ResMed Inc. (NYSE: RMD, ASX: RMD) today announced results for its
quarter ended March 31, 2024.
Third Quarter 2024 HighlightsAll
comparisons are to the prior year period
- Revenue increased by 7% to $1.2 billion; up 7% on a constant
currency basis
- Gross margin grew 260 bps to 57.9%; non-GAAP gross
margin grew 240 bps to 58.5%
- Income from operations increased
25%; non-GAAP operating profit up 23%
- Operating cash flow of $402 million and debt repayments of $220
million
- Diluted earnings per share of $2.04; non-GAAP diluted
earnings per share of $2.13
“ResMed’s strong third-quarter fiscal year 2024
results reflect robust patient and customer demand for our products
and software solutions, leading to double-digit mask and
accessories revenue growth along with ongoing operational
efficiencies to drive margin improvement and increased
profitability, resulting in double-digit growth in both operating
profit and earnings per share,” said Mick Farrell, ResMed’s
Chairman & CEO. “Over 2 billion people worldwide can benefit
from a ResMed solution to help them sleep better, breathe better,
and receive best-in-class healthcare right where they live. We
remain laser-focused on bringing market-leading innovation to
customers, including our latest AirCurve11 range of non-invasive
ventilators and our recently launched AirFit F40 mask system,
combined with our entire portfolio of products, software, and
solutions, allowing us to continue to deliver value for all our
stakeholders.”
Financial Results and Operating
MetricsUnaudited; $ in millions, except for per share
amounts
|
Three Months Ended |
|
March 31,2024 |
|
March 31,2023 |
|
% Change |
|
ConstantCurrency (A) |
Revenue |
$ |
1,197.0 |
|
|
$ |
1,116.9 |
|
|
7 |
% |
|
7 |
% |
Gross margin |
|
57.9 |
% |
|
|
55.3 |
% |
|
5 |
|
|
|
Non-GAAP gross margin (B) |
|
58.5 |
% |
|
|
56.1 |
% |
|
4 |
|
|
|
Selling, general, and administrative expenses |
|
229.9 |
|
|
|
228.5 |
|
|
1 |
|
|
1 |
|
Research and development expenses |
|
77.1 |
|
|
|
76.4 |
|
|
1 |
|
|
2 |
|
Income from operations |
|
374.6 |
|
|
|
300.7 |
|
|
25 |
|
|
|
Non-GAAP income from operations (B) |
|
393.6 |
|
|
|
321.2 |
|
|
23 |
|
|
|
Net income |
|
300.5 |
|
|
|
232.5 |
|
|
29 |
|
|
|
Non-GAAP net income (B) |
|
314.4 |
|
|
|
247.8 |
|
|
27 |
|
|
|
Diluted earnings per share |
$ |
2.04 |
|
|
$ |
1.58 |
|
|
29 |
|
|
|
Non-GAAP diluted earnings per share (B) |
$ |
2.13 |
|
|
$ |
1.68 |
|
|
27 |
|
|
|
|
Nine Months Ended |
|
March 31,2024 |
|
March 31,2023 |
|
% Change |
|
ConstantCurrency (A) |
Revenue |
$ |
3,462.1 |
|
|
$ |
3,100.9 |
|
|
12 |
% |
|
11 |
% |
Gross margin |
|
56.0 |
% |
|
|
56.1 |
% |
|
— |
|
|
|
Non-GAAP gross margin (B) |
|
57.2 |
% |
|
|
56.8 |
% |
|
1 |
|
|
|
Selling, general, and administrative expenses |
|
674.9 |
|
|
|
633.3 |
|
|
7 |
|
|
6 |
|
Research and development expenses |
|
226.7 |
|
|
|
209.5 |
|
|
8 |
|
|
9 |
|
Income from operations |
|
938.7 |
|
|
|
856.6 |
|
|
10 |
|
|
|
Non-GAAP income from operations (B) |
|
1,077.9 |
|
|
|
917.5 |
|
|
17 |
|
|
|
Net income |
|
728.7 |
|
|
|
667.9 |
|
|
9 |
|
|
|
Non-GAAP net income (B) |
|
833.0 |
|
|
|
714.3 |
|
|
17 |
|
|
|
Diluted earnings per share |
$ |
4.94 |
|
|
$ |
4.53 |
|
|
9 |
|
|
|
Non-GAAP diluted earnings per share (B) |
$ |
5.65 |
|
|
$ |
4.85 |
|
|
16 |
|
|
|
|
(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 7 percent on a
constant currency basis, driven by increased demand for our sleep
devices, as well as strong growth across our mask product
portfolio.
