ResMed Inc. Announces Results for the Third Quarter of Fiscal Year
2022
ResMed Inc. (NYSE: RMD, ASX: RMD) today announced results for its
quarter ended March 31, 2022.
Third Quarter 2022 HighlightsAll comparisons
are to the prior year period
- Revenue increased by
12% to $864.5 million; up 14% on a constant currency
basis
- Gross margin
contracted 140 bps to 56.8%; non-GAAP gross margin
contracted 150 bps to 58.1%
- Income from
operations increased 5%; non-GAAP operating profit up
5%
- Diluted earnings per
share of $1.22; non-GAAP diluted earnings per share of
$1.32
“Our third-quarter results reflect strong performance across our
business, resulting in double-digit top-line revenue growth
including extraordinary demand in our sleep and respiratory care
business segment as well as solid high-single-digit growth in our
software-as-a-service segment,” said Mick Farrell, ResMed CEO. “I
am proud of our global team’s ability to pivot and drive continued
growth while ongoing supply chain disruptions and a competitor’s
recall continue to limit our ability to meet the incredible demand
for our products. We remain focused on delivering products,
software, and services for patients, working closely with our
supply chain partners as well as physicians, providers, and beyond,
to prioritize care for patients who most need it.
“While the current industry and macroeconomic environment remain
uncertain, our long-term strategy allows us to keep our focus on
helping 250 million lives in 2025. Our end-market demand from
patients and providers remains strong, and our digital health
technologies continue to deliver value. We are supporting patients
with the world-leading portfolio of sleep apnea therapy,
respiratory care therapy, and digital health solutions they need,
as we deliver value for all of our customers.”
Financial Results and Operating
MetricsUnaudited; $ in millions, except for per share
amounts
| |
Three Months Ended |
| |
March 31,2022 |
|
March 31,2021 |
|
% Change |
|
ConstantCurrency (A) |
|
Revenue |
$ |
864.5 |
|
|
$ |
768.8 |
|
|
12 |
% |
|
14 |
% |
| Gross margin (B) |
|
56.8 |
% |
|
|
58.2 |
% |
|
(2 |
) |
|
|
| Non-GAAP gross
margin (B) |
|
58.1 |
% |
|
|
59.6 |
% |
|
(3 |
) |
|
|
| Selling, general, and
administrative expenses |
|
182.4 |
|
|
|
160.4 |
|
|
14 |
|
|
17 |
|
| Research and development
expenses |
|
66.8 |
|
|
|
55.9 |
|
|
19 |
|
|
22 |
|
| Income from operations |
|
234.3 |
|
|
|
223.4 |
|
|
5 |
|
|
|
| Non-GAAP income from
operations (B) |
|
253.0 |
|
|
|
241.8 |
|
|
5 |
|
|
|
| Net income (loss) |
|
179.0 |
|
|
|
(78.5 |
) |
|
NM |
|
|
| Non-GAAP net
income (B) |
|
193.3 |
|
|
|
190.4 |
|
|
2 |
|
|
|
| Diluted earnings (loss) per
share |
$ |
1.22 |
|
|
$ |
(0.54 |
) |
|
NM |
|
|
| Non-GAAP diluted earnings
per share (B) |
$ |
1.32 |
|
|
$ |
1.30 |
|
|
2 |
|
|
|
NM Not
meaningful
| |
Nine Months Ended |
| |
March 31,2022 |
|
March 31,2021 |
|
% Change |
|
ConstantCurrency (A) |
|
Revenue |
$ |
2,663.4 |
|
|
$ |
2,320.7 |
|
|
15 |
% |
|
15 |
% |
| Gross margin (B) |
|
56.4 |
% |
|
|
58.1 |
% |
|
(3 |
) |
|
|
| Non-GAAP gross
margin (B) |
|
57.6 |
% |
|
|
59.8 |
% |
|
(4 |
) |
|
|
| Selling, general, and
administrative expenses |
|
544.5 |
|
|
|
488.9 |
|
|
11 |
|
|
13 |
|
| Research and development
expenses |
|
189.3 |
|
|
|
165.4 |
|
|
14 |
|
|
15 |
|
| Income from operations |
|
744.9 |
|
|
|
662.0 |
|
|
13 |
|
|
|
| Non-GAAP income from
operations (B) |
|
801.3 |
|
|
|
733.4 |
|
|
9 |
|
|
|
| Net income |
|
584.4 |
|
|
|
279.4 |
|
|
109 |
|
|
|
| Non-GAAP net
income (B) |
|
631.5 |
|
|
|
582.2 |
|
|
8 |
|
|
|
| Diluted earnings per
share |
$ |
3.97 |
|
|
$ |
1.91 |
|
|
108 |
|
|
|
| Non-GAAP diluted earnings
per share (B) |
$ |
4.30 |
|
|
$ |
3.98 |
|
|
8 |
|
|
|
(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 Third Quarter ResultsAll
comparisons are to the prior year period unless otherwise noted
- Revenue grew by 14 percent on a constant currency basis,
driven by increased demand for our sleep and respiratory care
devices and increased demand following a recent product recall by
one of our competitors.
