MARLBOROUGH, Mass., July 27,
2022 /PRNewswire/ -- Boston Scientific Corporation
(NYSE: BSX) generated net sales of $3.244
billion during the second quarter of 2022, growing 5.4
percent on a reported basis, 9.6 percent on an
operational1 basis and 6.6 percent on an
organic2 basis, all compared to the prior year period.
The company reported GAAP net income available to common
stockholders of $246 million or
$0.17 per share (EPS), compared to
$172 million or $0.12 per share a year ago, and achieved
adjusted3 EPS of $0.44 for
the period, compared to $0.40 a year
ago.
"We had another quarter of excellent performance, a testament to
the talent of our global team, the sustainability and
diversification of our innovative medical technology portfolio and
our strong market positions amid continued macroeconomic
challenges," said Mike Mahoney,
chairman and chief executive officer, Boston Scientific. "As we
continue to execute our strategy, we have a tremendous opportunity
to continue to deliver on our promise to bring life-changing
devices and therapies to more patients who need them."
Second quarter financial results and recent
developments:
- Reported net sales of $3.244
billion, representing an increase of 5.4 percent on a
reported basis, compared to the company's guidance range of 3 to 6
percent; 9.6 percent on an operational basis; and 6.6 percent on an
organic basis, compared to the company's guidance range of 3 to 6
percent, all compared to the prior year period.
- Reported GAAP net income available to common stockholders of
$0.17 per share, compared to the
company's guidance range of $0.19 to
$0.23 per share, and achieved
adjusted EPS of $0.44 per share,
compared to the guidance range of $0.41 to $0.43 per
share.
- Achieved net sales growth in each reportable
segment4, compared to the prior year period:
-
- MedSurg: 4.5 percent reported, 7.9 percent operational and 4.8
percent organic
- Cardiovascular: 6.0 percent reported, 10.8 percent operational
and 7.8 percent organic
- Achieved the following regional net sales growth/(decline),
compared to the prior year period:
-
- U.S.: 7.4 percent reported and operational
- EMEA (Europe, Middle East and Africa): (0.3) percent reported and 11.8
percent operational
- APAC (Asia-Pacific): 1.9
percent reported and 11.2 percent operational
- Emerging Markets5: 18.9 percent reported and 26.0
percent operational
- Received U.S. Food and Drug Administration (FDA) 510(k)
clearance for and launched the VersaCross Connect™ LAAC Access
Solution developed by Baylis Medical, featuring a shapable
dilator and the radiofrequency (RF) energy technology of the
VersaCross® RF Transseptal Solution, compatible with the WATCHMAN
FXD Curve™ Access Sheath to provide safe and efficient access to
the left side of the heart for WATCHMAN FLX implants.
- Received National Medical Products Administration approval in
China for the Tria™ Firm
Ureteral Stent. The Tria stent incorporates proprietary
PercuShield™ technology engineered to provide protection against
the accumulation of both urine calcium and magnesium salt deposits
during indwell.
- Late-breaking data from 54,000 patients in the NCDR-LAAO
Registry presented at Heart Rhythm 2022 demonstrated that the
WATCHMAN™ FLX Left Atrial Appendage Closure (LAAC) Device
was associated with a significantly lower (43% reduction) rate of
in-hospital major adverse events compared with the
previous-generation device driven by lower rates of pericardial
effusion requiring intervention and major bleeding.
- Late-breaking registry data—including a European study
presented at TVT and the latest data from the Italian ITAL-neo
Registry presented at EuroPCR—supported reduced paravalvular leak
(PVL) and superior performance of the ACURATE neo2™
Aortic Valve System over the previous-generation valve.
- The investigator-sponsored ATLAS trial demonstrated a highly
significant 92 percent reduction in serious lead-related
complications at six months for the EMBLEM™ Subcutaneous
Implantable Defibrillator (S-ICD) compared to single chamber
transvenous ICD devices. ATLAS is the first prospective randomized
controlled trial whose primary objective was to evaluate
lead-related complication rates between the S-ICD and single
chamber TV-ICD devices at six months after implant.
- Completed enrollment in the ADVENT clinical trial—a
prospective, multi-center, randomized safety and effectiveness
pivotal study comparing the FARAPULSE™ Pulsed Field Ablation
(PFA) System to standard-of-care ablation in patients with
paroxysmal—or intermittent —atrial fibrillation (AF) with a primary
endpoint of freedom from AF at 12 months after a single ablation
procedure.
