Form: 8-K

Current report filing

January 28, 2021

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 2021

 

  –

Year-over-year revenue grows 9%, operating profit up 12%, non-GAAP operating profit up 16%

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 28, 2021 – ResMed Inc. (NYSE: RMD, ASX: RMD), a world-leading digital health company, today announced results for its quarter ended December 31, 2020.

Second Quarter 2021 Highlights

All comparisons are to the prior year period

 

  •  

Revenue increased 9% to $800.0 million; up 7% on a constant currency basis

 

  •  

GAAP gross margin of 57.8%; non-GAAP gross margin expanded 20 bps to 59.9%

 

  •  

Net operating profit increased 12%; non-GAAP operating profit up 16%

 

  •  

GAAP diluted earnings per share of $1.23; non-GAAP diluted earnings per share of $1.41

“Our second-quarter results reflect continued solid performance and positive trends across our business resulting in top-line growth as well as double-digit improvement in operating income and earnings per share,” said Mick Farrell, ResMed CEO. “In our core markets of sleep apnea, COPD, and asthma, we are seeing continued sequential improvement in new patient volume and ongoing adoption of our mask and accessories resupply programs. Our global teams have managed SG&A investments judiciously as we navigate through the global pandemic. We have seen great adoption of digital health and an increase in the importance of out-of-hospital healthcare these last 12 months, and that will only expand throughout 2021 as vaccines become more widely available, and our communities open up worldwide. We have continued to invest in focused R&D programs in digital health and core medtech innovation, to help accelerate our ResMed growth strategy: improving 250 million lives in out-of-hospital healthcare in 2025.”


RMD Second Quarter 2021 Earnings Press Release – January 28, 2021    Page 2 of 10

 

Financial Results and Operating Metrics

Unaudited; $ in millions, except for per share amounts

 

     Three Months Ended  
     December 31,
2020
    December 31,
2019
    % Change     Constant
Currency (A)
 

Revenue

   $ 800.0     $ 736.2       9     7

Gross margin (B)

     57.8     58.0     (0  

Non-GAAP gross margin (B)

     59.9     59.7     0    

Selling, general, and administrative expenses

     169.5       171.4       (1     (3

Research and development expenses

     54.9       49.9       10       7  

Income from operations

     221.7       197.8       12    

Non-GAAP income from operations (B)

     254.5       218.5       16    

Net income

     179.5       160.6       12    

Non-GAAP net income (B)

     206.4       176.3       17    

Diluted earnings per share

   $ 1.23     $ 1.10       12    

Non-GAAP diluted earnings per share (B)

   $ 1.41     $ 1.21       17    
     Six Months Ended  
     December 31,
2020
    December 31,
2019
    % Change     Constant
Currency (A)
 

Revenue

   $ 1,552.0     $ 1,417.2       10     8

Gross margin (B)

     58.1     57.8     1    

Non-GAAP gross margin (B)

     59.9     59.6     1    

Selling, general, and administrative expenses

     328.5       338.9       (3     (5

Research and development expenses

     109.5       98.0       12       9  

Income from operations

     438.6       368.9       19    

Non-GAAP income from operations (B)

     491.6       409.5       20    

Net income

     357.9       280.7       27    

Non-GAAP net income (B)

     391.8       311.7       26    

Diluted earnings per share

   $ 2.45     $ 1.93       27    

Non-GAAP diluted earnings per share (B)

   $ 2.68     $ 2.14       25    

 

(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

All comparisons are to the prior year period unless otherwise noted

 

•  

Revenue in the U.S., Canada, and Latin America, excluding Software as a Service, grew by 5 percent, driven by strong sales across our mask product portfolio.

 

•  

Revenue in Europe, Asia, and other markets grew by 10 percent on a constant currency basis, primarily driven by sales across our device and mask product portfolio.

 

•  

Software as a Service revenue increased by 6 percent, due to continued growth in resupply service offerings and stabilizing patient flow in out-of-hospital care settings.

