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
Michael Polark Baird
Drew Ranieri Morgan Stanley
Matt Taylor UBS
Matthew Mishan KeyBanc
Mike Matson Needham & Company
Call transcript
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Good morning and welcome to Hill-Rom’s Fiscal Third 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 third 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, financial our accessed press posted Investor of we website. have the I that performance Relations on would our to presentation Hill-Rom’s also in can addition page be release, These highlights materials and supplemental to a the mention which guidance. XXXX

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

John Groetelaars

Kay and everybody. good morning, Mary Thanks,

QX me quarter review Let a our results, Hill-Rom of strong with reflect which another of fiscal our begin by execution financial team.

see and our resulted care. connected illustrates to the of of commitment momentum in continue benefit that resiliency building the expectations. ongoing This in portfolio, clearly This We transformation, to third and performance underlying business. recovery exceeded quarter financial our Hill-Rom’s advancing the

earnings QX reported X% per With we a As and $XXX one-time in COVID-related $X.XX previously from basis. demand, share. benefited adjusted approximately QX, comparison, million on revenue in challenging year generating revenue this declined highlighted, last of

portfolio. than advanced $X.XX constant of earnings diluted headwind, fueled Adjusted $X.XX range majority COVID the to of expected of the currency basis, XX% by exceeded a guidance $X.XX the across vast our performance stronger revenue per Excluding on share.

pleased to positive will year from unprecedented successfully double-digit guidance of. financial EPS are impacts be delivered something fiscal last over over across are the dynamics, years, course the raising for of and X very the all has recovery performance pandemic, we strong our with this environment have metrics our challenging global the and we Given Even proud XXXX. growth a navigated Hill-Rom

Looking to forward, we remain profile. international category which very value momentum, portfolio growth strategy transformation new durable emerging our product all further and and development, our leadership market business committed through with expansion, strengthened creating of growth

take a a to me highlights. few Let few share moments

growth and measure from care as making define with strategic is success excellent the are back devices our communicate include we that of collect, care. First, connected progress we information care our our devices, achieving and three software One across intelligent this are on the software all monitoring room. operating to diagnostics for connected analyze devices can and businesses measure communications Examples span focus connected or connected We solutions. platforms, and caregivers.

nearly years We than of revenue report less to versus few is connected revenue just a are pleased of ago. Hill-Rom’s today XX% one-third

this care more metric to this portfolio. on evolution Hill-Rom’s annual worth do of connected XX% the as also we not of another It’s measure, Hill-Rom’s represent include beds that transformation. know, advancement noting smart and our you in revenue. compelling which to as For XX% fiscal on realize it across look XXXX, connected this forward growth important We are from of forward track reflects you updating we than going

course than an of $XXX of our track of product objective million, Turning year. new million over new of have and new we more product the achieved products, in Year-to-date, for XXXX. we to have remain increase new revenue exceed $XXX to products XX% on launched revenue we XX the

to towards care weighted come. mid our towards market is overall the weighted robust to intended pipeline growth product is average rate and years boost platforms, new remains our growth Our connected single-digits which in

tough international COVID, business were in comparisons but the down, to front, On low year-over-year single-digits. underlying given grew revenues the due

quarter. in top with growth XX% Asia-Pacific, was performing region Our the

performance continue year China the see We related to QX pandemic. off more an comparison of as strong to revenues than in easy prior doubled

we growth-oriented on strategy. a our and to financial In rigorous M&A, remain transform value. attractive with drive our to terms capital disciplined portfolio continue deploying strategic adhering to of criteria with focused shareholder approach and a We returns

flexibility, strong caregivers. additional category in be our approximately have deployed and evaluating M&A generate an tuck-in remain overall growth XX%. ‘XX, growth collectively aligned expected X improve contribute last and acquisitions are sheet the $XX are balance annual our these transactions. Over part of across improved million our With years, that in a more In for important organic enhance patients approximately our and vision, of We our further $XXX continues growth in opportunities we capital active leadership with their than we has are care enhance connected and outcomes business to fiscal strategy. and of position to million to X revenue objectives. been

