SAN DIEGO, July 30, 2015 /PRNewswire/ -- ResMed Inc.
(NYSE: RMD) today announced results for its quarter ended
June 30, 2015. Revenue for the
quarter was $453.1 million, a 9
percent increase compared with the quarter ended June 30, 2014 (a 17 percent increase on a
constant currency basis). Net income was $87.5 million, consistent with the quarter ended
June 30, 2014. Diluted earnings
per share for the quarter were $0.61,
consistent with the quarter ended June
30, 2014.
The results for the quarter ended June
30, 2015 were impacted by two non-recurring items: first,
expenses of $5.0 million
($3.5 million, net of tax) associated
with the field safety notice in response to results of the SERVE-HF
clinical trial and second, donations of $6.0
million ($3.8 million, net of
tax), which were comprised of a $5.0
million donation to the University of
California - San Diego to fund a center of excellence and
endowed chair in the field of pulmonary and critical care medicine
and an incremental donation of $1.0
million to the ResMed Foundation. Non-GAAP net income
for the quarter ended June 30, 2015
was $96.4 million, a 3 percent
increase compared with the quarter ended June 30, 2014 (non-GAAP measures exclude the
impact of expenses associated with the SERVE-HF field safety
notice, donations and amortization of acquired intangibles in the
current quarter and the restructuring expenses and amortization of
acquired intangibles in the prior year quarter). Non-GAAP
diluted earnings per share for the quarter were $0.68, a 3 percent increase compared with the
quarter ended June 30,
2014.
"We finished the year with strong double-digit constant currency
revenue growth and greater than 50 percent flow generator growth in
the Americas during the fourth quarter. As expected, we have also
achieved a solid return to growth in our mask business. We have
continued our active share repurchase program and the board has
also declared an increase in our dividend," said Mick Farrell, ResMed's chief executive officer.
"This quarter we grew our healthcare informatics capability with
the acquisition of CareTouch and earlier today, we announced the
acquisition of Curative Medical, an investment in China that will provide a complementary brand
with a robust respiratory care and sleep apnea product portfolio.
We will continue to invest in R&D and manufacturing for the
Curative brand in China as we grow
our new ResMed-Curative business." Farrell concluded, "Our
global team ended fiscal year 2015 with a strong $1.7 billion in revenues as we continue to drive
towards our goal of changing 20 million lives by 2020 with
innovative products and solutions that improve patient outcomes,
reduce the impact of chronic disease and lower healthcare
costs."
Analysis of fourth quarter results
In the fourth quarter of fiscal year 2015, revenue in the Americas
was $273.7 million, a 27 percent
increase over the prior year's quarter. Revenue in combined
Europe and Asia Pacific was $179.4
million, a 10 percent decrease compared with the quarter
ended June 30, 2014 (a 5 percent
increase on a constant currency basis).
Including one-off expenses of $5.0
million in relation to the SERVE-HF field safety notice,
gross margin in the fourth quarter was 57.3 percent.
Excluding these one-off expenses, the gross margin for Q4 FY15 was
58.4%, lower than the prior year's quarter, mainly due to an
unfavorable impact from foreign exchange rate movements, an
unfavorable geographic mix, declines in average selling prices and
an unfavorable product mix.
Selling, general and administrative expenses were $123.2 million for the fourth quarter of fiscal
year 2015, a 1 percent increase (a 12 percent increase on a
constant currency basis) over the quarter ended June 30, 2014. SG&A expenses improved to 27.2
percent of revenue in the quarter, compared with 29.4 percent in
the quarter ended June 30,
2014.
Research and development expenses were $28.5 million for the fourth quarter of fiscal
year 2015, or 6.3 percent of revenue. R&D expenses
decreased by 10 percent (a 5 percent increase on a constant
currency basis) compared with the quarter ended June 30, 2014.
Amortization of acquired intangible assets was $2.1 million during the quarter.
Stock-based compensation costs incurred during the quarter of
$13.1 million consisted of expenses
associated with employee equity grants, and the company's employee
stock purchase plan.
Operating profit for the quarter was $99.5 million and cash flow from operations was
$99.6 million.
Fiscal year 2015 results
Revenue for the year
ended June 30, 2015 was $1.7 billion, an 8 percent increase compared with
the year ended June 30, 2014 (a 13
percent increase on a constant currency basis). Net income
was $352.9 million, a 2% increase
compared with the year ended June 30,
2014. Diluted earnings per share for the year were
$2.47, a 3% increase compared with
the year ended June 30, 2014.
