Hill-Rom Holdings, Inc. (HRC) has reported a 54.26 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $34.40 million, or $0.51 a share in the quarter, compared with $22.30 million, or $0.33 a share for the same period last year. On an adjusted basis, earnings per share were at $0.88 for the quarter compared with $0.71 in the same period last year.

Revenue during the quarter grew 7.32 percent to $678.90 million from $632.60 million in the previous year period. Gross margin for the quarter contracted 30 basis points over the previous year period to 47.78 percent. Total expenses were 90.63 percent of quarterly revenues, down from 92.13 percent for the same period last year. This has led to an improvement of 150 basis points in operating margin to 9.37 percent.

Operating income for the quarter was $63.60 million, compared with $49.80 million in the previous year period.

"We delivered strong financial results across our diversified portfolio that exceeded expectations, and we are raising our full-year guidance," said John J. Greisch, president and chief executive officer of Hill-Rom. "Momentum in our core business, improving international growth trends, value from new product introductions, and the recent acquisition of Mortara Instrument were significant contributors to our second quarter results. We continue to successfully execute on key strategic priorities while enhancing outcomes for patients and caregivers, and generating attractive returns for our shareholders."

For the third-quarter 2017, Hill-Rom Holdings, Inc. expects revenue to grow at by percent. On an adjusted basis, the company projects diluted earnings per share to be in the range of $0.89 to $0.91.

For financial year 2017, Hill-Rom Holdings, Inc. expects revenue to grow in the range of 3.50 percent to 4 percent. The company projects diluted earnings per share to be in the range of $3.82 to $3.88 on adjusted basis.

The company has spent $346.90 million cash to meet investing activities during the first six months as against cash outgo of $43.60 million in the last year period. It has incurred net capital expenditure of $36.70 million on net basis during the first six months, down 20.22 percent or $9.30 million from year ago period.

Cash flow from financing activities was $211.70 million for the first six months as against cash outgo of $79.30 million in the last year period.

Cash and cash equivalents stood at $218.70 million as on Mar. 31, 2017, up 38.77 percent or $61.10 million from $157.60 million on Mar. 31, 2016.

Working capital declines

Hill-Rom Holdings, Inc. has witnessed a decline in the working capital over the last year. It stood at $453.20 million as at Mar. 31, 2017, down 7.92 percent or $39 million from $492.20 million on Mar. 31, 2016. Current ratio was at 1.73 as on Mar. 31, 2017, down from 2 on Mar. 31, 2016.

Cash conversion cycle (CCC) has decreased to 65 days for the quarter from 104 days for the last year period. Days sales outstanding went down to 64 days for the quarter compared with 67 days for the same period last year.

Days inventory outstanding has decreased to 34 days for the quarter compared with 70 days for the previous year period. At the same time, days payable outstanding was almost stable at 32 days for the quarter, when compared with the previous year period.