- Completed enrollment in the NEwTON AF clinical trial – a
prospective, multi-center, single-arm study to establish the safety
and effectiveness of the INTELLANAV STABLEPOINT™ Ablation
Catheter and Force-Sensing System in patients with symptomatic,
drug-refractory, recurrent paroxysmal atrial fibrillation.
- Announced agreement to purchase the majority stake of M.I.Tech
Co., Ltd from Synergy Innovation Co., Ltd, subject to customary
closing conditions, to broaden and complement the Boston Scientific
portfolio of gastrointestinal and airway stents.
- Released 2021 Performance Report, highlighting the company's
achievements in advancing environmental, social and governance
(ESG) priorities to transform care, invest in employees, accelerate
possibilities, protect the environment and create value
responsibly.
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), EU MDR implementation
costs, debt extinguishment charges, deferred tax expenses
(benefits) and discrete tax items.
|
4. 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 (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.
|
5. 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.
|
Net sales for the second quarter by business and
region:
|
|
|
|
|
Increase/(Decrease)
|
|
|
Three Months
Ended
June
30,
|
|
Reported
Basis
|
|
Less: Impact
of Foreign
Currency
Fluctuations
|
|
Operational
Basis
|
|
Less:
Impact of
Recent
Acquisitions
/ Divestitures
|
|
Organic
Basis
|
(in
millions)
|
2022
|
2021
|
|
|
|
|
|
|
Endoscopy
|
$
560
|
$
551
|
|
1.6 %
|
|
(4.3) %
|
|
5.8 %
|
|
— %
|
|
5.8 %
|
|
Urology
and Pelvic Health
|
450
|
397
|
|
13.4 %
|
|
(2.8) %
|
|
16.2 %
|
|
9.2 %
|
|
7.0 %
|
|
Neuromodulation
|
239
|
247
|
|
(3.4) %
|
|
(2.4) %
|
|
(1.0) %
|
|
— %
|
|
(1.0) %
|
|
MedSurg4
|
1,248
|
1,195
|
|
4.5 %
|
|
(3.4) %
|
|
7.9 %
|
|
3.1 %
|
|
4.8 %
|
|
Cardiology
|
1,517
|
1,410
|
|
7.6 %
|
|
(4.8) %
|
|
12.5 %
|
|
4.0 %
|
|
8.5 %
|
|
Peripheral
Interventions
|
478
|
473
|
|
1.2 %
|
|
(4.5) %
|
|
5.7 %
|
|
— %
|
|
5.7 %
|
|
Cardiovascular4
|
1,996
|
1,883
|
|
6.0 %
|
|
(4.7) %
|
|
10.8 %
|
|
3.0 %
|
|
7.8 %
|
|
Medical
Devices4
|
3,244
|
3,077
|
|
5.4 %
|
|
(4.2) %
|
|
9.6 %
|
|
3.0 %
|
|
6.6 %
|
Net
Sales
|
$
3,244
|
$
3,077
|
|
5.4 %
|
|
(4.2) %
|
|
9.6 %
|
|
3.0 %
|
|
6.6 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase/(Decrease)
|
|
|
Three Months
Ended June 30,
|
|
Reported
Basis
|
|
Less: Impact
of Foreign
Currency
Fluctuations
|
|
Operational
Basis
|
(in
millions)
|
2022
|
2021
|
|
|
|
|
U.S.
|
$ 1,933
|
$ 1,800
|
|
7.4 %
|
|
— %
|
|
7.4 %
|
|
EMEA
|
660
|
662
|
|
(0.3) %
|
|
(12.2) %
|
|
11.8 %
|
|
APAC
|
530
|
520
|
|
1.9 %
|
|
(9.3) %
|
|
11.2 %
|
|
Latin America and
Canada
|
120
|
95
|
|
26.8 %
|
|
(1.1) %
|
|
27.9 %
|
|
Medical
Devices4
|
3,244
|
3,077
|
|
5.4 %
|
|
(4.2) %
|
|
9.6 %
|
|
Net
Sales
|
$ 3,244
|
$ 3,077
|
|
5.4 %
|
|
(4.2) %
|
|
9.6 %
|
|
|
|
|
|
|
|
|
|
|
|
Emerging
Markets5
|
$
427
|
$
359
|
|
18.9 %
|
|
(7.1) %
|
|
26.0 %
|
|
|
|
|
|
|
|
|
|
|
|
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 Third Quarter 2022
The company now estimates net sales growth for the full year
2022, versus the prior year period, to be in a range of
approximately 6.5 to 7.5 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 now estimates EPS on a GAAP basis
in a range of $0.69 to $0.76 and estimates adjusted EPS, excluding
certain charges (credits), of $1.74
to $1.77.
