MARLBOROUGH, Mass., July 27,
2023 /PRNewswire/ -- Boston Scientific Corporation
(NYSE: BSX) generated net sales of $3.599 billion during the second quarter of 2023,
growing 11.0 percent on a reported basis, 12.0 percent on an
operational1 basis and 11.6 percent on an
organic2 basis, all compared to the prior year period.
The company reported GAAP net income attributable to Boston
Scientific common stockholders of $261
million or $0.18 per share
(EPS), compared to $246 million or
$0.17 per share a year ago, and
achieved adjusted3 EPS of $0.53 for the period, compared to $0.44 a year ago.
"We had another quarter of excellent results fueled by our
innovative portfolio, strong commercial execution and the high
performance of our global team," said Mike
Mahoney, chairman and chief executive officer, Boston
Scientific. "We are excited about our long-term outlook and robust
pipeline of unique innovations to address unmet patient needs."
Second quarter financial results and recent
developments:
- Reported net sales of $3.599
billion, representing an increase of 11.0 percent on a
reported basis, compared to the company's guidance range of 6.5 to
8.5 percent; 12.0 percent on an operational basis; and 11.6 percent
on an organic basis, compared to the company's guidance range of 7
to 9 percent, all compared to the prior year period.
- Reported GAAP net income attributable to Boston Scientific
common stockholders of $0.18 per
share, compared to the company's guidance range of $0.23 to $0.27 per
share, and achieved adjusted EPS of $0.53 per share, compared to the guidance range
of $0.48 to $0.50 per share.
- Achieved the following net sales growth in each reportable
segment, compared to the prior year period:
-
- MedSurg: 9.0 percent reported, 9.6 percent operational and 8.8
percent organic
- Cardiovascular: 12.2 percent reported, 13.4 percent operational
and organic
- Achieved the following net sales growth in each region,
compared to the prior year period:
-
- U.S.: 9.1 percent reported and operational
- EMEA (Europe, Middle East and Africa): 9.6 percent reported and 9.3 percent
operational
- APAC (Asia-Pacific): 18.0
percent reported and 24.5 percent operational
- LACA (Latin America and
Canada): 16.9 percent reported and
17.4 percent operational
- Emerging Markets4: 18.8 percent reported and 24.2
percent operational
- Late-breaking clinical science based on real-world outcomes
from the EU-PORIA registry of the FARAPULSE™ Pulsed Field
Ablation (PFA) System was presented at Heart Rhythm 2023, which
demonstrated strong safety outcomes and high rates of freedom from
recurrence of atrial fibrillation and atrial tachycardia at a
median follow-up of one year.
- Presented results from the FROZEN-AF IDE study of the
POLARx™ Cryoablation System at Heart Rhythm 2023, which met
the safety and effectiveness endpoints of the trial.
- Completed enrollment in the WATCHMAN FLX Pro CT pilot study, a
single-center study using multiple imaging modalities to assess
post-procedural healing in the investigational WATCHMAN FLX™ Pro
Left Atrial Appendage Closure Device for patients with
non-valvular atrial fibrillation.
- Received U.S. FDA 510(k) clearance for the EMBOLD™ Soft and
Packing Coils, which, along with the EMBOLD Fibered Coil,
complete the EMBOLD Detachable Coil System, a peripheral
embolization platform for vessel occlusion designed to simplify
operator workflow and streamline inventory for hospitals.
- Received U.S. FDA 510(k) clearance for the OverStitch™ NXT
System, a next-generation endoscopic suturing system that
enables suture placement and soft tissue approximation during
advanced endoscopic procedures.
- Received U.S. FDA approval for the Vercise™ Neural Navigator
5 Software, which when used with the Vercise Genus™ deep brain
stimulation systems can help provide clinicians with simple and
actionable data for efficient programming in the treatment of
people living with Parkinson's disease or essential tremor.
- Completed the purchase of a minority stake (9.9%) of M.I.Tech
Co., Ltd, a publicly traded, Korea-based medical device
manufacturer and distributor. M.I.Tech is the creator of
HANAROSTENT™ technology, a family of conformable,
non-vascular, self-expanding metal stents, which Boston Scientific
has distributed in Japan since
2015.
