
|
(1.5
|
)
|
|
—
|
|
|
(2.2
|
)
|
||||||||||
Equity in net income of subsidiaries
|
138.2
|
|
|
8.1
|
|
|
—
|
|
|
(146.3
|
)
|
|
—
|
|
|
67.1
|
|
|
6.8
|
|
|
—
|
|
|
(73.9
|
)
|
|
—
|
|
||||||||||
Income before income taxes
|
85.0
|
|
|
114.9
|
|
|
86.5
|
|
|
(146.3
|
)
|
|
140.1
|
|
|
12.9
|
|
|
74.4
|
|
|
73.1
|
|
|
(73.9
|
)
|
|
86.5
|
|
||||||||||
Income tax expense
|
(11.7
|
)
|
|
29.8
|
|
|
21.8
|
|
|
—
|
|
|
39.9
|
|
|
(19.2
|
)
|
|
34.8
|
|
|
36.9
|
|
|
—
|
|
|
52.5
|
|
||||||||||
Consolidated net income
|
96.7
|
|
|
85.1
|
|
|
64.7
|
|
|
(146.3
|
)
|
|
100.2
|
|
|
32.1
|
|
|
39.6
|
|
|
36.2
|
|
|
(73.9
|
)
|
|
34.0
|
|
||||||||||
Less: Net income attributable to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
noncontrolling interests
|
—
|
|
|
—
|
|
|
3.5
|
|
|
—
|
|
|
3.5
|
|
|
—
|
|
|
—
|
|
|
1.9
|
|
|
—
|
|
|
1.9
|
|
||||||||||
Net income (1)
|
$
|
96.7
|
|
|
$
|
85.1
|
|
|
$
|
61.2
|
|
|
$
|
(146.3
|
)
|
|
$
|
96.7
|
|
|
$
|
32.1
|
|
|
$
|
39.6
|
|
|
$
|
34.3
|
|
|
$
|
(73.9
|
)
|
|
$
|
32.1
|
|
Consolidated comprehensive income
|
$
|
82.4
|
|
|
$
|
86.4
|
|
|
$
|
61.6
|
|
|
$
|
(144.3
|
)
|
|
$
|
86.1
|
|
|
$
|
29.6
|
|
|
$
|
41.1
|
|
|
$
|
31.0
|
|
|
$
|
(70.5
|
)
|
|
$
|
31.2
|
|
Less: Comprehensive income attributable
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
to noncontrolling interests
|
—
|
|
|
—
|
|
|
3.7
|
|
|
—
|
|
|
3.7
|
|
|
—
|
|
|
—
|
|
|
1.6
|
|
|
—
|
|
|
1.6
|
|
||||||||||
Comprehensive income (2)
|
$
|
82.4
|
|
|
$
|
86.4
|
|
|
$
|
57.9
|
|
|
$
|
(144.3
|
)
|
|
$
|
82.4
|
|
|
$
|
29.6
|
|
|
$
|
41.1
|
|
|
$
|
29.4
|
|
|
$
|
(70.5
|
)
|
|
$
|
29.6
|
|
|
June 30, 2019
|
|
September 30, 2018
|
||||||||||||||||||||||||||||||||||||
|
Parent
|
|
Guarantors
|
|
Non-
Guarantors
|
|
Eliminations
|
|
Consolidated
|
|
Parent
|
|
Guarantors
|
|
Non-
Guarantors
|
|
Eliminations
|
|
Consolidated
|
||||||||||||||||||||
Cash and cash equivalents
|
$
|
0.1
|
|
|
$
|
5.5
|
|
|
$
|
58.8
|
|
|
$
|
—
|
|
|
$
|
64.4
|
|
|
$
|
1.1
|
|
|
$
|
5.8
|
|
|
$
|
49.1
|
|
|
$
|
—
|
|
|
$
|
56.0
|
|
Trade receivables, net
|
—
|
|
|
99.2
|
|
|
99.6
|
|
|
—
|
|
|
198.8
|
|
|
—
|
|
|
124.5
|
|
|
94.0
|
|
|
—
|
|
|
218.5
|
|
||||||||||
Receivables from long-term manufacturing contracts
|
—
|
|
|
9.8
|
|
