PRESS RELEASE
Published on April 26, 2012
Exhibit 99.1
RESMED INC. ANNOUNCES RECORD FINANCIAL RESULTS FOR THE
QUARTER ENDED AND NINE MONTHS ENDED MARCH 31, 2012
SAN DIEGO, California, April 26, 2012 ResMed Inc. (NYSE: RMD) today announced record revenue and income for the quarter ended March 31, 2012. Revenue for the quarter ended March 31, 2012 was $349.1 million, an 11% increase (a 13% increase on a constant currency basis) over the quarter ended March 31, 2011. For the quarter ended March 31, 2012, income from operations was $76.5 million and net income was $64.6 million, an increase of 20% and 21%, respectively, compared to the quarter ended March 31, 2011. Diluted earnings per share for the quarter ended March 31, 2012 were $0.44, an increase of 29% compared to the quarter ended March 31, 2011.
SG&A expenses were $101.0 million for the quarter ended March 31, 2012, an increase of $8.4 million, or 9% (a 10% increase on a constant currency basis) compared to the quarter ended March 31, 2011. SG&A costs were 28.9% of revenue in the quarter ended March 31, 2012, compared to 29.5% for the quarter ended March 31, 2011.
R&D expenses were $28.4 million for the quarter ended March 31, 2012, or 8.1% of revenue. R&D expenses increased by 22% (an 18% increase on a constant currency basis) compared to the quarter ended March 31, 2011. R&D expenses were negatively impacted by the appreciation of the Australian dollar against the U.S. dollar.
The company amortized acquired intangibles of $3.6 million ($2.6 million, net of tax) during the quarter ended March 31, 2012. Stock-based compensation costs incurred during the quarter ended March 31, 2012 of $7.9 million ($5.2 million, net of tax) consisted of expenses associated with stock options, restricted stock units, and our employee stock purchase plan.
For the nine months ended March 31, 2012, revenue was $996.6 million, an increase of 11% over the nine months ended March 31, 2011 (a 10% increase on a constant currency basis). For the nine months ended March 31, 2012, income from operations and net income were $204.7 million and $178.0 million, an increase of 2% and 6%, respectively, compared to the nine months ended March 31, 2011. Diluted earnings per share for the nine months ended March 31, 2012 were $1.18 per diluted share, an increase of 10% compared to the nine months ended March 31, 2011.
Inventory, at $183.5 million, decreased by $17.3 million compared to June 30, 2011. Accounts receivable days sales outstanding, at 67 days, decreased by 2 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 18% to $189.9 million over the prior year quarter. Revenues outside the Americas were $159.2 million, an increase of 4% over the prior years quarter (a 7% increase on a constant currency basis). Our global operating profit for the March quarter was $76.5 million and cash flow from operations was a solid $86.0 million, demonstrating excellent operating performance. During the quarter, we also repurchased 2.3 million shares, at a cost of $67.0 million.
If we focus on individual products, it is clear that mask growth remains exceptionally strong as demand for our interface offerings remains robust, especially in the Americas. We are also very pleased to see Americas flow generator sales return to double digit growth at 14% this quarter, reflecting continued demand for our S9 line of flow generators, as we roll out the final products on this platform. This is especially the case for the S9 VPAP line of products.
We also just announced the release of our new patient compliance management solution, EasyCare Online. This innovative new tool, which will be used by sleep labs, home medical equipment suppliers and other health care providers, aggregates usage and efficacy data from sleep-disordered breathing patients on CPAP therapy. Simple to use, while saving time and money, EasyCare Online employs a secure, cloud-based system which provides compliance data to give a real point of differentiation for our customers; this will be particularly important in todays compliance-driven environment. Just as importantly, EasyCare Online will optimize patients therapy and health.
Finally, recently published peer-reviewed studies have shown a strong correlation between sleep-disordered breathing and childhood behavioral difficulties, as well as changes in heart shape and function. These findings add to a mounting body of clinical data associating various health disorders with undiagnosed SDB and point to the increasing need to make the diagnosis and treatment of SDB a standard of care in the various medical silos where currently the problem is too easily ignored.
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. US 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 617-847-8712 (domestic) or +1 617-847-8712 (international) and entering conference pass code no. 98379421. 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. 11303824.
