SAN DIEGO, Aug. 6 /PRNewswire-FirstCall/ -- ResMed Inc. (NYSE:RMD)
today announced record revenue and income for the quarter ended
June 30, 2009. Revenue for the June 2009 quarter was $252.0
million, a 7% increase (a 15% increase on a constant currency
basis) over the quarter ended June 30, 2008. For the quarter ended
June 30, 2009, income from operations was $57.9 million and net
income was $45.4 million, an increase of 57% and 53%, respectively,
compared to the quarter ended June 30, 2008. Diluted earnings per
share for the quarter ended June 30, 2009 were $0.59, an increase
of 55% compared to the quarter ended June 30, 2008. SG&A
expenses were $77.6 million for the June 2009 quarter, which was
consistent with the same period in fiscal 2008 (an 11% increase on
a constant currency basis). SG&A expenses were favorably
impacted by the appreciation of the U.S. dollar against
international currencies. In constant currency terms, the increase
in SG&A was primarily due to expenses necessary to support
sales growth. SG&A costs were 31% of revenue in the June 2009
quarter, compared to 33% in the same period in fiscal 2008. R&D
expenses were $17.0 million for the June 2009 quarter, or
approximately 7% of revenue. R&D expenses decreased by 4% (a
14% increase on a constant currency basis) compared to the prior
year quarter. R&D was also positively impacted by the
appreciation of the U.S. dollar against international currencies,
particularly the Australian dollar. R&D outlays reflect
ResMed's continuing commitment to innovation within its product
portfolio, as well as an ongoing commitment to clinical research
and product development. Amortization of acquired intangibles was
$1.8 million ($1.2 million, net of tax) for the quarter ended June
30, 2009. Stock-based compensation costs incurred during the
quarter ended June 30, 2009 of $6.6 million ($4.9 million, net of
tax) consisted of expenses associated with stock options granted to
employees and our employee stock purchase plan. During the quarter,
the company donated $2.5 million ($1.6 million, net of tax) to the
ResMed Foundations. The Foundations were established to promote
research into the deleterious medical consequences of untreated
sleep-disordered breathing. For the year ended June 30, 2009,
revenue was $920.7 million, a 10% increase (a 15% increase on a
constant currency basis) over the year ended June 30, 2008. For the
year ended June 30, 2009, income from operations and net income
were $190.3 million and $146.4 million, an increase of 33% and 33%,
respectively, compared to the year ended June 30, 2008. Diluted
earnings per share for the year ended June 30, 2009 were $1.90 per
diluted share, an increase of 36% compared to the year ended June
30, 2008. Inventory, at $157.4 million, decreased by $0.8 million
compared to June 30, 2008. Accounts receivable days sales
outstanding, at 74 days, increased by 2 days compared to June 30,
2008. Kieran T. Gallahue, President and Chief Executive Officer,
commented, "In the fourth quarter of fiscal 2009, we continued to
show strong growth year over year. Our favorable mix of product
sales and market share gains led to a 20% increase in the Americas
over the prior year quarter, resulting in $134.2 million in
revenue. Sales outside the Americas were impacted by currency
movements, in particular the depreciation of the Euro against the
US dollar. As a result, sales outside the Americas decreased by 4%
to $117.8 million, but were up 10% in constant currency terms. Cash
flow from operations for the June 2009 quarter was a record $70.2
million. Our gross margin continued to expand as well, with a
reported 62% for the fourth quarter resulting from manufacturing
efficiencies and a positive currency impact. "Our twentieth fiscal
year in business was certainly a successful one with sustained
sales performance throughout all regions, gains in capturing market
share and a key focus on cost efficiencies across our global
organization. The market continues to respond well to our full
range of products and the launch of the S8(TM) II series with our
Easy Breathe motor technology has done particularly well,
especially with the Autoset(TM) II. Masks launched in fiscal 2009,
including the Swift(TM) LT, Swift LT for Her and the Activa(TM) LT
were strong drivers of growth as was the Quattro. The fact that the
market for sleep disordered breathing therapy remains highly
underpenetrated and the drive to increase the awareness of SDB and
improve patient compliance seem to have shielded us from the
economic factors affecting many other companies. Continuing to
raise awareness about the relationship between sleep-disordered
breathing/obstructive sleep apnea and co-morbidities such as
cardiac disease, diabetes, hypertension and obesity as well as our
efforts in the occupational health and safety space, with a
particular focus on the transport industry, bode well for future
continued growth." ResMed ResMed is a leading developer,
manufacturer, and distributor of medical equipment for treating,
diagnosing, and managing sleep-disordered breathing and other
respiratory disorders. We are 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 http://www.resmed.com/. ResMed will
host a conference call at 1:30 p.m. U.S. Pacific Daylight Time
today to discuss these quarterly results. Individuals wishing to
access the conference call may do so via ResMed's Web site at
http://www.resmed.com/ or by dialing (866) 362-4829 (domestic) or
+1 (617) 597-5346 (international) and entering conference I.D. No.
