Form: 8-K

Current report filing

April 26, 2012

Exhibit 99.1

 

LOGO

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 year’s 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 America’s 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 today’s 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 ResMed’s 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 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

March 31,

    

Nine Months Ended

March 31,

 
     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   
  

 

 

   

 

 

    

 

 

    

 

 

 

Gross profit

     210,496        182,503         594,266         542,455   
  

 

 

   

 

 

    

 

 

    

 

 

 

Operating expenses:

          

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   
  

 

 

   

 

 

    

 

 

    

 

 

 

Total operating expenses

     133,948        118,541         389,589         342,228   
  

 

 

   

 

 

    

 

 

    

 

 

 

Income from operations

     76,548        63,962         204,677         200,227   
  

 

 

   

 

 

    

 

 

    

 

 

 

Other income (expenses), net:

          

Interest income, net

     7,650        6,663         21,754         17,765   

Other, net

     (191     398         7,005         8,506   
  

 

 

   

 

 

    

 

 

    

 

 

 

Total other income, net

     7,459        7,061         28,759         26,271   
  

 

 

   

 

 

    

 

 

    

 

 

 

Income before income taxes

     84,007        71,023         233,436         226,498   

Income taxes

     19,394        17,673         55,433         57,984   
  

 

 

   

 

 

    

 

 

    

 

 

 

Net income

   $ 64,613      $ 53,350       $ 178,003       $ 168,514   
  

 

 

   

 

 

    

 

 

    

 

 

 

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
 

ASSETS

    

Current assets:

    

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   
  

 

 

   

 

 

 

Total current assets

     1,325,851        1,292,452   
  

 

 

   

 

 

 

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   
  

 

 

   

 

 

 

Total non-current assets

     802,992        776,470   
  

 

 

   

 

 

 

Total assets

   $ 2,128,843      $ 2,068,922   
  

 

 

   

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

    

Current liabilities:

    

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   
  

 

 

   

 

 

 

Total current liabilities

     257,479        208,840   
  

 

 

   

 

 

 

Non-current liabilities:

    

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   
  

 

 

   

 

 

 

Total non-current liabilities

     262,411        129,345   
  

 

 

   

 

 

 

Total liabilities

     519,890        338,185   
  

 

 

   

 

 

 

Stockholders’ Equity:

    

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   
  

 

 

   

 

 

 

Total stockholders’ equity

     1,608,953        1,730,737   
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 2,128,843      $ 2,068,922   
  

 

 

   

 

 

 

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