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 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 March 31, |
Nine Months Ended March 31, |
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| 2012 | 2011 | 2012 | 2011 | |||||||||||||
| Net revenue |
$ | 349,073 | $ | 313,258 | $ | 996,586 | $ | 901,255 | ||||||||
| Cost of sales |
138,577 | 130,755 | 402,320 | 358,800 | ||||||||||||
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| Gross profit |
210,496 | 182,503 | 594,266 | 542,455 | ||||||||||||
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| Operating expenses: |
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| Selling, general and administrative |
100,958 | 92,549 | 295,712 | 268,920 | ||||||||||||
| Research and development |
28,398 | 23,319 | 81,822 | 65,032 | ||||||||||||
| Amortization of acquired intangible assets |
3,592 | 2,673 | 11,055 | 7,276 | ||||||||||||
| Donation to Foundation |
1,000 | | 1,000 | 1,000 | ||||||||||||
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| Total operating expenses |
133,948 | 118,541 | 389,589 | 342,228 | ||||||||||||
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| Income from operations |
76,548 | 63,962 | 204,677 | 200,227 | ||||||||||||
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| Other income (expenses), net: |
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| Interest income, net |
7,650 | 6,663 | 21,754 | 17,765 | ||||||||||||
| Other, net |
(191 | ) | 398 | 7,005 | 8,506 | |||||||||||
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| Total other income, net |
7,459 | 7,061 | 28,759 | 26,271 | ||||||||||||
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| Income before income taxes |
84,007 | 71,023 | 233,436 | 226,498 | ||||||||||||
| Income taxes |
19,394 | 17,673 | 55,433 | 57,984 | ||||||||||||
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| Net income |
$ | 64,613 | $ | 53,350 | $ | 178,003 | $ | 168,514 | ||||||||
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| Basic earnings per share |
$ | 0.45 | $ | 0.35 | $ | 1.21 | $ | 1.11 | ||||||||
| Diluted earnings per share |
$ | 0.44 | $ | 0.34 | $ | 1.18 | $ | 1.07 | ||||||||
| Basic shares outstanding |
144,024 | 153,251 | 146,931 | 152,407 | ||||||||||||
| Diluted shares outstanding |
147,157 | 157,616 | 150,295 | 157,356 | ||||||||||||
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RESMED INC AND SUBSIDIARIES
Condensed Consolidated Balance Sheets (Unaudited)
(In US$ thousands except share and per share data)
| March 31, 2012 |
June 30, 2011 |
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| ASSETS |
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| Current assets: |
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| Cash and cash equivalents |
$ | 776,067 | $ | 735,267 | ||||
| Accounts receivable, net |
267,930 | 274,352 | ||||||
| Inventories |
183,488 | 200,777 | ||||||
| Prepayments, deferred income taxes and other current assets |
98,366 | 82,056 | ||||||
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| Total current assets |
1,325,851 | 1,292,452 | ||||||
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| Property, plant and equipment, net |
443,090 | 462,107 | ||||||
| Goodwill |
267,823 | 235,487 | ||||||
| Other intangibles |
59,410 | 47,911 | ||||||
| Deferred income taxes and other non-current assets |
32,669 | 30,965 | ||||||
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| Total non-current assets |
802,992 | 776,470 | ||||||
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| Total assets |
$ | 2,128,843 | $ | 2,068,922 | ||||
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| LIABILITIES AND STOCKHOLDERS EQUITY |
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| Current liabilities: |
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| Accounts payable |
54,726 | 55,194 | ||||||
| Accrued expenses |
122,772 | 103,787 | ||||||
| Deferred revenue |
43,728 | 45,125 | ||||||
| Income taxes payable |
34,674 | 3,931 | ||||||
| Deferred income taxes |
597 | 640 | ||||||
| Current portion of long-term debt |
982 | 163 | ||||||
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| Total current liabilities |
257,479 | 208,840 | ||||||
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| Non-current liabilities: |
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| Deferred income taxes |
8,112 | 8,051 | ||||||
| Deferred revenue |
15,761 | 17,237 | ||||||
| Income taxes payable |
3,538 | 4,057 | ||||||
| Non-current portion of long-term debt |
235,000 | 100,000 | ||||||
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| Total non-current liabilities |
262,411 | 129,345 | ||||||
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| Total liabilities |
519,890 | 338,185 | ||||||
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| Stockholders Equity: |
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| Common stock |
573 | 607 | ||||||
| Additional paid-in capital |
861,307 | 798,461 | ||||||
| Retained earnings |
1,289,865 | 1,111,862 | ||||||
| Treasury stock |
(806,826 | ) | (504,625 | ) | ||||
| Accumulated other comprehensive income |
264,034 | 324,432 | ||||||
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| Total stockholders equity |
1,608,953 | 1,730,737 | ||||||
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| Total liabilities and stockholders equity |
$ | 2,128,843 | $ | 2,068,922 | ||||
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