- Revenue in the U.S., Canada, and Latin America, excluding
software-as-a-service, grew by 18 percent, primarily due to the
factors discussed above and recovery of core sleep patient flow
that was previously impacted by COVID-19.
- Revenue in Europe, Asia, and other markets grew by
11 percent on a constant currency basis, primarily due to the
factors discussed above.
- Software-as-a-service revenue increased by 8 percent,
due to continued growth in our Durable Medical Equipment category
and stabilizing patient flow in out-of-hospital care
settings.
- Gross margin decreased by 140 basis points
and non-GAAP gross margin decreased by 150 basis points,
mainly due to higher freight and manufacturing costs, partially
offset by favorable product mix changes and increase in average
selling prices.
- Selling, general, and administrative expenses increased by
17 percent on a constant currency basis. SG&A expenses
increased to 21.1 percent of revenue in the quarter, compared
with 20.9 percent in the same period of the prior year. These
changes in SG&A expenses were mainly due to increases in
employee-related expenses.
- Income from operations increased by 5 percent
and non-GAAP income from operations increased by 5
percent.
- Net income for the quarter was $179.0 million and diluted
earnings per share was $1.22. Non-GAAP net income grew by
2 percent and non-GAAP diluted earnings per share
grew by 2 percent, predominantly attributable to strong sales,
partially offset by higher operating expenses.
- Operating cash flow for the quarter was $117.4 million,
compared to net income in the current quarter of $179.0 million
and non-GAAP net income of $193.3 million. During the
quarter we paid $61.4 million in dividends.
Other Business and Operational Highlights
- Announced appointment of Urvashi
Tyagi as new Chief Technology Officer and Bobby Ghoshal transitions
to be President of ResMed’s software-as-a-service business
segment full-time. Tyagi leads ResMed’s digital health technology
team, driving innovation and adoption of world-leading cloud-based
digital health platforms and investments in emerging
technologies.
- Published 2022 Global Sleep Surveys
as part of National Sleep Awareness Week (March 13-19) and World
Sleep Day (March 18). The surveys, conducted in the first quarter
of the calendar year, asked nearly 25,000 respondents in 12
countries what’s keeping them up at night; the results aim to build
awareness of the critical role good sleep plays in physical and
mental health.
Dividend programThe ResMed board of directors
today declared a quarterly cash dividend of $0.42 per share. The
dividend will have a record date of May 12, 2022, payable on
June 16, 2022. 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 May 11, 2022,
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 May 11, 2022, through May 12, 2022,
inclusive.
Webcast detailsResMed will discuss its
third-quarter fiscal year 2022 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 “Q3 2022 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
+1 877-660-6853 (U.S.) or
+1 201-612-7415 (outside U.S.) and entering the passcode
13727876. The telephone replay will be available until May 12,
2022.
About ResMedAt 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 statementStatements 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.
