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
Bob Hopkins Bank of America
Larry Kirsch Raymond James
Matt Taylor UBS
Michael Polark Baird
Matt Mishan KeyBanc
Mike Matson Needham and Co
Call transcript
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Good morning and welcome to Hill-Rom’s Fiscal Second 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 second 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, XXXX of be press posted the page we our have the I that performance Investor accessed would website. our to presentation Hill-Rom’s also in materials addition Relations can release, guidance. highlights These and supplemental to a on mention which financial updated

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

John Groetelaars

Mary everybody. morning, Kay, good Thanks,

execution. results, We present to our quarter QX reflected are another strong financial of pleased which

As for a and are our earnings both the revenue result, we raising guidance year. full

our to I and our results world to of the ability caregivers on and our of our diverse our in deliver the expanded vast continue managing strategic basis portfolio our environment challenging value impressed by margin that advanced see recovery invest remain team business stronger across on-going while Hill-Rom’s platforms, resilience QX who XXX majority than the around This are shareholders extremely from against while by revenue across our optimization priorities our significant with strengthens and program. continue momentum We delivering continued we for four benefited a regions. and accelerated building highlights the strategic portfolio mission. the to of Operating performance and growth was passion X% as performance geographic executing portfolio. unlock transformation. patients, points exceeded expected more guidance. our we financial our

earnings of through Barb of guidance, $X and includes earnings diluted growth X% of updated This growth per X% increased which prior walk digit reported high after will and adjusted line year. share. $X.XX to excluding current teens EPS $X.XX and XX% diluted impacts COVID solid adjusted year. reflects the per the revenue the now versus both top Finally, the prior growth share to in mid-single

continuing in of this are deliver drive while growth. level to high performance to investing accelerated we sustainable Importantly, our and business future

which to durable of in category continue make strengthens excellent all new and transformation leadership product market and growth portfolio growth strategy business momentum, our development, and advancing profile. creating We international through value progress with our emerging further

Let me moment share few a a take to highlights.

First, grew new $XXX product in QX XX% million. revenue exceeding again

exceed a have track year. to We the products, of despite several care. least goal third in And which tougher on achieve on product connected new quarter XXXX. new advanced press vision our XX comparison we for fiscal our in of today's remain We of in that of release were highlighted now track our at launched seven in million are to revenue product launches our new XXX objective

and greater have markets. resulting to On go-to-market across seven healthy growth where In quarters. double-digit of on a coming the entire international see portfolio environment our performance favorable Europe driven products new last to particular was double-digit continue regions, there strength growth on-going other growth expect strong investments strategic we a opportunities, basis, dynamics. X% COVID deliver dividends, in targeted pay we eight the Across across With coming elevated recovery variability years. led the Hill-Rom received to revenue with for by markets, to in China, has front, from currency where continue In China constant the continue a growth been priority. increased emerging with commercial Europe, emerging by more and strategy,

portfolio a to continue our strategy. growth oriented transform with We

we've non-strategic expected adhering to $XXX strategic year. our M&A remain driving And approximately organic while finalized and million six returns attractive several for we've financial As The the initiatives. acquisitions we OEM completed you the to of these disciplined of divested criteria. revenue approach of We capital know, the over acquisitions the growth, same focused international exceed value enhancing with surgical rigorous on a time, exit growth deployed with low XX% our and quarter, shareholder this is At towards last years. business.

Now, me provide quarterly financial results. our some let additional on perspectives

decline. This in $XX result X% was one stronger growth a share. COVID in faster steep continue earnings of million material purchases reflects Relative recovery about of result, diluted accounted of to the expected our we per and expected hospitalizations In path QX, revenue revenue approximately rise towards guidance, than this a as cases at time than progressed adjusted the COVID upside, normalization. purchases are the year. we our on February. half as performance with any of and And of and for For one COVID to anticipating January began in $X.XX time half volume of as fiscal the March, second not

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

but acceleration. sustained the than rebounded sequential QX, growth purchases versus a to the growth optimism were revenue earlier. ICU very showed down systems of in X%, across stage XX% potential and year. prior improvement strong Similar driven systems to international performance ICU the U.S., expansion by mentioned last setting care the which market med-surg bed system were with In rising growth performance and and term international two the resulting support over rentals of strong cases, XX% market. bed continued more communications COVID Europe of PSS patient quarters, includes given the for the This expand other one-time on bed long basis of First, of our benefits reflects XX% markets. increased is COVID

very sense, continuous This deterioration decreased and early with that contact to smart continue connected bed We technology, smart ICU superior a integrated our costs to be value with our and can lead helps clinical care of survival, admissions. decreased our that for need improve identify includes for smartphones proposition positioned well beds, centralized solutions. monitoring

