ResMed Inc. Announces Record Financial Results For The Quarter And Twelve Months Ended June 30, 2013
SAN DIEGO, Aug. 1, 2013 -- ResMed Inc. (NYSE: RMD) today announced record revenue and income for the quarter ended June 30, 2013. Revenue for the quarter ended June 30, 2013 was $414.6 million, an 11% increase (also an 11% increase on a constant currency basis) over the quarter ended June 30, 2012. For the quarter ended June 30, 2013, GAAP income from operations was $86.2 million, while GAAP net income was $73.0 million or $0.50 per diluted share. These results were impacted by a $24.8 million ($17.7 million, net of tax) charge for our previously announced Sydney University education, research and settlement expenses. For the quarter ended June 30, 2013, non-GAAP operating income and non-GAAP net income were $110.9 million and $90.7 million, an increase of 24% and 18%, respectively, compared to the quarter ended June 30, 2012 (non-GAAP measures exclude the impact of the charge for Sydney University education, research and settlement expenses, as described below). Non-GAAP diluted earnings per share for the quarter ended June 30, 2013 were $0.62, an increase of 17% compared to the quarter ended June 30, 2012.
SG&A expenses were $115.1 million for the quarter ended June 30, 2013, an increase of $9.1 million, or 9% (also a 9% increase on a constant currency basis) compared to the quarter ended June 30, 2012. SG&A costs were 27.8% of revenue in the quarter ended June 30, 2013, compared to 28.5% for the quarter ended June 30, 2012.
R&D expenses were $31.4 million for the quarter ended June 30, 2013, or 7.6% of revenue. R&D expenses increased by 12% (a 14% increase on a constant currency basis) compared to the quarter ended June 30, 2012. R&D expenses were favorably impacted by the depreciation of the Australian dollar against the U.S. dollar.
The company amortized acquired intangibles of $2.5 million ($1.9 million, net of tax) during the quarter ended June 30, 2013. Stock-based compensation costs incurred during the quarter ended June 30, 2013 of $10.5 million ($6.6 million, net of tax) consisted of expenses associated with stock options, restricted stock units, and our employee stock purchase plan.
As disclosed in our May press release, we reached an agreement with the University of Sydney ("University") to pay $24.8 million for the establishment of two perpetual academic chairs, the funding of future research in the fields of sleep medicine and biomedical engineering and the settlement of legal proceedings between the parties. We have expensed the full amount of $24.8 million ($17.7 million, net of tax) in the current quarter within our operating expenses and we have separately disclosed the amount as an education, research and settlement charge.
For the year ended June 30, 2013, revenue was $1.5 billion, an increase of 11% over the year ended June 30, 2012 (a 12% increase on a constant currency basis). For the year ended June 30, 2013, GAAP net income was $307.1 million, an increase of 21% compared to the year ended June 30, 2012. GAAP diluted earnings per share for the year ended June 30, 2013 were $2.10, an increase of 23% compared to the year ended June 30, 2012. For the year ended June 30, 2013, non-GAAP operating income and non-GAAP diluted earnings per share were $379.6 million and $2.22, an increase of 29% and 30%, respectively, compared to the year ended June 30, 2012.
Additionally, the Board of Directors has today declared a quarterly dividend of $0.25 per share, which will have a record date of August 20, 2013, and be payable on September 17, 2013. The dividend will be paid in U.S. currency to holders of ResMed's common stock trading on the New York Stock Exchange (NYSE). Holders of CHESS Depositary Instruments (CDIs) trading on the Australian Securities Exchange (ASX) 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. Because the two exchanges have different settlement and transfer procedures, the ex-dividend date will be August 14, 2013 for CDI holders and August 16, 2013 for common stock holders. As a result of these differences, 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 14, 2013 through August 20, 2013, inclusive.
Mick Farrell, chief executive officer, commented, "In the fourth quarter of fiscal 2013 we showed strong year-over-year growth on both top and bottom lines. Revenue in the Americas increased by 11% over the prior year's quarter to $230.3 million for Q4. Revenue in Europe and Asia-Pac combined reached $184.3 million, an increase of 12% (an 11% increase on a constant currency basis) over the prior year's quarter. Non-GAAP operating profit for the June quarter was $110.9 million, cash flow from operations was a record $123.9 million, while gross margin was 62.7%, all demonstrating excellent operating performance. We have also announced today that our quarterly dividend has increased by 47% to $0.25 per share. Additionally, during the quarter, we repurchased 1.5 million shares, at a cost of $72.7 million. The increased dividend and the ongoing share buy-back program demonstrate our commitment to a robust capital management program.
"We had many other accomplishments this quarter to report. The Serve-HF heart failure trial is fully enrolled with over 1,325 patients. In addition, we have finalized the protocol for our U.S. heart failure trial, CAT-HF and intend to begin enrollment this fall. We introduced VPAP™ COPD, a first-of-its-kind respiratory product for those suffering from chronic obstructive pulmonary disease (COPD), and it is already doing well. We launched the Quattro™ Air full face mask globally. This new mask is the lightest full face mask on the market, weighing in at just 3.3 ounces, making it 45 percent lighter than its predecessor and the current #1 seller in the U.S., the Mirage Quattro™. During the quarter, we also launched ResMed's SleepSeeker – which is an online tool to increase patient engagement in therapy for sleep-disordered breathing. With SleepSeeker, patients will be able to view their own therapy data, including time on therapy, any apnea or hypopnea events, and any mask leaks during the night. Our aim is to improve therapy compliance through better patient engagement. These solutions will help in the management and control of various chronic diseases associated with both COPD and untreated sleep-disordered breathing."