- Revenue in the U.S., Canada, and Latin
America, excluding Software-as-a-Service, grew by 9 percent.
- Revenue in Europe, Asia, and other
markets, excluding Software-as-a-Service, grew by 3 percent on
a constant currency basis.
- Software-as-a-Service revenue
increased by 8 percent, reflecting continued organic growth in
our SaaS portfolio.
- Gross margin increased by 260 basis
points mainly due to reduced freight and manufacturing cost
improvements. Non-GAAP gross margin increased by 240 basis
points due to the same factors.
- Selling, general, and administrative
expenses increased by 1 percent on a constant currency basis.
SG&A expenses improved to 19.2 percent of revenue in the
quarter, compared with 20.5 percent in the same period of the
prior year. The modest increase in SG&A expenses reflects cost
management initiatives implemented in the previous quarter.
- Income from operations increased by
25 percent, and non-GAAP income from operations
increased by 23 percent.
- Net income for the quarter was $300
million and diluted earnings per share was
$2.04. Non-GAAP net income increased by 27 percent to
$314 million, and non-GAAP diluted earnings per share
increased by 27 percent to $2.13, predominantly attributable to
strong sales and gross margin as well as modest growth in operating
expenses.
- Operating cash flow for the quarter
was $402 million, compared to net income in the current quarter of
$300 million and non-GAAP net income of $314 million.
- During the quarter, we paid $70
million in dividends and repurchased 261,000 shares for
consideration of $50 million as part of our ongoing capital
management.
Other Business and Operational
Highlights
- Introduced the AirCurve™ 11
series of devices, built on the market-leading AirSense 11
platform. New devices provide bi-level and enhanced ventilation
therapy options, particularly for those who struggle with single
pressure PAP therapy.
- Launched the AirFit F40 in the U.S. An
ultra-compact, full-face mask, the AirFit F40 features the
AdaptiSeal™, a silicone cushion designed to maintain a facial seal,
even when moving around during sleep, along with a fully flexible
frame, a quick-release short tube, and new textile material and
color.
- In conjunction with World Sleep Day, a
global campaign to raise awareness of the importance of good sleep,
published the results of our 4th annual Global Sleep Survey of
36,000 people across 17 markets. Survey found 50% of respondents
report feeling excessive daytime sleepiness and 40% report getting
no more than three nights of good sleep per week. More than
one-third of respondents are now actively tracking their sleep
patterns, either through a smartphone app (44%) or wearable
(31%).
Dividend programThe ResMed board
of directors today declared a quarterly cash dividend of $0.48 per
share. The dividend will have a record date of May 9, 2024,
payable on June 13, 2024. 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 8,
2024, 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 8, 2024, through
May 9, 2024, inclusive.
Webcast detailsResMed will discuss
its third quarter fiscal year 2024 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 2024 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 three hours
after the webcast by dialing +1 877-660-6853 (U.S.) or
+1 201-612-7415 (outside U.S.) and entering the passcode
13745785. The telephone replay will be available until May 9,
2024.
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, our supply chain, domestic and international
regulatory developments, litigation, tax outlook, and macroeconomic
conditions of our business – 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.
