Hill-Rom (HRC)

Mary Kay Ladone Senior Vice President, Corporate Development, Strategy and Investor Relations
John Groetelaars President and Chief Executive Officer
Barbara Bodem Chief Financial Officer
Rick Wise Stifel
David Lewis Morgan Stanley
Michael Polark Baird
Matt Taylor UBS
Matt Mishan KeyBanc
Call transcript
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Good morning and welcome to Hill-Rom’s Fiscal First Quarter 2021 Earnings Conference Call. [Operator Instructions] As a reminder, this call is being recorded by Hill-Rom and is copyrighted material. It cannot be recorded, rebroadcast or transmitted without Hill-Rom’s written consent.

If you have any objections, please disconnect at this time. I would now like to turn the call over to Ms. Vice Development, Senior Relations. and Ladone, Kay President, Strategy Corporate Investor Mary Ms. you begin. Ladone, may

Mary Kay Ladone

and us Good first for thanks morning joining earnings call. quarter for conference XXXX fiscal our

Officer Groetelaars, Joining are Chief President of Hill-Rom and Financial me Officer. and John Chief today Bodem, Barbara Executive

forward-looking the COVID-XX started, for those assumptions includes and Please results that any cause that we risk other this described, get related to and reminding to results filings including that today’s to to SEC factors actual from actual release me factors let Before more are pandemic. differ by subject press differ begin you presentation statements uncertainties, materially risks, cause impact refer concerning materially. to that our could information could

financial GAAP Reconciliations non-GAAP included be In morning. measures issued are today’s measures and our financial addition, between earnings release in this call, used. non-GAAP will on

like Finally, and page can press morning, on Relations issued of this the I that which the be would our Hill-Rom’s to posted presentation also in These addition Investor materials release financial supplemental guidance. highlights have to we accessed mention website. a XXXX performance

with let that turn now call to So John. me over the introduction,

John Groetelaars

exceeded $X.XX both our share product X% priorities. products. on XX% our results demand we year a grew our expanding This Thanks, per good and and QX critical morning, strong care significant everybody. of fiscal against building metrics. earnings year. guidance the the prior And increased adjusted and of result, and revenue momentum, recovery for our year. strategic QX. earnings pleased diluted and We Mary started to full announce versus portfolio many Today, guidance financial We we are Kay transformation, diversity strong execution both accelerating underscores for as are raising our the for revenue

our and exceeded but accelerated margin possible and accomplishments issued the the team executed entire be significant optimization inorganic in could of the million, global We morning, continue program be rising other members and basis XX% product customers healthcare both with we of impressed Hill-Rom more how New growth than the expansion our business We platforms press the on strategic of broader organic an operating our advanced this and and release of are none our investments. occasion increase $XXX several XXX revenue to achieved dedication listed these the team to around proud world. community. commitment of I without support and to points.

Barb some me results more detail. quarterly perspective Now, turning for our let financial over before call on to provide the

of guidance, as the purchases to of quarter. point, purchases. million $X.XX sequential our the across reflects growth compared Relative QX, COVID faster benefit accounted three or upside in to Hill-Rom per showing fourth about estimate as of the one-time improvement share is At COVID portfolio half cases quarter. late performance revenue better-than-expected for all the began progresses about select of and stable businesses, more than COVID diluted peaking than $XX the one-time we or this X% along For the anticipated, recovery with XX%

beds on by constant increased increased several offset products. Front XX% equipment and normalization. and Geographically, and revenue was higher double-digit lower given benefit rentals of The the U.S. be ongoing revenue on of revenue X% exceeded like Line QX the International demand news a measured quarter, remainder as COVID Asia-Pacific and volume for bed surgical basis path in some see the can to at Europe, as second to with more hospitalizations. a growth continue currency underlying the toward of expect We pace, Care fiscal capital our across expectations attributed upside the Canada. recovery we business declining although about good the

customers and their engagement our in encouraged as strong local the and are these markets strengthen governments the we pandemic. needs supporting by partnership while during execution We with

