MARLBOROUGH, Mass.,
April 28, 2021 /PRNewswire/
-- Boston Scientific Corporation (NYSE: BSX) generated net
sales of $2.752 billion during the
first quarter of 2021. This represents growth of 8.2 percent on a
reported basis, 5.6 percent on an operational1 basis and
5.9 percent on an organic2 basis, all compared to the
prior year period. The company reported GAAP net income available
to common stockholders of $327
million or $0.23 per share
(EPS), compared to GAAP net income of $11
million or $0.01 per share a
year ago, and achieved adjusted EPS of $0.37 for the period, compared to $0.28 a year ago.
"We are pleased by the trajectory of our recovery," said
Mike Mahoney, chairman and chief
executive officer, Boston Scientific. "Our global team remains
committed to helping patients and our customers by delivering a
robust portfolio of innovative solutions, and that commitment will
continue to fuel our future growth."
First quarter financial results and recent
developments:
- Reported net sales of $2.752
billion, representing an increase of 8.2 percent on a
reported basis, compared to the company's guidance range of 0
to 6 percent; 5.6 percent on an operational basis; and 5.9 percent
on an organic basis, compared to the company's guidance range
of (3) to 3 percent, all compared to the prior year
period.
- Reported GAAP net income available to common stockholders of
$0.23 per share compared to the
company's guidance range of $0.05 to
$0.11 per share. Achieved adjusted
EPS of $0.37 compared to the guidance
range of $0.28 to $0.34 per share.
- Achieved net sales growth in each reportable
segment4, compared to the prior year period:
-
- MedSurg: 11.1 percent reported, 8.6 percent operational and 9.5
percent organic
- Rhythm and Neuro: 6.8 percent reported, 4.0 percent operational
and 1.6 percent organic
- Cardiovascular: 10.0 percent reported, 7.4 percent operational
and organic
- Achieved the following regional5 net sales growth,
compared to the prior year period:
-
- U.S.: 8.6 percent reported and operational
- EMEA (Europe, Middle East and Africa): 9.4 percent reported and 1.9 percent
operational
- APAC (Asia-Pacific): 15.6
percent reported and 9.1 percent operational
- Emerging Markets3: 16.0 percent reported and 13.2
percent operational
- Received U.S. Food and Drug Administration (FDA) approval for
the TheraSphere™ Y-90 Glass
Microspheres for the treatment of patients with hepatocellular
carcinoma, the most common type of primary liver cancer, and
secured FDA Breakthrough Device designation for TheraSphere
treatment for patients with glioblastoma, a type of brain
cancer.6
- Received approval for the Ranger™ Drug-Coated Balloon
from Japan's Ministry of Health,
Labor and Welfare (MHLW) and initiated a full launch in the
region.
- Launched Vercise Genus™ Deep Brain Stimulation (DBS)
System in the U.S. Additionally, the system is being used with
the world's first 16-channel directional leads—Cartesia™ X and HX
leads—in the eXTend 3D Study in Europe.
- Commenced U.S. launch of the WaveWriter Alpha™ portfolio
of spinal cord stimulator (SCS) systems, consisting of four
full-body MR conditional, Bluetooth-enabled devices, new
FAST paresthesia-free therapy and all supported by
Cognita™ Solutions—a suite of digital tools that helps
physicians and patients navigate the pain management
journey.
- Surpassed 50,000 patients worldwide treated with the
SENTINEL™ Cerebral Protection System, the first and only
FDA-cleared device to protect patients from stroke risk during
transcatheter aortic valve replacement (TAVR) procedures.
- Published positive 12-month results from the PINNACLE FLX
clinical trial in Circulation, demonstrating the next-generation
WATCHMAN FLX™ Left Atrial Appendage Closure (LAAC) Device is
a safe and effective alternative to oral anticoagulation therapy
for stroke risk reduction in patients with non-valvular atrial
fibrillation and increased risk of bleeding. The trial met its
primary safety endpoint with a low adverse event rate of 0.5%, as
well as its primary effectiveness endpoint with a 100% rate of LAA
closure at 12 months.
