Form: 8-K

Current report filing

January 30, 2020

Exhibit 99.1

 

LOGO  

 

For investors    For media
Amy Wakeham    Jayme Rubenstein
+1 858-836-5000    +1 858-836-6798
investorrelations@resmed.com    news@resmed.com

ResMed Inc. Announces Results for the Second Quarter of Fiscal Year 2020

 

  •  

Year-over-year revenue grows 13%, non-GAAP operating profit up 21%

 

  •  

Balanced growth across product portfolio, software solutions, and global markets

Note: A webcast of ResMed’s conference call will be available at 4:30 p.m. ET today at http://investor.resmed.com

SAN DIEGO, January 30, 2020 – ResMed Inc. (NYSE: RMD, ASX: RMD), a world-leading digital health company, today announced results for its quarter ended December 31, 2019.

Second Quarter 2020 Highlights

 

  •  

Revenue increased 13% to $736.2 million; up 14% on a constant currency basis

 

  •  

GAAP gross margin of 58.0%; non-GAAP gross margin expanded 60 bps to 59.7%

 

  •  

Net operating profit increased 26%; non-GAAP operating profit up 21%

 

  •  

GAAP diluted earnings per share of $1.10; non-GAAP diluted earnings per share of $1.21

“We had a strong December quarter with double-digit top-line growth and further gross margin expansion, as well as continued fiscal discipline that resulted in improvements in operating leverage and double-digit growth at the bottom line,” said Mick Farrell, ResMed’s CEO. “We are seeing continued strong customer demand for our new products, particularly in masks and accessories with another quarter of high-teens growth in that category. ResMed is continuing to lead in digital health as we transform lives in out-of-hospital healthcare, leading the innovation of medical devices and software that improve health outcomes, create efficiencies, and reduce overall healthcare system costs. With over 100 million lives improved in 2019, and strong growth ahead, we’re well on our way to improving 250 million lives in out-of-hospital healthcare in 2025.”


RMD Second Quarter 2020 Earnings Press Release – January 30, 2020    Page 2 of 10

 

Financial Results and Operating Metrics

Unaudited; $ in millions, except for per share amounts

 

     Three Months Ended  
     December 31,
2019
    December 31,
2018
    % Change     Constant
Currency (A)
 

Revenue

   $ 736.2     $ 651.1       13     14

Gross margin (B)

     58.0     57.5     1    

Non-GAAP gross margin (B)

     59.7     59.1     1    

Selling, general and administrative expenses

     171.4       161.6       6       8  

Research and development expenses

     49.9       43.1       16       18  

Income from operations

     197.8       157.1       26    

Non-GAAP income from operations (B)

     218.5       181.1       21    

Net income

     160.6       124.6       29    

Non-GAAP net income (B)

     176.3       144.5       22    

Diluted earnings per share

   $ 1.10     $ 0.86       28    

Non-GAAP diluted earnings per share (B)

   $ 1.21     $ 1.00       21    
     Six Months Ended  
     December 31,
2019
    December 31,
2018
    % Change     Constant
Currency (A)
 

Revenue

   $  1,417.2     $  1,239.4       14     15

Gross margin (B)

     57.8     57.3     1    

Non-GAAP gross margin (B)

     59.6     58.7     2    

Selling, general and administrative expenses

     338.9       308.9       10       12  

Research and development expenses

     98.0       81.9       20       22  

Income from operations

     368.9       301.2       22    

Non-GAAP income from operations (B)

     409.5       338.1       21    

Net income

     280.7       230.4       22    

Non-GAAP net income (B)

     311.7       260.7       20    

Diluted earnings per share

   $ 1.93     $ 1.60       21    

Non-GAAP diluted earnings per share (B)

   $ 2.14     $ 1.81       18    

 

(A)

In order to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency fluctuations, we provide certain financial information on a “constant currency basis,” which is in addition to the actual financial information presented. In order to calculate our constant currency information, we translate the current period financial information using the foreign currency exchange rates that were in effect during the previous comparable period. However, constant currency measures should not be considered in isolation or as an alternative to U.S. dollar measures that reflect current period exchange rates, or to other financial measures calculated and presented in accordance with U.S. GAAP.

(B)

See the reconciliation of non-GAAP financial measures in the table at the end of the press release.

Discussion of Second Quarter Results

 

  •  

Revenue in the U.S., Canada, and Latin America, excluding Software as a Service, grew by 14 percent compared to the prior year period, driven by strong sales across our mask and device product portfolios.

