MARLBOROUGH, Mass., Feb. 1, 2023
/PRNewswire/ -- Boston Scientific Corporation (NYSE: BSX) generated
net sales of $3.242 billion during
the fourth quarter of 2022, growing 3.7 percent on a reported
basis, 8.7 percent on an operational1 basis and 7.1
percent on an organic2 basis, all compared to the prior
year period. Included within organic results is a negative
approximately 200 basis point impact associated with unplanned
reserves established for Italian government payback
provisions3. The company reported GAAP net income
available to common stockholders of $126
million or $0.09 per share
(EPS), compared to $80 million or
$0.06 per share a year ago and
achieved adjusted4 EPS of $0.45 for the period, which includes an
approximate $0.04 negative impact of
the Italian payback, compared to $0.45 a year ago.
For the full year 2022, the company generated net sales of
$12.682 billion, growing 6.7 percent
on a reported basis, 11.1 percent on an operational1
basis and 8.7 percent on an organic2 basis, including a
negative 50 basis point impact associated with the Italian
government payback provisions, all compared to the prior year
period. The company reported GAAP net income available to common
stockholders of $642 million or
$0.45 per share, compared to
$985 million or $0.69 per share a year ago, and delivered full
year adjusted4 EPS of $1.71, including the approximate $0.04 negative impact of the Italian payback,
compared to $1.63 a year ago.
"Our global team continues living our mission to transform
lives, and I'm proud of the results we achieved in the fourth
quarter and throughout 2022," said Mike
Mahoney, chairman and chief executive officer, Boston
Scientific. "In the year ahead we remain committed to our goals of
delivering new, meaningful innovations to benefit patients globally
while continuing to deliver differentiated financial
performance."
Fourth quarter financial results and recent
developments:
- Reported net sales of $3.242
billion, representing an increase of 3.7 percent on a
reported basis, compared to the company's guidance range of 2 to 4
percent; 8.7 percent on an operational basis; and 7.1 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 available to common stockholders of
$0.09 per share, compared to the
company's guidance range of $0.23 to
$0.28 per share, and achieved
adjusted EPS of $0.45 per share,
compared to the guidance range of $0.45 to $0.48 per
share.
- Achieved the following net sales growth in each reportable
segment5, compared to the prior year period:
-
- MedSurg: 4.4 percent reported, 8.5 percent operational and
organic
- Cardiovascular: 6.4 percent reported, 12.1 percent operational
and 9.4 percent organic
- Achieved the following net sales growth/(declines) in each
region, compared to the prior year period:
-
- U.S.: 10.5 percent reported and operational
- EMEA (Europe, Middle East and Africa): (0.8) percent reported and 10.8
percent operational
- APAC (Asia-Pacific): (4.1)
percent reported and 9.8 percent operational
- LACA (Latin America and
Canada): 14.6 percent reported and
17.7 percent operational
- Emerging Markets7: 11.6 percent reported and 23.3
percent operational
- Received approval from the Japanese Pharmaceuticals and Medical
Devices Agency (PMDA) for the AGENT™ Drug Coated Balloon
(DCB) in Japan to treat
patients with in-stent restenosis (ISR) and coronary small vessel
disease (SVD), with launch anticipated in the first half of this
year.
- Completed enrollment in the CHAMPION-AF clinical trial, a
randomized, head-to-head study with 3,000 patients evaluating the
safety and efficacy of the WATCHMAN FLX™ Left Atrial Appendage
Closure Device compared to non-vitamin K antagonist oral
anticoagulants for stroke prevention in a broad population of
patients with non-valvular atrial fibrillation.
- Completed enrollment in the SOLIS randomized clinical trial to
assess WaveWriter Spinal Cord Stimulator Systems (SCS) for
the treatment of patients with chronic low back and/or leg pain who
have not undergone spinal surgery (NSBP, Non-Surgical Back Pain/VB,
Virgin Back). The study met its primary endpoint; SCS demonstrated
superior outcomes compared with Conventional Medical Management at
three-month follow-up.
