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ResMed Inc. Announces Results for the Fourth Quarter of Fiscal Year 2021

08/05/2021
  • Year-over-year revenue grows 14%, operating profit up 8%, non-GAAP operating profit up 7%
  • Quarterly dividend increases 8% to $0.42 per share
  • Company to host a virtual Investor Day on September 8, 2021, at 1:30 p.m. PT

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, August 5, 2021 – ResMed Inc. (NYSE: RMD, ASX: RMD), a world-leading digital health company, today announced results for its quarter ended June 30, 2021. 

Fourth Quarter 2021 Highlights
All comparisons are to the prior year period

  • Revenue increased by 14% to $876.1 million; up 10% on a constant currency basis
  • Gross margin of 56.0%; non-GAAP gross margin contracted 260 bps to 57.3%
  • Income from operations increased 8%; non-GAAP operating profit up 7% 
  • Diluted earnings per share of $1.33; non-GAAP diluted earnings per share of $1.35
  • Quarterly dividend increased by 8% to $0.42 per share

Full Year 2021 Highlights
All comparisons are to the prior year period

  • Revenue increased 8% to $3.2 billion; up 6% on a constant currency basis
  • Gross margin of 57.5%; non-GAAP gross margin contracted 70 bps to 59.1%
  • Income from operations increased 12%; non-GAAP operating profit up 12% 
  • Diluted earnings per share of $3.24; non-GAAP diluted earnings per share of $5.33

“Our fourth quarter and full-year fiscal year 2021 results continue to demonstrate the strength and resiliency of our business,” said Mick Farrell, ResMed’s CEO. “During the quarter, we saw the ongoing recovery of core sleep apnea and COPD patient flow across our business, as healthcare systems continue to adopt new models of patient care. We faced some headwinds this quarter, as we annualized the $125 million in COVID-related ventilator sales from this period in 2020, and we saw some tailwinds from a competitor’s major quality issue that was announced during the quarter. The net result was strong revenue growth of 10% for our ResMed business in the June quarter. We finished the full fiscal year 2021 with 6% revenue growth year-over-year to $3.2 billion, with operating profit up 12% on a non-GAAP basis.

“At this time of incredible demand for ResMed products, we are doing everything we can to increase our manufacturing of sleep and respiratory care devices. Our global team is supporting patients, providers, and physicians with our priority to get products directly into the hands of patients who need therapy most. Looking ahead, we are confident in our ability to grow steadily through our fiscal year 2022 and to deliver for all our stakeholders. We’re driving accelerated adoption of digital health solutions in sleep apnea, COPD, and out-of-hospital care, accelerating our ResMed 2025 strategy. These digital health solutions provide efficiency and lower costs for providers and payers, as well as better quality-of-life and clinical outcomes for patients and physicians, and sustainable growth for all of our ResMed stakeholders.”


Financial Results and Operating Metrics

Unaudited; $ in millions, except for per share amounts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June30,
2021

 

June30,
2020

 

% Change

 

Constant Currency (A)

 

Revenue

$

876.1

 

 

$

770.3

 

 

14

%

 

10

%

 

Gross margin (B)

 

56.0

%

 

 

58.3

%

 

(4)

 

 

 

 

 

Non-GAAP gross margin (B)

 

57.3

%

 

 

59.9

%

 

(4)

 

 

 

 

 

Selling, general, and administrative expenses

 

181.5

 

 

 

165.4

 

 

10

 

 

4

 

 

Research and development expenses

 

59.9

 

 

 

52.5

 

 

14

 

 

9

 

 

Income from operations

 

241.6

 

 

 

223.2

 

 

8

 

 

 

 

 

Non-GAAP income from operations (B)

 

260.4

 

 

 

243.4

 

 

7

 

 

 

 

 

Net income

 

195.1

 

 

 

177.8

 

 

10

 

 

 

 

 

Non-GAAP net income (B)

 

198.4

 

 

 

193.3

 

 

3

 

 

 

 

 

Diluted earnings per share

$

1.33

 

 

$

1.22

 

 

9

 

 

 

 

 

Non-GAAP diluted earnings per share (B)

$

1.35

 

 

