ResMed Inc. Announces Record Financial Results for the Quarter and Year Ended June 30, 2009
SAN DIEGO, Aug. 6 /PRNewswire-FirstCall/ -- ResMed Inc. (NYSE: RMD) today announced record revenue and income for the quarter ended June 30, 2009. Revenue for the June 2009 quarter was $252.0 million, a 7% increase (a 15% increase on a constant currency basis) over the quarter ended June 30, 2008. For the quarter ended June 30, 2009, income from operations was $57.9 million and net income was $45.4 million, an increase of 57% and 53%, respectively, compared to the quarter ended June 30, 2008. Diluted earnings per share for the quarter ended June 30, 2009 were $0.59, an increase of 55% compared to the quarter ended June 30, 2008.
SG&A expenses were $77.6 million for the June 2009 quarter, which was consistent with the same period in fiscal 2008 (an 11% increase on a constant currency basis). SG&A expenses were favorably impacted by the appreciation of the U.S. dollar against international currencies. In constant currency terms, the increase in SG&A was primarily due to expenses necessary to support sales growth. SG&A costs were 31% of revenue in the June 2009 quarter, compared to 33% in the same period in fiscal 2008.
R&D expenses were $17.0 million for the June 2009 quarter, or approximately 7% of revenue. R&D expenses decreased by 4% (a 14% increase on a constant currency basis) compared to the prior year quarter. R&D was also positively impacted by the appreciation of the U.S. dollar against international currencies, particularly the Australian dollar. R&D outlays reflect 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 June 30, 2009. Stock-based compensation costs incurred during the quarter ended June 30, 2009 of $6.6 million ($4.9 million, net of tax) consisted of expenses associated with stock options granted to employees and our employee stock purchase plan.
During the quarter, the company donated $2.5 million ($1.6 million, net of tax) to the ResMed Foundations. The Foundations were established to promote research into the deleterious medical consequences of untreated sleep-disordered breathing.
For the year ended June 30, 2009, revenue was $920.7 million, a 10% increase (a 15% increase on a constant currency basis) over the year ended June 30, 2008. For the year ended June 30, 2009, income from operations and net income were $190.3 million and $146.4 million, an increase of 33% and 33%, respectively, compared to the year ended June 30, 2008. Diluted earnings per share for the year ended June 30, 2009 were $1.90 per diluted share, an increase of 36% compared to the year ended June 30, 2008.
Inventory, at $157.4 million, decreased by $0.8 million compared to June 30, 2008. Accounts receivable days sales outstanding, at 74 days, increased by 2 days compared to June 30, 2008.
Kieran T. Gallahue, President and Chief Executive Officer, commented, "In the fourth quarter of fiscal 2009, we continued to show strong growth year over year. Our favorable mix of product sales and market share gains led to a 20% increase in the Americas over the prior year quarter, resulting in $134.2 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 decreased by 4% to $117.8 million, but were up 10% in constant currency terms. Cash flow from operations for the June 2009 quarter was a record $70.2 million. Our gross margin continued to expand as well, with a reported 62% for the fourth quarter resulting from manufacturing efficiencies and a positive currency impact.
"Our twentieth fiscal year in business was certainly a successful one with sustained sales performance throughout all regions, gains in capturing market share and a key focus on cost efficiencies across our global organization. The market continues to respond well to our full range of products and the launch of the S8(TM) II series with our Easy Breathe motor technology has done particularly well, especially with the Autoset(TM) II. Masks launched in fiscal 2009, including the Swift(TM) LT, Swift LT for Her and the Activa(TM) LT were strong drivers of growth as was the Quattro. The fact that the market for sleep disordered breathing therapy remains highly underpenetrated and the drive to increase the awareness of SDB and improve patient compliance seem to have shielded us from the economic factors affecting many other companies. Continuing to raise awareness about the relationship between sleep-disordered breathing/obstructive sleep apnea and co-morbidities such as cardiac disease, diabetes, hypertension and obesity as well as our efforts in the occupational health and safety space, with a particular focus on the transport industry, bode well for future continued growth."