Non-GAAP earnings per share for the year were $2.57, a 4% increase compared with the year ended
June 30, 2014.
Share repurchase program
During the quarter,
the company repurchased 941,000 shares at a cost of $55.9 million, as part of its ongoing capital
management program.
Dividend program
The ResMed board of directors
today declared a quarterly dividend of $0.30 per share, an increase of 7 percent from
the previous dividend. The dividend will have a record date of
August 20, 2015, payable on
September 17, 2015. 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
Instruments 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 18, 2015 for common stock
holders 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 18, 2015 through
August 20, 2015, inclusive.
Webcast details
ResMed will discuss its financial and business results and outlook
on its webcast at 1:30 p.m. U.S.
Pacific Standard Time today. The live webcast of the call can be
accessed on ResMed's Investor Relations website at
investors.resmed.com. Please go to this section of the
website and click on the icon for the "Q4 2015 earnings webcast" to
register and listen to the live webcast. The online archive of the
broadcast will be available on ResMed's website after the live
call. In addition, a telephone replay of the conference call will
be available approximately two hours after the call by dialing
855-859-2056 (U.S.) and +1 404-537-3406 (international) and
entering a passcode of 77902512. The telephone replay will be
available until August 13, 2015.
About ResMed
The global team at ResMed (NYSE:RMD) is united in the commitment to
change millions of lives with every breath. With more than
4,000 employees and a presence in over 100 countries, the company
has been pioneering new and innovative devices and treatments for
sleep-disordered breathing, chronic obstructive pulmonary
disease, and other chronic diseases for more than 25 years.
ResMed's world-leading products and innovative solutions improve
the quality of life for millions of patients worldwide, reduce the
impact of chronic disease, and save healthcare costs. For more
information about ResMed and its businesses,
visit www.resmed.com or follow @resmed on Twitter.
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 and new markets for its
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. 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.
Investors:
Agnes Lee
Senior Director, Investor Relations
(858) 836-5971
investorrelations@resmed.com
News Media:
Alison Graves
Director, Global Corporate Communications
(858) 836-6789
news@resmed.com
RESMED INC AND
SUBSIDIARIES
|
Condensed
Consolidated Statements of Income (Unaudited)
|
(In thousands, except
per share data)
|
|
|
Three Months
Ended
June 30,
|
Twelve Months
Ended
June 30,
|
|
2015
|
2014
|
2015
|
2014
|
|
|
|
|
|
Net
revenue
|
$453,064
|
$415,211
|
$1,678,912
|
$1,554,973
|
Cost of
sales
|
188,605
|
153,953
|
662,487
|
565,187
|
SERVE-HF field safety
notice expenses(1)
|
5,029
|
-
|
5,029
|
-
|
Gross
profit
|
259,430
|
261,258
|
1,011,396
|
989,786
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
Selling, general and
administrative
|
123,250
|
122,242
|
472,627
|
450,414
|
Research and
development
|
28,523
|
31,796
|
114,865
|
118,226
|
Restructuring
expenses(1)
|
-
|
6,326
|
-
|
6,326
|
Donations(1)
|
6,000
|
-
|
6,000
|
-
|
Amortization of
acquired intangible assets
|
2,110
|
2,408
|
8,668
|
9,733
|
Total operating
expenses
|
159,883
|
162,772
|
602,160
|
584,699
|
Income from
operations(1)
|
99,547
|
98,486
|
409,236
|
405,087
|
|
|
|
|
|
Other income
(expenses), net:
|
|
|
|
|
Interest income
(expense), net
|
4,666
|
5,925
|
20,430
|
25,107
|
Other, net
|
(97)
|
2,224
|
6,250
|
884
|
Total other income
(expenses), net
|
4,569
|
8,149
|
26,680
|
25,991
|
|
|
|
|
|
Income before income
taxes
|
104,116
|
106,635
|
435,916
|
431,078
|
Income
taxes
|
16,654
|
18,897
|
83,030
|
85,805
|
Net
income(1)
|
$87,462
|
$87,738
|
$352,886
|
$345,273
|
|
|
|
|
|
Basic earnings per
share
|
$0.62
|
$0.62
|
$2.51
|
$2.44
|
Diluted earnings per
share(1)
|
$0.61
|
$0.61
|
$2.47
|
$2.39
|
Non-GAAP diluted
earnings per share, excluding the impact of SERVE-HF field safety
notice expenses, donations, restructuring expenses and amortization
of acquired intangible assets(1)
|
$0.68
|
$0.66
|
$2.57
|
$2.47
|
|
|
|
|
|
Basic shares
outstanding
|
140,819
|
140,537
|
140,468
|
141,474
|
Diluted shares
outstanding
|
142,702
|
143,086
|
142,687
|
144,359
|
|
|
|
|
|
(1) See reconciliation of
non-GAAP financial measures in table at end of press
release.
