Form: 8-K

Current report filing

April 28, 2022

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 Third Quarter of Fiscal Year 2022

– Year-over-year revenue grows 12%, operating profit up 5%, non-GAAP operating profit up 5%

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, April 28, 2022 – ResMed Inc. (NYSE: RMD, ASX: RMD) today announced results for its quarter ended March 31, 2022.

Third Quarter 2022 Highlights

All comparisons are to the prior year period

 

  •  

Revenue increased by 12% to $864.5 million; up 14% on a constant currency basis

 

  •  

Gross margin contracted 140 bps to 56.8%; non-GAAP gross margin contracted 150 bps to 58.1%

 

  •  

Income from operations increased 5%; non-GAAP operating profit up 5%

 

  •  

Diluted earnings per share of $1.22; non-GAAP diluted earnings per share of $1.32

“Our third-quarter results reflect strong performance across our business, resulting in double-digit top-line revenue growth including extraordinary demand in our sleep and respiratory care business segment as well as solid high-single-digit growth in our software-as-a-service segment,” said Mick Farrell, ResMed CEO. “I am proud of our global team’s ability to pivot and drive continued growth while ongoing supply chain disruptions and a competitor’s recall continue to limit our ability to meet the incredible demand for our products. We remain focused on delivering products, software, and services for patients, working closely with our supply chain partners as well as physicians, providers, and beyond, to prioritize care for patients who most need it.

“While the current industry and macroeconomic environment remain uncertain, our long-term strategy allows us to keep our focus on helping 250 million lives in 2025. Our end-market demand from patients and providers remains strong, and our digital health technologies continue to deliver value. We are supporting patients with the world-leading portfolio of sleep apnea therapy, respiratory care therapy, and digital health solutions they need, as we deliver value for all of our customers.”


RMD Third Quarter 2022 Earnings Press Release – April 28, 2022    Page 2 of 11

 

Financial Results and Operating Metrics

Unaudited; $ in millions, except for per share amounts

 

     Three Months Ended  
    

March 31,

2022

    March 31,
2021
    % Change     Constant
Currency (A)
 

Revenue

   $ 864.5     $ 768.8       12     14

Gross margin (B)

     56.8     58.2     (2  

Non-GAAP gross margin (B)

     58.1     59.6     (3  

Selling, general, and administrative expenses

     182.4       160.4       14       17  

Research and development expenses

     66.8       55.9       19       22  

Income from operations

     234.3       223.4       5    

Non-GAAP income from operations (B)

     253.0       241.8       5    

Net income (loss)

     179.0       (78.5     NM    

Non-GAAP net income (B)

     193.3       190.4       2    

Diluted earnings (loss) per share

   $ 1.22     $ (0.54     NM    

Non-GAAP diluted earnings per share (B)

   $ 1.32     $ 1.30       2    

 

  NM

Not meaningful

 

     Nine Months Ended  
     March 31,
2022
    March 31,
2021
    % Change     Constant
Currency (A)
 

Revenue

   $ 2,663.4     $ 2,320.7       15     15

Gross margin (B)

     56.4     58.1     (3  

Non-GAAP gross margin (B)

     57.6     59.8     (4  

Selling, general, and administrative expenses

     544.5       488.9       11       13  

Research and development expenses

     189.3       165.4       14       15  

Income from operations

     744.9       662.0       13    

Non-GAAP income from operations (B)

     801.3       733.4       9    

Net income

     584.4       279.4       109    

Non-GAAP net income (B)

     631.5       582.2       8    

Diluted earnings per share

   $ 3.97     $ 1.91       108    

Non-GAAP diluted earnings per share (B)

   $ 4.30     $ 3.98       8    

 

  (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 Third Quarter Results

All comparisons are to the prior year period unless otherwise noted

 

•  

Revenue grew by 14 percent on a constant currency basis, driven by increased demand for our sleep and respiratory care devices and increased demand following a recent product recall by one of our competitors.

 

  •  

Revenue in the U.S., Canada, and Latin America, excluding software-as-a-service, grew by 18 percent, primarily due to the factors discussed above and recovery of core sleep patient flow that was previously impacted by COVID-19.


RMD Third Quarter 2022 Earnings Press Release – April 28, 2022    Page 3 of 11

 

  •  

Revenue in Europe, Asia, and other markets grew by 11 percent on a constant currency basis, primarily due to the factors discussed above.

