MARLBOROUGH, Mass.,
April 25, 2018 /PRNewswire/ -- Boston Scientific
Corporation (NYSE: BSX) generated sales of $2.379 billion during the first quarter ended
March 31, 2018. This represents growth of 10.1 percent on a
reported basis, 6.2 percent on an operational1 basis and
5.2 percent on an organic2 basis, all compared to the
prior year period. The company reported GAAP earnings of
$298 million or $0.21 per share (EPS), compared to GAAP earnings
of $290 million or $0.21 per share a year ago, and achieved adjusted
earnings per share of $0.33 for the
period, compared to $0.29 a year
ago.
"Our consistently strong performance reflects our team's ongoing
dedication to patients and customers," said Mike Mahoney, chairman and chief executive
officer, Boston Scientific. "With our increasingly diversified
portfolio and resilience in a rapidly-evolving global landscape, we
are excited about our outlook."
First quarter financial results and recent
developments:
- Reported first quarter sales of $2.379
billion, compared to the company's guidance range of
$2.320 to $2.350 billion, representing an increase of 10.1
percent on a reported basis, 6.2 percent on an operational basis
and 5.2 percent on an organic basis, all compared to the prior year
period.
- Reported GAAP earnings of $0.21
per share compared to the company's guidance range of $0.19 to $0.22 per
share. Achieved adjusted earnings per share of $0.33 compared to the guidance range of
$0.30 to $0.32 per share.
- Created Rhythm and Neuro segment, which includes Cardiac Rhythm
Management (CRM), Electrophysiology and Neuromodulation (previously
included in the MedSurg segment), to align the company's business
and organizational structure focused on active implantable devices.
Also combined the Middle East and
Africa (MEA) organizations
(previously included with Asia-Pacific) with Europe to create the EMEA region. These
changes are effective January 1,
2018; year over year growth rates have been updated
accordingly.
- Achieved first quarter revenue growth in all segments, compared
to the prior year period:
-
- MedSurg: 10.9 percent reported, 7.4 percent operational and
organic
- Rhythm and Neuro: 10.2 percent reported, 6.4 percent
operational and organic
- Cardiovascular: 9.5 percent reported, 5.2 percent operational
and 2.7 percent organic
- Delivered revenue growth in all regions, compared to the prior
year period:
-
- U.S.: 4.8 percent reported, operational and organic
- EMEA (Europe, Middle East and Africa): 23.9 percent reported, 10.0 percent
operational and 5.7 percent organic
- APAC (Asia-Pacific): 12.0
percent reported, 5.8 percent operational and organic
- Emerging Markets3: 22.6 percent reported, 17.2
percent operational and 16.7 percent organic
- Attained new commercial and clinical milestones for the
WATCHMAN™ Left Atrial Appendage Closure (LAAC) Device: reached the
50,000th global implant of the device and presented positive
late-breaking clinical trial data from the SALUTE trial, designed
to achieve regulatory approval of the WATCHMAN device in
Japan, presented during a session
at the 82nd Annual Scientific Meeting of the Japanese Circulation
Society.
- Achieved clinical milestone with the newer generation Ranger™
Drug Coated Balloon (DCB)4 as data from the
investigator-sponsored COMPARE-1 trial, the first randomized
controlled head-to-head trial comparing two DCB technologies, were
presented at the LINC Congress in Leipzig, Germany, suggesting comparable
patency with lower dose Ranger DCB versus higher dose IN.PACT™ DCB
(Medtronic) and that Ranger is an effective treatment option of
femoral-popliteal artery disease.
- Completed enrollment of more than 2,000 patients in the EVOLVE
Short Dual Anti-Platelet Therapy (DAPT) study, a global,
prospective trial designed to assess the safety of three-month DAPT
in patients at high risk of bleeding who have undergone
percutaneous coronary intervention with the SYNERGY Bioabsorbable
Polymer stent system. Current medical guidelines provide physicians
with limited data on appropriate DAPT duration for patients at high
risk of bleeding.
- Announced one-year data from the INTREPID study, the first and
only prospective, double-blind, randomized, sham-controlled,
multi-center study of deep brain stimulation (DBS) for advanced,
levodopa responsive Parkinson's disease in the U.S.; the study
supported the recent U.S. Food and Drug Administration (FDA)
approval of the VERCISE™ DBS System.
