MARLBOROUGH, Mass., Jan. 31,
2024 /PRNewswire/ -- Boston Scientific Corporation
(NYSE: BSX) generated net sales of $3.725 billion during the fourth quarter of 2023,
growing 14.9 percent on a reported basis, 14.5 percent on an
operational1 basis and 13.6 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 $504
million or $0.34 per share
(EPS), compared to $126 million or
$0.09 per share a year ago and
achieved adjusted3 EPS of $0.55 for the period, compared to $0.45 a year ago.
For the full year 2023, the company generated net sales of
$14.240 billion, growing 12.3 percent
on a reported basis, 13.1 percent on an operational1
basis and 12.3 percent on an organic2 basis. The company
reported GAAP net income attributable to Boston Scientific common
stockholders of $1.570 billion or
$1.07 per share, compared to
$642 million or $0.45 per share a year ago, and delivered full
year adjusted3 EPS of $2.05, compared to $1.71 a year ago.
"I am grateful to our global team, and proud of our exceptional
results in 2023," said Mike Mahoney,
chairman and chief executive officer, Boston Scientific. "We are
excited about our future and long-range plans as we deliver on our
mission to transform patient lives."
Fourth quarter financial results and recent
developments:
- Reported net sales of $3.725
billion, representing an increase of 14.9 percent on a
reported basis, compared to the company's guidance range of 9 to 11
percent; 14.5 percent on an operational basis; and 13.6 percent on
an organic basis, compared to the company's guidance range of 8 to
10 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 $0.26 to $0.30 per
share, and achieved adjusted EPS of $0.55 per share, compared to the guidance range
of $0.49 to $0.52 per share.
- Achieved the following net sales growth in each reportable
segment, compared to the prior year period:
- MedSurg: 11.1 percent reported, 10.5 percent operational and
8.9 percent organic
- Cardiovascular: 13.9 percent reported, 13.8 percent operational
and 13.3 percent organic
- Achieved the following net sales growth in each region,
compared to the prior year period:
- United States (U.S.): 11.4
percent reported and operational
- Europe, Middle East and Africa (EMEA): 14.0 percent reported and 11.6
percent operational
- Asia-Pacific (APAC): 14.8
percent reported and 17.0 percent operational
- Latin America and Canada (LACA): 20.8 percent reported and 14.6
percent operational
- Emerging Markets4: 16.3 percent reported and 18.7
percent operational
- Received U.S. Food and Drug Administration (FDA) approval of
the FARAPULSE™ Pulsed Field Ablation (PFA) System for
the isolation of pulmonary veins in the treatment of
drug-resistant, recurrent, symptomatic, paroxysmal (i.e.,
intermittent) atrial fibrillation (AF).
- Commenced enrollment of the AVANT GUARD clinical trial to
evaluate the safety and effectiveness of the FARAPULSE
PFA System as a first-line treatment for
persistent AF compared to anti-arrhythmic drug
therapy.
- Welcomed the presentation of data from the MANIFEST-17K
registry of more than 17,000 patients treated with the FARAPULSE
PFA System that reinforce the real-world safety profile of the
system.
- Enrollment commenced in the LAAOS-4 global research trial,
which includes both the WATCHMAN FLX™ Left Atrial Appendage
Closure (LAAC) Device and WATCHMAN FLX Pro LAAC Device
and explores if patients with AF at highest risk for stroke benefit
from a combined LAAC and oral anticoagulation therapy.
- Received FDA approval for the TENACIO™ Pump, a new pump
component for the AMS 700™ Inflatable Penile Prostheses, a
treatment option for patients with erectile dysfunction.
- Completed the acquisition of 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.
