We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Boston Scientific Corporation | NYSE:BSX | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.445 | 0.61% | 72.995 | 73.02 | 72.62 | 72.70 | 745,285 | 15:22:58 |
MARLBOROUGH, Mass., July 29, 2020 /PRNewswire/ -- Boston Scientific Corporation (NYSE: BSX) generated sales of $2.003 billion during the second quarter of 2020. This represents a decline of (23.9) percent on a reported basis, (23.1) percent on an operational1 basis and (28.7) percent on an organic2 basis, all compared to the prior year period. The company reported a GAAP loss of $147 million or $(0.11) per share (EPS), compared to GAAP earnings of $154 million or $0.11 per share a year ago, and achieved adjusted earnings per share of $0.08 for the period, compared to $0.39 a year ago.
"We remain focused on the safety of our team, our customers and the patients they serve, and were pleased to see the business recovering over the course of the quarter," said Mike Mahoney, chairman and chief executive officer, Boston Scientific. "With a strong pipeline of differentiated products and an agile global team, we'll continue to execute on our strategy and make prudent decisions to position us for success as deferred procedures resume."
Second quarter financial results and recent developments:
1. Operational revenue growth excludes the impact of foreign currency fluctuations. |
2. Organic revenue growth excludes the impact of foreign currency fluctuations and sales from the recent acquisitions of Vertiflex, Inc. and BTG plc (BTG), each with no prior year comparable sales. Organic revenue growth also excludes the impact of the divestiture of our global embolic microspheres portfolio, a transaction entered into in connection with obtaining the antitrust clearances required to complete the BTG transaction, as well as the Q2 divestiture of our intrauterine health franchise. |
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. |
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). As part of our acquisition of BTG on August 19, 2019, we acquired an Interventional Medicine business, which is now included in our Peripheral Interventions operating segment's revenues from the date of acquisition. |
5. As part of our acquisition of BTG on August 19, 2019, we acquired a specialty pharmaceuticals business (Specialty Pharmaceuticals). Subsequent to acquisition, Specialty Pharmaceuticals is now a stand-alone operating segment presented alongside our Medical Device reportable segments. Specialty Pharmaceuticals net sales are substantially U.S. based. Our chief operating decision maker (CODM) reviews financial information of our globally managed Specialty Pharmaceuticals operating segment at the worldwide level without further disaggregation into regional results. As such, Specialty Pharmaceuticals net sales are presented globally, and our Medical Devices reportable segments regional net sales results do not include Specialty Pharmaceuticals. |
Net sales for the second quarter by business and region:
Change | ||||||||||||||||||||||
Three Months Ended | Reported | Less: Impact | Operational | Less: | Organic | |||||||||||||||||
(in millions) | 2020 | 2019 | ||||||||||||||||||||
Endoscopy | $ | 348 | $ | 470 | (26.0)% | (0.5)% | (25.5)% | —% | (25.5)% | |||||||||||||
Urology and Pelvic Health | 228 | 348 | (34.5)% | (0.4)% | (34.1)% | (1.7)% | (32.4)% | |||||||||||||||
MedSurg | 576 | 818 | (29.6)% | (0.5)% | (29.1)% | (0.7)% | (28.4)% | |||||||||||||||
Cardiac Rhythm Management | 351 | 498 | (29.4)% | (0.6)% | (28.8)% | —% | (28.8)% | |||||||||||||||
Electrophysiology | 51 | 84 | (39.2)% | (0.3)% | (38.9)% | —% | (38.9)% | |||||||||||||||