- Acquired nVision Medical Corporation, a privately-held company
which developed the first and only device cleared by the U.S. FDA
to collect cells from the fallopian tubes, offering a potential
platform for earlier diagnosis of ovarian cancer and the prevention
of unnecessary surgeries to remove ovaries and fallopian tubes.
- Entered into a definitive agreement to acquire NxThera, Inc.,
which has developed and commercialized the Rezûm® system, a
minimally invasive therapy which would expand the company's
portfolio of treatment options for men with symptoms of benign
prostatic hyperplasia (BPH).
- Acquired Securus Medical Group, Inc., which will add a thermal
esophageal monitoring system to the electrophysiology cardiac
ablation portfolio that may prevent esophageal injury during atrial
ablation procedures by offering real-time, accurate temperature
sensing.
- Acquired EMcision, Limited, expanding the endoscopy portfolio
to include the Habib™ EndoHPB probe, a novel endoscopic device
which uses radiofrequency bipolar energy to ablate malignant and
benign tissue and reduce duct obstruction to help physicians in
their treatment and palliative care of patients with
pancreaticobiliary cancers.
- Completed a public offering of $1.0
billion aggregate principal amount of 4.000% senior notes
due March 1, 2028.
- Announced the company will host an investor event and webcast
on May 11, 2018 to provide a
presentation on and answer questions about the Cardiac Rhythm
Management and Electrophysiology portfolio in connection with
attendance at the 2018 Annual Heart Rhythm Society Scientific
Sessions in Boston, MA. The event
is scheduled to begin at 12:15 p.m.
EDT and adjourn at approximately 1:15
p.m. EDT, and will be accessible on the Investor Relations
website.
1. Operational
revenue growth excludes the impact of foreign currency
fluctuations. 2. Organic revenue growth excludes the
impact of foreign currency fluctuations and sales from the
acquisition of Symetis SA. 3. We define Emerging Markets
as including certain countries that we believe have strong growth
potential based on their economic conditions, healthcare
sectors and our global capabilities. Currently, we include 20
countries in our definition of Emerging Markets. 4.
Ranger DCB is an investigational device and not available for sale
in the U.S. CE Marked.
|
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
Significant Acquisitions
|
|
Organic
Basis
|
(in
millions)
|
2018
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Endoscopy
|
$
|
418
|
|
$
|
379
|
|
|
10.2%
|
|
4.0%
|
|
6.2%
|
|
—%
|
|
6.2%
|
|
Urology
and Pelvic Health
|
293
|
|
262
|
|
|
11.8%
|
|
2.6%
|
|
9.2%
|
|
—%
|
|
9.2%
|
|
MedSurg*
|
711
|
|
641
|
|
|
10.9%
|
|
3.5%
|
|
7.4%
|
|
—%
|
|
7.4%
|
|
Cardiac
Rhythm Management
|
493
|
|
463
|
|
|
6.5%
|
|
4.1%
|
|
2.4%
|
|
—%
|
|
2.4%
|
|
Electrophysiology
|
75
|
|
64
|
|
|
17.2%
|
|
5.7%
|
|
11.5%
|
|
—%
|
|
11.5%
|
|
Neuromodulation
|
169
|
|
141
|
|
|
19.3%
|
|
2.1%
|
|
17.2%
|
|
—%
|
|
17.2%
|
|
Rhythm and
Neuro*
|
736
|
|
668
|
|
|
10.2%
|
|
3.8%
|
|
6.4%
|
|
—%
|
|
6.4%
|
|
Interventional Cardiology
|
645
|
|
590
|
|
|
9.3%
|
|
4.5%
|
|
4.8%
|
|
3.5%
|
|
1.3%
|
|
Peripheral Interventions
|
288
|
|
261
|
|
|
10.1%
|
|
4.1%
|
|
6.0%
|
|
—%
|
|
6.0%
|
|
Cardiovascular
|
933
|
|
851
|
|
|
9.5%
|
|
4.3%
|
|
5.2%
|
|
2.5%
|
|
2.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Sales
|
$
|
2,379
|
|
$
|
2,160
|
|
|
10.1%
|
|
3.9%
|
|
6.2%
|
|
1.0%
|
|
5.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*Prior period
segment amounts revised in accordance with ASC 280, Segment
Reporting, to reflect the reclassification of Neuromodulation from
the MedSurg segment to the Rhythm and Neuro segment, effective
January 1, 2018.
