Form: 8-K

Current report filing

April 25, 2013

Exhibit 99.1

 

LOGO

RESMED INC. ANNOUNCES RECORD FINANCIAL RESULTS FOR THE

QUARTER ENDED AND NINE MONTHS ENDED MARCH 31, 2013

 

 

SAN DIEGO, April 25, 2013 – ResMed Inc. (NYSE: RMD) today announced record revenue and income for the quarter ended March 31, 2013. Revenue for the quarter ended March 31, 2013 was $383.6 million, a 10% increase (also a 10% increase on a constant currency basis) over the quarter ended March 31, 2012. For the quarter ended March 31, 2013, net income was $84.9 million, an increase of 31% compared to the quarter ended March 31, 2012. Diluted earnings per share for the quarter ended March 31, 2013 were $0.58, an increase of 32% compared to the quarter ended March 31, 2012.

SG&A expenses were $109.6 million for the quarter ended March 31, 2013, an increase of $7.7 million, or 8% (also an 8% increase on a constant currency basis) compared to the quarter ended March 31, 2012. SG&A costs were 28.6% of revenue in the quarter ended March 31, 2013, compared to 29.2% for the quarter ended March 31, 2012.

R&D expenses were $31.2 million for the quarter ended March 31, 2013, an increase of $2.8 million, or 10% (an 11% increase on a constant currency basis) compared to the quarter ended March 31, 2012. R&D expenses were 8.1% of revenue in the quarter ended March 31, 2013, consistent with 8.1% for the quarter ended March 31, 2012.

The company amortized acquired intangibles of $2.5 million ($1.9 million, net of tax) during the quarter ended March 31, 2013. Stock-based compensation costs incurred during the quarter ended March 31, 2013 of $10.2 million ($7.2 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, 2013, revenue was $1.1 billion, an increase of 10% over the nine months ended March 31, 2012 (a 12% increase on a constant currency basis). For the nine months ended March 31, 2013, income from operations and net income were $268.7 million and $234.1 million, an increase of 31% and 32%, respectively, compared to the nine months ended March 31, 2012. Diluted earnings per share for the nine months ended March 31, 2013 were $1.60 per diluted share, an increase of 36% compared to the nine months ended March 31, 2012.

Inventory, at $166.5 million, decreased by $7.9 million compared to June 30, 2012. Accounts receivable days sales outstanding, at 67 days, decreased by 1 day compared to June 30, 2012.

Additionally, the Board of Directors has today declared a quarterly dividend of $0.17 per share, which will have a record date of May 21, 2013, and be payable on June 18, 2013. The dividend will be paid in U.S. currency to holders of ResMed’s common stock trading on the New York Stock Exchange (NYSE). Holders of CHESS Depositary Instruments (CDIs) trading on the Australian Securities 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. Because the two exchanges have different settlement and transfer procedures, the ex-dividend periods before the record date will be different for common stock and for CDIs. The ex-dividend date will be May 15, 2013 for CDI holders and May 17, 2013 for common stock holders. As a result of these differences, ResMed has received a waiver from the ASX’s settlement operating rules, which will allow ResMed to defer processing conversions between its common stock and CDI registers from May 15, 2013 through May 21, 2013, inclusive.

Michael “Mick” Farrell, chief executive officer, commented, “In the third quarter of fiscal 2013 we showed strong year-over-year growth on both top and bottom lines. Revenue in the Americas increased by 13%, to $215.2 million over the prior year’s quarter. Revenue outside the Americas was $168.4 million, an increase of 6% (also a 6% increase on a constant currency basis) over the prior year’s quarter. Operating profit for the March quarter was $96.1 million, cash flow from operations was $107.0 million, while gross margin was 62.4%, all demonstrating excellent operating performance. During the quarter, we also repurchased 1.5 million shares, at a cost of $67.3 million, as part of our ongoing capital management program.


“We are confident we have the right product pipeline for the future. We will be launching an important and exciting new mask this quarter, and expect to launch an additional mask later this calendar year. Finally, we are pleased to announce the launch of a new product today: VPAP™ COPD. The VPAP COPD is the first and only home bilevel cleared by the FDA specifically for the treatment of chronic obstructive pulmonary disease (COPD), giving patients and payors a weapon in the fight to keep COPD patients out of the hospital. We have also developed new ClimateLineMAXTM Oxy tubing that connects between the humidifier and mask, with an oxygen line input next to the VPAP COPD device, enhancing comfort and ease of use. Both of these products will improve the lives of patients suffering from this debilitating and costly chronic disease.”

