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STRATEGIC INITIATIVES
Amidst the backdrop of a turbulent 2009 economic environment and a cautiously optimistic outlook, Hill-Rom will update operational strategies and associated initiatives around its aggressive program of improved execution, targeted investment, revenue acceleration and margin expansion. At its second Investor Conference since becoming an independent "pure-play" medical technology company, Soderberg, along with Gregory N. Miller, senior vice president and CFO, and other Hill-Rom business unit and functional leaders, will provide presentations focusing on market opportunities, key strategic initiatives and resulting growth and profitability expectations.
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"We look forward to the opportunity to discuss the progress we have made to date as well as to highlight our expectations for future performance. With our primary focus to create shareholder value through continued execution of previously identified strategies and initiatives, we believe Hill-Rom has an exciting future ahead," said Soderberg. "However, we also recognize that the current challenges in the economic environment have the potential to impact our customers. Accordingly, our financial outlook for 2010 has been framed cautiously."
Soderberg added that, "We continue to believe that our strategic direction and operational initiatives will yield organic revenue and operating income (EBIT) growth over the 2009 - 2012 time frames that are consistent with the multi-year goals set out previously. Our financial targets remain to grow normalized organic revenue by an average of 6 - 8 percent, increase gross margins to 47 - 49 percent and growing earnings per share (EPS) at least twice the rate of revenue."
He added, "We will continue to prioritize research and development, sales channel enhancements, and margin expansion initiatives. Further, we continuously evaluate our business and product portfolio in order to fill gaps, or shed or restructure underperforming operations. These actions will allow us to better serve our customers, associates and shareholders."
COMPANY REAFFIRMS FISCAL YEAR 2010 FINANCIAL GUIDANCE
The Company will reaffirm fiscal year 2010 financial guidance during the conference. Hill-Rom's consolidated revenue guidance range for fiscal 2010 is expected to be $1.445 to $1.500 billion, which represents a 4 to 8 percent increase versus prior year. Our operating income is expected to be in the range of $124 to $142 million, an increase of 7 percent to 23 percent over comparable 2009 adjusted results. Our effective tax rate estimate for 2010 without discrete tax items is expected to approximate 36 percent versus our comparable 2009 adjusted tax rate of 34.9 percent, also excluding discrete tax benefits, primarily due to expiration of the R&D tax credit. GAAP earnings per fully diluted share from continuing operations are expected to be in the range of $1.20 to $1.36, compared to the 2009 GAAP loss per share of $6.47. These expected 2010 earnings per share represent an increase of 2 to 15 percent versus our adjusted earnings results in 2009 of $1.18. Financial guidance in tabular format is included in the attached schedule.
WEBCAST INFORMATION
The Company will webcast the entire conference beginning at 9 a.m. EST on Tuesday, December 15, 2009. The webcast will be available at http://ir.hill-rom.com/eventdetail.cfm?eventid=74958 or http://ir.hill-rom.com/events.cfm and will be archived on the company's website until December 14, 2010, for those who are unable to listen to the live webcast.
ABOUT HILL-ROM HOLDINGS, INC.
Hill-Rom is a leading worldwide manufacturer and provider of medical technologies and related services for the health care industry, including patient support systems, safe mobility and handling solutions, non-invasive therapeutic products for a variety of acute and chronic medical conditions, medical equipment rentals, and information technology solutions. Hill-Rom's comprehensive product and service offerings are used by health care providers across the health care continuum and around the world in hospitals, extended care facilities and home care settings to enhance the safety and quality of patient care.
Hill-Rom...enhancing outcomes for patients and their caregivers.
www.hill-rom.com
DISCLOSURE REGARDING FORWARD LOOKING STATEMENTS
Certain statements in this press release contain forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, regarding the Company's future plans, objectives, beliefs, expectations, representations and projections. The Company has tried, wherever possible, to identify these forward-looking statements using words such as "intend," "anticipate," "believe," "plan," "encourage," "expect," "may," "goal," "become," "pursue," "estimate," "strategy," "will," "projection," "forecast," "continue," "accelerate," "promise," "increase," "higher," "lower," "reduce," "improve," "expand," "progress," "potential" or the negative of those terms or other variations of them or by comparable terminology. The absence of such terms, however, does not mean that the statement is not forward-looking. It is important to note that forward-looking statements are not guarantees of future performance, and the Company's actual results could differ materially from those set forth in any forward-looking statements. Factors that could cause actual results to differ from forward-looking statements include but are not limited to: the Company's dependence on its relationships with several large group purchasing organizations, whether the Company's new products are successful in the marketplace, impacts of health care reform, compliance with federal health care programs, collections of accounts receivable, compliance with FDA regulations, antitrust litigation, potential exposure to product liability or other claims, failure of the Company's announced strategic initiatives and restructuring and realignment activities to achieve expected growth, future restructuring or realignment activities, efficiencies or cost reductions, adverse consequences resulting from the recent spin-off of the funeral service business, 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, increased costs or unavailability of raw materials, labor disruptions, the ability to retain executive officers and other key personnel, liquidity of auction rate securities 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 the Company's Annual Report on Form 10-K for the period ended September 30, 2009, which was previously filed with the Securities and Exchange Commission. The Company assumes no obligation to update or revise any forward-looking statements.
NON-GAAP FINANCIAL DISCLOSURES
Hill-Rom provides earnings per share on an adjusted basis from continuing operations because the company's management believes that the presentation provides useful information to investors. Among other things, it may assist investors in evaluating the company's operations period over period, which is also the basis on which it generally is most reasonable to forecast results. This measure may exclude such items as strategic developments (including restructurings and product line changes) and significant litigation. Special items may be highly variable, difficult to predict, and of a size that sometimes has substantial impact on the company's reported operations for a period. Often, prospective quantification of them is not reasonable. Management uses these measures internally for planning, forecasting and evaluating the performance of the business, including allocating resources and evaluating results relative to employee performance compensation targets. 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.
-- Status of multi-year strategic initiatives -- Business unit, research and development and financial updates -- Smart technologies that interface with electronic medical records (EMR)
SOURCE Hill-Rom Holdings, Inc.