We sets apart this noted value feedback validates cardiac code have in turning from now or major experienced very activated the early zero recently over they sense the in clinical This others been hospitals, positive. customer and have since blues us offering that of further has arrest on capability. industry. and our XXX economic initial One that

Line X%, and management Adding leadership Care, patient products on like product in at for significant and accelerated new outcomes modernization In accurate patient We office and these Hill-Rom game care physical will screening digital driven second launches vision increased a a consist and iPad diagnosis decision return within secure customer alarm with and easy our of has tracking, above trending Experience and double to equipment, ear the quarter communications on with providing recovery eye physical clinical retinopathy. on nurse as allow Year-to-date, and to to for capture, of and including products, Physician market called This with sustain called and are image the cardiology based growth. led making. key Connected the Voalte alert improve strong pre-COVID and physician’s half digital of demand These by Care to innovations tools of the of addressing diabetic delivering visits is the retina have device fatigue, new By of differentiation levels. diagnostic and aimed consultation earlier launch reducing physician performance solution products and Voalte images new expanding revenue monitoring allow challenges. efficient and new build a as streaming aim Line transfer an specialists. of view and we aid recent growth ecosystem, global We devices alarm for key mobile assessment recovery Front continue to conditions. revenue real time are waveforms capabilities Care includes the changer. several patient of progresses. application system assessment digits new more X% that this and of digital ready over Front tools, our with company products across us of monitors, contributed traditional care legacy visa for growth

Surgical solutions revenue more tables, the was reflecting in surgical infrastructure our than offset and growth recovery International of in projects more business the Lastly, X% to a impact OEM Motion, declined Table exit strong due the pandemic. including of this the now completed gradual by Integrated

and book by and year. the Excluding the revenue Despite was growth the growth OEM surgical building remain surgical, first backlog. to we flat momentum positive encouraged our prior in half order dynamics in business

business As year. performance reiterate hospital expect of I performance moderate, for of and the the how continue conference bright surgical our year to In am connected vision the rest stakeholders. our demonstrated want has more we constraints and future the value for drive importance Hill-Rom this in year-to-date, bounce than we procedures of we improved clearly closing, proud back access I in This to as care. of the have to all meaningful advancing ever,

sets completed portfolio catalysts emerging like market and M&A and exciting and solid contributions strong product other transactions. durable Our new from a for foundation penetration momentum, diverse growth

the uniquely expect accelerated transformation to We of Hill-Rom benefit environment. the from global healthcare

Barb. to the turn me let Now over call

Barbara Bodem

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

mix Adjusted approximately purchases reflecting versus time strategic worldwide As million a was XX.X% program operational margin recovery result approximately was spending business COVID last revenue SG&A basis prior by balanced, Revenue of in points R&D one The the benefits one This year. and we prior favorable expansion. underlying mentioned, continue our benefits QX X% accounted increased $XXX compared revenue $XX and of was XXX to our of as growth from million to in the last to constant of expanded product grew currency $XX this points and invest gross growth $XXX year. year. comparable million of in for while points X%, platforms, improvements. also on basis X% optimization realizing basis of time year. continued XXX implemented of the the million. COVID basis businesses, of XXX Adjusted the $XXX was million of

$XX rate other diluted the into translates XX% result, in of adjusted million, totaled basis improved a for year. quarter points expenses to XX.X%. $X.XX non-operating and is and fiscal adjusted the margin per for quarter of this share the was prior per the Overall, operating share, XX.X%. which $X.XX earnings tax increase diluted second As an adjusted Interest XXX from

was from driven primarily year, XX% by a Now turning XXXX to flow. operations cash six net first the increase higher Cash for months prior to the million, $XXX flow of compared income prior the investment and changing expenditures our which year-to-date basis making Capital a includes Technology are on $XX than the million, capital. Information in $X global transformation. higher year, totaled working million we

a year-to-date, the $XXX cash versus year. than of has free flow million As result, more doubled prior

returned XXth financial million remains ratio the ended on through share for we and X.X consecutive at strong. quarter sheet repurchases. times $XX very position debt-to-EBITDA end balance Our Today, a cash. March was million We of dividends have also basis. to X.X and And with raised dividend our net our we've And year. shareholders the in the $XXX or

me conclude not fiscal acquisition included let last revenue diagnostics XXXX revised to my the Bardy our Now, quarter, of guidance. impact with in have guidance. our remarks updated the we Similar

contemplate earnings under new to dilution the However, XXXX range in absorb various fiscal flexibility deal does related scenarios. sufficient guidance

