UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 6, 2009
HILLENBRAND, INC.
 (Exact name of registrant as specified in its charter)

Indiana	 	001-33794	 	26-1342272	
(State or other Jurisdiction of Incorporation)	 	(Commission File Number)	 	(IRS Employer Identification No.)	
 	 	 	
One Batesville Boulevard
Batesville, Indiana	 	47006	
(Address of Principal Executive Offices)	 	(Zip Code)	
Registrant’s telephone number, including area code: (812) 934-7500

Not Applicable	
(Former name or former address if changed since last report.)	
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

Item 2.02. Results of Operations and Financial Condition
On February 6, 2009, Hillenbrand, Inc. (the “Company”) announced its earnings for the first quarter ended December 31, 2008. This announcement is more fully described in the press release filed as Exhibit 99.1 to this Current Report on Form 8-K. The contents of such Exhibit are incorporated herein by reference. The Company will sponsor a conference call and webcast for the investing public at 8:00 a.m. EDT Friday, February 6, 2009 and the webcast will be accessible on the Company’s website at http://www.HillenbrandInc.com .  
Item 9.01. Financial Statements and Exhibits.
 (d) Exhibits.  

Exhibit Number	 	  Description	
 	 	 	
99.1	 	Press Release dated February 6, 2009 issued by the Company.	
1

 
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 	HILLENBRAND, INC.	
 		
DATE: February 6, 2009	BY:  	/S/ Cynthia L. Lucchese	
 	 	Cynthia L. Lucchese
Senior Vice President and
Chief Financial Officer	
 		
DATE: February 6, 2009	BY:  	/S/ Theodore S. Haddad, Jr.	
 	 	Theodore S. Haddad, Jr.
Vice President, Controller and
Chief Accounting Officer	
2

 
EXHIBIT INDEX

 	 	 	
Exhibit Number	 	  Description	
 	 	 	
99.1	 	Press Release dated February 6, 2009 issued by the Company.	
3

Exhibit 99.1

Hillenbrand Reports First-Quarter 2009 Results

 	•	 	Earnings per share and net income increase more than 10 percent year-over-year.	
 		
 	•	 	Net revenues of $166.5 million are $3.6 million higher than in first quarter of fiscal 2008.	
 		
 	•	 	Gross margin improves by 80 basis points over the prior year.	
BATESVILLE, Ind., Feb. 6, 2009, Hillenbrand, Inc. (NYSE:HI) – /PR Newswire-First Call/ Hillenbrand, Inc. reported net income of $26.5 million, or $0.43 per fully diluted earnings per share, for the first quarter of 2009, which ended Dec. 31, 2008. This was an increase of 10.4 percent over the same period in 2007, with net income of $24 million, or $0.39 per fully diluted earnings per share. Excluding the effect of antitrust litigation and separation costs, adjusted net income increased 5.1 percent in the first quarter of 2009 over the first quarter of 2008.
Net revenues for the quarter were $166.5 million, an increase of $3.6 million (2.2 percent) over results in the same period of the prior year. Improved average revenue per unit was partially offset by the effect of lower volumes resulting from a decline in deaths and increased cremations, and unfavorable foreign exchange rates.
Gross margin for the quarter of 41.9 percent improved by 80 basis points over the prior year, resulting largely from increased revenue and manufacturing productivity improvements, partially offset by lower volume and higher prices for carbon steel.
“As fuel and commodity costs seem to be returning to more normal levels, our gross margin percentages have followed suit,” said Kenneth A. Camp, president and chief executive officer of Hillenbrand, Inc. “However, we remain in a very turbulent economic period, and we must be prepared for further volatility in our primary input costs.”
First-quarter core operating expenses increased by $3.5 million (12.8 percent) over the prior year, excluding one-time separation costs. The increase is largely related to actions Hillenbrand took in 2008 to support its public company operations and investments in capabilities to execute its strategic initiatives.
“We’re off to a respectable start in our first full year as a stand-alone public company, posting solid and steady results in these uncertain economic times, and we remain cautiously optimistic about our 2009 performance,” Camp said.