- Elected to the company's board of directors Dr. Jessica L. Mega, co-founder of Verily Life
Sciences LLC, and Susan E. Morano,
former vice president of Business Development and Strategic
Operations at Johnson & Johnson MedTech.
1. Operational net
sales growth excludes the impact of foreign currency
fluctuations.
|
2. Organic net sales
growth excludes the impact of foreign currency fluctuations and net
sales attributable to acquisitions and divestitures for which there
are less than a full period of comparable net sales.
|
3. Adjusted EPS
excludes the impacts of certain charges (credits) which may include
amortization expense, goodwill and intangible asset impairment
charges, acquisition/divestiture-related net charges (credits),
investment portfolio gains and losses, restructuring and
restructuring-related net charges (credits), certain
litigation-related net charges (credits), EU MDR implementation
costs, debt extinguishment charges, deferred tax expenses
(benefits) and discrete tax items.
|
4.Periodically, we
assess our list of Emerging Markets countries, and effective
January 1, 2023, modified our list to include all countries except
the United States, Western and Central Europe, Japan, Australia,
New Zealand and Canada. We have revised prior year amounts to
conform to the current year's presentation.
|
Net sales for the second quarter by business and
region:
|
|
|
|
|
Increase/(Decrease)
|
|
|
Three Months
Ended
June
30,
|
|
Reported
Basis
|
|
Impact of
Foreign
Currency
Fluctuations
|
|
Operational
Basis
|
|
Impact of
Recent
Acquisitions /
Divestitures
|
|
Organic
Basis
|
(in
millions)
|
2023
|
2022
|
|
|
|
|
|
|
Endoscopy
|
$
631
|
$
560
|
|
12.7 %
|
|
0.8 %
|
|
13.6 %
|
|
(1.9) %
|
|
11.6 %
|
|
Urology
|
485
|
450
|
|
7.8 %
|
|
0.6 %
|
|
8.4 %
|
|
— %
|
|
8.4 %
|
|
Neuromodulation
|
244
|
239
|
|
2.5 %
|
|
0.3 %
|
|
2.8 %
|
|
— %
|
|
2.8 %
|
|
MedSurg
|
1,360
|
1,248
|
|
9.0 %
|
|
0.6 %
|
|
9.6 %
|
|
(0.9) %
|
|
8.8 %
|
|
Cardiology
|
1,704
|
1,517
|
|
12.3 %
|
|
1.1 %
|
|
13.4 %
|
|
— %
|
|
13.4 %
|
|
Peripheral
Interventions
|
535
|
478
|
|
11.9 %
|
|
1.6 %
|
|
13.5 %
|
|
— %
|
|
13.5 %
|
|
Cardiovascular
|
2,239
|
1,996
|
|
12.2 %
|
|
1.2 %
|
|
13.4 %
|
|
— %
|
|
13.4 %
|
Net
Sales
|
$
3,599
|
$
3,244
|
|
11.0 %
|
|
1.0 %
|
|
12.0 %
|
|
(0.3) %
|
|
11.6 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase/(Decrease)
|
|
|
|
|
|
|
Three Months
Ended
June 30,
|
|
Reported
Basis
|
|
Impact of
Foreign
Currency
Fluctuations
|
|
Operational
Basis
|
|
|
|
|
(in
millions)
|
2023
|
2022
|
|
|
|
|
U.S.
|
$
2,110
|
$
1,933
|
|
9.1 %
|
|
— %
|
|
9.1 %
|
|
|
|
|
|
EMEA
|
723
|
660
|
|
9.6 %
|
|
(0.3) %
|
|
9.3 %
|
|
|
|
|
|
APAC
|
626
|
530
|
|
18.0 %
|
|
6.4 %
|
|
24.5 %
|
|
|
|
|
|
LACA
|
140
|
120
|
|
16.9 %
|
|
0.5 %
|
|
17.4 %
|
|
|
|
|
|
Net
Sales
|
$
3,599
|
$
3,244
|
|
11.0 %
|
|
1.0 %
|
|
12.0 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Emerging
Markets4
|
$
592
|
$
498
|
|
18.8 %
|
|
5.4 %
|
|
24.2 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts may not add
due to rounding. Growth rates are based on actual, non-rounded
amounts and may not recalculate precisely.
