EX-99.1
Published on October 24, 2013
Exhibit 99.1
RESMED INC. ANNOUNCES RECORD FINANCIAL RESULTS FOR THE
QUARTER ENDED SEPTEMBER 30, 2013
SAN DIEGO, October 24, 2013 - ResMed Inc. (NYSE: RMD) today announced record results for the quarter ended September 30, 2013. Revenue for the quarter ended September 30, 2013 was $357.7 million, a 5% increase (a 4% increase on a constant currency basis) over the quarter ended September 30, 2012. For the quarter ended September 30, 2013, net income was $80.9 million, an increase of 14% compared to the quarter ended September 30, 2012. Diluted earnings per share for the quarter ended September 30, 2013 were $0.56, a 14% increase compared to the quarter ended September 30, 2012.
SG&A expenses were $101.3 million for the quarter ended September 30, 2013, an increase of $3.0 million, or 3% (a 4% increase on a constant currency basis) compared to the quarter ended September 30, 2012. SG&A costs were 28.3% of revenue in the quarter ended September 30, 2013, compared to 28.9% for the quarter ended September 30, 2012. SG&A expenses were favorably impacted by the depreciation of the Australian dollar against the U.S. dollar.
R&D expenses were $27.4 million for the quarter ended September 30, 2013, or 7.7% of revenue. R&D expenses increased by 1% (a 9% increase on a constant currency basis) compared to the quarter ended September 30, 2012. R&D expenses were favorably impacted by the depreciation of the Australian dollar against the U.S. dollar.
Amortization of acquired intangibles totalled $2.4 million ($1.8 million, net of tax) during the quarter ended September 30, 2013. Stock-based compensation costs incurred during the quarter ended September 30, 2013 of $10.8 million ($8.8 million, net of tax) consisted of expenses associated with stock options, restricted stock units, and our employee stock purchase plan.
Mick Farrell, chief executive officer, commented, In the first quarter of fiscal 2014, revenue in the Americas increased by 4% over the prior years quarter, to $201.5 million. Revenue outside the Americas was $156.2 million, a 5% increase on a constant currency basis, over the prior years quarter. Global revenue growth was driven primarily by sales of higher valued flow generators, like our S9 AutoSet and S9 bilevels, while mask spares and accessories did particularly well this quarter. Operating profit for the September quarter was $96.9 million, cash flow from operations was $90.4 million, while gross margin increased to 63.7%, all demonstrating excellent operating performance.
We continued to face a tough competitive product cycle this quarter. We have only just released our new mask products, but we were encouraged by their early sales. The Quattro Air is on its way to being one of the best mask launches ever. The Swift FX Nano, which was already selling well in Europe, was just launched in the U.S. in September with good reception. We have a rich pipeline of products scheduled for introduction over the course of this fiscal year, providing us with plenty of opportunities for robust growth ahead.
The opportunities in sleep and respiratory care remain attractive; we continue to provide our customers with the right solutions to better manage their businesses while providing high quality products to improve compliance and patient care. We are focused on continuing to improve the quality of life for patients who suffer from sleep-disordered breathing and its related co-morbidities, such as cardiology and diabetes; respiratory disorders, including chronic obstructive pulmonary disease; preventing disease progression; and saving both in-patient and out-patient costs.
Additionally, the board of directors has today declared a quarterly dividend of $0.25 per share, which will have a record date of November 19, 2013, and be payable on December 18, 2013. The dividend will be paid in U.S. currency to holders of ResMeds 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 November 13, 2013 for CDI holders and November 15, 2013 for common stock holders. As a result of these differences, ResMed has been granted a waiver from the ASXs settlement operating rules, which will allow ResMed to defer processing conversions between its common stock and CDI registers from November 13, 2013 through November 19, 2013, inclusive.
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 ResMeds Website at www.resmed.com or by dialing 847-585-4405 (domestic) or +1 847-585-4405 (international) and entering conference pass code no. 35765718. 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. 35765718.
