- Year-over-year revenue grows 9%, non-GAAP operating
profit up 24%
Note: A webcast of ResMed’s conference call will be available at
4:30 p.m. ET today at http://investor.resmed.com
ResMed Inc. (NYSE: RMD, ASX: RMD), a world-leading digital
health company, today announced results for its quarter ended June
30, 2020.
Fourth Quarter 2020 Highlights
All comparisons are to the prior year period
- Revenue increased 9% to $770.3 million; up 10% on a constant
currency basis
- GAAP gross margin of 58.3%; non-GAAP gross margin expanded 60
bps to 59.9%
- Net operating profit increased 84%; non-GAAP operating profit
up 24%
- GAAP diluted earnings per share of $1.22; non-GAAP diluted
earnings per share of $1.33
Full Year 2020 Highlights
All comparisons are to the prior year period
- Revenue increased 13% to $3.0 billion; up 15% on a constant
currency basis
- GAAP gross margin of 58.1%; non-GAAP gross margin expanded 80
bps to 59.8%
- Net operating profit increased 40%; non-GAAP operating profit
up 24%
- GAAP diluted earnings per share of $4.27; non-GAAP diluted
earnings per share of $4.76
“Our fourth quarter results reflect the strength and resiliency
of our business in today’s uncertain environment. We finished
fiscal year 2020 with double-digit revenue growth to $3.0 billion
and operating profit up 24% on a non-GAAP basis,” said Mick
Farrell, ResMed’s CEO. “Throughout our fiscal fourth quarter, we
continued to support the COVID-19 pandemic response through
increased manufacturing of our ventilators, including bilevels, and
ventilation mask systems while also supporting our customers with
digital health solutions and other innovative tools to enable
remote care for patients. Looking ahead, we are confident in our
ability to navigate through the ongoing challenging clinical and
economic environment to deliver for all our stakeholders. Sleep
labs and physician practices are reopening across many geographies,
and we’re seeing accelerated adoption of digital health solutions
which supports our long-term strategy. We remain vigilant and
thoughtful about the outlook for our business as we continue to
serve our customers, and we believe our strong foundation will
accelerate our growth over the longer term.”
Financial Results and Operating
Metrics
Unaudited; $ in millions, except for per
share amounts
Three Months Ended
June 30, 2020
June 30, 2019
% Change
Constant Currency (A)
Revenue
$
770.3
$
705.0
9
%
10
%
Gross margin (B)
58.3
%
57.1
%
2
Non-GAAP gross margin (B)
59.9
%
59.3
%
1
Selling, general and administrative
expenses
165.4
171.6
(4)
0
Research and development expenses
52.5
51.1
3
4
Income from operations
223.2
121.1
84
Non-GAAP income from operations (B)
243.4
196.2
24
Net income
177.8
68.8
158
Non-GAAP net income (B)
193.3
137.6
40
Diluted earnings per share
$
1.22
$
0.48
154
Non-GAAP diluted earnings per share
(B)
$
1.33
$
0.95
40
Twelve Months Ended
June 30, 2020
June 30, 2019
% Change
Constant Currency (A)
Revenue
$
2,957.0
$
2,606.6
13
%
15
%
Gross margin (B)
58.1
%
57.3
%
1
Non-GAAP gross margin (B)
59.8
%
59.0
%
1
Selling, general and administrative
expenses
676.7
645.0
5
7
Research and development expenses
201.9
180.7
12
14
Income from operations
809.7
579.3
40
Non-GAAP income from operations (B)
890.9
716.3
24
Net income
621.7
404.6
54
Non-GAAP net income (B)
692.8
526.4
32
Diluted earnings per share
$
4.27
$
2.80
53
Non-GAAP diluted earnings per share
(B)
$
4.76
$
3.64
31
(A)
In order to provide a framework for
assessing how our underlying businesses performed excluding the
effect of foreign currency fluctuations, we provide certain
financial information on a “constant currency basis,” which is in
addition to the actual financial information presented. In order to
calculate our constant currency information, we translate the
current period financial information using the foreign currency
exchange rates that were in effect during the previous comparable
period. However, constant currency measures should not be
considered in isolation or as an alternative to U.S. dollar
measures that reflect current period exchange rates, or to other
financial measures calculated and presented in accordance with U.S.