 

Outlook for Fiscal Year 2009
The company is reaffirming its guidance for fiscal year 2009.
Hillenbrand, Inc.
(amounts in millions, except per share data)
 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Fiscal year ending September 30	 	
 	 	 	 	 	 	FY 09 Range	 	
 	 	FY 08	 	 	Low	 	 	High	 	
Net revenues	 	$	678	 	 	$	695	 	 	$	710	 	
Income before taxes	 	$	153	 	 	$	149	 	 	$	157	 	
Tax rate	 	 	39.2	%	 	 	36.0	%	 	 	35.0	%	
Net income	 	$	93	 	 	$	95	 	 	$	102	 	
Average diluted shares outstanding	 	 	63	 	 	 	62	 	 	 	62	 	
Diluted net income per share	 	$	1.49	 	 	$	1.54	 	 	$	1.66	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Excluding certain non-operating costs (anti-trust litigation and separation*)	 	 	 	 	 	 	 	 	 	 	 	 	
Net income	 	$	108	 	 	$	107	 	 	$	114	 	
Diluted net income per share	 	$	1.73	 	 	$	1.73	 	 	$	1.85	 	
 	 	 	
*	 	Non-GAAP Financial Disclosures and Reconciliations for First Quarter 2009	
 		
 	 	While Hillenbrand, Inc. reports financial results in accordance with U.S. 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, Inc. 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.	
Hillenbrand, Inc.
(amounts in millions)
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended	 	 	Three Months Ended	 	 	Fiscal Year 2009	 	
 	 	December 31, 2007	 	 	December 31, 2008	 	 	Guidance Midpoint	 	
 	 	 	 	 	Income	 	 	 	 	 	 	 	 	Income	 	 	 	 	 	 	 	 	Income	 	 	 	 	
 	 	Pre-Tax	 	 	Taxes	 	 	Post-Tax	 	 	Pre-Tax	 	 	Taxes	 	 	Post-Tax	 	 	Pre-Tax	 	 	Taxes	 	 	Post-Tax	 	
GAAP income	 	$	38.0	 	 	$	14.0	 	 	$	24.0	 	 	$	41.4	 	 	$	14.9	 	 	$	26.5	 	 	$	153.1	 	 	$	54.4	 	 	$	98.7	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Certain non-operating costs:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Antitrust litigation	 	 	1.0	 	 	 	0.4	 	 	 	0.6	 	 	 	0.6	 	 	 	0.2	 	 	 	0.4	 	 	 	18.5	 	 	 	6.6	 	 	 	11.9	 	
Separation	 	 	1.2	 	 	 	0.1	 	 	 	1.1	 	 	 	0.1	 	 	 	0.0	 	 	 	0.1	 	 	 	0.3	 	 	 	0.1	 	 	 	0.2	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Adjusted income	 	$	40.2	 	 	$	14.5	 	 	$	25.7	 	 	$	42.1	 	 	$	15.1	 	 	$	27.0	 	 	$	171.9	 	 	$	61.1	 	 	$	110.8	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Additional assumptions and discussion will be provided during the company’s conference call to be held later today.

 

Conference Call and Webcast
The company will sponsor a conference call and webcast for the investing public at 8 a.m. EDT Friday, Feb. 6, 2009. During the event, management will discuss the results for the first quarter of fiscal year 2009, which ended Dec. 31, 2008. The webcast is available at http://ir.hillenbrandinc.com and will be archived on the company’s Web site through Feb. 6, 2010, for those unable to listen to the live webcast.
Participants may listen to the conference call by dialing 1-877-857-6144 (1-719-325-4802 for international callers). A replay of the call will be available through midnight Friday, Feb. 20, 2009, at 1-888-203-1112 (1-719-457-0820 for international callers). Please use the confirmation code 7415505.
Hillenbrand, Inc.
Consolidated Statements of Income (Unaudited)
(amounts in millions, except per share data)
 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended	 	
 	 	December 31,	 	
 	 	2008	 	 	2007	 	
 	 	 	 	 	 	 	 	 	
Net revenues	 	$	166.5	 	 	$	162.9	 	
Cost of goods sold	 	 	96.7	 	 	 	96.0	 	
 	 	 	 	 	 	 	
Gross profit	 	 	69.8	 	 	 	66.9	 	
Operating expenses (including separation costs of $0.1 million and $1.2 million for the three-month periods ended Dec. 31, 2008, and Dec. 31, 2007, respectively)	 	 	30.9	 	 	 	28.5	 	
 	 	 	 	 	 	 	
Operating profit	 	 	38.9	 	 	 	38.4	 	
Interest expense	 	 	(1.1	)	 	 	—	 	
Investment income and other	 	 	3.6	 	 	 	(0.4	)	
 	 	 	 	 	 	 	
Income before income taxes	 	 	41.4	 	 	 	38.0	 	
Income tax expense	 	 	14.9	 	 	 	14.0	 	
 	 	 	 	 	 	 	
Net income	 	$	26.5	 	 	$	24.0	 	

Income per common share-basic and diluted	 	$	0.43	 	 	$	0.39	 	
Dividends per common share*	 	$	.185	 	 	$	—	 	
 	 	 	 	 	 	 	 	 	
Average common shares outstanding — basic and diluted	 	 	62.0	 	 	 	62.5	 	
 	 	 	
*	 	Hillenbrand, Inc.’s first dividend as a stand-alone public company was paid June 30, 2008. As a result, there are no dividends reported for the three months ended December 31, 2007.	