 

  •  

Software-as-a-service revenue increased by 8 percent, due to continued growth in our Durable Medical Equipment category and stabilizing patient flow in out-of-hospital care settings.

 

•  

Gross margin decreased by 140 basis points and non-GAAP gross margin decreased by 150 basis points, mainly due to higher freight and manufacturing costs, partially offset by favorable product mix changes and increase in average selling prices.

 

•  

Selling, general, and administrative expenses increased by 17 percent on a constant currency basis. SG&A expenses increased to 21.1 percent of revenue in the quarter, compared with 20.9 percent in the same period of the prior year. These changes in SG&A expenses were mainly due to increases in employee-related expenses.

 

•  

Income from operations increased by 5 percent and non-GAAP income from operations increased by 5 percent.

 

•  

Net income for the quarter was $179.0 million and diluted earnings per share was $1.22. Non-GAAP net income grew by 2 percent and non-GAAP diluted earnings per share grew by 2 percent, predominantly attributable to strong sales, partially offset by higher operating expenses.

 

•  

Operating cash flow for the quarter was $117.4 million, compared to net income in the current quarter of $179.0 million and non-GAAP net income of $193.3 million. During the quarter we paid $61.4 million in dividends.

Other Business and Operational Highlights

 

•  

Announced appointment of Urvashi Tyagi as new Chief Technology Officer and Bobby Ghoshal transitions to be President of ResMed’s software-as-a-service business segment full-time. Tyagi leads ResMed’s digital health technology team, driving innovation and adoption of world-leading cloud-based digital health platforms and investments in emerging technologies.

 

•  

Published 2022 Global Sleep Surveys as part of National Sleep Awareness Week (March 13-19) and World Sleep Day (March 18). The surveys, conducted in the first quarter of the calendar year, asked nearly 25,000 respondents in 12 countries what’s keeping them up at night; the results aim to build awareness of the critical role good sleep plays in physical and mental health.

Dividend program

The ResMed board of directors today declared a quarterly cash dividend of $0.42 per share. The dividend will have a record date of May 12, 2022, payable on June 16, 2022. 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 May 11, 2022, 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 May 11, 2022, through May 12, 2022, inclusive.


RMD Third Quarter 2022 Earnings Press Release – April 28, 2022    Page 4 of 11

 

Webcast details

ResMed will discuss its third-quarter fiscal year 2022 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 “Q3 2022 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 +1 877-660-6853 (U.S.) or +1 201-612-7415 (outside U.S.) and entering the passcode 13727876. The telephone replay will be available until May 12, 2022.

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.

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 Third Quarter 2022 Earnings Press Release – April 28, 2022    Page 5 of 11

 

RESMED INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Operations

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

 

     Three Months Ended     Nine Months Ended  
     March 31,
2022
    March 31,
2021
    March 31,
2022
    March 31,
2021
 

Net revenue

   $ 864,500     $ 768,767     $ 2,663,390     $ 2,320,722  

Cost of sales

     362,321       310,585       1,128,314       933,021  

Amortization of acquired intangibles (1)

     10,982       10,924       33,271       34,066  

Restructuring—cost of sales (1)

     —         —         —         5,232  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total cost of sales

   $ 373,303     $ 321,509     $ 1,161,585     $ 972,319  
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

   $ 491,197     $ 447,258     $ 1,501,805     $ 1,348,403  

Selling, general, and administrative

     182,401       160,446       544,483       488,904  

Research and development

     66,801       55,941       189,258       165,409  

Amortization of acquired intangibles (1)

     7,730       7,445       23,175       23,377  

Restructuring—operating expenses (1)

     —         —         —         8,673  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

   $ 256,932     $ 223,832     $ 756,916     $ 686,363  

Income from operations

     234,265       223,426       744,889       662,040  

Other income (expenses), net:

        

Interest income (expense), net

   $ (5,462   $ (5,823   $ (16,770   $ (18,341

Loss attributable to equity method investments

     (2,627     (4,969     (5,927     (9,895

Gain (loss) on equity investments

     (1,735     4,666       (527     9,442  

Other, net

     1,878       705       729       1,205  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total other income (expenses), net

     (7,946     (5,421     (22,495     (17,589
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

