RESMED, INC. 
By SAN DIEGO, Jan. 26, 2012 /PRNewswire/ --ResMed Inc. (NYSE: RMD) today announced record revenue and income for the quarter ended December 31, 2011. Revenue for the quarter ended December 31, 2011 was $332.7 million, a 9% increase (also a 9% increase on a constant currency basis) over the quarter ended December 31, 2010. For the quarter ended December 31, 2011, net income was $62.9 million, an increase of 8%, compared to the quarter ended December 31, 2010. Diluted earnings per share for the quarter ended December 31, 2011 were $0.42, an increase of 14% compared to the quarter ended December 31, 2010.
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SG&A expenses were $100.6 million for the quarter ended December 31, 2011, an increase of $9.0 million, or 10% (a 9% increase on a constant currency basis) over the quarter ended December 31, 2010. The increase in SG&A was primarily due to expenses necessary to support sales growth. SG&A costs were 30% of revenue in the quarter ended December 31, 2011, compared to 30% in the quarter ended December 31, 2010.
R&D expenses were $27.2 million for the quarter ended December 31, 2011, or 8% of revenue. R&D expenses increased by 24% (a 21% increase on a constant currency basis) compared to the quarter ended December 31, 2010.
The company amortized acquired intangibles of $3.7 million ($2.7 million, net of tax) during the quarter ended December 31, 2011. Stock-based compensation costs incurred during the quarter ended December 31, 2011 of $7.4 million ($5.8 million, net of tax) consisted of expenses associated with stock options, restricted stock units, and our employee stock purchase plan.
For the six months ended December 31, 2011, revenue was $647.5 million, an increase of 10% over the six months ended December 31, 2010 (an 8% increase on a constant currency basis). For the six months ended December 31, 2011, net income was $113.4 million, a decrease of 2%, compared to the six months ended December 31, 2010. Diluted earnings per share for the six months ended December 31, 2011 were $0.75 per diluted share, an increase of 3% compared to the six months ended December 31, 2010.
Inventory, at $184.4 million, decreased by $16.4 million compared to June 30, 2011. Accounts receivable days sales outstanding, at 63 days, decreased by 6 days compared to June 30, 2011.
Peter C. Farrell Ph.D, chairman and chief executive officer, commented, "On a regional basis, revenue in the Americas increased by 12% to $182.5 million over the prior year's quarter. Revenue outside the Americas was $150.2 million, an increase of 5% over the prior year's quarter, on both a GAAP and constant currency basis. Our global operating profit for the December quarter was $67.3 million and cash flow from operations was a record $110.6 million, demonstrating excellent operating performance. During the quarter, we also repurchased 4.1 million shares, at a cost of $110.5 million, as part of our ongoing capital management program.
"Focusing on product lines, global mask growth remains exceptionally strong as the market continues to reward us for having what we consider are the best patient interfaces in the industry, while initiatives for replenishment of masks and accessories provide additional opportunities for growth. We were pleased to see America's flow generator sales return to positive growth of 4% this quarter, compared to fiscal year 2011, reflecting continued demand for our S9 line of flow generators in the market. The S9 VPAP(TM) Adapt sold especially well in the U.S., completing its first six months on the market and the S9 range of bilevel devices continues to gain back share in the U.S., reflecting the enhanced value the S9 platform brings to both patients and physicians. We are also continuing to focus our efforts on our five strategic imperatives, particularly regarding the positive impact which treating sleep-disordered breathing/obstructive sleep apnea has on cardiovascular and cerebrovascular disease, type 2 diabetes and occupational health and safety. In addition, we are working with the anesthesiology community to help reduce the potential for peri-operative deaths due to undiagnosed sleep-disordered breathing in patients undergoing surgical procedures. We continue to provide research funding in these strategic areas while at the same time providing educational support to physicians working within these various specialties."
