ResMed Inc. Announces Record Financial Results For The Quarter Ended And Nine Months Ended March 31, 2012

SAN DIEGO, April 26, 2012 /PRNewswire/ -- ResMed Inc. (NYSE: RMD) today announced record revenue and income for the quarter ended March 31, 2012.  Revenue for the quarter ended March 31, 2012 was $349.1 million, an 11% increase (a 13% increase on a constant currency basis) over the quarter ended March 31, 2011.  For the quarter ended March 31, 2012, income from operations was $76.5 million and net income was $64.6 million, an increase of 20% and 21%, respectively, compared to the quarter ended March 31, 2011.  Diluted earnings per share for the quarter ended March 31, 2012 were $0.44, an increase of 29% compared to the quarter ended March 31, 2011.  

(Logo:  https://photos.prnewswire.com/prnh/20100203/RESMEDLOGO)

SG&A expenses were $101.0 million for the quarter ended March 31, 2012, an increase of $8.4 million, or 9% (a 10% increase on a constant currency basis) compared to the quarter ended March 31, 2011.  SG&A costs were 28.9% of revenue in the quarter ended March 31, 2012, compared to 29.5% for the quarter ended March 31, 2011.   

R&D expenses were $28.4 million for the quarter ended March 31, 2012, or 8.1% of revenue.  R&D expenses increased by 22% (an 18% increase on a constant currency basis) compared to the quarter ended March 31, 2011.  R&D expenses were negatively impacted by the appreciation of the Australian dollar against the U.S. dollar.

The company amortized acquired intangibles of $3.6 million ($2.6 million, net of tax) during the quarter ended March 31, 2012.  Stock-based compensation costs incurred during the quarter ended March 31, 2012 of $7.9 million ($5.2 million, net of tax) consisted of expenses associated with stock options, restricted stock units, and our employee stock purchase plan.  

For the nine months ended March 31, 2012, revenue was $996.6 million, an increase of 11% over the nine months ended March 31, 2011 (a 10% increase on a constant currency basis).  For the nine months ended March 31, 2012, income from operations and net income were $204.7 million and $178.0 million, an increase of 2% and 6%, respectively, compared to the nine months ended March 31, 2011.  Diluted earnings per share for the nine months ended March 31, 2012 were $1.18 per diluted share, an increase of 10% compared to the nine months ended March 31, 2011.

Inventory, at $183.5 million, decreased by $17.3 million compared to June 30, 2011.  Accounts receivable days sales outstanding, at 67 days, decreased by 2 days compared to June 30, 2011.  

Peter C. Farrell, Ph.D, chairman and chief executive officer, commented, "On a regional basis, revenue in the Americas increased by 18% to $189.9 million over the prior year quarter. Revenues outside the Americas were $159.2 million, an increase of 4% over the prior year's quarter (a 7% increase on a constant currency basis).  Our global operating profit for the March quarter was $76.5 million and cash flow from operations was a solid $86.0 million, demonstrating excellent operating performance.  During the quarter, we also repurchased 2.3 million shares, at a cost of $67.0 million.

"If we focus on individual products, it is clear that mask growth remains exceptionally strong as demand for our interface offerings remains robust, especially in the Americas. We are also very pleased to see America's flow generator sales return to double digit growth at 14% this quarter, reflecting continued demand for our S9™ line of flow generators, as we roll out the final products on this platform. This is especially the case for the S9 VPAP™ line of products. 

"We also just announced the release of our new patient compliance management solution, EasyCare Online. This innovative new tool, which will be used by sleep labs, home medical equipment suppliers and other health care providers, aggregates usage and efficacy data from sleep-disordered breathing patients on CPAP therapy. Simple to use, while saving time and money, EasyCare Online employs a secure, cloud-based system which provides compliance data to give a real point of differentiation for our customers; this will be particularly important in today's compliance-driven environment.  Just as importantly, EasyCare Online will optimize patients' therapy and health.

"Finally, recently published peer-reviewed studies have shown a strong correlation between sleep-disordered breathing and childhood behavioral difficulties, as well as changes in heart shape and function. These findings add to a mounting body of clinical data associating various health disorders with undiagnosed SDB and point to the increasing need to make the diagnosis and treatment of SDB a standard of care in the various medical silos where currently the problem is too easily ignored."

About ResMed

ResMed is a global leader in the development, manufacturing and marketing of medical products for the diagnosis, treatment and management of respiratory disorders, with a focus on sleep-disordered breathing. The company is dedicated to developing innovative products to improve the lives of those who suffer from these conditions and to increasing awareness among patients and healthcare professionals of the potentially serious health consequences of untreated sleep-disordered breathing. For more information on ResMed, visit www.resmed.com.

