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For investors For media Amy Wakeham Jayme Rubenstein +1 858-836-5000 +1 858-836-6798 investorrelations@resmed.com news@resmed.com ResMed Inc. Announces Results for the Fourth Quarter of Fiscal Year 2022 Year-over-year re

Key Takeaway: For investors For media Amy Wakeham Jayme Rubenstein +1 858-836-5000 +1 858-836-6798 investorrelations@resmed.com news@resmed.com ResMed Inc. Announces Results for the Fourth Quarter of Fiscal Year 2022 Year-over-year revenue grows 4%, operating profit up 6%, non-GAAP opera

Full Press Release Details

For investors For media
Amy Wakeham Jayme Rubenstein
+1 858-836-5000 +1 858-836-6798
investorrelations@resmed.com news@resmed.com
ResMed Inc. Announces Results for the Fourth Quarter of Fiscal Year 2022
Year-over-year revenue grows 4%, operating profit up 6%, non-GAAP operating profit up 4%
Quarterly dividend increases 5% to $0.44 per share
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 11, 2022 ResMed Inc. (NYSE: RMD, ASX: RMD) today announced results for its quarter ended June 30, 2022.
Fourth Quarter 2022 Highlights
All comparisons are to the prior year
Full Year 2022 Highlights
are to the prior year period
Our fourth quarter and full-year fiscal year 2022 results demonstrate strong growth and ResMed s market leadership,
said Mick Farrell, ResMed s CEO. During the quarter, we saw continued adoption of our most advanced platform innovation to date, the 100% cloud-connectable AirSense 11. We launched this solution into several new countries in Europe while
continuing to see strong sales in the U.S. We also introduced our newest device to meet the needs of an industry crisis in PAP supply, the AirSense 10 Card-to-Cloud
solution, during the quarter. The card-to-cloud device was launched into the U.S. and many other markets and is designed to work without an embedded communications
module. This redesign allowed us to increase deliveries to customers and ultimately get many more patients onto life-saving sleep apnea and respiratory care therapy. Both of these platforms, as well as our legacy, market-leading, 100%
cloud-connected AirSense 10 device, will support solid growth throughout FY23.
I am incredibly proud of the global ResMed team that was able to deliver strong constant currency revenue growth
of 8% in the June quarter. During the fourth quarter of fiscal year 2022, we annualized $20 million in COVID-related ventilator sales and incremental revenue in the range of $60 to $70 million related to a competitor s recall during
the fourth quarter of fiscal year 2021. For full fiscal year 2022, we achieved $3.6 billion in revenue, with 13% constant currency revenue growth year-over-year, and operating profit growth of 8%, all on a
Our global team remains focused on supporting patients, providers, and physicians our top
priority is to get products directly into the hands of patients who need therapy most. Looking ahead, we are confident in our ability to grow steadily throughout fiscal year 2023 and to continue delivering for all stakeholders. We are investing in
R&D to drive accelerated adoption of digital health solutions in sleep apnea, COPD, and outside-hospital care, as we progress towards our goal to improve 250 million lives in 2025.
Financial Results and Operating Metrics
Unaudited; $ in millions, except
for per share amounts
Three Months Ended
June 30, 2022 June 30, 2021 % Change Constant Currency (A)
Revenue $ 914.7 $ 876.1 4 % 8 %
Gross margin 57.1 % 56.0 % 2
Non-GAAP gross margin (B) 57.8 % 57.3 % 1
Selling, general, and administrative expenses 194.9 181.5 7 12
Research and development expenses 64.3 59.9 7 11
Income from operations 255.4 241.6 6
Non-GAAP income from operations (B) 271.5 260.4 4
Net income 195.1 195.1 Nil
Non-GAAP net income (B) 219.2 198.4 10
Diluted earnings (loss) per share $ 1.33 $ 1.33 Nil
Non-GAAP diluted earnings per share (B) $ 1.49 $ 1.35 10
Twelve Months Ended
June 30, 2022 June 30, 2021 % Change Constant Currency (A)
Revenue $ 3,578.1 $ 3,196.8 12 % 13 %
Gross margin 56.6 % 57.5 % (2 )
Non-GAAP gross margin (B) 57.7 % 59.1 % (2 )
Selling, general, and administrative expenses 739.4 670.4 10 12
Research and development expenses 253.6 225.3 13 14
Income from operations 1,000.3 903.7 11
Non-GAAP income from operations (B) 1,072.9 993.8 8
Net income 779.4 474.5 64
Non-GAAP net income (B) 850.8 780.6 9
Diluted earnings per share $ 5.30 $ 3.24 64
Non-GAAP diluted earnings per share (B) $ 5.79 $ 5.33 9
Discussion of Fourth Quarter Results
All comparisons are to the prior year period unless otherwise noted
Other Business and Operational Highlights
The ResMed board of directors today declared a
quarterly cash dividend of $0.44 per share. The dividend will have a record date of August 18, 2022, payable on September 22, 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 August 17, 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 August 17, 2022, through August 18, 2022, inclusive.
