Resmed inc. announces results for the first 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 september 30, 2018. first quarter 2019 highlights revenue increased 12% to $588.3 million; up 13% on a constant currency basis net income increased by 23%; non-gaap net income up 23% gaap diluted earnings per share of $0.73; non-gaap diluted earnings per share of $0.81 “our first quarter 2019 results demonstrate continued strong performance across our business with 13 percent top-line revenue growth, driven by growth across our entire portfolio of offerings,” said mick farrell, resmed’s chief executive officer. “we also delivered another quarter of improving operating leverage resulting in double-digit growth at the bottom line.” farrell continued, “during the quarter we expanded our product portfolio with new masks and made ongoing upgrades to our digital health solutions, separating resmed from the competition. we provide customers with services and solutions to help improve patient outcomes, create efficiencies, and reduce overall healthcare system costs.” financial results and operating metrics unaudited; $ in millions, except for per share amounts september 30,2018 september 30,2017 constantcurrency (a) discussion of first quarter results revenue in 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 16 percent on a constant currency basis compared to the same period of the prior year, primarily driven by strong device sales. software as a service revenue increased 25 percent, compared to the prior year period due to continued growth in our brightree service offerings and incremental contribution from the acquisition of healthcarefirst, which closed early in the first quarter. gross margin was slightly lower than the prior year quarter mainly due to declines in average selling prices, which were partially offset by manufacturing and procurement efficiencies. selling, general and administrative expenses increased by 2 percent compared to the prior year period, or by 4 percent on a constant currency basis, due to continued improvements in operating leverage. sg&a expenses improved to 25.0 percent of revenue in the quarter, compared with 27.5 percent in the same period of the prior year. income from operations increased by 28 percent and non-gaap income from operations increased by 26 percent compared to the prior year period. net income increased by 23 percent and non-gaap net income increased by 23 percent compared to the prior year period. non-gaap measures adjust for amortization of acquired intangibles and impact of u.s. tax reform on income tax expense. gaap diluted earnings per share increased by 22 percent and non-gaap diluted earnings per share were 23 percent higher compared with the same period of the prior year. cash flow from operations for the quarter was $48.1 million, compared to net income in the current quarter of $105.7 million. cash flow from operations included tax payments of $125.0 million compared with $30.2 million in the same period of the prior year. during the quarter we paid $52.8 million in dividends. other business and operational highlights completed the acquisition of healthcarefirst, a provider of software solutions and services for home health and hospice agencies, for consideration of $126.3 million. announced a joint venture with verily, combining resmed’s expertise in sleep apnea and verily’s advanced health data analytics technologies, to study the health and financial impacts of undiagnosed and untreated sleep apnea, and to develop software solutions that enable healthcare providers to more efficiently identify, diagnose, treat and manage individuals with sleep apnea and other breathing-related sleep disorders. introduced key upgrades to the astral life support ventilator, including autoepap functionality along with customizable program names and easily changeable interfaces. introduced airfit f30, resmed’s first minimal-contact full face cpap mask, expanding the mask product portfolio to meet the needs of a select group of pap users who need a full face mask but are looking for the flexibility to wear glasses in bed or to reduce facial contact with a full face mask. share repurchase program during the quarter, we repurchased 200,000 shares at a cost of $22.8 million, as part of our ongoing capital management program. 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 november 8, 2018, payable on december 13, 2018. 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 november 7, 2018 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 november 7, 2018 through november 8, 2018, inclusive. webcast details resmed will discuss its first 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 “q1 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 800-585-8367 (u.s.) or +1 416-621-4642 (outside u.s.), and entering the passcode 6686709. the telephone replay will be available until november 8, 2018. about resmed resmed (nyse: rmd, asx: rmd), a world-leading connected health company with more than 6 million cloud-connected devices for daily remote patient monitoring, changes lives with every breath. its award-winning devices and software solutions help treat and manage sleep apnea, chronic obstructive pulmonary disease and other respiratory conditions. its 6,000-member team strives to improve patients’ quality of life, reduce the impact of chronic disease and save healthcare costs in more than 120 countries. 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. (unaudited; $ in thousands, except for per share amounts) september 30,2018 september 30,2017 (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) september 30,2018 june 30,2018 (unaudited; $ in thousands) september 30,2018 september 30,2017 (unaudited; $ in thousands, except for per share amounts) the measure, “non-gaap income from operations” is reconciled with gaap income from operations below: september 30,2018 september 30,2017 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: september 30,2018 september 30,2017 revenue by product and region (unaudited; $ in thousands, except for per share amounts) september 30,2018 september 30,2017 constantcurrency (a) combined europe, asia and other markets