- Began enrollment in the ACURATE Prime XL Nested Registry, which
is designed to assess outcomes from patients receiving the larger
ACURATE Prime™ Aortic Valve XL within the ACURATE IDE
clinical study in the U.S. Also announced, at PCR London Valves,
late-breaking data from the European ACURATE neo2 Post Market
Clinical Follow-up study supporting the clinical procedural success
and safety of the ACURATE neo2™ Aortic Valve System to treat
patients with severe aortic stenosis, including a high procedural
success rate and low rates of mortality and paravalvular leak.
- Presented positive data from the ELEGANCE registry during a
late-breaking presentation at the 2022 Vascular InterVentional
Advances (VIVA) conference, which highlighted that the study is
currently exceeding its goal to increase the representation of
women and underrepresented minorities in clinical trials for
drug-eluting peripheral therapies. Patients enrolled in the
registry will be followed for up to five years, allowing for the
evaluation of long-term outcomes and the gathering of critical
clinical insights into underrepresented patient populations.
- Announced agreement to acquire Apollo Endosurgery, Inc.
(Nasdaq: APEN) , subject to customary closing conditions, to expand
the Boston Scientific endoluminal surgery portfolio and enable a
measured entry into the endobariatric market.
- Announced strategic investment to acquire majority stake in
Acotec Scientific Holdings Limited, a Chinese medical technology
company that offers solutions designed for a variety of
interventional procedures, 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. Unplanned
reserves established in connection with the activation of the
Italian government payback provision, aimed at rationalizing public
spending and requiring medical device companies to pay back a
portion of spend exceeding allocated healthcare
budgets.
|
4. 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), and certain
litigation-related net charges (credits), EU MDR implementation
costs, debt extinguishment charges, deferred tax expenses
(benefits) and discrete tax items.
|
5. In the first
quarter of 2022, we reorganized our operational structure and have
aggregated our core businesses, each of which generate revenues
from the sale of medical devices, into two reportable segments
comprised of MedSurg and Cardiovascular. Within the Cardiovascular
segment, the newly formed Cardiology division represents the
combined former Rhythm Management and Interventional Cardiology
businesses. We have revised prior period amounts to conform
to the current year presentation.
|
6. In 2022, reflects
sales reserves established for Italian government payback
provisions, not allocated to reportable segments. In 2021,
includes net sales associated with Specialty Pharmaceuticals
prior to the sale of the business on March 1, 2021. Specialty
Pharmaceuticals net sales were substantially U.S. based and
presented as a stand-alone operating segment alongside our medical
device reportable segments.
|
7. 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.
|
Fourth Quarter Net Sales by Business and
Region:
|
|
|
|
|
Change
|
|
|
Three Months
Ended
December 31,
|
|
Reported
Basis
|
|
Less: Impact
of Foreign
Currency
Fluctuations
|
|
Operational
Basis
|
|
Less: Impact
of Recent
Acquisitions /
Divestitures
|
|
Organic
Basis
|
(in
millions)
|
2022
|
2021
|
|
|
|
|
|
|
Endoscopy
|
$
571
|
$
558
|
|
2.4 %
|
|
(5.1) %
|
|
7.4 %
|
|
— %
|
|
7.4 %
|
|
Urology
|
477
|
441
|
|
8.2 %
|
|
(3.6) %
|
|
11.8 %
|
|
— %
|
|
11.8 %
|
|
Neuromodulation
|
249
|
244
|
|
2.1 %
|
|
(2.8) %
|
|
4.9 %
|
|
— %
|
|
4.9 %
|
|
MedSurg5
|
1,297
|
1,243
|
|
4.4 %
|
|
(4.1) %
|
|
8.5 %
|
|
— %
|
|
8.5 %
|
|
Cardiology
|
1,529
|
1,422
|
|
7.5 %
|
|
(5.6) %
|
|
13.2 %
|
|
3.6 %
|
|
9.6 %
|
|
Peripheral
Interventions
|
476
|
462
|
|
3.0 %
|
|
(5.8) %
|
|
8.8 %
|
|
— %
|
|
8.8 %
|
|
Cardiovascular5
|
2,005
|
1,884
|
|
6.4 %
|
|
(5.7) %
|
|
12.1 %
|
|
2.7 %
|
|
9.4 %
|
|
|
3,302
|
3,127
|
|
5.6 %
|
|
(5.0) %
|
|
10.7 %
|
|
1.6 %
|
|
9.0 %
|
|
Other6
|
(60)
|
—
|
|
(100.0) %
|
|
— %
|
|
(100.0) %
|
|
— %
|
|
(100.0) %
|
Net
Sales
|
$
3,242
|
$
3,127
|
|
3.7 %
|
|
(5.0) %
|
|
8.7 %
|
|
1.6 %
|
|
7.1 %
|
|
|
|
|
|
|
|
|
|
|
Change
|
|
|
|
|
|
|
Three Months
Ended
December 31,
|
|
Reported
Basis
|
|
Less: Impact
of Foreign
Currency
Fluctuations
|
|
Operational
Basis
|
|
|
|
|
(in
millions)
|
2022
|
2021
|
|
|
|
|
U.S.