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

world First, benefited global when bed phase The more COVID year. Support translated and the as decline the XX% med systems hospitals million, revenue in compared QX $XXX as expanded XX% surge the to generated capacity of prior around into our record This the business from year growth. revenue of demand Systems the early in may than you of of surg PSS expected business the recall, the outbreak. in resulting Patient headwind ICU last for

on within increased total the of In bed more improvement way PSS underlying QX, growth as acute rentals in revenue X%, However, connected third acceleration. platform business our setting and strong care, reflecting its COVID care and for the comprising important sustained for XX% benefit, demand care as remains communications, revenue excluding stage nearly is our ecosystem well annual communications an frontline XX% year’s of quarter was last to than our growth In one-time systems X%. This in revenue increased and sequential platforms. revenue. setting care care Hill-Rom’s

the rate since acquisition the impact orders Allyn million, was Welch from one-time year’s highest last XX%, $XX growth ventilator approximately in XXXX. of excluding quarterly stockpile the However, representing growth

Solid contribution for including recovery from continued as physician well performance screening RetinaVue products, of as Imager by was driven the retinopathy. diabetic to visits returned new pre-COVID as accelerated office levels the

Surgical revenue record tables, difficult in as patient Lastly, X%, products surgical including from the increased rebound. well This exit comparison operating strong the of room positioning as procedures placements than Table business. the as Solutions reflecting of OEM Motion Integrated offset more completed international surgical growth

growth easing constraints providing acceleration in and momentum and into indication fiscal strong Overall, order QX backlog, year surgical the approximately XX%. book and $XX surgical for our exceeded Excluding visibility are last million, very surgical we growth revenue encouraged the a enhanced positive by OEM in revenue growth are XXXX. that hospital of

the call turning like on Before Diagnostics the you I’d to over to transaction. update Barb, Bardy

weeks thoroughly Following strategic explored ago, the and options. variety of Chancery’s Court a X assessed Delaware of we ruling

renewed confidence of in the Bardy We opportunities provide is the our patients and that reimbursement and have concluded with to announced the business, previously as portfolio path Bardy lie for now the decisions, the caregivers underlying have recent of the part that shareholders transaction the under Bardy terms. value company and we to best ahead forward complete for our Hill-Rom. strength Even solutions for the

platform rationale vision. as contemplated, connected we strengthens a existing further portfolio for Although is cardiology cardiology Hill-Rom’s originally believe differentiated complementary strategic this care diagnostic turnout the compelling and is and acquisition. Bardy’s didn’t there our

capabilities the and and acute to the market be to contracting, primary our able among patch, and access, in and data Bardy’s integration other to adoption brand presence expect around solutions. settings accelerate leverage of EMR care We payer security CAM

transformation. our will advance Additionally, capabilities digital of the the roadmap to Bardy us technology enable and innovation

look to work turn As next and with week reimbursement ensure to that position directly that, me CMS closing be for the the landscape, and at reimbursement will prices. so better we accessible with to call the decisions the closed With patients solutions access contractors, Medicare to Novitas, administrative monitoring or to welcoming the transaction, once we acquisition have including the over in a critical forward let Hill-Rom. now Bardy We life-saving appropriate and Barb. team in to

Barbara Bodem

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

on currency reported in million compared year. declined mentioned, worldwide $XXX a $XXX by basis. last in basis to million X% Revenue a on X% of revenue constant revenue As declined QX

Adjusted revenue XXX XXX basis XX%. points XX.X%, record purchases. year’s expectations. is basis gross $XXX benefit last one-time our of was This Excluding which margin of was points benefit year’s exceeded last million, one-time COVID-related a approximately below COVID margin gross included of growth from which XX.X%,

optimization of higher growth $X platforms, continue program last last benefits our nearly from year. million invest Excluding total our line also realizing revenue the while X% $XXX than or continued year. Adjusted business COVID $XX impact, to points product and our with improvements. gross million of of R&D margin expanded in operational due XX basis X% strategic in was we million and mix expectations SG&A to spending favorable implemented as increased

Overall, and $X.XX totaled per As the last tax for a share, third adjusted translates XX.X%. quarter $XX million margin the result, decline diluted was earnings operating expenses a was share. year the record per Interest XX%. of from into fiscal set non-operating this and diluted an $X.XX adjusted of adjusted other the rate

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

year-to-date, increase a result, $XXX an flow free cash of XX%. As million, was

XXth million quarter share raised and the for Our June through X.Xx the remains $XXX dividends balance on at of position we or We ratio shareholders with ended to a end consecutive strong. million X.Xx returned EBITDA To-date, the sheet was net we repurchases $XXX in debt our year. cash and very basis. to our dividend and financial and