For investors |
For media |
+1 858-836-5000 |
+1 619-510-1281 |
investorrelations@resmed.com |
news@resmed.com |
|
RESMED INC. AND SUBSIDIARIES
Condensed Consolidated Statements of
Operations(Unaudited; $ in thousands, except for per share
amounts)
|
Three Months Ended |
|
Nine Months Ended |
|
March 31,2024 |
|
March 31,2023 |
|
March 31,2024 |
|
March 31,2023 |
|
|
|
|
|
|
|
|
Net revenue |
$ |
1,196,980 |
|
|
$ |
1,116,898 |
|
|
$ |
3,462,102 |
|
|
$ |
3,100,936 |
|
|
|
|
|
|
|
|
|
Cost of sales |
|
496,387 |
|
|
|
490,824 |
|
|
|
1,483,088 |
|
|
|
1,340,660 |
|
Amortization of acquired intangibles (1) |
|
7,812 |
|
|
|
8,322 |
|
|
|
24,976 |
|
|
|
22,001 |
|
Masks with magnets field safety notification expenses (1) |
|
— |
|
|
|
— |
|
|
|
6,351 |
|
|
|
— |
|
Astral field safety notification expenses (1) |
|
— |
|
|
|
— |
|
|
|
7,911 |
|
|
|
— |
|
Total cost of sales |
$ |
504,199 |
|
|
$ |
499,146 |
|
|
$ |
1,522,326 |
|
|
$ |
1,362,661 |
|
Gross profit |
$ |
692,781 |
|
|
$ |
617,752 |
|
|
$ |
1,939,776 |
|
|
$ |
1,738,275 |
|
|
|
|
|
|
|
|
|
Selling, general, and administrative |
|
229,919 |
|
|
|
228,457 |
|
|
|
674,948 |
|
|
|
633,317 |
|
Research and development |
|
77,074 |
|
|
|
76,436 |
|
|
|
226,664 |
|
|
|
209,498 |
|
Amortization of acquired intangibles (1) |
|
11,204 |
|
|
|
12,188 |
|
|
|
35,259 |
|
|
|
29,701 |
|
Restructuring expenses (1) |
|
— |
|
|
|
— |
|
|
|
64,228 |
|
|
|
— |
|
Acquisition related expenses (1) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
9,157 |
|
Total operating expenses |
$ |
318,197 |
|
|
$ |
317,081 |
|
|
$ |
1,001,099 |
|
|
$ |
881,673 |
|
Income from operations |
$ |
374,584 |
|
|
$ |
300,671 |
|
|
$ |
938,677 |
|
|
$ |
856,602 |
|
|
|
|
|
|
|
|
|
Other income (expenses), net: |
|
|
|
|
|
|
|
Interest income (expense), net |
$ |
(11,026 |
) |
|
$ |
(14,964 |
) |
|
$ |
(39,787 |
) |
|
$ |
(32,436 |
) |
Gain (loss) attributable to equity method investments |
|
440 |
|
|
|
(183 |
) |
|
|
(2,716 |
) |
|
|
(5,037 |
) |
Gain on equity investments (1) |
|
13,919 |
|
|
|
6,418 |
|
|
|
11,429 |
|
|
|
11,506 |
|
Other, net |
|
(2,496 |
) |
|
|
(2,564 |
) |
|
|
(537 |
) |
|
|
(5,773 |
) |
Total other income (expenses), net |
|
837 |
|
|
|
(11,293 |
) |
|
|
(31,611 |
) |
|
|
(31,740 |
) |
Income before income taxes |
$ |
375,421 |
|
|
$ |
289,378 |
|
|
$ |
907,066 |
|
|
$ |
824,862 |
|
Income taxes |
|
74,929 |
|
|
|
56,878 |
|
|
|
178,351 |
|
|
|
156,970 |
|
Net income |
$ |
300,492 |
|
|
$ |
232,500 |
|
|
$ |
728,715 |
|
|
$ |
667,892 |
|
|
|
|
|
|
|
|
|
Basic earnings per share |
$ |
2.04 |
|
|
$ |
1.58 |
|
|
$ |
4.96 |
|
|
$ |
4.55 |
|
Diluted earnings per share |
$ |
2.04 |
|
|
$ |
1.58 |
|
|
$ |
4.94 |
|
|
$ |
4.53 |
|
Non-GAAP diluted earnings per share (1) |
$ |
2.13 |
|
|
$ |
1.68 |
|
|
$ |
5.65 |
|
|
$ |
4.85 |
|
|
|
|
|
|
|
|
|
Basic shares outstanding |
|
146,959 |
|
|
|
146,914 |
|
|
|
147,056 |
|
|
|
146,681 |
|
Diluted shares outstanding |
|
147,450 |
|
|
|
147,395 |
|
|
|
147,549 |