ResMed will discuss its fourth-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 Q4 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 13731513. The telephone replay will be available until August 25, 2022.
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 Operations
thousands, except for per share amounts)
Three Months Ended Twelve Months Ended
June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021
Net revenue $ 914,737 $ 876,103 $ 3,578,127 $ 3,196,825
Cost of sales 385,852 374,345 1,514,166 1,307,366
Amortization of acquired intangibles (1) 6,379 11,062 39,650 45,127
Restructuring cost of sales (1) 5,232
Total cost of sales $ 392,231 $ 385,407 $ 1,553,816 $ 1,357,725
Gross profit $ 522,506 $ 490,696 $ 2,024,311 $ 1,839,100
Selling, general, and administrative 194,889 181,483 739,372 670,387
Research and development 64,318 59,875 253,575 225,284
Amortization of acquired intangibles (1) 7,903 7,701 31,078 31,078
Restructuring operating expenses (1) 8,673
Total operating expenses $ 267,110 $ 249,059 $ 1,024,025 $ 935,422
Income from operations 255,396 241,637 1,000,286 903,678
Other income (expenses), net:
Interest income (expense), net $ (5,542 ) $ (5,286 ) $ (22,312 ) $ (23,627 )
Loss attributable to equity method investments (2,558 ) (1,310 ) (8,486 ) (11,205 )
Gain (loss) on equity investments (11,675 ) 5,073 (12,202 ) 14,515
Other, net 2,468 (904 ) 3,197 301
Total other income (expenses), net (17,307 ) (2,427 ) (39,803 ) (20,016 )
Income before income taxes $ 238,089 $ 239,210 $ 960,483 $ 883,662
Income taxes 43,028 44,112 181,046 409,157
Net income $ 195,061 $ 195,098 $ 779,437 $ 474,505
Basic earnings per share $ 1.33 $ 1.34 $ 5.34 $ 3.27
Diluted earnings per share $ 1.33 $ 1.33 $ 5.30 $ 3.24
Non-GAAP diluted earnings per share (1) $ 1.49 $ 1.35 $ 5.79 $ 5.33
Basic shares outstanding 146,361 145,600 146,066 145,313
Diluted shares outstanding 147,000 146,544 147,043 146,451
RESMED INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Unaudited; $ in thousands)
June 30, 2022 June 30, 2021
ASSETS
Current assets:
Cash and cash equivalents $ 273,710 $ 295,278
Accounts receivable, net 575,950 614,292
Inventories 743,910 457,033
Prepayments and other current assets 337,908 208,154
Total current assets $ 1,931,478 $ 1,574,757
Non-current assets:
Property, plant, and equipment, net $ 498,181 $ 463,490
Operating lease right-of-use assets 132,314 128,575
Goodwill and other intangibles, net 2,282,386 2,320,483
Deferred income taxes and other non-current assets 251,494 240,820
Total non-current assets $ 3,164,375 $ 3,153,368
Total assets $ 5,095,853 $ 4,728,125
LIABILITIES AND STOCKHOLDERS EQUITY:
Current liabilities:
Accounts payable $ 159,245 $ 138,008
Accrued expenses 344,722 320,599
Operating lease liabilities, current 21,856 23,585
Deferred revenue 108,667 109,611
Income taxes payable 44,893 307,963
Short-term debt 9,916 12,000
Total current liabilities $ 689,299 $ 911,766
Non-current liabilities:
Deferred revenue $ 95,455 $ 91,496
Deferred income taxes 9,714 11,319
Operating lease liabilities, non-current 120,453 114,779
Other long-term liabilities 5,974 6,802
Long-term debt 765,325 643,351