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

year includes Bardy in Despite fiscal related guidance plan solution earlier, Bardy flow fourth quarter weeks. pleased and are now we shared our to John earnings Diagnostics adjusted raising modest acquisition to we Therefore, and operational transaction, for XXXX. to coming the now guidance the be the cash revenue, full close our As Bardy.

a least the year, benefit which XXX now increase expect of to for basis points. to on from revenue we the reported X% basis, at So, currency foreign full X% includes

to the Systems and decline growth now constant X%. be year, X% currency grow of and X% revenue and Excluding margins between rates, at Support Care X%; By the segment we perspective, margin we in to continue X% our current both Line approximately to COVID between a and Bardy; prior business Surgical operating to Patient revenue expect an the expected of to X% From revenue finally, XX%. Front expect profitability is impact underlying X%, to gross X%. which XX% to and we revenue continue adjusted Solutions approximately expect of includes

and R&D sales represent We approach of XX% SG&A approximately to X% continue to revenue. to of expect

related share savings our estimated year, expense We continue other per of reflects of approximately translates of adjusted This diluted approximately which share rate $XX reflecting bond XX%. adjusted expect growth. for redemption into earnings $X.XX interest per to and to double-digit the to includes million earnings which $X.XX tax

Excluding both compared flow to cash share perspective, the are current COVID prior our impact approximately the guidance XX%. of of nearly of cash increase $XXX $XXX updated from years, prior guidance a our to operating million $XXX $XX growth contemplates flow an expecting of million earnings From at per we midpoint now million. and million the the

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

diluted For X% fourth earnings, per growth on of items, basis share. excluding of special a expect X% revenue reported to adjusted and fiscal $X.XX expect XXXX, $X.XX the we quarter to

fourth diluted the share a earnings $X.XX. contributed one-time in As last of reminder, revenue approximately and COVID-related year of per estimated million quarter, $XX purchases

evolution uncertain turn to any XXXX highlight the over the as of or now of earnings ranges may the ongoing fiscal remains could exit in pandemic-related quarter growth recovery outlook share fiscal risks I to back year and our require to does underlying impact, reflect we that momentum we adjusted expect continues XX%. XX% purchases. this The not present include revenue and QX provided fourth to call growth XX% Excluding will to guidance and updates XX% would scope opportunities that pandemic business per and COVID-related COVID John. And I the the today. of

John Groetelaars

solid summary, QX our we consecutive for reported the for results raised Barb. guidance third quarter. In Thanks, and

it mid-single like underlying events We and are pandemic. showcasing track portfolio and year deliver challenging optionality double-digit navigate on creates we to performance with as bottom benefits our global line diversified successfully of revenue another the the strong of digit growth, financial

business our reiterate to double-digit beyond continue and level fiscal future long-term early we guidance, we Hill-Rom’s are the and this to to too performance, in detailed We Importantly, it’s our the profile. while to in opportunities high and current This appreciate many of generate And future. that mid-single investing XXXX disclosed revenue years. conviction of sustainable growth accelerated includes and drive you growth EPS growth our previously digit the while growth prospects want towards year. for provide commitment growth evaluating

expect half uncertainty $X.XX benefit of Specifically to of includes for Bardy one-time for the of per of adjusted all contemplated transaction around new efforts outlook. fiscal continues the the the in revenue cost first the well a million reflect resurgence XXXX, this effectiveness profile underlying our impact the after the regarding range share. pandemic, to in we guidance COVID-related factors fiscal of of $XX adjusting as this the the be of environment variants. vaccination mitigations approximately floor there and rising strength These are earnings ‘XX. in and portfolio, as This Obviously, benefit and

Hill-Rom resilience, and evolving of world team commitment, our spirit. the winning for their passion Let the me around unwavering meeting again by the thanking their customers close for once needs

of By we prepared strategy, remarks. vision vital significant to more than on executing up our now for concludes Q&A. to Our value deliver That and on connected successfully would unlocking open look it And mission. caregivers we care is forward advancing shareholders I for as like our ever. patients, our


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

Your question please.