|
|
|
147,400 |
|
|
(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 31,2024 |
|
June 30,2023 |
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
237,910 |
|
|
$ |
227,891 |
|
Accounts receivable, net |
|
779,265 |
|
|
|
704,909 |
|
Inventories |
|
829,458 |
|
|
|
998,012 |
|
Prepayments and other current assets |
|
504,663 |
|
|
|
437,018 |
|
Total current assets |
$ |
2,351,296 |
|
|
$ |
2,367,830 |
|
Non-current assets: |
|
|
|
Property, plant, and equipment, net |
$ |
539,743 |
|
|
$ |
537,856 |
|
Operating lease right-of-use assets |
|
147,075 |
|
|
|
127,955 |
|
Goodwill and other intangibles, net |
|
3,337,017 |
|
|
|
3,322,640 |
|
Deferred income taxes and other non-current assets |
|
439,431 |
|
|
|
395,427 |
|
Total non-current assets |
$ |
4,463,266 |
|
|
$ |
4,383,878 |
|
Total assets |
$ |
6,814,562 |
|
|
$ |
6,751,708 |
|
Liabilities and Stockholders’ Equity |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
177,445 |
|
|
$ |
150,756 |
|
Accrued expenses |
|
356,076 |
|
|
|
365,660 |
|
Operating lease liabilities, current |
|
24,182 |
|
|
|
21,919 |
|
Deferred revenue |
|
150,753 |
|
|
|
138,072 |
|
Income taxes payable |
|
54,671 |
|
|
|
72,224 |
|
Short-term debt |
|
9,903 |
|
|
|
9,902 |
|
Total current liabilities |
$ |
773,030 |
|
|
$ |
758,533 |
|
Non-current liabilities: |
|
|
|
Deferred revenue |
$ |
131,981 |
|
|
$ |
119,186 |
|
Deferred income taxes |
|
86,564 |
|
|
|
90,650 |
|
Operating lease liabilities, non-current |
|
136,313 |
|
|
|
116,853 |
|
Other long-term liabilities |
|
47,550 |
|
|
|
68,166 |
|
Long-term debt |
|
997,047 |
|
|
|
1,431,234 |
|
Long-term income taxes payable |
|
12,157 |
|
|
|
37,183 |
|
Total non-current liabilities |
$ |
1,411,612 |
|
|
$ |
1,863,272 |
|
Total liabilities |
$ |
2,184,642 |
|
|
$ |
2,621,805 |
|
Stockholders’ equity |
|
|
|
Common stock |
$ |
588 |
|
|
$ |
588 |
|
Additional paid-in capital |
|
1,847,938 |
|
|
|
1,772,083 |
|
Retained earnings |
|
4,769,963 |
|
|
|
4,253,016 |
|
Treasury stock |
|
(1,723,263 |
) |
|
|
(1,623,256 |
) |
Accumulated other comprehensive income |
|
(265,306 |
) |
|
|
(272,528 |
) |
Total stockholders’ equity |
$ |
4,629,920 |
|
|
$ |
4,129,903 |
|
Total liabilities and stockholders’ equity |
$ |
6,814,562 |
|
|
$ |
6,751,708 |
|
|
Condensed Consolidated Statements of Cash
Flows(Unaudited; $ in thousands)
|
Three Months Ended |
|
Nine Months Ended |
|
March 31,2024 |
|
March 31,2023 |
|
March 31,2024 |
|
March 31,2023 |
Cash flows from operating activities: |
|
|
|
|
|
|
|
Net income |
$ |
300,492 |
|
|
$ |
232,500 |
|
|
$ |
728,715 |
|
|
$ |
667,892 |
|
Adjustment to reconcile net income to cash provided by operating
activities: |
|
|
|
|
|
|
|
Depreciation and amortization |
|
43,474 |
|
|
|
44,356 |
|
|
|
133,192 |
|
|
|
118,396 |
|
Amortization of right-of-use assets |
|
11,168 |
|
|
|
8,434 |
|
|
|
28,262 |
|
|
|
23,967 |
|
Stock-based compensation costs |
|
20,442 |
|
|
|
17,832 |
|
|
|
58,792 |
|
|
|
51,215 |
|