Neuromodulation | 122 | 204 | (40.0)% | (0.3)% | (39.7)% | 2.9% | (42.6)% | |||||||||||||||
Rhythm and Neuro | 525 | 786 | (33.2)% | (0.5)% | (32.7)% | 0.7% | (33.4)% | |||||||||||||||
Interventional Cardiology | 495 | 706 | (29.9)% | (1.1)% | (28.8)% | —% | (28.8)% | |||||||||||||||
Peripheral Interventions | 340 | 320 | 6.0% | (1.0)% | 7.0% | 24.4% | (17.4)% | |||||||||||||||
Cardiovascular | 834 | 1,026 | (18.7)% | (1.1)% | (17.6)% | 7.7% | (25.3)% | |||||||||||||||
Medical Devices4 | 1,935 | 2,631 | (26.5)% | (0.8)% | (25.7)% | 3.0% | (28.7)% | |||||||||||||||
Specialty Pharmaceuticals5 | 68 | n/a | n/a | n/a | n/a | n/a | n/a | |||||||||||||||
Net Sales | $ | 2,003 | $ | 2,631 | (23.9)% | (0.8)% | (23.1)% | 5.6% | (28.7)% | |||||||||||||
Change | ||||||||||||||||
Three Months Ended | Reported | Less: Impact | Operational | |||||||||||||
(in millions) | 2020 | 2019 | ||||||||||||||
U.S. | $ | 1,058 | $ | 1,478 | (28.4)% | —% | (28.4)% | |||||||||
EMEA | 416 | 571 | (27.2)% | (1.6)% | (25.6)% | |||||||||||
APAC | 410 | 481 | (14.8)% | (0.8)% | (14.0)% | |||||||||||
Latin America and Canada | 51 | 101 | (49.4)% | (6.3)% | (43.1)% | |||||||||||
Medical Devices4 | 1,935 | 2,631 | (26.5)% | (0.8)% | (25.7)% | |||||||||||
Specialty Pharmaceuticals5 | 68 | n/a | n/a | n/a | n/a | |||||||||||
Net Sales | $ | 2,003 | $ | 2,631 | (23.9)% | (0.8)% | (23.1)% | |||||||||
Emerging Markets3 | $ | 255 | $ | 318 | (19.7)% | (5.1)% | (14.6)% | |||||||||
Amounts may not add due to rounding. Growth rates are based on actual, non-rounded amounts and may not recalculate precisely. | ||||||||||||||||
Sales growth rates that exclude the impact of foreign currency fluctuations and/or the impact of recent aforementioned acquisitions / divestitures are not prepared in accordance with U.S. GAAP. | ||||||||||||||||
Conference Call Information
Boston Scientific management will be discussing these results with analysts on a conference call today at 8:00 a.m. EDT. 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 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 business plans and product performance, and the impact of the COVID-19 outbreak 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 document.
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: | Susie Lisa, CFA | |
508-683-6585 (office) | 508-683-5565 (office) | |||
Media Relations | Investor Relations | |||
Boston Scientific Corporation | Boston Scientific Corporation | |||
kate.haranis@bsci.com | BSXInvestorRelations@bsci.com |
BOSTON SCIENTIFIC CORPORATION CONDENSED CONSOLIDATED GAAP RESULTS OF OPERATIONS (Unaudited) | |||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||
in millions, except per share data | 2020 | 2019 | 2020 | 2019 | |||||||||
Net sales | $ | 2,003 | $ | 2,631 | $ | 4,546 | $ | 5,124 | |||||
Cost of products sold | 791 | 758 | 1,596 | 1,488 | |||||||||
Gross profit | 1,212 | 1,873 | 2,950 | 3,636 | |||||||||
Operating expenses: | |||||||||||||
Selling, general and administrative expenses | 798 | 968 | 1,776 | 1,837 | |||||||||
Research and development expenses | 242 | 280 | 542 | 559 | |||||||||
Royalty expense | 8 | 17 | 20 | 32 | |||||||||
Amortization expense | 197 | 161 | 398 | 321 | |||||||||
Intangible asset impairment charges | 34 | 37 | 233 | 105 | |||||||||
Contingent consideration expense (benefit) | — | 10 | (108) | (18) | |||||||||
Restructuring charges (credits) | 3 | 1 | 13 | 7 | |||||||||
Litigation-related net charges (credits) | — | 15 | — | (133) | |||||||||
1,283 | 1,489 | 2,875 | 2,711 | ||||||||||
Operating income (loss) | (71) | 384 | 75 | 925 | |||||||||
Other income (expense): | |||||||||||||
Interest expense | (91) | (89) | (179) | (198) | |||||||||