X% currency XXX we full of growth a to now which So compares said, revenue basis expect the guidance with to X% increase to range. X% year, in of from This on basis, points. our to includes approximately prior foreign revenue a X% that benefit the reported for

to X% of now of XX% margin margin X%. And approximately of revenue grow continue solutions in profitability to X% segment, revenue between expect we we second gross one-time and contemplating systems XX%. John operating and Front expect care are revenue expect finally, X% By support a an approximately and a to between at COVID adjusted our constant rates, fiscal outlook. growth perspective, and patient to we surgical Line we X%. mentioned, From As business current currency not XXXX purchases half now decline X%.

which to to reflects we approach to approximately tax represent upcoming the and a XX% expense, to approximately earnings share continue related interest We earnings translates to $X.XX other estimated rate and expect X% of of approximately which of diluted our $XX R&D revenue. the of million sales, savings We This adjusted into SG&A expect includes now now share for bond growth $X XX%. per to X% of XX%. year, of redemption per reflected expect

of per share $XX year million, midpoint $XXX flow flow an guidance prior prior operating now on expecting new guidance $XXX contemplates million and the From the of to increase to XX% Excluding million the of cash we COVID XX%. our growth compared cash impacts the a period, current both earnings million at $XXX our are to million. perspective, to of $XXX

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

the third prior challenging For some comparisons we fiscal facing to quarter year. are XXXX, the

million, As of a revenue $X.XX. reminder related diluted per $XXX time of earnings approximately an year, one share last contributed COVID revenue estimated

and we pandemic result, X% to this or now a basis, highlight also to that and remains second remains adjusted the momentum as underlying last unchanged to call exit revenue fiscal the our to I'd over we a to on-going As expect back quarter, decline that X% and earnings guidance of share. outlook from updates of $X.XX require ranges excluding expect pandemic like to business reported items and provided per related special recovery risks on diluted fiscal today. XXXX $X.XX and turn reflects scope I'll The the may And present could John. opportunities uncertain year. the half evolution

John Groetelaars

Thanks, Barb.

pleased execution during customers our are pandemic. very ability to the with support our in We our strong

resilience than Our first half our has been compelling company's transformation. and performance benefits from expected our portfolios financial reflecting better

afforded balanced delivery and patient shareholders. optimistic Our outlook of this tremendous later year, significant value and unlocking the updated returns remains to healthcare normalization outcomes the for We opportunities financial the achievable. improve and and to while Hill-Rom remain in

challenges year both by Before and for personally created like opening close last professionally. call the the many, I'd that new for has up Q&A, to saying

we and strength personal over faced by last own for to she continue to a to the the moment her road resilience period. pleased during to her realities completed months. to she like several for take acknowledge and health has as difficult recovery. thank now to on As new posed has I'd treatment been has And demonstrated resolve wish all and her commitment Barb our we the organization share issue I well with pandemic. that she and their the is am dealing her this that

And call Q&A. So up the that I'd concludes to prepared like for remarks. our open now


question Instructions] from of Rick you. comes Thank [Operator Our Wise Stifel. first

please. question Your

Rick Wise

way solid everybody. to than quarter And a seeing Wonderful another feel heard improvement. my stronger morning, of morning, you Good others. a Good question. John. of in and first recovery for that's we've see I solid quarter like sort were from

you unique us Is new offering, in it particularly impacts in and You business? what nature product offerings, it's a seeing, your think sure understand of level, the know, combination Europe, help maybe your half your I outlook? your that do I'm it's at a mean, of how product high better the but second confidence just you're maybe

