MARLBOROUGH, Mass., Oct. 26,
2023 /PRNewswire/ -- Boston Scientific Corporation
(NYSE: BSX) generated net sales of $3.527 billion during the third quarter of 2023,
growing 11.2 percent on a reported basis, 11.1 percent on an
operational1 basis and 10.2 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 $505
million or $0.34 per share
(EPS), compared to $174 million or
$0.12 per share a year ago, and
achieved adjusted3 EPS of $0.50 for the period, compared to $0.43 a year ago.
"We achieved another quarter of strong performance, thanks to
the hard work of our talented global team and our differentiated
medical technologies that improve the lives of patients across the
globe," said Mike Mahoney, chairman
and chief executive officer, Boston Scientific. "As we shared at
our recent Investor Day meeting, we are well-positioned for the
long term, backed by our category leadership strategy, strong
pipeline of innovation and track record of strong commercial
execution."
Third quarter financial results and recent
developments:
- Reported net sales of $3.527
billion, representing an increase of 11.2 percent on a
reported basis, compared to the company's guidance range of 8.5 to
10.5 percent; 11.1 percent on an operational basis; and 10.2
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 $0.34 per
share, compared to the company's guidance range of $0.21 to $0.25 per
share, and achieved adjusted EPS of $0.50 per share, compared to the guidance range
of $0.46 to $0.48 per share.
- Achieved the following net sales growth in each reportable
segment, compared to the prior year period:
- MedSurg: 10.6 percent reported, 10.0 percent operational and
9.4 percent organic
- Cardiovascular: 11.6 percent reported, 11.7 percent operational
and 10.6 percent organic
- Achieved the following net sales growth in each region,
compared to the prior year period:
- United States (U.S.): 8.5
percent reported and operational
- Europe, Middle East and Africa (EMEA): 14.7 percent reported and 10.9
percent operational
- Asia-Pacific (APAC): 14.8
percent reported and 19.5 percent operational
- Latin America and Canada (LACA): 22.0 percent reported and 16.1
percent operational
- Emerging Markets4: 14.4 percent reported and 19.0
percent operational
- Announced positive 12-month results from the ADVENT pivotal
clinical trial of the FARAPULSE™ Pulsed Field Ablation (PFA)
System,5 which met the primary safety and efficacy
endpoints, and demonstrated the FARAPULSE PFA System is noninferior
to standard-of-care therapies.
- Completed enrollment in the first phase of the ADVANTAGE AF
clinical trial studying the FARAPULSE PFA System for the treatment
of patients with persistent atrial fibrillation (AF) and commenced
enrollment in an extension arm of the study to evaluate the safety
and effectiveness of adjunctive use of the FARAPOINT™ PFA
Catheter for cavotricuspid isthmus (CTI) ablations, a procedure
used to treat atrial flutter.
- Received U.S. Food and Drug Administration (FDA) approval for
the POLARx™ Cryoablation System, which includes the
POLARx FIT Cryoablation Balloon Catheter and is used to treat
patients with paroxysmal AF.
- Announced the U.S. FDA approval of the latest-generation
WATCHMAN FLX™ Pro Left Atrial Appendage Closure (LAAC)
Device, which is designed to improve visualization during
device placement, reduce device-related thrombus post-implant and
treat a broader range of patient anatomies.
- Received U.S. FDA 510(k) clearance and launched the
next-generation LUX-Dx II/II+™ Insertable Cardiac Monitor (ICM)
System for long-term monitoring of arrhythmias.
- Received CE Mark, U.S. FDA clearance and Japanese
Pharmaceuticals and Medical Devices Agency (PMDA) approval for the
AVVIGO™+ Multi-Modality Guidance System, a next-generation
technology that provides high-quality intravascular ultrasound
(IVUS) imaging and physiologic assessment of coronary vessels and
lesions.
- Announced positive data at the Transcatheter Cardiovascular
Therapeutics (TCT) scientific symposium demonstrating statistical
superiority of the AGENT™ Drug Coated Balloon5
versus uncoated balloon angioplasty for the treatment of patients
with in-stent restenosis, meeting the primary endpoint of target
lesion failure (TLF) at 12 months (17.9% vs. 28.7%, P=0.006) for
the AGENT IDE clinical trial.