Long-term income taxes payable 48,882 62,933
Total non-current liabilities $ 1,045,803 $ 930,680
Total liabilities $ 1,735,102 $ 1,842,446
STOCKHOLDERS EQUITY:
Common stock $ 586 $ 583
Additional paid-in capital 1,682,432 1,622,199
Retained earnings 3,613,736 3,079,640
Treasury stock (1,623,256 ) (1,623,256 )
Accumulated other comprehensive income (312,747 ) (193,487 )
Total stockholders equity $ 3,360,751 $ 2,885,679
Total liabilities and stockholders equity $ 5,095,853 $ 4,728,125
RESMED INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
Twelve months ended
June 30, 2022 June 30, 2021
Cash flows from operating activities:
Net income $ 779,437 $ 474,505
Adjustment to reconcile net income to cash provided by operating activities:
Depreciation and amortization 159,609 156,758
Amortization of right-of-use assets 34,232 34,760
Stock-based compensation costs 65,257 63,927
Loss attributable to equity method investments 8,486 11,205
(Gain) loss on equity investment 12,202 (14,515 )
Restructuring expenses 8,673
Changes in operating assets and liabilities:
Accounts receivable, net 19,346 (129,195 )
Inventories, net (311,681 ) (21,954 )
Prepaid expenses, net deferred income taxes and other current assets (168,109 ) (58,154 )
Accounts payable, accrued expenses, income taxes payable and other (247,632 ) 210,708
Net cash (used in) / provided by operating activities $ 351,147 $ 736,718
Cash flows from investing activities:
Purchases of property, plant, and equipment (134,835 ) (102,712 )
Patent registration and acquisition costs (21,201 ) (14,114 )
Business acquisitions, net of cash acquired (42,784 ) (39,067 )
Purchases of investments (20,724 ) (21,788 )
Proceeds from sale of investment 6,802
(Payments) / proceeds on maturity of foreign currency contracts (17,176 ) 19,219
Net cash used in investing activities $ (229,918 ) $ (158,462 )
Cash flows from financing activities:
Proceeds from issuance of common stock, net 47,384 37,790
Taxes paid related to net share settlement of equity awards (52,406 ) (50,209 )
Payments of business combination contingent consideration (3,500 )
Proceeds from borrowings, net of borrowing costs 288,000 90,000
Repayment of borrowings (166,000 ) (612,000 )
Dividends paid (245,341 ) (226,713 )
Net cash (used in) / provided by financing activities $ (128,363 ) $ (764,632 )
Effect of exchange rate changes on cash $ (14,434 ) $ 18,498
Net increase / (decrease) in cash and cash equivalents (21,568 ) (167,878 )
Cash and cash equivalents at beginning of period 295,278 463,156
Cash and cash equivalents at end of period $ 273,710 $ 295,278
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 exclude amortization expense from acquired intangibles related to cost of
sales and are reconciled below:
Three Months Ended Twelve Months Ended
June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021
Revenue $ 914,737 $ 876,103 $ 3,578,127 $ 3,196,825
GAAP cost of sales $ 392,231 $ 385,407 $ 1,553,816 $ 1,357,725
Less: Amortization of acquired intangibles (A) (6,379 ) (11,062 ) (39,650 ) (45,127 )
Less: Restructuring cost of sales (A) (5,232 )
Non-GAAP cost of sales $ 385,852 $ 374,345 $ 1,514,166 $ 1,307,366