John Groetelaars

Rick. question. thanks, Appreciate the Yes,

China, and made, particularly in could that new around We’re the care continued made steps emerging think transformation has expectations. very confident performance exceed to markets, and connected We And the that category leadership, and the we've have in seeing we're conviction made. we've then I play out. products, think high about investments around we supporting our acquisitions all

three laid foundation drivers and durable performance. growth sustained have the those of all really line for top So

of across And us our portfolio But workflow, the that our prioritized would of that improve exceeded As that's the our to and impressed we year, is IT the winter our expectations where we've across speed pleased patient have underlying we related, And nicely And business, our exposure Care and that the with physician the does monitoring, are our with entered anticipate the was in have our, had Comms overall I businesses, growth pandemic patient positioned. organic recovery demonstrate customers portfolio performance, and, what but with pandemic investments. where really parties, think current office, both really then our quarter. been portfolio prioritized. recovery. is the it CapEx does elements give

you're elements So I hope Rick? that the about captures asking

Rick Wise

And implications process the Yes, business Barb margin And a gross maybe full maybe speaking in half us if just this Barb. thank are I guidance understand optimization, much you front, just, programs to as for Barb down year you. maybe understand more second stepped more you two how the And go of can could, help where bit. help on clearly implies and I the us guidance

in benefit? you're understanding rough I'm from XX.X% the of there I feeling tech and the second I'm other reasons, in it world is that think like my math if Are if right, cadence sure doing making And is thrilled are XX%, better. the I'm I'm the better more COVID gross margins just half. understanding the

Barbara Bodem

very the With announced we quickly. been in place you. for a And That's And optimization program has full executed for of the last of $XX year, end Rick. regards business year. we XXXX. that the Thanks million at to year, kind the that business optimization,

what So is half first of the that the you're the seeing of first XX. year in half

we're well there. on So track

benefit. But anticipating in have be sales. not material, significant the going sales continued really and right. it We step our opportunities this or not was is optimization, at that a the of second year, in margin, it's COVID it's whether end And that not a will put the are business expect from not see any the business to you is never don't is further to end or always we benefit place, one place margin optimization going and exactly improve As margin to we're of look time the half to therefore the this we going down to gross for to of piece gross of in end to related regards year. be With the of performance guidance, the into expansion to business. significant program continue that the gross that that last

Rick Wise

Thank you. it? Got

Barbara Bodem

you. Thank


America question. state the Hopkins Please with question. your of a Bob on Bank line is of

Bob Hopkins

very Thanks Oh, much. great.

to of I'd get couple love on. a things some Just comments

between COVID walk difference decline the this the sure just just the the kind the kind guidance, of of quarter you versus next? from that's non-COVID. of with to next love understand for maybe versus First, But versus quarter? I'm the through the guidance this EPS can quarter some of breakdown Barb

Barbara Bodem

QX, is year. have think we key as overcome a So to mind as thing we comp the we last keep in about significant to from

from So onetime a $X.XX approximately and we of in of $XXX million revenue benefit XXXX, COVID QX had that.

at about year, we if results about that. As getting still QX the about XXXX, benefit think we this our we're $X.XX as you a at XXX, look the talked we as

for the continue we're the going and benefit. underlying from really and comparison time going the of next we So quarter, as see the what driving expecting the quarter-to-quarter is one see business COVID to and half year-over-year. We're into in to any second And not year, improve that's EPS curves latter half. of on the to recovered more

Bob Hopkins

here the not to And, guidance time second by by when the But get growth Okay. underlying Great. the given catalysts certainly do we'll you on business? of question, rates should any ask of? to two making for the year. you're growth And year-over-year progress one to in more Bardy that directionally, first, think with some us the new question. to have a want currently some longer at. products hopefully, the and timelines of you're next your One, kind just that we to, you mid-single or aware just cleaner we type your give also, John of making and aspire on asking thoughts steps other year, that I you from ask be you half a progress think things. wanted next for that just just also thoughts I from guess digit next then time for kind year look growth can of about in now; be businesses, approaching making, secondly, rates term maybe

John Groetelaars

Bob. sure Yes,

me that Let question first. last take

and into to relates guidance around it As the XX. corner looking

talk year and for to then that. me about this Let the first, come around exit

double to If the of COVID that rate approximately you COVID XX% constant a take looking the impact, underlying impact half revenue actually exclude growth second constant XXXX top at the compared first exclude if our growth half performance currency currency rates. and at and is you was flat, line digits

the half second and we to COVID first confidence. mid-single we guidance then And a something although see this the committed benefit line looking many the excluding we've last we removing giving double digit to corner to said around XXXX, year. nice acceleration, a all deliver here, do half, from that really we we noise So EPS we're year the with and feel of times not remain that is to. remain COVID digit can what growth committed top And benefit,

