MARLBOROUGH, Mass., April 24,
2024 /PRNewswire/ -- Boston Scientific Corporation
(NYSE: BSX) generated net sales of $3.856
billion during the first quarter of 2024, growing 13.8
percent on a reported basis, 15.0 percent on an
operational1 basis and 13.1 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 $495
million or $0.33 per share
(EPS), compared to $300 million or
$0.21 per share a year ago, and
achieved adjusted3 EPS of $0.56 for the period, compared to $0.47 a year ago.
"Our exceptional results this quarter were fueled by our
talented global team and the strength of our diversified businesses
and pipeline, including the initial U.S. launch of the FARAPULSE™
Pulsed Field Ablation System," said Mike
Mahoney, chairman and chief executive officer, Boston
Scientific. "We continue to invest for the long term in our
innovative portfolio and clinical science to benefit patients
globally while delivering differentiated financial
performance."
First quarter financial results and recent
developments:
- Reported net sales of $3.856
billion, representing an increase of 13.8 percent on a
reported basis, compared to the company's guidance range of 7.5 to
9.5 percent; 15.0 percent on an operational basis; and 13.1 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 $0.33 per
share, compared to the company's guidance range of $0.29 to $0.31 per
share, and achieved adjusted EPS of $0.56 per share, compared to the guidance range
of $0.50 to $0.52 per share.
- Achieved the following net sales growth in each reportable
segment, compared to the prior year period:
- MedSurg: 10.3 percent reported, 10.9 percent operational and
7.8 percent organic
- Cardiovascular: 15.9 percent reported, 17.4 percent operational
and 16.3 percent organic
- Achieved the following net sales growth in each region,
compared to the prior year period:
- United States (U.S.): 12.7
percent reported and operational
- Europe, Middle East and Africa (EMEA): 12.7 percent reported and 13.3
percent operational
- Asia-Pacific (APAC): 18.3
percent reported and 25.9 percent operational
- Latin America and Canada (LACA): 17.9 percent reported and 12.7
percent operational
- Emerging Markets4: 22.6 percent reported and 28.2
percent operational
- Commenced launch of the FARAPULSETM Pulsed
Field Ablation (PFA) System in the U.S. and completed
enrollment in the second phase of the ADVANTAGE AF clinical trial
studying the FARAPULSE™ PFA System for the treatment of
patients with persistent atrial fibrillation (AF), which
additionally evaluates the safety and effectiveness of adjunctive
use of the FARAPOINT™ PFA Catheter for cavotricuspid isthmus
(CTI) ablations.
- Commenced enrollment in the NAVIGATE-PF study of the use
of integrated cardiac mapping with the FARAPULSE PFA System
using the FARAVIEW™ Software Module in conjunction with the
FARAWAVE™ Nav PFA Catheter for the treatment of paroxysmal
and persistent atrial fibrillation.
- Initiated the DISRUPT-AF registry – a collaborative,
observational, prospective, multi-center, non-randomized,
real-world registry designed to obtain clinical experience with the
FARAPULSE PFA System for the treatment of atrial
fibrillation in the U.S.
- Announced the U.S. Food and Drug Administration (FDA)
approval of the AGENT™ Drug-Coated Balloon, the first
drug-coated coronary balloon in the U.S., which is indicated to
treat in-stent restenosis in patients with coronary artery
disease.
- Announced the FDA clearance and initiated the U.S. launch
of the WATCHMAN TruSteer™ Access System, a steerable sheath
designed to improve implant success of the WATCHMAN FLX™ Pro
and WATCHMAN FLX™ Left Atrial Appendage Closure
Devices.
- Announced U.S. FDA approval for an expanded indication of
the WaveWriter™ Spinal Cord Stimulator (SCS) Systems for the
treatment of chronic low back and leg pain in people who have not
had prior back surgery.
- Expanded an existing relationship with Scivita
Medical, a China-based medical
device company, for strategic co-development of future endoscopic
devices and global distribution of certain Scivita Medical
gastrointestinal and pulmonary single-use imaging devices.
- Completed a public offering of €2.0 billion aggregate principal
amount of EUR-denominated Senior Notes. The company intends to
use the net proceeds from the offering to fund a portion of the
previously announced agreement to acquire Axonics, Inc.
(Nasdaq: AXNX).