ResMed
ResMed is a leading developer, manufacturer, and distributor of medical equipment for treating, diagnosing, and managing 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. U.S. Pacific Daylight 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) 362-4829 (domestic) or +1 (617) 597-5346 (international) and entering conference I.D. No. 36112832. Please allow extra time prior to the call to visit the Web site and download the streaming media player (Windows(R) 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. 21473195.
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 U.S. 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 Year Ended
June 30, June 30,
2009 2008 2009 2008
---- ---- ---- ----
Net revenue $251,959 $235,152 $920,735 $835,397
Cost of sales 95,251 101,067 366,933 341,647
------------- ------- ------- ------- -------
Gross profit 156,708 134,085 553,802 493,750
------------ ------- ------- ------- -------
Operating expenses:
Selling, general and
administrative 77,580 77,443 289,875 278,087
Research and development 16,973 17,589 63,056 60,524
Amortization of acquired
intangible assets 1,756 2,066 7,060 7,791
Restructuring expenses - - - 2,378
Donation to Foundation 2,500 - 3,500 2,000
---------------------- ------ ------ ------- -------
Total operating expenses 98,809 97,098 363,491 350,780
------------------------ ------ ------ ------- -------
Income from operations 57,899 36,987 190,311 142,970
---------------------- ------ ------ ------- -------
Other income (expenses), net:
Interest income (expense), net 2,089 3,121 10,205 10,058
Other, net 2,393 1,526 1,168 4,827
---------- ----- ----- ----- -----
Total other income (expenses), net 4,482 4,647 11,373 14,885
---------------------------------- ----- ----- ------ ------
Income before income taxes 62,381 41,634 201,684 157,855
Income taxes 17,011 12,000 55,236 47,552
------------ ------- ------- -------- --------
Net income $45,370 $29,634 $146,448 $110,303
---------- ------- ------- -------- --------
Basic earnings per share $0.60 $0.38 $1.94 $1.43
Diluted earnings per share $0.59 $0.38 $1.90 $1.40
Basic shares outstanding 75,341 76,993 75,629 77,378
Diluted shares outstanding 76,662 78,714 77,113 78,712
-------------------------- ------ ------ ------ ------
RESMED INC AND SUBSIDIARIES
Consolidated Balance Sheets (Unaudited)
(In US$ thousands except share and per share data)
June 30, June 30,
2009 2008
---- ----
Assets
Current assets:
Cash and cash equivalents $415,650 $321,078
Accounts receivable, net 212,096 192,200
Inventories 157,431 158,251
Deferred income taxes 44,368 31,355
Income taxes receivable 2,067 17,115
Prepaid expenses and other current assets 21,672 19,241
----------------------------------------- ------ ------
Total current assets 853,284 739,240
-------------------- ------- -------
Property, plant and equipment, net 377,613 357,057
Goodwill 213,169 234,647
Other intangibles 35,023 46,771
Deferred Income taxes 19,364 16,162
Other assets 9,515 12,123
------------ ----- ------
Total non-current assets 654,684 666,760
------------------------ ------- -------
Total assets $1,507,968 $1,406,000
------------ ---------- ----------
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $48,293 $56,308
Accrued expenses 67,018 61,338
Deferred revenue 28,881 26,133
Income taxes payable 56,972 3,799
Deferred Income taxes 391 1,150
Current portion of long-term debt 67,545 43,865
--------------------------------- ------ ------
Total current liabilities 269,100 192,593
------------------------- ------- -------
Non Current Liabilities:
Deferred income taxes 11,137 18,333
Deferred revenue 15,238 15,673
Income taxes payable 3,110 3,837
Long-term debt 94,191 93,789
-------------- ------ ------
Total non-current liabilities 123,676 131,632
----------------------------- ------- -------
Total liabilities 392,776 324,225
----------------- ------- -------
Stockholders' Equity:
Common Stock 303 304
Additional paid-in capital 522,980 468,346
Retained earnings 694,791 548,343
Treasury stock (208,659) (142,987)
Accumulated other comprehensive income 105,777 207,769
-------------------------------------- ------- -------
Total stockholders' equity 1,115,192 1,081,775
-------------------------- --------- ---------
Total liabilities and stockholders' equity $1,507,968 $1,406,000
SOURCE ResMed Inc.
Released August 6, 2009