Rick Wise

ask Another beaten start know. rumors going independently hope be uncomfortable transformation, know growth, not has way is the Hill-Rom that as I to greater place, off, a where access about positive margin an to team might there excellent a achieve clearly to question. underway? the But or able opposed yourself multiyear you want acceleration a the rates. – and or we as that market would see positive following goals you you to do future plan address themselves that’s maybe am what I to you inside quarter and specifically. that pursuing maybe in And the team those better see could and am as it few contemplate I as speculation John, don’t be I in the capital you expansion? a anything better to reach where does you is sure ask larger been do to portfolio something them a to in there thought a

John Groetelaars

Yes. Thanks, Rick.

of today laser-focused is care can where we we I are point comment progress the you revenue a the are are XX% is we we my on care of rumor we it’s in our shared driving As say or making. with today at question, category pleased To we What that your journey, and that on devices, appreciate, statistic speculation. that on are connected and can growing strategy and the our call XX%. can’t is connected leadership, very

metric So important we as on. a proxy, continue investors update that a to we very think will that’s

rates. those the market will a growth have portfolio growth seen If it we are connected our categories as say And growth growth those and we can – markets, would those one-third kind double-digit in might portfolio into of of objective. growing see into at we move categories. that there. the Slide turn categories of may have achieved of care entire that highest we you #X, our So, monitoring, we communications growth in, are you I that our say our have care two-thirds that are portfolio go complete double-digit slide, way to And connected to you

Rick Wise

why follow-up a But sorry products more launching, the the and quarter still That’s but rest, just balance at should great. it. you great M&A, given on question, are to the that way sort early And And growing I portfolio that you? appreciate acceleration John, as markets the sheet, the the understand we look as and are rapidly mix, why about plus know the continuing use and of comments mean, just here, investments, be portfolio second sort you in my of in a a thank conservative, new X% talk Totally a you we I guide. – fourth smile. the ‘XX, and say plus we all it the these you your ‘XX. for are that the your that mid-single to question. of happening Got against year ten guide. thinking When And I recovering, past, with start, X% contemplate fiscal recovery things third in instead why a why anyway, we wouldn’t digit ahead? language goodness, you used be as thinking but I words of wouldn’t believe setup

John Groetelaars

Yes. appreciate Thanks, smile. And a Rick. in see your face. I can you I take that. with it

out progress, for We start line. guide be factors QX. We are top stripping just we the the these If XX% in of reported with growth with our the first would I flat very XX% And in half is pleased year all COVID plus. QX year, on the this just right.

the products, the are like pleased investments very in care, with the markets. that we through the through connected new underlying through various we outlined So, you M&A, all with progress momentum emerging of through making we are see business and

So, those guidance put that guidance like early stellar there. bit to are a meeting all XXXX. provide little And for out we clicking. beating us for having we record It’s or of a

XX quarters think I have row. done in that a we now

measured each But we as quarters, our get outlook. to balanced We And will you. of be is closer we will for there be in reason the will optimism. and update

next about sits. months, We ‘XX. of are we comfortable out talk with year couple close And our where in will, consensus the and currently

Rick Wise

Thanks John.


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

Bob Hopkins

Great. Thank you morning. good and

the roughly party year next there heard the for it that – ‘XX, mentioned with see the John, modeling you the that is – with things I how all all dealing consensus COVID where on things you happening contemplate today, you on there, and at you are message now guess, stands of I point. are a kind the next on this just Is that comfortable the and you year? when So, like you that follow-up comparisons

John Groetelaars


Bob Hopkins

Okay. progressing Bardy, then with kind of had Bardy, growth disrupt you that things sense us Great. outlook. growing can for are a it you make business? really And things happens the today, that is just said won’t previously, couple what whatever let quick on EPS of And to sure that you double-digit just other give I want how with

that, to same. that to portfolio confirm officially Just the or want that part now the that’s be remains of going

now doing commitment Bardy is how now same So, still deal to close? going with XX% this that even and have