(Gain) loss attributable to equity method investments, net of
dividends received |
|
(440 |
) |
|
|
183 |
|
|
|
2,716 |
|
|
|
5,037 |
|
Gain on equity investments |
|
(13,919 |
) |
|
|
(6,418 |
) |
|
|
(11,429 |
) |
|
|
(11,506 |
) |
Non-cash restructuring expenses |
|
— |
|
|
|
— |
|
|
|
33,239 |
|
|
|
— |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
Accounts receivable, net |
|
(56,486 |
) |
|
|
(12,629 |
) |
|
|
(76,755 |
) |
|
|
(88,452 |
) |
Inventories, net |
|
86,199 |
|
|
|
(21,974 |
) |
|
|
163,294 |
|
|
|
(255,091 |
) |
Prepaid expenses, net deferred income taxes and other current
assets |
|
(24,386 |
) |
|
|
(19,961 |
) |
|
|
(98,976 |
) |
|
|
(86,607 |
) |
Accounts payable, accrued expenses, income taxes payable and
other |
|
35,488 |
|
|
|
40,240 |
|
|
|
96 |
|
|
|
31,012 |
|
Net cash provided by operating activities |
$ |
402,032 |
|
|
$ |
282,563 |
|
|
$ |
961,146 |
|
|
$ |
455,863 |
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
Purchases of property, plant, and equipment |
|
(21,191 |
) |
|
|
(28,817 |
) |
|
|
(74,579 |
) |
|
|
(85,223 |
) |
Patent registration and acquisition costs |
|
(1,918 |
) |
|
|
(2,406 |
) |
|
|
(13,954 |
) |
|
|
(10,043 |
) |
Business acquisitions, net of cash acquired |
|
(3,080 |
) |
|
|
— |
|
|
|
(113,767 |
) |
|
|
(1,011,225 |
) |
Purchases of investments |
|
(2,387 |
) |
|
|
(12,597 |
) |
|
|
(9,692 |
) |
|
|
(29,729 |
) |
Proceeds from exits of investments |
|
— |
|
|
|
3,937 |
|
|
|
250 |
|
|
|
3,937 |
|
(Payments) / proceeds on maturity of foreign currency
contracts |
|
(4,577 |
) |
|
|
11,780 |
|
|
|
(11,533 |
) |
|
|
18,961 |
|
Net cash used in investing activities |
$ |
(33,153 |
) |
|
$ |
(28,103 |
) |
|
$ |
(223,275 |
) |
|
$ |
(1,113,322 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
|
Proceeds from issuance of common stock, net |
|
4,892 |
|
|
|
983 |
|
|
|
25,399 |
|
|
|
25,649 |
|
Purchases of treasury stock |
|
(50,000 |
) |
|
|
— |
|
|
|
(100,007 |
) |
|
|
— |
|
Taxes paid related to net share settlement of equity awards |
|
(314 |
) |
|
|
(584 |
) |
|
|
(8,336 |
) |
|
|
(30,297 |
) |
Payments of business combination contingent consideration |
|
— |
|
|
|
(316 |
) |
|
|
(1,293 |
) |
|
|
(316 |
) |
Proceeds from borrowings, net of borrowing costs |
|
— |
|
|
|
— |
|
|
|
105,000 |
|
|
|
1,070,000 |
|
Repayment of borrowings |
|
(220,000 |
) |
|
|
(215,000 |
) |
|
|
(535,000 |
) |
|
|
(260,000 |
) |
Dividends paid |
|
(70,492 |
) |
|
|
(64,640 |
) |
|
|
(211,767 |
) |
|
|
(193,571 |
) |
Net cash (used in) / provided by financing activities |
$ |
(335,914 |
) |
|
$ |
(279,557 |
) |
|
$ |
(726,004 |
) |
|
$ |
611,465 |
|
Effect of exchange rate changes on cash |
$ |
(5,302 |
) |
|
$ |
(208 |
) |
|
$ |
(1,848 |
) |
|
$ |
178 |
|
Net increase / (decrease) in cash and cash equivalents |
|
27,663 |
|
|
|
(25,305 |
) |
|
|
10,019 |
|
|
|
(45,816 |
) |
Cash and cash equivalents at beginning of period |
|
210,247 |
|
|
|
253,199 |
|
|
|
227,891 |
|
|
|
273,710 |
|
