MARLBOROUGH, Mass., April 26,
2023 /PRNewswire/ -- Boston Scientific Corporation
(NYSE: BSX) generated net sales of $3.389
billion during the first quarter of 2023, growing 12.0
percent on a reported basis, 14.9 percent on an
operational1 basis and 14.0 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 $300
million or $0.21 per share
(EPS), compared to $97 million or
$0.07 per share a year ago, and
achieved adjusted3 EPS of $0.47 for the period, compared to $0.39 a year ago.
"I'm pleased with our excellent results this quarter, which
highlight our team's strong performance across each business and
region," said Mike Mahoney, chairman
and chief executive officer, Boston Scientific. "With a robust
pipeline in 2023 and beyond, I'm optimistic about our ability to
continue to deliver differentiated financial performance and the
opportunity to reach more patients with life-changing
therapies."
First quarter financial results and recent
developments:
- Reported net sales of $3.389
billion, representing an increase of 12.0 percent on a
reported basis, compared to the company's guidance range of 3 to 5
percent; 14.9 percent on an operational basis; and 14.0 percent on
an organic basis, compared to the company's guidance range of 6 to
8 percent, all compared to the prior year period.
- Reported GAAP net income attributable to Boston Scientific
common stockholders of $0.21 per
share, compared to the company's guidance range of $0.23 to $0.26 per
share, and achieved adjusted EPS of $0.47 per share, compared to the guidance range
of $0.42 to $0.44 per share.
- Achieved the following net sales growth in each reportable
segment, compared to the prior year period:
-
- MedSurg: 11.0 percent reported, 13.4 percent operational and
organic
- Cardiovascular: 12.7 percent reported, 15.9 percent operational
and 14.4 percent organic
- Achieved the following net sales growth in each region,
compared to the prior year period:
-
- U.S.: 12.7 percent reported and operational
- EMEA (Europe, Middle East and Africa): 14.2 percent reported and 20.0
percent operational
- APAC (Asia-Pacific): 5.9
percent reported and 15.4 percent operational
- LACA (Latin America and
Canada): 17.4 percent reported and
20.0 percent operational
- Emerging Markets4: 20.2 percent reported and 26.3
percent operational
- Received U.S. Food and Drug Administration (FDA) clearance and
launched in the U.S. and Japan the
LithoVue™ Elite Single-Use Digital Flexible Ureteroscope
System, the first ureteroscope system with a built-in sensor
that enables urologists to monitor intrarenal pressure in real time
during ureteroscopy procedures.
- Received Japanese Pharmaceuticals and Medical Devices Agency
(PMDA), Health Canada and CE Mark approval for the POLARx™ FIT
Cryoablation Balloon Catheter, an expandable balloon catheter
capable of enabling 28 and 31mm sizes, which promotes procedural
efficiency and adaptability to varying patient anatomies during the
treatment of atrial fibrillation.
- Announced real-world outcomes from the SURPASS one-year
analysis of more than 66,000 patients with the WATCHMAN FLX™
Left Atrial Appendage Closure Device during a late-breaking
session at the Cardiovascular Research Technologies (CRT) 2023
meeting, with data demonstrating a low 1.2% rate of ischemic stroke
and 0.11% rate of systemic embolism at one year. Also exceeded
300,000 patients worldwide who have been treated with the WATCHMAN
technology.
- Completed enrollment in the ACURATE IDE trial, a prospective,
multicenter, randomized study in the U.S. and Canada evaluating the safety and effectiveness
of the ACURATE neo2™ Aortic Valve System for the
treatment of patients with severe, symptomatic aortic stenosis
across all surgical risk levels who are indicated for transcatheter
aortic valve replacement.
- Commenced enrollment of the global ADVANTAGE AF clinical trial,
which will evaluate the safety and effectiveness of the
FARAPULSE™ Pulsed Field Ablation (PFA) System for the
treatment of drug-resistant, symptomatic, persistent atrial
fibrillation (AF). Also, presented as late-breaking science at the
European Heart Rhythm Association (EHRA) annual meeting were
real-world outcomes from the independent MANIFEST-PF registry,
which demonstrated the real-world safety, efficacy and efficiency
of the FARAPULSE PFA System. Despite a variety of workflows,
procedure times remained at approximately one hour, and there was
only one case of phrenic palsy and no reports of esophageal
complications or pulmonary vein stenosis. One-year freedom from
recurrence was 82% in patients with paroxysmal, or intermittent, AF
and 72% in patients with persistent AF.