John Groetelaars

Great basis fourth quarter. When we We didn’t inside business minimum we better months have – margins well a a impressed Bob. with a several period. into as during question, points the a the point year-over-year we visibility And we expect against. levers inorganic execution litigation the at company. year $X.XX about It’s in for inorganic weeks two the sure. about of that the few obviously, impact. Yes, their roughly will subside. gross does scales $X.XX And in line be points with we the were of has business lot XX% XX% in team of there kind To this our quarterly extremely basis of of It’s we question There than reimbursement year, bottom it. going visibility And of have cut next basis. your got But next Bardy. on And contribute a obviously, rate performance of dilution dilution will of were to view, growth. work will as for to growth that have average. of months in XXX revenue to a well From ago, company continued growth XXX just it’s quarter. answer a over be to growth, even to

company. diverse big a are We

We pull dilution. have can lot we of to offset a levers

the growth can’t it as still we forward. growing the of at feel dilution will MAC really important, tremendous technology, relations, ‘XX, at some is in manage to good going amount be nothing highly Bardy incorporate important business cardiac Bardy of and – this we is there yes, EMR decisions the team, pricing rates. mention future. we It’s bring What but with So forthcoming exceptionally to Xx near capability we market not access we diagnosing and that arrhythmias. and handle and It we Xx but work love differentiated. Medicare And market integration a in payer the is

lean help So, in we ownership. items intend under really the all those and business our on to accelerate

Bob Hopkins

queue. Great. back Thank Thanks I very much. will get you. the in

John Groetelaars

you, Bob. Thank


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

Michael Polark

your think will the I Hi, I just double-click on I over be are update current would latest here a you love do I $XXX, time with get transaction? John. reimbursement, good that posted Bardy on there. morning. to horizon? would the there Novitas and what think would thread Houston, what love Whether in forward through your now rate the thoughts with to you is get outcome contractors realistic there or mean that Medicare, the moving

John Groetelaars

Thanks Mike. Sure.

calendar without Another weeks well industry or positive promises strategic are can really positive discussions. we yet. progress And a with Novitas months the part follow or were year made of our that or of really can options in we getting with we some we that and other progress making changes either as rate Bardy specifics, the doing those the CMS for few the reimbursement make diligence in was work important that players. evaluation ‘XX. feel last into confident the are MAC with as will that more No hopeful advance And pleased they to coming be

that, is factored that upside calendar the the that could We into of for year. in kind be But to hope haven’t cards outlook. reason have there in our next

Michael Polark

X something you of I numbers, about are talking And know seeing back rate – round X, you are order a X higher that. do what with $XXX to old we What $XXX, on the a here? the we range, with magnitude? Appreciate it, don’t know,

John Groetelaars


you sell-side mid-XXXs was $XX And higher rate Novitas as current, then the certainly, was as observing too probably high. rate think, proposed analyst of too Mike, maybe now low. viewed $XXX or I the the initially, viewed another the that

its a it. present all Medicare appropriate patients. we viable that not case for access rate it reimbursement put data on. That, that framing way not and does level, that’s to Novitas seems patients. the and number to I that am someone is it’s to MAX agree So, current we sustainable not that access need like I But there. reasonable and frame And appropriate was not out that CMS the way. at for for a that’s think going to these a And provide

So we will service discussions end too all the that see devices the I we up. accessed industry see rate think true current the information is those and who But where and this agree what – the we side have in those low. can delivering all and cost is reimbursement of

Michael Polark

indicators in period, Your with that so like, I development? positive peer quarter. new If would set one would can in revenue on sneak I close curious in of a shifting good out growth business bookings the numbers backlog about last what forward-looking look heard last the your be in night, rate one space that in comments, another Teracom, gears, I the John. love

John Groetelaars

was acceleration we prepared XX% mean it Yes. QX grew at an in remarks, which the I our from commented in quarter, XX%.

really portfolio shipped. underway. Orders with being there. But quarters will received large that, of broad on are We’re comment discussed we and don’t details our several backlog. now I the being deal of that offerings We tell that our you generally is pleased

in revenue next And expect expect to our to our overall fourth category. will We with quarter. current continue year, pipeline recognition we into that see double-digit and growth in some in that

Michael Polark

much. so you Thank

John Groetelaars

you. Thank


line the Please on state your a is question. Stanley Morgan of with question. Ranieri Drew

Drew Ranieri

setting acquisition my you the the question. getting of in to the are get get product made what Breathe time environment, some behind Thanks time the now like vision playing of like to to in that vision going for that putting really there, that maybe what’s ago, for see John, the you you product touch kind home on just of your normal it we’re – investments kind everyone. to out? kind Hi, made just some be just ago, back to and taking to