   $ 226,319     $ 218,005     $ 722,394     $ 644,451  

Income taxes

     47,307       296,486       138,018       365,046  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

   $ 179,012     $ (78,481   $ 584,376     $ 279,405  
  

 

 

   

 

 

   

 

 

   

 

 

 

Basic earnings per share

   $ 1.22     $ (0.54   $ 4.00     $ 1.92  

Diluted earnings per share

   $ 1.22     $ (0.54   $ 3.97     $ 1.91  

Non-GAAP diluted earnings per share (1)

   $ 1.32     $ 1.30     $ 4.30     $ 3.98  

Basic shares outstanding

     146,240       145,513       145,969       145,217  

Diluted shares outstanding

     146,962       145,513       147,034       146,394  

 

(1)

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

 

– More –


RMD Third Quarter 2022 Earnings Press Release – April 28, 2022    Page 6 of 11

 

RESMED INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(Unaudited; $ in thousands)

 

     March 31,
2022
    June 30,
2021
 

ASSETS

    

Current assets:

    

Cash and cash equivalents

   $ 201,769     $ 295,278  

Accounts receivable, net

     508,580       614,292  

Inventories

     664,943       457,033  

Prepayments and other current assets

     329,008       208,154  
  

 

 

   

 

 

 

Total current assets

   $ 1,704,300     $ 1,574,757  

Non-current assets:

    

Property, plant, and equipment, net

   $ 513,250     $ 463,490  

Operating lease right-of-use assets

     141,173       128,575  

Goodwill and other intangibles, net

     2,302,301       2,320,483  

Deferred income taxes and other non-current assets

     244,240       240,820  
  

 

 

   

 

 

 

Total non-current assets

   $ 3,200,964     $ 3,153,368  
  

 

 

   

 

 

 

Total assets

   $ 4,905,264     $ 4,728,125  
  

 

 

   

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY:

    

Current liabilities:

    

Accounts payable

   $ 149,797     $ 138,008  

Accrued expenses

     326,276       320,599  

Operating lease liabilities, current

     24,130       23,585  

Deferred revenue

     112,449       109,611  

Income taxes payable

     42,646       307,963  

Short-term debt

     11,967       12,000  
  

 

 

   

 

 

 

Total current liabilities

   $ 667,265     $ 911,766  

Non-current liabilities:

    

Deferred revenue

   $ 94,094     $ 91,496  

Deferred income taxes

     10,711       11,319  

Operating lease liabilities, non-current

     127,254       114,779  

Other long-term liabilities

     5,103       6,802  

Long-term debt

     668,735       643,351  

Long-term income taxes payable

     53,298       62,933  
  

 

 

   

 

 

 

Total non-current liabilities

   $ 959,195     $ 930,680  
  

 

 

   

 

 

 

Total liabilities

   $ 1,626,460     $ 1,842,446  
  

 

 

   

 

 

 

STOCKHOLDERS’ EQUITY:

    

Common stock

   $ 585     $ 583  

Additional paid-in capital

     1,645,453       1,622,199  

Retained earnings

     3,480,163       3,079,640  

Treasury stock

     (1,623,256     (1,623,256

Accumulated other comprehensive income

     (224,141     (193,487
  

 

 

   

 

 

 

Total stockholders’ equity

   $ 3,278,804     $ 2,885,679  
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 4,905,264     $ 4,728,125  
  

 

 

   

 

 

 

 

– More –


RMD Third Quarter 2022 Earnings Press Release – April 28, 2022    Page 7 of 11

 

RESMED INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(Unaudited; $ in thousands)

 

     Nine months ended  
     March 31,
2022
    March 31,
2021
 

Cash flows from operating activities:

    

Net income

   $ 584,376     $ 279,405  

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

    

Depreciation and amortization

     122,198       120,034  

Amortization of right-of-use assets

     26,636       25,805  

Stock-based compensation costs

     49,265       47,032  

Loss attributable to equity method investments

     5,927       9,895  

(Gain) loss on equity investment

     527       (9,442

Restructuring expenses

     —         8,673  

Changes in operating assets and liabilities:

    

Accounts receivable, net

     98,158       (39,899

Inventories, net

     (209,476     (48,393

Prepaid expenses, net deferred income taxes and other current assets

     (127,977     (41,036

Accounts payable, accrued expenses, income taxes payable and other

     (277,973     158,119  
  

 

