HILLENBRAND INC (HI) filed Quarterly Report for the period ended 2010-03-31.
Hillenbrand Inc has a market cap of $1.46 billion; its shares were traded at around $23.52 with a P/E ratio of 13.7 and P/S ratio of 2.3. The dividend yield of Hillenbrand Inc stocks is 3.2%.HI is in the portfolios of Diamond Hill Capital of Diamond Hill Capital Management Inc, Jim Simons of Renaissance Technologies LLC, Robert Olstein of Olstein Financial Alert Fund, Richard Aster Jr of Meridian Fund, Chuck Royce of Royce& Associates.
This is the annual revenues and earnings per share of HI over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of HI.
Highlight of Business Operations:
On April 1, 2010, we completed our acquisition of K-Tron International, Inc. (K-Tron) for an aggregate purchase price of $435.2 million ($369.0 million, net of $66.2 million of cash and cash equivalents acquired from K-Tron) and more fully described in our Note 15 to our consolidated financial statements included in Part I, Item I of this Form 10-Q. This transaction was financed with $375.0 million of borrowings under our $400 million revolving credit facility and cash on hand on the closing date. See 12 Month Outlook included within Liquidity and Capital Resources for further discussion regarding the financing of the K-Tron acquisition.
Cost of Goods Sold Our cost of goods sold decreased $3.6 million, or 3.7%, including a decrease of $1.5 million attributable to lower burial unit volume. In our manufacturing operations, we experienced commodity cost decreases of $3.6 million over the same period last year, most notably on steel. We anticipate that period-over-period steel prices during the second half of the fiscal year will be relatively flat. These manufacturing cost savings were partially offset by increased manufacturing costs associated with personnel and benefit costs of $1.9 million. Aggregate cost increases of $0.3 million were attributable to a number of other categories across our manufacturing operations.
Cost of Goods Sold Our cost of goods sold decreased $10.8 million, or 5.6%, including a decrease of $3.4 million attributable to lower burial unit volume. In our manufacturing operations, we experienced commodity cost decreases of $7.8 million over the same period last year, most notably on steel. As discussed earlier, we anticipate that period-over-period steel prices over the second half of the fiscal year will be relatively flat. These manufacturing cost savings were partially offset by increased manufacturing costs associated with personnel and benefit costs of $2.6 million. Aggregate manufacturing cost increases of $0.4 million were attributable to a number of other categories across our manufacturing operations.
In our distribution operations, we experienced cost increases of $0.4 million for fuel. During the same period, we experienced cost reductions related to lower outside carrier utilization of $0.9 million, lower personnel and benefit costs of $1.0 million, and aggregate costs reductions of $0.6 million attributable to a number of other categories across our distribution operations. Finally, a significant self-insurance claim occurred during the same period last year, thereby causing 2010 costs to be lower by $0.5 million.
On April 1, 2010, we completed the acquisition of K-Tron, and we expect the acquisition of K-Tron to increase our net cash flow generated by operating activities. Over the past three calendar years, K-Tron has generated net cash flows from operations in the range of $26.7 million to $31.6 million annually. However, any increase during the remainder of fiscal 2010 will be offset by the payment of non-recurring business acquisition costs associated with the transaction, which are expected to be approximately $10.0 million to $12.0 million. We also will make aggregate payments of approximately $7.0 million to fund pre-acquisition transaction costs incurred by K-Tron not yet paid at the date of acquisition.
On April 1, 2010, we completed the acquisition of K-Tron, whereby we utilized a significant portion of the borrowing capacity under our $400 million revolving credit facility. Our borrowing capacity under the $400 million revolving credit facility was reduced from $393.3 million to $18.3 million in funding the acquisition. Since our separation from Hill-Rom on April 1, 2008, we have generated on average quarterly cash flows from operations of approximately $30 million. Although it is not possible to predict our future cash flows from operations with certainty, we believe that these trends will continue (before considering the items discussed under 12 Month Outlook above) and that our cash generated from operations and existing borrowing capacity on our revolving credit facilities will be sufficient to fund our existing working capital needs and capital expenditure requirements.