$

1.33

 

 

2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Twelve Months Ended

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June30,
2021

 

June30,
2020

 

% Change

 

Constant Currency (A)

 

Revenue

$

3,196.8

 

 

$

2,957.0

 

 

8

%

 

6

%

 

Gross margin (B)

 

57.5

%

 

 

58.1

%

 

(1)

 

 

 

 

 

Non-GAAP gross margin (B)

 

59.1

%

 

 

59.8

%

 

(1)

 

 

 

 

 

Selling, general, and administrative expenses

 

670.4

 

 

 

676.7

 

 

(1)

 

 

(4)

 

 

Research and development expenses

 

225.3

 

 

 

201.9

 

 

12

 

 

8

 

 

Income from operations

 

903.7

 

 

 

809.7

 

 

12

 

 

 

 

 

Non-GAAP income from operations (B)

 

993.8

 

 

 

890.9

 

 

12

 

 

 

 

 

Net income

 

474.5

 

 

 

621.7

 

 

(24)

 

 

 

 

 

Non-GAAP net income (B)

 

780.6

 

 

 

692.8

 

 

13

 

 

 

 

 

Diluted earnings per share

$

3.24

 

 

$

4.27

 

 

(24)

 

 

 

 

 

Non-GAAP diluted earnings per share (B)

$

5.33

 

 

$

4.76

 

 

12

 

 

 

 

 

  1. 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.
  2. 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

  • During the June quarter, we derived incremental respiratory care revenue from COVID-19 related demand of approximately $20.0 million whereas our prior year quarter included incremental revenue of approximately $125.0 million. Excluding the impact of the incremental respiratory care revenue associated with COVID-19, revenue increased by 29 percent on a constant currency basis.
  • Revenue in the U.S., Canada, and Latin America, excluding Software as a Service, grew by 18 percent, driven by increased demand for our sleep devices and masks, including recovery of core sleep patient flow that was previously impacted by COVID-19 and increased demand following a recent product recall by one of our competitors, partially offset by decreased COVID-19 related demand for our ventilators.
  • Revenue in Europe, Asia, and other markets grew by 2 percent on a constant currency basis, primarily driven by strong sales across our mask product portfolio, partially offset by lower device sales due to the incremental COVID-19 respiratory care revenue generated in the prior year quarter. Excluding the impact of the incremental respiratory care revenue associated with COVID-19, revenue increased by 35 percent on a constant currency basis.
  • Software as a Service revenue increased by 5 percent, due to continued growth in resupply service offerings and stabilizing patient flow in out-of-hospital care settings.
  • Gross margin decreased by 230 basis points and non-GAAP gross margin decreased by 260 basis points, mainly due to an unfavorable product mix, specifically a proportional increase in lower-margin Sleep devices, lower average selling prices, and unfavorable foreign currency movements.
  • Selling, general, and administrative expenses increased by 4 percent on a constant currency basis. SG&A expenses improved to 20.7 percent of revenue in the quarter, compared with 21.5 percent in the same period of the prior year. These changes in SG&A expenses were mainly due to increases in employee-related expenses, partially offset by a reduction in doubtful debt expenses.
  • Income from operations increased by 8 percent and non-GAAP income from operations increased by 7 percent.
  • Net income grew by 10 percent and diluted earnings per share grew by 9 percent. Non-GAAP net income grew by 3 percent and non-GAAP diluted earnings per share grew by 2 percent, predominantly attributable to strong sales.
  • Cash flow from operations for the quarter was $226.5 million, compared to net income in the current quarter of $195.1 million and non-GAAP net income of $198.4 million. During the quarter we paid $56.8 million in dividends.

Dividend program
The ResMed board of directors today declared a quarterly cash dividend of $0.42 per share. The dividend will have a record date of August 19, 2021, payable on September 23, 2021. 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 18, 2021, 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 18, 2021, through August 19, 2021, inclusive. 

Webcast details
ResMed will discuss its fourth quarter fiscal year 2021 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 2021 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 13721425. The telephone replay will be available until August 19, 2021.

