-----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, LPwjAoqQEVCNrcikV4tPm5lFmfcB5kB1bJ95dJLcnhIvbw7hO5Bf8hKnlTDiCUdb LMpmqjma9CFQhBOKCmqAqg== 0001072613-04-001377.txt : 20040727 0001072613-04-001377.hdr.sgml : 20040727 20040726084347 ACCESSION NUMBER: 0001072613-04-001377 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20040726 ITEM INFORMATION: ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20040726 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: 04929984 BUSINESS ADDRESS: STREET 1: ONE BOSTON SCIENTIFIC PL CITY: NATICK STATE: MA ZIP: 01760-1537 BUSINESS PHONE: 5086508000 8-K 1 form8-k_12811.txt BOSTON SCIENTIFIC CORPORATION FORM 8-K ================================================================================ UNITED STATES 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 (Date of earliest event reported): July 26, 2004 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 July 26, 2004. ITEM 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION. On July 26, 2004, Boston Scientific Corporation (the "Company") issued a press release announcing financial results for the second quarter ended June 30, 2004. A copy of the release is furnished with this report as 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. 2 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: July 26, 2004 By: /s/ Lawrence J. Knopf -------------------------------------------- Lawrence J. Knopf Vice President and Assistant General Counsel 3 INDEX TO EXHIBITS Exhibit Number Description - -------------- ----------- 99.1 Press Release issued by Boston Scientific Corporation dated July 26, 2004. 4 EX-99.1 2 exhibit99-1_12811.txt PRESS RELEASE DATED JULY 26, 2004 EXHIBIT 99.1 ------------ NEWS BOSTON FOR IMMEDIATE RELEASE SCIENTIFIC Boston Scientific Corporation One Boston Scientific Park Natick, MA 01760-1537 508-650-8000 www.bostonscientific.com BOSTON SCIENTIFIC ANNOUNCES SECOND QUARTER RESULTS Natick, MA (July 26, 2004) -- Boston Scientific Corporation (NYSE: BSX) today announced financial results for its second quarter ended June 30, 2004. Net sales for the second quarter were $1.460 billion as compared to $854 million for the second quarter of 2003, an increase of 71 percent. Excluding the favorable impact of $31 million of foreign currency fluctuations, net sales were $1.429 billion, an increase of 67 percent. Net income for the quarter, excluding net special charges, increased 200 percent to $377 million, or $0.44 per share (diluted), as compared to $126 million, or $0.15 per share, excluding net special charges, in the second quarter of 2003. The results include the net impact of the previously announced recall of certain units of the Company's TAXUS(TM) Express(2)(TM) paclitaxel-eluting coronary stent systems and Express(2)(TM) coronary stent systems, in the amount of $57 million (after-tax), or approximately $0.06 per share. The recall impact consists of a $78 million (pre-tax) reduction to gross margin, including a sales reversal of $35 million and an inventory write-off of $43 million. The results also include a $0.01 dilution to earnings from the operating results of Advanced Bionics, which Boston Scientific acquired on June 1, 2004. Reported net income for the quarter, including net special charges of $64 million (after-tax), was $313 million, or $0.36 per share, as compared to reported net income of $114 million, or $0.13 per share, in the second quarter of 2003. The net special charges reflect purchased in-process research and development costs related to acquisitions. "We experienced impressive growth across all our businesses and regions, and we are reporting new records in both sales and earnings," said Jim Tobin, President and Chief Executive Officer of Boston Scientific. "We were especially pleased with the strong conversion rate to drug-eluting stents in the United States, which reached more than 80 percent by the end of the quarter. This resulted in a significant leveraging of our profitability, and we will be working hard to ensure it continues in the coming quarters." Boston Scientific officials will be discussing these and other issues with analysts on a conference call at 9:00 a.m. (ET) Monday, July 26. 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 charges. 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 June 30, 2004 June 30, 2003 In millions, except per share data Reported Adjustments Adjusted Reported Adjustments Adjusted - --------------------------------------------------------------------------------------------------------------------------------- Net sales $ 1,460 $ 1,460 $ 854 $ 854 Cost of products sold 363 363 235 235 ----------------------------- ----------------------------- Gross profit 1,097 1,097 619 619 Selling, general and administrative expenses 375 375 292 292 Amortization expense 26 26 21 21 Royalties 52 52 13 13 Research and development expenses 132 132 108 108 Purchased research and development 64 $ (64) 12 $ (12) ----------------------------- ----------------------------- 649 (64) 585 446 (12) 434 ----------------------------- ----------------------------- Operating income 448 64 512 173 12 185 Other income (expense): Interest expense (14) (14) (12) (12) Other, net (2) (2) ----------------------------- ----------------------------- Income before income taxes 432 64 496 161 12 173 Income taxes 119 119 47 47 ----------------------------- ----------------------------- Net income $ 313 $ 64 $ 377 $ 114 $ 12 $ 126 ============================= ============================= Net income per common share - assuming dilution $ 0.36 $ 0.44 $ 0.13 $ 0.15 ======= ======= ======= ======= Weighted average shares outstanding - assuming dilution 859.9 859.9 844.8 844.8 ======= ======= ======= =======