GAAP gross profit $ 522,506 $ 490,696 $ 2,024,311 $ 1,839,100
GAAP gross margin 57.1 % 56.0 % 56.6 % 57.5 %
Non-GAAP gross profit $ 528,885 $ 501,758 $ 2,063,961 $ 1,889,459
Non-GAAP gross margin 57.8 % 57.3 % 57.7 % 59.1 %
The measure non-GAAP income from operations is reconciled with GAAP income
from operations below:
Three Months Ended Twelve Months Ended
June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021
GAAP income from operations $ 255,396 $ 241,637 $ 1,000,286 $ 903,678
Amortization of acquired intangibles cost of sales (A) 6,379 11,062 39,650 45,127
Amortization of acquired intangibles operating expenses (A ) 7,903 7,701 31,078 31,078
Acquisition-related expenses (A) 1,864 1,864
Restructuring cost of sales (A) 5,232
Restructuring operating expenses (A) 8,673
Non-GAAP income from operations $ 271,542 $ 260,400 $ 1,072,878 $ 993,788
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, 2022 June 30, 2021 June 30, 2022 June 30, 2021
GAAP net income $ 195,061 $ 195,098 $ 779,437 $ 474,505
Amortization of acquired intangibles cost of sales, net of tax (A) 4,751 8,506 30,095 34,642
Amortization of acquired intangibles operating expenses, net of tax (A) 5,886 5,921 23,589 23,857
Acquisition-related expenses (A) 1,864 1,864
Reserve for disputed tax position (A) (6,003 ) 4,111 248,773
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) 11,675 (5,073 ) 11,675 (13,549 )
Non-GAAP net income (A) $ 219,237 $ 198,449 $ 850,771 $ 780,621
GAAP diluted shares outstanding 147,000 146,544 147,043 146,451
GAAP diluted earnings (loss) per share $ 1.33 $ 1.33 $ 5.30 $ 3.24
Non-GAAP diluted earnings per share (A) $ 1.49 $ 1.35 $ 5.79 $ 5.33
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
RESMED INC. AND SUBSIDIARIES
Revenue by Product and Region
$ in millions, except for per share amounts)
Three Months Ended
June 30, 2022 (A) June 30, 2021 (A) % Change Constant Currency (B)
U.S., Canada, and Latin America
Devices $ 298.9 $ 268.4 11 %
Masks and other 229.6 203.9 13
Total Sleep and Respiratory Care $ 528.5 $ 472.3 12
Software-as-a-Service 103.1 95.8 8
Total $ 631.7 $ 568.1 11
Combined Europe, Asia, and other markets
Devices $ 188.2 $ 209.5 (10 )% (2 )%
Masks and other 94.9 98.5 (4 ) 7
Total Sleep and Respiratory Care $ 283.1 $ 308.0 (8 ) 1
Global revenue
Devices $ 487.2 $ 477.9 2 % 6 %
Masks and other 324.4 302.4 7 11
Total Sleep and Respiratory Care $ 811.6 $ 780.3 4 8
Software-as-a-Service 103.1 95.8 8 8
Total $ 914.7 $ 876.1 4 8
Twelve Months Ended
June 30, 2022 (A) June 30, 2021 (A) % Change Constant Currency (B)
U.S., Canada, and Latin America
Devices $ 1,070.4 $ 863.7 24 %
Masks and other 911.4 841.5 8
Total Sleep and Respiratory Care $ 1,981.8 $ 1,705.1 16
Software-as-a-Service 400.8 373.6 7
Total $ 2,382.6 $ 2,078.7 15
Combined Europe, Asia, and other markets
Devices $ 796.5 $ 746.4 7 % 10 %
Masks and other 399.0 371.7 7 12
Total Sleep and Respiratory Care $ 1,195.5 $ 1,118.1 7 11
Global revenue
Devices $ 1,866.9 $ 1,610.0 16 % 17 %
Masks and other 1,310.4 1,213.2 8 9
Total Sleep and Respiratory Care $ 3,177.3 $ 2,823.2 13 14
Software-as-a-Service 400.8 373.6 7 7
Total $ 3,578.1 $ 3,196.8 12 13
Last updated: Aug 11, 2022