ResMed will host a conference call at 1:30 p.m. US Pacific Time today to discuss these quarterly results.  Individuals wishing to access the conference call may do so via ResMed's Website at www.resmed.com or by dialing 617-847-8712 (domestic) or +1 617-847-8712 (international) and entering conference pass code no. 98379421.  Please allow extra time prior to the call to visit the Website and download the streaming media player (Windows Media Player) required to listen to the Internet broadcast.  The online archive of the broadcast will be available approximately 30 minutes after the live call and will be available for two weeks.  A telephone replay of the conference call is available by dialing 617-801-6888 (domestic) and +1 617-801-6888 (international) and entering conference I.D. No. 11303824.

Further information can be obtained by contacting Constance Bienfait at ResMed Inc., San Diego, at (858) 836-5971; Brett Sandercock at ResMed Limited, Sydney, on (+612) 8884-2090; or by visiting the Company's multilingual Website at www.resmed.com

Statements contained in this release that are not historical facts are "forward-looking" statements as contemplated by the Private Securities Litigation Reform Act of 1995. These forward-looking statements, including statements regarding the Company's future revenue, earnings or expenses, new product development and new markets for the Company's products, are subject to risks and uncertainties, which could cause actual results to materially differ from those projected or implied in the forward-looking statements. Those risks and uncertainties are discussed in the Company's Annual Report on Form 10-K for its most recent fiscal year and in other reports the Company files with the U.S. Securities & Exchange Commission.  Those reports are available on the Company's Website.

 

ResMed Inc and Subsidiaries
Condensed Consolidated Statements of Income (Unaudited)
(In US$ thousands, except per share data)





Three Months Ended

March 31,

Nine Months Ended

March 31,


2012

2011

2012

2011






Net revenue

$349,073

$313,258

$996,586

$901,255

Cost of sales

138,577

130,755

402,320

358,800

Gross profit

210,496

182,503

594,266

542,455






Operating expenses:





Selling, general and administrative

100,958

92,549

295,712

268,920

Research and development

28,398

23,319

81,822

65,032

Amortization of acquired intangible assets

3,592

2,673

11,055

7,276

Donation to Foundation

1,000

-

1,000

1,000

Total operating expenses

133,948

118,541

389,589

342,228

Income from operations

76,548

63,962

204,677

200,227






Other income (expenses), net:





Interest income, net

7,650

6,663

21,754

17,765

Other, net

(191)

398

7,005

8,506

Total other income, net

7,459

7,061

28,759

26,271






Income before income taxes

84,007

71,023

233,436

226,498

Income taxes

19,394

17,673

55,433

57,984

Net income

$64,613

$53,350

$178,003

$168,514






Basic earnings per share

$0.45

$0.35

$1.21

$1.11

Diluted earnings per share

$0.44

$0.34

$1.18

$1.07






Basic shares outstanding

144,024

153,251

146,931

152,407

Diluted shares outstanding

147,157

157,616

150,295

157,356







ResMed Inc And Subsidiaries
Condensed Consolidated Balance Sheets (Unaudited)
(In US$ thousands except share and per share data)





March 31,

June 30,


2012

2011

Assets



Current assets:



Cash and cash equivalents

$776,067

$735,267

Accounts receivable, net

267,930

274,352

Inventories

183,488

200,777

Prepayments, deferred income taxes and other current assets

98,366

82,056

Total current assets

1,325,851

1,292,452

Property, plant and equipment, net

443,090

462,107

Goodwill

267,823

235,487

Other intangibles

59,410

47,911

Deferred income taxes and other non-current assets

32,669

30,965

Total non-current assets

802,992

776,470

Total assets

$2,128,843

$2,068,922

Liabilities and Stockholders' Equity



Current liabilities:



Accounts payable

54,726

55,194

Accrued expenses

122,772

103,787

Deferred revenue

43,728

45,125

Income taxes payable

34,674

3,931

Deferred income taxes

597

640

Current portion of long-term debt

982

163

Total current liabilities

257,479

208,840

Non-current liabilities:



Deferred income taxes

8,112

8,051

Deferred revenue

15,761

17,237

Income taxes payable

3,538

4,057

Non-current portion of long-term debt

235,000

100,000

Total non-current liabilities

262,411

129,345

Total liabilities

519,890

338,185

Stockholders' Equity:



Common stock

573

607

Additional paid-in capital

861,307

798,461

Retained earnings

1,289,865

1,111,862

Treasury stock

(806,826)

(504,625)

Accumulated other comprehensive income

264,034

324,432

Total stockholders' equity

1,608,953

1,730,737




Total liabilities and stockholders' equity

$2,128,843

$2,068,922




SOURCE ResMed Inc.