Further information can be obtained by contacting Constance Bienfait at ResMed Inc., San Diego, at 858-836-5971; Brett Sandercock at +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 September 30, |
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| 2013 | 2012 | |||||||
| Net revenue |
$ | 357,662 | $ | 339,731 | ||||
| Cost of sales |
129,680 | 131,083 | ||||||
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| Gross profit |
227,982 | 208,648 | ||||||
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| Operating expenses |
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| Selling, general and administrative |
101,323 | 98,303 | ||||||
| Research and development |
27,363 | 27,220 | ||||||
| Amortization of acquired intangible assets |
2,412 | 2,636 | ||||||
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| Total operating expenses |
131,098 | 128,159 | ||||||
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| Income from operations |
96,884 | 80,489 | ||||||
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| Other income (expenses), net: |
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| Interest income, net |
6,414 | 8,471 | ||||||
| Other, net |
(1,228 | ) | 1,941 | |||||
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| Total other income, net |
5,186 | 10,412 | ||||||
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| Income before income taxes |
102,070 | 90,901 | ||||||
| Income taxes |
21,140 | 19,636 | ||||||
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| Net income |
$ | 80,930 | $ | 71,265 | ||||
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| Basic earnings per share |
$ | 0.57 | $ | 0.50 | ||||
| Diluted earnings per share |
$ | 0.56 | $ | 0.49 | ||||
| Basic shares outstanding |
142,005 | 142,651 | ||||||
| Diluted shares outstanding |
145,456 | 146,055 | ||||||
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RESMED INC AND SUBSIDIARIES
Condensed Consolidated Balance Sheets (Unaudited - In US$ thousands)
| September 30, | June 30, | |||||||
| 2013 | 2013 | |||||||
| ASSETS |
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| Current assets: |
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| Cash and cash equivalents |
$ | 976,574 | $ | 876,048 | ||||
| Accounts receivable, net |
282,425 | 318,349 | ||||||
| Inventories |
175,355 | 145,847 | ||||||
| Prepayments, deferred income taxes and other current assets |
123,580 | 108,605 | ||||||
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| Total current assets |
1,557,934 | 1,448,849 | ||||||
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| Property, plant and equipment, net |
416,745 | 411,433 | ||||||
| Goodwill |
283,445 | 274,829 | ||||||
| Other intangibles |
48,673 | 49,639 | ||||||
| Deferred income taxes and other non-current assets |
27,838 | 25,971 | ||||||
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| Total non-current assets |
776,701 | 761,872 | ||||||
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| Total assets |
$ | 2,334,635 | $ | 2,210,721 | ||||
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| LIABILITIES AND STOCKHOLDERS EQUITY |
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| Current liabilities: |
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| Accounts payable |
57,125 | 60,688 | ||||||
| Accrued expenses |
135,847 | 137,674 | ||||||
| Deferred revenue |
43,908 | 44,953 | ||||||
| Income taxes payable |
13,453 | 30,090 | ||||||
| Deferred income taxes |
731 | 627 | ||||||
| Current portion of long-term debt |
360,018 | 300,017 | ||||||
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| Total current liabilities |
611,082 | 574,049 | ||||||
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| Non-current liabilities: |
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| Deferred income taxes |
14,539 | 9,895 | ||||||
| Deferred revenue |
12,125 | 11,928 | ||||||
| Income taxes payable |
3,564 | 3,564 | ||||||
| Non-current portion of long-term debt |
790 | 769 | ||||||
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| Total non-current liabilities |
31,018 | 26,156 | ||||||
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| Total liabilities |
642,100 | 600,205 | ||||||
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| Stockholders Equity: |
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| Common stock |
568 | 568 | ||||||
| Additional paid-in capital |
1,044,489 | 1,025,064 | ||||||
| Retained earnings |
1,622,093 | 1,576,641 | ||||||
| Treasury stock |
(1,104,906 | ) | (1,083,845 | ) | ||||
| Accumulated other comprehensive income |
130,291 | 92,088 | ||||||
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| Total stockholders equity |
1,692,535 | 1,610,516 | ||||||
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| Total liabilities and stockholders equity |
$ | 2,334,635 | $ | 2,210,721 | ||||
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