ResMed Inc. Announces Record Financial Results for the Quarter Ended September 30, 2012

ResMed Inc. Announces Record Financial Results for the Quarter Ended September
                                   30, 2012

PR Newswire

SAN DIEGO, Oct. 25, 2012

SAN DIEGO, Oct. 25, 2012 /PRNewswire/ --ResMed Inc. (NYSE: RMD) today
announced record results for the quarter ended September 30, 2012.Revenue for
the quarter ended September 30, 2012 was $339.7 million, an 8% increase (a 12%
increase on a constant currency basis) over the quarter ended September 30,
2011. For the quarter ended September 30, 2012, net income was $71.3 million,
an increase of 41% compared to the quarter ended September 30, 2011.Diluted
earnings per share for the quarter ended September 30, 2012 were $0.49, a
robust 48% increase compared to the quarter ended September 30, 2011.


SG&A expenses were $98.3 million for the quarter ended September 30, 2012, an
increase of $4.1 million, or 4% (a 9% increase on a constant currency basis)
compared to the quarter ended September 30, 2011. SG&A costs were 28.9% of
revenue in the quarter ended September 30, 2012, compared to 29.9% for the
quarter ended September 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 $27.2 million for the quarter ended September 30, 2012, or
8.0% of revenue. R&D expenses increased by 4% (a 6% increase on a constant
currency basis) compared to the quarter ended September 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 $2.6 million ($2.0 million, net
of tax) during the quarter ended September 30, 2012. Stock-based compensation
costs incurred during the quarter ended September 30, 2012 of $7.9 million
($5.9 million, net of tax) consisted of expenses associated with stock
options, restricted stock units, and our employee stock purchase plan. 

Inventory, at $193.2 million, increased by $18.8 million compared to June30,
2012. Accounts receivable days sales outstanding, at 71 days, increased by
three days compared to June30, 2012.

Additionally, the Board of Directors has today declared a quarterly dividend
of $0.17 per share, which will have a record date of November 20, 2012, and be
payable on December 18, 2012. The dividend will be paid in U.S. currency to
holders of ResMed's common stock trading on the New York Stock Exchange
(NYSE). Holders of Chess Depositary Instruments (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. Because the two
exchanges have different settlement and transfer procedures, the ex-dividend
periods before the record date will be different for common stock and for
CDIs. The ex-dividend date will be November 14, 2012 for CDI holders and
November 16, 2012 for common stock holders. As a result of these differences,
ResMed has requested 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 November 14, 2012 through November 20, 2012, inclusive.

Peter C. Farrell Ph.D, chairman and chief executive officer, commented, "In
the first quarter of fiscal 2013 we showed strong year-over-year growth on the
top and bottom lines, and both our flow generator and mask categories did
well. Revenue in the Americas increased by 15% to $194.4 million over the
prior year's quarter. Revenue outside the Americas was $145.4 million, a 9%
increase on a constant currency basis over the prior year's quarter.Operating
profit for the September quarter was $80.5 million, cash flow from operations
was $78.3 million, while gross margin was an encouraging 61.4%, all
demonstrating excellent operating performance. There was also a continuing
shift to higher valued flow generators, like S9 Autoset™ and S9 bilevels, and
mask sales remained strong.

"Evidence also continues to mount supporting the role of sleep-disordered
breathing (SDB) therapy for disease prevention, improvement of quality of life
and healthcare cost reduction, what I call the Holy Grail of medicine.The
following studies provide additional proof of the serious public health
concerns relating to untreated SDB:

  oIn a ResMed-sponsored study recently published in Population Health
    Management involving 22,000 members on the Union Pacific Railroad health
    plan, findings suggest that a low-cost, patient-focused SDB education
    campaign can improve healthcare outcomes and reduce medical expenses.
    First, the study showed that members of the Union Pacific plan who had
    untreated SDB had higher medical expenses than employees without the
    disease and, second, it demonstrated that treatment of SDB with positive
    airway pressure (PAP) therapy reduced medical costs, in-patient costs and
    hospital admissions. After the campaign was initiated, the healthcare
    plan realized cost savings of $4.9 million over a two-year period.
  oA study published in the June issue of the American Journal of Managed
    Care demonstrated that newly diagnosed SDB patients who initiated PAP
    therapy had significantly lower hospitalization risk and lower all-cause
    healthcare costs compared to patients who did not use PAP.
  oIn the July issue of the Journal of Cardiac Failure, a study showed that
    central sleep apnea and severe obstructive sleep apnea are independent
    risk factors for six-month cardiac hospital readmission.