|
|
|
|
|
|
|
|
|
|
Change
|
|
|
Three Months
Ended
March 31,
|
|
Reported
Basis
|
|
Less: Impact
of Foreign
Currency
Fluctuations
|
|
Operational
Basis
|
|
Less:
Impact of Significant Acquisitions
|
|
Organic
Basis
|
(in
millions)
|
2018
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
|
$
|
1,310
|
|
$
|
1,249
|
|
|
4.8%
|
|
—%
|
|
4.8%
|
|
—%
|
|
4.8%
|
|
EMEA**
|
563
|
|
454
|
|
|
23.9%
|
|
13.9%
|
|
10.0%
|
|
4.3%
|
|
5.7%
|
|
APAC**
|
415
|
|
371
|
|
|
12.0%
|
|
6.2%
|
|
5.8%
|
|
—%
|
|
5.8%
|
|
Latin America and
Canada
|
91
|
|
84
|
|
|
9.2%
|
|
(0.3)%
|
|
9.5%
|
|
0.9%
|
|
8.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Sales
|
$
|
2,379
|
|
$
|
2,160
|
|
|
10.1%
|
|
3.9%
|
|
6.2%
|
|
1.0%
|
|
5.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Emerging
Markets
|
$
|
255
|
|
$
|
208
|
|
|
22.6%
|
|
5.4%
|
|
17.2%
|
|
0.5%
|
|
16.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
**Regional totals
reflect the reclassification of Middle East and Africa from the
former AMEA region to Europe, effective January 1,
2018.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts may not
add due to rounding. Growth rates are based on actual, non-rounded
amounts and may not recalculate precisely.
|
|
|
|
Sales growth rates
that exclude the impact of foreign currency fluctuations and/or the
impact of recent acquisitions with significant sales are not
prepared in accordance with U.S. GAAP.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Guidance for Full Year and Second Quarter 2018
The company now estimates revenue for the full year 2018 to be
in a range of $9.750 to $9.900 billion (compared to prior guidance of
$9.650 to $9.800 billion), which versus the prior year
period represents a growth range of approximately 8 to 10 percent
on a reported basis and growth of approximately 5 to 7 percent on
an organic basis excluding the impact of foreign currency
fluctuations and contribution of approximately 40 basis points from
Symetis. The company now estimates income on a GAAP basis in a
range of $0.90 to $0.94 per share (compared to prior guidance of
$0.93 to $0.98 per share) and estimates adjusted earnings,
excluding amortization expense, intangible asset impairment
charges, acquisition-related, restructuring and
restructuring-related net charges (credits), investment
impairment charges and certain discrete tax items, in a range of
$1.37 to $1.41 per share (compared to prior guidance of
$1.35 to $1.39 per share).
The company estimates sales for the second quarter of 2018 to be
in a range of $2.450 to $2.500 billion, which versus the prior year
period represents a growth range of approximately 9 to 11 percent
on a reported basis and a growth range of approximately 5 to 7
percent on an organic basis, excluding the impact of foreign
currency fluctuations and contribution of approximately 70 basis
points from Symetis. The company estimates earnings on a GAAP basis
in a range of $0.21 to $0.23 per share and adjusted earnings, excluding
amortization expense, acquisition-related and restructuring and
restructuring-related net charges (credits), in a range of
$0.33 to $0.35 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. EDT. 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 35 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," "aiming" 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 2018, our
financial performance, our business plans and our positioning for
revenue and earnings growth. 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 risks and uncertainties, in
some cases, have affected and in the future 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: future economic, political, competitive,
reimbursement and regulatory conditions, new product introductions
and the market acceptance of those products, markets for our
products, expected pricing environment, expected procedural
volumes, the closing and integration of acquisitions, clinical
trial results, demographic trends, intellectual property rights,
litigation, financial market conditions, the execution and effect
of our restructuring program, 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. 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 IA - 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 statement 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. Prior year balances were subject to
rounding.