GAAP.
(B)
See the reconciliation of non-GAAP
financial measures in the table at the end of the press
release.
Discussion of Fourth Quarter Results
All comparisons are to the prior year period unless otherwise
noted
- Revenue in the U.S., Canada, and Latin America, excluding
Software as a Service, grew by 4 percent, driven by strong sales
across our mask product portfolio and increased demand for our
ventilators due to COVID-19, partially offset by a decrease in
demand for our sleep devices.
- Revenue in combined Europe, Asia, and other markets grew by 22
percent on a constant currency basis, primarily driven by sales
across our device product portfolio, including increased demand for
our ventilators due to COVID-19.
- Software as a Service revenue increased by 7 percent, due to
continued growth in resupply service offerings and stabilizing
patient flow in out-of-hospital care settings.
- Gross margin expanded by 120 basis points while non-GAAP gross
margin expanded by 60 basis points. These expansions were primarily
due to benefits from product mix changes, partially offset by
declines in manufacturing and procurement efficiencies driven by
higher air freight costs.
- Selling, general, and administrative expenses decreased by 4
percent or consistent on a constant currency basis. SG&A
expenses improved to 21.5 percent of revenue in the quarter,
compared with 24.3 percent in the same period of the prior year.
These changes in SG&A expenses were mainly due to savings in
travel and other cost management as a result of the COVID-19
pandemic.
- Income from operations increased by 84 percent and non-GAAP
income from operations increased by 24 percent.
- Net income grew by 158 percent and diluted earnings per share
grew by 154 percent, largely attributable to the impact of legal
settlement expenses in the prior year. Non-GAAP net income grew by
40 percent and non-GAAP diluted earnings per share grew by 40
percent, predominantly attributable to strong ventilator device
sales and controlled operating costs.
- Cash flow from operations for the quarter was $330.3 million,
compared to net income in the current quarter of $177.8 million.
During the quarter we paid $56.5 million in dividends.
Other Business and Operational Highlights
- Accelerated the launch of cloud-based remote monitoring
software for ventilators and Lumis devices across Europe, via the
AirView platform. Through the new release, clinicians and care
providers can remotely monitor patients’ respiratory rate and blood
oxygen saturation, two key indicators to track changes in a
respiratory patient's condition.
- Launched ResMed MaskSelector, a digital tool to make remote
patient mask selection and sizing easier and more effective,
helping patients receive the care they need from home. ResMed
MaskSelector creates personalized ResMed mask recommendations based
on a patient’s sleep attributes and facial measurements enabling
HMEs to support patients when they can’t physically set them due to
physical distancing.
Dividend program
The ResMed board of directors today declared a quarterly cash
dividend of $0.39 per share. The dividend will have a record date
of August 20, 2020, payable on September 24, 2020. The dividend
will be paid in U.S. currency to holders of ResMed’s common stock
trading on the New York Stock Exchange. Holders of CHESS Depositary
Interests (“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. The ex-dividend date will be August
19, 2020, for common stockholders and for CDI holders. ResMed has
received 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 August 19, 2020, through August
20, 2020, inclusive.
Webcast details
ResMed will discuss its fourth quarter fiscal year 2020 results
on its webcast at 1:30 p.m. U.S. Pacific Time today. The live
webcast of the call can be accessed on ResMed’s Investor Relations
website at investor.resmed.com. Please go to this section of the
website and click on the icon for the “Q4 2020 Earnings Webcast” to
register and listen to the live webcast. A replay of the earnings
webcast will be accessible on the website and available
approximately two hours after the live webcast. In addition, a
telephone replay of the conference call will be available
approximately two hours after the webcast by dialing +1
833-241-4253 (U.S.) or +1 647-689-4204 (outside U.S.) and entering
the passcode 2498310. The telephone replay will be available until
August 19, 2020.
