Corporate & Investor Presentation
Reconciliation of non-GAAP financial measures
The measures "non-GAAP gross profit" and "non-GAAP gross margin" excludes amortization expense from acquired
intangibles related to cost of sales and are reconciled below:
(Unaudited; $ in thousands, except for per share amounts)
Three Months Ended
Six Months Ended
December 31,
2020
December 31,
2019
December 31,
2020
December 31,
2019
Revenue
$
800,011
$
Add back: Deferred revenue fair value adjustment (A)
Non-GAAP Revenue
SA
$
800,011 $
736,157
657
736,814
$ 1,551,955 $ 1,417,213
2,102
$ 1,551,955 $ 1,419,315
GAAP Cost of sales
$
337,528 $
309,027
Less: Amortization of acquired intangibles (A)
(11,164)
(12,052)
$ 650,811
(23,143)
$
598,464
(25,488)
Less: Restructuring - cost of sales (A)
(5,232)
(5,232)
Non-GAAP cost of sales
GAAP gross profit
$
321,132 $
296,975
$
622,436
$
572,976
SA
$
462,483 $
427,130
$
901,144
$
818,749
GAAP gross margin
57.8%
58.0 %
58.1 %
57.8 %
Non-GAAP gross profit
SA
$
478,879
$
439,839
$
929,519
$
Non-GAAP gross margin
59.9 %
59.7 %
59.9 %
846,339
59.6 %
(A) ResMed adjusts for the impact of the amortization of acquired intangibles, restructuring expenses, deferred revenue fair value adjustment, litigation settlement expenses, and the (gain) loss on equity investments from their evaluation of ongoing
operations, and believes that investors benefit from adjusting these items to facilitate a more meaningful evaluation of current operating performance.
ResMed believes that non-GAAP diluted earnings per share is an additional measure of performance that investors can use to compare operating results between reporting periods. ResMed uses non-GAAP information internally in planning, forecasting,
and evaluating the results of operations in the current period and in comparing it to past periods. ResMed believes this information provides investors better insight when evaluating ResMed's performance from core operations and provides consistent
financial reporting. The use of non-GAAP measures is intended to supplement, and not to replace, the presentation of net income and other GAAP measures. Like all non-GAAP measures, non-GAAP earnings are subject to inherent limitations because
they do not include all the expenses that must be included under GAAP.
38
© 2021 ResMed | Corporate & Investor Presentation - updated 28JAN21
ResMedView entire presentation