ResMed Inc. Announces Record Financial Results For The Quarter Ended And Six Months Ended December 31, 2012

 ResMed Inc. Announces Record Financial Results For The Quarter Ended And Six
                        Months Ended December 31, 2012

PR Newswire

SAN DIEGO, Jan. 24, 2013

SAN DIEGO, Jan. 24, 2013 /PRNewswire/ -- ResMed Inc. (NYSE: RMD) today
announced record revenue and income for the quarter ended December 31, 2012.
Revenue for the quarter ended December 31, 2012 was $376.5 million, a 13%
increase (a 14% increase on a constant currency basis) over the quarter ended
December 31, 2011. For the quarter ended December 31, 2012, net income was
$77.9 million, an increase of 24% compared to the quarter ended December 31,
2011. Diluted earnings per share for the quarter ended December 31, 2012 were
$0.53, an increase of 26% compared to the quarter ended December 31, 2011. 

(Logo: http://photos.prnewswire.com/prnh/20100203/RESMEDLOGO)

SG&A expenses were $107.8 million for the quarter ended December 31, 2012, an
increase of 7% (an 8% increase on a constant currency basis) over the quarter
ended December 31, 2011. The increase in SG&A was primarily due to expenses
necessary to support sales growth. SG&A costs were 28.6% of revenue in the
quarter ended December 31, 2012, compared to 30.2% in the quarter ended
December 31, 2011. 

R&D expenses were $30.3 million for the quarter ended December 31, 2012, or
8.1% of revenue. R&D expenses increased by 11% (also an 11% increase on a
constant currency basis) compared to the quarter ended December 31, 2011.

The company amortized acquired intangibles of $2.5 million ($1.9 million, net
of tax) during the quarter ended December 31, 2012. Stock-based compensation
costs incurred during the quarter ended December 31, 2012 of $9.5 million
($6.5 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, 2012, revenue was $716.3 million, an
increase of 11% over the six months ended December 31, 2011 (a 13% increase on
a constant currency basis). For the six months ended December 31, 2012, net
income was $149.2 million, an increase of 32% compared to the six months ended
December 31, 2011. Diluted earnings per share for the six months ended
December 31, 2012 were $1.02 per diluted share, an increase of 36% compared to
the six months ended December 31, 2011.

Inventory, at $194.8 million, increased by $20.5 million compared to June 30,
2012. Accounts receivable days sales outstanding, at 68 days, remained
unchanged compared with June 30, 2012.

Additionally, the Board of Directors has today declared a quarterly dividend
of $0.17 per share, which will have a record date of February 19, 2013, and be
payable on March 19, 2013. 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 February 13, 2013 for CDI holders and February 15,
2013 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 February 13, 2013 through February 19, 2013, inclusive.

Peter C. Farrell Ph.D, chairman and chief executive officer, commented, "In
the second quarter of fiscal 2013 we showed strong year-over-year growth on
both top and bottom lines. Revenue in the Americas increased by 16%, to $211.8
million over the prior year's quarter. Revenue outside the Americas was $164.7
million, an increase of 10% over the prior year's quarter. In constant
currency terms, revenue outside the Americas increased by 12%. Operating
profit for the December quarter was $92.1 million, cash flow from operations
was $93.6 million, while gross margin was 61.8%, all demonstrating excellent
operating performance. There was also a continuing shift to higher value flow
generators, like S9 Autoset™ and S9 bilevels, and mask and accessory sales
remained strong. During the quarter, we also repurchased 1.0 million shares,
at a cost of $40.0 million, as part of our ongoing capital management program.

"We had a solid quarter across the board. And we believe we are in the early
stages of an exciting market dynamic for sleep-disordered breathing (SDB),
which we have been pioneering for many years, by offering full solutions to
therapy providers and critical information for the reimbursement community. In
short, we don't just provide high quality flow generators and a highly
regarded range of comfortable, effective and preferred masks and accessories,
we offer robust data solutions that drive compliance and adherence. This
combination is a significant value proposition for home medical equipment
providers, because these solutions drive efficiencies and create additional
business opportunities. And by providing valuable clinical and economic data
to payors, we strive to help them more fully appreciate SDB therapy's positive
effect on health and cost benefit outcomes. We believe that our continuing
advocacy for screening, diagnosis, treatment, and monitoring patient adherence
to SDB therapy presents a significant opportunity to improve health and
quality of life, contain healthcare costs, and curtail the development of
multiple co-morbidities, many of which are far more devastating and costly
than SDB."

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
847-585-4405 (domestic) or +1 847-585-4405 (international) and entering
conference passcode no. 33995965. 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. 33995965.

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,
                                          2012      2011     2012     2011
Net revenue                               $376,537  $332,738 $716,269 $647,513
Cost of sales                             143,825   134,023  274,909  263,743
Gross profit                              232,712   198,715  441,360  383,770
Operating expenses:
Selling, general and administrative       107,815   100,552  206,118  194,755
Research and development                  30,326    27,218   57,546   53,424
Amortization of acquired intangible       2,501     3,691    5,138    7,462
assets
Total operating expenses                  140,642   131,461  268,802  255,641
Income from operations                    92,070    67,254   172,558  128,129
Other income (expenses), net:
Interest income (expense), net            8,498     7,181    16,970   14,103
Other, net                                (2,168)   8,496    (227)    7,196
Total other income (expenses), net        6,330     15,677   16,743   21,299
Income before income taxes                98,400    82,931   189,301  149,428
Income taxes                              20,458    20,059   40,094   36,038
Net income                                $77,942   $62,872  $149,207 $113,390
Basic earnings per share                  $0.54     $0.43    $1.04    $0.76
Diluted earnings per share                $0.53     $0.42    $1.02    $0.75
Basic shares outstanding                  143,214   146,369  142,931  148,368
Diluted shares outstanding                146,689   149,515  146,382  151,835



ResMed Inc And Subsidiaries

Condensed Consolidated Balance Sheets (Unaudited - In US$ thousands)
                                                       December 31, June 30,
                                                       2012         2012
Assets
Current assets:
Cash and cash equivalents                              $958,280     $809,541
Accounts receivable, net                               281,439      283,160
Inventories                                            194,804      174,351
Prepayments, deferred income taxes and other current   95,328       94,099
assets
Total current assets                                   1,529,851    1,361,151
Property, plant and equipment, net                     439,575      434,363
Goodwill                                               279,384      256,209
Other intangibles                                      58,198       54,827
Deferred income taxes and other non-current assets     23,367       31,319
Total non-current assets                               800,524      776,718
Total assets                                           $2,330,375   $2,137,869
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable                                       52,119       55,006
Accrued expenses                                       135,372      127,381
Deferred revenue                                       43,784       41,563
Income taxes payable                                   18,955       27,777
Deferred income taxes                                  784          1,073
Current portion of long-term debt                      54           52
Total current liabilities                              251,068      252,852
Non-current liabilities:
Deferred income taxes                                  9,373        8,843
Deferred revenue                                       14,055       14,384
Income taxes payable                                   3,569        3,380
Non-current portion of long-term debt                  300,798      250,783
Total non-current liabilities                          327,795      277,390
Total liabilities                                      578,863      530,242
Stockholders' Equity:
Common stock                                           574          568
Additional paid-in capital                             960,109      899,717
Retained earnings                                      1,467,230    1,366,712
Treasury stock                                         (943,877)    (895,826)
Accumulated other comprehensive income                 267,476      236,456
Total stockholders' equity                             1,751,512    1,607,627
Total liabilities and stockholders' equity             $2,330,375   $2,137,869



SOURCE ResMed Inc.

Website: http://www.resmed.com
 
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