The company estimates net sales growth for the third quarter of
2022, versus the prior year period, to be in a range of
approximately 6 to 8 percent on a reported basis, and approximately
8 to 10 percent on an organic basis. Third 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
$0.20 to $0.24 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," "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 third quarter and full year 2022; 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.
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 rights; 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, including
those that have emerged or have increased in significance or
likelihood as a result of the COVID-19 pandemic. 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
June
30,
|
|
Six Months
Ended
June
30,
|
in millions, except
per share data
|
2022
|
2021
|
|
2022
|
2021
|
|
|
|
|
|
|
Net sales
|
$
3,244
|
$
3,077
|
|
$
6,270
|
$
5,829
|
Cost of products
sold
|
1,011
|
945
|
|
1,966
|
1,839
|
Gross profit
|
2,233
|
2,132
|
|
4,304
|
3,990
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
Selling, general and
administrative expenses
|
1,165
|
1,121
|
|
2,225
|
2,139
|
Research and
development expenses
|
335
|
298
|
|
654
|
574
|
Royalty
expense
|
11
|
12
|
|
23
|
24
|
Amortization
expense
|
204
|
180
|
|
402
|
365
|
Intangible asset
impairment charges
|
7
|
45
|
|
7
|
45
|
Contingent
consideration net expense (benefit)
|
36
|
(85)
|
|
48
|
(91)
|
Restructuring net
charges (credits)
|
11
|
3
|
|
14
|
8
|
Litigation-related net
charges (credits)
|
42
|
298
|
|
42
|
302
|
Gain on disposal of
businesses and assets
|
—
|
(2)
|
|
—
|
(9)
|
|
1,810
|
1,870
|
|
3,415
|
3,358
|
Operating income
(loss)
|
423
|
262
|
|
889
|
632
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
Interest
expense
|
(64)
|
(86)
|
|
(343)
|
(168)
|
Other, net
|
(14)
|
(26)
|
|
(46)
|
11
|
Income
(loss) before income taxes
|
345
|
149
|
|
501
|
474
|
Income tax expense
(benefit)
|
85
|
(37)
|
|
131
|
(53)
|
Net income
(loss)
|
$
260
|
$
186
|
|
$
370
|
$
527
|
Preferred stock
dividends
|
(14)
|
(14)
|
|
(28)
|
(28)
|
Net income (loss)
available to common stockholders
|
$
246
|
$
172
|
|
$
342
|
$
500
|
|
|
|
|
|
|
Net income (loss)
per common share - basic
|
$
0.17
|
$
0.12
|
|
$
0.24
|
$
0.35
|
Net income (loss)
per common share - assuming
dilution
|
$
0.17
|
$
0.12
|
|
$
0.24
|
$
0.35
|
|
|
|
|
|
|
Weighted-average
shares outstanding
|
|
|
|
|
|
Basic
|
1,429.7
|
1,421.3
|
|
1,428.8
|
1,420.0
|
Assuming
dilution
|
1,437.8
|
1,432.5
|
|
1,438.1
|
1,431.7
|
BOSTON SCIENTIFIC
CORPORATION
|
NON-GAAP NET INCOME AND
NET INCOME PER SHARE RECONCILIATIONS
|
(Unaudited)
|
|
|
Three Months Ended
June 30, 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
|
$
2,233
|
$
1,810
|
$
423
|
$
(78)
|
$
345
|
$
260
|
$
(14)
|
$
246
|
$ 0.17
|
|
Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
|
|
|
Amortization
expense
|
—
|
(204)
|
204
|
—
|
204
|
175
|
—
|
175
|
0.12
|
|
Intangible asset
impairment charges
|
—
|
(7)
|
7
|
—
|
7
|
7
|
—
|
7
|
0.00
|
|
Acquisition /
divestiture-related net
|
|
|
|
|
|
|
|
|
|
|
charges
(credits)
|
23
|
(67)
|
91
|
—
