MARLBOROUGH, Mass.,
Oct. 27, 2021 /PRNewswire/ -- Boston
Scientific Corporation (NYSE: BSX) generated net sales of
$2.932 billion during the third
quarter of 2021, growing 10.3 percent on a reported basis, 9.7
percent on an operational1 basis and 10.6 percent on an
organic2 basis, all compared to the prior year period.
The company reported GAAP net income available to common
stockholders of $405 million or
$0.28 per share (EPS), compared to a
GAAP net loss available to common shareholders of $169 million or $(0.12) per share a year ago, and achieved
adjusted EPS of $0.41 for the period,
compared to $0.37 a year ago.
"We've seen this year that our strategy of category leadership,
focus on high-growth markets and smart tuck-in M&A deals,
combined with execution by our global team and an exciting
pipeline, positions us well for the long term," said Mike Mahoney, chairman and chief executive
officer, Boston Scientific. "Despite some softness this quarter,
including the ongoing impact of the COVID-19 pandemic, we're
confident that we will achieve our growth goals as the pandemic
wanes."
Third quarter financial results and recent
developments:
- Reported net sales of $2.932
billion, representing an increase of 10.3 percent on a
reported basis and 10.6 percent on an organic basis, both compared
to the company's guidance range of 12 to 14 percent, all versus the
prior year period.
- Reported GAAP net income available to common stockholders of
$0.28 per share, compared to the
company's guidance range of $0.20 to
$0.22 per share and achieved adjusted
EPS of $0.41 compared to the guidance
range of $0.39 to $0.41 per share.
- Achieved net sales growth in each reportable
segment4, compared to the prior year period:
-
- MedSurg: 11.2 percent reported, 10.6 percent operational and
9.4 percent organic
- Rhythm and Neuro: 8.2 percent reported, 7.8 percent operational
and 1.5 percent organic
- Cardiovascular: 19.4 percent reported, 18.5 percent operational
and organic
- Achieved the following regional5 net sales growth,
compared to the prior year period:
-
- U.S.: 15.4 percent reported and operational
- EMEA (Europe, Middle East and Africa): 9.3 percent reported and 7.9 percent
operational
- APAC (Asia-Pacific): 9.5
percent reported and 8.2 percent operational
- Emerging Markets3: 21.9 percent reported and 17.8
percent operational
- Completed acquisitions of the global surgical business of
Lumenis LTD., a privately held company that develops and
commercializes energy-based medical solutions, and of Farapulse,
Inc., the first company to commercialize a cardiac pulsed field
ablation technology.
- Announced agreements to acquire Baylis Medical Company Inc. to
expand Boston Scientific electrophysiology and structural heart
product portfolios, and Devoro Medical Inc., to expand the
company's full suite of interventional strategies for
thromboemboli. Both acquisitions are subject to customary closing
conditions.
- Received U.S. Food & Drug Administration (FDA) clearance
for the EXALT™ Model B Single-Use Bronchoscope for use in a
wide range of bronchoscopy procedures in the intensive care unit
(ICU) and operating room (OR), such as secretion management, airway
intubation, percutaneous tracheostomy, double lumen endotracheal
tube placement and biopsies. In the
United States, more than 1.2 million bedside
procedures6 involving a bronchoscope are performed in
ICU and OR settings each year.
- Received a New Technology Add-on Payment (NTAP) designation
from the U.S. Centers for Medicare and Medicaid Services (CMS) for
the EXALT™ Model D Single-Use Duodenoscope, used to diagnose
and treat pancreatic and biliary conditions during endoscopic
retrograde cholangiopancreatography (ERCP) procedures.
- Initiated the SABRE randomized controlled trial, the first
global study to examine the effectiveness of SpaceOAR Vue™
Hydrogel in reducing late gastrointestinal toxicity in patients
receiving stereotactic body radiotherapy (SBRT) treatment for
prostate cancer.
- Initiated the HI-PEITHO randomized trial, the first ever
comparative study in the interventional field of PE treatment,
evaluating the EkoSonic™ Endovascular System (EKOS system)
in combination with anticoagulation versus anticoagulation alone,
for the treatment of acute, intermediate-high-risk pulmonary
embolism. Also presented at VIVA21 late-breaking clinical data from
the KNOCOUT PE registry, which reaffirmed the safety and efficacy
of the EKOS system for the treatment of patients with
intermediate-high and high-risk pulmonary embolism (PE) and found
zero intracerebral hemorrhages as well as low major bleeding rates
among the patients in the analysis.