We ongoing dividends, paying growth strategy delivering with are targeted a for China double-digit our go-to-market and that commercial quarters. are last in recovery seven also investments six pleased strategic of the

by the turn business constant at me to performance currency let Now, rates. briefly review

revenue one-time PSS COVID other the driven across X% of First, by Systems mentioned in and bed the ICU QX, XX% Patient reflects international which increased performance market of and Support med-surg includes earlier. Europe growth markets. expansion strong benefit systems

continues monitoring, as in successfully to setting We care down standardization CMS as U.S. including products, project business, were quarter primary prior Vision for blood This Voalte communications Physician to our to continue and recovery expected, the Line the hospitals As also workflow thermometry. but be growth with rebound obtained proposition for from pressure U.S. bed prioritize are purchases anticipate coverage smart In of well care first one access year, and driven physical strong to we screenings. annual secured value healthcare wins, clinical several an chain positioned very solutions differentiated and office improve continues Care, national the resume. nation’s including with be medical Care office-based largest of increased with compared diabetic care here. revenues beds modestly believe our device sequential we a we to to mobile by agreement competitive visits physician our and and and pharmacy In retinopathy Nurse exams integration Hill-Rom applications connected validated efficiencies. recent assessment across and revenue care X-year a tools, Call, ecosystem by double-digit systems. Front continue X%. patient to in vision Performance

for U.S. the to Surgical QX, and lower international strong some to Lastly, in due pandemic. related of revenue the revenue in with expected, the EMEA reflecting access in X% projects equipment completion limitations Solutions growth surgical increased as large

single-digit of to Hill-Rom drive mid of has our that line build we of deliver to As top the demonstrated this last transformation double-digit a global I the accelerated bottom benefit the positioned and work healthcare mentioned growth. meaningful done well Hill-Rom range value have quarter, portfolio environment. strong is allow will to from pandemic long aspirations and uniquely line

and priorities, momentum while value product strategic expansion, our creating on execute emerging new development including with business to activities. market continue We our

into pandemic, this know, to technology decreased and deterioration the sensing is you monitoring will can physicians week proposition, on lead and X provides related more wearable acts are rates ICU information of bio-sensing last cardiac when currently vast is cardiac data devices. of to actionable that acquired for This ecosystem, strong Smart+ support that also By trust and we we data the decreased as clinical connected is arrhythmias. Carnation body capabilities situation challenges differentiated, times. of hub executing the and posed need am monitoring EarlySense. digital contact-free to patient BardyDiagnostics. That ongoing Despite specific I from technology The fiscal yield differentiation cost integrated for clinically of our digital identify Novitas during As more category into by continued bed summary, we Monday, resiliency continue team physician advancing an connectivity care monitoring a to the Centrella than reimbursement help communications. clinical admissions. we is definitive clinical an update digital provide month, we our to the ambulatory a to costs our technologies. the CAM the support effectiveness customers’ our provide is announced and pleased continuous intent In comfort these the health announced solutions designed of Earlier why to patient said, widen Bardy Ambulatory that by by and leading actively to provider connected a the monitoring patch, our clear year we improved compliance, Hill-Rom’s with and enables how for acquire platform in expanding unprecedented available. the bed promote is identify and streamline ever. our evidence, our survival, Monitor, the gap technology demonstrates and transforming care start that or a vision this value and vital innovator There is workflow category for

let over call Now, turn me to Barb. the

Barbara Bodem

I before guidance. our John through results turning walk financial will our Thanks, everyone. morning, good to briefly updated and

the improvements. connected year. innovation million critical million and in for higher products. R&D $XXX operational and XX.X% care gross growth basis currency This revenue year. million, by by margin to to last spending accelerated X.X%. favorable X%. compared increased Adjusted a and of As demand on and expanded XXX of mentioned, driven in $XXX grew expected X% versus million trends basis of was SG&A drive generated highlighting points worldwide businesses prior increased three Adjusted $XX to QX our commitment growth the was revenue portfolio Revenue solutions. All care mix XX% result expanded product of than our $XXX recovery was constant advance

last implemented spending discretionary and savings We optimization transformation, planned continue program our business growth managing to platforms from IT fund and realizing our strategic while year.

