ResMed Inc. Announces Record Financial Results For The Quarter And Twelve Months Ended June 30, 2012

Aug 02, 2012, 16:05 ET from ResMed Inc.

SAN DIEGO, Aug. 2, 2012 /PRNewswire/ -- ResMed Inc. (NYSE: RMD) today announced record revenue and income for the quarter ended June 30, 2012.  Revenue for the quarter ended June 30, 2012 was $371.9 million, a 9% increase (a 13% increase on a constant currency basis) over the quarter ended June 30, 2011.  For the quarter ended June 30, 2012, net income was $76.8 million, an increase of 31% compared to the quarter ended June 30, 2011.  Diluted earnings per share for the quarter ended June 30, 2012 were $0.53, an increase of 43% compared to the quarter ended June 30, 2011.

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SG&A expenses were $105.9 million for the quarter ended June 30, 2012, an increase of $3.6 million, or 3% (a 9% increase on a constant currency basis) compared to the quarter ended June 30, 2011. SG&A costs were 28.5% of revenue in the quarter ended June 30, 2012, compared to 29.9% for the quarter ended June 30, 2011. SG&A expenses were favorably impacted by the depreciation of the Australian dollar and euro against the U.S. dollar.

R&D expenses were $27.9 million for the quarter ended June 30, 2012, or 7.5% of revenue. R&D expenses increased by 3% (a 10% increase on a constant currency basis) compared to the quarter ended June 30, 2011. R&D expenses were favorably impacted by the depreciation of the Australian dollar against the U.S. dollar.

The company amortized acquired intangibles of $2.9 million ($2.2 million, net of tax) during the quarter ended June 30, 2012. Stock-based compensation costs incurred during the quarter ended June 30, 2012 of $8.1 million ($5.9 million, net of tax) consisted of expenses associated with stock options, restricted stock units, and our employee stock purchase plan.

For the year ended June 30, 2012, revenue was $1.37 billion, an increase of 10% over the year ended June 30, 2011 (11% increase on a constant currency basis). For the year ended June 30, 2012, net income was $254.9 million, an increase of 12% compared to the year ended June 30, 2011.  Diluted earnings per share for the year ended June 30, 2012 were $1.71, an increase of 19% compared to the year ended June 30, 2011.

Inventory, at $174.4 million, decreased by $26.4 million compared to June 30, 2011. Accounts receivable days sales outstanding, at 68 days, decreased by 1 day compared to June 30, 2011.

Additionally, our Board of Directors have today declared a quarterly dividend of $0.17 per share, which will have a record date of September 7, 2012, and be payable on September 28, 2012.  The dividend will be paid in US currency to holders of our common stock trading on the New York Stock Exchange (NYSE).  Holders of Chess Depositary Instruments (CDIs) trading on the Australian Stock 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. 

Peter C. Farrell Ph.D, chairman and chief executive officer, commented, "In the fourth quarter of fiscal 2012 we showed strong year-over-year growth on the top and bottom line and both our flow generator and mask categories did well. Revenue in Americas increased by 13% to $207.4 million over the prior year's quarter. Revenue outside Americas increased by 3% to $164.5 million over the prior year's quarter, or a 13% increase on a constant currency basis.  Operating profit for the June quarter was $89.7 million and cash flow from operations was a robust $97.0 million, demonstrating excellent operating performance.

"The peer-reviewed literature continues to make it abundantly clear that untreated sleep-disordered breathing is, at best, seriously debilitating and, at worst, life-threatening. At the May Annual Meeting of the American Thoracic Society it was reported, by researchers from the University of Wisconsin, that individuals with untreated sleep apnea have a higher risk of dying from cancer and the risk was correlated with the severity of the disease. And, at the same meeting, it was also reported that untreated obstructive sleep apnea was independently correlated with diabetic peripheral neuropathy, a debilitating disease which causes severe pain in the hands and feet. Also, at this year's Annual Endocrine Society meeting held in June, obstructive sleep apnea was found to be a frequent co-morbidity with polycystic ovary syndrome, a hormonal disorder which affects up to 10% of women of child-bearing age. In addition, in the June 2012 issue of the European Heart Journal it was reported that any level of abnormal sleep-disordered breathing was associated with poor prognosis in chronic heart failure and that treatment of the sleep-disordered breathing with nocturnal ventilation significantly improved outcomes. Finally, in the July 2012 issue of the Journal of Cardiac Failure a study demonstrated the direct connection between untreated central sleep apnea and heart failure re-admission to hospital. These findings add to the continually mounting evidence connecting serious health disorders to untreated sleep-disordered breathing and point to the necessity of making the diagnosis and treatment of sleep-disordered breathing a standard of care in medical practice. In short, testing for sleep-disordered breathing should be as common as having one's blood pressure taken."