- Closed the acquisition of Apollo Endosurgery, Inc., expanding
the Boston Scientific endoluminal surgery portfolio and enabling
entry into the endobariatric market.
- Completed the acquisition of a majority stake investment in
Acotec, a Chinese medical technology company that offers innovative
solutions designed for several types of interventional
procedures. This investment is expected to create strategic
value for both companies through a variety of opportunities,
including collaboration in research and development, manufacturing
and commercial strategies.
- Released the 2022 Performance Report, measuring progress on the
ways in which the company is transforming care, investing in
employees, protecting the environment and creating 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.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.
|
Net sales for the first quarter by business and
region:
|
|
|
|
|
Increase/(Decrease)
|
|
|
Three Months
Ended
March
31,
|
|
Reported
Basis
|
|
Impact of
Foreign
Currency
Fluctuations
|
|
Operational
Basis
|
|
Impact of
Recent
Acquisitions /
Divestitures
|
|
Organic
Basis
|
(in
millions)
|
2023
|
2022
|
|
|
|
|
|
|
Endoscopy
|
$
577
|
$
531
|
|
8.6 %
|
|
2.9 %
|
|
11.5 %
|
|
— %
|
|
11.5 %
|
|
Urology
|
469
|
413
|
|
13.5 %
|
|
2.1 %
|
|
15.6 %
|
|
— %
|
|
15.6 %
|
|
Neuromodulation
|
234
|
209
|
|
11.9 %
|
|
1.8 %
|
|
13.7 %
|
|
— %
|
|
13.7 %
|
|
MedSurg
|
1,280
|
1,153
|
|
11.0 %
|
|
2.4 %
|
|
13.4 %
|
|
— %
|
|
13.4 %
|
|
Cardiology
|
1,606
|
1,407
|
|
14.1 %
|
|
3.1 %
|
|
17.3 %
|
|
(1.9) %
|
|
15.4 %
|
|
Peripheral
Interventions
|
503
|
465
|
|
8.2 %
|
|
3.4 %
|
|
11.5 %
|
|
— %
|
|
11.5 %
|
|
Cardiovascular
|
2,110
|
1,873
|
|
12.7 %
|
|
3.2 %
|
|
15.9 %
|
|
(1.4) %
|
|
14.4 %
|
Net
Sales
|
$
3,389
|
$
3,026
|
|
12.0 %
|
|
2.9 %
|
|
14.9 %
|
|
(0.9) %
|
|
14.0 %
|
|
|
|
|
|
|
|
|
|
|
Increase/(Decrease)
|
|
|
|
|
|
|
Three Months
Ended
March 31,
|
|
Reported
Basis
|
|
Impact of
Foreign
Currency
Fluctuations
|
|
Operational
Basis
|
|
|
|
|
(in
millions)
|
2023
|
2022
|
|
|
|
|
U.S.
|
$
2,003
|
$
1,778
|
|
12.7 %
|
|
— %
|
|
12.7 %
|
|
|
|
|
|
EMEA
|
712
|
624
|
|
14.2 %
|
|
5.8 %
|
|
20.0 %
|
|
|
|
|
|
APAC
|
548
|
517
|
|
5.9 %
|
|
9.5 %
|
|
15.4 %
|
|
|
|
|
|
LACA
|
126
|
107
|
|
17.4 %
|
|
2.6 %
|
|
20.0 %
|
|
|
|
|
|
Net
Sales
|
$
3,389
|
$
3,026
|
|
12.0 %
|
|
2.9 %
|
|
14.9 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Emerging
Markets4
|
$
529
|
$
440
|
|
20.2 %
|
|
6.0 %
|
|
26.3 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 Second Quarter 2023
The company now estimates net sales growth for the full year
2023, versus the prior year period, to be approximately 8.5 to 10.5
percent on a reported basis, and approximately 8 to 10 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 $0.93
to $1.02 and estimates adjusted EPS,
excluding certain charges (credits), of $1.90 to $1.96.
The company estimates net sales growth for the second quarter of
2023, versus the prior year period, to be in a range of
approximately 6.5 to 8.5 percent on a reported basis, and
approximately 7 to 9 percent on an organic basis. Second 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 $0.23 to $0.27 and adjusted EPS, excluding certain charges
(credits), of $0.48 to $0.50.