|
91
|
95
|
—
|
95
|
0.07
|
|
Restructuring and
restructuring-related
|
|
|
|
|
|
|
|
|
|
|
net charges
(credits)
|
17
|
(18)
|
35
|
—
|
35
|
30
|
—
|
30
|
0.02
|
|
Litigation-related net
charges (credits)
|
—
|
(42)
|
42
|
—
|
42
|
33
|
—
|
33
|
0.02
|
|
Investment portfolio
net losses (gains)
|
—
|
—
|
—
|
4
|
4
|
2
|
—
|
2
|
0.00
|
|
EU MDR implementation
costs
|
11
|
(6)
|
17
|
—
|
17
|
14
|
—
|
14
|
0.01
|
|
Debt extinguishment
charges
|
—
|
—
|
—
|
0
|
0
|
0
|
—
|
0
|
0.00
|
|
Deferred tax expenses
(benefits)
|
—
|
—
|
—
|
—
|
—
|
34
|
—
|
34
|
0.02
|
|
Discrete tax
items
|
—
|
—
|
—
|
—
|
—
|
(1)
|
—
|
(1)
|
(0.00)
|
|
Adjusted
|
$
2,284
|
$
1,466
|
$
818
|
$
(74)
|
$
744
|
$
649
|
$
(14)
|
$
635
|
$ 0.44
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) For the
three months ended June 30, 2022, 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
June 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
|
$
2,132
|
$
1,870
|
$
262
|
$
(113)
|
$
149
|
$
186
|
$
(14)
|
$
172
|
$ 0.12
|
|
Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
|
|
|
Amortization
expense
|
—
|
(180)
|
180
|
—
|
180
|
161
|
—
|
161
|
0.11
|
|
Intangible asset
impairment charges
|
—
|
(45)
|
45
|
—
|
45
|
39
|
—
|
39
|
0.03
|
|
Acquisition /
divestiture-related net charges (credits)
|
7
|
70
|
(63)
|
(1)
|
(64)
|
(65)
|
—
|
(65)
|
(0.05)
|
|
Restructuring and
restructuring-related net charges (credits)
|
22
|
(16)
|
39
|
—
|
39
|
35
|
—
|
35
|
0.02
|
|
Litigation-related net
charges (credits)
|
—
|
(298)
|
298
|
—
|
298
|
229
|
—
|
229
|
0.16
|
|
Investment portfolio
net losses (gains)
|
—
|
—
|
—
|
6
|
6
|
5
|
—
|
5
|
0.00
|
|
EU MDR implementation
costs
|
8
|
(4)
|
12
|
—
|
12
|
11
|
—
|
11
|
0.01
|
|
Deferred tax expenses
(benefits)
|
—
|
—
|
—
|
—
|
—
|
25
|
—
|
25
|
0.02
|
|
Discrete tax
items
|
—
|
—
|
—
|
—
|
—
|
(35)
|
—
|
(35)
|
(0.02)
|
|
Adjusted
|
$
2,169
|
$
1,396
|
$
773
|
$
(107)
|
$
665
|
$
591
|
$
(14)
|
$
577
|
$ 0.40
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) For the
three months ended June 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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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)
|
|
|
Six Months Ended
June 30, 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
|
$
4,304
|
$
3,415
|
$
889
|
$
(388)
|
$
501
|
$
370
|
$
(28)
|
$
342
|
$ 0.24
|
|
|
Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Amortization
expense
|
—
|
(402)
|
402
|
—
|
402
|
345
|
—
|
345
|
0.24
|
|
|
Intangible asset
impairment charges
|
—
|
(7)
|
7
|
—
|
7
|
7
|
—
|
7
|
0.00
|
|
|
Acquisition /
divestiture-related net charges (credits)
|
50
|
(112)
|
163
|
—
|
163
|
167
|
—
|
167
|
0.12
|
|
|
Restructuring and
restructuring-related
|
|
|
|
|
|
|
|
|
|
|
|
net charges
(credits)
|
35
|
(29)
|
64
|
—
|
64
|
55
|
—
|
55
|
0.04
|
|
|
Litigation-related net
charges (credits)
|
—
|
(42)
|
42
|
—
|
42
|
33
|
—
|
33
|
0.02
|
|
|
Investment portfolio
net losses (gains)
|
—
|
—
|
—
|
11
|
11
|
7
|
—
|
7
|
0.00
|
|
|
EU MDR implementation
costs
|
21
|
(12)
|
33
|
—
|
33
|
28
|
—
|
28
|
0.02
|
|
|
Debt extinguishment
charges
|
—
|
—
|
—
|
194
|
194
|
149
|
—
|
149
|
0.10
|
|
