Form: 8-K

Current report filing

August 6, 2009

Exhibit 99.1

LOGO

RESMED INC. ANNOUNCES RECORD FINANCIAL RESULTS FOR THE

QUARTER AND YEAR ENDED JUNE 30, 2009

 

 

SAN DIEGO, California, August 6, 2009 - 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™ II series with our Easy Breathe motor technology has done particularly well, especially with the Autoset™ II. Masks launched in fiscal 2009, including the Swift™ LT, Swift LT for Her and the Activa™ 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® 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.

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RESMED INC AND SUBSIDIARIES

Consolidated Statements of Income (Unaudited)

(In US$ thousands, except per share data)

 

     Three Months Ended
June 30,
   Year Ended
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

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RESMED INC AND SUBSIDIARIES

Consolidated Balance Sheets (Unaudited)

(In US$ thousands except share and per share data)

 

     June 30,
2009
    June 30,
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   
                

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