 

•  

Gross margin contracted by 20 basis points mainly due to restructuring expenses associated with the cessation of our portable oxygen concentrator business. Non-GAAP gross margin expanded by 20 basis points, mainly due to benefits from manufacturing efficiencies, product mix changes, and foreign exchange rates, partially offset by declines in average selling prices.


RMD Second Quarter 2021 Earnings Press Release – January 28, 2021    Page 3 of 10

 

•  

Selling, general, and administrative expenses decreased by 3 percent on a constant currency basis. SG&A expenses improved to 21.2 percent of revenue in the quarter, compared with 23.3 percent in the same period of the prior year. These changes in SG&A expenses were mainly due to savings in travel and other cost management as a result of the COVID-19 pandemic.

 

•  

Income from operations increased by 12 percent and non-GAAP income from operations increased by 16 percent.

 

•  

Net income grew by 12 percent and diluted earnings per share grew by 12 percent. Non-GAAP net income grew by 17 percent and non-GAAP diluted earnings per share grew by 17 percent, predominantly attributable to strong sales and controlled operating costs.

 

•  

Cash flow from operations for the quarter was $169.9 million, compared to net income in the current quarter of $179.5 million. During the quarter we paid $56.7 million in dividends.

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 11, 2021, payable on March 18, 2021. 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 Interests (“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. The ex-dividend date will be February 10, 2021, 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 10, 2021, through February 11, 2021, inclusive.

Webcast details

ResMed will discuss its second quarter fiscal year 2021 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 2021 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 4291663. The telephone replay will be available until February 11, 2021.

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 digital health technologies and 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.


RMD Second Quarter 2021 Earnings Press Release – January 28, 2021    Page 4 of 10

 

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 2021 Earnings Press Release – January 28, 2021    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,
2020
    December 31,
2019
    December 31,
2020
    December 31,
2019
 

Net revenue

   $ 800,011     $ 736,157     $ 1,551,955     $ 1,417,213  

Cost of sales

     321,132       296,975       622,436       572,976  

Amortization of acquired intangibles (1)

     11,164       12,052       23,143       25,488  

Restructuring - cost of sales (1)

     5,232       —         5,232       —    
  

 

 

   

 

 

   

 

 

   

 

 

 

Total cost of sales

   $ 337,528     $ 309,027     $ 650,811     $ 598,464  
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

   $ 462,483     $ 427,130     $ 901,144     $ 818,749  

Selling, general, and administrative

     169,470       171,422       328,459       338,862  

Research and development

     54,935       49,943       109,468       97,976  

Amortization of acquired intangibles (1)

     7,689       8,556       15,932       13,599  

Restructuring - operating expenses (1)

     8,673       —         8,673       —    

Litigation settlement expenses (1)

     —         (600     —         (600
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

   $ 240,767     $ 229,321     $ 462,532     $ 449,837  

Income from operations

     221,716       197,809       438,612       368,912  

Other income (expenses), net:

        

Interest income (expense), net

   $ (5,792   $ (10,018   $ (12,517   $ (20,562

Loss attributable to equity method investments

     (2,640     (6,924     (4,928     (13,786

Other, net

     (2,692     (2,115     5,279       (5,225
  

 

 

   

 

 

   

 

 

   

 

 

 

Total other income (expenses), net

     (11,124     (19,057     (12,166     (39,573
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

   $ 210,592     $ 178,752     $ 426,446     $ 329,339  

Income taxes

     31,078       18,198       68,560       48,637  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 179,514     $ 160,554     $ 357,886     $ 280,702  
  

 

 

   

 

 

   

 

 

   

 

 

 

Basic earnings per share

   $ 1.24     $ 1.11     $ 2.47     $ 1.95  

Diluted earnings per share

   $ 1.23     $ 1.10     $ 2.45     $ 1.93  

Non-GAAP diluted earnings per share (1)

   $ 1.41     $ 1.21     $ 2.68     $ 2.14  

Basic shares outstanding

     145,246       144,212       145,053       143,966  

Diluted shares outstanding

     146,421       145,575       146,350       145,479  

 