|
$
1,986
|
$
1,798
|
|
10.5 %
|
|
— %
|
|
10.5 %
|
|
|
|
|
|
EMEA
|
657
|
662
|
|
(0.8) %
|
|
(11.6) %
|
|
10.8 %
|
|
|
|
|
|
APAC
|
536
|
559
|
|
(4.1) %
|
|
(13.9) %
|
|
9.8 %
|
|
|
|
|
|
LACA
|
122
|
107
|
|
14.6 %
|
|
(3.1) %
|
|
17.7 %
|
|
|
|
|
|
|
3,302
|
3,127
|
|
5.6 %
|
|
(5.0) %
|
|
10.7 %
|
|
|
|
|
|
Other6
|
(60)
|
—
|
|
(100.0) %
|
|
— %
|
|
(100.0) %
|
|
|
|
|
|
Net
Sales
|
$
3,242
|
$
3,127
|
|
3.7 %
|
|
(5.0) %
|
|
8.7 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Emerging
Markets7
|
$
445
|
$
398
|
|
11.6 %
|
|
(11.7) %
|
|
23.3 %
|
|
|
|
|
|
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.
|
Full Year Net Sales by Business and Region:
|
|
|
|
|
Change
|
|
|
Year
Ended
December
31,
|
|
Reported
Basis
|
|
Less: Impact
of Foreign
Currency
Fluctuations
|
|
Operational
Basis
|
|
Less: Impact
of Recent
Acquisitions /
Divestitures
|
|
Organic
Basis
|
(in
millions)
|
2022
|
2021
|
|
|
|
|
|
|
Endoscopy
|
$
2,221
|
$
2,141
|
|
3.7 %
|
|
(4.4) %
|
|
8.1 %
|
|
— %
|
|
8.1 %
|
|
Urology
|
1,773
|
1,583
|
|
12.0 %
|
|
(2.9) %
|
|
14.9 %
|
|
5.3 %
|
|
9.7 %
|
|
Neuromodulation
|
917
|
909
|
|
0.9 %
|
|
(2.6) %
|
|
3.5 %
|
|
— %
|
|
3.5 %
|
|
MedSurg5
|
4,911
|
4,633
|
|
6.0 %
|
|
(3.5) %
|
|
9.5 %
|
|
1.8 %
|
|
7.7 %
|
|
Cardiology
|
5,932
|
5,422
|
|
9.4 %
|
|
(5.1) %
|
|
14.5 %
|
|
4.0 %
|
|
10.4 %
|
|
Peripheral
Interventions
|
1,899
|
1,820
|
|
4.4 %
|
|
(4.8) %
|
|
9.1 %
|
|
— %
|
|
9.1 %
|
|
Cardiovascular5
|
7,831
|
7,242
|
|
8.1 %
|
|
(5.0) %
|
|
13.1 %
|
|
3.0 %
|
|
10.1 %
|
|
|
12,742
|
11,875
|
|
7.3 %
|
|
(4.4) %
|
|
11.7 %
|
|
2.5 %
|
|
9.2 %
|
|
Other6
|
(60)
|
13
|
|
(+100) %
|
|
— %
|
|
(+100) %
|
|
— %
|
|
(+100) %
|
Net
Sales
|
$ 12,682
|
$ 11,888
|
|
6.7 %
|
|
(4.4) %
|
|
11.1 %
|
|
2.4 %
|
|
8.7 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change
|
|
|
|
|
|
|
Year
Ended
December
31,
|
|
Reported
Basis
|
|
Less: Impact
of Foreign
Currency
Fluctuations
|
|
Operational
Basis
|
|
|
|
|
(in
millions)
|
2022
|
2021
|
|
|
|
|
U.S.