 

Hillenbrand, Inc.
Consolidated Balance Sheets (Unaudited)
(amounts in millions)
 	 	 	 	 	 	 	 	 	
 	 	December 31,	 	 	September 30,	 	
 	 	2008	 	 	2008	 	
ASSETS	 	 	 	 	 	 	 	 	
Current Assets	 	 	 	 	 	 	 	 	
Cash and cash equivalents	 	$	20.3	 	 	$	14.7	 	
Trade accounts receivable, net	 	 	96.5	 	 	 	88.4	 	
Inventories	 	 	50.8	 	 	 	48.6	 	
Deferred income taxes	 	 	17.3	 	 	 	22.4	 	
Other current assets	 	 	8.3	 	 	 	7.5	 	
 	 	 	 	 	 	 	
Total current assets	 	 	193.2	 	 	 	181.6	 	
Property, net	 	 	89.0	 	 	 	90.8	 	
Intangible assets, net	 	 	18.8	 	 	 	19.7	 	
Auction rate securities and related Put right	 	 	48.3	 	 	 	51.1	 	
Note receivable from Forethought Financial Group, Inc.	 	 	133.4	 	 	 	130.4	 	
Investments	 	 	23.9	 	 	 	25.2	 	
Deferred income taxes	 	 	21.5	 	 	 	19.7	 	
Other assets	 	 	25.0	 	 	 	26.8	 	
 	 	 	 	 	 	 	
Total Assets	 	$	553.1	 	 	$	545.3	 	

LIABILITIES	 	 	 	 	 	 	 	 	
Current Liabilities	 	 	 	 	 	 	 	 	
Revolving credit facility	 	$	100.0	 	 	$	100.0	 	
Trade accounts payable	 	 	10.8	 	 	 	15.8	 	
Accrued compensation	 	 	19.7	 	 	 	24.6	 	
Accrued customer rebates	 	 	21.5	 	 	 	20.4	 	
Other current liabilities	 	 	27.0	 	 	 	20.8	 	
Due to Hill-Rom Holdings, Inc.	 	 	4.5	 	 	 	4.4	 	
 	 	 	 	 	 	 	
Total current liabilities	 	 	183.5	 	 	 	186.0	 	
Deferred compensation, long-term portion	 	 	7.1	 	 	 	7.0	 	
Accrued pension and postretirement healthcare, long-term portion	 	 	34.1	 	 	 	33.5	 	
Other long-term liabilities	 	 	31.5	 	 	 	30.4	 	
 	 	 	 	 	 	 	
Total Liabilities	 	 	256.2	 	 	 	256.9	 	
 	 	 	 	 	 	 	
Commitments and contingencies	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	
SHAREHOLDERS’ EQUITY	 	 	 	 	 	 	 	 	
Common stock, no par value, 199.0 shares authorized; 62.8 and 62.4 shares issued, 62.2 and 62.1 share outstanding at December 31, 2008 and September 30, 2008, respectively	 	 	—	 	 	 	—	 	
Additional paid-in-capital	 	 	288.3	 	 	 	286.4	 	
Retained earnings	 	 	38.1	 	 	 	23.0	 	
Treasury stock, at cost; 0.6 and 0.3 shares at December 31, 2008 and September 30, 2008, respectively	 	 	(12.5	)	 	 	(6.2	)	
Accumulated other comprehensive loss	 	 	(17.0	)	 	 	(14.8	)	
 	 	 	 	 	 	 	
Total Shareholders’ Equity	 	 	296.9	 	 	 	288.4	 	

Total Liabilities and Shareholders’ Equity	 	$	553.1	 	 	$	545.3	 	

   

 