- Announced agreement to acquire Axonics, Inc., (Nasdaq:
AXNX) a publicly traded medical technology company that offers
differentiated devices to treat urinary and bowel dysfunction,
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), European Union
Medical Device Regulation (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.
|
Fourth quarter net sales by business and
region:
|
|
|
|
|
Increase/(Decrease)
|
|
|
Three Months
Ended
December 31,
|
|
Reported
Basis
|
|
Impact of
Foreign
Currency
Fluctuations
|
|
Operational
Basis
|
|
Impact of
Recent
Acquisitions
/ Divestitures
|
|
Organic
Basis
|
(in
millions)
|
2023
|
2022
|
|
|
|
|
|
|
Endoscopy
|
$
645
|
$
571
|
|
12.9 %
|
|
(0.7) %
|
|
12.2 %
|
|
(1.4) %
|
|
10.8 %
|
|
Urology
|
527
|
477
|
|
10.5 %
|
|
(0.5) %
|
|
9.9 %
|
|
— %
|
|
9.9 %
|
|
Neuromodulation
|
269
|
249
|
|
8.0 %
|
|
(0.5) %
|
|
7.5 %
|
|
(4.9) %
|
|
2.6 %
|
|
MedSurg
|
1,441
|
1,297
|
|
11.1 %
|
|
(0.6) %
|
|
10.5 %
|
|
(1.6) %
|
|
8.9 %
|
|
Cardiology
|
1,751
|
1,529
|
|
14.5 %
|
|
(0.3) %
|
|
14.2 %
|
|
— %
|
|
14.2 %
|
|
Peripheral
Interventions
|
533
|
476
|
|
12.1 %
|
|
0.1 %
|
|
12.2 %
|
|
(2.1) %
|
|
10.2 %
|
|
Cardiovascular
|
2,285
|
2,005
|
|
13.9 %
|
|
(0.2) %
|
|
13.8 %
|
|
(0.5) %
|
|
13.3 %
|
|
|
3,725
|
3,302
|
|
12.8 %
|
|
(0.4) %
|
|
12.5 %
|
|
(0.9) %
|
|
11.6 %
|
|
Other5
|
—
|
(60)
|
|
(100.0) %
|
|
— %
|
|
(100.0) %
|
|
— %
|
|
(100.0) %
|
Net
Sales
|
$
3,725
|
$
3,242
|
|
14.9 %
|
|
(0.4) %
|
|
14.5 %
|
|
(0.9) %
|
|
13.6 %
|
|
|
|
|
|
|
|
|
|
|
Increase/(Decrease)
|
|
|
|
|
|
|
Three Months
Ended
December 31,
|
|
Reported
Basis
|
|
Impact of
Foreign
Currency
Fluctuations
|
|
Operational
Basis
|
|
|
|
|
(in
millions)
|
2023
|
2022
|
|
|
|
|
U.S.
|
$
2,213
|
$
1,986
|
|
11.4 %
|
|
— %
|
|
11.4 %
|
|
|
|
|
|
EMEA
|
749
|
657
|
|
14.0 %
|
|
(2.4) %
|
|
11.6 %
|
|
|
|
|
|
APAC
|
616
|
536
|
|
14.8 %
|
|
2.2 %
|
|
17.0 %
|
|
|
|
|
|
LACA
|
148
|
122
|
|
20.8 %
|
|
(6.2) %
|
|
14.6 %
|
|
|
|
|
|
|
3,725
|
3,302
|
|
12.8 %
|
|
(0.4) %
|
|
12.5 %
|
|
|
|
|
|
Other5
|
—
|
(60)
|
|
(100.0) %
|
|
— %
|
|
(100.0) %
|
|
|
|
|
|
Net
Sales
|
$
3,725
|
$
3,242
|
|
14.9 %
|
|
(0.4) %
|
|
14.5 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Emerging
Markets4
|
$
595
|
$
511
|
|
16.3 %
|
|
2.4 %
|
|
18.7 %
|
|
|
|
|
|
5
In 2022, reflects 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 health
care budgets. In 2023, these sales reserves were allocated to
reportable segments.
|
|
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 GAAP.
