PRESS RELEASE
Published on January 26, 2012
Exhibit 99.1
RESMED INC. ANNOUNCES RECORD FINANCIAL RESULTS FOR THE
QUARTER ENDED AND SIX MONTHS ENDED DECEMBER 31, 2011
SAN DIEGO, California, January 26, 2012 ResMed Inc. (NYSE: RMD) today announced record revenue and income for the quarter ended December 31, 2011. Revenue for the quarter ended December 31, 2011 was $332.7 million, a 9% increase (also a 9% increase on a constant currency basis) over the quarter ended December 31, 2010. For the quarter ended December 31, 2011, net income was $62.9 million, an increase of 8%, compared to the quarter ended December 31, 2010. Diluted earnings per share for the quarter ended December 31, 2011 were $0.42, an increase of 14% compared to the quarter ended December 31, 2010.
SG&A expenses were $100.6 million for the quarter ended December 31, 2011, an increase of $9.0 million, or 10% (a 9% increase on a constant currency basis) over the quarter ended December 31, 2010. The increase in SG&A was primarily due to expenses necessary to support sales growth. SG&A costs were 30% of revenue in the quarter ended December 31, 2011, compared to 30% in the quarter ended December 31, 2010.
R&D expenses were $27.2 million for the quarter ended December 31, 2011, or 8% of revenue. R&D expenses increased by 24% (a 21% increase on a constant currency basis) compared to the quarter ended December 31, 2010.
The company amortized acquired intangibles of $3.7 million ($2.7 million, net of tax) during the quarter ended December 31, 2011. Stock-based compensation costs incurred during the quarter ended December 31, 2011 of $7.4 million ($5.8 million, net of tax) consisted of expenses associated with stock options, restricted stock units, and our employee stock purchase plan.
For the six months ended December 31, 2011, revenue was $647.5 million, an increase of 10% over the six months ended December 31, 2010 (an 8% increase on a constant currency basis). For the six months ended December 31, 2011, net income was $113.4 million, a decrease of 2%, compared to the six months ended December 31, 2010. Diluted earnings per share for the six months ended December 31, 2011 were $0.75 per diluted share, an increase of 3% compared to the six months ended December 31, 2010.
Inventory, at $184.4 million, decreased by $16.4 million compared to June 30, 2011. Accounts receivable days sales outstanding, at 63 days, decreased by 6 days compared to June 30, 2011.
Peter C. Farrell Ph.D, chairman and chief executive officer, commented, On a regional basis, revenue in the Americas increased by 12% to $182.5 million over the prior years quarter. Revenue outside the Americas was $150.2 million, an increase of 5% over the prior years quarter, on both a GAAP and constant currency basis. Our global operating profit for the December quarter was $67.3 million and cash flow from operations was a record $110.6 million, demonstrating excellent operating performance. During the quarter, we also repurchased 4.1 million shares, at a cost of $110.5 million, as part of our ongoing capital management program.
Focusing on product lines, global mask growth remains exceptionally strong as the market continues to reward us for having what we consider are the best patient interfaces in the industry, while initiatives for replenishment of masks and accessories provide additional opportunities for growth. We were pleased to see Americas flow generator sales return to positive growth of 4% this quarter, compared to fiscal year 2011, reflecting continued demand for our S9 line of flow generators in the market. The S9 VPAP Adapt sold especially well in the U.S., completing its first six months on the market and the S9 range of bilevel devices continues to gain back share in the U.S., reflecting the enhanced value the S9 platform brings to both patients and physicians. We are also continuing to focus our efforts on our five strategic imperatives, particularly regarding the positive impact which treating sleep-disordered breathing/obstructive sleep apnea has on cardiovascular and cerebrovascular disease, type 2 diabetes and occupational health and safety. In addition, we are working with the anesthesiology community to help reduce the potential for peri-operative deaths due to undiagnosed sleep-disordered breathing in patients undergoing surgical procedures. We continue to provide research funding in these strategic areas while at the same time providing educational support to physicians working within these various specialties.
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 ResMeds website at www.resmed.com or by dialing 617-614-3672 (domestic) or +1 617-614-3672 (international) and entering conference pass code no. 92354908. 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 30 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. 23854403.
