Form: 8-K

Current report filing

August 2, 2012

Exhibit 99.1

 

LOGO

RESMED INC. ANNOUNCES RECORD FINANCIAL RESULTS FOR THE

QUARTER AND TWELVE MONTHS ENDED JUNE 30, 2012

SAN DIEGO, California, August 2, 2012 - ResMed Inc. (NYSE: RMD) today announced record revenue and income for the quarter ended June 30, 2012. Revenue for the quarter ended June 30, 2012 was $371.9 million, a 9% increase (a 13% increase on a constant currency basis) over the quarter ended June 30, 2011. For the quarter ended June 30, 2012, net income was $76.8 million, an increase of 31% compared to the quarter ended June 30, 2011. Diluted earnings per share for the quarter ended June 30, 2012 were $0.53, an increase of 43% compared to the quarter ended June 30, 2011.

SG&A expenses were $105.9 million for the quarter ended June 30, 2012, an increase of $3.6 million, or 3% (a 9% increase on a constant currency basis) compared to the quarter ended June 30, 2011. SG&A costs were 28.5% of revenue in the quarter ended June 30, 2012, compared to 29.9% for the quarter ended June 30, 2011. SG&A expenses were favorably impacted by the depreciation of the Australian dollar and euro against the U.S. dollar.

R&D expenses were $27.9 million for the quarter ended June 30, 2012, or 7.5% of revenue. R&D expenses increased by 3% (a 10% increase on a constant currency basis) compared to the quarter ended June 30, 2011. R&D expenses were favorably impacted by the depreciation of the Australian dollar against the U.S. dollar.

The company amortized acquired intangibles of $2.9 million ($2.2 million, net of tax) during the quarter ended June 30, 2012. Stock-based compensation costs incurred during the quarter ended June 30, 2012 of $8.1 million ($5.9 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, 2012, revenue was $1.37 billion, an increase of 10% over the year ended June 30, 2011 (11% increase on a constant currency basis). For the year ended June 30, 2012, net income was $254.9 million, an increase of 12% compared to the year ended June 30, 2011. Diluted earnings per share for the year ended June 30, 2012 were $1.71, an increase of 19% compared to the year ended June 30, 2011.

Inventory, at $174.4 million, decreased by $26.4 million compared to June 30, 2011. Accounts receivable days sales outstanding, at 68 days, decreased by 1 day compared to June 30, 2011.

Additionally, our Board of Directors have today declared a quarterly dividend of $0.17 per share, which will have a record date of September 7, 2012, and be payable on September 28, 2012. The dividend will be paid in US currency to holders of our common stock trading on the New York Stock Exchange (NYSE). Holders of Chess Depositary Instruments (CDIs) trading on the Australian Stock Exchange, will receive an equivalent amount in Australian currency, based on the exchange rate on the record date, and reflecting the 10:1 ratio between CDIs and NYSE shares.

Peter C. Farrell Ph.D, chairman and chief executive officer, commented, “In the fourth quarter of fiscal 2012 we showed strong year-over-year growth on the top and bottom line and both our flow generator and mask categories did well. Revenue in Americas increased by 13% to $207.4 million over the prior year’s quarter. Revenue outside Americas increased by 3% to $164.5 million over the prior year’s quarter, or a 13% increase on a constant currency basis. Operating profit for the June quarter was $89.7 million and cash flow from operations was a robust $97.0 million, demonstrating excellent operating performance.

“‘The peer-reviewed literature continues to make it abundantly clear that untreated sleep-disordered breathing is, at best, seriously debilitating and, at worst, life-threatening. At the May Annual Meeting of the American Thoracic Society it was reported, by researchers from the University of Wisconsin, that individuals with untreated sleep apnea have a higher risk of dying from cancer and the risk was correlated with the severity of the disease. And, at the same meeting, it was also reported that untreated obstructive sleep apnea was independently correlated with diabetic peripheral neuropathy, a debilitating disease which causes severe pain in the hands and feet. Also, at this year’s Annual Endocrine Society meeting held in June, obstructive sleep apnea was found to be a frequent co-morbidity with polycystic ovary syndrome, a hormonal disorder which affects up to 10% of women of child-bearing


age. In addition, in the June 2012 issue of the European Heart Journal it was reported that any level of abnormal sleep-disordered breathing was associated with poor prognosis in chronic heart failure and that treatment of the sleep-disordered breathing with nocturnal ventilation significantly improved outcomes. Finally, in the July 2012 issue of the Journal of Cardiac Failure a study demonstrated the direct connection between untreated central sleep apnea and heart failure re-admission to hospital. These findings add to the continually mounting evidence connecting serious health disorders to untreated sleep-disordered breathing and point to the necessity of making the diagnosis and treatment of sleep-disordered breathing a standard of care in medical practice. In short, testing for sleep-disordered breathing should be as common as having one’s blood pressure taken.”