John Groetelaars

for Yes. Thanks question. the

business, We’re therapists of very busy so health were for COVID COVID of patients. period component our – respiratory time with challenging respiratory that the because was

our Now with, the and really we returning resuming workflow track device. of had last seeing back therapists quarters is after respirologists with in dealing the nice that therapies normalcy trajectory of with and traction product, kind ventilator patient that shortly of which the to we’re LifeXXXX And on respiratory are the couple acquisition. we’re at-home

comp for business. the But last that, to which you’ll passing $XX part had pleased the of of remember, that we million transparently see placements pass large quarter, once rate ventilator passed significant, performance this the year, comp a a I of home the QX, in And we’re order we but that we it of growth will that, in we product. it’s that very As stockpile now last that more think, start in the in cycle of QX. with really will past we And rate prescription for and therapy. we’re

Barbara Bodem

$XX impact, Breathe. this year-over-year million the million just QX, and on And QX headwind COVID comp to generate continues a double-digit about business in clarify, $XX it’s in the to Drew, was growth. excluding

Drew Ranieri

you just anything placements backlog, the see talked be then for Thank constraints that quarter. opportunity the the you gears can record health know you And you. help business. about Motion. just in talk business that show maybe said I Okay. John, Integrated hospital just order about Great, in being shifting Surgical the of Table would And us just remaining to the appreciated. thank Solutions you book us give the you. frame But to environment. lifted the

John Groetelaars

quarters, now now that’s book starting that been building six a last order an has we’ve to and and Obviously, normalizing normalized, the things and backlog during deployed. Yes. largely get access are

really we’re performance with there. pleased So the

information. serve touching a that look OR imaging if the video, out at anything, we as have they that all are This If procedure connected continue. expect which for the the is definitely about such that high, opportunities OEM is And the are in XX%. one And really, OR, and solutions platform elements, excluding surgeon see. that to is in product. excited the really digital excited first truly you, room. timely high but it elements cool we’re other you As exit, Helion to the next-generation to product the day to launch, talked the access operating to the in data COVID. the And really then for connectivity growth our, going integration we’re need our if truly you all But we can new on during our about build out prepared as grew video that you GSS take navigate the it’s without OR XX%, QX, additional at It I use control rate to hub integration very demonstrate able we comments, about actually in growth double-digit OR. to our for they into

we’re about business. excited So that

We’re launch about robotic Helion. is Motion system new extremely start rate to again, placements really the up, picking that attachment Integrated high. Table robotic now our On for excited that,

we’re pleased performance, too. with that So

Drew Ranieri

segment of forward? John. just is and performance market the just out the where one growth double-digit China an on that an easy us you. the maybe the to kind going business you like remind where penetration hear growth? last comp, Thanks, And in most update of Thank but the one options would on quarter, just on what your today growth emerging you’re And seeing called are

John Groetelaars


wasn’t the doubled, quarter Pacific double up Just to business China clarify, but Asia XX%, digit. was last

we quarters. where But We and China the our There for we’re nine for have traction otherwise, market significant double-digit last China in to very of went pleased the portfolio. with there growth untapped one quarter pandemic the believe we’re backwards. potential continue had have seeing eight was our in during it

Drew Ranieri

questions. the taking for Thanks

John Groetelaars

you. Thank


Please on Matt state you line UBS Taylor is the a of question. with question.

Matt Taylor

Can hear thanks. Hi, me, okay? you

John Groetelaars


Matt Taylor


COVID have had the first that over quarter in I to grow you while that to the impact, a in your ability COVID So Or Or question first you could this you comp see we to in the what is still hasn’t about continue wanted talk a fiscal COVID tough ‘XX done? ask you any half? for now going time all should first is reported benefit that forward? just

John Groetelaars


in in COVID future. QX. QX, didn’t calling not We out don’t expect the We’re expected anything any benefit in any see

the that’s million that ‘XX. that comp So we exception first headwind each benefit or $XX will we year, of saw top quarter on two in of the with line, the this million enter the quarters $XX overcome as the

Matt Taylor

you based underlying to could interest that comments the in your And ability make grow over any the comp on Okay. on business?