|
$
7,632
|
$
6,901
|
|
10.6 %
|
|
— %
|
|
10.6 %
|
|
|
|
|
|
EMEA
|
2,526
|
2,518
|
|
0.3 %
|
|
(12.1) %
|
|
12.4 %
|
|
|
|
|
|
APAC
|
2,116
|
2,070
|
|
2.2 %
|
|
(10.2) %
|
|
12.4 %
|
|
|
|
|
|
LACA
|
469
|
386
|
|
21.6 %
|
|
(2.2) %
|
|
23.8 %
|
|
|
|
|
|
|
12,742
|
11,875
|
|
7.3 %
|
|
(4.4) %
|
|
11.7 %
|
|
|
|
|
|
Other6
|
(60)
|
13
|
|
(+100) %
|
|
— %
|
|
(+100) %
|
|
|
|
|
|
Net
Sales
|
$ 12,682
|
$ 11,888
|
|
6.7 %
|
|
(4.4) %
|
|
11.1 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Emerging
Markets7
|
$
1,715
|
$
1,429
|
|
20.0 %
|
|
(9.3) %
|
|
29.3 %
|
|
|
|
|
|
|
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 First Quarter 2023
The company estimates net sales growth for the full year 2023,
versus the prior year period, to be in a range of approximately 5
to 7 percent on a reported basis, and approximately 6 to 8 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 $1.11 to $1.21 and
estimates adjusted EPS, excluding certain charges (credits)
of $1.86 to $1.93.
The company estimates net sales growth for the first quarter of
2023, versus the prior year period, to be in a range of
approximately 3 to 5 percent on a reported basis, and
approximately 6 to 8 percent on an organic basis. First quarter
organic 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 $0.23 to $0.26 and adjusted EPS, excluding certain charges
(credits) of $0.42 to $0.44.
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," "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 first quarter and full year 2023; our
financial performance; 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 the ongoing COVID-19 pandemic on
our operations and financial results; 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;
labor shortages and increases in labor costs; new product
introductions; expected procedural volumes; the closing and
integration of acquisitions; demographic trends; intellectual
property; litigation; financial market conditions; the execution
and effect of our business strategy, including our cost-savings and
growth initiatives; and future business decisions made by us and
our competitors. New risks and uncertainties may arise from time to
time and are difficult to predict accurately and many of them are
beyond our control. For a further list and description of
these and other important risks and uncertainties that may affect
our future operations, see Part I, Item 1A - Risk
Factors in our most recent Annual Report on Form 10-K filed
with the Securities and Exchange Commission, which we may update in
Part II, Item 1A - Risk Factors in Quarterly Reports on
Form 10-Q we have filed or will file hereafter. We disclaim
any intention or obligation to publicly update or revise any
forward-looking statements to reflect any change in our
expectations or in events, conditions, or circumstances on which
those expectations may be based, or that may affect the likelihood
that actual results will differ from those contained in the
forward-looking statements. This cautionary statement is
applicable to all forward-looking statements contained in this
press release.
Note: Amounts reported in millions within this press
release are computed based on the amounts in thousands. As a
result, the sum of the components reported in millions may not
equal the total amount reported in millions due to rounding.
Certain columns and rows within tables may not add due to the use
of rounded numbers. Percentages presented are calculated from the
underlying numbers in dollars.
Use of Non-GAAP Financial Information
A
reconciliation of the company's non-GAAP financial measures to the
corresponding GAAP measures, and an explanation of the company's
use of these non-GAAP financial measures, is included in the
exhibits attached to this press release.