- Presented at TCT were study results demonstrating statistically
significant lower major bleeding rates in patients with pulmonary
embolism (PE) who were treated with the EKOS™ Endovascular
System compared to the Inari FlowTriever® System as
analyzed in the REAL-PE study.
- Received U.S. FDA De Novo classification grant and marketing
authorization for an expanded indication for the AXIOS™
Stent and Electrocautery-Enhanced Delivery System. The new
indication allows for use of the device to facilitate endoscopic
drainage of the gallbladder for patients with acute cholecystitis
who are at high risk for surgery.
- Announced U.S. FDA approval for an expanded indication of the
WaveWriter Alpha™ Spinal Cord Stimulator (SCS) Systems for
the treatment of painful diabetic peripheral neuropathy (DPN).
- Announced agreement to acquire Relievant Medsystems, Inc., a
privately held medical technology company that has developed and
commercialized the only U.S. FDA-cleared system, the Intracept®
Intraosseous Nerve Ablation System, for vertebrogenic pain,
subject to customary closing conditions.
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.
|
5.
The FARAPULSE PFA System and the AGENT DCB are investigational
devices. Restricted by Federal law to investigational use only. Not
available for sale in the U.S.
|
Net sales for the third quarter by business and
region:
|
|
|
|
|
Increase/(Decrease)
|
|
|
Three Months
Ended September
30,
|
|
Reported
Basis
|
|
Impact of
Foreign
Currency
Fluctuations
|
|
Operational Basis
|
|
Impact of
Recent
Acquisitions /
Divestitures
|
|
Organic
Basis
|
(in
millions)
|
2023
|
2022
|
|
|
|
|
|
|
Endoscopy
|
$
629
|
$
559
|
|
12.6 %
|
|
(0.7) %
|
|
11.9 %
|
|
(1.4) %
|
|
10.6 %
|
|
Urology
|
483
|
433
|
|
11.5 %
|
|
(0.5) %
|
|
11.1 %
|
|
— %
|
|
11.1 %
|
|
Neuromodulation
|
229
|
221
|
|
3.7 %
|
|
(0.4) %
|
|
3.2 %
|
|
— %
|
|
3.2 %
|
|
MedSurg
|
1,341
|
1,213
|
|
10.6 %
|
|
(0.5) %
|
|
10.0 %
|
|
(0.6) %
|
|
9.4 %
|
|
Cardiology
|
1,647
|
1,479
|
|
11.4 %
|
|
(0.1) %
|
|
11.4 %
|
|
— %
|
|
11.4 %
|
|
Peripheral
Interventions
|
538
|
479
|
|
12.3 %
|
|
0.6 %
|
|
12.9 %
|
|
(4.5) %
|
|
8.4 %
|
|
Cardiovascular
|
2,185
|
1,958
|
|
11.6 %
|
|
0.1 %
|
|
11.7 %
|
|
(1.1) %
|
|
10.6 %
|
Net
Sales
|
$
3,527
|
$
3,170
|
|
11.2 %
|
|
(0.1) %
|
|
11.1 %
|
|
(0.9) %
|
|
10.2 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase/(Decrease)
|
|
|
|
|
|
|
Three Months
Ended
September 30,
|
|
Reported
Basis
|
|
Impact of
Foreign
Currency
Fluctuations
|
|
Operational Basis
|
|
|
|
|
(in
millions)
|
2023
|
2022
|
|
|
|
|
U.S.
|
$
2,099
|
$
1,934
|
|
8.5 %
|
|
— %
|
|
8.5 %
|
|
|
|
|
|
EMEA
|
671
|
585
|
|
14.7 %
|
|
(3.8) %
|
|
10.9 %
|
|
|
|
|
|
APAC
|
611
|
532
|
|
14.8 %
|
|
4.7 %
|
|
19.5 %
|
|
|
|
|
|
LACA
|
146
|
119
|
|
22.0 %
|
|
(5.9) %
|
|
16.1 %
|
|
|
|
|
|
Net
Sales
|
$
3,527
|
$
3,170
|
|
11.2 %
|
|
(0.1) %
|
|
11.1 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Emerging
Markets4
|
$
594
|
$
519
|
|
14.4 %
|
|
4.6 %
|
|
19.0 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts may not add
due to the use of rounded numbers. Growth rates are based on
actual, unrounded 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 Fourth Quarter 2023
The company now estimates net sales growth for the full year
2023, versus the prior year period, to be approximately 11 percent
on both a reported basis and 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
$1.00 to $1.04 and estimates adjusted EPS, excluding
certain charges (credits), of $1.99
to $2.02.
