ResMed(RMD)2025-01-31 00:08Revenue and Income - Net revenue for Sleep and Breathing Health products reached $1,125,593 thousand in Q2 2024, a 10.6% increase from $1,017,855 thousand in Q2 2023[11] - Total net revenue for the six months ended December 31, 2024, was $2,506,598 thousand, up 10.7% from $2,265,122 thousand in the same period last year[11] - The company reported a net income of $344,622 thousand for Q2 2024, a 64.9% increase from $208,800 thousand in Q2 2023[11] - Net income for the six months ended December 31, 2024, was $655,977 thousand, compared to $428,222 thousand for the same period in 2023, representing a 53% increase[22] - Total revenue for the six months ended December 31, 2024, was $2,506,598 thousand, up from $2,265,122 thousand in 2023, reflecting an 11% growth[31] - Revenue from the Sleep and Breathing Health segment for the six months ended December 31, 2024, was $2,193,330 thousand, compared to $1,980,892 thousand in 2023, indicating a 11% increase[31] - Net revenue for the three months ended December 31, 2024, was $1.3 billion, an increase of 10% compared to the same period in 2023[130] - Net revenue from the Sleep and Breathing Health business for the three months ended December 31, 2024, was $1,125.6 million, an increase of 11% compared to the same period in 2023[134] Earnings and Profitability - Basic earnings per share for Q2 2024 were $2.35, up from $1.42 in Q2 2023, representing a 65.5% increase[11] - Diluted earnings per share for the six months ended December 31, 2024, was $4.45, compared to $2.90 for the same period in 2023, indicating a 53% increase[88] - For the three months ended December 31, 2024, net income was $344,622 thousand, compared to $208,800 thousand for the same period in 2023, representing a year-over-year increase of 65%[88] - Diluted earnings per share for the three months ended December 31, 2024, was $2.34, compared to $1.42 for the same period in 2023[130] - Gross profit for the three months ended December 31, 2024, was $751,275 thousand, compared to $646,934 thousand in Q2 2023, reflecting a 16.1% increase[11] - Gross margin for the three months ended December 31, 2024, was 58.6%, up from 55.6% in the same period in 2023[130] Expenses and Investments - Research and development expenses for the six months ended December 31, 2024, were $160,897 thousand, up from $149,590 thousand in the same period last year, reflecting a 7.5% increase[11] - Research and development investment during the three months ended December 31, 2024, was $81.4 million, representing 6.3% of net revenues[128] - Selling, general, and administrative expenses for the three months ended December 31, 2024, were $241.6 million, an increase of 9% from $222.2 million in the same period of 2023[155] - Selling, general, and administrative expenses for the six months ended December 31, 2024, totaled $480.6 million, an 8% increase from $445.0 million in the prior year[158] Assets and Liabilities - Total assets increased to $7,141,334 thousand as of December 31, 2024, compared to $6,872,394 thousand as of June 30, 2024, marking a 3.9% growth[8] - Total liabilities decreased to $1,888,325 thousand as of December 31, 2024, down from $2,008,351 thousand as of June 30, 2024, a reduction of 5.9%[8] - The company’s total stockholders' equity increased to $5,253,009 thousand as of December 31, 2024, compared to $4,864,043 thousand as of June 30, 2024, a growth of 8.0%[8] - Total inventories as of December 31, 2024, amounted to $882,103 thousand, an increase from $822,250 thousand as of June 30, 2024[55] Cash Flow and Liquidity - Cash and cash equivalents at the end of the period were $521,944 thousand, up from $210,247 thousand at the end of December 2023[22] - The company reported a net cash provided by operating activities of $634,161 thousand for the six months ended December 31, 2024, compared to $559,115 thousand in 2023, a 13% increase[22] - Cash provided by operating activities for the six months ended December 31, 2024, was $634.2 million, an increase of $75.0 million compared to $559.1 million in 2023[194] - Cash used in investing activities decreased to $34.5 million for the six months ended December 31, 2024, from $190.1 million in 2023, a reduction of $155.6 million[196] - Cash used in financing activities was $298.3 million for the six months ended December 31, 2024, down from $390.1 million in 2023, indicating improved cash management[197] - As of December 31, 2024, the company had $1,500.0 million available under the revolving credit facility, contributing to a total liquidity of $2,021.9 million[187] Segment Performance - The company operates in two segments: Sleep and Breathing Health and Residential Care Software, with performance evaluated based on net revenues and income from operations[48] - Residential Care Software segment net revenue for the six months ended December 31, 2024, was $313,268 thousand, up 10.2% from $284,230 thousand in the prior year[53] - Net revenue in the U.S., Canada, and Latin America for the three months ended December 31, 2024, increased to $748.9 million, up 12% from $669.3 million in the same period of 2023[135] Debt and Financing - The total debt as of December 31, 2024, was $672.8 million, down from $707.2 million as of June 30, 2024[72] - The company has a senior unsecured revolving credit facility of $1,500.0 million, with an option to increase it by an additional amount equal to the greater of $1,000.0 million or 1.0 times the EBITDA for the trailing twelve-month measurement period[73] - As of December 31, 2024, the company had $675.0 million outstanding under its Revolving Credit Agreement, Term Credit Agreement, and Senior Notes[83] Legal and Regulatory Matters - The company is involved in ongoing patent litigation, with a significant case against New York University regarding patent infringement, which is expected to be resolved by March 2025[90] - The company has filed for reexamination of U.S. Patent Nos. 11,375,921 and 11,786,680, with the Patent Office ordering reexamination on November 15, 2024, and December 3, 2024, respectively[96] Other Financial Metrics - The effective income tax rate for the three months ended December 31, 2024, was 17.6%, down from 19.5% for the same period in 2023[171] - Total other income for the three months ended December 31, 2024, was $1.1 million, a recovery from a loss of $15.6 million in the same period of 2023[168]