|
|
|
|
|
|
|
|
Growth rates that
exclude the impact of foreign currency fluctuations and/or the
impact of acquisitions / divestitures are not prepared in
accordance with U.S. GAAP.
|
Guidance for Full Year and Third Quarter 2023
The company now estimates net sales growth for the full year
2023, versus the prior year period, to be approximately 10.5 to
11.5 percent on a reported basis, and approximately 10 to 11
percent on an organic basis. Full year organic net sales guidance
excludes the impact of foreign currency fluctuations and net sales
attributable to acquisitions and divestitures for which there are
less than a full period of comparable net sales. The company now
estimates EPS on a GAAP basis in a range of $0.87 to $0.93 and
estimates adjusted EPS, excluding certain charges (credits), of
$1.96 to $2.00.
The company estimates net sales growth for the third quarter of
2023, versus the prior year period, to be in a range of
approximately 8.5 to 10.5 percent on a reported basis, and
approximately 7 to 9 percent on an organic basis. Third quarter
organic net sales guidance excludes the impact of foreign currency
fluctuations and net sales attributable to acquisitions and
divestitures for which there are less than a full period of
comparable net sales. The company estimates EPS on a GAAP basis in
a range of $0.21 to $0.25 and adjusted EPS, excluding certain charges
(credits), of $0.46 to $0.48.
Conference Call Information
Boston Scientific management will be discussing these results
with analysts on a conference call today at 7:30 a.m. ET. The company will webcast the call
to interested parties through its website:
www.bostonscientific.com. Please see the website for details on how
to access the webcast. The webcast will be available for
approximately one year on the Boston Scientific website.
About Boston Scientific
Boston Scientific transforms
lives through innovative medical solutions that improve the health
of patients around the world. As a global medical technology
leader for more than 40 years, we advance science for life by
providing a broad range of high performance solutions that address
unmet patient needs and reduce the cost of healthcare. For more
information, visit www.bostonscientific.com and connect on Twitter
and Facebook.
Cautionary Statement Regarding Forward-Looking
Statements
This press release contains forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933 and Section 21E of the Securities Exchange Act of
1934. Forward-looking statements may be identified by words
like "anticipate," "expect," "project," "believe," "plan,"
"estimate," "may," "intend" and similar words. These
forward-looking statements are based on our beliefs, assumptions
and estimates using information available to us at the time and are
not intended to be guarantees of future events or
performance. These forward-looking statements include, among
other things, statements regarding our expected net sales;
reported, operational and organic revenue growth rates; reported
and adjusted EPS for the third quarter and full year 2023; our
financial performance; acquisitions; clinical trials; our business
plans and product performance, and new and anticipated product
approvals and launches. If our underlying assumptions turn out
to be incorrect, or if certain risks or uncertainties materialize,
actual results could vary materially from the expectations and
projections expressed or implied by our forward-looking
statements. These factors, in some cases, have affected and in
the future (together with other factors) could affect our ability
to implement our business strategy and may cause actual results to
differ materially from those contemplated by the statements
expressed in this press release. As a result, readers are
cautioned not to place undue reliance on any of our forward-looking
statements.
Risks and uncertainties that may cause such differences include,
among other things: the impact of foreign currency fluctuations;
future U.S. and global economic, political, competitive,
reimbursement and regulatory conditions; manufacturing,
distribution and supply chain disruptions and cost increases;
disruptions caused by cybersecurity events; disruptions caused by
extreme weather or other climate change-related events; disruptions
caused by the COVID-19 pandemic on our operations and financial
results; labor shortages and increases in labor costs; new product
introductions; expected procedural volumes; the closing and
integration of acquisitions; demographic trends; intellectual
property; litigation; financial market conditions; the execution
and effect of our business strategy, including our cost-savings and
growth initiatives; and future business decisions made by us and
our competitors. New risks and uncertainties may arise from time to
time and are difficult to predict accurately and many of them are
beyond our control. For a further list and description of these and
other important risks and uncertainties that may affect our future
operations, see Part I, Item 1A - Risk Factors in our most recent
Annual Report on Form 10-K filed with the Securities and Exchange
Commission, which we may update in Part II, Item 1A - Risk Factors
in Quarterly Reports on Form 10-Q we have filed or will file
hereafter. We disclaim any intention or obligation to publicly
update or revise any forward-looking statements to reflect any
change in our expectations or in events, conditions, or
circumstances on which those expectations may be based, or that may
affect the likelihood that actual results will differ from those
contained in the forward-looking statements. This cautionary
statement is applicable to all forward-looking statements contained
in this press release.