due result, for XXX to prior $XX other this is was $X.XX into geographic mix profits. than our share, of the from prior benefit $X.XX to recoveries adjusted Interest expenses of quarter expectation totaling an the period As diluted our share rate per XX% of the diluted translates tax first the or XX.X%. increase the points original for and per in than to a million operating margin per This the share. higher slightly insurance which earnings improved million. adjusted XX.X%, Overall, totaled of $X due adjusted fiscal $X.XX diluted non-operating approximately is The quarter lower basis year.

increase from prior operations compared was $XX flow than $XXX the for $X by $XX prior advanced driven cash higher higher year, million a to global flow our in Free Now, million, by to Capital continued year, IT turning driven net cash XX% the million, million. to XX% investment transformation. flow. primarily QX expenditures totaled income. Cash the

remains net and of to $XXX balance basis. ratio dividends We QX, million and our debt-to-EBITDA the In in through December debt and Our cash ended was with the returned repurchases. quarter we share strong. sheet very X.Xx X.Xx at a on million end or position shareholders $XX financial

let remarks Now, updated me my guidance. with our conclude

updated not start by saying the me in the acquisition have we our BardyDiagnostics of revenue impact included guidance. Let

in However, scenarios. provided under today deal-related the guidance sufficient XXXX earnings absorb per to dilution fiscal flexibility provides share various ranges

full of between X% we on Care rates, from Support X% a of towards revenue pre-COVID from We more basis to compares with improvement range. points. to level. of X% a currency Line the reported segment, And continue in approximately to expect operating that we decline This From range. includes benefit in and levels X%, underlying our for be expect Systems recovery our and to to prior basis, said, with growth with revenue X%, than adjusted at the points X% expect constant set continues. the By margin XXX business between previous So decline a XX.X%. currency finally, and flat expect approximately basis XXX revenue we XXXX, a year, of margin X% an revenue margin foreign margin expect revenue to X% X% now X% guidance which XX.X% profitability gross now guidance and approximately Surgical increase record of to fiscal Front perspective, the to Solutions to to operating now gross grow recovery businesses in as approximately of we Patient

X% and to to cash and From to current of $XX revenue. excluding $XXX $XXX an and sales flow the year, the flow we expense, mid-teens period. both perspective, We to our operating adjusted which expect into to are per interest, $X.XX expecting for prior rate roughly of million, expect earnings expect share $XX now approach compared increase compared our This earnings $X.XX of the share COVID cash and impacts of from to of million $XX SG&A diluted now growth per XX%. an diluted other to XX% million after a $X.XX increase We guidance of million approximately year prior guidance. tax of range XX% one-time share of to translates R&D the reflecting per represent previous million a includes

million, flow We resulting million. of of $XXX $XXX to cash to expect capital million continue $XXX approximately free expenditures in

And basis For to expect revenue second diluted the we on special will items our $X.XX adjusted X% $X.XX a share. I call now, back fiscal John. increase quarter, to to per of X% turn over and to reported earnings, excluding

John Groetelaars

normalization. the impact optimistic near-term, the expect the we we continued while on continue global closing, healthcare path toward remain pandemic In to a execution the landscape and ahead in to and Barb. Thanks, recovery our year about

diversity XXXX. the portfolio, our for growth are fiscal as we this navigate throughout With positioned well transition of we

mission. driving significant profitable deliver patients, remain unlocking and Over as the growth, our our sustainable we to strategic caregivers achieving and shareholders objectives value and we for committed on long-term,