About ResMed

ResMed is a global leader in the development, manufacturing and marketing of medical products for the diagnosis, treatment and management of respiratory disorders, with a focus on sleep-disordered breathing. The company is dedicated to developing innovative products to improve the lives of those who suffer from these conditions and to increasing awareness among patients and healthcare professionals of the potentially serious health consequences of untreated sleep-disordered breathing. For more information on ResMed, visit www.resmed.com.

ResMed will host a conference call at 1:30 p.m. U.S. Pacific Time today to discuss these quarterly results. Individuals wishing to access the conference call may do so via ResMed's Website at www.resmed.com or by dialing 617-597-5377 (domestic) or +1 617-597-5377 (international) and entering conference pass code no. 68952697. 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 90 minutes after the live call and will be available for two weeks. A telephone replay of the conference call is available by dialing 617-801-6888 (domestic) and +1 617-801-6888 (international) and entering conference I.D. No. 18538587.

Further information can be obtained by contacting Constance Bienfait at ResMed Inc., San Diego, at (858) 836-5971; Brett Sandercock at ResMed Limited, Sydney, on (+612) 8884-2090; or by visiting the Company's multilingual Website at www.resmed.com.

Statements contained in this release that are not historical facts are "forward-looking" statements as contemplated by the Private Securities Litigation Reform Act of 1995. These forward-looking statements, including statements regarding the Company's future revenue, earnings or expenses, new product development and new markets for the Company's products, are subject to risks and uncertainties, which could cause actual results to materially differ from those projected or implied in the forward-looking statements. Those risks and uncertainties are discussed in the Company's Annual Report on Form 10-K for its most recent fiscal year and in other reports the Company files with the U.S. Securities & Exchange Commission. Those reports are available on the Company's Website.

 

 

RESMED INC AND SUBSIDIARIES

Condensed Consolidated Statements of Income (Unaudited)

(In US$ thousands, except per share data)

Three Months Ended

June 30,

Year Ended

June 30,

2012

2011

2012

2011

Net revenue

$

371,929

$

341,893

$

1,368,515

$

1,243,148

Cost of sales

145,460

143,021

547,780

501,822

Gross profit

226,469

198,872

820,735

741,326

Operating expenses:

Selling, general and administrative

105,909

102,329

401,621

371,249

Research and development

27,911

26,976

109,733

92,007

Amortization of acquired intangible assets

2,919

2,870

13,974

10,146

Donation to Foundation

1,000

1,000

Total operating expenses

136,739

132,175

526,328

474,402

Income from operations

89,730

66,697

294,407

266,924

Other income (expenses), net:

Interest income (expense), net

7,326

8,278

29,080

26,043

Other, net

1,454

2,234

8,458

10,740

Total other income (expenses), net

8,780

10,512

37,538

36,783

Income before income taxes

98,510

77,209

331,945

303,707

Income taxes

21,663

18,737

77,095

76,721

Net income

$

76,847

$

58,472

$

254,850

$

226,986

Basic earnings per share

$

0.54

$

0.38

$

1.75

$

1.49

Diluted earnings per share

$

0.53

$

0.37

$

1.71

$

1.44

Basic shares outstanding

142,788

152,653

145,901

152,471

Diluted shares outstanding

146,099

156,723

149,316

157,195

 

RESMED INC AND SUBSIDIARIES

Condensed Consolidated Balance Sheets (Unaudited)

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

June 30, 2012

June 30, 2011

ASSETS

Current assets:

Cash and cash equivalents

$

809,541

$

735,267

Accounts receivable, net

283,160

274,352

Inventories

174,351

200,777

Deferred income taxes

19,590

13,875

Income taxes receivable

2,282

9,294

Prepaid expenses and other current assets

72,227

58,887

Total current assets

1,361,151

1,292,452

Property, plant and equipment, net

434,363

462,107

Goodwill

256,209

235,487

Other intangibles

54,827

47,911

Deferred income taxes

23,500

18,922

Other assets

7,819

12,043

Total non-current assets

776,718

776,470

Total assets

$

2,137,869

$

2,068,922

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable

55,006

55,194

Accrued expenses

127,381

103,787

Deferred revenue

41,563

45,125

Income taxes payable

27,777

3,931

Deferred income taxes

1,073

640

Current portion of long-term debt

52

163

Total current liabilities

252,852

208,840

Deferred income taxes

8,843

8,051

Deferred revenue

14,384

17,237

Income taxes payable

3,380

4,057

Non-current portion of long-term debt

250,783

100,000

Total non-current liabilities

277,390

129,345

Total liabilities

530,242

338,185

STOCKHOLDERS' EQUITY:

Common stock

568

607

Additional paid-in capital

899,717

798,461

Retained earnings

1,366,712

1,111,862

Treasury stock

(895,826)

(504,625)

Accumulated other comprehensive income

236,456

324,432

Total stockholders' equity

1,607,627

1,730,737

Total liabilities and stockholders' equity

$

2,137,869

$

2,068,922

 

 

 

SOURCE ResMed Inc.



RELATED LINKS

http://www.resmed.com