ResMed Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>ResMed Inc. filed its Q3 FY2024 10-Q, detailing financial performance and segment data for the period ending March 31, 2024.</b>

AI Summary

RESMED INC (RSMDF) filed a Quarterly Report (10-Q) with the SEC on April 26, 2024. ResMed Inc. reported financial results for the third quarter of fiscal year 2024, ending March 31, 2024. The filing covers the period from January 1, 2024, to March 31, 2024, and compares it to prior periods. Key financial statement items such as common stock, additional paid-in capital, treasury stock, retained earnings, and accumulated other comprehensive income are detailed for various dates. Segment information for Sleep and Respiratory and Software as a Service is provided for different fiscal periods. The company's principal executive offices are located at 9001 Spectrum Center Blvd., San Diego, CA 92123.

Why It Matters

For investors and stakeholders tracking RESMED INC, this filing contains several important signals. This 10-Q filing provides investors with the latest financial snapshot of ResMed's performance, crucial for understanding its current operational health and growth trajectory. The detailed segment reporting allows for a deeper analysis of which business areas, such as Sleep and Respiratory or Software as a Service, are driving revenue and growth.

Risk Assessment

Risk Level: low — RESMED INC shows low risk based on this filing. The filing is a standard quarterly report (10-Q) with no immediate red flags, indicating routine financial disclosure.

Analyst Insight

Monitor future filings for trends in segment performance and changes in key financial metrics like revenue and net income.

Key Numbers

• 2024-03-31 — Report Date (Conformed period of report)
• 2024-04-26 — Filed As Of Date (Filed as of date)
• 2024-06-30 — Fiscal Year End (Fiscal year end)

Key Players & Entities

• RESMED INC (company) — Filer name
• 9001 SPECTRUM CENTER BLVD. (company) — Business address street
• SAN DIEGO (company) — Business address city
• CA (company) — Business address state
• 92123 (company) — Business address zip

FAQ

Industry Context

ResMed operates in the medical device industry, specifically focusing on sleep and respiratory care solutions, and also provides software-as-a-service offerings.

Regulatory Implications

The company is subject to standard SEC reporting requirements for public companies, including the filing of quarterly (10-Q) and annual (10-K) reports.

What Investors Should Do

1. Review the detailed financial statements for revenue, net income, and other key performance indicators.
2. Analyze segment performance for Sleep and Respiratory and Software as a Service to identify growth drivers and potential challenges.
3. Compare current quarter results with historical data and analyst expectations.

Key Dates

• 2024-03-31: Quarterly Period End — End of the reporting period for the 10-Q filing.
• 2024-04-26: Filing Date — Date the 10-Q report was officially filed with the SEC.

Year-Over-Year Comparison

This filing represents the Q3 FY2024 results, providing updated financial data compared to previous quarters and the prior fiscal year.

Key Financial Figures

• $0.004 — ich registered Common Stock, par value $0.004 per share RMD New York Stock Exchange

Filing Documents

• rmd-20240331.htm (10-Q) — 1496KB
• rmd-20240331xex311.htm (EX-31.1) — 10KB
• rmd-20240331xex312.htm (EX-31.2) — 10KB
• rmd-20240331xex32.htm (EX-32) — 10KB
• 0000943819-24-000008.txt (&nbsp;) — 6876KB
• rmd-20240331.xsd (EX-101.SCH) — 43KB
• rmd-20240331_cal.xml (EX-101.CAL) — 70KB
• rmd-20240331_def.xml (EX-101.DEF) — 184KB
• rmd-20240331_lab.xml (EX-101.LAB) — 548KB
• rmd-20240331_pre.xml (EX-101.PRE) — 382KB
• rmd-20240331_htm.xml (XML) — 1015KB

Financial Statements

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 24 Item 3

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 36 Item 4

Controls and Procedures

Controls and Procedures 39 Part II Other Information 40 Item 1

Legal Proceedings

Legal Proceedings 40 Item 1A

Risk Factors

Risk Factors 40 Item 2 Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities 40 Item 3 Defaults Upon Senior Securities 40 Item 4 Mine Safety Disclosures 40 Item 5 Other Information 40 Item 6 Exhibits 42