Upcoming Investor Day
ResMed will host a virtual investor day on Wednesday, September 8, 2021, beginning at 1:30 p.m. PT, to discuss its business strategy and growth initiatives. Investors will have the opportunity to watch and listen to a webcast of the virtual event through the Investor Relations section of the ResMed website. A replay will be accessible through the same website. Additional information and registration information will be available approximately two weeks prior to the event at investor.resmed.com.

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.

 

Condensed Consolidated Statements of Operations

(Unaudited; $ in thousands, except for per share amounts) 

 

 

Three Months Ended

 

Twelve Months Ended

 

 

 

June 30,
2021

 

June 30,
2020

 

June 30,
2021

 

June30,
2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net revenue

$

876,103

 

$

770,343

 

$

3,196,825

 

$

2,957,013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

374,345

 

 

308,991

 

 

1,307,366

 

 

1,189,624

 

Amortization of acquired intangibles (1)

 

11,062

 

 

11,980

 

 

45,127

 

 

49,603

 

Restructuring - cost of sales (1)

 

-

 

 

-

 

 

5,232

 

 

-

 

Total cost of sales

$

385,407

 

$

320,971

 

$

1,357,725

 

$

1,239,227

 

Gross profit

$

490,696

 

$

449,372

 

$

1,839,100

 

$

1,717,786

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general, and administrative

 

181,483

 

 

165,385

 

 

670,387

 

 

676,689

 

Research and development

 

59,875

 

 

52,520

 

 

225,284

 

 

201,946

 

Amortization of acquired intangibles (1)

 

7,701

 

 

8,220

 

 

31,078

 

 

30,092

 

Restructuring - operating expenses (1)

 

-

 

 

-

 

 

8,673

 

 

-

 

Litigation settlement expenses (1)

 

-

 

 

-

 

 

-

 

 

(600)

 

Total operating expenses

$

249,059

 

$

226,125

 

$

935,422

 

$

908,127

 

Income from operations

 

241,637

 

 

223,247

 

 

903,678

 

 

809,659

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expenses), net:

 

 

 

 

 

 

 

 

 

 

 

 

Interest income (expense), net

$

(5,286)

 

$

(8,942)

 

$

(23,627)

 

$

(39,356)

 

Loss attributable to equity method investments

 

(1,310)

 

 

(5,976)

 

 

(11,205)

 

 

(25,058)

 

Other, net

 

4,169

 

 

3,765

 

 

14,816

 

 

(12,157)

 

Total other income (expenses), net

 

(2,427)

 

 

(11,153)

 

 

(20,016)

 

 

(76,571)

 

Income before income taxes

$

239,210

 

$

212,094

 

$

883,662

 

$

733,088

 

Income taxes

 

44,112

 

 

34,259

 

 

409,157

 

 

111,414

 

Net income

$

195,098

 

$

177,835

 

$

474,505

 

$

621,674

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

$

1.34

 

$

1.23

 

$

3.27

 

$

4.31

 

Diluted earnings per share

$

1.33

 

$

1.22

 

$

3.24

 

$

4.27

 

Non-GAAP diluted earnings per share (1)

$

1.35

 

$

1.33

 

$

5.33

 

$

4.76

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic shares outstanding

 

145,600

 

 

144,792

 

 

145,313

 

 

144,338

 

Diluted shares outstanding

 

146,544

 

 

145,866

 

 

146,451

 

 

145,652

 

  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) 

 

 

 

June 30,
2021

 

June 30,
2020

 

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

$

295,278

 

$

463,156

 

Accounts receivable, net

 

614,292

 

 

474,643

 

Inventories

 

457,033

 

 

416,915

 

Prepayments and other current assets

 

208,154

 

 

168,745

 

Total current assets

$

1,574,757

 

$

1,523,459

 

Non-current assets:

 

 

 

 

 

 

Property, plant and equipment, net

$

463,490

 

$

417,335

 

Operating lease right-of-use assets

 

128,575

 

 

118,348

 

Goodwill and other intangibles, net

 

2,320,483

 

 

2,338,492

 

Deferred income taxes and other non-current assets

 

240,820

 

 

189,742

 

Total non-current assets

$

3,153,368

 

$

3,063,917

 

Total assets

$

4,728,125

 