- Presented positive late-breaking clinical trial data for the
Eluvia™ Drug-Eluting Vascular Stent System and the
Ranger™ Drug-Coated Balloon at VIVA21, with the Eluvia stent
exhibiting superiority compared to bare metal stents – the largest
randomized trial of drug-eluting therapies in the field of
peripheral artery disease – and the Ranger DCB demonstrating
continued high rates of primary patency and a significant reduction
in reinterventions at two years.
- Announced late-breaking results from the EPOCH clinical trial,
which demonstrated improved progression-free survival in patients
with metastatic colorectal cancer after treatment with
TheraSphere™ Y-90 Glass
Microspheres and represents the first positive phase 3 study
for selective internal radiation therapy in any disease setting.
Data from the trial was presented at the European Society for
Medical Oncology (ESMO) Congress 2021, simultaneously published in
the Journal of Clinical Oncology and is expected to support
the company's regulatory submission to the FDA for an expanded
indication.
- Presented at Heart Rhythm 2021, the Heart Rhythm Society's
Annual Meeting, positive real-world data supporting the
next-generation WATCHMAN FLX™ and legacy WATCHMAN™ Left
Atrial Appendage Closure Devices as alternatives to oral
anticoagulation therapy for stroke risk reduction in people with
non-valvular atrial fibrillation. Findings included patient
follow-up visit data from the European FLXibility registry with the
WATCHMAN FLX device demonstrating high rates of effective LAA
closure and low rates of short-term complications through 120
days.
- Received Japanese Pharmaceuticals and Medical Devices Agency
(PMDA) approval and commenced the Japanese launch of the POLARx™
Cryoablation System, which is indicated for the treatment of
patients with paroxysmal atrial fibrillation (AF), an intermittent
form of AF which causes an irregular and often abnormally fast
heart rate.
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 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. Periodically, we assess our
list of Emerging Markets countries, and effective January 1, 2021,
modified our list to include the following countries: Brazil,
Chile, China, Colombia, Czech Republic, India, Indonesia, Malaysia,
Mexico, Philippines, Poland, Russia, Saudi Arabia, Slovakia, South
Africa, South Korea, Taiwan, Thailand, Turkey and Vietnam. We have
revised prior period amounts to conform to the current year's
presentation which had an immaterial impact on previously reported
Emerging Markets net sales.
|
4. We have three
historical reportable segments comprised of Medical Surgical
(MedSurg), Rhythm and Neuro, and Cardiovascular, which represent an
aggregation of our operating segments that generate revenues from
the sale of medical devices (Medical Devices).
|
5. On March 1,
2021, we completed the sale of the Specialty Pharmaceuticals
business. Our consolidated net sales include Specialty
Pharmaceuticals up to the date of the closing of the transaction.
Specialty Pharmaceuticals net sales were substantially U.S. based
and presented as a stand-alone operating segment alongside our
Medical Device reportable segments.
|
6. Data on
file at Boston Scientific Corporation. Market research is as of
2019 and includes projections for 2020, incorporating estimates for
the COVID-19 pandemic.