Note: Amounts reported in millions within this press
release are computed based on the amounts in thousands. As a
result, the sum of the components reported in millions may not
equal the total amount reported in millions due to rounding.
Certain columns and rows within tables may not add due to the use
of rounded numbers. Percentages presented are calculated from the
underlying numbers in dollars.
Use of Non-GAAP Financial Information
A reconciliation
of the company's non-GAAP financial measures to the corresponding
GAAP measures, and an explanation of the company's use of these
non-GAAP financial measures, is included in the exhibits attached
to this press release.
CONTACT:
|
|
|
|
|
Media:
|
Emily
Anderson
|
|
Investors:
|
Lauren
Tengler
|
|
617-515-2000
(office)
|
|
|
508-683-4479
(office)
|
|
Media
Relations
|
|
|
Investor
Relations
|
|
Boston Scientific
Corporation
|
|
|
Boston Scientific
Corporation
|
|
Emily.Anderson2@bsci.com
|
|
|
BSXInvestorRelations@bsci.com
|
BOSTON SCIENTIFIC
CORPORATION
|
CONSOLIDATED STATEMENTS
OF OPERATIONS
|
(Unaudited)
|
|
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
in millions, except
per share data
|
2023
|
2022
|
|
2023
|
2022
|
|
|
|
|
|
|
Net sales
|
$
3,599
|
$
3,244
|
|
$
6,988
|
$
6,270
|
Cost of products
sold
|
1,058
|
1,011
|
|
2,098
|
1,966
|
Gross profit
|
2,542
|
2,233
|
|
4,891
|
4,304
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
Selling, general and
administrative expenses
|
1,354
|
1,165
|
|
2,570
|
2,225
|
Research and
development expenses
|
359
|
335
|
|
695
|
654
|
Royalty
expense
|
12
|
11
|
|
23
|
23
|
Amortization
expense
|
210
|
204
|
|
412
|
402
|
Intangible asset
impairment charges
|
57
|
7
|
|
57
|
7
|
Contingent
consideration net expense (benefit)
|
19
|
36
|
|
31
|
48
|
Restructuring net
charges (credits)
|
16
|
11
|
|
36
|
14
|
Litigation-related net
charges (credits)
|
—
|
42
|
|
—
|
42
|
|
2,028
|
1,810
|
|
3,825
|
3,415
|
Operating income
(loss)
|
514
|
423
|
|
1,066
|
889
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
Interest
expense
|
(70)
|
(64)
|
|
(135)
|
(343)
|
Other, net
|
(18)
|
(14)
|
|
(61)
|
(46)
|
Income
(loss) before income taxes
|
426
|
345
|
|
870
|
501
|
Income tax expense
(benefit)
|
156
|
85
|
|
287
|
131
|
Net income
(loss)
|
270
|
260
|
|
584
|
370
|
Preferred stock
dividends
|
(9)
|
(14)
|
|
(23)
|
(28)
|
Net income (loss)
attributable to noncontrolling interests
|
—
|
—
|
|
—
|
—
|
Net income (loss)
attributable to Boston Scientific
common stockholders
|
$
261
|
$
246
|
|
$
561
|
$
342
|
|
|
|
|
|
|
Net income (loss)
per common share - basic
|
$
0.18
|
$
0.17
|
|
$
0.39
|
$
0.24
|
Net income (loss)
per common share - diluted
|
$
0.18
|
$
0.17
|
|
$
0.39
|
$
0.24
|
|
|
|
|
|
|
Weighted-average
shares outstanding
|
|
|
|
|
|
Basic
|
1,446.2
|
1,429.7
|
|
1,441.0
|
1,428.8
|
Diluted
|
1,456.2
|
1,437.8
|
|
1,451.1
|
1,438.1
|
BOSTON SCIENTIFIC
CORPORATION
|
NON-GAAP NET INCOME AND
NET INCOME PER SHARE RECONCILIATIONS
|
(Unaudited)
|
|
|
Three Months Ended
June 30, 2023
|
|
(in millions, except
per share data)
|
Gross
Profit
|
Operating