$

4,587,376

 

LIABILITIES AND STOCKHOLDERS’ EQUITY:

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

$

138,008

 

$

135,786

 

Accrued expenses

 

320,599

 

 

270,353

 

Operating lease liabilities, current

 

23,585

 

 

21,263

 

Deferred revenue

 

109,611

 

 

98,617

 

Income taxes payable

 

307,963

 

 

64,755

 

Short-term debt

 

12,000

 

 

11,987

 

Total current liabilities

$

911,766

 

$

602,761

 

Non-current liabilities:

 

 

 

 

 

 

Deferred revenue

$

91,496

 

$

87,307

 

Deferred income taxes

 

11,319

 

 

13,011

 

Operating lease liabilities, non-current

 

114,779

 

 

101,880

 

Other long term liabilities

 

6,802

 

 

8,347

 

Long-term debt

 

643,351

 

 

1,164,133

 

Long-term income taxes payable

 

62,933

 

 

112,910

 

Total non-current liabilities

$

930,680

 

$

1,487,588

 

Total liabilities

$

1,842,446

 

$

2,090,349

 

STOCKHOLDERS’ EQUITY:

 

 

 

 

 

 

Common stock

$

583

 

$

580

 

Additional paid-in capital

 

1,622,199

 

 

1,570,694

 

Retained earnings

 

3,079,640

 

 

2,832,991

 

Treasury stock

 

(1,623,256)

 

 

(1,623,256)

 

Accumulated other comprehensive income

 

(193,487)

 

 

(283,982)

 

Total stockholders’ equity

$

2,885,679

 

$

2,497,027

 

Total liabilities and stockholders' equity

$

4,728,125

 

$

4,587,376

 


  

Condensed Consolidated Statements of Cash Flows

(Unaudited; $ in thousands) 

 

 

 

 

 

 

 

 

Twelve Months Ended

 

 

 

 

 

 

 

 

 

June 30,
2021

 

June 30,
2020

 

Cash flows from operating activities:

 

 

 

 

 

 

Net income

$

474,505

 

$

621,674

 

Adjustment to reconcile net income to cash provided by operating activities:

 

 

 

 

 

 

Depreciation and amortization

 

156,758

 

 

154,850

 

Amortization of right-of-use assets

 

34,760

 

 

26,523

 

Stock-based compensation costs

 

63,927

 

 

57,559

 

Loss attributable to equity method investments

 

11,205

 

 

25,058

 

(Gain) loss on equity investment

 

(14,515)

 

 

14,519

 

Restructuring expenses

 

8,673

 

 

-

 

Changes in fair value of business combination contingent consideration

 

-

 

 

(7)

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

Accounts receivable, net

 

(129,195)

 

 

54,383

 

Inventories, net

 

(21,954)

 

 

(69,881)

 

Prepaid expenses, net deferred income taxes and other current assets

 

(58,154)

 

 

(58,999)

 

Accounts payable, accrued expenses and other

 

210,708

 

 

(23,424)

 

Net cash provided by operating activities

$

736,718

 

$

802,255

 

Cash flows from investing activities:

 

 

 

 

 

 

Purchases of property, plant and equipment

 

(102,712)

 

 

(95,330)

 

Patent registration costs

 

(14,114)

 

 

(10,608)

 

Business acquisitions, net of cash acquired

 

(39,067)

 

 

(27,910)

 

Purchases of investments

 

(21,788)

 

 

(31,616)

 

Proceeds / (Payments) on maturity of foreign currency contracts

 

19,219

 

 

(14,397)

 

Net cash used in investing activities

$

(158,462)

 

$

(179,861)

 

Cash flows from financing activities:

 

 

 

 

 

 

Proceeds from issuance of common stock, net

 

37,790

 

 

48,182

 

Taxes paid related to net share settlement of equity awards

 

(50,209)

 

 

(46,061)

 

Payment of business combination contingent consideration

 

(3,500)

 

 

(302)

 

Proceeds from borrowings, net of borrowing costs

 

90,000

 

 

1,190,000

 

Repayment of borrowings

 

(612,000)

 

 

(1,284,012)

 

Dividends paid

 

(226,713)

