ResMed Inc. Announces Record Financial Results for the Quarter Ended September 30, 2009
SAN DIEGO, Nov. 5 /PRNewswire-FirstCall/ -- ResMed Inc. (NYSE: RMD) today announced record revenue and income results for the quarter ended September 30, 2009. Revenue for the September 2009 quarter was $247.0 million, a 13% increase (a 16% increase on a constant currency basis) over the quarter ended September 30, 2008. For the quarter ended September 30, 2009, income from operations was $52.7 million and net income was $42.1 million, an increase of 44% and 50%, respectively, compared to the quarter ended September 30, 2008. Diluted earnings per share for the quarter ended September 30, 2009 was $0.55, an increase of 53% compared to the quarter ended September 30, 2008.
SG&A costs were $76.8 million for the September 2009 quarter, an increase of $5.4 million or 8% (an 11% increase on a constant currency basis) over the same period in the prior fiscal year. SG&A expenses were favorably impacted by the appreciation of the US dollar against international currencies. The increase in SG&A was primarily due to expenses necessary to support sales growth. SG&A costs were 31% of revenue in the September 2009 quarter, compared to 33% in the same period in the prior fiscal year.
R&D expenses were $17.9 million for the September 2009 quarter, or approximately 7% of revenue. R&D expenses increased by 4% (a 9% increase on a constant currency basis) compared to the prior year quarter. R&D expenses were positively impacted by the appreciation of the US dollar against international currencies, particularly the Australian dollar. The increase in research and development outlays reflects ResMed's continuing commitment to innovation within its product portfolio, as well as an ongoing commitment to clinical research and product development.
Amortization of acquired intangibles was $1.8 million ($1.2 million, net of tax) for the quarter ended September 30, 2009. Stock-based compensation costs incurred during the quarter ended September 30, 2009 of $6.5 million ($4.5 million, net of tax) consisted of expenses associated with stock options granted to employees and with our employee stock purchase plan.
During the quarter, the company donated $1.0 million ($0.6 million, net of tax) to the ResMed Foundation. The Foundation was established to promote research into the deleterious medical consequences of untreated sleep-disordered breathing.
Inventory, at $175.1 million, increased by $17.7 million compared to June 30, 2009. Accounts receivable days sales outstanding, at 77 days, increased by 3 days compared to June 30, 2009.
Kieran T. Gallahue, President and Chief Executive Officer, commented, "In the first quarter of fiscal 2010, we continued to show strong growth year over year. Our favorable mix of product sales and market share gains led to a 19% increase in the Americas over the prior year quarter, resulting in $134.7 million in revenue. Sales outside the Americas were impacted by currency movements, in particular the depreciation of the Euro against the US dollar. As a result, sales outside the Americas increased by 8% to $112.3 million, but were up 13% in constant currency terms. Cash flow from operations for the September quarter was $64.1 million. Our robust revenue growth, strong operating cash flows and exciting product pipeline continue to position us well for the future."
Mr. Gallahue continued, "As promised, we are steadily introducing new products in what proves to be a very exciting year for launching innovative treatment options for sleep-disordered breathing. This summer, we launched the ApneaLink(TM) Plus, our type 3 device for home sleep testing and more recently, we launched the Swift(TM) FX mask in Europe and the Mirage(TM) SoftGel mask in the Americas. These two new masks are receiving a great reception. We are also taking active steps, both in concert with another industry participant, and on our own, to drive further awareness in the primary care community of the health dangers of sleep-disordered breathing through educational programs. These efforts should further enlighten both doctors and patients especially with respect to the relationship between sleep-disordered breathing/obstructive sleep apnea and co-morbidities such as cardiac disease, diabetes, hypertension and obesity as well as the dangers of sleep apnea in regard to occupational health and safety, especially in the transport industry."