About ResMed
At ResMed (NYSE: RMD, ASX: RMD) we pioneer innovative solutions
that treat and keep people out of the hospital, empowering them to
live healthier, higher-quality lives. Our digital health
technologies and cloud-connected medical devices transform care for
people with sleep apnea, COPD, and other chronic diseases. Our
comprehensive out-of-hospital software platforms support the
professionals and caregivers who help people stay healthy in the
home or care setting of their choice. By enabling better care, we
improve quality of life, reduce the impact of chronic disease, and
lower costs for consumers and healthcare systems in more than 140
countries. To learn more, visit ResMed.com and follow @ResMed.
Safe harbor statement
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
ResMed’s projections of future revenue or earnings, expenses, new
product development, new product launches, new markets for its
products, the integration of acquisitions, litigation, and tax
outlook – are subject to risks and uncertainties, which could cause
actual results to materially differ from those projected or implied
in the forward-looking statements. Additional risks and
uncertainties are discussed in ResMed’s periodic reports on file
with the U.S. Securities & Exchange Commission. ResMed does not
undertake to update its forward-looking statements.
RESMED INC. AND
SUBSIDIARIES
Condensed Consolidated Statements of
Income
(Unaudited; $ in thousands, except for per
share amounts)
Three Months Ended
Twelve Months Ended
June 30, 2020
June 30, 2019
June 30, 2020
June 30, 2019
Net revenue
$
770,343
$
704,964
$
2,957,013
$
2,606,572
Cost of sales
308,991
287,114
1,189,624
1,069,987
Amortization of acquired intangibles
(1)
11,980
15,418
49,603
42,514
Total cost of sales
$
320,971
$
302,532
$
1,239,227
$
1,112,501
Gross profit
$
449,372
$
402,432
$
1,717,786
$
1,494,071
Selling, general and administrative
165,385
171,600
676,689
645,010
Research and development
52,520
51,138
201,946
180,651
Amortization of acquired intangibles
(1)
8,220
8,019
30,092
32,424
Restructuring expenses (1)
-
9,401
-
9,401
Litigation settlement expenses (1)
-
41,199
(600)
41,199
Acquisition-related expenses (1)
-
-
-
6,123
Total operating expenses
$
226,125
$
281,357
$
908,127
$
914,808
Income from operations
223,247
121,075
809,659
579,263
Other income (expenses), net:
Interest income (expense), net
$
(8,942)
$
(12,264)
$
(39,356)
$
(33,857)
Loss attributable to equity method
investments
(5,976)
(6,463)
(25,058)
(15,833)
Other, net
3,765
(6,587)
(12,157)
(10,726)
Total other income (expenses), net
(11,153)
(25,314)
(76,571)
(60,416)
Income before income taxes
$
212,094
$
95,761
$
733,088
$
518,847
Income taxes
34,259
26,964
111,414
114,255
Net income
$
177,835
$
68,797
$
621,674
$
404,592
Basic earnings per share
$
1.23
$
0.48
$
4.31
$
2.83
Diluted earnings per share
$
1.22
$
0.48
$
4.27
$
2.80
Non-GAAP diluted earnings per share
(1)
$
1.33
$
0.95
$
4.76
$
3.64
Basic shares outstanding
144,792
143,435
144,338
143,111
Diluted shares outstanding
145,866
144,687
145,652
144,484
(1)
See the reconciliation of non-GAAP
financial measures in the table at the end of the press
release.