 

 

(225,093)

 

Net cash used in financing activities

$

(764,632)

 

$

(317,286)

 

Effect of exchange rate changes on cash

$

18,498

 

$

10,920

 

Net increase / (decrease) in cash and cash equivalents

 

(167,878)

 

 

316,028

 

Cash and cash equivalents at beginning of period

 

463,156

 

 

147,128

 

Cash and cash equivalents at end of period

$

295,278

 

$

463,156

 


  

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,
2021

 

June 30,
2020

 

June 30,
2021

 

June 30,
2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

$

876,103

 

 

$

770,343

 

 

$

3,196,825

 

 

$

2,957,013

 

Add back: Deferred revenue fair value adjustment (A)

 

-

 

 

 

-

 

 

 

-

 

 

 

2,102

 

Non-GAAP Revenue

$

876,103

 

 

$

770,343

 

 

$

3,196,825

 

 

$

2,959,115

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Cost of sales

$

385,407

 

 

$

320,971

 

 

$

1,357,725

 

 

$

1,239,227

 

Less: Amortization of acquired intangibles (A)

 

(11,062)

 

 

 

(11,980)

 

 

 

(45,127)

 

 

 

(49,603)

 

Less: Restructuring - cost of sales (A)

 

-

 

 

 

-

 

 

 

(5,232)

 

 

 

-

 

Non-GAAP cost of sales

$

374,345

 

 

$

308,991

 

 

$

1,307,366

 

 

$

1,189,624

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP gross profit

$

490,696

 

 

$

449,372

 

 

$

1,839,100

 

 

$

1,717,786

 

GAAP gross margin

 

56.0

%

 

 

58.3

%

 

 

57.5

%

 

 

58.1

%

Non-GAAP gross profit

$

501,758

 

 

$

461,352

 

 

$

1,889,459

 

 

$

1,769,491

 

Non-GAAP gross margin

 

57.3

%

 

 

59.9

%

 

 

59.1

%

 

 

59.8

%


 The measure “non-GAAP income from operations” is reconciled with GAAP income from operations below: 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Twelve Months Ended

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30,
2021

 

June 30,
2020

 

June 30,
2021

 

June 30,
2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP income from operations

$

241,637

 

 

$

223,247

 

 

$

903,678

 

 

$

809,659

Amortization of acquired intangibles - cost of sales (A)

 

11,062

 

 

 

11,980

 

 

 

45,127

 

 

 

49,603

Amortization of acquired intangibles - operating expenses (A)

 

7,701

 

 

 

8,220

 

 

 

31,078

 

 

 

30,092

Restructuring - cost of sales (A)

 

-

 

 

 

-

 

 

 

5,232

 

 

 

-

Restructuring - operating expenses (A)

 

-

 

 

 

-

 

 

 

8,673

 

 

 

-

Deferred revenue fair value adjustment (A)

 

-

 

 

 

-

 

 

 

-

 

 

 

2,102

Litigation settlement expenses (A)

 

-

 

 

 

-

 

 

 

-

 

 

 

(600)

Non-GAAP income from operations

$

260,400

 

 

$

243,447

 

 

$

993,788

 

 

$

890,856


 

 

 

 



 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June30,
2021

 

June30,
2020

 

June30,
2021

 

June30,
2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP net income

$

195,098

 

 

$

177,835

 

 

$

474,505

 

 

$

621,674

 

Amortization of acquired intangibles - cost of sales, net of tax (A)

 

8,506

 

 

 

9,167

 

 

 

34,642

 

 

 

37,933

 

Amortization of acquired intangibles - operating expenses, net of tax (A)

 

5,921

 

 

 

6,290

 

 

 

23,857

 

 

 

23,012

 

Reserve for disputed tax position (A)

 

(6,003)

 

 

 

-

 

 

 

248,773

 

 

 

-

 

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)

 

(5,073)

 

 

 

-

 

 

 

(13,549)

 

 

 

-

 

Fair value impairment of investment (A)

 

-

 

 

 

-

 

 

 

-

 

 

 

9,100

 

Deferred revenue fair value adjustment, net of tax (A)

 

-

 

 

 

-

 