- Released the 2023 Performance Report, detailing the ways
in which the company is advancing innovative care, empowering
people and contributing to a healthier planet, while performing
with integrity.
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 other intangible asset
impairment charges, acquisition/divestiture-related net charges
(credits), investment portfolio net losses (gains) and impairments,
restructuring and restructuring-related net charges (credits),
certain litigation-related net charges (credits), European Union
Medical Device Regulation (EU MDR) implementation costs, debt
extinguishment net charges, deferred tax expenses (benefits) and
certain 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.
|
Net sales for the first quarter by business and
region:
|
|
|
|
|
|
Increase/(Decrease)
|
|
|
|
Three Months
Ended
March
31,
|
|
Reported
Basis
|
|
Impact of
Foreign
Currency
Fluctuations
|
|
Operational
Basis
|
|
Impact of
Recent
Acquisitions/
Divestitures
|
|
Organic
Basis
|
(in
millions)
|
|
2024
|
2023
|
|
|
|
|
|
|
Endoscopy
|
|
$
642
|
$
577
|
|
11.4 %
|
|
0.7 %
|
|
12.1 %
|
|
(2.3) %
|
|
9.8 %
|
|
Urology
|
|
513
|
469
|
|
9.3 %
|
|
0.5 %
|
|
9.8 %
|
|
— %
|
|
9.8 %
|
|
Neuromodulation
|
|
256
|
234
|
|
9.5 %
|
|
0.3 %
|
|
9.8 %
|
|
(11.2) %
|
|
(1.3) %
|
|
MedSurg
|
|
1,412
|
1,280
|
|
10.3 %
|
|
0.6 %
|
|
10.9 %
|
|
(3.1) %
|
|
7.8 %
|
|
Cardiology
|
|
1,872
|
1,606
|
|
16.5 %
|
|
1.4 %
|
|
17.9 %
|
|
— %
|
|
17.9 %
|
|
Peripheral
Interventions
|
|
573
|
503
|
|
13.9 %
|
|
2.1 %
|
|
16.0 %
|
|
(4.6) %
|
|
11.3 %
|
|
Cardiovascular
|
|
2,445
|
2,110
|
|
15.9 %
|
|
1.6 %
|
|
17.4 %
|
|
(1.1) %
|
|
16.3 %
|
Net
Sales
|
|
$
3,856
|
$
3,389
|
|
13.8 %
|
|
1.2 %
|
|
15.0 %
|
|
(1.9) %
|
|
13.1 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase/(Decrease)
|
|
|
Three Months
Ended
March 31,
|
|
Reported
Basis
|
|
Impact of
Foreign
Currency
Fluctuations
|
|
Operational
Basis
|
(in
millions)
|
2024
|
2023
|
|
|
|
|
U.S.
|
$
2,258
|
$
2,003
|
|
12.7 %
|
|
— %
|
|
12.7 %
|
|
EMEA
|
803
|
712
|
|
12.7 %
|
|
0.6 %
|
|
13.3 %
|
|
APAC
|
647
|
548
|
|
18.3 %
|
|
7.6 %
|
|
25.9 %
|
|
LACA
|
149
|
126
|
|
17.9 %
|
|
(5.1) %
|
|
12.7 %
|
|
Net
Sales
|
$
3,856
|
$
3,389
|
|
13.8 %
|
|
1.2 %
|
|
15.0 %
|
|
|
|
|
|
|
|
|
|
|
|
Emerging
Markets4
|
$
648
|
$
529
|
|
22.6 %
|
|
5.5 %
|
|
28.2 %
|
|
|
|
|
|
|
|
|
|
|
|
Amounts may not add
due to rounding. Growth rates are based on actual, non-rounded
amounts and may not recalculate precisely.
|
|
|
|
Net sales 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 Second Quarter 2024
The company estimates net sales growth for the full year 2024,
versus the prior year period, to be in range of approximately 11 to
13 percent on a reported basis, and 10 to 12 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 estimates EPS on a
GAAP basis in a range of $1.43 to
$1.48 and estimates adjusted EPS,
excluding certain charges (credits), of $2.29 to $2.34.
The company estimates net sales growth for the second quarter of
2024, versus the prior year period, to be in a range of
approximately 10.5 to 12.5 percent on a reported basis, and
approximately 10 to 12 percent on an organic basis. Second 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 $0.35 to $0.37 and adjusted EPS, excluding certain charges
(credits), of $0.57 to $0.59.