So that's, that's the first question.

so litigation. Bardy middle obviously, in As it relates the we're to as of

and my said next ruling have our comments in effect to Mac, in this very we So first the to and outcome, we consistently. we confidence our And on believe begin all, on We've trial mid therefore not And will expect case. has company or although material limited. adverse position I we're X, that of polling satisfied. high sometime do my, speculate not But May be starting would been reaffirm need going that and say, week, conditions occurred, June. a would our the have late conviction to and

save both as looked comments the I thought in I any prepared impact really our your with incorporated Bardy and could guidance as for various in far said respect I’ve all scenarios Bardy this EPS. we to potential So at time

Bob Hopkins

Thanks That's helpful. great, really very much.

John Groetelaars

you. Thank


your the Raymond Please line is of with question. state Kirsch a question. Larry James on

Larry Kirsch

this Great. around probably about times. Thanks. at the that's for leverage guess low of zone. Barbara; target to now believe for everyone. have partially be you've your may John, the Good would I morning, I Barb, X.X talked partially end

about, little strategy thinking just a would we maybe the how M&A M&A and So, be refresh of should helpful? bit on a be

John Groetelaars

remainder turn And coming financial hopefully, talking well fit. But see quarters I'll as the opportunities then we in out will focused some value lot in on our there. for shareholder M&A the progress that’s start here, what strategy. with activity of We on a we going remain the the our with the busy strategic of Barb And as criteria, of, about. and remain as normal. pipeline the with we're creation like I'll over it of Larry, question. worth pleased to maybe Yes,

Barbara Bodem

we've cash as we, pleased we the additional had happy we've created M&A. for as we are do really that that are generation room with and have much Larry, So

allocation the capital remained priority has Our same.

dividends where So consecutive on our in to year can earlier that of we're continue so the that is to going it M&A cash continue dividend dividends to be use repurchases marked going announced to the down going debt to unchanged. We're remains a and more at same. focus opportunity increase to dilution. that an offset come then, we going the excess to pay and grow year in M&A as along. increases We create to was And when XXth any to to the deals look approach to more X% capacity business the for right continue

Larry Kirsch

Yes, it's second guess of great. just I part. two that's question here, you. And then a I no, guess, kind Thank

John term? you're second me monetize as start these the how of indicated think sense the of OUS just out made connected of is, about, that how And getting kind of us year, really in you now, got XXX care? it then early you can you of First, by paid how and part you on this you hospitals, longer there? all Support feature in half sort intrigued the do for to was you've thinking Patient about, the various second actually business do sets refresh Maybe and then how question the I

John Groetelaars

to answer Yes, question. sure. that figure I

that to as anticipated of do slowing purchases first now ICU our to we I COVID challenging see all, the ICU in quarters do of on in capacity it’s onetime related before, thing, of and steam, some Europe in don’t in it Asia-Pac million kind $XXX first the and a over front, the in out. acceleration asked come. about international playing about opportunity an expect as our several in cancer I’m the Canada. piece, still spike pick you think gone just We talked second on-going pick and many demand quite PSS, the going the look there's the so demand to that XX%, limited internationally that the care, bit, incremental steam, see up our countries question half, portfolio. care expansion glad moderate a of comps as years begins around overall international begins and to because because expansion Larry, things and performances connected And half as a we second we back of we’ve on at that's and to half seen believe mentioned in way all-in-all, an across and U.S. around up think we we've we've it’s and, So opportunity, recently be last we've we paid severely the

And portfolio surprised that be how is And and current of what connected part XX% revenue. growing. it's it our to growing over so today at is care And might is total fast the revenue you connected learn of XX% care? our plus. portfolio, And

connected our care. the with So It's pleased around performance launches in very aligned new we're underlying linked there. because are of many new our product closely overlaps with product launches,

However, top taking having the and inorganically both really line. towards investments that driving are of our strategy meaningful advancing are to place that impact a and material care those you're seeing really organically connected

Larry Kirsch

much. very Terrific. That, that's you super helpful. Thank

John Groetelaars

Thank you.