I up call now So the would to open Q&A. like for


Instructions] First question go you. Thank with Rick Stifel. from comes [Operator ahead. Wise Please

Rick Wise

John. morning, Good Good morning, Barb.

but just this emphasized Let with, we you two that start as could – coming there current products general think improvement? highlighted, for – performance. about think, you well? talk me help How drivers or in better-than-expected XX you is of of give you is beat quickly it execution? the us question, about And a growth? it environmentally you fully the fiscal two your new Does does much. in products? recovery how past you help have business more part how Thank do I accelerated To If that on better guidance, business maybe understand starters? the pipeline a year. that in so big drive the geographies impact us beat the just color into all us is the it that things, of dialed focusing various picture things help new what Is the sort one, understand To little what is John, there? as just extent, extent, could And that, those

John Groetelaars

and performance a and QX. It’s between accelerated And question. very Rick good that’s split all Thanks, businesses and for really across Well, with expected faster thanks than was across in recovery geographies. at broad-based the all we are news. Yes. really the we pleased pace it

So our portfolio. across better entire was even about broad-based it knowing how feel that

So beat of driver that versus was consensus. about the our half

pull COVID from other a been it that couple of demand about It’s was forward, some say to an talking came benefit. have quarters. last of important we The that but rather half the for expansion it wasn’t

quarter. and of in their and to exactly in have We prior capacity ICU and what expecting particularly anticipating been markets Italy international are expand seeing the France we out Europe, that’s

$XXX nature particularly in second quarter. that the over the products benefit, new beat, With helps ICU of in of the respect hope for grew the question, characterize part your and growth expansion of acceleration recovery Europe broad-based some and out of rapid the the COVID quarter on the driver new to XX% more of So products million category.

that to that expectations engine its our products. fiscal of very year new on and performance So, pleased we throughout last about in growth pandemic. ‘XX saw the this ability deliver We beat

is pipeline launches year. Our chock of full this new

XX those revenue we of We typical takes by A will launches, QX. Rick, happen have recall, great to reach about number time X new in peak launches of X it if years. you expected. our the And

X XX this of had I the this So very what launches year. to We we are we positions year. We into well coil new forward for product the we years. really kind future that building out continued the company so out leap is planned because springing product think have us had And performance last many the as over into year. look

Rick Wise

question, – That’s us of just your is Was revenue questions OEM so retired that? of behind did housekeeping great. with But this one that be term know I might surgical some business. just And non-core the it. all because that I there the there quick quarter impact an exit international complete quarter you’ve some think use about or this now? in much. Thanks

John Groetelaars

Yes. Thanks, Rick.

We non-core. have of core, the definition retired

we side, in on the number. normally million we would surgical quarter, of requested partner who buy-in have call this additional of to an that the was revenue due inventory. And what our OEM $XX in However, really did non-core

fulfilled was that quarter. the So in first

Rick Wise

Thank you very much.


with from Please comes Lewis your state question Stanley. question. Next David Morgan

David Lewis

I off the good do thanks are mean sort growth cart growth is EM think horse? we confidence Hi, a what in before you thinking it’s heading is me. the now do elevated investments of question. the growth we sort to that think enthusiasm of are a morning do enthusiasm can now XX% definitive taking into seeing I XXXX. of X% you here things there couple think for John, your new say for the plus here and you lot just of you of is guess or vectors, investments safe about with those are product be and putting and playing those traction, for

John Groetelaars

Great question, David.

we And COVID the is new even line math this than in growth. I actually think if ‘XX EPS EPS similar XX% seeing our growth. if compare the do year, what to similar year guide, we ‘XX single-digit we out and line, top growth last higher XX% are break and mid-single-digit and mid impact top

growth question, very your period about products the time to throughout underlying underlying those good the outlook there. delivering of think vectors are of markets this growth-oriented in feel new emerging I all acquisitions and So and

course, a we Of last know, as know, investors strong of our year. had all QX as you really

cycle comp that top that So strength we’re transparency QX going reported in quarters. constant to I demonstrate have that performance. a then line And ongoing will the past basis, to couple of we and on a in think currency