 

  •  

Revenue in combined Europe, Asia, and other markets grew by 8 percent on a constant currency basis compared to the same period of the prior year, primarily driven by strong mask sales.

 

  •  

Software as a Service revenue increased by 37 percent, compared to the prior year period, due to continued growth in Brightree service offerings and incremental contribution from the acquisition of MatrixCare, which closed in the second quarter of fiscal year 2019.


RMD Second Quarter 2020 Earnings Press Release – January 30, 2020    Page 3 of 10

 

  •  

Gross Margin expanded by 50 basis points over the prior year. Non-GAAP gross margin expanded by 60 basis points over the prior year period, primarily due to benefits from product mix changes and manufacturing and procurement efficiencies, partially offset by declines in average selling prices.

 

  •  

Selling, general, and administrative expenses increased by 6 percent compared to the prior year period, or by 8 percent on a constant currency basis. Excluding the impact of recent acquisitions, selling, general, and administrative expenses increased by 2 percent on a constant currency basis. SG&A expenses improved to 23.3 percent of revenue in the quarter, compared with 24.8 percent in the same period of the prior year.

 

  •  

Income from operations increased by 26 percent and non-GAAP income from operations increased by 21 percent compared to the prior year period.

 

  •  

Net income grew by 29 percent and diluted earnings per share grew by 28 percent compared to the prior year quarter. Non-GAAP net income grew by 22 percent and non-GAAP diluted earnings per share grew by 21 percent compared with the prior year quarter, predominantly attributable to strong sales, particularly in masks, coupled with controlled operating costs.

 

  •  

Cash flow from operations for the quarter was $69.9 million, compared to net income in the current quarter of $160.6 million. Cash flow from operations included tax payments of $111.0 million and legal settlement payments of $40.6 million. During the quarter we paid $56.1 million in dividends.

Other Business and Operational Highlights

 

  •  

Announced a collaboration agreement with Cerner Corporation (NASDAQ: CERN), designating ResMed’s Brightree Home Health and Hospice platform as its preferred solution to integrate with its Cerner Millenium® electronic health record.

 

  •  

Introduced AirFit N30, the world’s first tube-down nasal cradle CPAP mask with a front-facing tube, a brand new option for sleep apnea treatment. Other key features include an adjustable elastic headgear, a nasal cradle cushion that sits under the nasal bridge to eliminate soreness, and a curved design to provide a secure seal regardless of how the wearer sleeps or moves.

 

  •  

Announced an upgraded AirView for Respiratory program that provides HMEs and physicians with quicker access to essential respiratory patient data, including more granular clinical data and respiration trends, and management by exception, allowing them to provide better care.

 

  •  

Agreed in January to acquire SnapWorx, a privately held software company providing patient contact management and workflow optimization for the sleep apnea resupply market. SnapWorx’s software platform automates workflow and document retrieval in ways that complement Brightree’s industry-leading, multi-channel resupply solution. The combination of Brightree ReSupply’s technology and live call services with SnapWorx creates the most comprehensive set of resupply solutions in the industry. The transaction is expected to close shortly. It is expected to be initially neutral to non-GAAP earnings per share, and accretive to non-GAAP earnings per share in fiscal year 2021.

Dividend program

The ResMed board of directors today declared a quarterly cash dividend of $0.39 per share. The dividend will have a record date of February 13, 2020, payable on March 19, 2020. The dividend will be paid in U.S. currency to holders of ResMed’s common stock trading on the New York Stock Exchange. Holders of Chess Depositary Instruments 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. The ex-dividend date will be February 12, 2020, for common stockholders and for CDI holders. 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 February 12, 2020, through February 13, 2020, inclusive.     


RMD Second Quarter 2020 Earnings Press Release – January 30, 2020    Page 4 of 10

 

Webcast details

ResMed will discuss its second quarter fiscal year 2020 results on its webcast at 1:30 p.m. U.S. Pacific Time today. The live webcast of the call can be accessed on ResMed’s Investor Relations website at investor.resmed.com. Please go to this section of the website and click on the icon for the “Q2 2020 Earnings Webcast” to register and listen to the live webcast. A replay of the earnings webcast will be accessible on the website and available approximately two hours after the live webcast. In addition, a telephone replay of the conference call will be available approximately two hours after the webcast by dialing +1 800-585-8367 (U.S.) or +1 416-621-4642 (outside U.S.) and entering the passcode 8829576. The telephone replay will be available until February 13, 2020.