Further information can be obtained by contacting Constance Bienfait at ResMed Inc., San Diego, at (858) 836-5971; Brett Sandercock at ResMed Limited, Sydney, at (+612) 8884-2090; or by visiting the Companys 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 Companys future revenue, earnings or expenses, new product development and new markets for the Companys 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 Companys 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 Companys 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 December 31, |
Six Months Ended December 31, |
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| 2011 | 2010 | 2011 | 2010 | |||||||||||||
| Net revenue |
$ | 332,738 | $ | 305,986 | $ | 647,513 | $ | 587,998 | ||||||||
| Cost of sales |
134,023 | 119,987 | 263,743 | 228,045 | ||||||||||||
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| Gross profit |
198,715 | 185,999 | 383,770 | 359,953 | ||||||||||||
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| Operating expenses: |
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| Selling, general and administrative |
100,552 | 91,581 | 194,755 | 176,371 | ||||||||||||
| Research and development |
27,218 | 21,972 | 53,424 | 41,712 | ||||||||||||
| Amortization of acquired intangible assets |
3,691 | 2,573 | 7,462 | 4,604 | ||||||||||||
| Donation to Foundation |
| | | 1,000 | ||||||||||||
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| Total operating expenses |
131,461 | 116,126 | 255,641 | 223,687 | ||||||||||||
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| Income from operations |
67,254 | 69,873 | 128,129 | 136,266 | ||||||||||||
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| Other income (expenses), net: |
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| Interest income (expense), net |
7,181 | 6,005 | 14,103 | 11,102 | ||||||||||||
| Other, net |
8,496 | 3,043 | 7,196 | 8,106 | ||||||||||||
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| Total other income (expenses), net |
15,677 | 9,048 | 21,299 | 19,208 | ||||||||||||
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| Income before income taxes |
82,931 | 78,921 | 149,428 | 155,474 | ||||||||||||
| Income taxes |
20,059 | 20,465 | 36,038 | 40,310 | ||||||||||||
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| Net income |
$ | 62,872 | $ | 58,456 | $ | 113,390 | $ | 115,164 | ||||||||
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| Basic earnings per share |
$ | 0.43 | $ | 0.38 | $ | 0.76 | $ | 0.76 | ||||||||
| Diluted earnings per share |
$ | 0.42 | $ | 0.37 | $ | 0.75 | $ | 0.73 | ||||||||
| Basic shares outstanding |
146,369 | 152,420 | 148,368 | 152,006 | ||||||||||||
| Diluted shares outstanding |
149,515 | 157,593 | 151,835 | 157,276 | ||||||||||||
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RESMED INC AND SUBSIDIARIES
Condensed Consolidated Balance Sheets (Unaudited - In US$ thousands)
| December 31, 2011 |
June 30, 2011 |
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| Assets |
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| Current assets: |
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| Cash and cash equivalents |
$ | 723,233 | $ | 735,267 | ||||
| Accounts receivable, net |
238,764 | 274,352 | ||||||
| Inventories |
184,420 | 200,777 | ||||||
| Prepayments, deferred income taxes and other current assets |
100,350 | 82,056 | ||||||
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| Total current assets |
1,246,767 | 1,292,452 | ||||||
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| Property, plant and equipment, net |
441,000 | 462,107 | ||||||
| Goodwill |
261,109 | 235,487 | ||||||
| Other intangibles |
61,645 | 47,911 | ||||||
| Deferred income taxes and other non-current assets |
30,957 | 30,965 | ||||||
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| Total non-current assets |
794,711 | 776,470 | ||||||
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| Total assets |
$ | 2,041,478 | $ | 2,068,922 | ||||
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| Liabilities and Stockholders Equity |
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| Current liabilities: |
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| Accounts payable |
45,763 | 55,194 | ||||||
| Accrued expenses |
112,286 | 103,787 | ||||||
| Deferred revenue |
41,840 | 45,125 | ||||||
| Income taxes payable |
26,444 | 3,931 | ||||||
| Deferred income taxes |
574 | 640 | ||||||
| Current portion of long-term debt |
1,450 | 163 | ||||||
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| Total current liabilities |
228,357 | 208,840 | ||||||
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| Non-current liabilities: |
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| Deferred income taxes |
7,921 | 8,051 | ||||||
| Deferred revenue |
15,755 | 17,237 | ||||||
| Income taxes payable |
3,370 | 4,057 | ||||||
| Non-current portion of long-term debt |
225,000 | 100,000 | ||||||
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| Total non-current liabilities |
252,046 | 129,345 | ||||||
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| Total liabilities |
480,403 | 338,185 | ||||||
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| Stockholders Equity: |
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| Common stock |
579 | 607 | ||||||
| Additional paid-in capital |
834,179 | 798,461 | ||||||
| Retained earnings |
1,225,252 | 1,111,862 | ||||||
| Treasury stock |
(739,812 | ) | (504,625 | ) | ||||
| Accumulated other comprehensive income |
240,877 | 324,432 | ||||||
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| Total stockholders equity |
1,561,075 | 1,730,737 | ||||||
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| Total liabilities and stockholders equity |
$ | 2,041,478 | $ | 2,068,922 | ||||
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