-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Sjj9vAGb/amoNVt3pThmuD++m+aRHdGeZSSqNpeUmOxfmIfQq+DfGGI+MgHHNahl 95Vq7AKGUYVcX8EHH4P9yw== 0001072613-03-001653.txt : 20031021 0001072613-03-001653.hdr.sgml : 20031021 20031021162245 ACCESSION NUMBER: 0001072613-03-001653 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20031021 ITEM INFORMATION: ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20031021 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BOSTON SCIENTIFIC CORP CENTRAL INDEX KEY: 0000885725 STANDARD INDUSTRIAL CLASSIFICATION: SURGICAL & MEDICAL INSTRUMENTS & APPARATUS [3841] IRS NUMBER: 042695240 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-11083 FILM NUMBER: 03950008 BUSINESS ADDRESS: STREET 1: ONE BOSTON SCIENTIFIC PL CITY: NATICK STATE: MA ZIP: 01760-1537 BUSINESS PHONE: 5086508000 8-K 1 form8-k_12251.txt FORM 8-K DATED OCTOBER 21, 2003 ================================================================================ SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 ------------ FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 ------------ DATE OF REPORT: OCTOBER 21, 2003 (Date of earliest event reported) BOSTON SCIENTIFIC CORPORATION ----------------------------- (Exact name of registrant as specified in charter) DELAWARE 1-11083 04-2695240 -------- ------- ---------- (State or other (Commission (IRS employer jurisdiction of file number) identification no.) incorporation) ONE BOSTON SCIENTIFIC PLACE, NATICK, MASSACHUSETTS 01760-1537 ------------------------------------------------------------- (Address of principal executive offices) (Zip code) Registrant's telephone number, including area code: (508) 650-8000 ================================================================================ ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS. (c) Exhibits 99.1 Press Release issued by Boston Scientific Corporation dated October 21, 2003. ITEM 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION. On October 21, 2003, Boston Scientific Corporation (the "Company") issued a press release announcing financial results for the third quarter ended September 30, 2003. A copy of the release is furnished with this report as a exhibit 99.1. The information in this Current Report on Form 8-K and the Exhibit attached hereto shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 (the "Exchange Act") or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, regardless of any general incorporation language in such filing. SIGNATURES Pursuant to the requirements of the Securities and Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. BOSTON SCIENTIFIC CORPORATION Date: October 21, 2003 By: /s/ Lawrence J. Knopf ------------------------------------ Lawrence J. Knopf Vice President and Assistant General Counsel EX-99.1 3 exh99-1_12251.txt PRESS RELEASE EXHIBIT 99.1 ------------ Boston Scientific Corporation One Boston Scientific Place Natick, MA 01760-1537 508.650.8000 www.bostonscientific.com BOSTON SCIENTIFIC ANNOUNCES THIRD QUARTER RESULTS Natick, MA (October 21, 2003) -- Boston Scientific Corporation (NYSE: BSX) today announced financial results for its third quarter ended September 30, 2003. Net sales for the third quarter increased 21 percent to $876 million as compared to $722 million for the third quarter of 2002. Excluding the favorable impact of $27 million of foreign currency fluctuations, net sales for the quarter were $849 million, an increase of 18 percent. Net income for the quarter, excluding net special charges, increased 38 percent to $137 million, or $0.32 per share (diluted), as compared to $99 million, or $0.24 per share, excluding net special credits, for the third quarter of 2002. Reported net income for the quarter, including net special charges of $13 million (after-tax), was $124 million, or $0.29 per share, as compared to reported net income of $161 million, or $0.39 per share, for the third quarter of 2002. (The third quarter of 2002 included special after-tax credits of $62 million.) The net special charges for the quarter include purchased in-process research and development costs of $8 million (after-tax), or $0.02 per share, related to acquisitions, as well as $5 million (after-tax), or $0.01 per share, in payments related to product liability settlements. (The per share amounts do not reflect the previously announced 2-for-1 stock split, which is scheduled to take effect November 5th.) "This was a record quarter for sales, fueled in part by continued strong TAXUS sales as we further strengthened our competitive position in those markets where TAXUS has been launched," said Jim Tobin, President and Chief Executive Officer of Boston Scientific. "We experienced double-digit growth in both our Cardiovascular and Endosurgery groups, as well as in our domestic and international businesses. We were especially pleased to see 33 percent growth in U.S. sales of our PTCA(1) balloons." "The quarter was also marked by the announcement of our extraordinary TAXUS IV clinical results, and we are looking forward to our FDA panel meeting next month," added Tobin. "During the quarter we invested heavily in preparation for the launch