|
RESMED INC AND
SUBSIDIARIES
|
Condensed
Consolidated Balance Sheets (Unaudited - In thousands)
|
|
|
June 30,
|
June 30,
|
|
2015
|
2014
|
ASSETS
|
|
|
Current
assets:
|
|
|
Cash and cash
equivalents
|
$717,249
|
$905,730
|
Accounts receivable,
net
|
362,568
|
359,593
|
Inventories
|
246,859
|
165,418
|
Prepayments, deferred
income taxes and other current assets
|
117,506
|
125,468
|
Total current
assets
|
1,444,182
|
1,556,209
|
Property, plant and
equipment, net
|
387,758
|
434,277
|
Goodwill and other
intangible assets, net
|
311,403
|
334,510
|
Deferred income taxes
and other non-current assets
|
40,917
|
35,966
|
Total non-current
assets
|
740,078
|
804,753
|
Total
assets
|
$2,184,260
|
$2,360,962
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
Current
liabilities:
|
|
|
Accounts
payable
|
$81,112
|
$85,405
|
Accrued
expenses
|
132,976
|
130,656
|
Deferred
revenue
|
36,097
|
42,370
|
Income taxes
payable
|
16,278
|
10,392
|
Deferred income
taxes
|
796
|
717
|
Current portion of
long-term debt
|
0
|
18
|
Total current
liabilities
|
267,259
|
269,558
|
Non-current
liabilities:
|
|
|
Deferred income
taxes
|
8,062
|
10,716
|
Deferred
revenue
|
19,284
|
16,352
|
Income taxes
payable
|
1,754
|
5,318
|
Non-current portion
of long-term debt
|
300,594
|
300,770
|
Total non-current
liabilities
|
329,694
|
333,156
|
Total
liabilities
|
596,953
|
602,714
|
STOCKHOLDERS'
EQUITY:
|
|
|
Common
stock
|
562
|
561
|
Additional paid-in
capital
|
1,228,795
|
1,117,644
|
Retained
earnings
|
1,976,020
|
1,780,396
|
Treasury
stock
|
(1,444,554)
|
(1,291,910)
|
Accumulated other
comprehensive income
|
(173,516)
|
151,557
|
Total stockholders'
equity
|
$1,587,307
|
$1,758,248
|
|
|
|
Total liabilities and stockholders'
equity
|
$2,184,260
|
$2,360,962
|
|
|
|
RESMED INC AND
SUBSIDIARIES
|
Condensed
Consolidated Statements of Cash Flows (Unaudited - In
thousands)
|
|
|
Year Ended
June 30,
|
Year Ended
June 30,
|
|
2015
|
2014
|
Cash flows from
operating activities:
|
|
|
Net income
|
$352,886
|
$345,273
|
Adjustment to
reconcile net income to net cash provided by operating
activities:
|
|
|
Depreciation and
amortization
|
73,056
|
73,454
|
Changes in fair value
of business combination contingent consideration
|
(132)
|
(6,283)
|
Gain on disposal of
business
|
(709)
|
-
|
Stock-based
compensation costs
|
47,855
|
43,457
|
Excess tax benefit
from stock-based compensation arrangements
|
(24,959)
|
(16,335)
|
Changes in operating
assets and liabilities, net of effect of acquisitions:
|
|
|
Accounts receivable,
net
|
(28,259)
|
(35,108)
|
Inventories,
net
|
(99,524)
|
(15,851)
|
Prepaid expenses, net
deferred income taxes and other current assets
|
(22,849)
|
5,814
|
Accounts payable,
accrued expenses and other liabilities
|
85,815
|
(3,153)
|
Net cash provided by
operating activities
|
383,180
|
391,268
|
Cash flows from
investing activities:
|
|
|
Purchases of
property, plant and equipment
|
(62,502)
|
(72,722)
|
Patent registration
costs
|
(9,442)
|
(8,434)
|
Business
acquisitions, net of cash acquired
|
(29,407)
|
(3,852)
|
Investments in
cost-method investments
|
(10,750)
|
(10,850)
|
Proceeds from sale of
business
|
937
|
-
|
Purchases of foreign
currency contracts
|
(700)
|
(1,477)
|
(Payments) / Proceeds
on maturity of foreign currency contracts
|
(31,207)
|
2,348
|
Net cash used in
investing activities
|
(143,071)
|
(94,987)
|
Cash flows from
financing activities:
|
|
|
Proceeds from