Expenses
|
Operating
Income
(Loss)
|
Other
Income
(Expense)
|
Income
(Loss)
Before
Income
Taxes
|
Net
Income
(Loss)
|
Preferred
Stock
Dividends
|
Net Income
(Loss)
Attributable
to Boston
Scientific
Common
Stockholders
|
Impact
per
Share (1)
|
|
Reported
|
$
2,542
|
$
2,028
|
$
514
|
$
(88)
|
$
426
|
$
270
|
$
(9)
|
$
261
|
$ 0.18
|
|
Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
|
|
|
Amortization
expense
|
—
|
(210)
|
210
|
—
|
210
|
182
|
—
|
182
|
0.12
|
|
Intangible asset
impairment charges
|
—
|
(57)
|
57
|
—
|
57
|
54
|
—
|
54
|
0.04
|
|
Acquisition /
divestiture-related net
charges (credits)
|
16
|
(106)
|
122
|
(4)
|
118
|
175
|
—
|
175
|
0.12
|
|
Restructuring and
restructuring-
related net charges (credits)
|
18
|
(23)
|
42
|
—
|
42
|
35
|
—
|
35
|
0.02
|
|
Investment portfolio
net losses (gains)
|
—
|
—
|
—
|
(2)
|
(2)
|
5
|
—
|
5
|
0.00
|
|
EU MDR implementation
costs
|
14
|
(6)
|
20
|
—
|
20
|
17
|
—
|
17
|
0.01
|
|
Deferred tax expenses
(benefits)
|
—
|
—
|
—
|
—
|
—
|
47
|
—
|
47
|
0.03
|
|
Discrete tax
items
|
—
|
—
|
—
|
—
|
—
|
1
|
—
|
1
|
0.00
|
|
Adjusted
|
$
2,590
|
$
1,626
|
$
964
|
$
(93)
|
$
871
|
$
786
|
$
(9)
|
$
777
|
$ 0.53
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30, 2022
|
|
(in millions, except
per share data)
|
Gross
Profit
|
Operating
Expenses
|
Operating
Income
(Loss)
|
Other
Income
(Expense)
|
Income
(Loss)
Before
Income
Taxes
|
Net
Income
(Loss)
|
Preferred
Stock
Dividends
|
Net Income
(Loss)
Attributable
to Boston
Scientific
Common
Stockholders
|
Impact
per
Share (1)
|
|
Reported
|
$
2,233
|
$
1,810
|
$
423
|
$
(78)
|
$
345
|
$
260
|
$
(14)
|
$
246
|
$ 0.17
|
|
Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
|
|
|
Amortization
expense
|
—
|
(204)
|
204
|
—
|
204
|
175
|
—
|
175
|
0.12
|
|
Intangible asset
impairment charges
|
—
|
(7)
|
7
|
—
|
7
|
7
|
—
|
7
|
0.00
|
|
Acquisition /
divestiture-related net
charges (credits)
|
23
|
(67)
|
91
|
—
|
91
|
95
|
—
|
95
|
0.07
|
|
Restructuring and
restructuring-
related net charges (credits)
|
17
|
(18)
|
35
|
—
|
35
|
30
|
—
|
30
|
0.02
|
|
Litigation-related net
charges
(credits)
|
—
|
(42)
|
42
|
—
|
42
|
33
|
—
|
33
|
0.02
|
|
Investment portfolio
net losses (gains)
|
—
|
—
|
—
|
4
|
4
|
2
|
—
|
2
|
0.00
|
|
EU MDR implementation
costs
|
11
|
(6)
|
17
|
—
|
17
|
14
|
—
|
14
|
0.01
|
|
Debt extinguishment
charges
|
—
|
—
|
—
|
0
|
0
|
0
|
—
|
0
|
0.00
|
|
Deferred tax expenses
(benefits)
|
—
|
—
|
—
|
—
|
—
|
34
|
—
|
34
|
0.02
|
|
Discrete tax
items
|
—
|
—
|
—
|
—
|
—
|
(1)
|
—
|
(1)
|
(0.00)
|
|
Adjusted
|
$
2,284
|
$
1,466
|
$
818
|
$
(74)
|
$
744
|
$
649
|
$
(14)
|
$
635
|
$ 0.44
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) For the
three months ended June 30, 2023 and 2022, the effect of assuming
the conversion of 5.50% Mandatory Convertible Preferred Stock,
Series A (MCPS) into shares of common stock was anti-dilutive, and
therefore excluded from the calculation of EPS. Accordingly, GAAP
net income and adjusted net income were reduced by cumulative
Preferred stock dividends, as presented in our unaudited