(1)

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

– More –


RMD Second Quarter 2021 Earnings Press Release – January 28, 2021    Page 6 of 10

 

RESMED INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(Unaudited; $ in thousands)

 

     December 31,
2020
    June 30,
2020
 

ASSETS

    

Current assets:

    

Cash and cash equivalents

   $ 255,865     $ 463,156  

Accounts receivable, net

     509,364       474,643  

Inventories

     474,821       416,915  

Prepayments and other current assets

     211,435       168,745  
  

 

 

   

 

 

 

Total current assets

   $ 1,451,485     $ 1,523,459  

Non-current assets:

    

Property, plant, and equipment, net

   $ 459,472     $ 417,335  

Operating lease right-of-use assets

     131,291       118,348  

Goodwill and other intangibles, net

     2,323,490       2,338,492  

Deferred income taxes and other non-current assets

     207,118       189,742  
  

 

 

   

 

 

 

Total non-current assets

   $ 3,121,371     $ 3,063,917  
  

 

 

   

 

 

 

Total assets

   $ 4,572,856     $ 4,587,376  
  

 

 

   

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY:

    

Current liabilities:

    

Accounts payable

   $ 122,166     $ 135,786  

Accrued expenses

     280,332       270,353  

Operating lease liabilities, current

     22,445       21,263  

Deferred revenue

     105,238       98,617  

Income taxes payable

     35,166       64,755  

Short-term debt

     11,988       11,987  
  

 

 

   

 

 

 

Total current liabilities

   $ 577,335     $ 602,761  

Non-current liabilities:

    

Deferred revenue

   $ 86,899     $ 87,307  

Deferred income taxes

     12,733       13,011  

Operating lease liabilities, non-current

     117,641       101,880  

Other long term liabilities

     9,481       8,347  

Long-term debt

     813,732       1,164,133  

Long-term income taxes payable

     90,051       112,910  
  

 

 

   

 

 

 

Total non-current liabilities

   $ 1,130,537     $ 1,487,588  
  

 

 

   

 

 

 

Total liabilities

   $ 1,707,872     $ 2,090,349  
  

 

 

   

 

 

 

STOCKHOLDERS’ EQUITY:

    

Common stock

   $ 582     $ 580  

Additional paid-in capital

     1,574,240       1,570,694  

Retained earnings

     3,076,569       2,832,991  

Treasury stock

     (1,623,256     (1,623,256

Accumulated other comprehensive income

     (163,151     (283,982
  

 

 

   

 

 

 

Total stockholders’ equity

   $ 2,864,984     $ 2,497,027  
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 4,572,856     $ 4,587,376  
  

 

 

   

 

 

 

– More –


RMD Second Quarter 2021 Earnings Press Release – January 28, 2021    Page 7 of 10

 

RESMED INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(Unaudited; $ in thousands)

 

     Six Months Ended  
     December 31,
2020
    December 31,
2019
 

Cash flows from operating activities:

    

Net income

   $ 357,886     $ 280,702  

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

    

Depreciation and amortization

     80,046       77,077  

Amortization of right-of-use assets

     17,911       12,323  

Stock-based compensation costs

     31,441       27,309  

Loss attributable to equity method investments

     4,928       13,786  

(Gain) loss on equity investment

     (4,776     5,419  

Restructuring expenses

     8,673       —    

Changes in fair value of business combination contingent consideration

     500       (7

Changes in operating assets and liabilities:

    

Accounts receivable, net

     (19,259     (275

Inventories, net

     (34,212     (28,294

Prepaid expenses, net deferred income taxes, and other current assets

     (29,875     (66,818

Accounts payable, accrued expenses, and other

     (99,348     (88,927
  

 

 

   

 

 

 

Net cash provided by operating activities

   $ 313,915     $ 232,295  

Cash flows from investing activities:

    