CONTACT:
|
|
|
|
|
Media:
|
Kate Haranis
|
|
Investors:
|
Lauren
Tengler
|
|
508-683-6585
(office)
|
|
|
508-683-4479
(office)
|
|
Media
Relations
|
|
|
Investor
Relations
|
|
Boston Scientific
Corporation
|
|
|
Boston Scientific
Corporation
|
|
kate.haranis@bsci.com
|
|
|
BSXInvestorRelations@bsci.com
|
BOSTON SCIENTIFIC
CORPORATION
|
CONSOLIDATED STATEMENTS
OF OPERATIONS
|
(Unaudited)
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
in millions, except
per share data
|
2022
|
2021
|
|
2022
|
2021
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
$
3,242
|
$
3,127
|
|
$
12,682
|
$
11,888
|
Cost of products
sold
|
1,011
|
971
|
|
3,956
|
3,711
|
Gross profit
|
2,231
|
2,155
|
|
8,727
|
8,177
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
Selling, general and
administrative expenses
|
1,163
|
1,153
|
|
4,520
|
4,359
|
Research and
development expenses
|
330
|
320
|
|
1,323
|
1,204
|
Royalty
expense
|
13
|
11
|
|
47
|
49
|
Amortization
expense
|
199
|
192
|
|
803
|
741
|
Intangible asset
impairment charges
|
—
|
197
|
|
132
|
370
|
Contingent
consideration net expense (benefit)
|
(33)
|
(18)
|
|
35
|
(136)
|
Restructuring net
charges (credits)
|
6
|
23
|
|
24
|
40
|
Litigation-related net
charges (credits)
|
131
|
128
|
|
173
|
430
|
Loss (gain) on
disposal of businesses and assets
|
22
|
(30)
|
|
22
|
(78)
|
|
1,830
|
1,975
|
|
7,078
|
6,978
|
Operating income
(loss)
|
402
|
180
|
|
1,649
|
1,199
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
Interest
expense
|
(64)
|
(87)
|
|
(470)
|
(341)
|
Other, net
|
58
|
26
|
|
(38)
|
218
|
Income
(loss) before income taxes
|
396
|
120
|
|
1,141
|
1,076
|
Income tax expense
(benefit)
|
256
|
26
|
|
443
|
36
|
Net income
(loss)
|
$
140
|
$
94
|
|
$
698
|
$
1,041
|
Preferred stock
dividends
|
(14)
|
(14)
|
|
(55)
|
(55)
|
Net income (loss)
available to common stockholders
|
$
126
|
$
80
|
|
$
642
|
$
985
|
|
|
|
|
|
|
Net income (loss)
per common share - basic
|
$
0.09
|
$
0.06
|
|
$
0.45
|
$
0.69
|
Net income (loss)
per common share - assuming dilution
|
$
0.09
|
$
0.06
|
|
$
0.45
|
$
0.69
|
|
|
|
|
|
|
Weighted-average
shares outstanding
|
|
|
|
|
|
Basic
|
1,432.7
|
1,425.2
|
|
1,430.5
|
1,422.3
|
Assuming
dilution
|
1,442.4
|
1,436.2
|
|
1,439.7
|
1,433.8
|
BOSTON SCIENTIFIC
CORPORATION
|
NON-GAAP NET INCOME AND
NET INCOME PER SHARE RECONCILIATIONS
|
(Unaudited)
|
|
|
Three Months Ended
December 31, 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)
Available to
Common
Stockholders
|
Impact per
Share(1)
|
Reported
|
$
2,231
|
$
1,830
|
$
402
|
$
(6)
|
$
396
|
$
140
|
$
(14)
|
$
126
|
$
0.09
|
Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
|
|
Amortization
expense
|
—
|
(199)
|
199
|
—
|
199
|
175
|
—
|
175
|
0.12
|
Acquisition /
divestitures-related net charges (credits)
|
24
|
(29)
|
53
|
(44)
|
9
|
59
|
—
|
59
|
0.04
|
Restructuring and
restructuring-related net charges (credits)
|
16
|
(12)
|
28
|
—
|
28
|
25
|
—
|
25
|
0.02
|
Litigation-related net
charges (credits)