|
Net sales for the third quarter by business and
region:
|
|
|
|
|
Increase/(Decrease)
|
|
|
Three Months
Ended
September
30,
|
|
Reported
Basis
|
|
Less: Impact
of Foreign
Currency
Fluctuations
|
|
Operational
Basis
|
|
Less:
Impact of
Recent
Acquisitions /
Divestitures
|
|
Organic
Basis
|
(in
millions)
|
2021
|
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Endoscopy
|
$
|
533
|
|
$
|
475
|
|
|
12.1%
|
|
0.6%
|
|
11.4%
|
|
—%
|
|
11.4%
|
|
Urology
and Pelvic Health
|
384
|
|
350
|
|
|
9.9%
|
|
0.5%
|
|
9.4%
|
|
2.8%
|
|
6.6%
|
|
MedSurg
|
917
|
|
825
|
|
|
11.2%
|
|
0.6%
|
|
10.6%
|
|
1.2%
|
|
9.4%
|
|
Cardiac
Rhythm Management
|
512
|
|
465
|
|
|
10.1%
|
|
0.5%
|
|
9.6%
|
|
9.9%
|
|
(0.3)%
|
|
Electrophysiology
|
86
|
|
76
|
|
|
13.6%
|
|
0.4%
|
|
13.2%
|
|
2.8%
|
|
10.4%
|
|
Neuromodulation
|
221
|
|
216
|
|
|
2.4%
|
|
0.3%
|
|
2.1%
|
|
—%
|
|
2.1%
|
|
Rhythm and
Neuro
|
819
|
|
757
|
|
|
8.2%
|
|
0.4%
|
|
7.8%
|
|
6.4%
|
|
1.5%
|
|
Interventional Cardiology
|
744
|
|
586
|
|
|
26.9%
|
|
0.9%
|
|
26.0%
|
|
—%
|
|
26.0%
|
|
Peripheral Interventions
|
452
|
|
416
|
|
|
8.8%
|
|
0.7%
|
|
8.1%
|
|
—%
|
|
8.1%
|
|
Cardiovascular
|
1,196
|
|
1,002
|
|
|
19.4%
|
|
0.8%
|
|
18.5%
|
|
—%
|
|
18.5%
|
|
Medical
Devices4
|
2,932
|
|
2,584
|
|
|
13.5%
|
|
0.6%
|
|
12.8%
|
|
2.2%
|
|
10.6%
|
|
Specialty
Pharmaceuticals5
|
—
|
|
74
|
|
|
(100.0)%
|
|
—%
|
|
(100.0)%
|
|
(100.0)%
|
|
—%
|
Net
Sales
|
$
|
2,932
|
|
$
|
2,659
|
|
|
10.3%
|
|
0.6%
|
|
9.7%
|
|
(0.9)%
|
|
10.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase/(Decrease)
|
|
|
Three Months
Ended
September 30,
|
|
Reported
Basis
|
|
Less: Impact
of Foreign
Currency
Fluctuations
|
|
Operational
Basis
|
(in
millions)
|
2021
|
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
|
$
|
1,726
|
|
$
|
1,496
|
|
|
15.4%
|
|
—%
|
|
15.4%
|
|
EMEA
|
590
|
|
540
|
|
|
9.3%
|
|
1.3%
|
|
7.9%
|
|
APAC
|
517
|
|
472
|
|
|
9.5%
|
|
1.3%
|
|
8.2%
|
|
Latin America and
Canada
|
99
|
|
77
|
|
|
28.8%
|
|
4.1%
|
|
24.7%
|
|
Medical
Devices4
|
2,932
|
|
2,584
|
|
|
13.5%
|
|
0.6%
|
|
12.8%
|
|
Specialty
Pharmaceuticals5
|
—
|
|
74
|
|
|
(100.0)%
|
|
—%
|
|
(100.0)%
|
|
Net
Sales
|
$
|
2,932
|
|
$
|
2,659
|
|
|
10.3%
|
|
0.6%
|
|
9.7%
|
|
|
|
|
|
|
|
|
|
|
|
Emerging
Markets3
|
$
|
354
|
|
$
|
291
|
|
|
21.9%
|
|
4.1%
|
|
17.8%
|
|
|
|
|
|
|
|
|
|
|
|
Amounts may not
add due to rounding. Growth rates are based on actual, non-rounded
amounts and may not recalculate precisely.
|
|
|
|
Growth rates that
exclude the impact of foreign currency fluctuations and/or the
impact of acquisitions / divestitures are not prepared in
accordance with U.S. GAAP.
|
Guidance for Full Year and Fourth Quarter 2021
The company now estimates net sales growth for the full year
2021, versus the prior year period, to be in a range of
approximately 19 to 20 percent on a reported basis, and
approximately 18 to 19 percent on an organic basis. Full year
organic net sales guidance excludes the impact of foreign currency
fluctuations as well as the Q1 2021 acquisition of Preventice
Solutions, Inc., and Q3 2021 acquisitions of Farapulse, Inc. and
the global surgical business of Lumenis, LTD. In addition, it
excludes the intrauterine health franchise and the Specialty
Pharmaceuticals business, which were divested in Q2 2020 and Q1
2021, respectively. The company now estimates EPS on a GAAP basis
in a range of $0.83 to $0.85 and estimates adjusted EPS, excluding
certain charges (credits), of $1.60
to $1.62.
