June 30 1997 1996
____________________________________________________________________________________________
ASSETS
Current Assets
Cash and short-term investments $ 15,706,657 $ 65,255,699
Trade accounts receivable, less allowance for doubtful
accounts of $3,466,000 and $1,200,000 37,138,383 27,883,365
Inventories 33,699,256 17,863,887
Prepaid expenses and other 3,549,850 2,522,327
Deferred income tax benefits 5,008,897 2,457,453
____________________________________________________________________________________________
Total Current Assets 95,103,043 115,982,731
Property, Plant and Equipment
Land 3,327,775 2,771,934
Buildings 12,936,177 8,907,692
Machinery and equipment 19,853,845 17,219,371
Furniture and office equipment 17,059,117 11,642,943
Leasehold improvements 1,236,327 1,068,851
____________________________________________________________________________________________
54,413,241 41,610,791
Less allowances for depreciation and amortization 23,705,759 19,294,440
____________________________________________________________________________________________
30,707,482 22,316,351
Funds held in trust for construction of new facility 1,754,452 746,114
Other Assets 3,837,491 3,210,802
Cost in Excess of Net Assets of Business Acquired 52,829,458 1,690,636
____________________________________________________________________________________________
$184,231,926 $143,946,634
____________________________________________________________________________________________
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable $ 6,425,853 $ 4,178,301
Accrued compensation and related expenses 5,626,830 5,088,077
Accrued expenses 6,898,486 3,801,780
Income taxes 4,410,825 2,907,545
Current portion of long-term obligations 703,211 572,905
____________________________________________________________________________________________
Total Current Liabilities 24,065,205 16,548,608
Long-term Obligations 17,984,933 4,965,871
Minority Interest 604,072 887,320
Commitments
Shareholders' Equity
Common Stock, $.01 par value; authorized 100,000,000 shares
at June 30, 1997 and 40,000,000 shares at June 30, 1996;
issued and outstanding 19,763,057 shares at June 30, 1997
and 19,305,406 shares at June 30, 1996 197,631 193,054
Additional capital 68,351,143 67,105,290
Cumulative effect of foreign currency translations (689,813) - 0 -
Retained earnings 74,601,203 54,285,379
Treasury stock (882,448) (38,888)
_____________________________________________________________________________________________
Total Shareholders' Equity 141,577,716 121,544,835
_____________________________________________________________________________________________
$184,231,926 $143,946,634
_____________________________________________________________________________________________
See notes to consolidated financial
statements.
Consolidated Statements of Operations
Respironics, Inc. and Subsidiaries
Year Ended June 30 1997 1996 1995
________________________________________________________________________________________
Net sales $178,559,736 $125,766,388 $99,450,333
Cost of goods sold 79,554,031 55,248,973 43,077,158
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99,005,705 70,517,415 56,373,175
General and administrative expenses 21,505,558 16,602,072 14,050,071
Sales, marketing and commission expenses 34,368,202 20,844,836 17,696,059
Research and development expenses 10,767,916 9,328,293 7,077,216
Interest expense 615,947 199,926 193,550
Other income (2,039,745) (1,615,320) (1,178,685)
________________________________________________________________________________________
65,217,878 45,359,807 37,838,211
________________________________________________________________________________________
Income Before Income Taxes 33,787,827 25,157,608 18,534,964
Income taxes 13,472,003 9,819,000 6,857,937
________________________________________________________________________________________
Net Income $ 20,315,824 $ 15,338,608 $11,677,027
________________________________________________________________________________________
Earnings per share $ 1.00 $ 0.84 $ 0.67
________________________________________________________________________________________
Weighted average number of shares used
in computing earnings per share $ 20,271,933 $ 18,324,500 $17,532,422
See notes to consolidated financial statements.