|
148.8
|
|
|
—
|
|
|
158.6
|
|
|
—
|
|
|
5.3
|
|
|
115.0
|
|
|
—
|
|
|
120.3
|
|
||||||||||
Inventories
|
—
|
|
|
81.1
|
|
|
108.4
|
|
|
(2.8
|
)
|
|
186.7
|
|
|
—
|
|
|
76.7
|
|
|
98.6
|
|
|
(2.8
|
)
|
|
172.5
|
|
||||||||||
Prepaid expense
|
3.0
|
|
|
6.6
|
|
|
19.4
|
|
|
—
|
|
|
29.0
|
|
|
2.7
|
|
|
7.0
|
|
|
15.5
|
|
|
—
|
|
|
25.2
|
|
||||||||||
Intercompany receivables
|
—
|
|
|
1,169.2
|
|
|
51.3
|
|
|
(1,220.5
|
)
|
|
—
|
|
|
—
|
|
|
1,131.1
|
|
|
79.1
|
|
|
(1,210.2
|
)
|
|
—
|
|
||||||||||
Other current assets
|
—
|
|
|
2.6
|
|
|
17.6
|
|
|
0.5
|
|
|
20.7
|
|
|
—
|
|
|
3.2
|
|
|
14.6
|
|
|
0.3
|
|
|
18.1
|
|
||||||||||
Total current assets
|
3.1
|
|
|
1,374.0
|
|
|
503.9
|
|
|
(1,222.8
|
)
|
|
658.2
|
|
|
3.8
|
|
|
1,353.6
|
|
|
465.9
|
|
|
(1,212.7
|
)
|
|
610.6
|
|
||||||||||
Property, plant and equipment, net
|
3.5
|
|
|
58.6
|
|
|
74.5
|
|
|
—
|
|
|
136.6
|
|
|
3.8
|
|
|
60.2
|
|
|
78.0
|
|
|
—
|
|
|
142.0
|
|
||||||||||
Intangible assets, net
|
2.5
|
|
|
185.0
|
|
|
283.6
|
|
|
—
|
|
|
471.1
|
|
|
3.2
|
|
|
196.0
|
|
|
288.1
|
|
|
—
|
|
|
487.3
|
|
||||||||||
Goodwill
|
—
|
|
|
225.0
|
|
|
361.8
|
|
|
—
|
|
|
586.8
|
|
|
—
|
|
|
225.0
|
|
|
356.9
|
|
|
—
|
|
|
581.9
|
|
||||||||||
Investment in consolidated subsidiaries
|
2,347.3
|
|
|
667.8
|
|
|
—
|
|
|
(3,015.1
|
)
|
|
—
|
|
|
2,263.1
|
|
|
653.9
|
|
|
—
|
|
|
(2,917.0
|
)
|
|
—
|
|
||||||||||
Other assets
|
31.2
|
|
|
27.6
|
|
|
3.0
|
|
|
(23.9
|
)
|
|
37.9
|
|
|
15.7
|
|
|
28.2
|
|
|
5.9
|
|
|
(7.0
|
)
|
|
42.8
|
|
||||||||||
Total Assets
|
$
|
2,387.6
|
|
|
$
|
2,538.0
|
|
|
$
|
1,226.8
|
|
|
$
|
(4,261.8
|
)
|
|
$
|
1,890.6
|
|
|
$
|
2,289.6
|
|
|
$
|
2,516.9
|
|
|
$
|
1,194.8
|
|
|
$
|
(4,136.7
|
)
|
|
$
|
1,864.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Trade accounts payable
|
$
|
0.2
|
|
|
$
|
62.5
|
|
|
$
|
161.8
|
|
|
$
|
—
|
|
|
$
|
224.5
|
|
|
$
|
—
|
|
|
$
|
62.4
|
|
|
$
|
134.4
|
|
|
$
|
—
|
|
|
$
|
196.8
|
|
Liabilities from long-term manufacturing contracts and advances
|
—
|
|
|
20.0
|
|
|
89.2
|
|
|
—
|
|
|
109.2
|
|
|
—
|
|
|
26.6
|
|
|
99.3
|
|
|
—
|
|
|
125.9
|
|
||||||||||
Accrued compensation
|
5.2
|
|
|
19.1
|
|
|
44.6
|
|
|
—
|
|
|
68.9
|
|
|
7.2
|
|
|
20.1
|
|
|
44.6
|
|
|
—
|
|
|
71.9
|
|
||||||||||