consolidated statements of operations, for purposes of calculating
net income available to common stockholders. On June 1, 2023, all
outstanding shares of MCPS automatically converted into shares of
common stock.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
An explanation of
the company's use of these non-GAAP financial measures is provided
at the end of this document.
|
|
BOSTON SCIENTIFIC
CORPORATION
|
NON-GAAP NET INCOME AND
NET INCOME PER SHARE RECONCILIATIONS
|
(Unaudited)
|
|
|
Six Months Ended
June 30, 2023
|
|
in millions, except
per share data
|
Gross
Profit
|
Operating
Expenses
|
Operating
Income
(Loss)
|
Other
Income
(Expense)
|
Income
(Loss)
Before
Income
Taxes
|
Net
Income
(Loss)
|
Preferred
Stock
Dividends
|
Net Income
(Loss)
Attributable
to Boston
Scientific
Common
Stockholders
|
Impact
per
Share (2)
|
|
Reported
|
$
4,891
|
$
3,825
|
$
1,066
|
$
(195)
|
$
870
|
$
584
|
$
(23)
|
$
561
|
$ 0.39
|
|
Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
|
|
|
Amortization
expense
|
—
|
(412)
|
412
|
—
|
412
|
357
|
—
|
357
|
0.25
|
|
Intangible asset
impairment charges
|
—
|
(57)
|
57
|
—
|
57
|
54
|
—
|
54
|
0.04
|
|
Acquisition /
divestiture-related net
charges (credits)
|
27
|
(145)
|
172
|
6
|
178
|
242
|
—
|
242
|
0.17
|
|
Restructuring and
restructuring-
related net charges (credits)
|
35
|
(51)
|
86
|
—
|
86
|
71
|
—
|
71
|
0.05
|
|
Investment portfolio
net losses (gains)
|
—
|
—
|
—
|
19
|
19
|
20
|
—
|
20
|
0.01
|
|
EU MDR implementation
costs
|
25
|
(11)
|
36
|
—
|
36
|
31
|
—
|
31
|
0.02
|
|
Deferred tax expenses
(benefits)
|
—
|
—
|
—
|
—
|
—
|
88
|
—
|
88
|
0.06
|
|
Discrete tax
items
|
—
|
—
|
—
|
—
|
—
|
26
|
—
|
26
|
0.02
|
|
Adjusted
|
$
4,978
|
$
3,148
|
$
1,829
|
$
(171)
|
$
1,659
|
$
1,472
|
$
(23)
|
$
1,449
|
$ 1.00
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30, 2022
|
|
in millions, except
per share data
|
Gross
Profit
|
Operating
Expenses
|
Operating
Income
(Loss)
|
Other
Income
(Expense)
|
Income
(Loss)
Before
Income
Taxes
|
Net
Income
(Loss)
|
Preferred
Stock
Dividends
|
Net Income
(Loss)
Attributable
to Boston
Scientific
Common
Stockholders
|
Impact
per
Share (2)
|
|
Reported
|
$
4,304
|
$
3,415
|
$
889
|
$
(388)
|
$
501
|
$
370
|
$
(28)
|
$
342
|
$ 0.24
|
|
Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
|
|
|
Amortization
expense
|
—
|
(402)
|
402
|
—
|
402
|
345
|
—
|
345
|
0.24
|
|
Intangible asset
impairment charges
|
—
|
(7)
|
7
|
—
|
7
|
7
|
—
|
7
|
0.00
|
|
Acquisition /
divestiture-related net
charges (credits)
|
50
|
(112)
|
163
|
—
|
163
|
167
|
—
|
167
|
0.12
|
|
Restructuring and
restructuring-
related net charges (credits)
|
35
|
(29)
|
64
|
—
|
64
|
55
|
—
|
55
|
0.04
|
|
Litigation-related net
charges
(credits)
|
—
|
(42)
|
42
|
—
|
42
|
33
|
—
|
33
|
0.02
|
|
Investment portfolio
net losses (gains)
|
—
|
—
|
—
|
11
|
11
|
7
|
—
|
7
|
0.00
|
|
EU MDR implementation
costs
|
21
|
(12)
|
33
|
—
|
33
|
28
|
—
|
28
|
0.02
|
|
Debt extinguishment
charges
|
—
|
—
|
—
|
194
|
194
|
149
|
—
|
149
|
0.10
|
|
Deferred tax expenses
(benefits)
|
—
|
—
|
—
|
—
|
—
|
63
|
—
|
63
|
0.04
|
|
