ResMed Inc. (RMD) has reported a 3.27 percent fall in profit for the quarter ended Mar. 31, 2017. The company has earned $87.82 million, or $0.62 a share in the quarter, compared with $90.79 million, or $0.64 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $100.74 million, or $0.71 a share compared with $97.76 million or $0.69 a share, a year ago. Revenue during the quarter grew 13.29 percent to $514.20 million from $453.88 million in the previous year period. Gross margin for the quarter expanded 103 basis points over the previous year period to 58.29 percent. Total expenses were 79.11 percent of quarterly revenues, up from 77.02 percent for the same period last year. That has resulted in a contraction of 210 basis points in operating margin to 20.89 percent.
Operating income for the quarter was $107.40 million, compared with $104.31 million in the previous year period.
However, the adjusted operating income for the quarter stood at $126.72 million compared to $112.42 million in the prior year period. At the same time, adjusted operating margin contracted 12 basis points in the quarter to 24.64 percent from 24.77 percent in the last year period.
"We had solid double-digit constant currency revenue growth in Q3, led by our Brightree software solutions as well as mask and device sales," said Mick Farrell, ResMed’s chief executive officer. "This quarter we saw strong demand for our new AirFit 20 range of masks. We also made significant progress on software innovation with the launch of enhanced integration capabilities with Brightree and our AirSolutions cloud-based software platform. In our current quarter, we are launching our latest market-leading innovation: the ResMed AirMini ��" the world’s smallest CPAP."
Operating cash flow drops significantly
ResMed Inc. has generated cash of $273.74 million from operating activities during the nine month period, down 32.41 percent or $131.23 million, when compared with the last year period. The company has spent $50.61 million cash to meet investing activities during the nine month period as against cash outgo of $307.60 million in the last year period.
The company has spent $140.97 million cash to carry out financing activities during the nine month period as against cash outgo of $95.47 million in the last year period.
Cash and cash equivalents stood at $827.31 million as on Mar. 31, 2017, up 15.14 percent or $108.81 million from $718.50 million on Mar. 31, 2016.
Working capital increases
ResMed Inc. has recorded an increase in the working capital over the last year. It stood at $1,269.08 million as at Mar. 31, 2017, up 13.96 percent or $155.50 million from $1,113.59 million on Mar. 31, 2016. Current ratio was at 4.77 as on Mar. 31, 2017, down from 4.89 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 88 days for the quarter from 145 days for the last year period. Days sales outstanding went down to 65 days for the quarter compared with 69 days for the same period last year.
Days inventory outstanding has decreased to 55 days for the quarter compared with 110 days for the previous year period. At the same time, days payable outstanding went down to 32 days for the quarter from 34 for the same period last year.
Debt increases substantially
ResMed Inc. has witnessed an increase in total debt over the last one year. It stood at $1,168.35 million as on Mar. 31, 2017, up 168.21 percent or $732.74 million from $435.61 million on Mar. 31, 2016. Resmed has witnessed an increase in long-term debt over the last one year. It stood at $1,168.35 million as on Mar. 31, 2017, up 168.21 percent or $732.74 million from $435.61 million on Mar. 31, 2016. Total debt was 34.14 percent of total assets as on Mar. 31, 2017, compared with 17.82 percent on Mar. 31, 2016. Debt to equity ratio was at 0.63 as on Mar. 31, 2017, up from 0.26 as on Mar. 31, 2016. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