Signatures

Signatures 43 2 Table of Contents

– FINANCIAL INFORMATION Item 1

PART I – FINANCIAL INFORMATION Item 1

Financial Statements

Item 1. Financial Statements RESMED INC. AND SUBSIDIARIES Condensed Consolidated Balance Sheets (Unaudited) (In US$ and in thousands, except share and per share data) March 31, 2024 June 30, 2023 Assets Current assets: Cash and cash equivalents $ 237,910 $ 227,891 Accounts receivable, net of allowances of $ 19,810 and $ 23,603 at March 31, 2024 and June 30, 2023, respectively 779,265 704,909 Inventories (note 3) 829,458 998,012 Prepaid expenses and other current assets (note 3) 504,663 437,018 Total current assets 2,351,296 2,367,830 Non-current assets: Property, plant and equipment, net (note 3) 539,743 537,856 Operating lease right-of-use assets 147,075 127,955 Goodwill (note 4) 2,835,993 2,770,299 Other intangible assets, net (note 3) 501,024 552,341 Deferred income taxes 162,106 132,974 Prepaid taxes and other non-current assets 277,325 262,453 Total non-current assets 4,463,266 4,383,878 Total assets $ 6,814,562 $ 6,751,708 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 177,445 $ 150,756 Accrued expenses 356,076 365,660 Operating lease liabilities, current 24,182 21,919 Deferred revenue 150,753 138,072 Income taxes payable 54,671 72,224 Short-term debt, net (note 7) 9,903 9,902 Total current liabilities 773,030 758,533 Non-current liabilities: Deferred revenue 131,981 119,186 Deferred income taxes 86,564 90,650 Operating lease liabilities, non-current 136,313 116,853 Other long-term liabilities 47,550 68,166 Long-term debt, net (note 7) 997,047 1,431,234 Long-term income taxes payable 12,157 37,183 Total non-current liabilities 1,411,612 1,863,272 Total liabilities 2,184,642 2,621,805 Commitments and contingencies (note 9) 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; 189,319,079 issued and 146,886,657 outstanding at March 31, 2024 and 188,900,583 issued and 147,064,349

– FINANCIAL INFORMATION Item 1

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 March 31, Nine Months Ended March 31, 2024 2023 2024 2023 Net revenue - Sleep and Respiratory Care products $ 1,049,023 $ 980,116 $ 3,029,915 $ 2,741,541 Net revenue - Software as a Service 147,957 136,782 432,187 359,395 Net revenue 1,196,980 1,116,898 3,462,102 3,100,936 Cost of sales - Sleep and Respiratory Care products 448,434 443,925 1,353,615 1,214,072 Cost of sales - Software as a Service 47,953 46,899 143,735 126,588 Cost of sales (exclusive of amortization shown separately below) 496,387 490,824 1,497,350 1,340,660 Amortization of acquired intangible assets - Sleep and Respiratory Care products 1,054 1,367 4,294 3,939 Amortization of acquired intangible assets - Software as a Service 6,758 6,955 20,682 18,062 Amortization of acquired intangible assets 7,812 8,322 24,976 22,001 Total cost of sales 504,199 499,146 1,522,326 1,362,661 Gross profit 692,781 617,752 1,939,776 1,738,275 Selling, general, and administrative 229,919 228,457 674,948 633,317 Research and development 77,074 76,436 226,664 209,498 Amortization of acquired intangible assets 11,204 12,188 35,259 29,701 Restructuring expenses (note 11) — — 64,228 — Acquisition related expenses — — — 9,157 Total operating expenses 318,197 317,081 1,001,099 881,673 Income from operations 374,584 300,671 938,677 856,602 Other income (loss), net: Interest (expense) income, net ( 11,026 ) ( 14,964 ) ( 39,787 ) ( 32,436 ) Gain (loss) attributable to equity method investments (note 5) 440 ( 183 ) ( 2,716 ) ( 5,037 ) Gain on equity investments (note 5) 13,919 6,418 11,429 11,506 Other, net ( 2,496 ) ( 2,564 ) ( 537 ) ( 5,773 ) Total other income (loss), net 837 ( 11,293 ) ( 31,611 ) ( 31,740 ) Income before income taxes 375,421 289,378 907,066 824,862 Income taxes 74,929 56,878 178,351

