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% ================= ================= ================= =================
(1) Certain prior year's amounts have been reclassified to conform to the current year's presentation.