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 second quarter and full year 2023; 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: 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; disruptions
caused by the COVID-19 pandemic on our operations and financial
results; labor shortages and increases in labor costs; new product
introductions; expected procedural volumes; the closing and
integration of acquisitions; demographic trends; intellectual
property; litigation; financial market conditions; the execution
and effect of our business strategy, including our cost-savings and
growth initiatives; and future business decisions made by us and
our competitors. New risks and uncertainties may arise from time to
time and are difficult to predict accurately and many of them are
beyond our control. For a further list and description of these and
other important risks and uncertainties that may affect our future
operations, see Part I, Item 1A - Risk Factors in our most recent
Annual Report on Form 10-K filed with the Securities and Exchange
Commission, which we may update in Part II, Item 1A - Risk Factors
in Quarterly Reports on Form 10-Q we have filed or will file
hereafter. We disclaim any intention or obligation to publicly
update or revise any forward-looking statements to reflect any
change in our expectations or in events, conditions, or
circumstances on which those expectations may be based, or that may
affect the likelihood that actual results will differ from those
contained in the forward-looking statements. This cautionary
statement is applicable to all forward-looking statements contained
in this press release.
Note: Amounts reported in millions within this press
release are computed based on the amounts in thousands. As a
result, the sum of the components reported in millions may not
equal the total amount reported in millions due to rounding.
Certain columns and rows within tables may not add due to the use
of rounded numbers. Percentages presented are calculated from the
underlying numbers in dollars.
Use of Non-GAAP Financial Information
A
reconciliation of the company's non-GAAP financial measures to the
corresponding GAAP measures, and an explanation of the company's
use of these non-GAAP financial measures, is included in the
exhibits attached to this press release.
CONTACT:
|
|
|
|
|
Media:
|
Kate Haranis
|
|
Investors:
|
Lauren
Tengler
|
|
508-683-6585
(office)
|
|
|
508-683-4479
(office)
|
|
Media
Relations
|
|
|
Investor
Relations
|
|
Boston Scientific
Corporation
|
|
|
Boston Scientific
Corporation
|
|
kate.haranis@bsci.com
|
|
|
BSXInvestorRelations@bsci.com
|
BOSTON SCIENTIFIC
CORPORATION
|
CONSOLIDATED STATEMENTS
OF OPERATIONS
|
(Unaudited)
|
|
|
Three Months
Ended
March
31,
|
in millions, except
per share data
|
2023
|
2022
|
|
|
|
Net sales
|
$
3,389
|
$
3,026
|
Cost of products
sold
|
1,040
|
955
|
Gross profit
|
2,349
|
2,071
|
|
|
|
Operating
expenses:
|
|
|
Selling, general and
administrative expenses
|
1,215
|
1,060
|
Research and
development expenses
|
337
|
319
|
Royalty
expense
|
11
|
12
|
Amortization
expense
|
203
|
198
|
Contingent
consideration net expense (benefit)
|
12
|
12
|
Restructuring net
charges (credits)
|
20
|
4
|
|
1,797
|
1,605
|
Operating income
(loss)
|
552
|
466
|
|
|
|
Other income
(expense):
|
|
|
Interest
expense
|
(65)
|
(279)
|
Other, net
|
(43)
|
(31)
|
Income
(loss) before income taxes
|
444
|
156
|
Income tax expense
(benefit)
|
131
|
45
|
Net income
(loss)
|
314
|
110
|
Preferred stock
dividends
|
(14)
|
(14)
|
Net income (loss)
attributable to noncontrolling interests
|
—
|
—
|
Net income (loss)
attributable to Boston Scientific common
stockholders
|
$
300
|
$
97
|
|
|
|
Net income (loss)
per common share - basic
|
$
0.21
|
$
0.07
|
Net income (loss)