John Groetelaars

the I repeat business, those think I will metrics. underlying Look,

we’re the progression year. think the acceleration I on our this of seeing performance

and excluding were you apples-to-apples, do QX QX If flat. COVID,

in we Excluding the QX growth. QX benefit had a drove COVID, COVID that and

XX% that you If QX was out as XX%. be flat, QX expect strip we growth and to

So, that’s good progression. pretty

We progression. are very with pleased that

some to about will in finalize comps be headwind we overcome and ‘XX, have talking obviously QX. And here guidance X it. we will in QX for months once We

Matt Taylor

would ask to there offer then what how rumors unanswerable but is And kind if thoughts be guess the because been offer. And an I was have I approach addressing you speculation about okay. turning Okay, just $XXX an you business notwithstanding Could this there think worth? an from about you some the of may approach? is down question, think someone, that on

John Groetelaars

rumors, Yes, I kind those can’t of on comment Matt.

Matt Taylor

Thanks, John. alright. Okay,

John Groetelaars

Thank you.


Mishan is on your KeyBanc question. Please of Matthew with line question. state the a

Matthew Mishan

good Hey, morning.

the the earlier of digitalization guys us the tools? a you of physical can give actions Just on the docs, sense in assessment first,

John Groetelaars

Yes, This ophthalmoscopes. otoscopes tools. And initial is and physical enhanced been to response adds great smartphone assessment a It has technology very the our question. strong.

seeing those disease been that hasn’t cases There all a share delight great that progression, store them, lot images, customers. capture in to space them things long, are long with of for would We’re we caregivers members other or family innovation time. a share of kind the see ability this expected. with The use we expected

to the many super getting. growth bring year-over-year we’re largely going excited to large And we’re it’s category been So about is a flat years. feedback for think we that

Matthew Mishan

Breathe, on follow-up opportunity recall? a you ventilator a seen competitor then have from any And

John Groetelaars

nothing say date. to I’d material

demand. benefit We’re help and haven’t seen there. needs we directly at we any But can looking ways patient meet closely

Matthew Mishan

make last follow-up the on one then want Bardy, just to I I a as sure And understand.

of it of I EPS it, you $X.XX be the Is have captured within of a been your would – have And wasn’t it’s be higher. it, guidance part it correct? $X.XX to think you that announced when if to bit you range. wasn’t dilutive said part could quarter, $X.XX would is It little fourth it part which it the now dilutive, but would guidance. before

John Groetelaars

exactly That’s right, Matt.

Matthew Mishan

much. Thank alright. Okay, you very

Barbara Bodem

Brancy, question. it’s more for time one


is Please question. Thank with Needham you. Company your the question. state of Matson & a Mike line on Mr.

Mike Matson

but can M&A just connected where about from the by change if I product wanted your care. business or products that portion to that internal in coming XX% increase you XX% much show mean driven that’s how this, X, a answer I you Slide involvement ask to of of the I don’t of know have versus growth already? you

John Groetelaars

six comments, total, $XX those in we them of would as In were our acquisitions be the we’ve prepared of acquisitions million. said category. five all connected Well, in done, Sure. care the

connected one So is the not are acquisition. the the five of ventilator, right, care, Breathe the that that’s

think $XX connected of million it I it’s that So around would be care. of $XX million,

not a needle-mover. that really material material it’s So growth. a meaningful of part it’s not just portion it, but It’s of

Barbara Bodem

connected about one the talk care other the in we is XX% of new bucket also that revenue product Mike, is that about. point

Mike Matson


you of taking an earlier, to I limit. in Just I think in products and get the things you that that’s that us of of to terms mentioned just and business. sort some or... you connectivity upper mean selling I essentially think XXX% John, them essentially you’re adding mean

John Groetelaars

probably hypothetical. That’s of more Yes. a

mean me today. that at I are comment. Let XX% clarify we

there to certain is of connected. course, Of have our reason no portfolio parts

the maybe of them. practical to the of we the say value limit connecting – add upper got for going not anything to sake just It’s to So, customer. are the

gross acquisitions mix. these incorporating mix of products. So products of larger benefited are that’s that way, the threshold upper more And the accretive it’s connected the larger And mix, the of like – portion also margin becoming a our the because margin maybe it’s of by also the becoming that is probably like helps more would by a new a portfolio XX% be right, gross portion the solution.

to connected benefit another that’s care So, product. these

couple it’s are margin a have shifts in driver looking you and time not years growth company moved mix we the last that X and As as the us the Slide that in that over leverage gives and of bit for. becomes gross that margin on quite seen slide from

Mike Matson

Thank you. it. got Okay,

John Groetelaars

you. Thank

up, Thank you that I joining for everyone wraps operator. it think the call today.


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