About ResMed

At ResMed (NYSE: RMD, ASX: RMD) we pioneer innovative solutions that treat and keep people out of the hospital, empowering them to live healthier, higher-quality lives. Our cloud-connected medical devices transform care for people with sleep apnea, COPD, and other chronic diseases. Our comprehensive out-of-hospital software platforms support the professionals and caregivers who help people stay healthy in the home or care setting of their choice. By enabling better care, we improve quality of life, reduce the impact of chronic disease, and lower costs for consumers and healthcare systems in more than 140 countries. To learn more, visit ResMed.com and follow @ResMed.

Safe harbor statement

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 ResMed’s projections of future revenue or earnings, expenses, new product development, new product launches, new markets for its products, the integration of acquisitions, litigation, and tax outlook – are subject to risks and uncertainties, which could cause actual results to materially differ from those projected or implied in the forward-looking statements. Additional risks and uncertainties are discussed in ResMed’s periodic reports on file with the U.S. Securities & Exchange Commission. ResMed does not undertake to update its forward-looking statements.

 

– More –


RMD Second Quarter 2020 Earnings Press Release – January 30, 2020    Page 5 of 10

 

RESMED INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Income

(Unaudited; $ in thousands, except for per share amounts)

 

     Three Months Ended     Six Months Ended  
     December 31,
2019
    December 31,
2018
    December 31,
2019
    December 31,
2018
 

Net revenue

   $  736,157     $  651,100     $  1,417,213     $  1,239,380  

Cost of sales

     296,975       267,369       572,976       512,556  

Amortization of acquired intangibles (1)

     12,052       9,199       25,488       16,154  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total cost of sales

   $ 309,027     $ 276,568     $ 598,464     $ 528,710  
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

   $ 427,130     $ 374,532     $ 818,749     $ 710,670  

Selling, general and administrative

     171,422       161,579       338,862       308,881  

Research and development

     49,943       43,111       97,976       81,902  

Amortization of acquired intangibles (1)

     8,556       6,641       13,599       12,553  

Litigation settlement expenses (1)

     (600     —         (600     —    

Acquisition-related expenses (1)

     —         6,123       —         6,123  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

   $ 229,321     $ 217,454     $ 449,837     $ 409,459  

Income from operations

     197,809       157,078       368,912       301,211  

Other income (expenses), net:

        

Interest income (expense), net

   $  (10,018   $ (6,809   $ (20,562   $ (9,595

Loss attributable to equity method investments

     (6,924     (3,375     (13,786     (3,375

Other, net

     (2,115     (621     (5,225     (3,086
  

 

 

   

 

 

   

 

 

   

 

 

 

Total other income (expenses), net

     (19,057     (10,805     (39,573     (16,056
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

   $ 178,752     $ 146,273     $ 329,339     $ 285,155  

Income taxes

     18,198       21,634       48,637       54,778  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 160,554     $ 124,639     $ 280,702     $ 230,377  
  

 

 

   

 

 

   

 

 

   

 

 

 

Basic earnings per share

   $ 1.11     $ 0.87     $ 1.95     $ 1.61  

Diluted earnings per share

   $ 1.10     $ 0.86     $ 1.93     $ 1.60  

Non-GAAP diluted earnings per share (1)

   $ 1.21     $ 1.00     $ 2.14     $ 1.81  

Basic shares outstanding

     144,212       142,923       143,966       142,796  

Diluted shares outstanding

     145,575       144,349       145,479       144,418  

 

(1)

See the reconciliation of non-GAAP financial measures in the table at the end of the press release.

 

– More –


RMD Second Quarter 2020 Earnings Press Release – January 30, 2020    Page 6 of 10

 

RESMED INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(Unaudited; $ in thousands)

 

     December 31,
2019
    June 30,
2019
 

ASSETS

    

Current assets:

    

Cash and cash equivalents

   $ 204,095     $ 147,128  

Accounts receivable, net

     528,039       528,484  

Inventories

     377,784       349,641  

Prepayments and other current assets

     190,567       120,113  
  

 

 

   

 

 

 

Total current assets

   $ 1,300,485     $ 1,145,366  

Non-current assets:

    

