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, 2022, there were 26 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, 2022. 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. June 30, 2022, 12.9 million additional shares can be repurchased under the approved share repurchase program.
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.
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PART II Item 5
RESMED INC. AND SUBSIDIARIES
The following graph compares the cumulative total stockholders return on our common stock from June 30, 2017 through June 30, 2022, 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, 2017. 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, 2017, for the indicated periods.
As of June 30,
Index 2017 2018 2019 2020 2021 2022
ResMed Inc. 100 135 162 257 332 285
S&P 500 100 114 123 130 180 158
S&P 500 Health Care 100 105 117 127 160 163
Dow Jones U.S. Medical Devices 100 121 145 160 219 184
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, 2022. 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, 2022, 2021 and 2020 and the consolidated balance sheet data as of June 30, 2022 and 2021 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, 2019 and 2018 and the consolidated balance sheet data as of June 30, 2020, 2019 and 2018 are derived from our audited consolidated financial
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PART II Item 6
RESMED INC. AND SUBSIDIARIES
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): 2022 2021 2020 2019 2018
Net revenue $ 3,578,127 $ 3,196,825 $ 2,957,013 $ 2,606,572 $ 2,340,196
Cost of sales (exclusive of amortization shown separately below) 1,514,166 1,312,598 1,189,624 1,069,987 978,032
Amortization of acquired intangible assets 39,650 45,127 49,603 42,514 27,266
Total cost of sales 1,553,816 1,357,725 1,239,227 1,112,501 1,005,298
Gross profit 2,024,311 1,839,100 1,717,786 1,494,071 1,334,898
Selling, general and administrative expenses 739,372 670,387 676,689 645,010 600,369
Research and development expenses 253,575 225,284 201,946 180,651 155,149
Amortization of acquired intangible assets 31,078 31,078 30,092 32,424 19,117
Restructuring expenses — 8,673 — 9,401 18,432
Litigation settlement expenses — — (600) 41,199 —
Acquisition related expenses — — — 6,123 —
Total operating expenses 1,024,025 935,422 908,127 914,808 793,067
Income from operations 1,000,286 903,678 809,659 579,263 541,831
Other income:
Interest income (expense), net (22,312) (23,627) (39,356) (33,857) (11,977)
Loss attributable to equity method investments (8,486) (11,205) (25,058) (15,833) —
Other, net (9,005) 14,816 (12,157) (10,726) (8,542)
Total other income (loss), net (39,803) (20,016) (76,571) (60,416) (20,519)
Income before income taxes 960,483 883,662 733,088 518,847 521,312
Income taxes 181,046 409,157 111,414 114,255 205,724
Net income $ 779,437 $ 474,505 $ 621,674 $ 404,592 $ 315,588
Basic earnings per share $ 5.34 $ 3.27 $ 4.31 $ 2.83 $ 2.21
Diluted earnings per share $ 5.30 $ 3.24 $ 4.27 $ 2.80 $ 2.19
Dividends per share $ 1.68 $ 1.56 $ 1.56 $ 1.48 $ 1.40
Weighted average:
Basic shares outstanding 146,066 145,313 144,338 143,111 142,764
Diluted shares outstanding 147,043 146,451 145,652 144,484 143,987
As of June 30,
Consolidated Balance Sheet Data (In thousands): 2022 2021 2020 2019 2018
Working capital $ 1,242,179 $ 662,991 $ 920,698 $ 589,375 $ 554,468
Total assets 5,095,853 4,728,125 4,587,376 4,107,682 3,063,923
Long-term debt, less current maturities 765,325 643,351 1,164,133 1,258,861 269,988
Total stockholders’ equity $ 3,360,751 $ 2,885,679 $ 2,497,027 $ 2,072,193 $ 2,058,980
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PART II Item 7
RESMED INC. AND SUBSIDIARIES
Management’s Discussion and Analysis of Financial Condition and Results of Operations