- Presented five-year outcomes from the EFFORTLESS study, the
largest post-market registry of the Subcutaneous Implantable
Defibrillator (S-ICD) System, further validating the long-term
efficacy of the device. Results demonstrated 98% overall efficacy
over five years, consistent with results of previous S-ICD studies
and comparable to or higher than many large transvenous ICD
studies.
- Received FDA approval to modify the design of the ACURATE IDE
trial—evaluating the ACURATE neo2™ Aortic Valve System—to an
"all-risk" protocol to study patients with severe, symptomatic
aortic stenosis who are at low risk of open-heart surgery, in
addition to those at intermediate, high and extreme risk.
- Initiated the NEwTON AF IDE clinical trial to evaluate the
safety and effectiveness of the INTELLANAV STABLEPOINT™ Ablation
Catheter enabled with DIRECTSENSE™ Technology in
patients with paroxysmal atrial fibrillation.
- Named eighth on the Forbes list of America's Best
Employers for Diversity 2021, based on a survey of 50,000 Americans
working for businesses with at least 1,000 employees.
- Completed the acquisition of Preventice Solutions, Inc., a
privately-held company which offers a full portfolio of mobile
cardiac health solutions and services, for an upfront cash payment
of ~$720 million, with up to an
additional ~$230 million in a
potential commercial milestone payment, given a preexisting 22
percent equity stake.
- Completed the sale of the BTG Specialty Pharmaceuticals
business to Stark International Lux S.A.R.L. and SERB SAS,
affiliates of SERB, for ~$800 million
in cash.
- Announced a definitive agreement with an affiliate of Baring
Private Equity Asia to acquire the global surgical business of
Lumenis LTD., a privately-held company that develops and
commercializes energy-based medical solutions, for an upfront cash
payment of ~$1.07 billion, subject to
customary closing conditions and adjustments.
- Announced plans to host a virtual Investor Day business review
meeting for the investment community on Wednesday, September 22, 2021.
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 from the recent acquisition of Preventice Solutions,
Inc. (Preventice). Organic net sales growth rates also exclude the
intrauterine health franchise, which we divested in Q2 2020 and the
Specialty Pharmaceuticals business, which we divested in Q1
2021.
|
3. We define
Emerging Markets as the 20 countries that we believe have strong
growth potential based on their economic conditions, healthcare
sectors and our global capabilities. Periodically, we assess our
list of Emerging Markets countries, and effective January 1, 2021,
modified our list to include the following countries: Brazil,
Chile, China, Colombia, Czech Republic, India, Indonesia, Malaysia,
Mexico, Philippines, Poland, Russia, Saudi Arabia, Slovakia, South
Africa, South Korea, Taiwan, Thailand, Turkey and Vietnam. We have
revised prior year amounts to conform to the current year's
presentation. The revision had an immaterial impact on previously
reported Emerging Markets net sales.
|
4. We have three
historical reportable segments comprised of Medical Surgical
(MedSurg), Rhythm and Neuro, and Cardiovascular, which represent an
aggregation of our operating segments that generate revenues from
the sale of medical devices (Medical Devices).
|
5. On March 1,
2021, we completed the sale of the Specialty Pharmaceuticals
business. Our consolidated net sales include Specialty
Pharmaceuticals up to the date of the closing of the transaction.
Specialty Pharmaceuticals net sales were substantially U.S. based
and presented as a stand-alone operating segment alongside our
Medical Device Reportable segments.
|
6. Consistent with
Section 515B of the FD&C Act, devices designated as
Breakthrough Devices will receive prioritized review (Section
II.F).