Intercompany payables
|
1,214.5
|
|
|
8.8
|
|
|
—
|
|
|
(1,223.3
|
)
|
|
—
|
|
|
1,206.2
|
|
|
6.1
|
|
|
—
|
|
|
(1,212.3
|
)
|
|
—
|
|
||||||||||
Other current liabilities
|
24.1
|
|
|
42.6
|
|
|
67.0
|
|
|
(10.0
|
)
|
|
123.7
|
|
|
19.4
|
|
|
38.9
|
|
|
78.1
|
|
|
0.7
|
|
|
137.1
|
|
||||||||||
Total current liabilities
|
1,244.0
|
|
|
153.0
|
|
|
362.6
|
|
|
(1,233.3
|
)
|
|
526.3
|
|
|
1,232.8
|
|
|
154.1
|
|
|
356.4
|
|
|
(1,211.6
|
)
|
|
531.7
|
|
||||||||||
Long-term debt
|
323.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
323.2
|
|
|
300.2
|
|
|
—
|
|
|
44.4
|
|
|
—
|
|
|
344.6
|
|
||||||||||
Accrued pension and postretirement healthcare
|
0.7
|
|
|
28.8
|
|
|
84.7
|
|
|
—
|
|
|
114.2
|
|
|
0.7
|
|
|
29.8
|
|
|
90.0
|
|
|
—
|
|
|
120.5
|
|
||||||||||
Deferred income taxes
|
—
|
|
|
23.1
|
|
|
61.1
|
|
|
(13.4
|
)
|
|
70.8
|
|
|
0.7
|
|
|
22.9
|
|
|
60.9
|
|
|
(8.1
|
)
|
|
76.4
|
|
||||||||||
Other long-term liabilities
|
38.5
|
|
|
12.9
|
|
|
8.9
|
|
|
—
|
|
|
60.3
|
|
|
24.1
|
|
|
14.3
|
|
|
8.9
|
|
|
—
|
|
|
47.3
|
|
||||||||||
Total Liabilities
|
1,606.4
|
|
|
217.8
|
|
|
517.3
|
|
|
(1,246.7
|
)
|
|
1,094.8
|
|
|
1,558.5
|
|
|
221.1
|
|
|
560.6
|
|
|
(1,219.7
|
)
|
|
1,120.5
|
|
||||||||||
Total Hillenbrand Shareholders’ Equity
|
781.2
|
|
|
2,320.2
|
|
|
694.9
|
|
|
(3,015.1
|
)
|
|
781.2
|
|
|
731.1
|
|
|
2,295.8
|
|
|
621.2
|
|
|
(2,917.0
|
)
|
|
731.1
|
|
||||||||||
Noncontrolling interests
|
—
|
|
|
—
|
|
|
14.6
|
|
|
—
|
|
|
14.6
|
|
|
—
|
|
|
—
|
|
|
13.0
|
|
|
—
|
|
|
13.0
|
|
||||||||||
Total Equity
|
781.2
|
|
|
2,320.2
|
|
|
709.5
|
|
|
(3,015.1
|
)
|
|
795.8
|
|
|
731.1
|
|
|
2,295.8
|
|
|
634.2
|
|
|
(2,917.0
|
)
|
|
744.1
|
|
||||||||||
Total Liabilities and Equity
|
$
|
2,387.6
|
|
|
$
|
2,538.0
|
|
|
$
|
1,226.8
|
|
|
$
|
(4,261.8
|
)
|
|
$
|
1,890.6
|
|
|
$
|
2,289.6
|
|
|
$
|
2,516.9
|
|
|
$
|
1,194.8
|
|
|
$
|
(4,136.7
|
)
|
|
$
|
1,864.6
|
|
|
Nine Months Ended June 30, 2019
|
|
Nine Months Ended June 30, 2018
|
||||||||||||||||||||||||||||||||||||
|
Parent
|
|
Guarantors
|
|
Non-
Guarantors
|
|
Eliminations
|
|
Consolidated
|
|
Parent
|
|
Guarantors
|
|
Non-
Guarantors
|
|
Eliminations
|
|
Consolidated
|
||||||||||||||||||||
Net cash provided by (used in)
operating activities
|
$