|
—
|
(131)
|
131
|
—
|
131
|
101
|
—
|
101
|
0.07
|
Investment portfolio
net losses (gains)
|
—
|
—
|
—
|
(38)
|
(38)
|
(32)
|
—
|
(32)
|
(0.02)
|
EU MDR implementation
costs
|
13
|
(6)
|
19
|
—
|
19
|
17
|
—
|
17
|
0.01
|
Deferred tax expenses
(benefits)
|
—
|
—
|
—
|
—
|
—
|
42
|
—
|
42
|
0.03
|
Discrete tax
items
|
—
|
—
|
—
|
—
|
—
|
129
|
—
|
129
|
0.09
|
Adjusted
|
$
2,285
|
$
1,452
|
$
833
|
$
(88)
|
$
745
|
$
656
|
$
(14)
|
$
642
|
$
0.45
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 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
|
$
2,155
|
$
1,975
|
$
180
|
$
(60)
|
$
120
|
$
94
|
$
(14)
|
$
80
|
$
0.06
|
Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
|
|
Amortization
expense
|
—
|
(192)
|
192
|
—
|
192
|
180
|
—
|
180
|
0.13
|
Intangible asset
impairment charges
|
—
|
(197)
|
197
|
—
|
197
|
171
|
—
|
171
|
0.12
|
Acquisition /
divestiture-related net charges (credits)
|
32
|
(19)
|
50
|
(57)
|
(7)
|
(4)
|
—
|
(4)
|
(0.00)
|
Restructuring and
restructuring-related net charges (credits)
|
20
|
(39)
|
58
|
—
|
58
|
51
|
—
|
51
|
0.04
|
Litigation-related net
charges (credits)
|
—
|
(128)
|
128
|
—
|
128
|
98
|
—
|
98
|
0.07
|
Investment portfolio
net losses (gains)
|
—
|
—
|
—
|
2
|
2
|
2
|
—
|
2
|
0.00
|
EU MDR implementation
costs
|
9
|
(5)
|
14
|
—
|
14
|
13
|
—
|
13
|
0.01
|
Deferred tax expenses
(benefits)
|
—
|
—
|
—
|
—
|
—
|
46
|
—
|
46
|
0.03
|
Discrete tax
items
|
—
|
—
|
—
|
—
|
—
|
16
|
—
|
16
|
0.01
|
Adjusted
|
$
2,216
|
$
1,396
|
$
819
|
$
(115)
|
$
704
|
$
667
|
$
(14)
|
$
653
|
$
0.45
|
|
|
|
|
|
|
|
|
|
|
(1) For the
three months ended December 31, 2022 and 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.
|
|
|
|
|
|
|
|
|
|
|
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)
|
|
|
Year Ended December
31, 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)
Available to
Common
Stockholders
|
Impact per
Share(2)
|
Reported
|
$
8,727
|
$
7,078
|
$
1,649
|
$
(508)
|
$ 1,141
|
$
698
|
$
(55)
|
$
642
|
$
0.45
|
Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
|
|
Amortization
expense
|
—
|
(803)
|
803
|
—
|
803
|
694
|
—
|
694
|
0.48
|
Intangible asset
impairment charges
|
—
|
(132)
|
132
|
—
|
132
|
102
|
—
|
102
|
0.07
|
Acquisition /
divestitures-related net charges (credits)
|
97
|
(206)
|
303
|
(18)
|
285
|
338
|
—
|
338
|
0.24
|
Restructuring and
restructuring-related net charges (credits)
|
65
|
(45)
|
110
|
—
|
110
|
96
|
—
|
96
|
0.07
|
Litigation-related net
charges (credits)
|
—
|
(173)
|
173
|
—
|
173
|
133
|
—
|
133
|
0.09
|
Investment portfolio
net losses (gains)
|
—
|
—
|
—
|
(30)
|
(30)
|
(28)
|
—
|
(28)
|
(0.02)
|
EU MDR implementation
costs
|
46
|
(25)
|
71
|
—
|
71
|
62
|
—
|
62
|
0.04
|
Debt extinguishment
charges
|
—
|
—
|
—
|
194
|
194
|
149
|
—
|
149
|
0.10
|
Deferred tax expenses
(benefits)
|
—
|
—
|
—
|
—
|
—
|
140
|
—
|
140
|
0.10
|
Discrete tax
items
|
—
|
—
|
—
|
—
|
—
|
129
|
—
|
129
|
0.09
|
Adjusted
|
$
8,935
|
$
5,694
|
$
3,241
|
$
(362)
|
$ 2,880