|
Net sales for the first quarter by business and
region:
|
|
|
|
|
Change
|
|
|
Three Months
Ended
March
31,
|
|
Reported
Basis
|
|
Less:
Impact of
Foreign
Currency
Fluctuations
|
|
Operational
Basis
|
|
Less:
Impact of
Recent
Acquisitions /
Divestitures
|
|
Organic
Basis
|
(in
millions)
|
2021
|
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Endoscopy
|
$
|
499
|
|
$
|
442
|
|
|
12.9%
|
|
3.0%
|
|
9.9%
|
|
—%
|
|
9.9%
|
|
Urology
and Pelvic Health
|
361
|
|
332
|
|
|
8.7%
|
|
1.9%
|
|
6.8%
|
|
(2.0)%
|
|
8.8%
|
|
MedSurg
|
860
|
|
774
|
|
|
11.1%
|
|
2.5%
|
|
8.6%
|
|
(0.9)%
|
|
9.5%
|
|
Cardiac
Rhythm Management
|
469
|
|
437
|
|
|
7.4%
|
|
2.9%
|
|
4.4%
|
|
3.9%
|
|
0.5%
|
|
Electrophysiology
|
83
|
|
74
|
|
|
11.9%
|
|
4.2%
|
|
7.7%
|
|
—%
|
|
7.7%
|
|
Neuromodulation
|
198
|
|
191
|
|
|
3.5%
|
|
1.8%
|
|
1.7%
|
|
—%
|
|
1.7%
|
|
Rhythm and
Neuro
|
750
|
|
703
|
|
|
6.8%
|
|
2.8%
|
|
4.0%
|
|
2.4%
|
|
1.6%
|
|
Interventional Cardiology
|
696
|
|
633
|
|
|
9.9%
|
|
2.7%
|
|
7.1%
|
|
—%
|
|
7.1%
|
|
Peripheral Interventions
|
433
|
|
392
|
|
|
10.3%
|
|
2.6%
|
|
7.7%
|
|
—%
|
|
7.7%
|
|
Cardiovascular
|
1,129
|
|
1,026
|
|
|
10.0%
|
|
2.7%
|
|
7.4%
|
|
—%
|
|
7.4%
|
|
Medical
Devices4
|
2,739
|
|
2,502
|
|
|
9.5%
|
|
2.7%
|
|
6.8%
|
|
0.4%
|
|
6.4%
|
|
Specialty
Pharmaceuticals5
|
13
|
|
41
|
|
|
(67.5)%
|
|
0.5%
|
|
(68.0)%
|
|
(23.6)%
|
|
(44.4)%
|
Net
Sales
|
$
|
2,752
|
|
$
|
2,543
|
|
|
8.2%
|
|
2.6%
|
|
5.6%
|
|
(0.3)%
|
|
5.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change
|
|
|
Three Months
Ended
March 31,
|
|
Reported
Basis
|
|
Less: Impact
of Foreign
Currency
Fluctuations
|
|
Operational
Basis
|
(in
millions)
|
2021
|
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
|
$
|
1,577
|
|
$
|
1,452
|
|
|
8.6%
|
|
—%
|
|
8.6%
|
|
EMEA
|
604
|
|
552
|
|
|
9.4%
|
|
7.5%
|
|
1.9%
|
|
APAC
|
473
|
|
409
|
|
|
15.6%
|
|
6.5%
|
|
9.1%
|
|
Latin America and
Canada
|
85
|
|
89
|
|
|
(3.8)%
|
|
(1.6)%
|
|
(2.2)%
|
|
Medical
Devices4
|
2,739
|
|
2,502
|
|
|
9.5%
|
|
2.7%
|
|
6.8%
|
|
Specialty
Pharmaceuticals5
|
13
|
|
41
|
|
|
(67.5)%
|
|
0.5%
|
|
(68.0)%
|
|
Net
Sales
|
$
|
2,752
|
|
$
|
2,543
|
|
|
8.2%
|
|
2.6%
|
|
5.6%
|
|
|
|
|
|
|
|
|
|
|
|
Emerging
Markets3
|
$
|
317
|
|
$
|
273
|
|
|
16.0%
|
|
2.8%
|
|
13.2%
|
|
|
|
|
|
|
|
|
|
|
|
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 recent aforementioned acquisitions / divestitures are not
prepared in accordance with U.S. GAAP.