 

   

 

 

 

Net cash (used in) / provided by operating activities

   $ 271,661     $ 510,193  

Cash flows from investing activities:

    

Purchases of property, plant, and equipment

     (106,192     (74,805

Patent registration and acquisition costs

     (17,449     (11,149

Business acquisitions, net of cash acquired

     (35,915     (30,704

Purchases of investments

     (16,614     (20,038

Proceeds from sale of investment

     6,802       —    

(Payments) / proceeds on maturity of foreign currency contracts

     (5,309     26,306  
  

 

 

   

 

 

 

Net cash used in investing activities

   $ (174,677   $ (110,390

Cash flows from financing activities:

    

Proceeds from issuance of common stock, net

     26,269       18,759  

Taxes paid related to net share settlement of equity awards

     (52,278     (49,938

Payments of business combination contingent consideration

     —         (3,500

Proceeds from borrowings, net of borrowing costs

     160,000       90,000  

Repayment of borrowings

     (136,000     (536,000

Dividends paid

     (183,853     (169,917
  

 

 

   

 

 

 

Net cash (used in) / provided by financing activities

   $ (185,862   $ (650,596
  

 

 

   

 

 

 

Effect of exchange rate changes on cash

   $ (4,631   $ 18,272  
  

 

 

   

 

 

 

Net increase / (decrease) in cash and cash equivalents

     (93,509     (232,521

Cash and cash equivalents at beginning of period

     295,278       463,156  
  

 

 

   

 

 

 

Cash and cash equivalents at end of period

   $ 201,769     $ 230,635  
  

 

 

   

 

 

 

– More –


RMD Third Quarter 2022 Earnings Press Release – April 28, 2022    Page 8 of 11

 

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” exclude amortization expense from acquired intangibles related to cost of sales and are reconciled below:

 

     Three Months Ended     Nine Months Ended  
     March 31,
2022
    March 31,
2021
    March 31,
2022
    March 31,
2021
 

Revenue

   $ 864,500     $ 768,767     $ 2,663,390     $ 2,320,722  

GAAP Cost of sales

   $ 373,303     $ 321,509     $ 1,161,585     $ 972,319  

Less: Amortization of acquired intangibles (A)

     (10,982     (10,924     (33,271     (34,066

Less: Restructuring—cost of sales (A)

     —         —         —         (5,232
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP cost of sales

   $ 362,321     $ 310,585     $ 1,128,314     $ 933,021  

GAAP gross profit

   $ 491,197     $ 447,258     $ 1,501,805     $ 1,348,403  

GAAP gross margin

     56.8     58.2     56.4     58.1

Non-GAAP gross profit

   $ 502,179     $ 458,182     $ 1,535,076     $ 1,387,701  

Non-GAAP gross margin

     58.1     59.6     57.6     59.8

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

 

     Three Months Ended     Nine Months Ended  
     March 31,
2022
    March 31,
2021
    March 31,
2022
    March 31,
2021
 

GAAP income from operations

   $ 234,265     $ 223,426     $ 744,889     $ 662,040  

Amortization of acquired intangibles—cost of sales (A)

     10,982       10,924       33,271       34,066  

Amortization of acquired intangibles—operating expenses (A)

     7,730           7,445           23,175           23,377      

Restructuring—cost of sales (A)

     —         —         —         5,232  

Restructuring—operating expenses (A)

     —         —         —         8,673  
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP income from operations

   $ 252,977     $ 241,795     $ 801,335     $ 733,388  
  

 

 

   

 

 

   

 

 

   

 

 

 


RMD Third Quarter 2022 Earnings Press Release – April 28, 2022    Page 9 of 11

 

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      Nine Months Ended  
     March 31,
2022
     March 31,
2021
     March 31,
2022
     March 31,
2021
 

GAAP net income (loss)

   $ 179,012      $ (78,481    $ 584,376      $ 279,405  

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

     8,374        8,395        25,373        26,136  

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

     5,894        5,721        17,673        17,936  

Reserve for disputed tax position (A)

     —          254,776        4,111        254,776  

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

     —          —          —          4,663  

Restructuring—operating expenses, net of tax (A)

     —          —          —          7,730  

(Gain) loss on equity investments (A)

     —          —          —          (8,476
  

 

 