RESMED INC. AND
SUBSIDIARIES
Condensed Consolidated Balance
Sheets
(Unaudited; $ in thousands)
June 30, 2020
June 30, 2019
ASSETS
Current assets:
Cash and cash equivalents
$
463,156
$
147,128
Accounts receivable, net
474,643
528,484
Inventories
416,915
349,641
Prepayments and other current assets
168,745
120,113
Total current assets
$
1,523,459
$
1,145,366
Non-current assets:
Property, plant and equipment, net
$
417,335
$
387,460
Operating lease right-of-use assets
118,348
-
Goodwill and other intangibles, net
2,338,492
2,378,399
Deferred income taxes and other
non-current assets
189,742
196,457
Total non-current assets
$
3,063,917
$
2,962,316
Total assets
$
4,587,376
$
4,107,682
LIABILITIES AND STOCKHOLDERS’
EQUITY:
Current liabilities:
Accounts payable
$
135,786
$
115,725
Accrued expenses
270,353
266,359
Operating lease liabilities, current
21,263
-
Deferred revenue
98,617
88,667
Income taxes payable
64,755
73,248
Short-term debt
11,987
11,992
Total current liabilities
$
602,761
$
555,991
Non-current liabilities:
Deferred revenue
$
87,307
$
81,143
Deferred income taxes
13,011
11,380
Operating lease liabilities,
non-current
101,880
-
Other long term liabilities
8,347
2,058
Long-term debt
1,164,133
1,258,861
Long-term income taxes payable
112,910
126,056
Total non-current liabilities
$
1,487,588
$
1,479,498
Total liabilities
$
2,090,349
$
2,035,489
STOCKHOLDERS’ EQUITY:
Common stock
$
580
$
575
Additional paid-in capital
1,570,694
1,511,473
Retained earnings
2,832,991
2,436,410
Treasury stock
(1,623,256)
(1,623,256)
Accumulated other comprehensive income
(283,982)
(253,009)
Total stockholders’ equity
$
2,497,027
$
2,072,193
Total liabilities and stockholders'
equity
$
4,587,376
$
4,107,682
RESMED INC. AND
SUBSIDIARIES
Condensed Consolidated Statements of
Cash Flows
(Unaudited; $ in thousands)
Twelve Months Ended
June 30, 2020
June 30, 2019
Cash flows from operating
activities:
Net income
$
621,674
$
404,592
Adjustment to reconcile net income to cash
provided by operating activities:
Depreciation and amortization
154,850
150,795
Amortization of right-of-use-assets
26,523
-
Stock-based compensation costs
57,559
52,073
Loss attributable to equity method
investments
25,058
15,833
Impairment of equity investments
14,519
15,007
Gain on previously held equity
interest
-
(1,909)
Changes in fair value of business
combination contingent consideration
(7)
(286)
Changes in operating assets and
liabilities, net of effect of acquisitions:
Accounts receivable, net
54,383
(18,013)
Inventories, net
(69,881)
(84,188)
Prepaid expenses, net deferred income
taxes and other current assets
(58,999)
(47,575)
Accounts payable, accrued expenses and
other
(23,424)
(27,278)
Net cash provided by operating
activities
$
802,255
$
459,051
Cash flows from investing
activities:
Purchases of property, plant and
equipment
(95,330)
(68,710)
Patent registration costs
(10,608)
(8,632)
Business acquisitions, net of cash
acquired
(27,910)
(951,383)
Purchases of investments
(31,616)
(46,717)
Proceeds / (Payments) on maturity of
foreign currency contracts
(14,397)
(264)
Net cash used in investing activities
$
(179,861)
$
(1,075,706)
Cash flows from financing
activities:
Proceeds from issuance of common stock,
net
48,182
36,727
Taxes paid related to net share settlement
of equity awards
(46,061)
(28,104)
Purchases of treasury stock
-
(22,844)
Payment of business combination contingent
consideration
(302)
(909)
Proceeds from borrowings, net of borrowing
costs
1,190,000
1,519,230
Repayment of borrowings
(1,284,012)
(711,745)
Dividends paid
(225,093)
(211,712)
Net cash (used in) / provided by financing
activities
$
(317,286)
$
580,643
Effect of exchange rate changes on