|
Guidance for Full Year and Second Quarter 2021
The company now estimates net sales growth for the full year
2021, versus the prior year period, to be in a range of
approximately 16 to 19 percent on a reported basis, and
approximately 15 to 18 percent on an organic basis. Full year
organic net sales guidance excludes the impact of foreign currency
fluctuations and the acquisition of Preventice Solutions, Inc.,
with no prior period related net sales, as well as the intrauterine
health franchise, which we divested in Q2 2020 and the Specialty
Pharmaceuticals business, which we divested in Q1 2021. The company
now estimates earnings on a GAAP basis in a range of $0.81 to $0.88 per
share and estimates adjusted earnings, excluding certain charges
(credits), of $1.53 to $1.60 per share.
The company estimates net sales growth for the second quarter of
2021, versus the prior year period, to be in a range of
approximately 46 to 50 percent on a reported basis and
approximately 44 to 48 percent on an organic basis. Second quarter
organic net sales guidance excludes the impact of foreign currency
fluctuations and the acquisition of Preventice, with no prior
period related net sales, as well as the intrauterine health
franchise, which we divested in Q2 2020 and the Specialty
Pharmaceuticals business, which we divested in Q1 2021. The company
estimates earnings on a GAAP basis in a range of $0.16 to $0.18 per
share and adjusted earnings, excluding certain charges (credits),
of $0.36 to $0.38 per share.
Conference Call Information
Boston Scientific management will be discussing these results
with analysts on a conference call today at 8:00 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," "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; GAAP, operational and organic
revenue growth rates; GAAP earnings and adjusted earnings for the
second quarter and full year 2021; our financial performance; our
business plans and product performance; and the impact of the
COVID-19 pandemic on the company's results of operations. 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.
Factors that may cause such differences include, among other
things: future economic, political, competitive, reimbursement and
regulatory conditions; new product introductions; demographic
trends; intellectual property; litigation; financial market
conditions; and future business decisions made by us and our
competitors. All of these factors are difficult or impossible
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:
|
Kate
Haranis
|
|
Investors:
|
Susie Lisa,
CFA
|
|
|
508-683-6585
(office)
|
|
|
508-683-5565
(office)
|
|
|
Media
Relations
|
|
|
Investor
Relations
|
|
|
Boston Scientific
Corporation
|
|
|
Boston Scientific
Corporation
|
|
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kate.haranis@bsci.com
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BSXInvestorRelations@bsci.com
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BOSTON SCIENTIFIC
CORPORATION
CONSOLIDATED
STATEMENTS OF OPERATIONS
(Unaudited)
|
|
|
|
Three Months Ended
March 31,
|
in millions,
except per share data
|
2021
|
2020
|
|
|
|
Net sales
|
$
|
2,752
|
|
$
|
2,543
|
|
Cost of products
sold
|
894
|
|
806
|
|
Gross
profit
|
1,858
|
|
1,737
|
|
|
|
|
Operating
expenses:
|
|
|
Selling, general and
administrative expenses
|
1,019
|
|
978
|
|
Research and
development expenses
|
276
|
|
300
|
|
Royalty
expense
|
12
|
|
12
|
|
Amortization
expense
|
185
|
|
201
|
|
Intangible asset
impairment charges
|
—
|
|
198
|
|
Contingent
consideration net expense (benefit)
|
(6)
|
|
(108)
|
|
Restructuring net
charges (credits)
|
5
|
|
10
|
|
Litigation-related net
charges (credits)
|
4
|
|
—
|
|
Gain on disposal of
business
|
(6)
|
|
—
|
|
|
1,488
|
|
1,591
|
|
Operating income
(loss)