Other, net | (18) | (150) | (54) | (125) | |||||||||
Income (loss) before income taxes | (181) | 145 | (159) | 602 | |||||||||
Income tax expense (benefit) | (33) | (9) | (22) | 24 | |||||||||
Net income (loss) | $ | (147) | $ | 154 | $ | (137) | $ | 578 | |||||
Preferred stock dividends | (5) | — | (5) | — | |||||||||
Net income (loss) available to common stockholders | $ | (153) | $ | 154 | $ | (142) | $ | 578 | |||||
Net income (loss) per common share - basic | $ | (0.11) | $ | 0.11 | $ | (0.10) | $ | 0.42 | |||||
Net income (loss) per common share - assuming dilution | $ | (0.11) | $ | 0.11 | $ | (0.10) | $ | 0.41 | |||||
Weighted-average shares outstanding | |||||||||||||
Basic | 1,410.9 | 1,391.0 | 1,404.1 | 1,389.4 | |||||||||
Assuming dilution | 1,410.9 | 1,408.6 | 1,404.1 | 1,408.5 |
BOSTON SCIENTIFIC CORPORATION NON-GAAP NET INCOME AND NET INCOME PER SHARE RECONCILIATIONS (Unaudited) | |||||||||||||||||||||
Three Months Ended June 30, 2020 | |||||||||||||||||||||
(in millions, except per share data) | Gross | Operating | Operating | Other | Income (Loss) | Net Income | Impact per | ||||||||||||||
Reported | $ | 1,212 | $ | 1,283 | $ | (71) | $ | (110) | $ | (181) | $ | (153) | $ | (0.11) | |||||||
Non-GAAP adjustments: | |||||||||||||||||||||
Amortization expense | — | (197) | 197 | — | 197 | 177 | 0.12 | ||||||||||||||
Intangible asset impairment charges | — | (34) | 34 | — | 34 | 27 | 0.02 | ||||||||||||||
Acquisition / divestitures-related net charges (credits) | 30 | (31) | 61 | (1) | 60 | 50 | 0.04 | ||||||||||||||
Restructuring and restructuring-related net charges (credits) | 16 | (7) | 23 | — | 23 | 20 | 0.01 | ||||||||||||||
EU MDR implementation costs | 5 | (2) | 7 | — | 7 | 6 | 0.00 | ||||||||||||||
Deferred tax expenses (benefits) | — | — | — | — | — | (18) | (0.01) | ||||||||||||||
Discrete tax items | — | — | — | — | — | 11 | 0.01 | ||||||||||||||
Adjusted | $ | 1,263 | $ | 1,012 | $ | 252 | $ | (111) | $ | 141 | $ | 120 | $ | 0.08 | |||||||
(1) Assumes dilution of 12.6 million shares for all or a portion of the non-GAAP adjustments | |||||||||||||||||||||
* Net income (loss) available to common stockholders | |||||||||||||||||||||
Three Months Ended June 30, 2019 | |||||||||||||||||||||
(in millions, except per share data) | Gross | Operating | Operating | Other | Income (Loss) | Net Income | Impact per | ||||||||||||||
Reported | $ | 1,873 | $ | 1,489 | $ | 384 | $ | (239) | $ | 145 | $ | 154 | $ | 0.11 | |||||||
Non-GAAP adjustments: | |||||||||||||||||||||
Amortization expense | — | (161) | 161 | 1 | 162 | 144 | 0.10 | ||||||||||||||
Intangible asset impairment charges | — | (37) | 37 | — | 37 | 35 | 0.02 | ||||||||||||||
Acquisition-related net charges (credits) | 19 | (45) | 64 | 161 | 225 | 177 | 0.13 | ||||||||||||||
Restructuring and restructuring-related net charges (credits) | 6 | (5) | 11 | — | 11 | 10 | 0.01 | ||||||||||||||
Litigation-related net charges (credits) | — | (15) | 15 | — | 15 | 12 | 0.01 | ||||||||||||||
Investment impairment charges | — | — | — | 1 | 1 | 1 | 0.00 | ||||||||||||||
Discrete tax items | — | — | — | — | — | 18 | 0.01 | ||||||||||||||
Adjusted | $ | 1,897 | $ | 1,226 | $ | 672 | $ | (76) | $ | 596 | $ | 550 | $ | 0.39 | |||||||
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, 2020 | |||||||||||||||||||||
in millions, except per share data | Gross | Operating | Operating | Other | Income (Loss) | Net Income | Impact per | ||||||||||||||
Reported | $ | 2,950 | $ | 2,875 | $ | 75 | $ | (234) | $ | (159) | $ | (142) | $ | (0.10) | |||||||
Non-GAAP adjustments: | |||||||||||||||||||||
Amortization expense | — | (398) | 398 | — | 398 | 356 | 0.25 | ||||||||||||||