issuance of common stock, net
|
38,806
|
33,354
|
Excess tax benefit
from stock-based compensation arrangements
|
24,959
|
16,335
|
Purchases of treasury
stock
|
(160,300)
|
(202,169)
|
Payment of business
combination contingent consideration
|
(458)
|
(1,117)
|
Proceeds from
borrowings, net of borrowing costs
|
160,000
|
557,834
|
Repayment of
borrowings
|
(161,536)
|
(560,035)
|
Dividends
paid
|
(157,262)
|
(141,518)
|
Net cash (used in) /
provided by financing activities
|
(255,791)
|
(297,316)
|
Effect of exchange
rate changes on cash
|
(172,799)
|
30,717
|
Net increase /
(decrease) in cash and cash equivalents
|
(188,481)
|
29,682
|
Cash and cash
equivalents at beginning of period
|
905,730
|
876,048
|
Cash and cash
equivalents at end of period
|
717,249
|
905,730
|
Reconciliation of
Non-GAAP Financial Measures (Unaudited)
|
(In US$ thousands,
except share and per share data)
|
|
The measure,
"non-GAAP operating income" is reconciled with GAAP income from
operations below:
|
|
|
Three Months
Ended
June 30,
|
Twelve Months
Ended
June 30,
|
|
2015
|
2014
|
2015
|
2014
|
GAAP income from
operations
|
99,547
|
98,486
|
409,236
|
405,087
|
SERVE-HF field safety
notice expenses
|
5,029
|
-
|
5,029
|
-
|
Donations
|
6,000
|
-
|
6,000
|
-
|
Restructuring
expenses
|
-
|
6,326
|
-
|
6,326
|
Amortization of
acquired intangible assets (A)
|
2,110
|
2,408
|
8,668
|
9,733
|
Non-GAAP operating
income (excluding the impact of SERVE-HF field safety notice
expenses, donations, restructuring expenses and amortization of
acquired intangible assets)
|
112,686
|
107,220
|
428,933
|
421,146
|
|
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
June 30,
|
Twelve Months
Ended
June 30,
|
|
2015
|
2014
|
2015
|
2014
|
GAAP net
income
|
87,462
|
87,738
|
352,886
|
345,273
|
SERVE-HF field safety
notice expenses, net of tax (A)
|
3,521
|
-
|
3,521
|
-
|
Donations, net of tax
(A)
|
3,796
|
-
|
3,796
|
-
|
Restructuring
expenses, net of tax (A)
|
-
|
4,222
|
-
|
4,222
|
Amortization of
acquired intangible assets, net of tax
(A)
|
1,600
|
1,843
|
6,551
|
7,406
|
Non-GAAP net income
(A)
|
96,379
|
93,803
|
366,754
|
356,901
|
Diluted shares
outstanding
|
142,702
|
143,086
|
142,687
|
144,359
|
GAAP diluted earnings
per share
|
$0.61
|
$0.61
|
$2.47
|
$2.39
|
Non-GAAP diluted
earnings per share (A)
|
$0.68
|
$0.66
|
$2.57
|
$2.47
|
|
|
(A)
|
ResMed excludes
SERVE-HF field safety notice expenses, donations, restructuring
expenses and amortization of acquired intangible assets from their
evaluation of ongoing operations and believes investors benefit
from excluding these charges to facilitate a more meaningful
evaluation of current operating performance.
|
|
|
|
ResMed believes that
diluted earnings per share, which exclude the impact of SERVE-HF
field safety notice expenses, donations, restructuring expenses and
the amortization of acquired intangible assets, is an additional
measure of performance 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 in evaluating ResMed's performance from core
operations and provides consistent financial reporting. Our use of
non-GAAP measures is intended to supplement, and not to replace,
our 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.
|
Logo -
http://photos.prnewswire.com/prnh/20140310/LA79234LOGO-a
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/resmed-inc-announces-results-for-the-fourth-quarter-and-fiscal-year-2015-300121547.html
SOURCE ResMed Inc.