Hillenbrand reports positive second quarter financial results
Batesville, IN – Hillenbrand, Inc. reported financial results for the second quarter of fiscal 2021, which ended March 31.
“We delivered solid results in the second quarter as our teams continued to execute well in a strong demand environment,” said Joe Raver, president and chief executive officer of Hillenbrand. “Despite higher inflation and transportation costs, our teams took successful proactive steps to offset these higher costs while ramping up growth investments to capture increasing demand we are seeing across our industrial businesses, which is reflected in our record backlog. In addition to the strong operating performance, we made further progress on streamlining our portfolio by closing on the sale of ABEL, and we remain on track with our plan to divest TerraSource Global. Our priorities are focused on driving growth in our large platform businesses and capturing the full benefits of the Milacron integration. We remain well positioned to deliver strong performance in the second half of 2021 with the strength of our balance sheet and backlog.”
Revenue of $722 million increased 11 percent compared to the prior year, driven by strong growth within the Molding Technology Solutions segment and COVID-19 related demand at Batesville. Excluding the impact of foreign currency exchange, total revenue increased 8 percent. On a pro forma basis, revenue increased 18 percent year over year, which excludes the Red Valve and ABEL businesses in the Advanced Process Solutions segment and the Cimcool business in the Molding Technology Solutions segment.
Net income of $78 million, or $1.03 per share, increased from a loss per share of $0.99 in the prior year, due to a gain on the sale of ABEL, prior year impairment, and inventory step-up charges related to the acquisition of Milacron in 2020 that did not repeat. Adjusted net income of $75 million resulted in adjusted EPS of $0.98, an increase of $0.28, or 40 percent, primarily driven by strong growth in Molding Technology Solutions and Batesville. The adjusted effective tax rate for the quarter was 27.1 percent, a decrease of 100 basis points from the prior year, due to a change in the geographic mix of income year over year.
Adjusted EBITDA of $134 million increased 21 percent, driven by growth in Molding Technology Solutions and Batesville. An adjusted EBITDA margin of 18.6 percent expanded 160 basis points compared to a year ago.