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 technologies 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 health care. Our
portfolio of devices and therapies helps physicians diagnose and
treat complex cardiovascular, respiratory,
digestive, oncological, neurological and urological diseases
and conditions. Learn more at www.bostonscientific.com and connect
on LinkedIn and X, formerly Twitter.
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 second quarter and full year 2024; 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: economic conditions, including the impact of
foreign currency fluctuations; future U.S. and global political,
competitive, reimbursement and regulatory conditions; geopolitical
events; manufacturing, distribution and supply chain disruptions
and cost increases; disruptions caused by cybersecurity events;
disruptions caused by public health emergencies or extreme weather
or other climate change-related events; labor shortages and
increases in labor costs; variations in outcomes of ongoing and
future clinical trials and market studies; 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, except as required by
law. 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:
|
Jonathan
Monson
|
|
617-515-2000
(office)
|
|
|
508-683-5450
(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
March
31,
|
in millions, except
per share data
|
|
2024
|
2023
|
|
|
|
|
Net sales
|
|
$
3,856
|
$
3,389
|
Cost of products
sold
|
|
1,209
|
1,040
|
Gross profit
|
|
2,648
|
2,349
|
|
|
|
|
Operating
expenses:
|
|
|
|
Selling, general and
administrative expenses
|
|
1,364
|
1,215
|
Research and
development expenses
|
|
366
|
337
|
Royalty
expense
|
|
10
|
11
|
Amortization
expense
|
|
214
|
203
|
Contingent
consideration net expense (benefit)
|
|
17
|
12
|
Restructuring net
charges (credits)
|
|
3
|
20
|
|
|
1,973
|
1,797
|
Operating income
(loss)
|
|
675
|
552
|
|
|
|
|
Other income
(expense):
|
|
|
|
Interest
expense
|
|
(69)
|
(65)
|
Other, net
|
|
2
|
(43)
|
Income
(loss) before income taxes
|
|
608
|
444
|
Income tax expense
(benefit)
|
|
115
|
131
|
Net income
(loss)
|
|
493
|
314
|
Preferred stock
dividends
|
|
—
|
(14)
|
Net income (loss)
attributable to noncontrolling interests
|
|
(1)
|
—
|
Net income (loss)
attributable to Boston Scientific common
stockholders
|
|
$
495
|
$
300
|
|
|
|
|
Net income (loss)
per common share - basic
|
|
$
0.34
|
$
0.21
|
Net income (loss)
per common share - diluted
|
|
$
0.33
|
$
0.21
|
|
|
|
|
Weighted-average
shares outstanding
|
|
|
|
Basic
|
|
1,468.4
|
1,435.8
|
Diluted
|
|
1,481.7
|
1,446.0
|
BOSTON SCIENTIFIC
CORPORATION
NON-GAAP NET INCOME AND
NET INCOME PER SHARE RECONCILIATIONS
(Unaudited)
|
|
|
|
|
Three Months Ended
March 31, 2024
|
|
(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
Noncontrolling
Interests
|
Net Income
(Loss)
Attributable to
Boston
Scientific
Common
Stockholders
|
Impact
per
Share
|
|
Reported
|
$
2,648
|
$
1,973
|
$
675
|
$
(67)
|
$
608
|
$
493
|
$
—
|
$
(1)
|
$
495
|
$ 0.33
|
|
Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Amortization
expense
|
—
|
(214)
|
214
|
—
|
214
|
184
|
—
|
2
|
182
|
0.12
|
|
Acquisition/divestiture-related net
charges (credits)
|
10
|
(54)
|
64
|
(0)
|
64
|
77
|
—
|
—
|
77
|
0.05
|
|
Restructuring and
restructuring-
related net charges (credits)
|
25
|
(21)
|
46
|
—
|
46
|
40
|
—
|
—
|
40
|
0.03
|
|
Investment portfolio