The company estimates net sales growth for the fourth quarter of
2021, versus the prior year period, to be in a range of
approximately 13 to 17 percent on a reported basis, and
approximately 12 to 16 percent on an organic basis. Fourth quarter
organic net sales guidance excludes the impact of foreign currency
fluctuations and the acquisitions of Preventice, Farapulse and
Lumenis, as well as the divestiture of the Specialty
Pharmaceuticals business. The company estimates EPS on a GAAP basis
in a range of $0.21 to $0.23 and adjusted EPS, excluding certain charges
(credits), of $0.43 to $0.45.
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," "intend" and similar words. These forward-looking
statements are based on our beliefs, assumptions and estimates
using information available to us at the time and are not intended
to be guarantees of future events or performance. These
forward-looking statements include, among other things, statements
regarding our expected net sales; reported, operational and organic
revenue growth rates; reported and adjusted EPS for the fourth
quarter and full year 2021; our financial performance; our business
plans and product performance; and the impact of the COVID-19
pandemic on the company's results of operations. 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.
Factors that may cause such differences include, among other
things: future economic, political, competitive, reimbursement and
regulatory conditions; new product introductions; demographic
trends; intellectual property; litigation; financial market
conditions; and future business decisions made by us and our
competitors. 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 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
September
30,
|
|
Nine Months
Ended
September
30,
|
in millions,
except per share data
|
2021
|
2020
|
|
2021
|
2020
|
|
|
|
|
|
|
Net sales
|
$
|
2,932
|
|
$
|
2,659
|
|
|
$
|
8,761
|
|
$
|
7,204
|
|
Cost of products
sold
|
900
|
|
869
|
|
|
2,739
|
|
2,465
|
|
Gross
profit
|
2,032
|
|
1,790
|
|
|
6,022
|
|
4,740
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
Selling, general and
administrative expenses
|
1,066
|
|
984
|
|
|
3,206
|
|
2,760
|
|
Research and
development expenses
|
310
|
|
315
|
|
|
884
|
|
857
|
|
Royalty
expense
|
14
|
|
12
|
|
|
38
|
|
32
|
|
Amortization
expense
|
184
|
|
197
|
|
|
549
|
|
595
|
|
Intangible asset
impairment charges
|
128
|
|
219
|
|
|
173
|
|
452
|
|
Contingent
consideration net expense (benefit)
|
(26)
|
|
6
|
|
|
(117)
|
|
(102)
|
|
Restructuring net
charges (credits)
|
9
|
|
3
|
|
|
18
|
|
16
|
|
Litigation-related net
charges (credits)
|
—
|
|
260
|
|
|
302
|
|
260
|
|
Gain on disposal of
businesses and assets
|
(40)
|
|
—
|
|
|
(48)
|
|
—
|
|
|
1,645
|
|
1,995
|
|
|
5,003
|
|
4,870
|
|
Operating income
(loss)
|
387
|
|
(205)
|
|
|
1,019
|
|
(130)
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
Interest
expense
|
(86)
|
|
(86)
|
|
|
(254)
|
|
(265)
|
|
Other, net
|
181
|
|
64
|
|
|
192
|
|
9
|
|
Income
(loss) before income taxes
|
483
|
|
(227)
|
|
|
957
|
|
(386)
|
|
Income tax expense
(benefit)
|
64
|
|
(72)
|
|
|
10
|
|
(94)
|
|
Net income
(loss)
|
$
|
419
|
|
$
|
(155)
|
|
|
$
|
946
|
|
$
|
(292)
|
|
Preferred stock
dividends
|
(14)
|
|
(14)
|
|
|
(42)
|
|
(19)
|
|
Net income (loss)
available to common stockholders
|
$
|
405
|
|
$
|
(169)
|
|
|
$
|
905
|
|
$
|
(311)
|
|
|
|
|
|
|
|
Net income (loss)
per common share - basic
|
$
|
0.28
|
|
$
|
(0.12)
|
|
|
$
|
0.64
|
|
$
|
(0.22)
|
|
Net income (loss)
per common share - assuming dilution
|
$
|
0.28
|
|
$
|
(0.12)
|
|
|
$
|
0.63
|
|
$
|
(0.22)
|
|
|
|
|
|
|
|
Weighted-average
shares outstanding
|
|
|
|
|
|
Basic
|
1,423.8
|
|
1,430.9
|
|
|
1,421.3
|
|
1,413.0
|
|
Assuming
dilution
|
1,435.6
|
|
1,430.9
|
|
|
1,433.0
|
|
1,413.0