Purchases of property, plant, and equipment

     (48,443     (47,771

Patent registration costs

     (8,367     (4,871

Business acquisitions, net of cash acquired

     (437     (3,423

Purchases of investments

     (14,446     (21,841

Proceeds / (Payments) on maturity of foreign currency contracts

     19,922       1,064  
  

 

 

   

 

 

 

Net cash used in investing activities

   $ (51,771   $ (76,842

Cash flows from financing activities:

    

Proceeds from issuance of common stock, net

     18,614       24,297  

Taxes paid related to net share settlement of equity awards

     (46,507     (41,091

Payment of business combination contingent consideration

     —         (302

Proceeds from borrowings, net of borrowing costs

     55,000       730,000  

Repayment of borrowings

     (406,000     (700,012

Dividends paid

     (113,165     (112,202
  

 

 

   

 

 

 

Net cash used in financing activities

   $ (492,058   $ (99,310
  

 

 

   

 

 

 

Effect of exchange rate changes on cash

   $ 22,623     $ 824  
  

 

 

   

 

 

 

Net increase / (decrease) in cash and cash equivalents

     (207,291     56,967  

Cash and cash equivalents at beginning of period

     463,156       147,128  
  

 

 

   

 

 

 

Cash and cash equivalents at end of period

   $ 255,865     $ 204,095  
  

 

 

   

 

 

 

– More –


RMD Second Quarter 2021 Earnings Press Release – January 28, 2021    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,
2020
    December 31,
2019
    December 31,
2020
    December 31,
2019
 

Revenue

   $ 800,011   $ 736,157   $ 1,551,955   $ 1,417,213

Add back: Deferred revenue fair value adjustment (A)

     —         657     —         2,102
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP Revenue

   $ 800,011   $ 736,814   $ 1,551,955   $ 1,419,315

GAAP Cost of sales

   $ 337,528   $ 309,027   $ 650,811   $ 598,464

Less: Amortization of acquired intangibles (A)

     (11,164     (12,052     (23,143     (25,488

Less: Restructuring - cost of sales (A)

     (5,232     —         (5,232     —    
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP cost of sales

   $ 321,132   $ 296,975   $ 622,436   $ 572,976

GAAP gross profit

   $ 462,483   $ 427,130   $ 901,144   $ 818,749

GAAP gross margin

     57.8     58.0     58.1     57.8

Non-GAAP gross profit

   $ 478,879   $ 439,839   $ 929,519   $ 846,339

Non-GAAP gross margin

     59.9     59.7     59.9     59.6

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

 

     Three Months Ended      Six Months Ended  
     December 31,
2020
     December 31,
2019
     December 31,
2020
     December 31,
2019
 

GAAP income from operations

   $ 221,716    $ 197,809    $ 438,612    $ 368,912

Amortization of acquired intangibles - cost of sales (A)

     11,164      12,052      23,143      25,488

Amortization of acquired intangibles - operating expenses (A)

     7,689      8,556      15,932      13,599

Restructuring - cost of sales (A)

     5,232      —          5,232      —    

Restructuring - operating expenses (A)

     8,673      —          8,673      —    

Deferred revenue fair value adjustment (A)

     —          657      —          2,102

Litigation settlement expenses (A)

     —          (600      —          (600
  

 

 

    

 

 

    

 

 

    

 

 

 

Non-GAAP income from operations

   $ 254,474    $ 218,474    $ 491,592    $ 409,501
  

 

 

    

 

 

    

 

 

    

 

 

 


RMD Second Quarter 2021 Earnings Press Release – January 28, 2021    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,
2020
     December 31,
2019
     December 31,
2020
     December 31,
2019
 

GAAP net income

   $ 179,514    $ 160,554    $ 357,886    $ 280,702

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

     8,566      9,210      17,742      19,478

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

     5,900      6,538      12,214      10,392

Restructuring - cost of sales, net of tax (A)

     4,663      —          4,663      —    

Restructuring - operating expenses, net of tax (A)

     7,730      —          7,730      —    

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

     —          503      —          1,610

Litigation settlement expenses, net of tax (A)

     —          (528      —          (528

(Gain) loss on equity investments (A)