Intangible asset impairment charges | — | (233) | 233 | — | 233 | 195 | 0.14 | ||||||||||||||
Acquisition / divestitures-related net charges (credits) | 67 | 38 | 29 | 8 | 37 | 13 | 0.01 | ||||||||||||||
Restructuring and restructuring-related net charges (credits) | 32 | (22) | 53 | — | 53 | 45 | 0.03 | ||||||||||||||
EU MDR implementation costs | 9 | (3) | 12 | — | 12 | 11 | 0.01 | ||||||||||||||
Deferred tax expenses (benefits) | — | — | — | — | — | 8 | 0.01 | ||||||||||||||
Discrete tax items | — | — | — | — | — | 24 | 0.02 | ||||||||||||||
Adjusted | $ | 3,057 | $ | 2,257 | $ | 801 | $ | (226) | $ | 575 | $ | 511 | $ | 0.36 | |||||||
(1) Assumes dilution of 14.4 million shares for all or a portion of the non-GAAP adjustments | |||||||||||||||||||||
* Net income (loss) available to common stockholders | |||||||||||||||||||||
Six Months Ended June 30, 2019 | |||||||||||||||||||||
in millions, except per share data | Gross | Operating | Operating | Other | Income (Loss) | Net Income | Impact per | ||||||||||||||
Reported | $ | 3,636 | $ | 2,711 | $ | 925 | $ | (323) | $ | 602 | $ | 578 | $ | 0.41 | |||||||
Non-GAAP adjustments: | |||||||||||||||||||||
Amortization expense | — | (321) | 321 | 2 | 323 | 287 | 0.20 | ||||||||||||||
Intangible asset impairment charges | — | (105) | 105 | — | 105 | 97 | 0.07 | ||||||||||||||
Acquisition / divestitures-related net charges (credits) | 31 | (38) | 69 | 132 | 201 | 155 | 0.11 | ||||||||||||||
Restructuring and restructuring-related net charges (credits) | 10 | (14) | 23 | — | 23 | 19 | 0.01 | ||||||||||||||
Litigation-related net charges (credits) | — | 133 | (133) | — | (133) | (116) | (0.08) | ||||||||||||||
Investment impairment charges | — | — | — | 2 | 2 | 2 | 0.00 | ||||||||||||||
Discrete tax items | — | — | — | — | — | 18 | 0.01 | ||||||||||||||
Adjusted | $ | 3,677 | $ | 2,367 | $ | 1,310 | $ | (187) | $ | 1,123 | $ | 1,040 | $ | 0.74 | |||||||
An explanation of the company's use of these non-GAAP financial measures is provided at the end of this document. |
Use of Non-GAAP Financial Measures
To supplement our unaudited condensed consolidated financial statements presented on a GAAP basis, we disclose certain non-GAAP financial measures, including adjusted net income (loss) 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 and the impact of recent aforementioned acquisitions and divestitures. 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) and adjusted net income (loss) per share we exclude certain charges (credits) from GAAP net income 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 FASB Accounting Standards Codification 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) and adjusted net income (loss) per share are GAAP net income (loss) and GAAP net income (loss) per share available to common stockholders.
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 period. To calculate organic net sales growth rates, we remove the impact of recent aforementioned acquisitions with no prior period related net sales from operational net sales. In addition, to calculate organic net sales growth rates, we remove from prior year, sales from product lines that we divested. 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) and adjusted net income (loss) per share, operational net sales and organic net sales, 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:http://www.prnewswire.com/news-releases/boston-scientific-announces-results-for-second-quarter-2020-301101773.html
SOURCE Boston Scientific Corporation
Copyright 2020 PR Newswire
1 Year Boston Scientific Chart |
1 Month Boston Scientific Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions