Business Wire | Oct 29, 2020 04:06PM EDT

ResMed Inc. Announces Results for the First Quarter of Fiscal Year 2021

Oct. 29, 2020

SAN DIEGO--(BUSINESS WIRE)--Oct. 29, 2020--ResMed Inc. (NYSE: RMD, ASX: RMD), a world-leading digital health company, today announced results for its quarter ended September 30, 2020.

First Quarter 2021 HighlightsAll comparisons are to the prior year period

* Revenue increased 10% to $751.9 million; up 9% on a constant currency basis

* GAAP gross margin of 58.3%; non-GAAP gross margin expanded 30 bps to 59.9%

* Net operating profit increased 27%; non-GAAP operating profit up 24%

* GAAP diluted earnings per share of $1.22; non-GAAP diluted earnings per share of $1.27

"Our first quarter results reflect solid performance and positive trends across our business," said Mick Farrell, ResMed's CEO. "During the quarter, we continued to support the global COVID-19 pandemic response, providing ventilators, masks, and circuits to countries in need around the world. In our core markets of sleep apnea, COPD and asthma, we are encouraged by the sequential improvement in new patient volume, as well as the ongoing strong adoption of our mask and accessories resupply programs. We have accelerated the launch of digital health solutions to help clinicians remotely diagnose, treat, and manage patients during the pandemic and beyond. Our global team is effectively managing SG&A expenses, while investing in broad-based R&D programs to help accelerate our ResMed 2025 growth strategy: improving 250 million lives in out-of-hospital healthcare in 2025."

Financial Results and Operating MetricsUnaudited; $ in millions, except for per share amounts



Three Months Ended



September September % Constant 30, 30, Change Currency 2020 2019 ^ (A)

Revenue $ 751.9 $ 681.1 10 % 9 %

Gross margin ^(B) 58.3 % 57.5 % 1

Non-GAAP gross margin ^(B) 59.9 % 59.6 % 1

Selling, general and 159.0 167.4 (5 ) (7 ) administrative expenses

Research and development 54.5 48.0 14 12 expenses

Income from operations 216.9 171.1 27

Non-GAAP income from 237.1 191.0 24 operations ^(B)

Net income 178.4 120.1 48

Non-GAAP net income^ (B) 185.4 135.4 37

Diluted earnings per share $ 1.22 $ 0.83 47

Non-GAAP diluted earnings $ 1.27 $ 0.93 37 per share ^(B)



In order to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency fluctuations, we provide certain financial information on a "constant currency basis," which is in addition to the actual financial information presented. In order to calculate our constant currency information, we translate the current(A) period financial information using the foreign currency exchange rates that were in effect during the previous comparable period. However, constant currency measures should not be considered in isolation or as an alternative to U.S. dollar measures that reflect current period exchange rates, or to other financial measures calculated and presented in accordance with U.S. GAAP.

See the reconciliation of non-GAAP financial measures in the table at the(B) end of the press release.

Discussion of First Quarter ResultsAll comparisons are to the prior year period unless otherwise noted

* Revenue in the U.S., Canada, and Latin America, excluding Software as a Service, grew by 9 percent, driven by strong sales across our mask product portfolio and increased demand for our ventilators due to COVID-19, partially offset by a decrease in demand for our sleep devices.

* Revenue in combined Europe, Asia, and other markets grew by 10 percent on a constant currency basis, primarily driven by sales across our device and mask product portfolio, including increased demand for our ventilators due to COVID-19.

* Software as a Service revenue increased by 6 percent, due to continued growth in resupply service offerings and stabilizing patient flow in out-of-hospital care settings.

* Gross margin expanded by 80 basis points while non-GAAP gross margin expanded by 30 basis points. These expansions were primarily due to benefits from product mix changes and foreign exchange rates, partially offset by declines in manufacturing and procurement efficiencies driven by higher air freight costs.

* Selling, general, and administrative expenses decreased by 7 percent on a constant currency basis. SG&A expenses improved to 21.1 percent of revenue in the quarter, compared with 24.6 percent in the same period of the prior year. These changes in SG&A expenses were mainly due to savings in travel and other cost management as a result of the COVID-19 pandemic.

* Income from operations increased by 27 percent and non-GAAP income from operations increased by 24 percent.

* Net income grew by 48 percent and diluted earnings per share grew by 47 percent, largely attributable to the impact of legal settlement expenses in the prior year. Non-GAAP net income grew by 37 percent and non-GAAP diluted earnings per share grew by 37 percent, predominantly attributable to strong ventilator device sales and controlled operating costs.

* Cash flow from operations for the quarter was $144.0 million, compared to net income in the current quarter of $178.4 million. During the quarter we paid $56.5 million in dividends.

Other Business and Operational Highlights

* Introduced the AirTouch N20 foam CPAP mask with a memory foam cushion, the softest nasal mask ever. AirTouch N20 uses the same patented UltraSoft memory foam cushion as the full face AirTouch F20, adapting to the curves and contours of each face to create a soft, personalized fit designed to increase comfort and CPAP adherence.

* Two ResMed masks, the AirFit N30 and AirFit F30i, received Good Design Australia Awards in the Product Design category for achieving the highest level of design and innovation in service to sleep apnea patients worldwide. ResMed has now won eight Good Design Australia Awards.

* ResMed CEO Mick Farrell was named Large Public Company CEO of the Year by the San Diego Business Journal. Farrell was honored for leading ResMed's response to the global pandemic and the company's swift pivot to increasing its manufacturing of lifesaving ventilators and bilevel devices by more than 3.5 times during the first six months of the COVID-19 crisis. ResMed also accelerated the launch of new digital health solutions to help clinicians remotely diagnose, treat, and manage sleep apnea, COPD, and asthma patients during the pandemic and beyond.

Dividend program

The ResMed board of directors today declared a quarterly cash dividend of $0.39 per share. The dividend will have a record date of November 12, 2020, payable on December 17, 2020. 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 November 11, 2020, 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 11, 2020, through November 12, 2020, inclusive.

Webcast details

ResMed will discuss its first quarter fiscal year 2021 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 2021 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 +1 800-585-8367 (U.S.) or +1 416-621-4642 (outside U.S.) and entering the passcode 2192036. The telephone replay will be available until November 12, 2020.

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 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 Income

(Unaudited; $ in thousands, except for per share amounts)



Three Months Ended

September September 30, 30, 2020 2019



Net revenue $ 751,944 $ 681,056



Cost of sales 301,304 276,001

Amortization of acquired intangibles ^(1) 11,979 13,436

Total cost of sales $ 313,283 $ 289,437

Gross profit $ 438,661 $ 391,619



Selling, general and administrative 158,989 167,440

Research and development 54,533 48,033

Amortization of acquired intangibles ^(1) 8,243 5,044

Total operating expenses $ 221,765 $ 220,517

Income from operations 216,896 171,102



Other income (expenses), net:

Interest income (expense), net $ (6,725 ) $ (10,543 )

Loss attributable to equity method investments (2,288 ) (6,863 )

Other, net 7,971 (3,109 )

Total other income (expenses), net (1,042 ) (20,515 )

Income before income taxes $ 215,854 $ 150,587

Income taxes 37,482 30,439

Net income $ 178,372 $ 120,148



Basic earnings per share $ 1.23 $ 0.84

Diluted earnings per share $ 1.22 $ 0.83

Non-GAAP diluted earnings per share ^(1) $ 1.27 $ 0.93



Basic shares outstanding 144,900 143,719

Diluted shares outstanding 146,100 145,099

See the reconciliation of non-GAAP financial(1) measures in the table at the end of the press release.

RESMED INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(Unaudited; $ in thousands)

September 30, 2020

June 30, 2020

ASSETS

Current assets:

Cash and cash equivalents

$

421,414

$

463,156

Accounts receivable, net

464,892

474,643

Inventories

478,006

416,915

Prepayments and other current assets

178,297

168,745

Total current assets

$

1,542,609

$

1,523,459

Non-current assets:

Property, plant and equipment, net

$

424,819

$

417,335

Operating lease right-of-use assets

124,473

118,348

Goodwill and other intangibles, net

2,332,637

2,338,492

Deferred income taxes and other non-current assets

196,306

189,742

Total non-current assets

$

3,078,235

$

3,063,917

Total assets

$

4,620,844

$

4,587,376

LIABILITIES AND STOCKHOLDERS' EQUITY:

Current liabilities:

Accounts payable

$

117,589

$

135,786

Accrued expenses

269,859

270,353

Operating lease liabilities, current

21,329

21,263

Deferred revenue

102,035

98,617

Income taxes payable

68,053

64,755

Short-term debt

11,988

11,987

Total current liabilities

$

590,853

$

602,761

Non-current liabilities:

Deferred revenue

$

83,887

$

87,307

Deferred income taxes

13,007

13,011

Operating lease liabilities, non-current

111,183

101,880

Other long term liabilities

8,568

8,347

Long-term debt

1,044,435

1,164,133

Long-term income taxes payable

90,051

112,910

Total non-current liabilities

$

1,351,131

$

1,487,588

Total liabilities

$

1,941,984

$

2,090,349

STOCKHOLDERS' EQUITY:

Common stock

$

580

$

580

Additional paid-in capital

1,588,018

1,570,694

Retained earnings

2,953,709

2,832,991

Treasury stock

(1,623,256

)

(1,623,256

)

Accumulated other comprehensive income

(240,191

)

(283,982

)

Total stockholders' equity

$

2,678,860

$

2,497,027

Total liabilities and stockholders' equity

$

4,620,844

$

4,587,376





RESMED INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(Unaudited; $ in thousands)



September 30, June 30, 2020 2020

ASSETS

Current assets:

Cash and cash equivalents $ 421,414 $ 463,156

Accounts receivable, net 464,892 474,643

Inventories 478,006 416,915

Prepayments and other current assets 178,297 168,745

Total current assets $ 1,542,609 $ 1,523,459

Non-current assets:

Property, plant and equipment, net $ 424,819 $ 417,335

Operating lease right-of-use assets 124,473 118,348

Goodwill and other intangibles, net 2,332,637 2,338,492

Deferred income taxes and other non-current 196,306 189,742 assets

Total non-current assets $ 3,078,235 $ 3,063,917

Total assets $ 4,620,844 $ 4,587,376

LIABILITIES AND STOCKHOLDERS' EQUITY:

Current liabilities:

Accounts payable $ 117,589 $ 135,786

Accrued expenses 269,859 270,353

Operating lease liabilities, current 21,329 21,263

Deferred revenue 102,035 98,617

Income taxes payable 68,053 64,755

Short-term debt 11,988 11,987

Total current liabilities $ 590,853 $ 602,761

Non-current liabilities:

Deferred revenue $ 83,887 $ 87,307

Deferred income taxes 13,007 13,011

Operating lease liabilities, non-current 111,183 101,880

Other long term liabilities 8,568 8,347

Long-term debt 1,044,435 1,164,133

Long-term income taxes payable 90,051 112,910

Total non-current liabilities $ 1,351,131 $ 1,487,588

Total liabilities $ 1,941,984 $ 2,090,349

STOCKHOLDERS' EQUITY:

Common stock $ 580 $ 580

Additional paid-in capital 1,588,018 1,570,694

Retained earnings 2,953,709 2,832,991

Treasury stock (1,623,256 ) (1,623,256 )

Accumulated other comprehensive income (240,191 ) (283,982 )

Total stockholders' equity $ 2,678,860 $ 2,497,027

Total liabilities and stockholders' equity $ 4,620,844 $ 4,587,376

RESMED INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(Unaudited; $ in thousands)

Three Months Ended

September 30, 2020

September 30, 2019

Cash flows from operating activities:

Net income

$

178,372

$

120,148

Adjustment to reconcile net income to cash provided by operating activities:

Depreciation and amortization

39,466

37,954

Amortization of right-of-use-assets

10,422

5,963

Stock-based compensation costs

16,071

13,256

Loss attributable to equity method investments

2,288

6,863

(Gain) loss on equity investment

(8,476

)

2,590

Changes in fair value of business combination contingent consideration

-

(8

)

Changes in operating assets and liabilities:

Accounts receivable, net

16,110

28,286

Inventories, net

(52,396

)

(14,204

)

Prepaid expenses, net deferred income taxes and other current assets

3,415

(8,407

)

Accounts payable, accrued expenses and other

(61,273

)

(30,078

)

Net cash provided by operating activities

$

143,999

$

162,363

Cash flows from investing activities:

Purchases of property, plant and equipment

(13,501

)

(22,671

)

Patent registration costs

(5,237

)

(2,069

)

Business acquisitions, net of cash acquired

-

-

Purchases of investments

(8,196

)

(2,741

)

Proceeds / (Payments) on maturity of foreign currency contracts

4,824

(5,743

)

Net cash used in investing activities

$

(22,110

)

$

(33,224

)

Cash flows from financing activities:

Proceeds from issuance of common stock, net

1,026

5,609

Taxes paid related to net share settlement of equity awards

227

(326

)

Payment of business combination contingent consideration

-

(302

)

Proceeds from borrowings, net of borrowing costs

55,000

565,000

Repayment of borrowings

(175,000

)

(614,003

)

Dividends paid

(56,511

)

(56,052

)

Net cash used in financing activities

$

(175,258

)

$

(100,074

)

Effect of exchange rate changes on cash

$

11,627

$

(4,039

)

Net increase / (decrease) in cash and cash equivalents

(41,742

)

25,026

Cash and cash equivalents at beginning of period

463,156

147,128

Cash and cash equivalents at end of period

$

421,414

$

172,154

RESMED INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(Unaudited; $ in thousands)



Three Months Ended

September September 30, 30, 2020 2019

Cash flows from operating activities:

Net income $ 178,372 $ 120,148

Adjustment to reconcile net income to cash provided by operating activities:

Depreciation and amortization 39,466 37,954

Amortization of right-of-use-assets 10,422 5,963

Stock-based compensation costs 16,071 13,256

Loss attributable to equity method investments 2,288 6,863

(Gain) loss on equity investment (8,476 ) 2,590

Changes in fair value of business combination - (8 ) contingent consideration

Changes in operating assets and liabilities:

Accounts receivable, net 16,110 28,286

Inventories, net (52,396 ) (14,204 )

Prepaid expenses, net deferred income taxes and 3,415 (8,407 ) other current assets

Accounts payable, accrued expenses and other (61,273 ) (30,078 )

Net cash provided by operating activities $ 143,999 $ 162,363

Cash flows from investing activities:

Purchases of property, plant and equipment (13,501 ) (22,671 )

Patent registration costs (5,237 ) (2,069 )

Business acquisitions, net of cash acquired - -

Purchases of investments (8,196 ) (2,741 )

Proceeds / (Payments) on maturity of foreign 4,824 (5,743 ) currency contracts

Net cash used in investing activities $ (22,110 ) $ (33,224 )

Cash flows from financing activities:

Proceeds from issuance of common stock, net 1,026 5,609

Taxes paid related to net share settlement of 227 (326 ) equity awards

Payment of business combination contingent - (302 ) consideration

Proceeds from borrowings, net of borrowing costs 55,000 565,000

Repayment of borrowings (175,000 ) (614,003 )

Dividends paid (56,511 ) (56,052 )

Net cash used in financing activities $ (175,258 ) $ (100,074 )

Effect of exchange rate changes on cash $ 11,627 $ (4,039 )

Net increase / (decrease) in cash and cash (41,742 ) 25,026 equivalents

Cash and cash equivalents at beginning of period 463,156 147,128

Cash and cash equivalents at end of period $ 421,414 $ 172,154

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" excludes amortization expense from acquired intangibles related to cost of sales and are reconciled below:

Three Months Ended

September 30, 2020

September 30, 2019

Revenue

$

751,944

$

681,056

Add back: Deferred revenue fair value adjustment (A)

-

1,445

Non-GAAP Revenue

$

751,944

$

682,501

GAAP Cost of sales

$

313,283

$

289,437

Less: Amortization of acquired intangibles (A)

(11,979

)

(13,436

)

Non-GAAP cost of sales

$

301,304

$

276,001

GAAP gross profit

438,661

391,619

GAAP gross margin

58.3

%

57.5

%

Non-GAAP gross profit

450,640

406,500

Non-GAAP gross margin

59.9

%

59.6

%

The measure "non-GAAP income from operations" is reconciled with GAAP income from operations below:

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" excludesamortization expense from acquired intangibles related to cost of sales and arereconciled below:

Three Months Ended

September 30, September 30, 2020 2019



Revenue $ 751,944 $ 681,056

Add back: Deferred revenue fair value adjustment - 1,445 ^(A)

Non-GAAP Revenue $ 751,944 $ 682,501



GAAP Cost of sales $ 313,283 $ 289,437

Less: Amortization of acquired intangibles ^(A) (11,979 ) (13,436 )

Non-GAAP cost of sales $ 301,304 $ 276,001



GAAP gross profit 438,661 391,619

GAAP gross margin 58.3 % 57.5 %

Non-GAAP gross profit 450,640 406,500

Non-GAAP gross margin 59.9 % 59.6 %

The measure "non-GAAP income from operations" is reconciled with GAAP income from operations below:



Three Months Ended

September September 30, 30, 2020 2019



GAAP income from operations $ 216,896 $ 171,102

Amortization of acquired intangibles - cost of 11,979 13,436 sales ^(A)

Amortization of acquired intangibles - operating 8,243 5,044 expenses ^(A)

Deferred revenue fair value adjustment ^(A) - 1,445

Non-GAAP income from operations $ 237,118 $ 191,027

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

September 30, 2020

September 30, 2019

GAAP net income

$

178,372

$

120,148

Amortization of acquired intangibles - cost of sales, net of tax(A)

9,169

10,267

Amortization of acquired intangibles - operating expenses, net of tax(A)

6,309

3,855

Deferred revenue fair value adjustment, net of tax (A)

-

1,107

(Gain) loss on equity investments (A)

(8,476

)

-

Non-GAAP net income (A)

$

185,374

$

135,377

Diluted shares outstanding

146,100

145,099

GAAP diluted earnings per share

$

1.22

$

0.83

Non-GAAP diluted earnings per share (A)

$

1.27

$

0.93

(A)ResMed adjusts for the impact of the amortization of acquired intangibles, deferred revenue fair value adjustment and the (gain) loss on equity investments from their evaluation of ongoing operations, and believes that investors benefit from adjusting these items to facilitate a more meaningful evaluation of current operating performance.

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 GAAP.

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



September 30, September 30, 2020 2019



GAAP net income $ 178,372 $ 120,148

Amortization of acquired intangibles - 9,169 10,267 cost of sales, net of tax^ (A)

Amortization of acquired intangibles - 6,309 3,855 operating expenses, net of tax^ (A)

Deferred revenue fair value adjustment, - 1,107 net of tax ^(A)

(Gain) loss on equity investments ^(A) (8,476 ) -

Non-GAAP net income ^(A) $ 185,374 $ 135,377

Diluted shares outstanding 146,100 145,099

GAAP diluted earnings per share $ 1.22 $ 0.83

Non-GAAP diluted earnings per share ^ $ 1.27 $ 0.93 (A)

ResMed adjusts for the impact of the amortization of acquired intangibles, deferred revenue fair value adjustment and the (gain) loss on equity(A) investments from their evaluation of ongoing operations, and believes that investors benefit from adjusting these items to facilitate a more meaningful evaluation of current operating performance.

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 GAAP.

RESMED INC. AND SUBSIDIARIES

Revenue by Product and Region

(Unaudited; $ in millions, except for per share amounts)

Three Months Ended

September 30, 2020 (A)

September 30, 2019 (A)

% Change

Constant Currency (B)

U.S., Canada and Latin America

Devices

$

197.4

$

186.9

6

%

Masks and other

205.8

183.4

12

Total Sleep and Respiratory Care

$

403.2

$

370.3

9

Software as a Service

92.1

86.9

6

Total

$

495.3

$

457.2

8

Combined Europe, Asia and other markets

Devices

$

176.0

$

151.9

16

%

11

%

Masks and other

80.6

72.0

12

8

Total Sleep and Respiratory Care

$

256.6

$

223.9

15

10

Global revenue

Devices

$

373.4

$

338.8

10

%

8

%

Masks and other

286.4

255.4

12

11

Total Sleep and Respiratory Care

$

659.8

$

594.2

11

9

Software as a Service

92.1

86.9

6

6

Total

$

751.9

$

681.1

10

9

(A)

Totals and subtotals may not add due to rounding.

(B)

In order to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency fluctuations, we provide certain financial information on a "constant currency basis," which is in addition to the actual financial information presented. In order to calculate our constant currency information, we translate the current period financial information using the foreign currency exchange rates that were in effect during the previous comparable period. However, constant currency measures should not be considered in isolation or as an alternative to U.S. dollar measures that reflect current period exchange rates, or to other financial measures calculated and presented in accordance with U.S. GAAP.

View source version on businesswire.com: https://www.businesswire.com/news/home/20201029006230/en/

CONTACT: For investors Amy Wakeham +1 858-836-5000 investorrelations@resmed.com

CONTACT: For media Jayme Rubenstein +1 858-836-6798 news@resmed.com