     —          —          (8,476      —    
  

 

 

    

 

 

    

 

 

    

 

 

 

Non-GAAP net income (A)

   $ 206,373    $ 176,277    $ 391,759    $ 311,654
  

 

 

    

 

 

    

 

 

    

 

 

 

Diluted shares outstanding

     146,421      145,575      146,350      145,479

GAAP diluted earnings per share

   $ 1.23    $ 1.10    $ 2.45    $ 1.93

Non-GAAP diluted earnings per share (A)

   $ 1.41    $ 1.21    $ 2.68    $ 2.14

 

(A)

ResMed adjusts for the impact of the amortization of acquired intangibles, restructuring expenses, deferred revenue fair value adjustment, litigation settlement expenses, and the (gain) loss on equity investments 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.

– More –


RMD Second Quarter 2021 Earnings Press Release – January 28, 2021    Page 10 of 10

 

RESMED INC. AND SUBSIDIARIES

Revenue by Product and Region

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

 

     Three Months Ended  
     December 31,
2020 (A)
     December 31,
2019 (A)
     % Change     Constant
Currency (B)
 

U.S., Canada, and Latin America

          

Devices

   $ 205.0      $ 203.5        1  

Masks and other

     221.8        204.5        8    
  

 

 

    

 

 

    

 

 

   

Total Sleep and Respiratory Care

   $ 426.8      $ 408.0        5    

Software as a Service

     91.8        86.7        6    
  

 

 

    

 

 

    

 

 

   

Total

   $ 518.6      $ 494.7        5    
  

 

 

    

 

 

    

 

 

   

Combined Europe, Asia, and other markets

          

Devices

   $ 188.0      $ 162.3        16     10

Masks and other

     93.4        79.2        18       12  
  

 

 

    

 

 

    

 

 

   

 

 

 

Total Sleep and Respiratory Care

   $ 281.4      $ 241.5        17       10  

Global revenue

          

Devices

   $ 393.0      $ 365.8        7     5

Masks and other

     315.2        283.7        11       9  
  

 

 

    

 

 

    

 

 

   

 

 

 

Total Sleep and Respiratory Care

   $ 708.2      $ 649.5        9       7  

Software as a Service

     91.8        86.7        6       6  
  

 

 

    

 

 

    

 

 

   

 

 

 

Total

   $ 800.0      $ 736.2        9       7  
  

 

 

    

 

 

    

 

 

   

 

 

 
     Six Months Ended  
     December 31,
2020 (A)
     December 31,
2019 (A)
     % Change     Constant
Currency (B)
 

U.S., Canada, and Latin America

          

Devices

   $ 402.4      $ 390.4        3  

Masks and other

     427.5        387.8        10    
  

 

 

    

 

 

    

 

 

   

Total Sleep and Respiratory Care

   $ 829.9      $ 778.2        7    

Software as a Service

     184.0        173.6        6    
  

 

 

    

 

 

    

 

 

   

Total

   $ 1,013.9      $ 951.8        7    
  

 

 

    

 

 

    

 

 

   

Combined Europe, Asia, and other markets

          

Devices

   $ 364.0      $ 314.2        16     11

Masks and other

     174.0        151.2        15       10  
  

 

 

    

 

 

    

 

 

   

 

 

 

Total Sleep and Respiratory Care

   $ 538.1      $ 465.4        16       10  

Global revenue

          

Devices

   $ 766.4      $ 704.6        9     6

Masks and other

     601.6        539.0        12       10  
  

 

 

    

 

 

    

 

 

   

 

 

 

Total Sleep and Respiratory Care

   $ 1,368.0      $ 1,243.6        10       8  

Software as a Service

     184.0        173.6        6       6  
  

 

 

    

 

 

    

 

 

   

 

 

 

Total

   $ 1,552.0      $ 1,417.2        10       8  
  

 

 

    

 

 

    

 

 

   

 

 

 

 

(A)

Totals and subtotals may not add due to rounding.

(B)

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 –