The company estimates net sales growth for the fourth quarter of
2023, versus the prior year period, to be in a range of
approximately 9 to 11 percent on a reported basis, and
approximately 8 to 10 percent on an organic basis. Fourth 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 $0.26 to $0.30 and adjusted EPS, excluding certain charges
(credits), of $0.49 to $0.52.
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: investors.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 fourth 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 pandemics 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 unrounded amounts.
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 September
30,
|
|
Nine Months
Ended September
30,
|
in millions, except
per share data
|
2023
|
2022
|
|
2023
|
2022
|
|
|
|
|
|
|
Net sales
|
$
3,527
|
$
3,170
|
|
$ 10,515
|
$
9,440
|
Cost of products
sold
|
1,101
|
979
|
|
3,198
|
2,945
|
Gross profit
|
2,426
|
2,191
|
|
7,317
|
6,495
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
Selling, general and
administrative expenses
|
1,242
|
1,132
|
|
3,811
|
3,357
|
Research and
development expenses
|
356
|
339
|
|
1,051
|
993
|
Royalty
expense
|
11
|
11
|
|
35
|
34
|
Amortization
expense
|
208
|
202
|
|
620
|
604
|
Intangible asset
impairment charges
|
1
|
125
|
|
58
|
132
|
Contingent
consideration net expense (benefit)
|
12
|
20
|
|
43
|
68
|
Restructuring net
charges (credits)
|
15
|
4
|
|
51
|
18
|
Litigation-related net
charges (credits)
|
(111)
|
—
|
|
(111)
|
42
|
|
1,733
|
1,833
|
|
5,558
|
5,248
|
Operating income
(loss)
|
693
|
358
|
|
1,759
|
1,247
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
Interest
expense
|
(66)
|
(63)
|
|
(200)
|
(406)
|
Other, net
|
(18)
|
(51)
|
|
(78)
|
(96)
|
Income
(loss) before income taxes
|
610
|
245
|
|
1,480
|
745
|
Income tax expense
(benefit)
|
105
|
57
|
|
392
|
188
|
Net income
(loss)
|
504
|
188
|
|
1,088
|
558
|
Preferred stock
dividends
|
—
|
(14)
|
|
(23)
|
(42)
|
Net income (loss)
attributable to noncontrolling interests
|
(0)
|
—
|
|
(0)
|
—
|
Net income (loss)
attributable to Boston Scientific
common stockholders
|
$
505
|
$
174
|
|
$
1,065
|
$
516
|
|
|
|
|
|
|
Net income (loss)
per common share - basic
|
$
0.34
|
$
0.12
|
|
$
0.74
|
$
0.36
|
Net income (loss)
per common share - diluted
|
$
0.34
|
$
0.12
|
|
$
0.73
|
$
0.36
|
|
|
|
|
|
|
Weighted-average
shares outstanding
|
|
|
|
|
|
Basic
|
1,464.5
|
1,431.6
|
|
1,448.8
|
1,429.7
|
Diluted
|
1,475.0
|
1,440.0
|
|
1,459.1
|
1,438.7
|
BOSTON SCIENTIFIC
CORPORATION