36112832. Please allow extra time prior to the call to visit the
Web site 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
(888) 286-8010 (domestic) and +1 (617) 801-6888 (international) and
entering conference I.D. No. 21473195. Further information can be
obtained by contacting Connie 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 Web
site at http://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 Web site. RESMED INC AND SUBSIDIARIES
Consolidated Statements of Income (Unaudited) (In US$ thousands,
except per share data) Three Months Ended Year Ended June 30, June
30, 2009 2008 2009 2008 ---- ---- ---- ---- Net revenue $251,959
$235,152 $920,735 $835,397 Cost of sales 95,251 101,067 366,933
341,647 ------------- ------- ------- ------- ------- Gross profit
156,708 134,085 553,802 493,750 ------------ ------- -------
------- ------- Operating expenses: Selling, general and
administrative 77,580 77,443 289,875 278,087 Research and
development 16,973 17,589 63,056 60,524 Amortization of acquired
intangible assets 1,756 2,066 7,060 7,791 Restructuring expenses -
- - 2,378 Donation to Foundation 2,500 - 3,500 2,000
---------------------- ------ ------ ------- ------- Total
operating expenses 98,809 97,098 363,491 350,780
------------------------ ------ ------ ------- ------- Income from
operations 57,899 36,987 190,311 142,970 ----------------------
------ ------ ------- ------- Other income (expenses), net:
Interest income (expense), net 2,089 3,121 10,205 10,058 Other, net
2,393 1,526 1,168 4,827 ---------- ----- ----- ----- ----- Total
other income (expenses), net 4,482 4,647 11,373 14,885
---------------------------------- ----- ----- ------ ------ Income
before income taxes 62,381 41,634 201,684 157,855 Income taxes
17,011 12,000 55,236 47,552 ------------ ------- ------- --------
-------- Net income $45,370 $29,634 $146,448 $110,303 ----------
------- ------- -------- -------- Basic earnings per share $0.60
$0.38 $1.94 $1.43 Diluted earnings per share $0.59 $0.38 $1.90
$1.40 Basic shares outstanding 75,341 76,993 75,629 77,378 Diluted
shares outstanding 76,662 78,714 77,113 78,712
-------------------------- ------ ------ ------ ------ RESMED INC
AND SUBSIDIARIES Consolidated Balance Sheets (Unaudited) (In US$
thousands except share and per share data) June 30, June 30, 2009
2008 ---- ---- Assets Current assets: Cash and cash equivalents
$415,650 $321,078 Accounts receivable, net 212,096 192,200
Inventories 157,431 158,251 Deferred income taxes 44,368 31,355
Income taxes receivable 2,067 17,115 Prepaid expenses and other
current assets 21,672 19,241
----------------------------------------- ------ ------ Total
current assets 853,284 739,240 -------------------- ------- -------
Property, plant and equipment, net 377,613 357,057 Goodwill 213,169
234,647 Other intangibles 35,023 46,771 Deferred Income taxes
19,364 16,162 Other assets 9,515 12,123 ------------ ----- ------
Total non-current assets 654,684 666,760 ------------------------
------- ------- Total assets $1,507,968 $1,406,000 ------------
---------- ---------- Liabilities and Stockholders' Equity Current
liabilities: Accounts payable $48,293 $56,308 Accrued expenses
67,018 61,338 Deferred revenue 28,881 26,133 Income taxes payable
56,972 3,799 Deferred Income taxes 391 1,150 Current portion of
long-term debt 67,545 43,865 ---------------------------------
------ ------ Total current liabilities 269,100 192,593
------------------------- ------- ------- Non Current Liabilities:
Deferred income taxes 11,137 18,333 Deferred revenue 15,238 15,673
Income taxes payable 3,110 3,837 Long-term debt 94,191 93,789
-------------- ------ ------ Total non-current liabilities 123,676
131,632 ----------------------------- ------- ------- Total
liabilities 392,776 324,225 ----------------- ------- -------
Stockholders' Equity: Common Stock 303 304 Additional paid-in
capital 522,980 468,346 Retained earnings 694,791 548,343 Treasury
stock (208,659) (142,987) Accumulated other comprehensive income
105,777 207,769 -------------------------------------- -------
------- Total stockholders' equity 1,115,192 1,081,775
-------------------------- --------- --------- Total liabilities
and stockholders' equity $1,507,968 $1,406,000 DATASOURCE: ResMed
Inc. CONTACT: Connie Bienfait of ResMed Inc., +1-858-836-5971, or
Brett Sandercock of ResMed Limited, Sydney, +612-8884-2090 Web
Site: http://www.resmed.com/
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