Discrete tax
items
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
0.00
|
|
Adjusted
|
$
4,411
|
$
2,811
|
$
1,599
|
$
(183)
|
$
1,416
|
$
1,224
|
$
(28)
|
$
1,197
|
$ 0.83
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) For the six months
ended June 30, 2023 and 2022, the effect of assuming the conversion
of MCPS into shares of common stock was anti-dilutive, and
therefore excluded from the calculation of EPS. Accordingly, GAAP
net income and adjusted net income were reduced by cumulative
Preferred stock dividends, as presented in our unaudited
consolidated statements of operations, for purposes of calculating
net income available to common stockholders. On June 1, 2023,
all outstanding shares of MCPS automatically converted into shares
of common stock.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
An explanation of
the company's use of these non-GAAP financial measures is provided
at the end of this document.
|
|
BOSTON
SCIENTIFIC CORPORATION
Q3 and FY 2023 GUIDANCE
RECONCILIATIONS
(Unaudited)
Net Sales
|
Q3 2023
Estimate
|
|
Full Year 2023
Estimate
|
|
(Low)
|
(High)
|
|
(Low)
|
(High)
|
Reported
growth
|
8.5 %
|
10.5 %
|
|
10.5 %
|
11.5 %
|
Impact of foreign
currency fluctuations
|
(0.5) %
|
(0.5) %
|
|
0.5 %
|
0.5 %
|
Operational
growth
|
8.0 %
|
10.0 %
|
|
11.0 %
|
12.0 %
|
Impact of acquisitions
/ divestitures
|
(1.0) %
|
(1.0) %
|
|
(1.0) %
|
(1.0) %
|
Organic
growth
|
7.0 %
|
9.0 %
|
|
10.0 %
|
11.0 %
|
Earnings per Share
|
Q3 2023
Estimate
|
|
Full Year 2023
Estimate
|
|
(Low)
|
(High)
|
|
(Low)
|
(High)
|
GAAP
results
|
$
0.21
|
$
0.25
|
|
$
0.87
|
$
0.93
|
|
|
|
|
|
|
Amortization
expense
|
0.12
|
0.12
|
|
0.49
|
0.49
|
Intangible asset
impairment charges
|
—
|
—
|
|
0.04
|
0.04
|
Acquisition /
divestiture-related net charges (credits)
|
0.04
|
0.03
|
|
0.22
|
0.21
|
Restructuring and
restructuring-related net charges (credits)
|
0.05
|
0.04
|
|
0.15
|
0.14
|
Other
adjustments
|
0.04
|
0.04
|
|
0.20
|
0.20
|
Adjusted
results
|
$
0.46
|
$
0.48
|
|
$
1.96
|
$
2.00
|
Use of Non-GAAP Financial Measures
To supplement our unaudited consolidated financial statements
presented on a GAAP basis, we disclose certain non-GAAP financial
measures, including adjusted net income (loss), adjusted net income
(loss) attributable to Boston Scientific common stockholders and
adjusted net income (loss) per share (EPS) that exclude certain
charges (credits); operational net sales, which exclude the impact
of foreign currency fluctuations; and organic net sales, which
exclude the impact of foreign currency fluctuations as well as the
impact of acquisitions and divestitures with less than a full
period of comparable net sales. These non-GAAP financial measures
are not in accordance with generally accepted accounting principles
in the United States and should
not be considered in isolation from or as a replacement for the
most directly comparable GAAP financial measures. Further, other
companies may calculate these non-GAAP financial measures
differently than we do, which may limit the usefulness of those
measures for comparative purposes.