Taylor Matt your a is of state question. question. with UBS Please online

Matt Taylor

that doing the well. hear. you're thank And glad Barb, Hi, to good That's question. for you taking

doses the growing phasing bit a quarters out last way. wanted that if talk I to the the underlying just ask different strip out in Can question all EPS, would there’s a it it’s if better? for that in quarter can I between are I the I so strip that you just be relationship So COVID about the in you slightly XXXX terms quarter, at about difference bridge little more Barb's if if driving guess for XX%, think benefits to I there the X% spending. next like that us help versus you forecast to of look

Barbara Bodem

great an Matt, Bob asked to the you opportunity come I’m a question. question gave to earlier. it’s back glad me

to I around about SG&A spend. really think that both the in think is QX on want difference you key year-over-year

delivering in So much would we very very to on all it of pandemic our and height of customers. been have because were QX XXXX much product surprised activities surfaced in the the are

of point remainder the lowest two is the and really anticipating back our to And show And significant where we’ve continue one so that opportunities line of a activity and what investments to SG&A on to for getting were we our top normal some as you and have things; the the the [ph] probably fact at to that are growth year. going looked we of today forward. reflection of of normalization we’ve seen spend the relative would turned is

point, more business investments that was we QX want the performance, QX our than the both in and our offset as basis by going showed we best and we So thing that are go to optimization from about contribution but forward. talked which performance where XXX we making about was

delivering just where Our in. our us line are share is remained performance on around per double-digit opportunities commitment strong top to are looking bring growth allowing we they for as investment those earnings the the and

for you the about So as that SG&A to think that year-over-year you think about investment sequential equation you. guidance is the and –

Matt Taylor

in. this this COVID run caught manage or anticipating Okay. upside makes you’re in to sense. outlook, forward. [Indiscernible] in typically patients not short we another more it when finally in think you quarter any comes Great. beds end they come get COVID be being half around of but the to is the deal that want you purchasing to not guess That with that orders towards possible some of seeing or I up going the to capital in And able forecasting quarter quarter, are as you where of got now kind benefit much the then about second Are

Barbara Bodem

like Certainly ahead. to in the U.S. you’d go John, if

John Groetelaars

No, we’re I think there.

surge rental we think additional from QX. we have our normalization. that any We don’t upside and anticipated in see fleet any are international QX did I seeing demand or in

anticipated put the was for into year. our nor rest Now of the that guidance

Matt Taylor

Okay, color. for great. the Thanks a lot

John Groetelaars

you. Thank


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

Michael Polark

standpoint or booking Good trending. March platform there the performance Care press on how this it portfolio in evolution to comment from from didn’t quarter, the morning. for was curious how communications. appreciate some update you revenue the looks, me out on on a quarters the Two communications how the the or any in next win, care heard relates I please. comment that last is a I both. largest hear quarter of of history, I quarter, in bookings the pipeline inhibitions couple a called highlighted pipeline comments for as recall

John Groetelaars

a for of orders. And the next we about Bookings just accelerate thanks expect look We Hey, quarter, of we're that flow strong. we recovery. very will Mike, into had nice last very seeing actually half, are continue happening deal Yes. talked question. that revenue to that's and the year, deal. But to in beginning terms to recognition up large the large on with second a most continue

communication prepared a about growth. platform, our Nurse there saw phone we couple comprehensive to and our management, mobile pleased and with we we're now Call as business, alert expect integrated year, that we're the in we Care are acquisitions, performance of quarter, a between time Comm. positioned alarm comments, our we provide know, we've to as you and with business, the made get portfolio, XX% second enhanced and very As pleased a really marketplace. And, in how that whole such In our said, enhancements in the to waveforms accelerate half a the real really the the with of

Michael Polark

you is ramp there they're business do easy Do really quite toll. gears. to, in India, at one? you heart-breaking. to on deal there the we its strains taking that there? COVID the severe stresses Shifting have a headline, business And Number if country are and that help Do and there with see that see moment? business an not,

John Groetelaars

amount business small of a do we Mike, there. Yes,

and strategic not focus good we last opportunity couple alignment it's a a product fact, for market years, been long see mix the for the over of term. did our In the just us

very point. at So it's this minimal we but some presence, have

for but if speak, places looking certainly So we're to we where of crisis. the and help we, out so help, we have looking opportunity, in that been for can duty, called as we're to to if now, really not

Michael Polark

Okay, thank you very much.

