Form: 8-K

Current report filing

January 26, 2012

Exhibit 99.1

 

LOGO

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 year’s quarter. Revenue outside the Americas was $150.2 million, an increase of 5% over the prior year’s 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 America’s 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 ResMed’s 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 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

December 31,

    

Six Months Ended

December 31,

 
     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   
  

 

 

    

 

 

    

 

 

    

 

 

 

Gross profit

     198,715         185,999         383,770         359,953   
  

 

 

    

 

 

    

 

 

    

 

 

 

Operating expenses:

           

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   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total operating expenses

     131,461         116,126         255,641         223,687   
  

 

 

    

 

 

    

 

 

    

 

 

 

Income from operations

     67,254         69,873         128,129         136,266   
  

 

 

    

 

 

    

 

 

    

 

 

 

Other income (expenses), net:

           

Interest income (expense), net

     7,181         6,005         14,103         11,102   

Other, net

     8,496         3,043         7,196         8,106   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total other income (expenses), net

     15,677         9,048         21,299         19,208   
  

 

 

    

 

 

    

 

 

    

 

 

 

Income before income taxes

     82,931         78,921         149,428         155,474   

Income taxes

     20,059         20,465         36,038         40,310   
  

 

 

    

 

 

    

 

 

    

 

 

 

Net income

   $ 62,872       $ 58,456       $ 113,390       $ 115,164   
  

 

 

    

 

 

    

 

 

    

 

 

 

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
 

Assets

    

Current assets:

    

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   
  

 

 

   

 

 

 

Total current assets

     1,246,767        1,292,452   
  

 

 

   

 

 

 

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   
  

 

 

   

 

 

 

Total non-current assets

     794,711        776,470   
  

 

 

   

 

 

 

Total assets

   $ 2,041,478      $ 2,068,922   
  

 

 

   

 

 

 

Liabilities and Stockholders’ Equity

    

Current liabilities:

    

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   
  

 

 

   

 

 

 

Total current liabilities

     228,357        208,840   
  

 

 

   

 

 

 

Non-current liabilities:

    

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   
  

 

 

   

 

 

 

Total non-current liabilities

     252,046        129,345   
  

 

 

   

 

 

 

Total liabilities

     480,403        338,185   
  

 

 

   

 

 

 

Stockholders’ Equity:

    

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   
  

 

 

   

 

 

 

Total stockholders’ equity

     1,561,075        1,730,737   
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 2,041,478      $ 2,068,922   
  

 

 

   

 

 

 

 

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