David Lewis

just the ones for quick in Can people a sense And some mean you I’ll volatility that there in is then in still give assumptions like of with Bardy, remains the of guidance early next this more John for the together. Bardy. made given the Bardy? this steps just And John your referenced this both EPS third risk-adjusted. guide you, for confident you, you with Okay. historical from just ask perspective strong Thanks me, sounds on What guidance confidence people two the to quarter in year forward are outcome just I give regardless what much. your are so it business. them Barb you

John Groetelaars

Thanks, will answer part turn over first then the to the Barbara of come to back. I Dave. I and call will

Barbara Bodem

And and as million, Good of improvement how the guidance of more the is the importantly, QX. from two in John our from you’re worth what line, onetime coming for you coming – as $XXX achievable heard with part looking year, of that we’ve you is it’s roughly coming performance If about, but about morning, revenue signaled the the that this correctly, for is see into plays revenue the play guide COVID, the from overall And the momentum for about on balanced about the question. and of majority you think improvement. full which the of will year underlying business improvement as QX, top bottom we recovery. think we the think improvement for million that is into $XXX Thanks year. the remainder the stronger-than-expected I the momentum the and our And David. talked also guide as

we’ll is FX drive top we there for we FX I’d full on XXX the for thing basis have benefit other explicit full anticipate The of about And the more from been line, revenue impact that the year. on about the points and year. have

very line quarters recognizing year, perspective, an of go. So bottom really first what and of business does the further are bottom to that that favorability EPS should we us development reflects of is that our a ahead half trajectory QX. reflecting three QX is From have a reflecting potential dilution at really and offset have we’re we see we’re comps in it performance from the we What that in any strength you And it looking $X.XX, we would the think about challenging floor. improvement line as any to reserves deals. in QX of that

So into looked there very we’re uncertainty the early it that and as this, we’ve related we’re that and where But of consideration in balanced the and and as trajectory at takes achievable is year believe regarding view. balanced we uncertainty to an pandemic but looked have it achievable, it we much going. also is this at is overall the

John Groetelaars

deal. our comments, that said cover question scenarios we’re in as your our continuing can to the expected on contemplates guidance the Bardy that David, absorb dilution situation various then, we’ve or And was the closely. And reimbursement prepared opening to monitor from our Bardy, comments,

other guidance. the for light think time different it increase this into our some going it’s growth really strength business into on that [indiscernible] you and I our of going guidance various speculative period industry stakeholders. the call. meet good productive any in the can as And take likely don’t pending a am will further to about business just comments to reason, this comments a for guidance floor in given with think place that sensitive full the I and too like really the of those have limit our our to and of discussions much. Bardy outcome. and our and our feel would this increased It’s I Barb as in and given of So party underlying of mentioned, say year, rate of performance read we that of ability to strength QX very scenarios

David Lewis

you so Great. much. Thank


with Michael a Polark on line question. is question. with Please your Baird the state

Michael Polark

little you frame Would could in number us I called about total morning. Care name, if of color, was number term. there you is sales not, to the interested things you maybe just Voalte, of interested be hearing plus sort out contract and put beds, color the size, good you maybe seems Communications. of over most X-year Hey, curious there. any and perhaps and would what right, you together the that And of as about customer? a platform, Wondering the more in standardization then bit Nurse X-year who give Call name the customer project why value you a in? facilities, Middleware won If process

John Groetelaars

in the to – positioned enterprise Yes, solution that Happy is Hill-Rom Unfortunately, name largest able top one of mention I can’t three to was scale that. the really customer, full to to systems us great but hospital that what the it question, of of end-to-end And like the largest win. and Mike. the one answer a made well was solution bring the ability our country.