Property, plant and equipment, net

   $ 408,364     $ 387,460  

Operating lease right-of-use assets

     96,745       —    

Goodwill and other intangibles, net

     2,351,508       2,378,399  

Deferred income taxes and other non-current assets

     196,837       196,457  
  

 

 

   

 

 

 

Total non-current assets

   $ 3,053,454     $ 2,962,316  
  

 

 

   

 

 

 

Total assets

   $ 4,353,939     $ 4,107,682  
  

 

 

   

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY:

    

Current liabilities:

    

Accounts payable

   $ 114,322     $ 115,725  

Accrued expenses

     217,847       266,359  

Operating lease liabilities, current

     20,038       —    

Deferred revenue

     92,950       88,667  

Income taxes payable

     42,904       73,248  

Short-term debt

     11,984       11,992  
  

 

 

   

 

 

 

Total current liabilities

   $ 500,045     $ 555,991  

Non-current liabilities:

    

Deferred revenue

   $ 86,140     $ 81,143  

Deferred income taxes

     27,709       11,380  

Operating lease liabilities, non-current

     79,458       —    

Other long term liabilities

     2,062       2,058  

Long-term debt

     1,287,509       1,258,861  

Long-term income taxes payable

     112,910       126,056  
  

 

 

   

 

 

 

Total non-current liabilities

   $ 1,595,788     $ 1,479,498  
  

 

 

   

 

 

 

Total liabilities

   $ 2,095,833     $ 2,035,489  
  

 

 

   

 

 

 

STOCKHOLDERS’ EQUITY:

    

Common stock

   $ 578     $ 575  

Additional paid-in capital

     1,521,992       1,511,473  

Retained earnings

     2,604,910       2,436,410  

Treasury stock

     (1,623,256     (1,623,256

Accumulated other comprehensive income

     (246,118     (253,009
  

 

 

   

 

 

 

Total stockholders’ equity

   $ 2,258,106     $ 2,072,193  
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 4,353,939     $ 4,107,682  
  

 

 

   

 

 

 

 

– More –


RMD Second Quarter 2020 Earnings Press Release – January 30, 2020    Page 7 of 10

 

RESMED INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(Unaudited; $ in thousands)

 

     Six Months Ended  
     December 31,
2019
    December 31,
2018
 

Cash flows from operating activities:

    

Net income

   $ 280,702     $ 230,377  

Adjustment to reconcile net income to cash provided by operating activities:

    

Depreciation and amortization

     77,077       66,453  

Amortization of right-of-use-assets

     12,323       —    

Stock-based compensation costs

     27,309       25,011  

Loss attributable to equity method investments

     13,786       3,375  

Impairment of equity investments

     5,419       2,959  

Changes in fair value of business combination contingent consideration

     (7     (272

Changes in operating assets and liabilities, net of effect of acquisitions:

    

Accounts receivable, net

     (275     32,366  

Inventories, net

     (28,294     (30,570

Prepaid expenses, net deferred income taxes and other current assets

     (66,818     (26,922

Accounts payable, accrued expenses and other

     (88,927     (125,190
  

 

 

   

 

 

 

Net cash provided by operating activities

   $ 232,295     $ 177,587  

Cash flows from investing activities:

    

Purchases of property, plant and equipment

     (47,771     (31,425

Patent registration costs

     (4,871     (4,643

Business acquisitions, net of cash acquired

     (3,423     (739,249

Purchases of investments

     (21,841     (27,967

Proceeds / (Payments) on maturity of foreign currency contracts

     1,064       (3,127
  

 

 

   

 

 

 

Net cash used in investing activities

   $  (76,842   $  (806,411

Cash flows from financing activities:

    

Proceeds from issuance of common stock, net

     24,297       12,784  

Taxes paid related to net share settlement of equity awards

     (41,091     (27,340

Purchases of treasury stock

     —         (22,844

Payment of business combination contingent consideration

     (302     (430

Proceeds from borrowings, net of borrowing costs

     730,000       1,091,230  

Repayment of borrowings

     (700,012     (352,798

Dividends paid

     (112,202     (105,567
  

 

 

   

 

 

 

Net cash (used in) / provided by financing activities

   $  (99,310   $ 595,035  
  

 

 

   

 

 

 

Effect of exchange rate changes on cash

   $ 824     $ (5,444
  

 

 

   

 

 

 

Net increase / (decrease) in cash and cash equivalents

     56,967       (39,233

Cash and cash equivalents at beginning of period

     147,128       188,701  
  

 