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
|
|
kate.haranis@bsci.com
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BSXInvestorRelations@bsci.com
|
BOSTON SCIENTIFIC
CORPORATION CONDENSED CONSOLIDATED GAAP RESULTS OF
OPERATIONS
(Unaudited)
|
|
|
|
Three Months Ended
March 31,
|
in millions,
except per share data
|
2018
|
|
2017
|
|
|
|
|
Net sales
|
$
|
2,379
|
|
$
|
2,160
|
Cost of products
sold
|
672
|
|
650
|
Gross
profit
|
1,707
|
|
1,510
|
|
|
|
|
Operating
expenses:
|
|
|
|
Selling, general and
administrative expenses
|
860
|
|
794
|
Research and
development expenses
|
261
|
|
235
|
Royalty
expense
|
18
|
|
17
|
Amortization
expense
|
141
|
|
143
|
Intangible asset
impairment charges
|
1
|
|
—
|
Contingent
consideration expense (benefit)
|
5
|
|
(50)
|
Restructuring charges
(credits)
|
13
|
|
4
|
Litigation-related
net charges (credits)
|
—
|
|
3
|
|
1,300
|
|
1,146
|
Operating income
(loss)
|
407
|
|
364
|
|
|
|
|
Other income
(expense):
|
|
|
|
Interest
expense
|
(61)
|
|
(57)
|
Other, net
|
(23)
|
|
(2)
|
Income
(loss) before income taxes
|
323
|
|
305
|
Income tax expense
(benefit)
|
26
|
|
15
|
Net income
(loss)
|
$
|
298
|
|
$
|
290
|
|
|
|
|
Net income (loss)
per common share - basic
|
$
|
0.22
|
|
$
|
0.21
|
Net income (loss)
per common share - assuming dilution
|
$
|
0.21
|
|
$
|
0.21
|
|
|
|
|
Weighted-average
shares outstanding
|
|
|
|
Basic
|
1,376.5
|
|
1,365.4
|
Assuming
dilution
|
1,396.8
|
|
1,390.2
|
BOSTON SCIENTIFIC
CORPORATION NON-GAAP NET INCOME AND NET INCOME PER SHARE
RECONCILIATIONS
(Unaudited)
|
|
|
|
|
|
Three Months Ended
March 31, 2018
|
in millions,
except per share data
|
|
Cost of Products
Sold
|
|
SG&A
Expenses
|
|
R&D
Expenses
|
|
Operating Income
(Loss)
|
|
Pre-Tax Income
(Loss)
|
|
Net
Income
(Loss)
|
|
Impact
per
Share
|
GAAP net income
(loss)
|
|
$
|
672
|
|
$
|
860
|
|
$
|
261
|
|
$
|
407
|
|
$
|
323
|
|
$
|
298
|
|
$
|
0.21
|
Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization
expense
|
|
—
|
|
—
|
|
—
|
|
141
|
|
141
|
|
119
|
|
0.08
|
Intangible asset
impairment charges
|
|
—
|
|
—
|
|
—
|
|
1
|
|
1
|
|
1
|
|
0.00
|
Acquisition-related
net charges (credits)
|
|
(6)
|
|
(7)
|
|
(7)
|
|
25
|
|
25
|
|
20
|
|
0.01
|
Restructuring and
restructuring-related net charges (credits)
|
|
(7)
|
|
(8)
|
|
—
|
|
28
|
|
28
|
|
22
|
|
0.02
|
Investment impairment
charges
|
|
—
|
|
—
|
|
—
|
|
—
|
|
5
|
|
5
|
|
0.00
|
Tax Cuts and Jobs Act
net charges
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(9)
|
|
(0.01)
|
Adjusted net
income
|
|
$
|
659
|
|
$
|
846
|
|
$
|
254
|
|
$
|
603
|
|
$
|
524
|
|
$
|
455
|
|
$
|
0.33
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31, 2017
|
in millions,
except per share data
|
|
Cost of Products
Sold
|
|
SG&A
Expenses
|
|
R&D
Expenses
|
|
Operating Income
(Loss)
|
|
Pre-Tax Income
(Loss)
|
|
Net
Income
(Loss)
|
|
Impact
per
Share
|
GAAP net income
(loss)
|
|
$
|
650
|
|
$
|
794
|
|
$
|
235
|
|
$
|
364
|
|
$
|
305
|
|
$
|
290
|
|
$
|
0.21
|
Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization
expense
|
|
—
|
|
—
|
|
—
|
|
143
|
|
143
|
|
122
|
|
0.09
|
Acquisition-related
net charges (credits)
|
|
(3)
|
|
(11)
|
|
(3)
|
|
(33)
|
|
(33)
|
|
(32)
|
|
(0.02)
|
Restructuring and
restructuring-related net charges (credits)
|
|
(12)
|
|
(3)
|
|
—
|
|
19
|
|
19
|
|
15
|
|
0.01
|
Litigation-related
net charges (credits)
|
|
—
|
|
—
|
|
—
|
|
3
|
|
3
|
|
2
|
|
0.00
|
Adjusted net
income
|
|
$
|
635
|
|
$
|
780
|
|
$
|
232
|
|
$
|
496
|
|
$
|
437
|
|
$
|
397
|
|
$
|
0.29
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
An explanation of
the company's use of these non-GAAP financial measures is provided
at the end of this document.
