Form: 8-K

Current report filing

November 5, 2009

Exhibit 99.1

LOGO

RESMED INC. ANNOUNCES RECORD FINANCIAL RESULTS FOR THE

QUARTER ENDED SEPTEMBER 30, 2009

 

 

SAN DIEGO, California, November 5, 2009 - 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 U.S. 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 U.S. 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™ Plus, our type 3 device for home sleep testing and more recently, we launched the Swift™ FX mask in Europe and the Mirage™ 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 Website 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 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
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   
   

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   

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RESMED INC AND SUBSIDIARIES

Consolidated Balance Sheets (Unaudited)

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

 

      September 30,
2009
    June 30,
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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