|
18.2
|
|
|
$
|
105.2
|
|
|
$
|
92.6
|
|
|
$
|
(106.4
|
)
|
|
$
|
109.6
|
|
|
$
|
186.0
|
|
|
$
|
126.6
|
|
|
$
|
(32.0
|
)
|
|
$
|
(124.3
|
)
|
|
$
|
156.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Capital expenditures
|
(0.7
|
)
|
|
(5.6
|
)
|
|
(6.3
|
)
|
|
—
|
|
|
(12.6
|
)
|
|
(1.5
|
)
|
|
(7.5
|
)
|
|
(7.3
|
)
|
|
—
|
|
|
(16.3
|
)
|
||||||||||
Acquisition of business, net of cash
acquired
|
—
|
|
|
—
|
|
|
(25.9
|
)
|
|
—
|
|
|
(25.9
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
Other, net
|
—
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
0.4
|
|
|
—
|
|
|
0.4
|
|
||||||||||
Net cash used in investing activities
|
(0.7
|
)
|
|
(5.5
|
)
|
|
(32.2
|
)
|
|
—
|
|
|
(38.4
|
)
|
|
(1.5
|
)
|
|
(7.5
|
)
|
|
(6.9
|
)
|
|
—
|
|
|
(15.9
|
)
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Repayments on term loan
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(148.5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(148.5
|
)
|
||||||||||
Proceeds from revolving credit facilities,
net of financing costs
|
215.0
|
|
|
—
|
|
|
234.7
|
|
|
—
|
|
|
449.7
|
|
|
530.6
|
|
|
—
|
|
|
415.9
|
|
|
—
|
|
|
946.5
|
|
||||||||||
Repayments on revolving credit facilities
|
(192.3
|
)
|
|
—
|
|
|
(277.8
|
)
|
|
—
|
|
|
(470.1
|
)
|
|
(472.9
|
)
|
|
—
|
|
|
(364.3
|
)
|
|
—
|
|
|
(837.2
|
)
|
||||||||||
Payment of dividends - intercompany
|
—
|
|
|
(100.0
|
)
|
|
(6.4
|
)
|
|
106.4
|
|
|
—
|
|
|
—
|
|
|
(118.3
|
)
|
|
(6.0
|
)
|
|
124.3
|
|
|
—
|
|
||||||||||
Payment of dividends on common stock
|
(39.4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(39.4
|
)
|
|
(39.1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(39.1
|
)
|
||||||||||
Repurchases of common stock
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(60.6
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(60.6
|
)
|
||||||||||
Proceeds from stock option exercises and
other
|
2.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2.4
|
|
|
10.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10.3
|
|
||||||||||
Payments for employee taxes on net
settlement equity awards
|
(4.2
|
)
|
|
|
|
|
|
|
|
|
|
|
(4.2
|
)
|
|
(4.1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4.1
|
)
|
||||||||||
Other, net
|
—
|
|
|