|
BOSTON SCIENTIFIC
CORPORATION PRIOR YEAR RECLASSIFIED SALES INFORMATION BY
BUSINESS AND REGION
(Unaudited)
|
|
|
|
|
|
NET SALES BY
BUSINESS
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
(in
millions)
|
June 30,
2017
|
September 30,
2017
|
December 31,
2017
|
|
December 31,
2017
|
|
|
|
|
|
|
|
|
Endoscopy
|
$
|
400
|
$
|
403
|
$
|
436
|
|
$
|
1,619
|
|
Urology
and Pelvic Health
|
280
|
274
|
308
|
|
1,124
|
|
MedSurg*
|
680
|
676
|
745
|
|
2,742
|
|
Cardiac
Rhythm Management
|
480
|
463
|
488
|
|
1,895
|
|
Electrophysiology
|
67
|
71
|
77
|
|
278
|
|
Neuromodulation
|
154
|
154
|
186
|
|
635
|
|
Rhythm and
Neuro*
|
700
|
689
|
751
|
|
2,808
|
|
Interventional Cardiology
|
603
|
589
|
636
|
|
2,419
|
|
Peripheral Interventions
|
273
|
268
|
277
|
|
1,081
|
|
Cardiovascular
|
876
|
857
|
913
|
|
3,500
|
|
|
|
|
|
|
|
Net
Sales
|
$
|
2,257
|
$
|
2,222
|
$
|
2,408
|
|
$
|
9,048
|
|
|
|
|
|
|
|
|
*Prior period
segment amounts revised in accordance with ASC 280, Segment
Reporting, to reflect the reclassification of Neuromodulation from
the MedSurg segment to the Rhythm and Neuro segment, effective
January 1, 2018.
|
|
|
|
|
NET SALES BY
REGION
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
(in
millions)
|
June 30,
2017
|
September 30,
2017
|
December 31,
2017
|
|
December 31,
2017
|
|
|
|
|
|
|
|
|
U.S.
|
$
|
1,291
|
|
$
|
1,257
|
|
$
|
1,364
|
|
|
$
|
5,162
|
|
|
EMEA**
|
482
|
|
474
|
|
529
|
|
|
1,940
|
|
|
APAC**
|
393
|
|
401
|
|
423
|
|
|
1,587
|
|
|
Latin America and
Canada
|
90
|
|
91
|
|
94
|
|
|
358
|
|
|
|
|
|
|
|
|
|
Net
Sales
|
$
|
2,257
|
|
$
|
2,222
|
|
$
|
2,408
|
|
|
$
|
9,048
|
|
|
|
|
|
|
|
|
|
**Regional totals
reflect the reclassification of Middle East and Africa from the
former AMEA region to Europe, effective January 1,
2018.