 

 

-

 

 

 

1,610

 

Litigation settlement expenses, net of tax (A)

 

-

 

 

 

-

 

 

 

-

 

 

 

(528)

 

Non-GAAP net income (A)

$

198,449

 

 

$

193,292

 

 

$

780,621

 

 

$

692,801

 

GAAP diluted shares outstanding

 

146,544

 

 

 

145,866

 

 

 

146,451

 

 

 

145,652

 

GAAP diluted earnings per share

$

1.33

 

 

$

1.22

 

 

$

3.24

 

 

$

4.27

 

Non-GAAP diluted earnings per share (A)

$

1.35

 

 

$

1.33

 

 

$

5.33

 

 

$

4.76

 


(A)    ResMed adjusts for the impact of the amortization of acquired intangibles, reserve for disputed tax positions, restructuring expenses, the (gain) loss on equity investments, the fair value impairment of investment, deferred revenue fair value adjustment and litigation settlement 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.

(B)    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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30,
2021 (A)

 

June 30,
2020 (A)

 

% Change

 

Constant Currency (B)

 

U.S., Canada and Latin America

 

 

 

 

 

 

 

 

 

 

 

 

Devices

$

268.4

 

$

205.9

 

30

%

 

 

 

 

Masks and other

 

203.9

 

 

194.7

 

5

 

 

 

 

 

Total Sleep and Respiratory Care

$

472.3

 

$

400.5

 

18

 

 

 

 

 

Software as a Service

 

95.8

 

 

91.5

 

5

 

 

 

 

 

Total

$

568.1

 

$

492.0

 

15

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Combined Europe, Asia and other markets

 

 

 

 

 

 

 

 

 

 

 

 

Devices

$

209.5

 

$

205.8

 

2

%

 

(6)

%

 

Masks and other

 

98.5

 

 

72.6

 

36

 

 

24

 

 

Total Sleep and Respiratory Care

$

308.0

 

$

278.3

 

11

 

 

2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Global revenue

 

 

 

 

 

 

 

 

 

 

 

 

Devices

$

477.9

 

$

411.6

 

16

%

 

12

%

 

Masks and other

 

302.4

 

 

267.2

 

13

 

 

10

 

 

Total Sleep and Respiratory Care

$

780.3

 

$

678.9

 

15

 

 

11

 

 

Software as a Service

 

95.8

 

 

91.5

 

5

 

 

5

 

 

Total

$

876.1

 

$

770.3

 

14

 

 

10

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Twelve Months Ended

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30,
2021 (A)

 

June30,
2020 (A)

 

% Change

 

 

Constant Currency (B)

 

U.S., Canada and Latin America

 

 

 

 

 

 

 

 

 

 

 

 

Devices

$

863.7

 

$

792.8

 

9

%

 

 

 

 

Masks and other

 

841.5

 

 

779.6

 

8

 

 

 

 

 

Total Sleep and Respiratory Care

$

1,705.1

 

$

1,572.3

 

8

 

 

 

 

 

Software as a Service

 

373.6

 

 

354.6

 

5

 

 

 

 

 

Total

$

2,078.7

 

$

1,927.0

 

8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Combined Europe, Asia and other markets

 

 

 

 

 

 

 

 

 

 

 

 

Devices

$

746.4

 

$

715.1

 

4

%

 

(2)

%

 

Masks and other

 

371.7

 

 

315.0

 

18

 

 

11

 

 

Total Sleep and Respiratory Care

$

1,118.1

 

$

1,030.1

 

9

 

 

2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Global revenue

 

 

 

 

 

 

 

 

 

 

 

 

Devices

$

1,610.0

 

$

1,507.8

 

7

%

 

3

%

 

Masks and other

 

1,213.2

 

 

1,094.6

 

11

 

 

9

 

 

Total Sleep and Respiratory Care

$

2,823.2

 

$

2,602.4

 

8

 

 

6

 

 

Software as a Service

 

373.6

 

 

354.6

 

5

 

 

5

 

 

Total

$

3,196.8

 

$

2,957.0

 

8

 

 

6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  1. Totals and subtotals may not add due to rounding.
  2. 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.

End



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