Condensed Consolidated Statements of
Operations(Unaudited; $ in thousands, except for per share
amounts)
| |
Three Months Ended |
|
Nine Months Ended |
| |
March 31,2022 |
|
March 31,2021 |
|
March 31,2022 |
|
March 31,2021 |
|
Net revenue |
$ |
864,500 |
|
|
$ |
768,767 |
|
|
$ |
2,663,390 |
|
|
$ |
2,320,722 |
|
| Cost of sales |
|
362,321 |
|
|
|
310,585 |
|
|
|
1,128,314 |
|
|
|
933,021 |
|
| Amortization of acquired
intangibles (1) |
|
10,982 |
|
|
|
10,924 |
|
|
|
33,271 |
|
|
|
34,066 |
|
| Restructuring—cost of
sales (1) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5,232 |
|
| Total cost of sales |
$ |
373,303 |
|
|
$ |
321,509 |
|
|
$ |
1,161,585 |
|
|
$ |
972,319 |
|
| Gross profit |
$ |
491,197 |
|
|
$ |
447,258 |
|
|
$ |
1,501,805 |
|
|
$ |
1,348,403 |
|
| Selling, general, and
administrative |
|
182,401 |
|
|
|
160,446 |
|
|
|
544,483 |
|
|
|
488,904 |
|
| Research and development |
|
66,801 |
|
|
|
55,941 |
|
|
|
189,258 |
|
|
|
165,409 |
|
| Amortization of acquired
intangibles (1) |
|
7,730 |
|
|
|
7,445 |
|
|
|
23,175 |
|
|
|
23,377 |
|
| Restructuring—operating
expenses (1) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
8,673 |
|
| Total operating expenses |
$ |
256,932 |
|
|
$ |
223,832 |
|
|
$ |
756,916 |
|
|
$ |
686,363 |
|
| Income from operations |
|
234,265 |
|
|
|
223,426 |
|
|
|
744,889 |
|
|
|
662,040 |
|
| Other income (expenses),
net: |
|
|
|
|
|
|
|
| Interest income (expense),
net |
$ |
(5,462 |
) |
|
$ |
(5,823 |
) |
|
$ |
(16,770 |
) |
|
$ |
(18,341 |
) |
| Loss attributable to equity
method investments |
|
(2,627 |
) |
|
|
(4,969 |
) |
|
|
(5,927 |
) |
|
|
(9,895 |
) |
| Gain (loss) on equity
investments |
|
(1,735 |
) |
|
|
4,666 |
|
|
|
(527 |
) |
|
|
9,442 |
|
| Other, net |
|
1,878 |
|
|
|
705 |
|
|
|
729 |
|
|
|
1,205 |
|
| Total other income (expenses),
net |
|
(7,946 |
) |
|
|
(5,421 |
) |
|
|
(22,495 |
) |
|
|
(17,589 |
) |
| Income before income
taxes |
$ |
226,319 |
|
|
$ |
218,005 |
|
|
$ |
722,394 |
|
|
$ |
644,451 |
|
| Income taxes |
|
47,307 |
|
|
|
296,486 |
|
|
|
138,018 |
|
|
|
365,046 |
|
| Net income (loss) |
$ |
179,012 |
|
|
$ |
(78,481 |
) |
|
$ |
584,376 |
|
|
$ |
279,405 |
|
| Basic earnings per share |
$ |
1.22 |
|
|
$ |
(0.54 |
) |
|
$ |
4.00 |
|
|
$ |
1.92 |
|
| Diluted earnings per
share |
$ |
1.22 |
|
|
$ |
(0.54 |
) |
|
$ |
3.97 |
|
|
$ |
1.91 |
|
| Non-GAAP diluted earnings
per share (1) |
$ |
1.32 |
|
|
$ |
1.30 |
|
|
$ |
4.30 |
|
|
$ |
3.98 |
|
| Basic shares outstanding |
|
146,240 |
|
|
|
145,513 |
|
|
|
145,969 |
|
|
|
145,217 |
|
| Diluted shares
outstanding |
|
146,962 |
|
|
|
145,513 |
|
|
|
147,034 |
|
|
|
146,394 |
|
(1) See the reconciliation
of non-GAAP financial measures in the table at the end of
the press release.