|
Full year net sales by business and region:
|
|
|
|
|
Increase/(Decrease)
|
|
|
Year
Ended
December
31,
|
|
Reported
Basis
|
|
Impact of
Foreign
Currency
Fluctuations
|
|
Operational
Basis
|
|
Impact of
Recent
Acquisitions
/ Divestitures
|
|
Organic
Basis
|
(in
millions)
|
2023
|
2022
|
|
|
|
|
|
|
Endoscopy
|
$
2,482
|
$
2,221
|
|
11.7 %
|
|
0.6 %
|
|
12.3 %
|
|
(1.2) %
|
|
11.1 %
|
|
Urology
|
1,964
|
1,773
|
|
10.8 %
|
|
0.4 %
|
|
11.1 %
|
|
— %
|
|
11.1 %
|
|
Neuromodulation
|
976
|
917
|
|
6.4 %
|
|
0.3 %
|
|
6.7 %
|
|
(1.3) %
|
|
5.3 %
|
|
MedSurg
|
5,422
|
4,911
|
|
10.4 %
|
|
0.4 %
|
|
10.8 %
|
|
(0.8) %
|
|
10.0 %
|
|
Cardiology
|
6,709
|
5,932
|
|
13.1 %
|
|
0.9 %
|
|
14.0 %
|
|
(0.5) %
|
|
13.6 %
|
|
Peripheral
Interventions
|
2,110
|
1,899
|
|
11.1 %
|
|
1.4 %
|
|
12.6 %
|
|
(1.6) %
|
|
10.9 %
|
|
Cardiovascular
|
8,819
|
7,831
|
|
12.6 %
|
|
1.1 %
|
|
13.7 %
|
|
(0.7) %
|
|
12.9 %
|
|
|
14,240
|
12,742
|
|
11.8 %
|
|
0.8 %
|
|
12.6 %
|
|
(0.8) %
|
|
11.8 %
|
|
Other5
|
—
|
(60)
|
|
(100.0) %
|
|
— %
|
|
(100.0) %
|
|
— %
|
|
(100.0) %
|
Net
Sales
|
$ 14,240
|
$ 12,682
|
|
12.3 %
|
|
0.8 %
|
|
13.1 %
|
|
(0.8) %
|
|
12.3 %
|
|
|
|
|
|
|
Increase/(Decrease)
|
|
|
|
|
|
|
Year
Ended
December
31,
|
|
Reported
Basis
|
|
Impact of
Foreign
Currency
Fluctuations
|
|
Operational
Basis
|
|
|
|
|
(in
millions)
|
2023
|
2022
|
|
|
|
|
U.S.
|
$
8,425
|
$
7,632
|
|
10.4 %
|
|
— %
|
|
10.4 %
|
|
|
|
|
|
EMEA
|
2,856
|
2,526
|
|
13.1 %
|
|
(0.2) %
|
|
12.9 %
|
|
|
|
|
|
APAC
|
2,400
|
2,116
|
|
13.4 %
|
|
5.7 %
|
|
19.1 %
|
|
|
|
|
|
LACA
|
560
|
469
|
|
19.3 %
|
|
(2.4) %
|
|
16.9 %
|
|
|
|
|
|
|
14,240
|
12,742
|
|
11.8 %
|
|
0.8 %
|
|
12.6 %
|
|
|
|
|
|
Other5
|
—
|
(60)
|
|
(100.0) %
|
|
— %
|
|
(100.0) %
|
|
|
|
|
|
Net
Sales
|
$
14,240
|
$
12,682
|
|
12.3 %
|
|
0.8 %
|
|
13.1 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Emerging
Markets4
|
$
2,310
|
$
1,968
|
|
17.3 %
|
|
4.5 %
|
|
21.9 %
|
|
|
|
|
|
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 2024
The company estimates net sales growth for the full year 2024,
versus the prior year period, to be in a range of approximately 8.5
to 9.5 percent on a reported basis, and approximately 8 to 9
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 $1.38 to $1.42 and
estimates adjusted EPS, excluding certain charges (credits), of
$2.23 to $2.27.