"All these findings offer tangible data to payors, providers and patients on
the beneficial effect on both clinical and economic outcomes of treating
sleep-disordered breathing.The bottom line is that screening, diagnosis,
treatment and monitoring adherence to therapy for patients presents a
significant opportunity to improve health and quality of life, as well as
contain healthcare costs."

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

ResMed will host a conference call at 1:30 p.m. U.S. Pacific Time today to
discuss these quarterly results. Individuals wishingtoaccess the conference
call may do so via ResMed's Website at or by dialing
847-585-4405 (domestic) or +1 847-585-4405 (international) and entering
conference pass code no. 33442422. 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 630-652-3042 (domestic) and +1 630-652-3042
(international) and entering conference I.D. No.33442422.

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

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.

Condensed Consolidated Statements of Income (Unaudited)
(In US$ thousands, except per share data)
                                           Three Months Ended

                                           September 30,
                                            2012       2011
Net revenue                                $ 339,731    $ 314,774
Cost of sales                                131,083      129,720
Gross profit                                 208,648      185,054
Operating expenses:
Selling, general and administrative          98,303       94,203
Research and development                     27,220       26,206
Amortization of acquired intangible assets   2,636        3,771
Total operating expenses                     128,159      124,180
Income from operations                       80,489       60,874
Interest income (expense), net               8,471        6,924
Other, net                                   1,941        (1,301)
Total other income (expenses), net           10,412       5,623
Income before income taxes                   90,901       66,497
Income taxes                                 19,636       15,979
Net income                                 $ 71,265     $ 50,518
Basic earnings per share                   $ 0.50       $ 0.34
Diluted earnings per share                 $ 0.49       $ 0.33
Basic shares outstanding                     142,651      150,366
Diluted shares outstanding                   146,055      154,051

Condensed Consolidated Balance Sheets (Unaudited - In US$ thousands)
                                            September 30,  June 30,

                                            2012          2012
Current assets:
Cash and cash equivalents                  $  890,629     $ 809,541
Accounts receivable, net                      266,537       283,160
Inventories                                   193,172       174,351
Deferred income taxes                         24,754        19,590
Income taxes receivable                       3,091         2,282
Prepaid expenses and other current assets     72,034        72,227
Total current assets                          1,450,217     1,361,151
Property, plant and equipment, net            438,357       434,363
Goodwill                                      273,280       256,209
Other intangibles                             59,666        54,827
Deferred income taxes                         17,543        23,500
Other assets                                  5,596         7,819
Total non-current assets                      794,442       776,718
Total assets                               $  2,244,659   $ 2,137,869
Current liabilities:
Accounts payable                              52,914        55,006
Accrued expenses                              132,100       127,381
Deferred revenue                              42,978        41,563
Income taxes payable                          24,326        27,777
Deferred income taxes                         660           1,073
Current portion of long-term debt             53            52
Total current liabilities                     253,031       252,852
Deferred income taxes                         9,167         8,843
Deferred revenue                              14,301        14,384
Income taxes payable                          3,452         3,380
Non-current portion of long-term debt         265,785       250,783
Total non-current liabilities                 292,705       277,390
Total liabilities                             545,736       530,242
Common stock                                  572           568
Additional paid-in capital                    933,249       899,717
Retained earnings                             1,413,711     1,366,712
Treasury stock                                (903,922)     (895,826)
Accumulated other comprehensive income        255,313       236,456
Total stockholders' equity                    1,698,923     1,607,627
Total liabilities and stockholders' equity $  2,244,659   $ 2,137,869

SOURCE ResMed Inc.

Press spacebar to pause and continue. Press esc to stop.