 

   

 

 

 

Cash and cash equivalents at end of period

   $ 204,095     $ 149,468  
  

 

 

   

 

 

 

 

– More –


RMD Second Quarter 2020 Earnings Press Release – January 30, 2020    Page 8 of 10

 

RESMED INC. AND SUBSIDIARIES

Reconciliation of Non-GAAP Financial Measures

(Unaudited; $ in thousands, except for per share amounts)

The measures “non-GAAP gross profit” and “non-GAAP gross margin” excludes amortization expense from acquired intangibles related to cost of sales and are reconciled below:

 

     Three Months Ended     Six Months Ended  
     December 31,
2019
    December 31,
2018
    December 31,
2019
    December 31,
2018
 

Revenue

   $  736,157   $  651,100   $  1,417,213   $  1,239,380

Add back: Deferred revenue fair value adjustment (A)

     657     2,029     2,102     2,029
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP Revenue

   $  736,814   $  653,129   $  1,419,315   $  1,241,409

GAAP Cost of sales

   $  309,027   $  276,568   $ 598,464   $ 528,710

Less: Amortization of acquired intangibles (A)

     (12,052     (9,199     (25,488     (16,154
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP cost of sales

   $  296,975   $  267,369   $ 572,976   $ 512,556

GAAP gross profit

     427,130     374,532     818,749     710,670

GAAP gross margin

     58.0     57.5     57.8     57.3

Non-GAAP gross profit

     439,839     385,760     846,339     728,853

Non-GAAP gross margin

     59.7     59.1     59.6     58.7

The measure “non-GAAP income from operations” is reconciled with GAAP income from operations below:

 

     Three Months Ended      Six Months Ended  
     December 31,
2019
    December 31,
2018
     December 31,
2019
    December 31,
2018
 

GAAP income from operations

   $  197,809   $  157,078    $  368,912   $  301,211

Amortization of acquired intangibles - cost of sales (A)

     12,052     9,199      25,488     16,154

Amortization of acquired intangibles - operating expenses (A)

     8,556     6,641      13,599     12,553

Deferred revenue fair value adjustment (A)

     657     2,029      2,102     2,029

Litigation settlement expenses (A)

     (600     —          (600     —    

Acquisition related expenses (A)

     —         6,123      —         6,123
  

 

 

   

 

 

    

 

 

   

 

 

 

Non-GAAP income from operations

   $  218,474   $  181,070    $  409,501   $  338,070
  

 

 

   

 

 

    

 

 

   

 

 

 

 

– More –


RMD Second Quarter 2020 Earnings Press Release – January 30, 2020    Page 9 of 10

 

RESMED INC. AND SUBSIDIARIES

Reconciliation of Non-GAAP Financial Measures

(Unaudited; $ in thousands, except for per share amounts)

The measures “non-GAAP net income” and “non-GAAP diluted earnings per share” are reconciled with GAAP net income and GAAP diluted earnings per share in the table below:

 

     Three Months Ended      Six Months Ended  
     December 31,
2019
    December 31,
2018
     December 31,
2019
    December 31,
2018
 

GAAP net income

   $ 160,554   $ 124,639    $ 280,702   $ 230,377

Amortization of acquired intangibles - cost of sales, net of tax (A)

     9,210     7,127      19,478     12,525

Amortization of acquired intangibles - operating expenses, net of tax (A)

     6,538     5,144      10,392     9,733

Deferred revenue fair value adjustment, net of tax (A)

     503     1,554      1,610     1,554

Litigation settlement expenses, net of tax (A)

     (528     —          (528     —    

Acquisition-related expenses (A)

     —         5,362      —         5,362

U.S. tax reform transition impact (A)

     —         644      —         1,178
  

 

 

   

 

 

    

 

 

   

 

 

 

Non-GAAP net income (A)

   $  176,277   $  144,470    $  311,654   $  260,729
  

 

 

   

 

 

    

 

 

   

 

 

 

Diluted shares outstanding

     145,575     144,349      145,479     144,418

GAAP diluted earnings per share

   $ 1.10   $ 0.86    $ 1.93   $ 1.60

Non-GAAP diluted earnings per share (A)

   $ 1.21   $ 1.00    $ 2.14   $ 1.81

 

(A)

ResMed adjusts for the impact of the amortization of acquired intangibles, deferred revenue fair value adjustment, litigation settlement expenses, acquisition-related expenses, and the impact of U.S. tax reform on income tax expense from their evaluation of ongoing operations, and believes that investors benefit from adjusting these items to facilitate a more meaningful evaluation of current operating performance.