– FINANCIAL INFORMATION Item 1

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 March 31, Nine Months Ended March 31, 2024 2023 2024 2023 Net income $ 300,492 $ 232,500 $ 728,715 $ 667,892 Other comprehensive income, net of taxes: Unrealized gains (losses) on designated hedging instruments 77,503 ( 12,496 ) 40,519 ( 32,699 ) Foreign currency translation gain (loss) adjustments ( 134,457 ) 20,787 ( 33,297 ) 83,569 Comprehensive income $ 243,538 $ 240,791 $ 735,937 $ 718,762 See the accompanying notes to the unaudited condensed consolidated financial statements. 5 Table of Contents

– FINANCIAL INFORMATION Item 1

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 Shares Amount Shares Amount Balance, June 30, 2023 188,901 $ 588 $ 1,772,083 ( 41,836 ) $ ( 1,623,256 ) $ 4,253,016 $ ( 272,528 ) $ 4,129,903 Common stock issued on exercise of options 17 — 983 — — — — 983 Common stock issued on vesting of restricted stock units, net of shares withheld for tax 3 — ( 225 ) — — — — ( 225 ) Stock-based compensation costs — — 18,510 — — — — 18,510 Other comprehensive loss — — — — — — ( 47,620 ) ( 47,620 ) Net income — — — — — 219,422 — 219,422 Dividends declared ($ 0.48 per common share) — — — — — ( 70,597 ) — ( 70,597 ) Balance, September 30, 2023 188,921 $ 588 $ 1,791,351 ( 41,836 ) $ ( 1,623,256 ) $ 4,401,841 $ ( 320,148 ) $ 4,250,376 Common stock issued on exercise of options 24 — 1,557 — — — — 1,557 Common stock issued on vesting of restricted stock units, net of shares withheld for tax 163 1 ( 7,798 ) — — — — ( 7,797 ) Common stock issued on employee stock purchase plan 151 1 17,966 — — — — 17,967 Treasury stock purchases — ( 2 ) 2 ( 336 ) ( 50,007 ) — — ( 50,007 ) Stock-based compensation costs — — 19,840 — — — — 19,840 Other comprehensive income — — — — — — 111,796 111,796 Net income — — — — — 208,800 — 208,800 Dividends declared ($ 0.48 per common share) — — — — — ( 70,678 ) — ( 70,678 ) Balance, December 31, 2023 189,259 $ 588 $ 1,822,918 ( 42,172 ) $ ( 1,673,263 ) $ 4,539,963 $ ( 208,352 ) $ 4,481,854 Common stock issued on exercise of options 54 — 4,679 — — — — 4,679 Common stock issued on vesting of restricted stock units, net of shares withheld for tax 6 — ( 314 ) — — — — ( 314 ) Stock-based compensation costs — — 20,442 — — — — 20,442 Common stock issued on employee stock purchase plan — — 213 — — —

– FINANCIAL INFORMATION Item 1

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 Shares Amount Shares Amount Balance, June 30, 2022 188,247 $ 586 $ 1,682,432 ( 41,836 ) $ ( 1,623,256 ) $ 3,613,736 $ ( 312,747 ) $ 3,360,751 Common stock issued on exercise of options 45 — 2,610 — — — — 2,610 Common stock issued on vesting of restricted stock units, net of shares withheld for tax 3 — ( 59 ) — — — — ( 59 ) Stock-based compensation costs — — 16,919 — — — — 16,919 Other comprehensive loss — — — — — — ( 93,381 ) ( 93,381 ) Net income — — — — — 210,478 — 210,478 Dividends declared ($ 0.44 per common share) — — — — — ( 64,431 ) — ( 64,431 ) Balance, September 30, 2022 188,295 $ 586 $ 1,701,902 ( 41,836 ) $ ( 1,623,256 ) $ 3,759,783 $ ( 406,128 ) $ 3,432,887 Common stock issued on exercise of options 77 — 5,120 — — — — 5,120 Common stock issued on vesting of restricted stock units, net of shares withheld for tax 265 1 ( 29,655 ) — — — — ( 29,654 ) Common stock issued on employee stock purchase plan 100 1 16,935 — — — — 16,936 Stock-based compensation costs — — 16,464 — — — — 16,464 Other comprehensive income — — — — — — 135,960 135,960 Net income — — — — — 224,914 — 224,914 Dividends declared ($ 0.44 per common share) — — — — — ( 64,500 ) — ( 64,500 ) Balance, December 31, 2022 188,737 $ 588 $ 1,710,766 ( 41,836 ) $ ( 1,623,256 ) $ 3,920,197 $ ( 270,168 ) $ 3,738,127 Common stock issued on exercise of options 18 — 983 — — — — 983 Common stock issued on vesting of restricted stock units, net of shares withheld for tax 6 — ( 584 ) — — — — ( 584 ) Stock-based compensation costs — — 17,832 — — — — 17,832 Other comprehensive income — — — — — — 8,291 8,291 Net income — — — — — 232,500 — 232,500 Dividends declared ($ 0.44 per common share