The company estimates net sales growth for the first quarter of
2024, versus the prior year period, to be in a range of
approximately 7.5 to 9.5 percent on a reported basis, and
approximately 7 to 9 percent on an organic basis. First 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 $0.29 to $0.31 and estimates adjusted EPS, excluding
certain charges (credits), of $0.50
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 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 first 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. 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
December
31,
|
|
Year
Ended
December
31,
|
in millions, except
per share data
|
2023
|
2022
|
|
2023
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
$ 3,725
|
$ 3,242
|
|
$
14,240
|
$
12,682
|
Cost of products
sold
|
1,146
|
1,011
|
|
4,345
|
3,956
|
Gross profit
|
2,579
|
2,231
|
|
9,896
|
8,727
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
Selling, general and
administrative expenses
|
1,379
|
1,163
|
|
5,190
|
4,520
|
Research and
development expenses
|
363
|
330
|
|
1,414
|
1,323
|
Royalty
expense
|
12
|
13
|
|
46
|
47
|
Amortization
expense
|
208
|
199
|
|
828
|
803
|
Intangible asset
impairment charges
|
—
|
—
|
|
58
|
132
|
Contingent
consideration net expense (benefit)
|
14
|
(33)
|
|
58
|
35
|
Restructuring net
charges (credits)
|
19
|
6
|
|
69
|
24
|
Litigation-related net
charges (credits)
|
—
|
131
|
|
(111)
|
173
|
Loss (gain) on
disposal of businesses and assets
|
—
|
22
|
|
—
|
22
|
|
1,995
|
1,830
|
|
7,553
|
7,078
|
Operating income
(loss)
|
584
|
402
|
|
2,343
|
1,649
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
Interest
expense
|
(65)
|
(64)
|
|
(265)
|
(470)
|
Other, net
|
(14)
|
58
|
|
(93)
|
(38)
|
Income
(loss) before income taxes
|
505
|
396
|
|
1,985
|
1,141
|
Income tax expense
(benefit)
|
1
|
256
|
|
393
|
443
|
Net income
(loss)
|
$
504
|
$
140
|
|
$ 1,592
|
$
698
|
Preferred stock
dividends
|
—
|
(14)
|
|
(23)
|
(55)
|
Net income (loss)
attributable to noncontrolling interests
|
(0)
|
—
|
|
(1)
|
—
|
Net income (loss)
attributable to Boston Scientific
common stockholders
|
$
504
|
$
126
|
|
$ 1,570
|
$
642
|
|
|
|
|
|
|
Net income (loss)
per common share - basic
|
$
0.34
|
$
0.09
|
|
$
1.08
|
$
0.45
|
Net income (loss)
per common share - diluted
|
$
0.34
|
$
0.09
|
|
$
1.07
|
$
0.45
|
|
|
|
|
|
|
Weighted-average
shares outstanding
|
|
|
|
|
|
Basic
|
1,465.3
|
1,432.7
|
|
1,453.0
|
1,430.5
|
Diluted
|
1,476.9
|
1,442.4
|
|
1,463.5
|
1,439.7
|
BOSTON SCIENTIFIC
CORPORATION
|
NON-GAAP NET INCOME AND
NET INCOME PER SHARE RECONCILIATIONS
|
(Unaudited)
|
|
|
Three Months Ended
December 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 Boston
Scientific
Common
Stockholders
|
Impact
per Share
|
Reported
|
$
2,579
|
$
1,995
|
$
584
|
$
(79)
|
$
505
|
$
504
|
$
—
|
$
504
|
$
0.34
|
Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
|
|
Amortization
expense
|
—
|
(208)
|
208
|
—
|
208
|
178
|
—
|
176
|
0.12
|
Acquisition/divestiture-related net
charges (credits)
|
9
|
(120)
|
129
|
(0)
|
129
|
54
|
—
|
54
|
0.04
|
Restructuring and
restructuring-related
net charges (credits)
|
22
|
(30)
|
52
|
—
|
52
|
43
|
—
|
43
|
0.03
|
Litigation-related net
charges (credits)
|
—
|
—
|
—
|
—
|
—
|
(1)
|
—
|
(1)
|
(0.00)
|
Investment portfolio
net losses (gains)
|
—
|
—
|
—
|
(0)
|
(0)
|
2
|
—
|
2
|
0.00
|
EU MDR implementation
costs
|
11
|
(5)
|
16
|
—
|
16
|
14
|
—
|
14
|
0.01
|
Deferred tax expenses
(benefits)
|
—
|
—
|
—
|
—
|
—
|
44
|
—
|
44
|
0.03
|
Discrete tax
items
|
—
|
—
|
—
|
—
|
—
|
(18)
|
—
|
(18)
|
(0.01)
|
Adjusted
|
$
2,621
|
$
1,631
|
$
990
|
$
(79)
|
$
911
|
$
819
|
$
—
|
$
817
|
$
0.55
|
|
|
|
|
|
|
|
|
|
|
|
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)
Attributable
to Boston
Scientific
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/divestiture-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
|
|
(1) For the
three months ended December 31, 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. 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
|
NON-GAAP NET INCOME AND
NET INCOME PER SHARE RECONCILIATIONS
|
(Unaudited)
|
|
|
Year Ended December
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 Boston
Scientific
Common
Stockholders
|
Impact
per Share(2)
|
Reported
|
$
9,896
|
$
7,553
|
$
2,343
|
$
(358)
|
$ 1,985
|
$
1,592
|
$
(23)
|
$
1,570
|
$
1.07
|
Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
|
|
Amortization
expense
|
—
|
(828)
|
828
|
—
|
828
|
713
|
—
|
709
|
0.48
|
Intangible asset
impairment charges
|
—
|
(58)
|
58
|
—
|
58
|
54
|
—
|
54
|
0.04
|
Acquisition/divestiture-related net
charges (credits)
|
53
|
(314)
|
367
|
6
|
373
|
352
|
—
|
352
|
0.24
|
Restructuring and
restructuring-related
net charges (credits)
|
77
|
(107)
|
185
|
—
|
185
|
156
|
—
|
156
|
0.11
|
Litigation-related net
charges (credits)
|
—
|
111
|
(111)
|
—
|
(111)
|
(88)
|
—
|
(88)
|
(0.06)
|
Investment portfolio
net losses (gains)
|
—
|
—
|
—
|
21
|
21
|
24
|
—
|
24
|
0.02
|
EU MDR implementation
costs
|
47
|
(21)
|
69
|
—
|
69
|
59
|
—
|
59
|
0.04
|
Deferred tax expenses
(benefits)
|
—
|
—
|
—
|
—
|
—
|
155
|
—
|
155
|
0.11
|
Discrete tax
items
|
—
|
—
|
—
|
—
|
—
|
8
|
—
|
8
|
0.01
|
Adjusted
|
$
10,073
|
$
6,335
|
$
3,738
|
$
(331)
|
$ 3,407
|
$
3,025
|
$
(23)
|
$
2,999
|
$
2.05
|
|
|
|
|
|
|
|
|
|
|
|
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)
Attributable
to Boston
Scientific
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
|
Goodwill and
Intangible asset
impairment charges
|
—
|
(132)
|
132
|
—
|
132
|
102
|
—
|
102
|
0.07
|
Acquisition/divestiture-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
|
|
(2) For the
years ended December 31, 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
Q1 and FY 2024 GUIDANCE
RECONCILIATIONS
(Unaudited)
Net Sales
|
Q1 2024
Estimate
|
|
Full Year 2024
Estimate
|
|
(Low)
|
(High)
|
|
(Low)
|
(High)
|
Reported
growth
|
7.5 %
|
9.5 %
|
|
8.5 %
|
9.5 %
|
Impact of foreign
currency fluctuations
|
1.0 %
|
1.0 %
|
|
0.5 %
|
0.5 %
|
Operational
growth
|
8.5 %
|
10.5 %
|
|
9.0 %
|
10.0 %
|
Impact of
acquisitions/divestitures
|
(1.5) %
|
(1.5) %
|
|
(1.0) %
|
(1.0) %
|
Organic
growth
|
7.0 %
|
9.0 %
|
|
8.0 %
|
9.0 %
|
|
|
|
|
|
|
Earnings per Share
|
Q1 2024
Estimate
|
|
Full Year 2024
Estimate
|
|
(Low)
|
(High)
|
|
(Low)
|
(High)
|
GAAP
results
|
$
0.29
|
$
0.31
|
|
$
1.38
|
$
1.42
|
|
|
|
|
|
|
Amortization
expense
|
0.12
|
0.12
|
|
0.48
|
0.48
|
Acquisition/divestiture-related net charges
(credits)
|
0.03
|
0.03
|
|
0.10
|
0.10
|
Restructuring and
restructuring-related net charges (credits)
|
0.02
|
0.02
|
|
0.11
|
0.11
|
Other
adjustments
|
0.04
|
0.04
|
|
0.16
|
0.16
|
Adjusted
results
|
$
0.50
|
$
0.52
|
|
$
2.23
|
$
2.27
|
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.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/boston-scientific-announces-results-for-fourth-quarter-and-full-year-2023-302048902.html
SOURCE Boston Scientific Corporation