Cash and cash equivalents at end of period |
$ |
237,910 |
|
|
$ |
227,894 |
|
|
$ |
237,910 |
|
|
$ |
227,894 |
|
|
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 and restructuring expense related to cost
of sales and are reconciled below:
|
Three Months Ended |
|
Nine Months Ended |
|
March 31, 2024 |
|
March 31, 2023 |
|
March 31, 2024 |
|
March 31, 2023 |
|
|
|
|
|
|
|
|
Revenue |
$ |
1,196,980 |
|
|
$ |
1,116,898 |
|
|
$ |
3,462,102 |
|
|
$ |
3,100,936 |
|
|
|
|
|
|
|
|
|
GAAP cost of sales |
$ |
504,199 |
|
|
$ |
499,146 |
|
|
$ |
1,522,326 |
|
|
$ |
1,362,661 |
|
Less: Amortization of acquired intangibles (A) |
|
(7,812 |
) |
|
|
(8,322 |
) |
|
|
(24,976 |
) |
|
|
(22,001 |
) |
Less: Masks with magnets field safety notification expenses
(A) |
|
— |
|
|
|
— |
|
|
|
(6,351 |
) |
|
|
— |
|
Less: Astral field safety notification expenses (A) |
|
— |
|
|
|
— |
|
|
|
(7,911 |
) |
|
|
— |
|
Non-GAAP cost of sales |
$ |
496,387 |
|
|
$ |
490,824 |
|
|
$ |
1,483,088 |
|
|
$ |
1,340,660 |
|
|
|
|
|
|
|
|
|
GAAP gross profit |
$ |
692,781 |
|
|
$ |
617,752 |
|
|
$ |
1,939,776 |
|
|
$ |
1,738,275 |
|
GAAP gross margin |
|
57.9 |
% |
|
|
55.3 |
% |
|
|
56.0 |
% |
|
|
56.1 |
% |
Non-GAAP gross profit |
$ |
700,593 |
|
|
$ |
626,074 |
|
|
$ |
1,979,014 |
|
|
$ |
1,760,276 |
|
Non-GAAP gross margin |
|
58.5 |
% |
|
|
56.1 |
% |
|
|
57.2 |
% |
|
|
56.8 |
% |
|
The measure “non-GAAP income from
operations” is reconciled with GAAP income from operations
below:
|
Three Months Ended |
|
Nine Months Ended |
|
March 31, 2024 |
|
March 31, 2023 |
|
March 31, 2024 |
|
March 31, 2023 |
|
|
|
|
|
|
|
|
GAAP income from operations |
$ |
374,584 |
|
$ |
300,671 |
|
$ |
938,677 |
|
$ |
856,602 |
Amortization of acquired intangibles—cost of sales (A) |
|
7,812 |
|
|
8,322 |
|
|
24,976 |
|
|
22,001 |
Amortization of acquired intangibles—operating
expenses (A) |
|
11,204 |
|
|
12,188 |
|
|
35,259 |
|
|
29,701 |
Restructuring (A) |
|
— |
|
|
— |
|
|
64,228 |
|
|
— |
Masks with magnets field safety notification expenses (A) |
|
— |
|
|
— |
|
|
6,351 |
|
|
— |
Astral field safety notification expenses (A) |
|
— |
|
|
— |
|
|
7,911 |
|
|
— |
Acquisition-related expenses (A) |
|
— |
|
|
— |
|
|
483 |
|
|
9,157 |
Non-GAAP income from operations |
$ |
393,600 |
|
$ |
321,181 |
|
$ |
1,077,885 |
|
$ |
917,461 |
|
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, 2024 |
|
March 31, 2023 |
|
March 31, 2024 |
|
March 31, 2023 |
|
|
|
|
|
|
|
|
GAAP net income |
$ |
300,492 |
|
|
$ |
232,500 |
|
|
$ |
728,715 |
|
|
$ |
667,892 |
|
Amortization of acquired intangibles—cost of sales (A) |
|
7,812 |
|
|
|
8,322 |
|
|
|
24,976 |
|
|
|
22,001 |
|
Amortization of acquired intangibles—operating
expenses (A) |
|
11,204 |
|
|
|
12,188 |
|
|
|
35,259 |
|
|
|
29,701 |
|
Restructuring expenses (A) |
|
— |
|
|
|
— |
|
|
|
64,228 |
|
|
|
— |
|
Masks with magnets field safety notification expenses (A) |
|
— |
|
|
|
— |
|
|
|
6,351 |
|
|
|
— |
|
Astral field safety notification expenses (A) |
|
— |
