rmd-20220930

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

______________________________________________________________________________________________

FORM 10-Q

______________________________________________________________________________________________

(Mark One)


x			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2022


o			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______to _______

Commission File Number: 001-15317

______________________________________________________________________________________________

ResMed Inc.

(Exact name of registrant as specified in its charter)

______________________________________________________________________________________________

Delaware

(State or other jurisdiction of incorporation or organization)

98-0152841

(I.R.S. Employer Identification No.)

9001 Spectrum Center Blvd.

San Diego, CA 92123

United States of America

(Address of principal executive offices, including zip code)

(858) 836-5000

(Registrant’s telephone number, including area code)

______________________________________________________________________________________________

Securities registered pursuant to Section 12(b) of the Exchange Act:

Title of each class

Trading

Symbol(s)

Name of each exchange on which registered

Common Stock, par value $0.004 per share

RMD

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.:

Large Accelerated Filer

Accelerated Filer

Non-Accelerated Filer

Smaller Reporting Company

Emerging Growth Company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No x

At October 24, 2022 there were 146,483,650 shares of Common Stock ($0.004 par value) outstanding. This number excludes 41,836,234 shares held by the registrant as treasury shares.

Table of Contents

RESMED INC. AND SUBSIDIARIES

INDEX


Part I	Financial Information	3

Item 1	Financial Statements	3

	Condensed Consolidated Balance Sheets (Unaudited)	3

	Condensed Consolidated Statements of Operations (Unaudited)	4

	Condensed Consolidated Statements of Comprehensive Income (Unaudited)	5

	Condensed Consolidated Statements of Changes in Equity (Unaudited)	6

	Condensed Consolidated Statements of Cash Flows (Unaudited)	8

	Notes to the Condensed Consolidated Financial Statements (Unaudited)	9

Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	20

Item 3	Quantitative and Qualitative Disclosures About Market Risk	30

Item 4	Controls and Procedures	32

Part II	Other Information	33

Item 1	Legal Proceedings	33

Item 1A	Risk Factors	33

Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	33

Item 3	Defaults Upon Senior Securities	33

Item 4	Mine Safety Disclosures	33

Item 5	Other Information	33

Item 6	Exhibits	34

	Signatures	35

Table of Contents


PART I – FINANCIAL INFORMATION			Item 1

Item 1. Financial Statements

RESMED INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets (Unaudited)

(In US$ and in thousands, except share and per share data)


	September 30, 2022		June 30, 2022
Assets
Current assets:
Cash and cash equivalents	$	207,163	$	273,710
Accounts receivable, net of allowances of $23,867 and $23,259 at September 30, 2022 and June 30, 2022, respectively	620,483		575,950
Inventories (note 3)	864,852		743,910
Prepaid expenses and other current assets (note 3)	341,199		337,908
Total current assets	2,033,697		1,931,478
Non-current assets:
Property, plant and equipment, net (note 3)	487,376		498,181
Operating lease right-of-use assets	125,319		132,314
Goodwill (note 4)	1,938,843		1,936,442
Other intangible assets, net (note 3)	338,151		345,944
Deferred income taxes	80,745		79,746
Prepaid taxes and other non-current assets	173,429		171,748
Total non-current assets	3,143,863		3,164,375
Total assets	$	5,177,560	$	5,095,853
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	181,485	$	159,245
Accrued expenses	324,055		344,722
Operating lease liabilities, current	21,076		21,856
Deferred revenue	108,195		108,667
Income taxes payable (note 6)	47,942		44,893
Short-term debt, net (note 8)	9,906		9,916
Total current liabilities	692,659		689,299
Non-current liabilities:
Deferred revenue	97,620		95,455
Deferred income taxes	11,830		9,714
Operating lease liabilities, non-current	114,214		120,453
Other long-term liabilities	5,838		5,974
Long-term debt, net (note 8)	785,436		765,325
Long-term income taxes payable (note 6)	37,076		48,882
Total non-current liabilities	1,052,014		1,045,803
Total liabilities	1,744,673		1,735,102
Commitments and contingencies (note 10)
Stockholders’ equity:
Preferred stock, $0.01 par value, 2,000,000 shares authorized; none issued	—		—
Common stock, $0.004 par value, 350,000,000 shares authorized; 188,295,266 issued and 146,459,032 outstanding at September 30, 2022 and 188,246,955 issued and 146,410,721 outstanding at June 30, 2022	586		586
Additional paid-in capital	1,701,902		1,682,432
Retained earnings	3,759,783		3,613,736
Treasury stock, at cost, 41,836,234 shares at September 30, 2022 and June 30, 2022	(1,623,256)		(1,623,256)
Accumulated other comprehensive loss	(406,128)		(312,747)
Total stockholders’ equity	3,432,887		3,360,751
Total liabilities and stockholders’ equity	$	5,177,560	$	5,095,853

See the accompanying notes to the unaudited condensed consolidated financial statements.

Table of Contents


PART I – FINANCIAL INFORMATION			Item 1

RESMED INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Operations (Unaudited)

(In US$ and in thousands, except per share data)


	Three Months Ended September 30,
	2022		2021
Net revenue - Sleep and Respiratory Care products	$	844,443	$	806,499
Net revenue - Software as a Service	105,851		97,516
Net revenue	950,294		904,015

Cost of sales - Sleep and Respiratory Care products	363,844		349,681
Cost of sales - Software as a Service	39,266		36,986
Cost of sales (exclusive of amortization shown separately below)	403,110		386,667

Amortization of acquired intangible assets - Sleep and Respiratory Care products	1,228		900
Amortization of acquired intangible assets - Software as a Service	5,146		10,159
Amortization of acquired intangible assets	6,374		11,059
Total cost of sales	409,484		397,726
Gross profit	540,810		506,289

Selling, general, and administrative	193,933		176,719
Research and development	63,188		59,950
Amortization of acquired intangible assets	7,950		7,707

Total operating expenses	265,071		244,376
Income from operations	275,739		261,913
Other income (loss), net:
Interest (expense) income, net	(7,134)		(5,360)
Loss attributable to equity method investments (note 5)	(2,028)		(1,386)
Gain (loss) on equity investments (note 5)	(3,280)		5,612
Other, net	(1,504)		(1,991)
Total other income (loss), net	(13,946)		(3,125)
Income before income taxes	261,793		258,788
Income taxes	51,315		55,175
Net income	$	210,478	$	203,613
Basic earnings per share (note 9)	$	1.44	$	1.40
Diluted earnings per share (note 9)	$	1.43	$	1.39
Dividend declared per share	$	0.44	$	0.42
Basic shares outstanding (000's)	146,431		145,680
Diluted shares outstanding (000's)	147,134		146,860

See the accompanying notes to the unaudited condensed consolidated financial statements.

Table of Contents


PART I – FINANCIAL INFORMATION			Item 1

RESMED INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited)

(In US$ and in thousands)


	Three Months Ended September 30,
	2022		2021
Net income	$	210,478	$	203,613
Other comprehensive income (loss):
Foreign currency translation (loss) gain adjustments	(93,381)		(23,516)
Comprehensive income	$	117,097	$	180,097

See the accompanying notes to the unaudited condensed consolidated financial statements.

Table of Contents


PART I – FINANCIAL INFORMATION			Item 1

RESMED INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Changes in Equity (Unaudited)

(In US$ and in thousands)

Common Stock

Additional

Paid-in

Capital

Treasury Stock

Retained

Earnings

Accumulated

Other

Comprehensive

Income (Loss)

Total

Amount

Balance, June 30, 2022

188,247

586

SEC Form 10-Q filed by ResMed Inc.