of TAXUS in the United States. We are taking all measures necessary to position us for a successful launch when we receive approval from the FDA." (1) Percutaneous Transluminal Coronary Angioplasty -- more -- Boston Scientific Corporation/Page 2 October 21, 2003 Boston Scientific officials will be discussing these and other issues with analysts on a conference call at 5:30 p.m. (ET) Tuesday, October 21. The Company will webcast the call to all 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 10 business days on the Boston Scientific website. Boston Scientific is a worldwide developer, manufacturer and marketer of medical devices whose products are used in a broad range of interventional medical specialties. For more information, please visit: www.bostonscientific.com. The Company discloses non-GAAP or pro forma measures that exclude certain items. Non-GAAP measures may exclude such items as charges related to purchased in-process research and development and certain litigation. Management uses these measures to establish operational goals, and believes that non-GAAP measures may assist investors in analyzing the underlying trends in the Company's business over time. Investors should consider these non-GAAP measures in addition to, not as a substitute for, or as superior to, financial reporting measures prepared in accordance with GAAP. This press release contains forward-looking statements. The Company wishes to caution the reader of this press release that actual results may differ from those discussed in the forward-looking statements and may be adversely affected by, among other things, risks associated with new product development and introduction, clinical trials, regulatory approvals, competitive offerings, intellectual property, litigation, the Company's relationship with third parties, the Company's overall business strategy, and other factors described in the Company's filings with the Securities and Exchange Commission. CONTACT: Milan Kofol 508-650-8569 Investor Relations Boston Scientific Corporation Paul Donovan 508-650-8541 Media Relations Boston Scientific Corporation BOSTON SCIENTIFIC CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
Three Months Ended Three Months Ended September 30, 2003 September 30, 2002 IN MILLIONS, EXCEPT SHARE AND PER SHARE DATA Reported Adjustments Adjusted Reported Adjustments Adjusted ================================================================================================================================ Net sales $876 $876 $722 $722 Cost of products sold 243 243 211 211 ----------------------------------- ---------------------------------- Gross profit 633 633 511 511 Selling, general and administrative expenses 295 295 249 249 Amortization expense 21 21 19 19 Royalties 15 15 9 9 Research and development expenses 113 113 87 87 Purchased research and development 8 ($8) Litigation-related charges (credits), net 8 (8) (99) $99 ----------------------------------- ---------------------------------- 460 (16) 444 265 99 364 ----------------------------------- ---------------------------------- Operating income 173 16 189 246 (99) 147 Other income (expense): Interest expense (12) (12) (10) (10) Other, net (3) (3) (1) (1) ----------------------------------------------------------------------------- Income before income taxes 158 16 174 235 (99) 136 Income taxes 34 3 37 74 (37) 37 ----------------------------------- ---------------------------------- Net income $124 $13 $137 $161 ($62) $99 =================================== ================================== Net income per common share - assuming dilution $0.29 $0.32 $0.39 $0.24 =========== =========== =========== =========== Weighted average shares outstanding - assuming dilution (in thousands) 422,704 422,704 414,908 414,908 =========== =========== =========== ===========
BOSTON SCIENTIFIC CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
Nine Months Ended Nine Months Ended September 30, 2003 September 30, 2002 IN MILLIONS, EXCEPT SHARE AND PER SHARE DATA Reported Adjustments Adjusted Reported Adjustments Adjusted ================================================================================================================================== Net sales $2,537 $2,537 $2,105 $2,105 Cost of products sold 704 704 643 ($29) 614 ----------------------------------- ------------------------------------ Gross profit 1,833 1,833 1,462 29 1,491 Selling, general and administrative expenses 858 858 736 736 Amortization expense 62 62 53 53 Royalties 40 40 26 26 Research and development expenses 324 324 248 248 Purchased research and development 33 ($33) 45 (45) Litigation-related charges (credits), net 15 (15) (99) 99 ----------------------------------- ------------------------------------ 1,332 (48) 1,284 1,009 54 1,063 ----------------------------------- ------------------------------------ Operating income 501 48 549 453 (25) 428 Other income (expense): Interest expense (35) (35) (32) (32) Other, net (7) (7) (15) 18 3 ------------------------------------------------------------------------------- Income before income taxes 459 48 507 406 (7) 399 Income taxes 124 3 127 138 (22) 116 ----------------------------------- ------------------------------------ Net income $335 $45 $380 $268 $15 $283 =================================== ==================================== Net income per common share - assuming dilution $0.79 $0.90 $0.65 $0.69 =========== =========== ============ ============ Weighted average shares outstanding - assuming dilution (in thousands) 422,367 422,367 412,990 412,990 =========== =========== ============ ============