Condensed Consolidated Balance
Sheets(Unaudited; $ in thousands)
| |
March 31,2022 |
|
June 30,2021 |
| ASSETS |
|
|
|
| Current assets: |
|
|
|
|
Cash and cash equivalents |
$ |
201,769 |
|
|
$ |
295,278 |
|
| Accounts receivable, net |
|
508,580 |
|
|
|
614,292 |
|
| Inventories |
|
664,943 |
|
|
|
457,033 |
|
| Prepayments and other current
assets |
|
329,008 |
|
|
|
208,154 |
|
| Total current assets |
$ |
1,704,300 |
|
|
$ |
1,574,757 |
|
| Non-current assets: |
|
|
|
| Property, plant, and
equipment, net |
$ |
513,250 |
|
|
$ |
463,490 |
|
| Operating
lease right-of-use assets |
|
141,173 |
|
|
|
128,575 |
|
| Goodwill and other
intangibles, net |
|
2,302,301 |
|
|
|
2,320,483 |
|
| Deferred income taxes and
other non-current assets |
|
244,240 |
|
|
|
240,820 |
|
|
Total non-current assets |
$ |
3,200,964 |
|
|
$ |
3,153,368 |
|
| Total assets |
$ |
4,905,264 |
|
|
$ |
4,728,125 |
|
| LIABILITIES AND
STOCKHOLDERS’ EQUITY: |
|
|
|
| Current liabilities: |
|
|
|
| Accounts payable |
$ |
149,797 |
|
|
$ |
138,008 |
|
| Accrued expenses |
|
326,276 |
|
|
|
320,599 |
|
| Operating lease liabilities,
current |
|
24,130 |
|
|
|
23,585 |
|
| Deferred revenue |
|
112,449 |
|
|
|
109,611 |
|
| Income taxes payable |
|
42,646 |
|
|
|
307,963 |
|
| Short-term debt |
|
11,967 |
|
|
|
12,000 |
|
| Total current liabilities |
$ |
667,265 |
|
|
$ |
911,766 |
|
|
Non-current liabilities: |
|
|
|
| Deferred revenue |
$ |
94,094 |
|
|
$ |
91,496 |
|
| Deferred income taxes |
|
10,711 |
|
|
|
11,319 |
|
| Operating lease
liabilities, non-current |
|
127,254 |
|
|
|
114,779 |
|
| Other long-term
liabilities |
|
5,103 |
|
|
|
6,802 |
|
| Long-term debt |
|
668,735 |
|
|
|
643,351 |
|
| Long-term income taxes
payable |
|
53,298 |
|
|
|
62,933 |
|
|
Total non-current liabilities |
$ |
959,195 |
|
|
$ |
930,680 |
|
| Total liabilities |
$ |
1,626,460 |
|
|
$ |
1,842,446 |
|
| STOCKHOLDERS’
EQUITY: |
|
|
|
| Common stock |
$ |
585 |
|
|
$ |
583 |
|
|
Additional paid-in capital |
|
1,645,453 |
|
|
|
1,622,199 |
|
| Retained earnings |
|
3,480,163 |
|
|
|
3,079,640 |
|
| Treasury stock |
|
(1,623,256 |
) |
|
|
(1,623,256 |
) |
| Accumulated other
comprehensive income |
|
(224,141 |
) |
|
|
(193,487 |
) |
| Total stockholders’
equity |
$ |
3,278,804 |
|
|
$ |
2,885,679 |
|
| Total liabilities and
stockholders’ equity |
$ |
4,905,264 |
|
|
$ |
4,728,125 |
|
Condensed Consolidated Statements of Cash
Flows(Unaudited; $ in thousands)
| |
Nine months ended |
| |
March 31,2022 |
|
March 31,2021 |
| Cash flows from
operating activities: |
|
|
|
|
Net income |
$ |
584,376 |
|
|
$ |
279,405 |
|
| Adjustment to reconcile net
income to cash provided by operating activities: |
|
|
|
| Depreciation and
amortization |
|
122,198 |
|
|
|
120,034 |
|
| Amortization
of right-of-use assets |
|
26,636 |
|
|
|
25,805 |
|
| Stock-based compensation
costs |
|
49,265 |
|
|
|
47,032 |
|
| Loss attributable to equity
method investments |
|
5,927 |
|
|
|
9,895 |
|
| (Gain) loss on equity
investment |
|
527 |
|
|
|
(9,442 |
) |
| Restructuring expenses |
|
— |
|
|
|
8,673 |
|
| Changes in operating assets
and liabilities: |
|
|
|
| Accounts receivable, net |
|
98,158 |
|
|
|
(39,899 |
) |
| Inventories, net |
|
(209,476 |
) |
|
|
(48,393 |
) |
| Prepaid expenses, net deferred
income taxes and other current assets |
|
(127,977 |
) |
|
|
(41,036 |
) |
| Accounts payable, accrued
expenses, income taxes payable and other |
|
(277,973 |
) |
|
|
158,119 |
|
| Net cash (used in) / provided
by operating activities |
$ |
271,661 |
|
|
$ |
510,193 |
|
| Cash flows from
investing activities: |
|
|
|
| Purchases of property, plant,
and equipment |
|
(106,192 |
) |
|
|
(74,805 |
) |
| Patent registration and
acquisition costs |
|
(17,449 |
) |
|
|
(11,149 |
) |
| Business acquisitions, net of
cash acquired |
|
(35,915 |
) |
|
|
(30,704 |
) |
| Purchases of investments |
|
(16,614 |
) |
|
|
(20,038 |
) |
| Proceeds from sale of
investment |
|
6,802 |
|
|
|
— |
|
| (Payments) / proceeds on
maturity of foreign currency contracts |
|
(5,309 |
) |
|
|
26,306 |
|
| Net cash used in investing
activities |
$ |
(174,677 |
) |
|
$ |
(110,390 |
) |
| Cash flows from
financing activities: |
|
|
|
| Proceeds from issuance of
common stock, net |
|
26,269 |
|
|
|
18,759 |
|
| Taxes paid related to net
share settlement of equity awards |
|
(52,278 |
) |
|
|
(49,938 |
) |
| Payments of business
combination contingent consideration |
|
— |
|
|
|
(3,500 |
) |
| Proceeds from borrowings, net
of borrowing costs |
|
160,000 |
|
|
|
90,000 |
|
| Repayment of borrowings |
|
(136,000 |
) |
|
|
(536,000 |
) |
| Dividends paid |
|
(183,853 |
) |
|
|
(169,917 |
) |
| Net cash (used in) / provided
by financing activities |
$ |
(185,862 |
) |
|
$ |
(650,596 |
) |
| Effect of exchange rate
changes on cash |
$ |
(4,631 |
) |
|
$ |
18,272 |
|
| Net increase / (decrease) in
cash and cash equivalents |
|
(93,509 |
) |
|
|
(232,521 |
) |
| Cash and cash equivalents at
beginning of period |
|
295,278 |
|
|
|
463,156 |
|
| Cash and cash
equivalents at end of period |
$ |
201,769 |
|
|
$ |
230,635 |
|
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” exclude amortization expense
from acquired intangibles related to cost of sales and are
reconciled below:
| |
Three Months Ended |
|
Nine Months Ended |
| |
March 31, 2022 |
|
March 31, 2021 |
|
March 31, 2022 |
|
March 31, 2021 |
|
Revenue |
$ |
864,500 |
|
|
$ |
768,767 |
|
|
$ |
2,663,390 |
|
|
$ |
2,320,722 |
|
| GAAP Cost of sales |
$ |
373,303 |
|
|
$ |
321,509 |
|
|
$ |
1,161,585 |
|
|
$ |
972,319 |
|
| Less: Amortization of
acquired intangibles (A) |
|
(10,982 |
) |
|
|
(10,924 |
) |
|
|
(33,271 |
) |
|
|
(34,066 |
) |
| Less: Restructuring—cost
of sales (A) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(5,232 |
) |
| Non-GAAP cost of
sales |
$ |
362,321 |
|
|
$ |
310,585 |
|
|
$ |
1,128,314 |
|
|
$ |
933,021 |
|
| GAAP gross profit |
$ |
491,197 |
|
|
$ |
447,258 |
|
|
$ |
1,501,805 |
|
|
$ |
1,348,403 |
|
| GAAP gross margin |
|
56.8 |
% |
|
|
58.2 |
% |
|
|
56.4 |
% |
|
|
58.1 |
% |
| Non-GAAP gross
profit |
$ |
502,179 |
|
|
$ |
458,182 |
|
|
$ |
1,535,076 |
|
|
$ |
1,387,701 |
|
| Non-GAAP gross
margin |
|
58.1 |
% |
|
|
59.6 |
% |
|
|
57.6 |
% |
|
|
59.8 |
% |
The measure “non-GAAP income from operations” is
reconciled with GAAP income from operations below:
| |
Three Months Ended |
|
Nine Months Ended |
| |
March 31,2022 |
|
March 31,2021 |
|
March 31,2022 |
|
March 31,2021 |
|
GAAP income from operations |
$ |
234,265 |
|
$ |
223,426 |
|
$ |
744,889 |
|
$ |
662,040 |
| Amortization of acquired
intangibles—cost of sales (A) |
|
10,982 |
|
|
10,924 |
|
|
33,271 |
|
|
34,066 |
| Amortization of acquired
intangibles—operating expenses (A) |
|
7,730 |
|
|
7,445 |
|
|
23,175 |
|
|
23,377 |
| Restructuring—cost of
sales (A) |
|
— |
|
|
— |
|
|
— |
|
|
5,232 |
| Restructuring—operating
expenses (A) |
|
— |
|
|
— |
|
|
— |
|
|
8,673 |
| Non-GAAP income from
operations |
$ |
252,977 |
|
$ |
241,795 |
|
$ |
801,335 |
|
$ |
733,388 |
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 |
|
Nine Months Ended |
| |
March 31,2022 |
|
March 31,2021 |
|
March 31,2022 |
|
March 31,2021 |
|
GAAP net income (loss) |
$ |
179,012 |
|
$ |
(78,481 |
) |
|
$ |
584,376 |
|
$ |
279,405 |
|
| Amortization of acquired
intangibles—cost of sales, net of tax(A) |
|
8,374 |
|
|
8,395 |
|
|
|
25,373 |
|
|
26,136 |
|
| Amortization of acquired
intangibles—operating expenses, net of tax(A) |
|
5,894 |
|
|
5,721 |
|
|
|
17,673 |
|
|
17,936 |
|
| Reserve for disputed tax
position(A) |
|
— |
|
|
254,776 |
|
|
|
4,111 |
|
|
254,776 |
|
| Restructuring—cost of sales, net
of tax(A) |
|
— |
|
|
— |
|
|
|
— |
|
|
4,663 |
|
| Restructuring—operating expenses,
net of tax(A) |
|
— |
|
|
— |
|
|
|
— |
|
|
7,730 |
|
| (Gain) loss on equity
investments(A) |
|
— |
|
|
— |
|
|
|
— |
|
|
(8,476 |
) |
| Non-GAAP net income(A) |
$ |
193,280 |
|
$ |
190,411 |
|
|
$ |
631,533 |
|
$ |
582,170 |
|
| GAAP diluted shares
outstanding |
|
146,962 |
|
|
145,513 |
|
|
|
147,034 |
|
|
146,394 |
|
| Anti-dilutive shares excluded
from GAAP |
|
— |
|
|
858 |
|
|
|
— |
|
|
— |
|
| Non-GAAP diluted shares
outstanding |
|
146,962 |
|
|
146,371 |
|
|
|
147,034 |
|
|
146,394 |
|
| GAAP diluted earnings (loss) per
share |
$ |
1.22 |
|
$ |
(0.54 |
) |
|
$ |
3.97 |
|
$ |
1.91 |
|
| Non-GAAP diluted earnings
per share(A) |
$ |
1.32 |
|
$ |
1.30 |
|
|
$ |
4.30 |
|
$ |
3.98 |
|
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
(A) ResMed adjusts for the impact
of the amortization of acquired intangibles, reserve for disputed
tax positions, restructuring expenses and the (gain) loss on equity
investments 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.
Revenue by Product and Region(Unaudited; $ in
millions, except for per share amounts)
| |
Three Months Ended |
| |
March 31,2022 |
(A) |
March 31,2021 |
(A) |
% Change |
|
ConstantCurrency (B) |
| U.S., Canada, and
Latin America |
|
|
|
|
|
|
|
| Devices |
$ |
250.8 |
|
$ |
192.9 |
|
30 |
% |
|
|
| Masks and other |
|
224.7 |
|
|
210.0 |
|
7 |
|
|
|
| Total Sleep and Respiratory
Care |
$ |
475.4 |
|
$ |
402.9 |
|
18 |
|
|
|
| Software as a Service |
|
101.1 |
|
|
93.8 |
|
8 |
|
|
|
| Total |
$ |
576.6 |
|
$ |
496.7 |
|
16 |
|
|
|
| Combined Europe, Asia,
and other markets |
|
|
|
|
|
|
|
|
Devices |
$ |
182.3 |
|
$ |
172.8 |
|
5 |
% |
|
10 |
% |
| Masks and other |
|
105.6 |
|
|
99.2 |
|
6 |
|
|
13 |
|
| Total Sleep and Respiratory
Care |
$ |
287.9 |
|
$ |
272.1 |
|
6 |
|
|
11 |
|
| Global
revenue |
|
|
|
|
|
|
|
| Devices |
$ |
433.1 |
|
$ |
365.7 |
|
18 |
% |
|
21 |
% |
| Masks and other |
|
330.3 |
|
|
309.2 |
|
7 |
|
|
9 |
|
| Total Sleep and Respiratory
Care |
$ |
763.4 |
|
$ |
674.9 |
|
13 |
|
|
15 |
|
| Software as a Service |
|
101.1 |
|
|
93.8 |
|
8 |
|
|
8 |
|
| Total |
$ |
864.5 |
|
$ |
768.8 |
|
12 |
|
|
14 |
|
| |
|
|
|
|
|
|
|
| |
Nine Months Ended |
| |
March 31,2022 |
(A) |
March 31,2021 |
(A) |
%Change |
|
ConstantCurrency (B) |
| U.S., Canada, and
Latin America |
|
|
|
|
|
|
|
| Devices |
$ |
771.5 |
|
$ |
595.3 |
|
30 |
% |
|
|
| Masks and other |
|
681.8 |
|
|
637.5 |
|
7 |
|
|
|
| Total Sleep and Respiratory
Care |
$ |
1,453.3 |
|
$ |
1,232.8 |
|
18 |
|
|
|
| Software as a Service |
|
297.7 |
|
|
277.8 |
|
7 |
|
|
|
| Total |
$ |
1,751.0 |
|
$ |
1,510.6 |
|
16 |
|
|
|
| Combined Europe, Asia,
and other markets |
|
|
|
|
|
|
|
|
Devices |
$ |
608.3 |
|
$ |
536.9 |
|
13 |
% |
|
15 |
% |
| Masks and other |
|
304.2 |
|
|
273.3 |
|
11 |
|
|
14 |
|
| Total Sleep and Respiratory
Care |
$ |
912.4 |
|
$ |
810.1 |
|
13 |
|
|
15 |
|
| Global
revenue |
|
|
|
|
|
|
|
| Devices |
$ |
1,379.7 |
|
$ |
1,132.1 |
|
22 |
% |
|
23 |
% |
| Masks and other |
|
986.0 |
|
|
910.8 |
|
8 |
|
|
9 |
|
| Total Sleep and Respiratory
Care |
$ |
2,365.7 |
|
$ |
2,042.9 |
|
16 |
|
|
16 |
|
| Software as a Service |
|
297.7 |
|
|
277.8 |
|
7 |
|
|
7 |
|
| Total |
$ |
2,663.4 |
|
$ |
2,320.7 |
|
15 |
|
|
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.
| For
investors |
For
media |
| Amy Wakeham |
Jayme Rubenstein |
| +1 858-836-5000 |
+1 858-836-6798 |
|
investorrelations@resmed.com |
news@resmed.com |
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