- Third-quarter revenue increased 30% over the same period in 2009 with the addition of K-Tron's financial results.
- EPS adjusted for non-recurring items increased 10% to $0.45.
Hillenbrand reported third quarter 2010 revenue of $205.8 million, a $47.1 million (30 percent) increase over the prior year, due primarily to the inclusion of revenue generated by K-Tron International, which Hillenbrand acquired April 1, 2010. Business acquisition costs and the impact of purchase accounting were the primary drivers of a $12.1 million (48 percent) decrease in net income from the prior year and a $0.19 (46 percent) decrease in earnings per share, from $0.41 to $0.22.
Excluding antitrust-related legal costs ($0.9 million), non-recurring acquisition accounting effects ($8.6 million) and business acquisition costs ($5.3 million), adjusted earnings per share of $0.45 represented an increase of 10 percent.
The company's gross profit margin for the quarter decreased from 41.6 percent to 36.7 percent, primarily as the result of the one-time effects of fair value adjustments on K-Tron's inventories as part of the acquisition.
Investment income doubled to $3.8 million compared with the third quarter of 2009, primarily resulting from gains on limited partnership investments.
Cash flow from operations was $28 million in the third quarter, a decrease of $5.3 million (16 percent). This decrease was due to the payment of business acquisition costs and K-Tron's pre-transaction liabilities, along with the timing of disbursements for accounts payable. This was partially offset by the timing of payments for income taxes and the addition of K-Tron's core operating cash flow.
"Batesville Casket Company continues to be the stable foundation of our financial performance," said Kenneth A. Camp, Hillenbrand's president and chief executive officer. "Additionally, we're pleased with K-Tron's initial results and are cautiously optimistic about the signs for improvement in the global economy."