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 617-614-3672 (domestic) or +1 617-614-3672 (international) and entering conference pass code no. 92354908. Please allow extra time prior to the call to visit the website and download the streaming media player (Windows Media Player) required to listen to the internet broadcast. The online archive of the broadcast will be available approximately 30 minutes after the live call and will be available for two weeks. A telephone replay of the conference call is available by dialing 617-801-6888 (domestic) and +1 617-801-6888 (international) and entering conference I.D. No. 23854403.
Further information can be obtained by contacting Constance Bienfait at ResMed Inc., San Diego, at (858) 836-5971; Brett Sandercock at ResMed Limited, Sydney, at (+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 Six Months Ended
December 31, December 31,
2011 2010 2011 2010
---- ---- ---- ----
Net revenue $332,738 $305,986 $647,513 $587,998
Cost of sales 134,023 119,987 263,743 228,045
Gross profit 198,715 185,999 383,770 359,953
------------ ------- ------- ------- -------
Operating
expenses:
Selling,
general and
administrative 100,552 91,581 194,755 176,371
Research and
development 27,218 21,972 53,424 41,712
Amortization
of acquired
intangible
assets 3,691 2,573 7,462 4,604
Donation to
Foundation - - - 1,000
----------- --- --- --- -----
Total
operating
expenses 131,461 116,126 255,641 223,687
---------- ------- ------- ------- -------
Income from
operations 67,254 69,873 128,129 136,266
----------- ------ ------ ------- -------
Other income
(expenses),
net:
Interest
income
(expense),
net 7,181 6,005 14,103 11,102
Other, net 8,496 3,043 7,196 8,106
Total other
income
(expenses),
net 15,677 9,048 21,299 19,208
------------ ------ ----- ------ ------
Income before
income taxes 82,931 78,921 149,428 155,474
Income taxes 20,059 20,465 36,038 40,310
Net income $62,872 $58,456 $113,390 $115,164
---------- ------- ------- -------- --------
Basic earnings
per share $0.43 $0.38 $0.76 $0.76
Diluted
earnings per
share $0.42 $0.37 $0.75 $0.73
Basic shares
outstanding 146,369 152,420 148,368 152,006
Diluted shares
outstanding 149,515 157,593 151,835 157,276
-------------- ------- ------- ------- -------
RESMED INC AND SUBSIDIARIES
Condensed Consolidated Balance Sheets (Unaudited -In US$
thousands)
December 31, June 30,
2011 2011
---- ----
ASSETS
Current assets:
Cash and cash equivalents $723,233 $735,267
Accounts receivable, net 238,764 274,352
Inventories 184,420 200,777
Prepayments, deferred income taxes and
other current assets 100,350 82,056
Total current assets 1,246,767 1,292,452
-------------------- --------- ---------
Property, plant and equipment, net 441,000 462,107
Goodwill 261,109 235,487
Other intangibles 61,645 47,911
Deferred income taxes and other non-
current assets 30,957 30,965
Total non-current assets 794,711 776,470
------------------------ ------- -------
Total assets $2,041,478 $2,068,922
------------ ---------- ----------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable 45,763 55,194
Accrued expenses 112,286 103,787
Deferred revenue 41,840 45,125
Income taxes payable 26,444 3,931
Deferred income taxes 574 640
Current portion of long-term debt 1,450 163
--------------------------------- ----- ---
Total current liabilities 228,357 208,840
------------------------- ------- -------
Non-current liabilities:
Deferred income taxes 7,921 8,051
Deferred revenue 15,755 17,237
Income taxes payable 3,370 4,057
Non-current portion of long-term debt 225,000 100,000
Total non-current liabilities 252,046 129,345
----------------------------- ------- -------
Total liabilities 480,403 338,185
----------------- ------- -------
Stockholders' Equity:
Common stock 579 607
Additional paid-in capital 834,179 798,461
Retained earnings 1,225,252 1,111,862
Treasury stock (739,812) (504,625)
Accumulated other comprehensive income 240,877 324,432
-------------------------------------- ------- -------
Total stockholders' equity 1,561,075 1,730,737
-------------------------- --------- ---------
Total liabilities and stockholders'
equity $2,041,478 $2,068,922
SOURCE ResMed Inc.
