Form: 8-K

Current report filing

August 4, 2011

Exhibit 99.1

LOGO

RESMED INC. ANNOUNCES RECORD FINANCIAL RESULTS FOR THE

QUARTER AND TWELVE MONTHS ENDED JUNE 30, 2011

- ResMed also Announces Acquisition of Gründler GmbH

SAN DIEGO, California, August 4, 2011 - ResMed Inc. (NYSE: RMD) today announced record revenue and income for the quarter ended June 30, 2011. Revenue for the quarter ended June 30, 2011 was $341.9 million, a 17% increase (an 11% increase on a constant currency basis) over the quarter ended June 30, 2010. For the quarter ended June 30, 2011, net income was $58.5 million, an increase of 10% compared to the quarter ended June 30, 2010. Diluted earnings per share for the quarter ended June 30, 2011 were $0.37, an increase of 9% compared to the quarter ended June 30, 2010.

SG&A expenses were $102.3 million for the quarter ended June 30, 2011, an increase of $18.5 million, or 22% (a 13% increase on a constant currency basis) compared to the quarter ended June 30, 2010. SG&A costs were 29.9% of revenue in the quarter ended June 30, 2011, compared to 28.8% for the quarter ended June 30, 2010. SG&A expenses were negatively impacted by the appreciation of the Australian dollar and euro against the U.S. dollar.

R&D expenses were $27.0 million for the quarter ended June 30, 2011, or 7.9% of revenue. R&D expenses increased by 35% (an 11% increase on a constant currency basis) compared to the quarter ended June 30, 2010. R&D expenses were primarily impacted by the appreciation of the Australian dollar and euro against the U.S. dollar.

The company amortized acquired intangibles of $2.9 million ($1.9 million, net of tax) during the quarter ended June 30, 2011. Stock-based compensation costs incurred during the quarter ended June 30, 2011 of $7.5 million ($5.4 million, net of tax) consisted of expenses associated with stock options, restricted stock units, and our employee stock purchase plan.

For the year ended June 30, 2011, revenue was $1.2 billion, an increase of 14% over the year ended June 30, 2010 (a 13% increase on a constant currency basis). For the year ended June 30, 2011, net income was $227.0 million, an increase of 19% compared to the year ended June 30, 2010. Diluted earnings per share for the year ended June 30, 2011 were $1.44, an increase of 17% compared to the year ended June 30, 2010.

Inventory, at $200.8 million, increased by $15.1 million compared to June 30, 2010. Accounts receivable days sales outstanding, at 69 days, decreased by 2 days compared to June 30, 2010.

Peter C. Farrell Ph.D, chairman and chief executive officer, commented, “In the fourth quarter of fiscal 2011 we continued to show strong year-over-year growth. Revenue in Americas increased by 14% to $182.8 million over the prior year’s quarter. Revenue outside Americas increased by 22% to $159.1 million over the prior year’s quarter, or an 8% increase on a constant currency basis. Operating profit for the June quarter was $66.7 million and cash flow from operations was a robust $74.3 million, demonstrating excellent operating performance.”

The company also announced today the acquisition, on August 1st, of German-based Gründler GmbH, a developer of innovative medical humidification products. These humidifiers can be used with a wide range of ventilators, from neonatal and pediatric, to non-invasive pressure support, to those used in the intensive care unit. ResMed will retain Gründler’s existing staff and facilities, and the business will become part of ResMed’s newly-created Respiratory Care Strategic Business Unit. The transaction is not expected to have a material impact on ResMed’s financial results.

Dr. Farrell continued, “We not only had a strong quarter and year, but we have been active in the last few months with small technology-focused acquisitions and partnerships that will further our strategy to reach deeper into the vastly underpenetrated market for sleep-disordered breathing, as well as serve existing patients. In May, we informed you of our reorganization with the intention to be more aggressive in driving our key strategic initiatives and we have done just that. With the BiancaMed acquisition in July of this year, we can provide an innovative, convenient, non-contact device to monitor sleep and breathing in the home and hospital, while increasing our focus


on opportunities in chronic disease states related to sleep-disordered breathing, such as heart failure and chronic obstructive pulmonary disease. Our recently-announced partnership with CareFusion allows us to quickly establish a presence for Stellar 100 and 150 in the U.S. institutional healthcare market and creates an opportunity to enlarge our footprint in ventilation. Our acquisition of Gründler expands that footprint even further by adding high-quality humidification technology and products. We now have very competitive humidification solutions that provide superior therapy under a broad range of operating conditions. Due to the strong correlation between sleep-disordered breathing and comorbidities, such as heart disease and diabetes, chronic obstructive pulmonary disease, peri-operative death and occupational health and safety, we believe that there are significant opportunities to further penetrate the market; these recent acquisitions and partnership provide us with more options to achieve that goal.”