BOSTON SCIENTIFIC CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
SEPTEMBER 30, DECEMBER 31, IN MILLIONS 2003 2002 ==================================================================================== Assets Current assets: Cash and cash equivalents $ 537 $ 277 Trade accounts receivable, net 508 435 Inventories 247 243 Other current assets 218 253 --------------------------------- Total current assets 1,510 1,208 Property, plant and equipment, net 692 636 Intangibles, net 2,471 2,367 Other assets 530 239 --------------------------------- $ 5,203 $ 4,450 Liabilities and Stockholders' Equity Current liabilities: Borrowings due within one year $ 663 $ 88 Accounts payable and accrued expenses 624 705 Other current liabilities 153 130 --------------------------------- Total current liabilities 1,440 923 Long-term debt 977 847 Other long-term liabilities 211 213 Stockholders' equity 2,575 2,467 --------------------------------- $ 5,203 $ 4,450 =================================
BOSTON SCIENTIFIC CORPORATION WORLDWIDE SALES REGIONAL SUMMARY (UNAUDITED)
WORLDWIDE TOTAL (1) ------------------------------------------------------------------------------------ Three Months Ended September 30, Change ------------------------------------------------------------------------------------ At Actual Foreign At Constant Foreign In millions 2003 2002 Currency Basis Currency Basis ----------------- ----------------- ----------------- ----------------- DOMESTIC $ 481 $ 431 12% 12% EUROPE 166 111 50% 32% JAPAN 136 126 8% 6% INTERCONTINENTAL 93 54 72% 60% ----------------- ----------------- ----------------- ----------------- INTERNATIONAL 395 291 36% 26% ----------------- ----------------- ----------------- ----------------- WORLDWIDE $ 876 $ 722 21% 18% ================= ================= ================= ================= WORLDWIDE TOTAL (1) ------------------------------------------------------------------------------------ Nine Months Ended September 30 Change ------------------------------------------------------------------------------------ At Actual Foreign At Constant Foreign In millions 2003 2002 Currency Basis Currency Basis ----------------- ----------------- ----------------- ----------------- DOMESTIC $1,442 $1,256 15% 15% EUROPE 476 332 43% 22% JAPAN 396 362 9% 3% INTERCONTINENTAL 223 155 44% 37% ----------------- ----------------- ----------------- ----------------- INTERNATIONAL 1,095 849 29% 17% ----------------- ----------------- ----------------- ----------------- WORLDWIDE $2,537 $2,105 21% 16% ================= ================= ================= =================
(1) Certain prior year's amounts have been reclassified to conform to the current year's presentation. BOSTON SCIENTIFIC CORPORATION WORLDWIDE SALES DIVISIONAL SUMMARY (UNAUDITED)
WORLDWIDE TOTAL (1) ------------------------------------------------------------------------------------ Three Months Ended September 30, Change ------------------------------------------------------------------------------------ At Actual Foreign At Constant Foreign In millions 2003 2002 Currency Basis Currency Basis ----------------- ----------------- ----------------- ----------------- Cardiovascular $544 $436 25% 21% Electrophysiology 27 26 4% 2% Neurovascular 55 40 38% 31% ----------------- ----------------- ----------------- ----------------- CARDIOVASCULAR 626 502 25% 20% Oncology 43 38 13% 12% Endoscopy 147 130 13% 10% Urology 60 52 15% 12% ----------------- ----------------- ----------------- ----------------- ENDOSURGERY 250 220 14% 11% ----------------- ----------------- ----------------- ----------------- WORLDWIDE $876 $722 21% 18% ================= ================= ================= ================= WORLDWIDE TOTAL (1) ------------------------------------------------------------------------------------ Nine Months Ended September 30, Change ------------------------------------------------------------------------------------ At Actual Foreign At Constant Foreign In millions 2003 2002 Currency Basis Currency Basis ----------------- ----------------- ----------------- ----------------- Cardiovascular $1,578 $1,283 23% 18% Electrophysiology 82 74 11% 7% Neurovascular 161 123 31% 23% ----------------- ----------------- ----------------- ----------------- CARDIOVASCULAR 1,821 1,480 23% 17% Oncology 122 105 16% 13% Endoscopy 429 378 13% 9% Urology 165 142 16% 13% ----------------- ----------------- ----------------- ----------------- ENDOSURGERY 716 625 15% 10% ----------------- ----------------- ----------------- ----------------- WORLDWIDE $2,537 $2,105 21% 16% ================= ================= ================= =================
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