|
NON-GAAP NET INCOME AND
NET INCOME PER SHARE RECONCILIATIONS
|
(Unaudited)
|
|
|
Three Months Ended
September 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
|
|
Reported
|
$
2,426
|
$
1,733
|
$
693
|
$
(83)
|
$
610
|
$
504
|
$
—
|
$
505
|
$ 0.34
|
|
Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
|
|
|
Amortization
expense
|
—
|
(208)
|
208
|
—
|
208
|
179
|
—
|
177
|
0.12
|
|
Intangible asset
impairment charges
|
—
|
(1)
|
1
|
—
|
1
|
—
|
—
|
—
|
0.00
|
|
Acquisition /
divestiture-related net
charges (credits)
|
17
|
(48)
|
66
|
—
|
66
|
56
|
—
|
56
|
0.04
|
|
Restructuring and
restructuring-
related net charges (credits)
|
20
|
(27)
|
47
|
—
|
47
|
41
|
—
|
41
|
0.03
|
|
Litigation-related net
charges
(credits)
|
—
|
111
|
(111)
|
—
|
(111)
|
(86)
|
—
|
(86)
|
(0.06)
|
|
Investment portfolio
net losses (gains)
|
—
|
—
|
—
|
2
|
2
|
2
|
—
|
2
|
0.00
|
|
EU MDR implementation
costs
|
11
|
(5)
|
17
|
—
|
17
|
14
|
—
|
14
|
0.01
|
|
Deferred tax expenses
(benefits)
|
—
|
—
|
—
|
—
|
—
|
23
|
—
|
23
|
0.02
|
|
Discrete tax
items
|
—
|
—
|
—
|
—
|
—
|
0
|
—
|
0
|
0.00
|
|
Adjusted
|
$
2,475
|
$
1,555
|
$
919
|
$
(81)
|
$
838
|
$
734
|
$
—
|
$
732
|
$ 0.50
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 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
|
$
2,191
|
$
1,833
|
$
358
|
$
(114)
|
$
245
|
$
188
|
$
(14)
|
$
174
|
$ 0.12
|
|
Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
|
|
|
Amortization
expense
|
—
|
(202)
|
202
|
—
|
202
|
174
|
—
|
174
|
0.12
|
|
Intangible asset
impairment charges
|
—
|
(125)
|
125
|
—
|
125
|
96
|
—
|
96
|
0.07
|
|
Acquisition /
divestiture-related net
charges (credits)
|
23
|
(65)
|
87
|
26
|
113
|
112
|
—
|
112
|
0.08
|
|
Restructuring and
restructuring-
related net charges (credits)
|
14
|
(4)
|
18
|
—
|
18
|
16
|
—
|
16
|
0.01
|
|
Litigation-related net
charges
(credits)
|
—
|
—
|
—
|
—
|
—
|
(0)
|
—
|
(0)
|
(0.00)
|
|
Investment portfolio
net losses (gains)
|
—
|
—
|
—
|
(3)
|
(3)
|
(3)
|
—
|
(3)
|
(0.00)
|
|
EU MDR implementation
costs
|
12
|
(7)
|
20
|
—
|
20
|
17
|
—
|
17
|
0.01
|
|
Debt extinguishment
charges
|
—
|
—
|
—
|
—
|
—
|
(0)
|
—
|
(0)
|
(0.00)
|
|
Deferred tax expenses
(benefits)
|
—
|
—
|
—
|
—
|
—
|
35
|
—
|
35
|
0.02
|
|
Adjusted
|
$
2,240
|
$
1,430
|
$
810
|
$
(91)
|
$
719
|
$
634
|
$
(14)
|
$
620
|
$ 0.43
|
|
|
(1) On June
1, 2023, all outstanding shares of MCPS automatically converted
into shares of common stock. For the third quarter of 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 attributable to common
stockholders.