John Groetelaars

you. Thank


is question. Stanley question. the Morgan of on with line state a your [Indiscernible] Please

Unidentified Analyst

I Hi, go second. for back John. kind to And just wanted of to a CareCom

up? upsell you opportunity versus the it's go mentioning it the maybe you add want what about clear even in existing the that just just can But were comprehensive at of Just front the to magnitude of you of versus the entire new to to coming with existing talk hospital. accounts accounts of you could touches kind opportunity new for accounts? aspects portfolio, entering get So the hospitals have many you portfolio

John Groetelaars

question. base growth revenue and Call of space. the the Good would Yes, our management, alarm existing than majority opportunity. that platform, mobile cross installed integration, the Nurse true. half medical installed device say and and And, of from into more moving mobile growth our and with upselling from coming I Slightly is MDI base. alert, would between come opportunity, selling the

put post event systems. and of a in them and a it's outcomes analysis, more like, taking it's productivity which for systems current might been in environment? environment, drive especially Kay really stresses she integrating hospital it's that's, but always, why which, well effectively of that, in analysis a would strains on So in it. competitor, Mary so to can the the and to are I the is for out post how have efficiently, a answer resources? more better as think wants I same comment healthcare a and really they on that kind the How the, the ramp volumes workflow up add that we're with mortem it's place, clinical So not positioned better care system, COVID enhancing or COVID do to better And it's the us, post I think acute not always more and

Mary Kay Ladone

billion we less Yes, market and about at Drew, that's from is than penetrated a platform perspective, XX% the $X a total market today. it as look mobile

penetration So as games. versus, penetration more competitive and John mentioned, increasing about it's

John Groetelaars

but that installed mandatory made be Call right. hospital, investors you of Drew, may every are aware this, comment systems that final it's one in not And Nurse

that, of footprint virtue a the a because in we we're nice Call by So business. leader already Nurse have

both, we cross as a into our announced, sell opportunity platforms. next natural to upsell, well Call we mobile just So which have generation Nurse as system,

Unidentified Analyst

two Thanks they Breathe trends or recovery it? XX% just the there. just couple besides color evaluating the a demand development looking to home? seeing last past And back thanks have offices. product on the there you're pent you're COVID, one in years acquisition launches? just then much it for just you about how talk get John, is of to the can for is made And normal? about second for just new Breathe And questions, talk bring physician plan for the Are to then XX% up to but can touching on Got physician ago, any and you investment you question Thank you. offices?

John Groetelaars

okay. Yes,

right probably offices, close pretty pre-COVID or frontline It’s to it XX% physician year. in on ish, in that second that care, range. gets levels to we're So normalization would in specifically, the of now. we the the And expect half back

and comp year And, Breathe positive. very half for second ventilation or has that's that's, our frontline there, of year. was last $XX million the the So division care in comps non-invasive that

year you to the So rate growth. But orders, a from X% the half year. of the full if we single second growth perspective, exclude year, digit high the the we're half is the growth similar of for X% expect stockpiling which first to

a was at in primarily half first So, out and to Breathe, performance in look as consistent non-acute second of With home respect business, and opportunity the the Care portfolio. there is Line we half the Front our and taking to allowing to home, and ventilation to other get and, their in ambulatory, conditions, process. ventilation the be home, have and or been the who hospitalization, chronic COPD patients and mobile and avoid therapy into has environment, total

grow that like it like We're to as expect to shape. growth many market And we to continues driver that for years be underlying opportunity. to that the would expansion we volume for take Breathe seeing device. we a would So come continue prescription

Unidentified Analyst

you, Thank John.

Mary Kay Ladone

Casey, two more we for have questions. time


line Matt a question. Mishan your Please question. Thank on you, the KeyBanc of is with state

Matt Mishan

are give about with on you retail partner roll pharmacy large you out the that talked last you John question. taking update Thank a Hey, for quarter? can an you us where you

John Groetelaars

Matt Yes, in phases training of occur it's excited we get that late various it. this locations The portion And the being Shipments really and expect that in recurring that a equipment's would early connected into began in year those environment. rollout. the for retail about next revenue occurs placed and to year. begins of QX. we're in as

of exceeding the delight in with and partner eyes track, on there. pleased everything's way the our it's out, exceeding, very So retail I creating our think rolling expectations

Matt Mishan

Okay, can can you yet? name the you partner retail

John Groetelaars

a to there'll later but do it's year, No, bigger similar announcement a still name. waiting this be

Matt Mishan

And those digital the specialists? little then, speculate that new I network Are for the tools your mentioned physical own strategy mean, assessment maybe capture bit. tools, you get the with a center specialist. images you of contemplating