About ResMed
ResMed is a leading manufacturer of medical equipment for the treatment and management of sleep-disordered breathing and other respiratory disorders. We are 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 Web site at www.resmed.com or by dialing (866) 700-7173 (domestic) or +1 (617) 213-8838 (international) and entering conference I.D. No. 58367514. Please allow extra time prior to the call to visit the Web site 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 90 minutes after the live call and will be available for two weeks. A telephone replay of the conference call is available by dialing (888) 286-8010 (domestic) and +1 (617) 801-6888 (international) and entering conference I.D. No. 96602021.
Further information can be obtained by contacting Connie 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 Web site 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 US Securities & Exchange Commission. Those reports are available on the Company's Web site.
RESMED INC AND SUBSIDIARIES
Consolidated Statements of Income (Unaudited)
(In US$ thousands, except per share data)
Three Months Ended
September 30,
2009 2008
---- ----
Net revenue $246,992 $217,931
Cost of sales 96,814 90,804
------------- ------ ------
Gross profit 150,178 127,127
------------ ------- -------
Operating expenses
Selling, general and administrative 76,756 71,337
Research and development 17,914 17,293
Amortization of acquired intangible assets 1,845 1,933
Donation to Foundation 1,000 -
---------------------- ----- ---
Total operating expenses 97,515 90,563
------------------------ ------ ------
Income from operations 52,663 36,564
---------------------- ------ ------
Other income (expense), net:
Interest income (expense), net 2,125 3,231
Other, net 3,118 (1,068)
---------- ----- ------
Total other income (expense), net 5,243 2,163
--------------------------------- ----- -----
Income before income taxes 57,906 38,727
Income taxes 15,804 10,701
------------ ------ ------
Net income $42,102 $28,026
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Basic earnings per share $0.56 $0.37
Diluted earnings per share $0.55 $0.36
Basic shares outstanding 75,394 75,613
Diluted shares outstanding 76,762 77,180
-------------------------- ------ ------
RESMED INC AND SUBSIDIARIES
Consolidated Balance Sheets (Unaudited)
(In US$ thousands except share and per share data)
September 30, June 30,
2009 2009
---- ----
Assets
Current assets:
Cash and cash equivalents $477,824 $415,650
Accounts receivable, net 208,825 212,096
Inventories 175,108 157,431
Deferred income taxes 43,859 44,368
Income taxes receivable 4,998 2,067
Prepaid expenses and other current assets 29,196 21,672
----------------------------------------- ------ ------
Total current assets 939,810 853,284
-------------------- ------- -------
Property, plant and equipment, net 397,375 377,613
Goodwill 221,186 213,169
Other intangibles 35,431 35,023
Deferred Income taxes 20,464 19,364
Other assets 5,870 9,515
------------ ----- -----
Total non-current assets 680,326 654,684
------------------------ ------- -------
Total assets $1,620,136 $1,507,968
------------ ---------- ----------
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $47,287 $48,293
Accrued expenses 75,297 67,018
Deferred revenue 31,192 28,881
Income taxes payable 69,808 56,972
Deferred Income taxes 416 391
Current portion of long-term debt 68,296 67,545
--------------------------------- ------ ------
Total current liabilities 292,296 269,100
------------------------- ------- -------
Non Current Liabilities:
Deferred income taxes 11,548 11,137
Deferred revenue 14,878 15,238
Income taxes payable 3,395 3,110
Long-term debt 95,093 94,191
-------------- ------ ------
Total non-current liabilities 124,914 123,676
----------------------------- ------- -------
Total liabilities 417,210 392,776
----------------- ------- -------
Stockholders' Equity:
Common Stock 300 301
Additional paid-in capital 545,186 522,982
Retained earnings 736,893 694,791
Treasury stock (244,342) (208,659)
Accumulated other comprehensive income 164,889 105,777
-------------------------------------- ------- -------
Total stockholders' equity 1,202,926 1,115,192
-------------------------- --------- ---------
Total liabilities and stockholders' equity $1,620,136 $1,507,968
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SOURCE ResMed Inc.
Released November 5, 2009