Resmed inc. announces results for the third quarter of fiscal year
2019
San diego--(business wire)--resmed inc. (nyse: rmd, asx: rmd), a world-leading connected health company, today announced results for its quarter ended march 31, 2019. third quarter 2019 highlights revenue increased 12% to $662.2 million; up 15% on a constant currency basis gross margin expanded 100bps to 59.2% net operating profit increased 15%; non-gaap operating profit up 15% gaap diluted earnings per share of $0.73; non-gaap diluted earnings per share of $0.89 “we had another strong quarter with top-line revenue growth across all categories of our business, including a solid contribution from recently acquired saas companies and growth in international device sales,” said mick farrell, resmed’s ceo. “our expanding mask portfolio continues to drive share growth across all geographies and we have a solid product pipeline to support future growth, including the recent launch of the airfit p30i. we delivered operating leverage this quarter, even as we execute on our long-term strategy to provide innovative products, software, and solutions to improve outcomes, create efficiencies, and reduce overall healthcare system costs. we are on a trajectory to improve 250 million lives in out-of-hospital healthcare in 2025.” financial results and operating metrics unaudited; $ in millions, except for per share amounts constantcurrency (a) constantcurrency (a) discussion of third quarter results revenue in the u.s., canada, and latin america, excluding software as a service, grew by 10 percent compared to the prior year period, driven by strong sales across our mask and device product portfolios. revenue in combined europe, asia and other markets grew by 6 percent on a constant currency basis compared to the same period of the prior year. mask sales were strong across these markets. as expected, device sales in france and japan were impacted as customers completed their connected device upgrade programs. device sales outside france and japan grew well. software as a service revenue increased by 101 percent, compared to the prior year period, due to continued growth in our brightree service offerings and incremental contribution from the acquisition of matrixcare, which closed in the second quarter and healthcarefirst, which closed in the first quarter. gross margin expanded by 100 basis points over the prior year period, primarily due to higher margin contribution from matrixcare, benefits from manufacturing and procurement efficiencies and product mix changes, partially offset by declines in average selling prices. selling, general and administrative expenses increased by 11 percent compared to the prior year period, or by 17 percent on a constant currency basis. excluding the impact of recent acquisitions, selling, general and administrative expenses increased by 6 percent on a constant currency basis. sg&a expenses improved to 24.8 percent of revenue in the quarter, compared with 25.0 percent in the same period of the prior year. income from operations and non-gaap income from operations increased by 15 percent compared to the prior year period. net income decreased by 4 percent, predominantly attributable to the impact of recent acquisitions, higher interest and income tax expense compared to the prior year quarter, and non-gaap net income decreased by 3 percent compared to the prior year period. non-gaap measures adjust for amortization of acquired intangibles, matrixcare deferred revenue, and the impact of u.s. tax reform. gaap diluted earnings per share decreased by 4 percent, predominantly attributable to impact of recent acquisitions, higher interest and income tax expense compared to the prior year quarter, and non-gaap diluted earnings per share were 3 percent lower compared with the same period of the prior year. cash flow from operations for the quarter was $139.6 million, compared to net income in the current quarter of $105.4 million. during the quarter we paid $53.0 million in dividends. other business and operational highlights completed the acquisition of propeller health, a digital therapeutics company providing connected health solutions for people living with chronic obstructive pulmonary disease (copd) and asthma, for $225.0 million. announced the broad availability of mobi, resmed’s premier portable oxygen concentrator, offering an optimal balance of oxygen delivery, weight, and battery life for people with chronic obstructive pulmonary disease (copd) and other chronic diseases. introduced airfit n30i, resmed’s first top-of-head cpap mask, expanding the mask portfolio with an option to keep tubing out of the wearer’s way, letting them move and sleep in any position. announced an agreement to settle all outstanding patent infringement disputes with fisher & paykel healthcare. announced the acquisition of hb healthcare, a fast-growing, privately held south korean home medical equipment provider, expanding resmed’s leading role in korea’s cpap and respiratory care market. dividend program the resmed board of directors today declared a quarterly cash dividend of $0.37 per share. the dividend will have a record date of may 9, 2019, payable on june 13, 2019. 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 instruments 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, 2019 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, 2019 through may 9, 2019, inclusive. webcast details resmed will discuss its third quarter fiscal year 2019 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 2019 earnings webcast” to register and listen to the live webcast. a replay of the earnings webcast will be accessible on our 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 +1 800-585-8367 (u.s.) or +1 416-621-4642 (outside u.s.) and entering the passcode 3977963. the telephone replay will be available until may 16, 2019. 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 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 120 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 income (unaudited; $ in thousands, except for per share amounts) (unaudited; $ in thousands) (unaudited; $ in thousands) (unaudited; $ in thousands, except for per share amounts) the measure, “non-gaap income from operations” is reconciled with gaap income from operations below: (unaudited; $ in thousands, except for per share amounts) march 31,2019 march 31,2018 constantcurrency (a) march 31,2019 march 31,2018 constantcurrency (a)