—
|
|
|
(0.9
|
)
|
|
—
|
|
|
(0.9
|
)
|
|
—
|
|
|
—
|
|
|
(1.8
|
)
|
|
—
|
|
|
(1.8
|
)
|
||||||||||
Net cash (used in) provided by
financing activities
|
(18.5
|
)
|
|
(100.0
|
)
|
|
(50.4
|
)
|
|
106.4
|
|
|
(62.5
|
)
|
|
(184.3
|
)
|
|
(118.3
|
)
|
|
43.8
|
|
|
124.3
|
|
|
(134.5
|
)
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Effect of exchange rates on cash and
cash equivalents
|
—
|
|
|
—
|
|
|
(0.2
|
)
|
|
—
|
|
|
(0.2
|
)
|
|
—
|
|
|
—
|
|
|
(1.0
|
)
|
|
—
|
|
|
(1.0
|
)
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Net cash flow
|
(1.0
|
)
|
|
(0.3
|
)
|
|
9.8
|
|
|
—
|
|
|
8.5
|
|
|
0.2
|
|
|
0.8
|
|
|
3.9
|
|
|
—
|
|
|
4.9
|
|
||||||||||
Cash, cash equivalents and restricted cash at
beginning of period
|
1.1
|
|
|
5.8
|
|
|
49.6
|
|
|
—
|
|
|
56.5
|
|
|
0.1
|
|
|
5.0
|
|
|
61.6
|
|
|
—
|
|
|
66.7
|
|
||||||||||
Cash, cash equivalents and restricted cash at
end of period
|
$
|
0.1
|
|
|
$
|
5.5
|
|
|
$
|
59.4
|
|
|
$
|
—
|
|
|
$
|
65.0
|
|
|
$
|
0.3
|
|
|
$
|
5.8
|
|
|
$
|
65.5
|
|
|
$
|
—
|
|
|
$
|
71.6
|
|
18.
|
Restructuring
|
|
Three Months Ended June 30, 2019
|
|
Three Months Ended June 30, 2018
|
||||||||||||||||||||
|
Cost of goods sold
|
|
Operating expenses
|
|
Total
|
|
Cost of goods sold
|
|
Operating expenses
|
|
Total
|
||||||||||||
Process Equipment Group
|
$
|
0.2
|
|
|
$
|
0.4
|
|
|
$
|
0.6
|
|
|
$
|
0.3
|
|
|
$
|
0.2
|
|
|
$
|
0.5
|
|
Batesville
|
0.3
|
|
|
1.4
|
|
|
1.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Corporate
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.1
|
)
|
|
(0.1
|
)
|
||||||
Total
|
$
|
0.5
|
|
|
$
|
1.8
|
|
|
$
|
2.3
|
|
|
$
|
0.3
|
|
|
$
|
0.1
|
|
|
$
|
0.4
|
|
|
Nine Months Ended June 30, 2019
|
|
Nine Months Ended June 30, 2018
|
||||||||||||||||||||
|
Cost of goods sold
|
|
Operating expenses
|
|
Total
|
|
Cost of goods sold
|
|
Operating expenses
|
|
Total
|
||||||||||||
Process Equipment Group
|
$
|
0.6
|
|
|
$
|
0.5
|
|
|
$
|
1.1
|
|
|
$
|
0.2
|
|
|
$
|
0.4
|
|
|
$
|
0.6
|
|
Batesville
|
0.5
|
|
|
1.9
|
|
|
2.4
|
|
|
—
|
|
|
0.2
|
|
|
0.2
|
|
||||||
Corporate
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.5
|
|
|
0.5
|
|
||||||
Total
|
$
|
1.1
|
|
|
$
|
2.4
|
|
|
$
|
3.5
|
|
|
$
|
0.2
|
|
|
$
|
1.1
|
|
|
$
|
1.3
|
|
19.