To calculate adjusted net income (loss), adjusted net income
(loss) attributable to Boston Scientific common stockholders and
adjusted net income (loss) per share we exclude certain charges
(credits) from GAAP net income and GAAP net income attributable to
Boston Scientific common stockholders, which include amortization
expense, goodwill and intangible asset impairment charges,
acquisition/divestiture-related net charges (credits), investment
portfolio gains and losses, restructuring and restructuring-related
net charges (credits), certain litigation-related net charges
(credits), EU MDR implementation costs, debt extinguishment
charges, deferred tax expenses (benefits) and discrete tax items.
Amounts are presented after-tax using the company's effective tax
rate, unless the amount is a significant unusual or infrequently
occurring item in accordance with Financial Accounting Standards
Board Accounting Standards Codification Topic 740-270-30, "General
Methodology and Use of Estimated Annual Effective Tax Rate." Please
refer to Part II, Item 7. Management's Discussion and Analysis of
Financial Condition and Results of Operations in our most recent
Annual Report filed on Form 10-K filed with the Securities and
Exchange Commission or Part I, Item 2. Management's Discussion and
Analysis of Financial Condition and Results of Operations in any
Quarterly Report on Form 10-Q that we file thereafter for an
explanation of each of these adjustments and the reasons for
excluding each item.
The GAAP financial measures most directly comparable to adjusted
net income (loss), adjusted net income (loss) attributable to
Boston Scientific common stockholders and adjusted net income
(loss) per share are GAAP net income (loss), GAAP net income (loss)
attributable to Boston Scientific common stockholders and GAAP net
income (loss) per common share - diluted, respectively.
To calculate operational net sales growth rates, which exclude
the impact of foreign currency fluctuations, we convert actual net
sales from local currency to U.S. dollars using constant foreign
currency exchange rates in the current and prior periods. To
calculate organic net sales growth rates, we also remove the impact
of acquisitions and divestitures with less than a full period of
comparable net sales. The GAAP financial measure most directly
comparable to operational net sales and organic net sales is net
sales on a GAAP basis.
Reconciliations of each of these non-GAAP financial measures to
the corresponding GAAP financial measure are included in the
accompanying schedules.
Management uses these supplemental non-GAAP financial measures
to evaluate performance period over period, to analyze the
underlying trends in our business, to assess our performance
relative to our competitors and to establish operational goals and
forecasts that are used in allocating resources. In addition,
management uses these non-GAAP financial measures to further its
understanding of the performance of our operating segments. The
adjustments excluded from our non-GAAP financial measures are
consistent with those excluded from our operating segments'
measures of net sales and profit or loss. These adjustments are
excluded from the segment measures reported to our chief operating
decision maker that are used to make operating decisions and assess
performance.
We believe that presenting adjusted net income (loss), adjusted
net income (loss) attributable to Boston Scientific common
stockholders, adjusted net income (loss) per share, operational net
sales growth rates and organic net sales growth rates, in addition
to the corresponding GAAP financial measures, provides investors
greater transparency to the information used by management for its
operational decision-making and allows investors to see our results
"through the eyes" of management. We further believe that providing
this information assists our investors in understanding our
operating performance and the methodology used by management to
evaluate and measure such performance.
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SOURCE Boston Scientific Corporation