    

 

 

    

 

 

    

 

 

 

Non-GAAP net income (A)

   $ 193,280      $ 190,411      $ 631,533      $ 582,170  
  

 

 

    

 

 

    

 

 

    

 

 

 

GAAP diluted shares outstanding

     146,962        145,513        147,034        146,394  

Anti-dilutive shares excluded from GAAP

     —          858        —          —    
  

 

 

    

 

 

    

 

 

    

 

 

 

Non-GAAP diluted shares outstanding

   $ 146,962      $ 146,371      $ 147,034      $ 146,394  
  

 

 

    

 

 

    

 

 

    

 

 

 

GAAP diluted earnings (loss) per share

   $ 1.22      $ (0.54    $ 3.97      $ 1.91  

Non-GAAP diluted earnings per share (A)

   $ 1.32      $ 1.30      $ 4.30      $ 3.98  

 

(A)

ResMed adjusts for the impact of the amortization of acquired intangibles, reserve for disputed tax positions, restructuring 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 Third Quarter 2022 Earnings Press Release – April 28, 2022    Page 10 of 11

 

RESMED INC. AND SUBSIDIARIES

Revenue by Product and Region

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

 

     Three Months Ended  
     March 31,
2022 (A)
     March 31,
2021 (A)
     % Change     Constant
Currency (B)
 

U.S., Canada, and Latin America

          

Devices

   $ 250.8      $ 192.9        30  

Masks and other

     224.7        210.0        7    
  

 

 

    

 

 

    

 

 

   

Total Sleep and Respiratory Care

   $ 475.4      $ 402.9        18    

Software as a Service

     101.1        93.8        8    
  

 

 

    

 

 

    

 

 

   

Total

   $ 576.6      $ 496.7        16    
  

 

 

    

 

 

    

 

 

   

Combined Europe, Asia, and other markets

          

Devices

   $ 182.3      $ 172.8        5     10

Masks and other

     105.6        99.2        6       13  
  

 

 

    

 

 

    

 

 

   

 

 

 

Total Sleep and Respiratory Care

   $ 287.9      $ 272.1        6       11  

Global revenue

          

Devices

   $ 433.1      $ 365.7        18     21

Masks and other

     330.3        309.2        7       9  
  

 

 

    

 

 

    

 

 

   

 

 

 

Total Sleep and Respiratory Care

   $ 763.4      $ 674.9        13       15  

Software as a Service

     101.1        93.8        8       8  
  

 

 

    

 

 

    

 

 

   

 

 

 

Total

   $ 864.5      $ 768.8        12       14  
  

 

 

    

 

 

    

 

 

   

 

 

 

 

     Nine Months Ended  
     March 31,
2022 (A)
     March 31,
2021 (A)
     % Change     Constant
Currency (B)
 

U.S., Canada, and Latin America

          

Devices

   $ 771.5      $ 595.3        30  

Masks and other

     681.8        637.5        7    
  

 

 

    

 

 

    

 

 

   

Total Sleep and Respiratory Care

   $ 1,453.3      $ 1,232.8        18    

Software as a Service

     297.7        277.8        7    
  

 

 

    

 

 

    

 

 

   

Total

   $ 1,751.0      $ 1,510.6        16    
  

 

 

    

 

 

    

 

 

   

Combined Europe, Asia, and other markets

          

Devices

   $ 608.3      $ 536.9        13     15

Masks and other

     304.2        273.3        11       14  
  

 

 

    

 

 

    

 

 

   

 

 

 

Total Sleep and Respiratory Care

   $ 912.4      $ 810.1        13       15  

Global revenue

          

Devices

   $ 1,379.7      $ 1,132.1        22     23

Masks and other

     986.0        910.8        8       9  
  

 

 

    

 

 

    

 

 

   

 

 

 

Total Sleep and Respiratory Care

   $ 2,365.7      $ 2,042.9        16       16  

Software as a Service

     297.7        277.8        7       7  
  

 

 

    

 

 

    

 

 

   

 

 

 

Total

   $ 2,663.4      $ 2,320.7        15       15  
  

 

 

    

 

 

    

 

 

   

 

 

 

 

(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


RMD Third Quarter 2022 Earnings Press Release – April 28, 2022    Page 11 of 11

 

RESMED INC. AND SUBSIDIARIES

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 –