|
|
BOSTON SCIENTIFIC
CORPORATION
|
NON-GAAP NET INCOME
AND NET INCOME PER SHARE RECONCILIATIONS
|
(Unaudited)
|
|
|
Three Months Ended
September 30, 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
|
$
|
2,032
|
|
$
|
1,645
|
|
$
|
387
|
|
$
|
95
|
|
$
|
483
|
|
$
|
419
|
|
$
|
(14)
|
|
$
|
405
|
|
$
|
0.28
|
|
|
Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
|
|
|
Amortization
expense
|
—
|
|
(184)
|
|
184
|
|
—
|
|
184
|
|
168
|
|
—
|
|
168
|
|
0.12
|
|
|
Intangible asset
impairment charges
|
—
|
|
(128)
|
|
128
|
|
—
|
|
128
|
|
109
|
|
—
|
|
109
|
|
0.08
|
|
|
Acquisition /
divestiture-related net charges
(credits)
|
12
|
|
19
|
|
(7)
|
|
(225)
|
|
(232)
|
|
(230)
|
|
—
|
|
(230)
|
|
(0.16)
|
|
|
Restructuring and
restructuring-related net
charges (credits)
|
19
|
|
(26)
|
|
44
|
|
—
|
|
44
|
|
39
|
|
—
|
|
39
|
|
0.03
|
|
|
Litigation-related net
charges (credits)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(0.00)
|
|
|
Investment portfolio
net losses (gains)
|
—
|
|
—
|
|
—
|
|
26
|
|
26
|
|
19
|
|
—
|
|
19
|
|
0.01
|
|
|
EU MDR implementation
costs
|
9
|
|
(4)
|
|
13
|
|
—
|
|
13
|
|
12
|
|
—
|
|
12
|
|
0.01
|
|
|
Deferred tax expenses
(benefits)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
43
|
|
—
|
|
43
|
|
0.03
|
|
|
Discrete tax
items
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
17
|
|
—
|
|
17
|
|
0.01
|
|
|
Adjusted
|
$
|
2,071
|
|
$
|
1,322
|
|
$
|
750
|
|
$
|
(104)
|
|
$
|
646
|
|
$
|
595
|
|
$
|
(14)
|
|
$
|
581
|
|
$
|
0.41
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) For the three
months ended September 30, 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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30, 2020
|
|
(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
|
$
|
1,790
|
|
$
|
1,995
|
|
$
|
(205)
|
|
$
|
(22)
|
|
$
|
(227)
|
|
$
|
(155)
|
|
$
|
(14)
|
|
$
|
(169)
|
|
$
|
(0.12)
|
|
|
Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
|
|
|
Amortization
expense
|
—
|
|
(197)
|
|
197
|
|
—
|
|
197
|
|
176
|
|
—
|
|
176
|
|
0.12
|
|
|
Intangible asset
impairment charges
|
—
|
|
(219)
|
|
219
|
|
—
|
|
219
|
|
189
|
|
—
|
|
189
|
|
0.13
|
|
|
Acquisition /
divestiture-related net charges
(credits)
|
30
|
|
(90)
|
|
120
|
|
(9)
|
|
111
|
|
87
|
|
—
|
|
87
|
|
0.06
|
|
|
Restructuring and
restructuring-related net
charges (credits)
|
15
|
|
(8)
|
|
23
|
|
—
|
|
23
|
|
21
|
|
—
|
|
21
|
|
0.01
|
|
|
Litigation-related net
charges (credits)
|
—
|
|
(260)
|
|
260
|
|
—
|
|
260
|
|
255
|
|
—
|
|
255
|
|
0.18
|
|
|
Investment portfolio
net losses (gains)
|
—
|
|
—
|
|
—
|
|
(65)
|
|
(65)
|
|
(50)
|
|
—
|
|
(50)
|
|
(0.03)
|
|
|
EU MDR implementation
costs
|
6
|
|
(2)
|
|
8
|
|
—
|
|
8
|
|
7
|
|
—
|
|
7
|
|
0.00
|
|
|
Deferred tax expenses
(benefits)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
18
|
|
—
|
|
18
|
|
0.01
|
|
|
Discrete tax
items
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(3)
|
|
—
|
|
(3)
|
|
0.00
|
|
|
Adjusted
|
$
|
1,841
|
|
$
|
1,220
|
|
$
|
621
|
|
$
|
(96)
|
|
$
|
525
|
|
$
|
543
|
|
$
|
(14)
|
|
$
|
530
|
|
$
|
0.37
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) For the three
months ended September 30, 2020, 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 loss and adjusted net income were reduced by cumulative
Preferred stock dividends, as presented in our unaudited
consolidated statements of operations, for purposes of calculating
EPS. We have assumed dilution of 13.6 million common stock
equivalents related to employee stock options for all or a portion
of the non-GAAP adjustments, which were anti-dilutive for GAAP
purposes due to our net loss position.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
An explanation of
the company's use of these non-GAAP financial measures is provided
at the end of this document.