|
|
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)
|
|
|
Nine Months Ended
September 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
|
$
7,317
|
$
5,558
|
$
1,759
|
$
(279)
|
$
1,480
|
$
1,088
|
$
(23)
|
$
1,065
|
$ 0.73
|
|
Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
|
|
|
Amortization
expense
|
—
|
(620)
|
620
|
—
|
620
|
536
|
—
|
534
|
0.37
|
|
Intangible asset
impairment charges
|
—
|
(58)
|
58
|
—
|
58
|
54
|
—
|
54
|
0.04
|
|
Acquisition /
divestiture-related net
charges (credits)
|
44
|
(193)
|
238
|
6
|
244
|
298
|
—
|
298
|
0.20
|
|
Restructuring and
restructuring-
related net charges (credits)
|
55
|
(78)
|
133
|
—
|
133
|
112
|
—
|
112
|
0.08
|
|
Litigation-related net
charges
(credits)
|
—
|
111
|
(111)
|
—
|
(111)
|
(86)
|
—
|
(86)
|
(0.06)
|
|
Investment portfolio
net losses (gains)
|
—
|
—
|
—
|
21
|
21
|
22
|
—
|
22
|
0.02
|
|
EU MDR implementation
costs
|
36
|
(17)
|
53
|
—
|
53
|
45
|
—
|
45
|
0.03
|
|
Deferred tax expenses
(benefits)
|
—
|
—
|
—
|
—
|
—
|
111
|
—
|
111
|
0.08
|
|
Discrete tax
items
|
—
|
—
|
—
|
—
|
—
|
26
|
—
|
26
|
0.02
|
|
Adjusted
|
$
7,452
|
$
4,704
|
$
2,748
|
$
(252)
|
$
2,497
|
$
2,206
|
$
(23)
|
$
2,181
|
$ 1.50
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 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
|
$
6,495
|
$
5,248
|
$
1,247
|
$
(502)
|
$
745
|
$
558
|
$
(42)
|
$
516
|
$ 0.36
|
|
Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
|
|
|
Amortization
expense
|
—
|
(604)
|
604
|
—
|
604
|
519
|
—
|
519
|
0.36
|
|
Intangible asset
impairment charges
|
—
|
(132)
|
132
|
—
|
132
|
103
|
—
|
103
|
0.07
|
|
Acquisition /
divestiture-related net
charges (credits)
|
73
|
(177)
|
250
|
26
|
276
|
279
|
—
|
279
|
0.19
|
|
Restructuring and
restructuring-
related net charges (credits)
|
49
|
(33)
|
82
|
—
|
82
|
71
|
—
|
71
|
0.05
|
|
Litigation-related net
charges
(credits)
|
—
|
(42)
|
42
|
—
|
42
|
33
|
—
|
33
|
0.02
|
|
Investment portfolio
net losses (gains)
|
—
|
—
|
—
|
8
|
8
|
4
|
—
|
4
|
0.00
|
|
EU MDR implementation
costs
|
33
|
(19)
|
52
|
—
|
52
|
45
|
—
|
45
|
0.03
|
|
Debt extinguishment
charges
|
—
|
—
|
—
|
194
|
194
|
149
|
—
|
149
|
0.10
|
|
Deferred tax expenses
(benefits)
|
—
|
—
|
—
|
—
|
—
|
98
|
—
|
98
|
0.07
|
|
Discrete tax
items
|
—
|
—
|
—
|
—
|
—
|
(0)
|
—
|
(0)
|
(0.00)
|
|
Adjusted
|
$
6,651
|
$
4,242
|
$
2,409
|
$
(274)
|
$
2,135
|
$
1,858
|
$
(42)
|
$
1,816
|
$ 1.26
|
|
|
(2) For the
nine months ended September 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 attributable 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
Q4 and FY 2023 GUIDANCE
RECONCILIATIONS
(Unaudited)
Net Sales
|
Q4 2023
Estimate
|
|
Full Year 2023
Estimate
|
|
(Low)
|
(High)
|
|
Reported
growth
|
9 %
|
11 %
|
|
~11%
|
Impact of foreign
currency fluctuations
|
0 %
|
0 %
|
|
~1%
|
Operational
growth
|
9 %
|
11 %
|
|
~12%
|
Impact of acquisitions
/ divestitures
|
(1) %
|
(1) %
|
|
~(1)%
|
Organic
growth
|
8 %
|
10 %
|
|
~11%
|
Earnings per Share
|
Q4 2023
Estimate
|
|
Full Year 2023
Estimate
|
|
(Low)
|
(High)
|
|
(Low)
|
(High)
|
GAAP
results
|
$
0.26
|
$
0.30
|
|
$
1.00
|
$
1.04
|
|
|
|
|
|
|
Amortization
expense
|
0.12
|
0.12
|
|
0.49
|
0.49
|
Acquisition /
divestiture-related net charges (credits)
|
0.04
|
0.03
|
|
0.24
|
0.23
|
Restructuring and
restructuring-related net charges (credits)
|
0.03
|
0.03
|
|
0.11
|
0.11
|
Other
adjustments
|
0.04
|
0.04
|
|
0.15
|
0.15
|
Adjusted
results
|
$
0.49
|
$
0.52
|
|
$
1.99
|
$
2.02
|
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
have filed or will 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