|
BOSTON SCIENTIFIC
CORPORATION ESTIMATED REVENUE NON-GAAP GROWTH RATES AND
NON-GAAP NET INCOME PER SHARE RECONCILIATIONS
(Unaudited)
|
|
|
|
|
|
|
Q2 and Full Year
2018 Estimated Revenue Growth Rates
|
|
|
|
|
|
|
|
Q2 2018
Estimate
|
|
Full Year 2018
Estimate
|
|
Prior Full
Year
2018
Estimate
|
|
(Low)
|
(High)
|
|
(Low)
|
(High)
|
|
(Low)
|
(High)
|
Estimated GAAP
sales growth
|
9%
|
11%
|
|
8%
|
10%
|
|
7%
|
8%
|
Less: Estimated
impact of foreign currency
fluctuations and significant acquisitions
|
4%
|
4%
|
|
3%
|
3%
|
|
2%
|
2%
|
Estimated sales
growth, organic*
|
5%
|
7%
|
|
5%
|
7%
|
|
5%
|
6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*Excludes
contribution of approximately 70 basis points for the second
quarter and 40 basis points for the full year from Symetis. Prior
Full Year 2018 Estimate excluded contribution of 30 basis points
from Symetis.
|
|
|
Q2 and Full Year
2018 Earnings per Share Guidance
|
|
|
|
Q2 2018
Estimate
|
|
Full Year 2018
Estimate
|
|
Prior Full
Year
2018 Estimate
|
|
(Low)
|
(High)
|
|
(Low)
|
(High)
|
|
(Low)
|
(High)
|
GAAP
results
|
$
|
0.21
|
|
$
|
0.23
|
|
|
$
|
0.90
|
|
$
|
0.94
|
|
|
$
|
0.93
|
|
$
|
0.98
|
|
|
|
|
|
|
|
|
|
|
Estimated
amortization expense
|
0.08
|
|
0.08
|
|
|
0.35
|
|
0.35
|
|
|
0.33
|
|
0.33
|
|
Estimated
acquisition-related net charges (credits)
|
0.02
|
|
0.02
|
|
|
0.05
|
|
0.05
|
|
|
0.02
|
|
0.02
|
|
Estimated
restructuring and restructuring-related net charges
(credits)
|
0.02
|
|
0.02
|
|
|
0.08
|
|
0.08
|
|
|
0.07
|
|
0.06
|
|
Intangible asset
impairment charges
|
—
|
|
—
|
|
|
0.00
|
|
0.00
|
|
|
—
|
|
—
|
|
Investment impairment
charges
|
—
|
|
—
|
|
|
0.00
|
|
0.00
|
|
|
—
|
|
—
|
|
Tax Cuts and Jobs Act
net charges
|
—
|
|
—
|
|
|
(0.01)
|
|
(0.01)
|
|
|
—
|
|
—
|
|
|
|
|
|
|
|
|
|
|
Adjusted
results
|
$
|
0.33
|
|
$
|
0.35
|
|
|
$
|
1.37
|
|
$
|
1.41
|
|
|
$
|
1.35
|
|
$
|
1.39
|
|
|
|
|
|
|
|
|
|
|
|
Prior Guidance
Estimate - Q1 2018 Earnings per Share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1 2018
Estimate
|
|
|
|
|
|
(Low)
|
(High)
|
|
|
|
|
GAAP
results
|
$
|
0.19
|
|
$
|
0.22
|
|
|
|
|
|
|
|
|
|
|
|
|
Estimated
amortization expense
|
0.08
|
|
0.08
|
|
|
|
|
|
Estimated
acquisition-related net charges (credits)
|
0.01
|
|
0.01
|
|
|
|
|
|
Estimated
restructuring and restructuring-related net charges
(credits)
|
0.02
|
|
0.01
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
results
|
$
|
0.30
|
|
$
|
0.32
|
|
|
|
|
|
|
|
|
Use of Non-GAAP Financial Measures
To supplement our consolidated financial statements presented on
a GAAP basis, we disclose certain non-GAAP financial measures,
including adjusted net income (earnings) and adjusted net income
(earnings) per share 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 acquisitions with significant
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 (earnings) and adjusted net
income (earnings) per share we exclude certain charges (credits)
from GAAP net income, including amortization expense, intangible
asset impairment charges, acquisition-related net charges
(credits), restructuring and restructuring-related net charges
(credits), litigation-related net charges (credits), certain
investment impairment charges and certain discrete tax items,
including net income tax charges resulting from the enactment of
the Tax Cuts and Jobs Act in December
2017. Amounts are tax effected 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 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 and adjusted net income per share is GAAP net income and
GAAP net income per share.
To calculate operational net sales, 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 period. To calculate
organic net sales, we remove the impact of recent acquisitions with
significant sales from operational 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. With
the exception of the impact of recent acquisitions with significant
sales, 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 and adjusted net
income 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