|
|
BOSTON SCIENTIFIC
CORPORATION
|
NON-GAAP NET INCOME
AND NET INCOME PER SHARE RECONCILIATIONS
|
(Unaudited)
|
|
|
Nine Months Ended
September 30, 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
|
$
|
6,022
|
|
$
|
5,003
|
|
$
|
1,019
|
|
$
|
(62)
|
|
$
|
957
|
|
$
|
946
|
|
$
|
(42)
|
|
$
|
905
|
|
$
|
0.63
|
|
|
Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
|
|
|
Amortization
expense
|
—
|
|
(549)
|
|
549
|
|
—
|
|
549
|
|
496
|
|
—
|
|
496
|
|
0.35
|
|
|
Intangible asset
impairment charges
|
—
|
|
(173)
|
|
173
|
|
—
|
|
173
|
|
148
|
|
—
|
|
148
|
|
0.10
|
|
|
Acquisition /
divestiture-related net charges
(credits)
|
33
|
|
52
|
|
(19)
|
|
(425)
|
|
(444)
|
|
(449)
|
|
—
|
|
(449)
|
|
(0.31)
|
|
|
Restructuring and
restructuring-related net
charges (credits)
|
59
|
|
(74)
|
|
133
|
|
—
|
|
133
|
|
118
|
|
—
|
|
118
|
|
0.08
|
|
|
Litigation-related net
charges (credits)
|
—
|
|
(302)
|
|
302
|
|
—
|
|
302
|
|
233
|
|
—
|
|
233
|
|
0.16
|
|
|
Investment portfolio
net losses (gains)
|
—
|
|
—
|
|
—
|
|
178
|
|
178
|
|
136
|
|
—
|
|
136
|
|
0.09
|
|
|
EU MDR implementation
costs
|
24
|
|
(12)
|
|
35
|
|
—
|
|
35
|
|
32
|
|
—
|
|
32
|
|
0.02
|
|
|
Deferred tax expenses
(benefits)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
86
|
|
—
|
|
86
|
|
0.06
|
|
|
Discrete tax
items
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(21)
|
|
—
|
|
(21)
|
|
(0.01)
|
|
|
Adjusted
|
$
|
6,138
|
|
$
|
3,946
|
|
$
|
2,191
|
|
$
|
(308)
|
|
$
|
1,883
|
|
$
|
1,725
|
|
$
|
(42)
|
|
$
|
1,683
|
|
$
|
1.17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) For the nine
months ended September 30, 2021, 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 available to common stockholders.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30, 2020
|
|
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
|
$
|
4,740
|
|
$
|
4,870
|
|
$
|
(130)
|
|
$
|
(256)
|
|
$
|
(386)
|
|
$
|
(292)
|
|
$
|
(19)
|
|
$
|
(311)
|
|
$
|
(0.22)
|
|
|
Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
|
|
|
Amortization
expense
|
—
|
|
(595)
|
|
595
|
|
—
|
|
595
|
|
533
|
|
—
|
|
533
|
|
0.38
|
|
|
Intangible asset
impairment charges
|
—
|
|
(452)
|
|
452
|
|
—
|
|
452
|
|
384
|
|
—
|
|
384
|
|
0.27
|
|
|
Acquisition /
divestiture-related net charges
(credits)
|
97
|
|
(52)
|
|
149
|
|
(1)
|
|
148
|
|
100
|
|
—
|
|
100
|
|
0.07
|
|
|
Restructuring and
restructuring-related net
charges (credits)
|
47
|
|
(30)
|
|
77
|
|
—
|
|
77
|
|
66
|
|
—
|
|
66
|
|
0.05
|
|
|
Litigation-related net
charges (credits)
|
—
|
|
(260)
|
|
260
|
|
—
|
|
260
|
|
255
|
|
—
|
|
255
|
|
0.18
|
|
|
Investment portfolio
net losses (gains)
|
—
|
|
—
|
|
—
|
|
(65)
|
|
(65)
|
|
(50)
|
|
—
|
|
(50)
|
|
(0.04)
|
|
|
EU MDR implementation
costs
|
14
|
|
(5)
|
|
20
|
|
—
|
|
20
|
|
17