|
370
|
|
146
|
|
|
|
|
Other income
(expense):
|
|
|
Interest
expense
|
(82)
|
|
(88)
|
|
Other, net
|
37
|
|
(36)
|
|
Income
(loss) before income taxes
|
325
|
|
22
|
|
Income tax (benefit)
expense
|
(16)
|
|
12
|
|
Net income
(loss)
|
$
|
341
|
|
$
|
11
|
|
Preferred stock
dividends
|
(14)
|
|
—
|
|
Net income (loss)
available to common stockholders
|
$
|
327
|
|
$
|
11
|
|
|
|
|
Net income (loss)
per common share - basic
|
$
|
0.23
|
|
$
|
0.01
|
|
Net income (loss)
per common share - assuming dilution
|
$
|
0.23
|
|
$
|
0.01
|
|
|
|
|
Weighted-average
shares outstanding
|
|
|
Basic
|
1,418.7
|
|
1,397.4
|
|
Assuming
dilution
|
1,430.8
|
|
1,413.5
|
|
BOSTON SCIENTIFIC
CORPORATION
NON-GAAP NET INCOME
AND NET INCOME PER SHARE RECONCILIATIONS
(Unaudited)
|
|
|
|
Three Months Ended
March 31, 2021
|
|
(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)
Available to
Common
Stockholders
|
Impact
per
Share (1)
|
|
Reported
|
$
|
1,858
|
|
$
|
1,488
|
|
$
|
370
|
|
$
|
(45)
|
|
$
|
325
|
|
$
|
341
|
|
$
|
(14)
|
|
$
|
327
|
|
$
|
0.23
|
|
|
Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
|
|
|
Amortization
expense
|
—
|
|
(185)
|
|
185
|
|
—
|
|
185
|
|
167
|
|
—
|
|
167
|
|
0.12
|
|
|
Acquisition /
divestitures-related net charges (credits)
|
14
|
|
(37)
|
|
50
|
|
(198)
|
|
(148)
|
|
(153)
|
|
—
|
|
(153)
|
|
(0.11)
|
|
|
Restructuring and
restructuring-related net charges (credits)
|
18
|
|
(31)
|
|
49
|
|
—
|
|
49
|
|
44
|
|
—
|
|
44
|
|
0.03
|
|
|
Litigation-related net
charges (credits)
|
—
|
|
(4)
|
|
4
|
|
—
|
|
4
|
|
4
|
|
—
|
|
4
|
|
0.00
|
|
|
Investment portfolio
net losses (gains)
|
—
|
|
—
|
|
—
|
|
146
|
|
146
|
|
112
|
|
—
|
|
112
|
|
0.08
|
|
|
EU MDR implementation
costs
|
7
|
|
(3)
|
|
11
|
|
—
|
|
11
|
|
10
|
|
—
|
|
10
|
|
0.01
|
|
|
Deferred tax expenses
(benefits)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
17
|
|
—
|
|
17
|
|
0.01
|
|
|
Discrete tax
items
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(3)
|
|
—
|
|
(3)
|
|
(0.00)
|
|
|
Adjusted
|
$
|
1,897
|
|
$
|
1,228
|
|
$
|
669
|
|
$
|
(97)
|
|
$
|
572
|
|
$
|
538
|
|
$
|
(14)
|
|
$
|
524
|
|
$
|
0.37
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) For the three
months ended March 31, 2021, the effect of assuming the conversion
of Mandatory Convertible Preferred Stock (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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31, 2020
|
|
(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)
Available to
Common
Stockholders
|
Impact
per
Share
|
|
Reported
|
$
|
1,737
|
|
$
|
1,591
|
|
$
|
146
|
|
$
|
(124)
|
|
$
|
22
|
|
$
|
11
|
|
$
|
—
|
|
$
|
11
|
|
$
|
0.01
|
|
|
Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
|
|
|
Amortization
expense
|
—
|
|
(201)
|
|
201
|
|
—
|
|
201
|
|
180
|
|
—
|
|
180
|
|
0.13
|
|
|
Intangible asset
impairment charges
|
—
|
|
(198)
|
|
198
|
|
—
|
|
198
|
|
168
|
|
—
|
|
168
|
|
0.12
|
|
|
Acquisition /
divestitures-related net charges (credits)
|
37
|
|
69
|
|
(32)
|
|
9
|
|
(23)
|
|
(36)
|
|
—
|
|
(36)
|
|
(0.03)
|
|
|
Restructuring and
restructuring-related net charges (credits)
|
15
|
|
(15)
|
|
30
|
|
—
|
|
30
|
|
25
|
|
—
|
|
25
|
|
0.02
|
|
|
EU MDR implementation
costs
|
4
|
|
(1)
|
|
5
|
|
—
|
|
5
|
|
5
|
|
—
|
|
5
|
|
0.00
|
|
|
Deferred tax expenses
(benefits)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
26
|
|
—
|
|
26
|
|
0.02
|
|
|
Discrete tax
items
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
13
|
|
—
|
|
13
|
|
0.01
|
|
|
Adjusted
|
$
|
1,794
|
|
$
|
1,245
|
|
$
|
549
|
|
$
|
(115)
|
|
$
|
434
|
|
$
|
391
|
|
$
|
—
|
|
$
|
391
|
|
$
|
0.28
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
An explanation of
the company's use of these non-GAAP financial measures is provided
at the end of this document.
