BusinessWire

ResMed Inc. Announces Results for the Fourth Quarter of Fiscal Year 2020

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

SAN DIEGO--(BUSINESS WIRE)--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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Contacts

For investors
Amy Wakeham
+1 858-836-5000
investorrelations@resmed.com

For media
Jayme Rubenstein
+1 858-836-6798
news@resmed.com


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