Consolidated Statements of Shareholders' Equity
Respironics, Inc. and Subsidiaries
Cumulative
Common Stock Effect of Foreign Treasury Stock
_____________________ Additional Currency Retained _____________________
Shares Amount Capital Translations Earnings Shares Amount Total
______________________________________________________________________________________________________________________________________________________
Balance at June 30, 1994 16,344,690 $163,446 $16,790,919 $ - 0 - $27,269,744 - 0 - $ - 0 - $ 44,224,109
Net income for the year
ended June 30, 1995 - 0 - - 0 - - 0 - - 0 - 11,677,027 - 0 - - 0 - 11,677,027
Shares sold pursuant to
stock option plans 315,001 3,150 1,188,499 - 0 - - 0 - - 0 - - 0 - 1,191,649
Acquisition of a business 85,094 852 1,275,559 - 0 - - 0 - - 0 - - 0 - 1,276,411
______________________________________________________________________________________________________________________________________________________
Balance at June 30, 1995 16,744,785 167,448 19,254,977 - 0 - 38,946,771 - 0 - - 0 - 58,369,196
Net income for the year
ended June 30, 1996 - 0 - - 0 - - 0 - - 0 - 15,338,608 - 0 - - 0 - 15,338,608
Shares sold pursuant to
stock option plans 187,032 1,870 1,018,722 - 0 - - 0 - - 0 - - 0 - 1,020,592
Acquisition of treasury stock - 0 - - 0 - - 0 - - 0 - - 0 - 1,819 (38,888) (38,888)
Net proceeds from shares
sold in public offering 2,373,589 23,736 46,831,591 - 0 - - 0 - - 0 - - 0 - 46,855,327
______________________________________________________________________________________________________________________________________________________
Balance at June 30, 1996 19,305,406 193,054 67,105,290 - 0 - 54,285,379 1,819 (38,888) 121,544,835
Net income for the year
ended June 30, 1997 - 0 - - 0 - - 0 - - 0 - 20,315,824 - 0 - - 0 - 20,315,824
Shares sold pursuant to
stock option plans 457,651 4,577 1,175,479 - 0 - - 0 - - 0 - - 0 - 1,180,056
Acquisition of treasury stock - 0 - - 0 - - 0 - - 0 - - 0 - 46,000 (843,560) (843,560)
Income tax benefit from
exercise of stock options - 0 - - 0 - 70,374 - 0 - - 0 - - 0 - - 0 - 70,374
Translation adjustments - 0 - - 0 - - 0 - (689,813) - 0 - - 0 - - 0 - (689,813)
_______________________________________________________________________________________________________________________________________________________
Balance at June 30, 1997 19,763,057 $197,631 $68,351,143 $(689,813) $74,601,203 47,819 $(882,448) $141,577,716
_______________________________________________________________________________________________________________________________________________________
See notes to consolidated financial statements.
Consolidated Statements of Cash Flows
Respironics, Inc. and Subsidiaries
Year Ended June 30 1997 1996 1995
___________________________________________________________________________________________________
OPERATING ACTIVITIES
Net income $ 20,315,824 $15,338,608 $11,677,027
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 6,902,669 4,008,668 3,831,793
Provision for deferred income taxes (361,924) (256,858) (178,819)
Provision for losses on accounts receivable 250,000 500,000 175,000
Loss on sale of equipment - 0 - - 0 - 35,719
Changes in operating assets and liabilities:
Increase in accounts receivable (173,845) (8,935,178) (4,515,077)
Decrease in refundable income taxes - 0 - - 0 - 1,787,265
Increase in inventories and
prepaid expenses (4,325,801) (5,298,192) (5,770,417)
Increase in other assets (295,295) (542,210) (1,448,295)
(Decrease) increase in accounts payable (5,433,806) (680,253) 1,680,521
(Decrease) increase in accrued
Compensation and related expenses (562,821) 1,260,890 764,557
(Decrease) increase in accrued expenses (1,196,781) 1,107,482 516,442
(Decrease) increase in accrued
income taxes (1,730,096) 1,335,424 912,999
___________________________________________________________________________________________________
Net Cash Provided by Operating Activities 13,388,124 7,838,381 9,468,715
INVESTING ACTIVITIES
Acquisition of businesses, net of cash acquired (58,066,208) - 0 - (745,433)
Purchase of property, plant and equipment (4,930,957) (6,220,314) (6,940,667)
Proceeds from sale of equipment - 0 - - 0 - 5,503
Increase in funds held in trust for
construction of new facility (66,048) (35,185) (30,557)
___________________________________________________________________________________________________
Net Cash Used by Investing Activities (63,063,213) (6,255,499) (7,711,154)
FINANCING ACTIVITIES
Proceeds from long-term obligations 9,000,000 - 0 - 1,132,760
Reduction in long-term obligations (8,997,575) (497,370) (355,920)
Issuance of common stock 1,250,430 47,875,919 1,191,649
Acquisition of treasury stock (843,560) (38,888) - 0 -
(Decrease) increase in minority interest (283,248) 206,252 16,800
___________________________________________________________________________________________________
Net Cash Provided by Financing Activities 126,047 47,545,913 1,985,289
___________________________________________________________________________________________________
(Decrease) Increase in Cash and
Short-Term Investments (49,549,042) 49,128,795 3,742,850
Cash and short-term investments
at beginning of period 65,255,699 16,126,904 12,384,054
___________________________________________________________________________________________________
Cash and Short-Term Investments
at End of Period $ 15,706,657 $65,255,699 $16,126,904
___________________________________________________________________________________________________
See notes to consolidated financial statements.