ResMed believes that non-GAAP diluted earnings per share is an additional measure of performance that investors can use to compare operating results between reporting periods. ResMed uses non-GAAP information internally in planning, forecasting, and evaluating the results of operations in the current period and in comparing it to past periods. ResMed believes this information provides investors better insight when evaluating ResMed’s performance from core operations and provides consistent financial reporting. The use of non-GAAP measures is intended to supplement, and not to replace, the presentation of net income and other GAAP measures. Like all non-GAAP measures, non-GAAP earnings are subject to inherent limitations because they do not include all the expenses that must be included under GAAP.

 

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RMD Second Quarter 2020 Earnings Press Release – January 30, 2020    Page 10 of 10

 

RESMED INC. AND SUBSIDIARIES

Revenue by Product and Region

(Unaudited; $ in thousands, except for per share amounts)

 

     Three Months Ended  
     December 31,
2019
     December 31,
2018
     % Change     Constant
Currency (A)
 

U.S., Canada and Latin America

          

Devices

   $ 203.5      $ 186.5        9  

Masks and other

     204.5        172.0        19    
  

 

 

    

 

 

    

 

 

   

Total Sleep and Respiratory Care

   $ 408.0      $ 358.5        14    

Software as a Service

     86.7        63.2        37    
  

 

 

    

 

 

    

 

 

   

Total

   $ 494.7      $ 421.7        17    
  

 

 

    

 

 

    

 

 

   

Combined Europe, Asia and other markets

          

Devices

   $ 162.3      $ 156.2        4     6

Masks and other

     79.2        73.2        8       11  
  

 

 

    

 

 

    

 

 

   

 

 

 

Total Sleep and Respiratory Care

   $ 241.5      $ 229.4        5       8  

Global revenue

          

Devices

   $ 365.8      $ 342.7        7     8

Masks and other

     283.7        245.2        16       16  
  

 

 

    

 

 

    

 

 

   

 

 

 

Total Sleep and Respiratory Care

   $ 649.5      $ 587.9        10       11  

Software as a Service

     86.7        63.2        37       37  
  

 

 

    

 

 

    

 

 

   

 

 

 

Total

   $ 736.2      $ 651.1        13       14  
  

 

 

    

 

 

    

 

 

   

 

 

 
     Six Months Ended  
     December 31,
2019
     December 31,
2018
     % Change     Constant
Currency (A)
 

U.S., Canada and Latin America

          

Devices

   $ 390.4      $ 358.9        9  

Masks and other

     387.8        326.1        19    
  

 

 

    

 

 

    

 

 

   

Total Sleep and Respiratory Care

   $ 778.2      $ 685.0        14    

Software as a Service

     173.6        110.7        57    
  

 

 

    

 

 

    

 

 

   

Total

   $ 951.8      $ 795.7        20    
  

 

 

    

 

 

    

 

 

   

Combined Europe, Asia and other markets

          

Devices

   $ 314.2      $ 307.9        2     5

Masks and other

     151.2        135.8        11       15  
  

 

 

    

 

 

    

 

 

   

 

 

 

Total Sleep and Respiratory Care

   $ 465.4      $ 443.7        5       8  

Global revenue

          

Devices

   $ 704.6      $ 666.8        6     7

Masks and other

     539.0        461.9        17       18  
  

 

 

    

 

 

    

 

 

   

 

 

 

Total Sleep and Respiratory Care

   $  1,243.6      $  1,128.7        10       11  

Software as a Service

     173.6        110.7        57       57  
  

 

 

    

 

 

    

 

 

   

 

 

 

Total

   $ 1,417.2      $ 1,239.4        14       15  
  

 

 

    

 

 

    

 

 

   

 

 

 

 

(A)

In order to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency fluctuations, we provide certain financial information on a “constant currency basis,” which is in addition to the actual financial information presented. In order to calculate our constant currency information, we translate the current period financial information using the foreign currency exchange rates that were in effect during the previous comparable period. However, constant currency measures should not be considered in isolation or as an alternative to U.S. dollar measures that reflect current period exchange rates, or to other financial measures calculated and presented in accordance with U.S. GAAP.

 

– End –