|
Subsequent Events
|
intend
|
|
believe
|
|
plan
|
|
expect
|
|
may
|
|
goal
|
|
would
|
become
|
|
pursue
|
|
estimate
|
|
will
|
|
forecast
|
|
continue
|
|
could
|
target
|
|
encourage
|
|
promise
|
|
improve
|
|
progress
|
|
potential
|
|
should
|
|
Three Months Ended June 30,
|
|
Nine Months Ended June 30,
|
||||||||||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||||||||
|
Amount
|
|
% of Net
Revenue
|
|
Amount
|
|
% of Net
Revenue
|
|
Amount
|
|
% of Net
Revenue
|
|
Amount
|
|
% of Net
Revenue
|
||||||||
Net revenue
|
$
|
446.6
|
|
|
100.0
|
|
$
|
446.0
|
|
|
100.0
|
|
$
|
1,321.5
|
|
|
100.0
|
|
$
|
1,295.4
|
|
|
100.0
|
Gross profit
|
148.4
|
|
|
33.2
|
|
163.5
|
|
|
36.7
|
|
456.3
|
|
|
34.5
|
|
478.3
|
|
|
36.9
|
||||
Operating expenses
|
90.8
|
|
|
20.3
|
|
98.3
|
|
|
22.0
|
|
275.2
|
|
|
20.8
|
|
285.7
|
|
|
22.1
|
||||
Amortization expense
|
8.6
|
|
|
1.9
|
|
7.6
|
|
|
1.7
|
|
25.0
|
|
|
1.9
|
|
22.7
|
|
|
1.8
|
||||
Impairment charge
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
63.4
|
|
|
4.9
|
||||
Interest expense
|
5.2
|
|
|
1.2
|
|
5.5
|
|
|
1.2
|
|
16.1
|
|
|
1.2
|
|
17.8
|
|
|
1.4
|
||||
Other (expense) income, net
|
(0.5
|
)
|
|
0.1
|
|
(0.7
|
)
|
|
0.2
|
|
0.1
|
|
|
—
|
|
(2.2
|
)
|
|
0.2
|
||||
Income taxes
|
11.6
|
|
|
2.6
|
|
15.2
|
|
|
3.4
|
|
39.9
|
|
|
3.0
|
|
52.5
|
|
|
4.1
|
||||
Net income (1)
|
30.4
|
|
|
6.8
|
|
35.9
|
|
|
8.0
|
|
96.7
|
|
|
7.3
|
|
32.1
|
|
|
2.5
|
|
•
|
The Process Equipment Group’s net revenue decreased $1.4 (0.4%). Foreign currency impact decreased net revenue by 4%, and was partially offset by pricing and the acquisition of BM&M.
|
•
|
Batesville’s net revenue increased $2.0 (2%), primarily due to the impact of a prior year multi-year contract renewal with a key customer that included an upfront incentive.
|
•
|
The Process Equipment Group’s gross profit decreased $11.6 (10%), primarily due to cost inflation, unfavorable mix due to an increased proportion of lower margin, large systems sales in plastics, and a supplier quality issue, partially offset by pricing and productivity improvements and the acquisition of BM&M. Foreign currency impact decreased gross profit by 3%. Gross profit margin decreased 350 basis points to 34.2% in 2019, primarily due to cost inflation, an increased proportion of lower margin, large systems sales in plastics, and a supplier quality issue, partially offset by pricing and productivity improvements.
|
•
|
Batesville’s gross profit decreased $3.5 (8%) and gross profit margin decreased 320 basis points to 30.8%. The decrease in gross profit and gross profit margin was primarily due to inflation in commodities and wages, partially offset by the impact of the key customer contract renewal in the prior year and productivity initiatives.
|
|
Three Months Ended June 30,
|
||||||
|
2019
|
|
2018
|
||||
Business acquisition, development, and integration costs
|
$
|
3.8
|
|
|
$
|
0.1
|
|
Restructuring and restructuring related charges
|
1.9
|
|
|
0.2
|
|
•
|
The Process Equipment Group’s net revenue increased $43.4 (5%), primarily due to higher volume (6%), pricing, and the acquisition of BM&M. Foreign currency impact decreased net revenue by 4%.
|
•
|
Batesville’s net revenue decreased $17.3 (4%), primarily due to a decrease in volume (5%), driven primarily by a decrease in burial sales resulting from what we estimate to be a decrease in North American burials driven by lower estimated deaths and the increased rate at which families opted for cremation.