|
$
2,514
|
$
(55)
|
$
2,459
|
$
1.71
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December
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(2)
|
Reported
|
$
8,177
|
$
6,978
|
$
1,199
|
$
(123)
|
$ 1,076
|
$
1,041
|
$
(55)
|
$
985
|
$
0.69
|
Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
|
|
Amortization
expense
|
—
|
(741)
|
741
|
—
|
741
|
676
|
—
|
676
|
0.47
|
Intangible asset
impairment charges
|
—
|
(370)
|
370
|
—
|
370
|
318
|
—
|
318
|
0.22
|
Acquisition /
divestiture-related net charges (credits)
|
65
|
34
|
31
|
(482)
|
(450)
|
(453)
|
—
|
(453)
|
(0.32)
|
Restructuring and
restructuring-related net charges (credits)
|
79
|
(112)
|
191
|
—
|
191
|
169
|
—
|
169
|
0.12
|
Litigation-related net
charges (credits)
|
—
|
(430)
|
430
|
—
|
430
|
331
|
—
|
331
|
0.23
|
Investment portfolio
net losses (gains)
|
—
|
—
|
—
|
181
|
181
|
137
|
—
|
137
|
0.10
|
EU MDR implementation
costs
|
32
|
(17)
|
49
|
—
|
49
|
45
|
—
|
45
|
0.03
|
Deferred tax expenses
(benefits)
|
—
|
—
|
—
|
—
|
—
|
132
|
—
|
132
|
0.09
|
Discrete tax
items
|
—
|
—
|
—
|
—
|
—
|
(5)
|
—
|
(5)
|
(0.00)
|
Adjusted
|
$
8,353
|
$
5,343
|
$
3,010
|
$
(423)
|
$ 2,587
|
$
2,391
|
$
(55)
|
$
2,336
|
$
1.63
|
|
|
|
|
|
|
|
|
|
|
(2) For the
year ended December 31, 2022 and 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.
|
|
An explanation of
the company's use of these non-GAAP financial measures is provided
at the end of this document.
|
|
|
|
|
|
|
|
|
|
|
BOSTON SCIENTIFIC
CORPORATION
Q1 and FY 2023 GUIDANCE
RECONCILIATIONS
(Unaudited)
Net Sales
|
Q1 2023
Estimate
|
|
Full Year 2023
Estimate
|
|
(Low)
|
(High)
|
|
(Low)
|
(High)
|
Reported
growth
|
3 %
|
5 %
|
|
5 %
|
7 %
|
Less: Impact of
foreign currency fluctuations
|
(4) %
|
(4) %
|
|
(1) %
|
(1) %
|
Operational
growth
|
7 %
|
9 %
|
|
6 %
|
8 %
|
Less: Impact of
certain acquisitions / divestitures
|
1 %
|
1 %
|
|
— %
|
— %
|
Organic
growth
|
6 %
|
8 %
|
|
6 %
|
8 %
|
|
|
|
|
|
|
Earnings per Share
|
Q1 2023
Estimate
|
|
Full Year 2023
Estimate
|
|
(Low)
|
(High)
|
|
(Low)
|
(High)
|
GAAP
results
|
$
0.23
|
$
0.26
|
|
$
1.11
|
$
1.21
|
|
|
|
|
|
|
Amortization
expense
|
0.12
|
0.12
|
|
0.47
|
0.47
|
Acquisition /
divestiture-related net charges (credits)
|
0.03
|
0.02
|
|
0.12
|
0.10
|
Other
adjustments
|
0.04
|
0.04
|
|
0.16
|
0.15
|
Adjusted
results
|
$
0.42
|
$
0.44
|
|
$
1.86
|
$
1.93
|
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 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 certain
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) available to common stockholders and adjusted net income
(loss) per share we exclude certain charges (credits), 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); and 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
at 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 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 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 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