talking our acquisition came do and then device that medical say I’m the or Nurse from acquisition to about end-to-end, of So Voalte. middleware mobile when I integration, Call, to came also Voalte the communications that EXL which

that of scale go trust to I this part communications single having and of Hill-Rom contract. was X- up organization haven’t a the that – suite the that one company what is believe So that it difference. ever year communication of full confirm, as deal largest has go And that full type our could that deployment period, a of really made combination those and didn’t is done over the there. have I digital an back chance – would comments

as years. future next backlog we over of the big a expect to provide And and win. was revenue recognize a X it orders nice we So revenue it

Michael Polark

I to have Appreciate ask Barb, one. that. And

know in let’s forward the but I earn-out understand that forward, I it’s the with move sounds you you assume So, arrangement. let’s transaction, very structure current an is assume much move TBD, like there

Sometimes when right infrastructure those the into plugging isn’t are existing in away. product commercial frameworks its acquirer put place, the

execute your Allyn Bardy is product the Let the physician Welch it to sales terms the year against current acquiree office force? base the case What earn-out. taking in wait X of Is or expectation or X and is and the earn-out that the when deal product your X? sell would let sales that be that to on closes, day if able unfold force the

John Groetelaars


Our going-in proposition we that organization complement then there, Allyn its in and invest it add lead channels Welch primary Mike, was to in and separately to the to have sales to and it. own that care

So approach. our was that

is Going approach. our in, that

Michael Polark

Thank you much. very

John Groetelaars

I mid-single-digit to And that any line our just and again, question. acquisitions on focus shareholder double-digit our to long-term are our on going overwhelming core But scenarios. scenario for various growth. in growth to related manage in we’ll related is top or thanks the value. is commitment And EPS drive things reiterate accordingly to that in want business,


Taylor UBS on Please is question. your Matt state And with question. with a the line

Matt Taylor

Hi, made good comments one for wanted I ICU ongoing about taking question. ask just the Thanks morning. bed to expansion. the that on demand for you

it QX longer opportunities being last than more sooner coming was there that – year, being like capacity talked where the But term. you and lot a its ICU you about even expected. to back mid of Going sounds one-time

you strong as start whether continuing and those trend? and book the or see square comments So good hoping kind of one-time help more demand there and looks should to whether I new we order discuss view was your are this stronger could a of you

John Groetelaars

and indicate probably that lumpy, a be to of back quarter, It’s Yes. Thanks, the past come onetime. in so at quarter we it in in going going quarter what the that after a expansion tried would in and like ICU come then was to feel for Matt, Yes, heavy for off come see And it’s question. and times that. right? in a and to might a might I then hot kind come

– our for it incorporated expansion category it’s into backlog. in category. that of and performance so outlook performance expect out ICU current in in we out do our strong expect do guidance, see our the It’s of strong So We another bed another requirements. Europe Europe we

So the quarters hard that little seeing it’s timing happen. this when a predict couple couple is will is going we’re term, to a be in now not because beyond bit to a where And say, row it. of visibility of a longer there quarters,

a over point view, a broader believe. period, broader that in or from aperture definitely there, growth time However, frame of multiyear is we opportunity

have call we was it to out data hesitant were year. saw last – the of that And results. we the confidence the us we in give middle real. We up then now And enough are showing it it in to back seeing

We’ll QX that at this will, when into heads-up give and a point, see at it we investors lumpy. to So – times, come great it we’re in we to see seeing coming try But incorporate that our the guidance. see just have we We from in a year. enough out visibility clear little bit of it it And QX. in half attenuating back QX. obviously, the yet again don’t call in then it to

Matt Taylor

specifically just like comment in period. Care better things had sounds you your Can It talk than that and in stress? growth businesses. Comms, you that a And Okay, for pandemic on given okay. I on can you gone was the continued installation-based expected hoping outlook about installation-related the the have for question the that

