Item 5. Market for Registrant’s Common Equity
ITEM 5 MARKET FOR REGISTRANT’S COMMON EQUITY , RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
Our common stock is traded on the NYSE under the symbol “RMD”. As of July 31, 2021, there were 28 holders of record of our common stock, although the actual number of stockholders of our common stock is greater than this number of holders of record and many of these holders of record own shares as nominees on behalf of other beneficial owners.
Securities Authorized for Issuance Under Equity Compensation Plans
The information included under Item 12 of Part III of this Report, “Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters,” is hereby incorporated by reference into this Item 5 of Part II of this Report.
Purchases of Equity Securities
On February 21, 2014, our board of directors approved our current share repurchase program, authorizing us to acquire up to an aggregate of 20.0 million shares of our common stock. The program allows us to repurchase shares of our common stock from time to time for cash in the open market, or in negotiated or block transactions, as market and business conditions warrant and subject to applicable legal requirements. There is no expiration date for this program, and the program may be accelerated, suspended, delayed or discontinued at any time at the discretion of our board of directors. All share repurchases after February 21, 2014 have been executed under this program.
In fiscal year 2019, we temporarily suspended our share repurchase program due to recent acquisitions, and more recently, as a response to the COVID-19 pandemic. As a result, we did not repurchase any shares during the twelve months ended June 30, 2021. However, there is no expiration date for this program, and we may, at any time, elect to resume the share repurchase program as the circumstances allow. Since the inception of the share buyback programs, we have repurchased 41.8 million shares at a total cost of $1.6 billion. At June 30, 2021, 12.9 million additional shares can be repurchased under the approved share repurchase program.
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Table of Contents
PART II
Item 5
RESMED INC. AND SUBSIDIARIES
PERFORMANCE GRAPH
This performance graph is furnished and shall not be deemed “filed” with the SEC or subject to Section 18 of the Exchange Act, nor shall it be deemed incorporated by reference in any of our filings under the Securities Act of 1933, as amended.
The following graph compares the cumulative total stockholders return on our common stock from June 30, 2016 through June 30, 2021, with the comparable cumulative return of the S&P 500 index, the S&P 500 Health Care index, and the Dow Jones U.S. Medical Devices index. The graph assumes that $100 was invested in our common stock and each index on June 30, 2016. In addition, the graph assumes the reinvestment of all dividends paid. The stock price performance on the following graph is not necessarily indicative of future stock price performance.
The following table shows total indexed return of stock price plus reinvestments of dividends, assuming an initial investment of $100 at June 30, 2016, for the indicated periods.
As of June 30,
Index
2016
2017
2018
2019
2020
2021
ResMed Inc.
100
126
170
203
323
418
S&P 500
100
115
130
140
148
205
S&P 500 Health Care
100
111
116
129
141
177
Dow Jones U.S. Medical Devices
100
123
148
178
195
266
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Table of Contents
PART II
Item 6
RESMED INC. AND SUBSIDIARIES
ITEM 6 SELECTED FINANCIAL DATA
The following table summarizes certain selected consolidated financial data for, and as of the end of, each of the fiscal years in the five-year period ended June 30, 2021. The data set forth below should be read together with Item 7 of Part II of this report, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and Item 8 of Part II of this report, “Consolidated Financial Statements and Supplementary Data”, and related notes included elsewhere in this report. The consolidated statement of income data for the years ended June 30, 2021, 2020 and 2019 and the consolidated balance sheet data as of June 30, 2021 and 2020 are derived from our audited consolidated financial statements included elsewhere in this report. The consolidated statement of income data for the years ended June 30, 2018 and 2017 and the consolidated balance sheet data as of June 30, 2019, 2018 and 2017 are derived from our audited consolidated financial statements not included in this report. Historical results do not necessarily indicate the results to be expected in the future, and the results for the years presented should not be considered to indicate our future results of operations.
Consolidated Statement of Income Data
Years Ended June 30,
(In thousands, except per share data):
2021
2020
2019
2018
2017
Net revenue
3,196,825
2,957,013
2,606,572
2,340,196
2,066,737
Cost of sales (exclusive of amortization shown separately below)
1,312,598
1,189,624
1,069,987
978,032
864,992
Amortization of acquired intangible assets
45,127
49,603
42,514
27,266
29,477
Total cost of sales
1,357,725
1,239,227
1,112,501
1,005,298
894,469
Gross profit
1,839,100
1,717,786
1,494,071
1,334,898
1,172,268
Selling, general and administrative expenses
670,387
676,689
645,010
600,369
553,968
Research and development expenses
225,284
201,946
180,651
155,149
144,467
Amortization of acquired intangible assets
31,078
30,092
32,424
19,117
17,101
Restructuring expenses
8,673
-
9,401
18,432
12,358
Litigation settlement expenses
-
(600)
41,199
-
8,500
Acquisition related expenses
-
-
6,123
-
10,076
Total operating expenses
935,422
908,127
914,808
793,067
746,470
Income from operations
903,678
809,659
579,263
541,831
425,798
Other income:
Interest income (expense), net
(23,627)
(39,356)
(33,857)
(11,977)
(11,151)
Loss attributable to equity method investments
(11,205)
(25,058)
(15,833)
-
-
Other, net
14,816
(12,157)
(10,726)
(8,542)
4,096
Total other income (loss), net
(20,016)
(76,571)
(60,416)
(20,519)
(7,055)
Income before income taxes
883,662
733,088
518,847
521,312
418,743
Income taxes
409,157
111,414
114,255
205,724
76,459
Net income
$
474,505
$
621,674
$
404,592
$
315,588
$
342,284
Basic earnings per share
$
3.27
$
4.31
$
2.83
$
2.21
$
2.42
Diluted earnings per share
$
3.24
$
4.27
$
2.80
$
2.19
$
2.40
Dividends per share
$
1.56
$
1.56
$
1.48
$
1.40
$
1.32
Weighted average:
Basic shares outstanding
145,313
144,338
143,111
142,764
141,360
Diluted shares outstanding
146,451
145,652
144,484
143,987
142,453
As of June 30,
Consolidated Balance Sheet Data (In thousands):
2021
2020
2019
2018
2017
Working capital
$
662,991
$
920,698
$
589,375
$
554,468
$
1,283,877
Total assets
4,728,125
4,587,376
4,107,682
3,063,923
3,468,487
Long-term debt, less current maturities
643,351
1,164,133
1,258,861
269,988
1,078,611
Total stockholders’ equity
$
2,885,679
$
2,497,027
$
2,072,193
$
2,058,980
$
1,960,266
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Table of Contents
PART II
Item 7
RESMED INC. AND SUBSIDIARIES
Management’s Discussion and Analysis of Financial Condition and Results of Operations