|
|
|
— |
|
|
|
7,911 |
|
|
|
— |
|
Acquisition-related expenses (A) |
|
— |
|
|
|
— |
|
|
|
483 |
|
|
|
9,157 |
|
Income tax effect on non-GAAP adjustments (A) |
|
(5,083 |
) |
|
|
(5,213 |
) |
|
|
(34,969 |
) |
|
|
(14,484 |
) |
Non-GAAP net income (A) |
$ |
314,425 |
|
|
$ |
247,797 |
|
|
$ |
832,954 |
|
|
$ |
714,267 |
|
|
|
|
|
|
|
|
|
GAAP diluted shares outstanding |
|
147,450 |
|
|
|
147,395 |
|
|
|
147,549 |
|
|
|
147,400 |
|
GAAP diluted earnings per share |
$ |
2.04 |
|
|
$ |
1.58 |
|
|
$ |
4.94 |
|
|
$ |
4.53 |
|
Non-GAAP diluted earnings per share (A) |
$ |
2.13 |
|
|
$ |
1.68 |
|
|
$ |
5.65 |
|
|
$ |
4.85 |
|
|
(A) ResMed adjusts for the impact of the
amortization of acquired intangibles, restructuring expenses, field
safety notification expenses, acquisition-related expenses, and
associated tax effects 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 31,2024 |
(A) |
March 31,2023 |
(A) |
% Change |
|
ConstantCurrency (B) |
U.S., Canada, and Latin America |
|
|
|
|
|
|
|
Devices |
$ |
399.3 |
|
$ |
372.1 |
|
7 |
% |
|
|
Masks and other |
|
288.2 |
|
|
257.1 |
|
12 |
|
|
|
Total U.S., Canada and Latin America |
$ |
687.5 |
|
$ |
629.1 |
|
9 |
|
|
|
|
|
|
|
|
|
|
|
Combined Europe, Asia, and other markets |
|
|
|
|
|
|
|
Devices |
$ |
238.9 |
|
$ |
235.8 |
|
1 |
% |
|
1 |
% |
Masks and other |
|
122.6 |
|
|
115.2 |
|
6 |
|
|
6 |
|
Total Combined Europe, Asia and other markets |
$ |
361.6 |
|
$ |
351.0 |
|
3 |
|
|
3 |
|
|
|
|
|
|
|
|
|
Global revenue |
|
|
|
|
|
|
|
Total Devices |
$ |
638.2 |
|
$ |
607.9 |
|
5 |
% |
|
5 |
% |
Total Masks and other |
|
410.8 |
|
|
372.2 |
|
10 |
|
|
10 |
|
Total Sleep and Respiratory Care |
$ |
1,049.0 |
|
$ |
980.1 |
|
7 |
|
|
7 |
|
|
|
|
|
|
|
|
|
Software-as-a-Service |
|
148.0 |
|
|
136.8 |
|
8 |
|
|
8 |
|
Total |
$ |
1,197.0 |
|
$ |
1,116.9 |
|
7 |
|
|
7 |
|
|
|
|
|
|
|
|
|
|
Nine Months Ended |
|
March 31,2024 |
(A) |
March 31,2023 |
(A) |
%Change |
|
ConstantCurrency (B) |
U.S., Canada, and Latin America |
|
|
|
|
|
|
|
Devices |
$ |
1,116.5 |
|
$ |
1,057.1 |
|
6 |
% |
|
|
Masks and other |
|
878.6 |
|
|
765.4 |
|
15 |
|
|
|
Total U.S., Canada and Latin America |
$ |
1,995.2 |
|
$ |
1,822.5 |
|
9 |
|
|
|
|
|
|
|
|
|
|
|
Combined Europe, Asia, and other markets |
|
|
|
|
|
|
|
Devices |
$ |
692.4 |
|
$ |
611.1 |
|
13 |
% |
|
11 |
% |
Masks and other |
|
342.3 |
|
|
307.9 |
|
11 |
|
|
8 |
|
Total Combined Europe, Asia and other markets |
$ |
1,034.8 |
|
$ |
919.0 |
|
13 |
|
|
10 |
|
|
|
|
|
|
|
|
|
Global revenue |
|
|
|
|
|
|
|
Total Devices |
$ |
1,808.9 |
|
$ |
1,668.3 |
|
8 |
% |
|
8 |
% |
Total Masks and other |
|
1,221.0 |
|
|
1,073.3 |
|
14 |
|
|
13 |
|
Total Sleep and Respiratory Care |
$ |
3,029.9 |
|
$ |
2,741.5 |
|
11 |
|
|
10 |
|
|
|
|
|
|
|
|
|
Software-as-a-Service |
|
432.2 |
|
|
359.4 |
|
20 |
|
|
20 |
|
Total |
$ |
3,462.1 |
|
$ |
3,100.9 |
|
12 |
|
|
11 |
|
|
(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.
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