|
|
—
|
|
17
|
|
0.01
|
|
|
Deferred tax expenses
(benefits)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
26
|
|
—
|
|
26
|
|
0.02
|
|
|
Discrete tax
items
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
20
|
|
—
|
|
20
|
|
0.01
|
|
|
Adjusted
|
$
|
4,898
|
|
$
|
3,476
|
|
$
|
1,422
|
|
$
|
(322)
|
|
$
|
1,100
|
|
$
|
1,059
|
|
$
|
(19)
|
|
$
|
1,040
|
|
$
|
0.73
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) For the
nine months ended September 30, 2020, 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 loss and adjusted net income were reduced by
cumulative Preferred stock dividends, as presented in our unaudited
consolidated statements of operations, for purposes of calculating
EPS. We have assumed dilution of 14.1 million common stock
equivalents related to employee stock options for all or a portion
of the non-GAAP adjustments, which were anti-dilutive for GAAP
purposes due to our net loss position.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
An explanation of
the company's use of these non-GAAP financial measures is provided
at the end of this document.
|
|
BOSTON SCIENTIFIC
CORPORATION
|
Q4 and FY 2021
GUIDANCE RECONCILIATIONS
|
(Unaudited)
|
Net Sales
|
Q4 2021
Estimate
|
|
Full Year 2021
Estimate
|
|
(Low)
|
(High)
|
|
(Low)
|
(High)
|
Reported
growth
|
13%
|
17%
|
|
19%
|
20%
|
Less: Impact of
foreign currency fluctuations
|
(1)%
|
(1)%
|
|
1%
|
1%
|
Operational
growth
|
14%
|
18%
|
|
18%
|
19%
|
Less: Impact of
certain acquisitions / divestitures
|
2%
|
2%
|
|
0%
|
0%
|
Organic
growth
|
12%
|
16%
|
|
18%
|
19%
|
Earnings per Share
|
Q4 2021
Estimate
|
|
Full Year 2021
Estimate
|
|
(Low)
|
(High)
|
|
(Low)
|
(High)
|
GAAP
results
|
$
|
0.21
|
|
$
|
0.23
|
|
|
$
|
0.83
|
|
$
|
0.85
|
|
|
|
|
|
|
|
Amortization
expense
|
0.12
|
|
0.12
|
|
|
0.47
|
|
0.47
|
|
Intangible asset
impairment charges
|
—
|
|
—
|
|
|
0.10
|
|
0.10
|
|
Acquisition /
divestiture-related net charges (credits)
|
0.03
|
|
0.03
|
|
|
(0.28)
|
|
(0.28)
|
|
Restructuring and
restructuring-related net charges (credits)
|
0.03
|
|
0.03
|
|
|
0.11
|
|
0.11
|
|
Litigation-related
net charges (credits)
|
—
|
|
—
|
|
|
0.16
|
|
0.16
|
|
Investment portfolio
net losses (gains)
|
—
|
|
—
|
|
|
0.09
|
|
0.09
|
|
Other
adjustments
|
0.04
|
|
0.04
|
|
|
0.11
|
|
0.11
|
|
Adjusted
results
|
$
|
0.43
|
|
$
|
0.45
|
|
|
$
|
1.60
|
|
$
|
1.62
|
|
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 amounts; 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) from GAAP net
income (loss) and GAAP net income (loss) available to common
stockholders. 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 (FASB) Accounting Standards Codification
(ASC) 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 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