|
Deferred tax expenses
(benefits)
|
—
|
—
|
—
|
—
|
—
|
63
|
—
|
63
|
0.04
|
|
|
Discrete tax
items
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
(0.00)
|
|
|
Adjusted
|
$
4,411
|
$
2,811
|
$
1,599
|
$
(183)
|
$
1,416
|
$
1,224
|
$
(28)
|
$
1,197
|
$ 0.83
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) For the six months
ended June 30, 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 available to
common stockholders.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 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
|
$
3,990
|
$
3,358
|
$
632
|
$
(157)
|
$
474
|
$
527
|
$
(28)
|
$
500
|
$ 0.35
|
|
|
Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Amortization
expense
|
—
|
(365)
|
365
|
—
|
365
|
328
|
—
|
328
|
0.23
|
|
|
Intangible asset
impairment charges
|
—
|
(45)
|
45
|
—
|
45
|
39
|
—
|
39
|
0.03
|
|
|
Acquisition /
divestiture-related net charges (credits)
|
21
|
34
|
(13)
|
(199)
|
(212)
|
(219)
|
—
|
(219)
|
(0.15)
|
|
|
Restructuring and
restructuring-related net charges (credits)
|
40
|
(48)
|
88
|
—
|
88
|
79
|
—
|
79
|
0.05
|
|
|
Litigation-related net
charges (credits)
|
—
|
(302)
|
302
|
—
|
302
|
233
|
—
|
233
|
0.16
|
|
|
Investment portfolio
net losses (gains)
|
—
|
—
|
—
|
152
|
152
|
117
|
—
|
117
|
0.08
|
|
|
EU MDR implementation
costs
|
15
|
(8)
|
23
|
—
|
23
|
20
|
—
|
20
|
0.01
|
|
|
Deferred tax expenses
(benefits)
|
—
|
—
|
—
|
—
|
—
|
43
|
—
|
43
|
0.03
|
|
|
Discrete tax
items
|
—
|
—
|
—
|
—
|
—
|
(38)
|
—
|
(38)
|
(0.03)
|
|
|
Adjusted
|
$
4,066
|
$
2,625
|
$
1,442
|
$
(205)
|
$
1,237
|
$
1,129
|
$
(28)
|
$
1,102
|
$ 0.77
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) For the six months
ended June 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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
An explanation of
the company's use of these non-GAAP financial measures is provided
at the end of this document.
|
|
|
BOSTON
SCIENTIFIC CORPORATION
Q3 and FY 2022 GUIDANCE
RECONCILIATIONS
(Unaudited)
Net Sales
|
Q3 2022
Estimate
|
|
Full Year 2022
Estimate
|
|
(Low)
|
(High)
|
|
(Low)
|
(High)
|
Reported
growth
|
6.0 %
|
8.0 %
|
|
6.5 %
|
7.5 %
|
Less: Impact of
foreign currency fluctuations
|
(4.0) %
|
(4.0) %
|
|
(4.0) %
|
(4.0) %
|
Operational
growth
|
10.0 %
|
12.0 %
|
|
10.5 %
|
11.5 %
|
Less: Impact of
certain acquisitions / divestitures
|
2.0 %
|
2.0 %
|
|
2.5 %
|
2.5 %
|
Organic
growth
|
8.0 %
|
10.0 %
|
|
8.0 %
|
9.0 %
|
Earnings per Share
|
Q3 2022
Estimate
|
|
Full Year 2022
Estimate
|
|
(Low)
|
(High)
|
|
(Low)
|
(High)
|
GAAP
results
|
$
0.20
|
$
0.24
|
|
$
0.69
|
$
0.76
|
|
|
|
|
|
|
Amortization
expense
|
0.12
|
0.12
|
|
0.48
|
0.48
|
Acquisition /
divestiture-related net charges (credits)
|
0.05
|
0.04
|
|
0.19
|
0.18
|
Restructuring and
restructuring-related net charges (credits)
|
0.03
|
0.02
|
|
0.09
|
0.07
|
Litigation-related net
charges (credits)
|
—
|
—
|
|
0.02
|
0.02
|
Debt extinguishment
charges
|
—
|
—
|
|
0.10
|
0.10
|
Other
adjustments
|
0.04
|
0.04
|
|
0.15
|
0.14
|
Adjusted
results
|
$
0.43
|
$
0.45
|
|
$
1.74
|
$
1.77
|
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 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