cash
$
10,920
$
(5,561)
Net increase / (decrease) in cash and cash
equivalents
316,028
(41,573)
Cash and cash equivalents at beginning of
period
147,128
188,701
Cash and cash equivalents at end of
period
$
463,156
$
147,128
RESMED INC. AND
SUBSIDIARIES
Reconciliation of Non-GAAP Financial
Measures
(Unaudited; $ in thousands, except for per
share amounts)
The measures “non-GAAP gross profit” and
“non-GAAP gross margin” excludes amortization expense from acquired
intangibles related to cost of sales and are reconciled below:
Three Months Ended
Twelve Months Ended
June 30, 2020
June 30, 2019
June 30, 2020
June 30, 2019
Revenue
$
770,343
$
704,964
$
2,957,013
$
2,606,572
Add back: Deferred revenue fair value
adjustment (A)
-
1,065
2,102
5,348
Non-GAAP Revenue
$
770,343
$
706,029
$
2,959,115
$
2,611,920
GAAP Cost of sales
$
320,971
$
302,532
$
1,239,227
$
1,112,501
Less: Amortization of acquired intangibles
(A)
(11,980)
(15,418)
(49,603)
(42,514)
Non-GAAP cost of sales
$
308,991
$
287,114
$
1,189,624
$
1,069,987
GAAP gross profit
449,372
402,432
1,717,786
1,494,071
GAAP gross margin
58.3
%
57.1
%
58.1
%
57.3
%
Non-GAAP gross profit
461,352
418,915
1,769,491
1,541,933
Non-GAAP gross margin
59.9
%
59.3
%
59.8
%
59.0
%
The measure “non-GAAP income from
operations” is reconciled with GAAP income from operations
below:
Three Months Ended
Twelve Months Ended
June 30, 2020
June 30, 2019
June 30, 2020
June 30, 2019
GAAP income from operations
$
223,247
$
121,075
$
809,659
$
579,263
Amortization of acquired intangibles -
cost of sales (A)
11,980
15,418
49,603
42,514
Amortization of acquired intangibles -
operating expenses (A)
8,220
8,019
30,092
32,424
Deferred revenue fair value adjustment
(A)
-
1,065
2,102
5,348
Restructuring expenses (A)
-
9,401
-
9,401
Litigation settlement expenses (A)
-
41,199
(600)
41,199
Acquisition related expenses (A)
-
-
-
6,123
Non-GAAP income from operations
$
243,447
$
196,177
$
890,856
$
716,272
RESMED INC. AND
SUBSIDIARIES
Reconciliation of Non-GAAP Financial
Measures
(Unaudited; $ in thousands, except for per
share amounts)
The measures "non-GAAP net income" and
“non-GAAP diluted earnings per share” are reconciled with GAAP net
income and GAAP diluted earnings per share in the table below:
Three Months Ended
Twelve Months Ended
June 30, 2020
June 30, 2019
June 30, 2020
June 30, 2019
GAAP net income
$
177,835
$
68,797
$
621,674
$
404,592
Amortization of acquired intangibles -
cost of sales, net of tax (A)
9,167
11,447
37,933
32,477
Amortization of acquired intangibles -
operating expenses, net of tax (A)
6,290
5,954
23,012
24,769
Deferred revenue fair value adjustment,
net of tax (A)
-
786
1,610
4,067
Restructuring expenses, net of tax (A)
-
7,205
-
7,205
Litigation settlement expenses, net of tax
(A)
-
36,248
(528)
36,248
Fair value impairment of investment
(A)
-
5,000
9,100
5,000
U.S. tax reform
-
2,149
-
6,654
Acquisition-related expenses (A)
-
-
-
5,362
Non-GAAP net income (A)
$
193,292
$
137,586
$
692,801
$
526,374
Diluted shares outstanding
145,866
144,687
145,652
144,484
GAAP diluted earnings per share
$
1.22
$
0.48
$
4.27
$
2.80
Non-GAAP diluted earnings per share
(A)
$
1.33
$
0.95
$
4.76
$
3.64
(A)
ResMed adjusts for the impact of the
amortization of acquired intangibles, deferred revenue fair value
adjustment, restructuring expenses, litigation settlement expenses,
fair value impairment of investment, the impact of U.S. tax reform
on income tax expense and acquisition-related expenses from their
evaluation of ongoing operations, and believes that investors
benefit from adjusting these items to facilitate a more meaningful
evaluation of current operating performance.