– FINANCIAL INFORMATION Item 1

PART I – FINANCIAL INFORMATION Item 1 RESMED INC. AND SUBSIDIARIES Condensed Consolidated Statements of Cash Flows (Unaudited) (In US$ and in thousands) Nine Months Ended March 31, 2024 2023 Cash flows from operating activities: Net income $ 728,715 $ 667,892 Adjustment to reconcile net income to net cash provided by operating activities: Depreciation and amortization 133,192 118,396 Amortization of right-of-use assets 28,262 23,967 Stock-based compensation costs 58,792 51,215 Loss attributable to equity method investments (note 5) 2,716 5,037 Gain on equity investments (note 5) ( 11,429 ) ( 11,506 ) Non-cash restructuring expenses (note 11) 33,239 — Changes in operating assets and liabilities: Accounts receivable ( 76,755 ) ( 88,452 ) Inventories 163,294 ( 255,091 ) Prepaid expenses, net deferred income taxes and other current assets ( 98,976 ) ( 86,607 ) Accounts payable, accrued expenses, income taxes payable and other 96 31,012 Net cash provided by operating activities 961,146 455,863 Cash flows from investing activities: Purchases of property, plant and equipment ( 74,579 ) ( 85,223 ) Patent registration and acquisition costs ( 13,954 ) ( 10,043 ) Business acquisitions, net of cash acquired ( 113,767 ) ( 1,011,225 ) Purchases of investments (note 5) ( 9,692 ) ( 29,729 ) Proceeds from exits of investments (note 5) 250 3,937 Proceeds / (payments) on maturity of foreign currency contracts ( 11,533 ) 18,961 Net cash used in investing activities ( 223,275 ) ( 1,113,322 ) Cash flows from financing activities: Proceeds from issuance of common stock, net 25,399 25,649 Taxes paid related to net share settlement of equity awards ( 8,336 ) ( 30,297 ) Purchases of treasury stock ( 100,007 ) — Payments of business combination contingent consideration ( 1,293 ) ( 316 ) Proceeds from borrowings, net of borrowing costs 105,000 1,070,000 Repayment of borrowings ( 535,000 ) ( 260,000 ) Dividends paid ( 211,767 ) ( 193,571 ) Net cash (used

– FINANCIAL INFORMATION Item 1

PART I – FINANCIAL INFORMATION Item 1 RESMED INC. AND SUBSIDIARIES Notes to the Condensed Consolidated Financial Statements (Unaudited) (1) Summary of Significant Accounting Policies Organization and Basis of Presentation ResMed Inc. (referred to herein as "we", "us", "our" or the "Company") is a Delaware corporation formed in March 1994 as a holding company for the ResMed Group. Through our subsidiaries, we design, manufacture and market equipment for the diagnosis and treatment of sleep-disordered breathing and other respiratory disorders, including obstructive sleep apnea. Our manufacturing operations are located in Australia, Singapore, Malaysia, France, China and the United States. Major distribution and sales sites are located in the United States, Germany, France, the United Kingdom, Switzerland, Australia, Japan, China, Finland, Norway and Sweden. We also operate a Software as a Service ("SaaS") business in the United States and Germany that includes out-of-hospital software platforms designed to support the professionals and caregivers who help people stay healthy in the home or care setting of their choice. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") for interim financial information and with the instructions to Form 10-Q and the rules of the U.S. Securities and Exchange Commission ("SEC"). Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all necessary adjustments, which consisted only of normal recurring items, have been included in the accompanying financial statements to present fairly the results of the interim periods. The results of operations for the interim periods presented are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2024. The condensed consolidated f