|
|
BOSTON SCIENTIFIC
CORPORATION
|
Q2 and FY 2021
GUIDANCE RECONCILIATIONS
|
(Unaudited)
|
Net Sales
|
Q2 2021
Estimate
|
|
Full Year 2021
Estimate
|
|
(Low)
|
(High)
|
|
(Low)
|
(High)
|
Estimated GAAP
sales growth
|
46%
|
50%
|
|
16%
|
19%
|
Less: Estimated impact
of foreign currency fluctuations
|
4%
|
4%
|
|
2%
|
2%
|
Estimated sales
growth, operational
|
42%
|
46%
|
|
14%
|
17%
|
Less: Estimated impact
of recent acquisitions / divestitures
|
(2)%
|
(2)%
|
|
(1)%
|
(1)%
|
Estimated sales
growth, organic
|
44%
|
48%
|
|
15%
|
18%
|
Earnings per Share
|
Q2 2021
Estimate
|
|
Full Year 2021
Estimate
|
|
(Low)
|
(High)
|
|
(Low)
|
(High)
|
GAAP
results
|
$
|
0.16
|
|
$
|
0.18
|
|
|
$
|
0.81
|
|
$
|
0.88
|
|
|
|
|
|
|
|
Estimated
amortization expense
|
0.11
|
|
0.11
|
|
|
0.45
|
|
0.45
|
|
Estimated acquisition
/ divestitures-related net charges (credits)
|
0.03
|
|
0.03
|
|
|
(0.04)
|
|
(0.04)
|
|
Estimated
restructuring and restructuring-related net charges
(credits)
|
0.04
|
|
0.04
|
|
|
0.13
|
|
0.13
|
|
Estimated other
adjustments
|
0.03
|
|
0.03
|
|
|
0.19
|
|
0.19
|
|
Adjusted
results
|
$
|
0.36
|
|
$
|
0.38
|
|
|
$
|
1.53
|
|
$
|
1.60
|
|
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) available to common stockholders and adjusted net income
(loss) per share (EPS) that exclude certain amounts, operational
net sales, which exclude the impact of foreign currency
fluctuations and organic net sales, which exclude the impact of
foreign currency fluctuations and the impact of recent
aforementioned acquisitions and divestitures. 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) available to common stockholders and adjusted net income
(loss) per share we exclude certain charges (credits) from GAAP net
income and GAAP net income available to common stockholders.
Amounts are presented after-tax at the company's effective tax
rate, unless the amount is a significant unusual or infrequently
occurring item in accordance with FASB Accounting Standards
Codification section 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 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) available to common
stockholders and adjusted net income (loss) per share are GAAP net
income (loss), GAAP net income (loss) available to common
stockholders and GAAP net income (loss) per common share - assuming
dilution, 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 recent aforementioned 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) available to common stockholders, adjusted net
income (loss) per share, operational net sales and organic net
sales, 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