|
•
|
The Process Equipment Group’s gross profit decreased $5.2 (2%), primarily due to unfavorable mix due to an increased proportion of lower margin, large systems sales in plastics and cost inflation, partially offset by higher volume, pricing and productivity improvements, and the acquisition of BM&M. Foreign currency impact decreased gross profit by 3%. Gross profit margin decreased 230 basis points to 35.1% in 2019, primarily due to an increased proportion of lower margin, large systems sales in plastics and cost inflation, partially offset by pricing and productivity improvements.
|
•
|
Batesville’s gross profit decreased $16.8 (11%) and gross profit margin decreased 270 basis points to 33.2%. The decrease in gross profit and gross profit margin was primarily due to inflation in commodities and wages, a decrease in volume and restructuring and restructuring related charges, partially offset by productivity initiatives.
|
|
Nine Months Ended June 30,
|
||||||
|
2019
|
|
2018
|
||||
Business acquisition, development, and integration costs
|
$
|
4.9
|
|
|
$
|
2.6
|
|
Restructuring and restructuring related charges
|
2.5
|
|
|
1.4
|
|
|
Three Months Ended June 30,
|
|
Nine Months Ended June 30,
|
||||||||||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||||||||
|
Amount
|
|
% of Net
Revenue
|
|
Amount
|
|
% of Net
Revenue
|
|
Amount
|
|
% of Net
Revenue
|
|
Amount
|
|
% of Net
Revenue
|
||||||||
Net revenue
|
$
|
315.3
|
|
|
100.0
|
|
$
|
316.7
|
|
|
100.0
|
|
$
|
924.2
|
|
|
100.0
|
|
$
|
880.8
|
|
|
100.0
|
Gross profit
|
107.9
|
|
|
34.2
|
|
119.5
|
|
|
37.7
|
|
324.4
|
|
|
35.1
|
|
329.6
|
|
|
37.4
|
||||
Operating expenses
|
56.5
|
|
|
17.9
|
|
64.7
|
|
|
20.4
|
|
179.9
|
|
|
19.5
|
|
184.3
|
|
|
20.9
|
||||
Amortization expense
|
8.6
|
|
|
2.7
|
|
7.6
|
|
|
2.4
|
|
25.0
|
|
|
2.7
|
|
22.7
|
|
|
2.6
|
||||
Impairment charge
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
63.4
|
|
|
7.2
|
|
Three Months Ended June 30,
|
|
Nine Months Ended June 30,
|
||||||||||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||||||||
|
Amount
|
|
% of Net Revenue
|
|
Amount
|
|
% of Net Revenue
|
|
Amount
|
|
% of Net Revenue
|
|
Amount
|
|
% of Net Revenue
|
||||||||
Net revenue
|
$
|
131.3
|
|
|
100.0
|
|
$
|
129.3
|
|
|
100.0
|
|
$
|
397.3
|
|
|
100.0
|
|
$
|
414.6
|
|
|
100.0
|
Gross profit
|
40.5
|
|
|
30.8
|
|
44.0
|
|
|
34.0
|
|
131.9
|
|
|
33.2
|
|
148.7
|
|
|
35.9
|
||||
Operating expenses
|
19.4
|
|
|
14.8
|
|
20.8
|
|
|
16.1
|
|
57.8
|
|
|
14.5
|
|
64.1
|
|
|
15.5
|
|
Three Months Ended June 30,
|
|
Nine Months Ended June 30,
|
||||||||||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||||||||
|
Amount
|
|