– FINANCIAL INFORMATION Item 1

PART I – FINANCIAL INFORMATION Item 1 RESMED INC. AND SUBSIDIARIES Notes to the Condensed Consolidated Financial Statements (Unaudited) Disaggregation of revenue The following table summarizes our net revenue disaggregated by segment, product and region (in thousands): Three Months Ended March 31, Nine Months Ended March 31, 2024 2023 2024 2023 U.S., Canada and Latin America Devices $ 399,281 $ 372,071 $ 1,116,513 $ 1,057,141 Masks and other 288,191 257,070 878,647 765,364 Total U.S., Canada and Latin America $ 687,472 $ 629,141 $ 1,995,160 $ 1,822,505 Combined Europe, Asia and other markets Devices $ 238,919 $ 235,818 $ 692,411 $ 611,123 Masks and other 122,632 115,157 342,344 307,913 Total Combined Europe, Asia and other markets $ 361,551 $ 350,975 $ 1,034,755 $ 919,036 Global revenue Total Devices $ 638,200 $ 607,889 $ 1,808,924 $ 1,668,264 Total Masks and other 410,823 372,227 1,220,991 1,073,277 Total Sleep and Respiratory Care $ 1,049,023 $ 980,116 $ 3,029,915 $ 2,741,541 Software as a Service 147,957 136,782 432,187 359,395 Total $ 1,196,980 $ 1,116,898 $ 3,462,102 $ 3,100,936 Performance obligations and contract balances Revenue is recognized when performance obligations under the terms of a contract with a customer are satisfied; generally, this occurs with the transfer of risk and/or control of our products at a point in time. For products in our Sleep and Respiratory Care business, we transfer control and recognize a sale when products are shipped to the customer in accordance with the contractual shipping terms. For our SaaS business, revenue associated with cloud-hosted services are recognized as they are provided. We defer the recognition of a portion of the consideration received when performance obligations are not yet satisfied. Consideration received from customers in advance of revenue recognition is classified as deferred revenue. Performance obligations resulting in deferred revenue in our Sleep and Respiratory Ca

– FINANCIAL INFORMATION Item 1

PART I – FINANCIAL INFORMATION Item 1 RESMED INC. AND SUBSIDIARIES Notes to the Condensed Consolidated Financial Statements (Unaudited) customers. When we give customers the right to return eligible products and receive credit, returns are estimated based on an analysis of our historical experience. However, returns of products, excluding warranty-related returns, have historically been infrequent and insignificant. We adjust the estimate of revenue at the earlier of when the most likely amount of consideration can be estimated, the amount expected to be received changes, or when the consideration becomes fixed. We offer our Sleep and Respiratory Care customers cash or product rebates based on volume or sales targets measured over quarterly or annual periods. We estimate rebates based on each customer's expected achievement of its targets. In accounting for these rebate programs, we reduce revenue ratably as sales occur over the rebate period by the expected value of the rebates to be returned to the customer. Rebates measured over a quarterly period are updated based on actual sales results and, therefore, no estimation is required to determine the reduction to revenue. For rebates measured over annual periods, we update our estimates each quarter based on actual sales results and updated forecasts for the remaining rebate periods. We participate in programs where we issue credits to our Sleep and Respiratory Care distributors when they are required to sell our products below negotiated list prices if we have preexisting contracts with the distributors' customers. We reduce revenue for future credits at the time of sale to the distributor, which we estimate based on historical experience using the expected value method. We also offer discounts to both our Sleep and Respiratory Care as well as our SaaS customers as part of normal business practice and these are deducted from revenue when the sale occurs. When Sleep and Respiratory Care or SaaS contracts ha

– FINANCIAL INFORMATION Item 1

PART I – FINANCIAL INFORMATION Item 1 RESMED INC. AND

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