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 847-585-4405 (domestic) or +1 847-585-4405 (international) and entering conference passcode no. 34598681. 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 630-652-3042 (domestic) and +1 630-652-3042 (international) and entering conference I.D. No. 34598681.

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, new product launches, 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.

- More -


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,

 
     2013      2012     2013      2012  

Net revenue

   $ 383,581       $ 349,073      $ 1,099,850       $ 996,586   

Cost of sales

     144,132         138,577        419,041         402,320   
  

 

 

    

 

 

   

 

 

    

 

 

 

Gross profit

     239,449         210,496        680,809         594,266   
  

 

 

    

 

 

   

 

 

    

 

 

 

Operating expenses:

          

Selling, general and administrative

     109,628         101,958        315,745         296,712   

Research and development

     31,189         28,398        88,735         81,822   

Amortization of acquired intangible assets

     2,533         3,592        7,671         11,055   
  

 

 

    

 

 

   

 

 

    

 

 

 

Total operating expenses

     143,350         133,948        412,151         389,589   
  

 

 

    

 

 

   

 

 

    

 

 

 

Income from operations

     96,099         76,548        268,658         204,677   
  

 

 

    

 

 

   

 

 

    

 

 

 

Other income (expenses), net:

          

Interest income (expense), net

     8,078         7,650        25,047         21,754   

Other, net

     3,815         (191     3,587         7,005   
  

 

 

    

 

 

   

 

 

    

 

 

 

Total other income (expenses), net

     11,893         7,459        28,634         28,759   
  

 

 

    

 

 

   

 

 

    

 

 

 

Income before income taxes

     107,992         84,007        297,292         233,436   

Income taxes

     23,079         19,394        63,172         55,433   
  

 

 

    

 

 

   

 

 

    

 

 

 

Net income

   $ 84,913       $ 64,613      $ 234,120       $ 178,003   
  

 

 

    

 

 

   

 

 

    

 

 

 

Basic earnings per share

   $ 0.59       $ 0.45      $ 1.64       $ 1.21   

Diluted earnings per share

   $ 0.58       $ 0.44      $ 1.60       $ 1.18   

Basic shares outstanding

     143,293         144,024        143,049         146,931   

Diluted shares outstanding

     146,643         147,157        146,479         150,295   

- More -


RESMED INC AND SUBSIDIARIES

Condensed Consolidated Balance Sheets (Unaudited)

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

 

     March 31,     June 30,  
     2013     2012  

ASSETS

    

Current assets:

    

Cash and cash equivalents

   $ 1,012,698      $ 809,541   

Accounts receivable, net

     293,489        283,160   

Inventories

     166,483        174,351   

Prepayments, deferred income taxes and other current assets

     107,205        94,099   
  

 

 

   

 

 

 

Total current assets

     1,579,875        1,361,151   
  

 

 

   

 

 

 

Property, plant and equipment, net

     444,495        434,363   

Goodwill

     272,796        256,209   

Other intangibles

     54,916        54,827   

Deferred income taxes and other non-current assets

     22,874        31,319   
  

 

 

   

 

 

 

Total non-current assets

     795,081        776,718   
  

 

 

   

 

 

 

Total assets

   $ 2,374,956      $ 2,137,869   
  

 

 

   

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

    

Current liabilities:

    

Accounts payable

     49,385        55,006   

Accrued expenses

     127,850        127,381   

Deferred revenue

     44,172        41,563   

Income taxes payable

     18,330        27,777   

Deferred income taxes

     632        1,073   

Current portion of long-term debt

     340,052        52   
  

 

 

   

 

 

 

Total current liabilities

     580,421        252,852   
  

 

 

   

 

 

 

Non-current liabilities:

    

Deferred income taxes

     9,262        8,843   

Deferred revenue

     12,863        14,384   

Income taxes payable

     3,486        3,380   

Non-current portion of long-term debt

     766        250,783   
  

 

 

   

 

 

 

Total non-current liabilities

     26,377        277,390   
  

 

 

   

 

 

 

Total liabilities

     606,798        530,242   
  

 

 

   

 

 

 

Stockholders’ Equity:

    

Common stock

     571        568   

Additional paid-in capital

     991,744        899,717   

Retained earnings

     1,527,893        1,366,712   

Treasury stock

     (1,011,165     (895,826

Accumulated other comprehensive income

     259,115        236,456   
  

 

 

   

 

 

 

Total stockholders’ equity

     1,768,158        1,607,627   
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 2,374,956      $ 2,137,869   
  

 

 

   

 

 

 

- End -