per common share - diluted
|
$
0.21
|
$
0.07
|
|
|
|
Weighted-average
shares outstanding
|
|
|
Basic
|
1,435.8
|
1,427.8
|
Diluted
|
1,446.0
|
1,438.4
|
BOSTON SCIENTIFIC
CORPORATION
|
NON-GAAP NET INCOME AND
NET INCOME PER SHARE RECONCILIATIONS
|
(Unaudited)
|
|
|
Three Months Ended
March 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 (1)
|
|
Reported
|
$
2,349
|
$
1,797
|
$
552
|
$
(108)
|
$
444
|
$
314
|
$
(14)
|
$
300
|
$ 0.21
|
|
Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
|
|
|
Amortization
expense
|
—
|
(203)
|
203
|
—
|
203
|
175
|
—
|
175
|
0.12
|
|
Acquisition /
divestiture-related net charges (credits)
|
11
|
(39)
|
50
|
9
|
59
|
66
|
—
|
66
|
0.05
|
|
Restructuring and
restructuring-related net charges (credits)
|
17
|
(27)
|
44
|
—
|
44
|
37
|
—
|
37
|
0.03
|
|
Investment portfolio
net losses (gains)
|
—
|
—
|
—
|
21
|
21
|
16
|
—
|
16
|
0.01
|
|
EU MDR implementation
costs
|
11
|
(5)
|
16
|
—
|
16
|
14
|
—
|
14
|
0.01
|
|
Deferred tax expenses
(benefits)
|
—
|
—
|
—
|
—
|
—
|
41
|
—
|
41
|
0.03
|
|
Discrete tax
items
|
—
|
—
|
—
|
—
|
—
|
25
|
—
|
25
|
0.02
|
|
Adjusted
|
$
2,388
|
$
1,523
|
$
865
|
$
(78)
|
$
787
|
$
687
|
$
(14)
|
$
673
|
$ 0.47
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 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
|
$
2,071
|
$
1,605
|
$
466
|
$
(310)
|
$
156
|
$
110
|
$
(14)
|
$
97
|
$ 0.07
|
|
Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
|
|
|
Amortization
expense
|
—
|
(198)
|
198
|
—
|
198
|
170
|
—
|
170
|
0.12
|
|
Acquisition /
divestiture-related net charges (credits)
|
27
|
(45)
|
72
|
—
|
72
|
72
|
—
|
72
|
0.05
|
|
Restructuring and
restructuring-related net charges (credits)
|
18
|
(11)
|
29
|
—
|
29
|
25
|
—
|
25
|
0.02
|
|
Investment portfolio
net losses (gains)
|
—
|
—
|
—
|
7
|
7
|
5
|
—
|
5
|
0.00
|
|
EU MDR implementation
costs
|
10
|
(6)
|
16
|
—
|
16
|
14
|
—
|
14
|
0.01
|
|
Debt extinguishment
charges
|
—
|
—
|
—
|
194
|
194
|
149
|
—
|
149
|
0.10
|
|
Deferred tax expenses
(benefits)
|
—
|
—
|
—
|
—
|
—
|
30
|
—
|
30
|
0.02
|
|
Discrete tax
items
|
—
|
—
|
—
|
—
|
—
|
0
|
—
|
0
|
0.00
|
|
Adjusted
|
$
2,127
|
$
1,346
|
$
781
|
$
(110)
|
$
671
|
$
575
|
$
(14)
|
$
562
|
$ 0.39
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) For the
three months ended March 31, 2023 and 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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
An explanation of
the company's use of these non-GAAP financial measures is provided
at the end of this document.
|
|
BOSTON SCIENTIFIC
CORPORATION
Q2 and FY 2023 GUIDANCE
RECONCILIATIONS
(Unaudited)
Net Sales
|
Q2 2023
Estimate
|
|
Full Year 2023
Estimate
|
|
(Low)
|
(High)
|
|
(Low)
|
(High)
|
Reported
growth
|
6.5 %
|
8.5 %
|
|
8.5 %
|
10.5 %
|
Impact of foreign
currency fluctuations
|
1.0 %
|
1.0 %
|
|
0.5 %
|
0.5 %
|
Operational
growth
|
7.5 %
|
9.5 %
|
|
9.0 %
|
11.0 %
|
Impact of acquisitions
/ divestitures
|
(0.5) %
|
(0.5) %
|
|
(1.0) %
|
(1.0) %
|
Organic
growth
|
7.0 %
|
9.0 %
|
|
8.0 %
|
10.0 %
|
Earnings per Share
|
Q2 2023
Estimate
|
|
Full Year 2023
Estimate
|
|
(Low)
|
(High)
|
|
(Low)
|
(High)
|
GAAP
results
|
$
0.23
|
$
0.27
|
|
$
0.93
|
$
1.02
|
|
|
|
|
|
|
Amortization
expense
|
0.13
|
0.13
|
|
0.49
|
0.49
|
Acquisition /
divestiture-related
net charges (credits)
|
0.05
|
0.04
|
|
0.15
|
0.14
|
Restructuring and
restructuring-
related net charges (credits)
|
0.04
|
0.03
|
|
0.14
|
0.13
|
Other
adjustments
|
0.04
|
0.04
|
|
0.20
|
0.19
|
Adjusted
results
|
$
0.48
|
$
0.50
|
|
$
1.90
|
$
1.96
|
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 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) 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.
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SOURCE Boston Scientific Corporation