John Groetelaars


we we coming discussed pleased the the So, in. about orders just that that and deal very are are

the quarter, revenue access access into However, in quarter. relatively during It’s gradually but our limited. as last the from hospitals last And view, Care current to – of point Comm improves recovering. even flat period recognized and was a is very

revenue complete been So has our stalled. installations recognize to ability and

wane continues continued hospitalization to pandemic the drop. However, and has to

year and back back to about of the pre-COVID half We’re come the very levels. optimistic that seeing business

Matt Taylor

I there. it good. leave so very will you much. Thank Okay,

John Groetelaars

Matt. Thanks,


Matt KeyBanc with state Mishan the line your question. is on Please with question.

Matt Mishan

Good Hey, morning, thanks. guys.

mentioned you chain you increased growth for and more pharmacy Just a to primary strategy a talk care can RetinaVue, the that? screening, first signed national physician channel with versus you a that I bit on think that deal the little about

John Groetelaars

better provide premise for Matt. is Yes. access Thanks whole The question, for of the to the technology patients.

annual you ophthalmologist the helps So retail see of in the it or the office exam. sales channel. And to both us their this access of or, a location need hand to achieve improvement primary pharmacy in putting have an care the a case, married the physician’s don’t channel technology with up promise either retinal in the

of exciting ramp in a we partner for about So forward of the partnership. very country. the is, half year. this activity I’m the one chains are phases an we’re pleased in to and unable opportunity largest the looking but that the early of who And in And us. announce to of second out is it’s rolling that the that

Matt Mishan

Okay, to hate excellent. or just and there realize comment that back reimbursement in you mentioned Barbie, I from the appeal? is And final I mechanisms period are to time, discussions a I’m there, or a sensitive decision there of Novitas but pending go place decision is it’s and then curious, to

John Groetelaars


I think is a lot by well-covered topic the this analysts. of sell-side a

I provide more mentioned, not monitoring on as definitive to really, becomes when available. and am going information we we reimbursement I’m – will developments update So actively an are actively

Matt Mishan

John. you, Thank Okay.

John Groetelaars

Thank you, Matt.


is your question. the Matson on a with line – Mike on question. is with Needham state Please

Unidentified Analyst

Joseph Mike. is Hi, guys. on This for

the on savings the from Just one cost was curious restructuring. in I quarter the today,

there if where Thank explain maybe come could that from? did how and much you. was guys You any,

John Groetelaars

I’ll Joseph. Barb. to over turn Thanks, it

Barbara Bodem

Hey, last of that of over business reductions that, of question. of the triggering activity. we sort talked $XX be from a for optimization is headcount. end in Most at Thanks going Joseph. were accelerated was we million two-thirds to about sort Hi, what of coming that the year

balance more So, coming of it the of spend to it’s business. come from across from areas. reprioritization the discretionary going The [indiscernible] was

track going that behind levers a time and to single-digit or making reinvesting those business lot save of growth support it mid as our our think we think well, we that top the We It’s out last the growth opportunities it optimize as we we in the fall year. on did equal been, to in which over $XX you of deliver we QX, million. business. the been So line our talked sure the of identify roughly as savings course realize in about And significant pandemic. are and we spending we’ve are about that reinvested as acceleration to drivers are have that

got the So, course then equal the we [indiscernible] what’s across are other sort realizing between coming is levers. the what of And coming from year. have from now of and It’s savings. mix we pretty

Unidentified Analyst

Awesome. Thank you much. very


I this turn presenters. over the to the At time, will call

John Groetelaars

great We questions really growth. a and margin been have for leading start last it’s the to about thank our really Momentum quarter in we great was today your year. Well, is investing building. good a expansion drivers durable several and that growth all great to years and and sustainable over the very you feel

call. thank So we forward for you are our confident joining moving all and


today’s gentlemen, and Thank with Hill-Rom call this conference you for joining. Inc. Holdings, Ladies concludes