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. U.S. 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 617-213-8059 (domestic) or +1 617-213-8059 (international) and entering conference pass code no. 96620149. 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 90 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. 93983593.

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.

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RESMED INC AND SUBSIDIARIES

Condensed Consolidated Statements of Income (Unaudited)

(In US$ thousands, except per share data)

 

    

Three Months Ended

June 30,

   

Year Ended

June 30,

 
     2011      2010     2011      2010  

Net revenue

   $ 341,893       $ 291,572      $ 1,243,148       $ 1,092,357   

Cost of sales

     143,021         117,055        501,822         436,874   
  

 

 

    

 

 

   

 

 

    

 

 

 

Gross profit

     198,872         174,517        741,326         655,483   
  

 

 

    

 

 

   

 

 

    

 

 

 

Operating expenses:

          

Selling, general and administrative

     102,329         83,874        371,249         328,858   

Research and development

     26,976         19,950        92,007         75,202   

Amortization of acquired intangible assets

     2,870         2,074        10,146         8,041   

Donation to Foundation

     —           —          1,000         3,000   
  

 

 

    

 

 

   

 

 

    

 

 

 

Total operating expenses

     132,175         105,898        474,402         415,101   
  

 

 

    

 

 

   

 

 

    

 

 

 

Income from operations

     66,697         68,619        266,924         240,382   
  

 

 

    

 

 

   

 

 

    

 

 

 

Other income (expenses), net:

          

Interest income (expense), net

     8,278         4,646        26,043         14,029   

Other, net

     2,234         (1,337     10,740         6,178   
  

 

 

    

 

 

   

 

 

    

 

 

 

Total other income (expenses), net

     10,512         3,309        36,783         20,207   
  

 

 

    

 

 

   

 

 

    

 

 

 

Income before income taxes

     77,209         71,928        303,707         260,589   

Income taxes

     18,737         18,762        76,721         70,504   
  

 

 

    

 

 

   

 

 

    

 

 

 

Net income

   $ 58,472       $ 53,166      $ 226,986       $ 190,085   
  

 

 

    

 

 

   

 

 

    

 

 

 

Basic earnings per share

   $ 0.38       $ 0.35      $ 1.49       $ 1.26   

Diluted earnings per share

   $ 0.37       $ 0.34      $ 1.44       $ 1.23   

Basic shares outstanding

     152,653         151,750        152,471         150,908   

Diluted shares outstanding

     156,723         157,136        157,195         155,098   

All share and per share information has been adjusted to reflect the two-for-one stock split effected in the form of a 100% stock dividend that was declared on August 5, 2010 and distributed on August 30, 2010.

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RESMED INC AND SUBSIDIARIES

Condensed Consolidated Balance Sheets (Unaudited)

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

 

     June 30, 2011     June 30, 2010  

ASSETS

    

Current assets:

    

Cash and cash equivalents

   $ 735,267      $ 488,776   

Accounts receivable, net

     274,352        226,911   

Inventories

     200,777        185,642   

Deferred income taxes

     13,875        14,112   

Income taxes receivable

     9,294        5,317   

Prepaid expenses and other current assets

     58,887        64,583   
  

 

 

   

 

 

 

Total current assets

     1,292,452        985,341   
  

 

 

   

 

 

 

Property, plant and equipment, net

     462,107        387,148   

Goodwill

     235,487        198,625   

Other intangibles

     47,911        30,925   

Deferred income taxes

     18,922        19,042   

Other assets

     12,043        5,316   
  

 

 

   

 

 

 

Total non-current assets

     776,470        641,056   
  

 

 

   

 

 

 

Total assets

   $ 2,068,922      $ 1,626,397   
  

 

 

   

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

    

Current liabilities:

    

Accounts payable

     55,194        57,535   

Accrued expenses

     103,787        80,883   

Deferred revenue

     45,125        29,507   

Income taxes payable

     3,931        22,656   

Deferred income taxes

     640        402   

Current portion of long-term debt

     163        121,689   
  

 

 

   

 

 

 

Total current liabilities

     208,840        312,672   
  

 

 

   

 

 

 

Deferred income taxes

     8,051        10,793   

Deferred revenue

     17,237        12,755   

Income taxes payable

     4,057        2,641   

Non-current portion of long-term debt

     100,000        —     
  

 

 

   

 

 

 

Total non-current liabilities

     129,345        26,189   
  

 

 

   

 

 

 

Total liabilities

     338,185        338,861   
  

 

 

   

 

 

 

STOCKHOLDERS’ EQUITY:

    

Common stock

     607        605   

Additional paid-in capital

     798,461        660,185   

Retained earnings

     1,111,862        884,876   

Treasury stock

     (504,625     (344,505

Accumulated other comprehensive income

     324,432        86,375   
  

 

 

   

 

 

 

Total stockholders’ equity

     1,730,737        1,287,536   
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 2,068,922      $ 1,626,397   
  

 

 

   

 

 

 

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