John Groetelaars

get we improvements recorded They're term, skills us the in tools. doing it all we to probably able we the archive we I be assessment first in we're And the better EMR. longer times. a to quality that, the all, use That scripts this know, capture is can now actually can ability the had by image time we get and it, it, news our we're kids, many little a many, share made can digitally. I we've We've lighting exciting all over on near one mean, of first of we image, can referral. an such actually to physical going going family But to a there. to the the in mean, itself. It's Matt But this term. is product. is potential opportunities of and

to diseases. develop going images history eye have of to the and you'll track a longitudinal over So of these progress ear that's time

So about business. create excited type and for opportunity could we're could, and it will It does evaluate. it that a an something retina view

I would in during capture can visit. visit visit. result think be of lab further an need where review importantly, you a have enable telehealth a image that telemedicine But share it could an be like a because a help also, it could a doesn't you to asynchronous captured reach now you and just them. synchronous It images remotely telemedicine

to angles, that as and space. tool you And by in many, So we're a leader the if challenge years, wealth about market lead physical were assessment excited first time not space. from in the where we it decades, many many brought to are know, innovations far

Matt Mishan

it. one That's be And and more to there's sure just going I'm make want exciting. I to clarifying

But in I water think year. you to there about have think your about you're probably I the to offset to the next get what to be first going think be the $XXX to a heard you're XXXX, necessarily, in of also have million and you back now As to And this of businesses. Has you're that FY both year, pre-COVID may COVID an -- that. that? has say through $XX half going to hurdles, going have, is levels million to lot you're

Barbara Bodem

Matt, our been I, mode, for benefits that this the this recovery been it. year, look in that talks fact think of I we've want is in that still the first and roughly the parts you business. think COVID half we're is about John that the Yes, at excluding reflective to flat, is is Barb. of we've I how how that of

into As year. and COVID that to be will see help be, an the going received XX will we we that far see so this that to that that improve, continue benefits offset we've

Matt Mishan

Thank you.

Barbara Bodem

that the think top think and we've we that about, excluding that continue growth. focus and line digit, we seen to And as delivering in mid-single we double absolutely As impacts XXXX. to future, the on COVID about digit committed XXXX

Matt Mishan

Barb. you, Thank


and Please Needham your with question. the on of line Matson Mike state a Co is question.

Mike Matson

thanks. Yes,

all happens Bardy with everything. if something other that mean Just in you upon Bardy? I terms whatever mean, with does happening, wings? words, else that deal trial contingent anything M&A, is is the if the completely end of up independent kind that deal, Bardy? happens In going the of and have to doesn't the waiting of in what Or in

John Groetelaars

it's M&A. Like on independent. Yes, Bardy ability has completely or no our impact to additional bandwidth around What question. good execute go

Mike Matson

Okay, with your a from then motions done thanks. got partnership couple really table And surgical with And just, Intuitive. Medtronic, and robots J&J. the coming integrated other well, we've

offer to those So, there something there any are with similar opportunities platforms?

John Groetelaars

one high loyalty. Intuitive level and with both a one has of very positive I have relationship a been Our parties think where,

just environment something not do would of look we MRI robotics, to, get, change. imaging CT We and and integrated with what not proactively it's but systems is as course, well. So interoperative

a really imaging aligned preferred being companies to to with. to capability positioned and with be technology integrate and when So, top, modalities, been want the a comes having some partner, we've it of you well or robotic various with

that for looking changes. with we're not So pleased any

exit terms noncore. I and want reiterate surgical, just of that products just we essential did to the In despite

a OEM current basis exit finished at our point XXX headwind, it's in so year. the guidance, this year, If or top this point and $XX million for line you this basis we XXX just which about headwind the look provided, we revenue X% current business, year million $XX of headwind year, about was last and year the in surgical have

Mike Matson

Okay, great. Thank you.

John Groetelaars

Ladone a you. call who I XXXth and don't and that I'd earnings to today. know I that Well, Thank XXXth comment carries she the bragging guess how on many concludes XXXth banner like one Miss embarrass Kay her closing carries other of earnings Mary and celebrating make call it our my calls. colleagues completing that congratulate to she have here of people call her but rights can today. well. kind earnings I want was

Mary Kay Ladone

Thank you, later forward today. Look John. you with Thanks chatting to everyone.


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