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 617-597-5377 (domestic) or +1 617-597-5377 (international) and entering conference pass code no. 68952697. 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. 18538587.

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,

 
     2012      2011      2012      2011  

Net revenue

   $ 371,929       $ 341,893       $ 1,368,515       $ 1,243,148   

Cost of sales

     145,460         143,021         547,780         501,822   
  

 

 

    

 

 

    

 

 

    

 

 

 

Gross profit

     226,469         198,872         820,735         741,326   
  

 

 

    

 

 

    

 

 

    

 

 

 

Operating expenses:

           

Selling, general and administrative

     105,909         102,329         401,621         371,249   

Research and development

     27,911         26,976         109,733         92,007   

Amortization of acquired intangible assets

     2,919         2,870         13,974         10,146   

Donation to Foundation

     —           —           1,000         1,000   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total operating expenses

     136,739         132,175         526,328         474,402   
  

 

 

    

 

 

    

 

 

    

 

 

 

Income from operations

     89,730         66,697         294,407         266,924   
  

 

 

    

 

 

    

 

 

    

 

 

 

Other income (expenses), net:

           

Interest income (expense), net

     7,326         8,278         29,080         26,043   

Other, net

     1,454         2,234         8,458         10,740   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total other income (expenses), net

     8,780         10,512         37,538         36,783   
  

 

 

    

 

 

    

 

 

    

 

 

 

Income before income taxes

     98,510         77,209         331,945         303,707   

Income taxes

     21,663         18,737         77,095         76,721   
  

 

 

    

 

 

    

 

 

    

 

 

 

Net income

   $ 76,847       $ 58,472       $ 254,850       $ 226,986   
  

 

 

    

 

 

    

 

 

    

 

 

 

Basic earnings per share

   $ 0.54       $ 0.38       $ 1.75       $ 1.49   

Diluted earnings per share

   $ 0.53       $ 0.37       $ 1.71       $ 1.44   

Basic shares outstanding

     142,788         152,653         145,901         152,471   

Diluted shares outstanding

     146,099         156,723         149,316         157,195   

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RESMED INC AND SUBSIDIARIES

Condensed Consolidated Balance Sheets (Unaudited)

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

 

     June 30, 2012     June 30, 2011  

ASSETS

    

Current assets:

    

Cash and cash equivalents

   $ 809,541      $ 735,267   

Accounts receivable, net

     283,160        274,352   

Inventories

     174,351        200,777   

Deferred income taxes

     19,590        13,875   

Income taxes receivable

     2,282        9,294   

Prepaid expenses and other current assets

     72,227        58,887   
  

 

 

   

 

 

 

Total current assets

     1,361,151        1,292,452   
  

 

 

   

 

 

 

Property, plant and equipment, net

     434,363        462,107   

Goodwill

     256,209        235,487   

Other intangibles

     54,827        47,911   

Deferred income taxes

     23,500        18,922   

Other assets

     7,819        12,043   
  

 

 

   

 

 

 

Total non-current assets

     776,718        776,470   
  

 

 

   

 

 

 

Total assets

   $ 2,137,869      $ 2,068,922   
  

 

 

   

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

    

Current liabilities:

    

Accounts payable

     55,006        55,194   

Accrued expenses

     127,381        103,787   

Deferred revenue

     41,563        45,125   

Income taxes payable

     27,777        3,931   

Deferred income taxes

     1,073        640   

Current portion of long-term debt

     52        163   
  

 

 

   

 

 

 

Total current liabilities

     252,852        208,840   
  

 

 

   

 

 

 

Deferred income taxes

     8,843        8,051   

Deferred revenue

     14,384        17,237   

Income taxes payable

     3,380        4,057   

Non-current portion of long-term debt

     250,783        100,000   
  

 

 

   

 

 

 

Total non-current liabilities

     277,390        129,345   
  

 

 

   

 

 

 

Total liabilities

     530,242        338,185   
  

 

 

   

 

 

 

STOCKHOLDERS’ EQUITY:

    

Common stock

     568        607   

Additional paid-in capital

     899,717        798,461   

Retained earnings

     1,366,712        1,111,862   

Treasury stock

     (895,826     (504,625

Accumulated other comprehensive income

     236,456        324,432   
  

 

 

   

 

 

 

Total stockholders’ equity

     1,607,627        1,730,737   
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 2,137,869      $ 2,068,922   
  

 

 

   

 

 

 

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