ResMed believes that non-GAAP diluted
earnings per share is an additional measure of performance that
investors can use to compare operating results between reporting
periods. ResMed uses non-GAAP information internally in planning,
forecasting, and evaluating the results of operations in the
current period and in comparing it to past periods. ResMed believes
this information provides investors better insight when evaluating
ResMed’s performance from core operations and provides consistent
financial reporting. The use of non-GAAP measures is intended to
supplement, and not to replace, the presentation of net income and
other GAAP measures. Like all non-GAAP measures, non-GAAP earnings
are subject to inherent limitations because they do not include all
the expenses that must be included under GAAP.
RESMED INC. AND
SUBSIDIARIES
Revenue by Product and Region
(Unaudited; $ in millions, except for per
share amounts)
Three Months Ended
June 30, 2020 (A)
June 30, 2019 (A)
% Change
Constant Currency (B)
U.S., Canada and Latin America
Devices
$
205.9
$
202.9
1
%
Masks and other
194.7
182.6
7
Total Sleep and Respiratory Care
$
400.5
$
385.5
4
Software as a Service
91.5
85.2
7
Total
$
492.0
$
470.7
5
Combined Europe, Asia and other
markets
Devices
$
205.8
$
155.5
32
%
35
%
Masks and other
72.6
78.8
- 8
- 6
Total Sleep and Respiratory Care
$
278.3
$
234.3
19
22
Global revenue
Devices
$
411.6
$
358.4
15
%
16
%
Masks and other
267.2
261.4
2
3
Total Sleep and Respiratory Care
$
678.9
$
619.8
10
11
Software as a Service
91.5
85.2
7
7
Total
$
770.3
$
705.0
9
10
Twelve Months Ended
June 30, 2020 (A)
June 30, 2019 (A)
% Change
Constant Currency (B)
U.S., Canada and Latin America
Devices
$
792.8
$
743.1
7
%
Masks and other
779.6
677.4
15
Total Sleep and Respiratory Care
$
1,572.3
$
1,420.5
11
Software as a Service
354.6
275.8
29
Total
$
1,927.0
$
1,696.3
14
Combined Europe, Asia and other
markets
Devices
$
715.1
$
618.5
16
%
19
%
Masks and other
315.0
291.8
8
11
Total Sleep and Respiratory Care
$
1,030.1
$
910.3
13
16
Global revenue
Devices
$
1,507.8
$
1,361.6
11
%
12
%
Masks and other
1,094.6
969.2
13
14
Total Sleep and Respiratory Care
$
2,602.4
$
2,330.8
12
13
Software as a Service
354.6
275.8
29
29
Total
$
2,957.0
$
2,606.6
13
15
(A)
Totals and subtotals may not add due to
rounding.
(B)
In order to provide a framework for
assessing how our underlying businesses performed excluding the
effect of foreign currency fluctuations, we provide certain
financial information on a “constant currency basis,” which is in
addition to the actual financial information presented. In order to
calculate our constant currency information, we translate the
current period financial information using the foreign currency
exchange rates that were in effect during the previous comparable
period. However, constant currency measures should not be
considered in isolation or as an alternative to U.S. dollar
measures that reflect current period exchange rates, or to other
financial measures calculated and presented in accordance with U.S.
GAAP.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200805005938/en/
For investors Amy Wakeham +1 858-836-5000
investorrelations@resmed.com
For media Jayme Rubenstein +1 858-836-6798
news@resmed.com
Resmed (ASX:RMD)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024
Resmed (ASX:RMD)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024