% of Net Revenue
|
|
Amount
|
|
% of Net Revenue
|
|
Amount
|
|
% of Net Revenue
|
|
Amount
|
|
% of Net Revenue
|
||||||||
Core operating expenses
|
$
|
11.1
|
|
|
2.5
|
|
$
|
12.7
|
|
|
2.8
|
|
$
|
33.0
|
|
|
2.5
|
|
$
|
33.9
|
|
|
2.6
|
Business acquisition, development, and integration costs
|
3.7
|
|
|
0.8
|
|
0.1
|
|
|
0.1
|
|
4.4
|
|
|
0.3
|
|
2.6
|
|
|
0.2
|
||||
Restructuring and restructuring related charges
|
0.1
|
|
|
—
|
|
—
|
|
|
—
|
|
0.1
|
|
|
—
|
|
0.8
|
|
|
0.1
|
||||
Operating expenses
|
$
|
14.9
|
|
|
3.3
|
|
$
|
12.8
|
|
|
2.9
|
|
$
|
37.5
|
|
|
2.8
|
|
$
|
37.3
|
|
|
2.9
|
|
Three Months Ended June 30,
|
|
Nine Months Ended June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Consolidated net income
|
$
|
31.7
|
|
|
$
|
36.2
|
|
|
$
|
100.2
|
|
|
$
|
34.0
|
|
Interest income
|
(0.3
|
)
|
|
(0.3
|
)
|
|
(0.7
|
)
|
|
(1.1
|
)
|
||||
Interest expense
|
5.2
|
|
|
5.5
|
|
|
16.1
|
|
|
17.8
|
|
||||
Income tax expense
|
11.6
|
|
|
15.2
|
|
|
39.9
|
|
|
52.5
|
|
||||
Depreciation and amortization
|
15.1
|
|
|
14.2
|
|
|
44.3
|
|
|
42.0
|
|
||||
EBITDA
|
$
|
63.3
|
|
|
$
|
70.8
|
|
|
$
|
199.8
|
|
|
$
|
145.2
|
|
Impairment charge
|
—
|
|
|
—
|
|
|
—
|
|
|
63.4
|
|
||||
Business acquisition, development, and integration
|
3.8
|
|
|
0.1
|
|
|
4.9
|
|
|
2.6
|
|
||||
Restructuring and restructuring related
|
2.4
|
|
|
0.5
|
|
|
3.6
|
|
|
1.7
|
|
||||
Inventory step-up
|
—
|
|
|
—
|
|
|
0.2
|
|
|
—
|
|
||||
Adjusted EBITDA
|
$
|
69.5
|
|
|
$
|
71.4
|
|
|
$
|
208.5
|
|
|
$
|
212.9
|
|
|
Nine Months Ended June 30,
|
||||||
(in millions)
|
2019
|
|
2018
|
||||
Cash flows provided by (used in)
|
|
|
|
|
|
||
Operating activities
|
$
|
109.6
|
|
|
$
|
156.3
|
|
Investing activities
|
(38.4
|
)
|
|
(15.9
|
)
|
||
Financing activities
|
(62.5
|
)
|
|
(134.5
|
)
|
||
Effect of exchange rates on cash and cash equivalents
|
(0.2
|
)
|
|
(1.0
|
)
|
||
Increase in cash and cash equivalents
|
$
|
8.5
|
|
|
$
|
4.9
|
|
|
|
HILLENBRAND, INC.
|
|
|
|
|
Date: July 31, 2019
|
BY:
|
/s/ Kristina A. Cerniglia
|
|
|
Kristina A. Cerniglia
|
|
|
Senior Vice President and Chief Financial Officer
|
|
|
|
Date: July 31, 2019
|
|
/s/ Timothy C. Ryan
|
|
|
Timothy C. Ryan
|
|
|
Vice President, Controller, and Chief Accounting Officer
|
/s/ Joe A. Raver
|
|
Joe A. Raver
|
|
President and Chief Executive Officer
|
|
|
/s/ Kristina A. Cerniglia
|
|
Kristina A. Cerniglia
|
|
Senior Vice President and Chief Financial Officer
|
|
|
/s/ Joe A. Raver
|
|
Joe A. Raver
|
|
President and Chief Executive Officer
|
|
July 31, 2019
|
|
|
/s/ Kristina A. Cerniglia
|
|
Kristina A. Cerniglia
|
|
Senior Vice President and Chief Financial Officer
|
|
July 31, 2019
|
|
|