net losses (gains)
and impairments
|
—
|
—
|
—
|
(14)
|
(14)
|
(11)
|
—
|
—
|
(11)
|
(0.01)
|
|
EU MDR implementation
costs
|
9
|
(5)
|
14
|
—
|
14
|
12
|
—
|
—
|
12
|
0.01
|
|
Deferred tax expenses
(benefits)
|
—
|
—
|
—
|
—
|
—
|
37
|
—
|
—
|
37
|
0.02
|
|
Adjusted
|
$
2,692
|
$
1,680
|
$
1,012
|
$
(80)
|
$
932
|
$
833
|
$
—
|
$
1
|
$
832
|
$ 0.56
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31, 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
Noncontrolling
Interests
|
Net Income
(Loss)
Attributable to
Boston
Scientific
Common
Stockholders
|
Impact
per
Share(1)
|
|
Reported
|
$
2,349
|
$
1,797
|
$
552
|
$
(108)
|
$
444
|
$
314
|
$
(14)
|
$
—
|
$
300
|
$ 0.21
|
|
Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Amortization
expense
|
—
|
(203)
|
203
|
—
|
203
|
175
|
—
|
—
|
175
|
0.12
|
|
Acquisition/divestiture-related net
charges (credits)
|
11
|
(39)
|
50
|
9
|
59
|
66
|
—
|
—
|
66
|
0.05
|
|
Restructuring and
restructuring-
related net charges (credits)
|
17
|
(27)
|
44
|
—
|
44
|
37
|
—
|
—
|
37
|
0.03
|
|
Investment portfolio
net losses (gains)
and impairments
|
—
|
—
|
—
|
21
|
21
|
16
|
—
|
—
|
16
|
0.01
|
|
EU MDR implementation
costs
|
11
|
(5)
|
16
|
—
|
16
|
14
|
—
|
—
|
14
|
0.01
|
|
Deferred tax expenses
(benefits)
|
—
|
—
|
—
|
—
|
—
|
41
|
—
|
—
|
41
|
0.03
|
|
Discrete tax
items
|
—
|
—
|
—
|
—
|
—
|
25
|
—
|
—
|
25
|
0.02
|
|
Adjusted
|
$
2,388
|
$
1,523
|
$
865
|
$
(78)
|
$
787
|
$
687
|
$
(14)
|
$
—
|
$
673
|
$ 0.47
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)For
the three months ended March 31, 2023, 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 within 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
Q2 and FY 2024 GUIDANCE
RECONCILIATIONS
(Unaudited)
Net Sales
|
|
Q2 2024
Estimate
|
|
Full Year 2024
Estimate
|
|
|
(Low)
|
(High)
|
|
(Low)
|
(High)
|
Reported
growth
|
|
10.5 %
|
12.5 %
|
|
11.0 %
|
13.0 %
|
Impact of foreign
currency fluctuations
|
|
1.0 %
|
1.0 %
|
|
0.5 %
|
0.5 %
|
Operational
growth
|
|
11.5 %
|
13.5 %
|
|
11.5 %
|
13.5 %
|
Impact of
acquisitions/divestitures
|
|
(1.5) %
|
(1.5) %
|
|
(1.5) %
|
(1.5) %
|
Organic
growth
|
|
10.0 %
|
12.0 %
|
|
10.0 %
|
12.0 %
|
Earnings per Share
|
|
Q2 2024
Estimate
|
|
Full Year 2024
Estimate
|
|
|
(Low)
|
(High)
|
|
(Low)
|
(High)
|
GAAP
results
|
|
$
0.35
|
$
0.37
|
|
$
1.43
|
$
1.48
|
|
|
|
|
|
|
|
Amortization
expense
|
|
0.12
|
0.12
|
|
0.48
|
0.48
|
Acquisition/divestiture-related net charges
(credits)
|
|
0.03
|
0.03
|
|
0.13
|
0.13
|
Restructuring and
restructuring-related net charges
(credits)
|
|
0.03
|
0.03
|
|
0.11
|
0.11
|
Other
adjustments
|
|
0.04
|
0.04
|
|
0.14
|
0.14
|
Adjusted
results
|
|
$
0.57
|
$
0.59
|
|
$
2.29
|
$
2.34
|
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 other intangible asset impairment charges,
acquisition/divestiture-related net charges (credits), investment
portfolio net losses (gains) and impairments, restructuring and
restructuring-related net charges (credits), certain
litigation-related net charges (credits), EU MDR implementation
costs, debt extinguishment net charges, deferred tax expenses
(benefits) and certain 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 reported 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.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/boston-scientific-announces-results-for-first-quarter-2024-302125332.html
SOURCE Boston Scientific Corporation