Hillenbrand, Inc.
Consolidated Statements of Cash Flows (Unaudited)
(amounts in millions)
 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended
December 31,	 	
 	 	2008	 	 	2007	 	
Operating Activities:	 	 	 	 	 	 	 	 	
Net income	 	$	26.5	 	 	$	24.0	 	
Adjustments to reconcile net income to net cash flows from operating activities:	 	 	 	 	 	 	 	 	
Depreciation and amortization	 	 	4.5	 	 	 	4.5	 	
Provision for deferred income taxes	 	 	0.2	 	 	 	2.0	 	
Net (gain) on disposal of property	 	 	(0.1	)	 	 	—	 	
Net loss on auction rate securities and related Put right	 	 	0.2	 	 	 	—	 	
Interest income on note receivable from Forethought Financial Group, Inc.	 	 	(3.0	)	 	 	—	 	
Stock based compensation	 	 	1.9	 	 	 	—	 	
Trade accounts receivable	 	 	(9.0	)	 	 	(2.5	)	
Inventories	 	 	(2.9	)	 	 	(1.2	)	
Other current assets	 	 	1.6	 	 	 	(1.5	)	
Trade accounts payable	 	 	(4.9	)	 	 	(0.7	)	
Accrued expenses and other current liabilities	 	 	(5.2	)	 	 	(1.1	)	
Income taxes prepaid or payable	 	 	9.7	 	 	 	(1.9	)	
Amounts due to/from Hill-Rom Holdings, Inc.	 	 	0.1	 	 	 	—	 	
Defined benefit plan funding	 	 	(0.4	)	 	 	(0.3	)	
Change in deferred compensation	 	 	0.1	 	 	 	(0.1	)	
Other, net	 	 	4.0	 	 	 	1.5	 	
 	 	 	 	 	 	 	
Net cash provided by operating activities	 	 	23.3	 	 	 	22.7	 	

Investing Activities:	 	 	 	 	 	 	 	 	
Capital expenditures	 	 	(2.1	)	 	 	(2.3	)	
Proceeds on disposal of property	 	 	0.1	 	 	 	0.1	 	
Proceeds from sale or redemption of auction rate securities	 	 	1.4	 	 	 	—	 	
Capital contributions to affiliates	 	 	(0.5	)	 	 	—	 	
Return of investment capital from affiliates	 	 	1.9	 	 	 	—	 	
 	 	 	 	 	 	 	
Net cash provided by (used in) investing activities	 	 	0.8	 	 	 	(2.2	)	

Financing Activities:	 	 	 	 	 	 	 	 	
Proceeds from revolving credit facility	 	 	10.0	 	 	 	—	 	
Repayments on revolving credit facility	 	 	(10.0	)	 	 	—	 	
Payment of dividends on common stock	 	 	(11.4	)	 	 	—	 	
Purchase of common stock	 	 	(6.3	)	 	 	—	 	
Net change in advances to former parent	 	 	—	 	 	 	(20.2	)	
 	 	 	 	 	 	 	
Net cash used in financing activities	 	 	(17.7	)	 	 	(20.2	)	

Effect of exchange rate changes on cash and cash equivalents	 	 	(0.8	)	 	 	(0.4	)	

Net cash flows	 	 	5.6	 	 	 	(0.1	)	
 	 	 	 	 	 	 	 	 	
Cash and cash equivalents:	 	 	 	 	 	 	 	 	
At beginning of period	 	 	14.7	 	 	 	11.9	 	
 	 	 	 	 	 	 	
At end of period	 	$	20.3	 	 	$	11.8	 	

   

 

Disclosure Regarding Forward-Looking Statements
Throughout this announcement and the related conference call, we make or may 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 that we believe are reasonable, but by their very nature they are subject to a wide range of risks.
Words that could indicate we’re making forward-looking statements include the following:
 	 	 	 	 	 	 	 	 	 	 	
intend	 	believe	 	plan	 	expect	 	may	 	goal	
become	 	pursue	 	estimate	 	will	 	forecast	 	continue	
targeted	 	increase	 	higher/lower	 	improve	 	progress	 	potential	
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 those described in the forward-looking statements. These factors include, but are not limited to: the company’s ongoing antitrust litigation; the company’s dependence on its relationships with several large national providers; continued fluctuations in mortality rates and increased cremations; ongoing involvement in claims, lawsuits, and governmental proceedings related to operations; failure of the company’s announced strategic initiatives to achieve expected growth, efficiencies, or cost reductions; failure of the company to execute its acquisition and business alliance strategy through the consummation and successful integration of acquisitions or entry into joint ventures or other business alliances; competition from nontraditional sources in the funeral services business; volatility of the company’s investment portfolio; increased costs or unavailability of raw materials; labor disruptions; the ability to retain executive officers and other key personnel; 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 the company’s Annual Report on Form 10-K for the year ended Sept. 30, 2008, filed Dec. 9, 2008. The company assumes no obligation to update or revise any forward-looking information.
About Hillenbrand, Inc.
Hillenbrand, Inc. ( www.HillenbrandInc.com ) is the holding company for Batesville Casket Company, a leader in the North American death care industry through the sale of funeral services products, including burial caskets, cremation caskets, containers and urns, selection room display fixturing, and other personalization and memorialization products. HI-INC-F
CONTACT
Investor Relations for Hillenbrand, Inc.
Mark R. Lanning, Vice President of Investor Relations and Treasurer
Phone: 812-934-7256
E-mail: mrlanning@hillenbrand.com
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