- -------------------------- BOSTON SCIENTIFIC CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
Six Months Ended Six Months Ended June 30, 2004 June 30, 2003 In millions, except per share data Reported Adjustments Adjusted Reported Adjustments Adjusted - --------------------------------------------------------------------------------------------------------------------------------- Net sales $ 2,542 $ 2,542 $ 1,661 $ 1,661 Cost of products sold 655 655 461 461 ----------------------------- ----------------------------- Gross profit 1,887 1,887 1,200 1,200 Selling, general and administrative expenses 723 723 563 563 Amortization expense 48 48 41 41 Royalties 74 74 25 25 Research and development expenses 266 266 211 211 Litigation-related charges 7 $ (7) Purchased research and development 64 $ (64) 25 (25) ----------------------------- ----------------------------- 1,175 (64) 1,111 872 (32) 840 ----------------------------- ----------------------------- Operating income 712 64 776 328 32 360 Other income (expense): Interest expense (25) (25) (23) (23) Other, net (4) (4) ----------------------------- ----------------------------- Income before income taxes 687 64 751 301 32 333 Income taxes 180 180 90 90 ----------------------------- ----------------------------- Net income $ 507 $ 64 $ 571 $ 211 $ 32 $ 243 ============================= ============================= Net income per common share - assuming dilution $ 0.59 $ 0.67 $ 0.25 $ 0.29 ============================= ============================= Weighted average shares outstanding - assuming dilution 857.6 857.6 844.4 844.4 ======= ======= ======= =======
BOSTON SCIENTIFIC CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
June 30, December 31, In millions 2004 2003 - ------------------------------------------------------------------------------------------------------------- Assets Current assets: Cash, cash equivalents and short-term investments $ 1,263 $ 752 Trade accounts receivable, net 814 542 Inventories 279 281 Other current assets 318 305 -------------------------------- Total current assets 2,674 1,880 Property, plant and equipment, net 814 744 Intangible assets, net 3,333 2,461 Investments 510 558 Other assets 101 56 -------------------------------- $ 7,432 $ 5,699 ================================ Liabilities and Stockholders' Equity Current liabilities: Borrowings due within one year $ 792 $ 553 Accounts payable and accrued expenses 696 675 Other current liabilities 98 165 -------------------------------- Total current liabilities 1,586 1,393 Long-term debt 1,762 1,172 Other long-term liabilities 380 272 Stockholders' equity 3,704 2,862 -------------------------------- $ 7,432 $ 5,699 ================================
BOSTON SCIENTIFIC CORPORATION WORLDWIDE SALES REGIONAL SUMMARY (Unaudited)
WORLDWIDE TOTAL ------------------------------------------------------------------------- Three Months Ended June 30, Change ------------------------------------------------------------------------- As Reported Constant In millions 2004 2003 Currency Basis Currency Basis ------------ ------------ ------------ ------------ DOMESTIC $ 944 $ 482 96% 96% EUROPE 236 165 43% 34% JAPAN 157 134 17% 8% INTER-CONTINENTAL 123 73 68% 63% ------------ ------------ ------------ ------------ INTERNATIONAL 516 372 39% 30% ------------ ------------ ------------ ------------ WORLDWIDE $ 1,460 $ 854 71% 67% ============ ============ ============ ============ WORLDWIDE TOTAL ------------------------------------------------------------------------- Six Months Ended June 30, Change ------------------------------------------------------------------------- As Reported Constant In millions 2004 2003 Currency Basis Currency Basis ------------ ------------ ------------ ------------ DOMESTIC $ 1,520 $ 961 58% 58% EUROPE 471 310 52% 37% JAPAN 312 260 20% 10% INTER-CONTINENTAL 239 130 84% 70% ------------ ------------ ------------ ------------ INTERNATIONAL 1,022 700 46% 33% ------------ ------------ ------------ ------------ WORLDWIDE $ 2,542 $ 1,661 53% 48% ============ ============ ============ ============
BOSTON SCIENTIFIC CORPORATION WORLDWIDE SALES DIVISIONAL SUMMARY (Unaudited)
WORLDWIDE TOTAL ------------------------------------------------------------------------- Three Months Ended June 30, Change ------------------------------------------------------------------------- As Reported Constant In millions 2004 2003 Currency Basis Currency Basis ------------ ------------ ------------ ------------ Cardiovascular $ 1,092 $ 532 105% 100% Electrophysiology 31 28 11% 12% Neurovascular 62 55 13% 8% ------------ ------------ ------------ ------------ CARDIOVASCULAR 1,185 615 93% 88% Oncology 45 41 10% 8% Endoscopy 159 144 10% 7% Urology 64 54 19% 14% ------------ ------------ ------------ ------------ ENDOSURGERY 268 239 12% 9% Neuromodulation 7 N/A N/A ------------ ------------ ------------ ------------ WORLDWIDE $ 1,460 $ 854 71% 67% ============ ============ ============ ============ WORLDWIDE TOTAL ------------------------------------------------------------------------- Six Months Ended June 30, Change ------------------------------------------------------------------------- As Reported Constant In millions 2004 2003 Currency Basis Currency Basis ------------ ------------ ------------ ------------ Cardiovascular $ 1,815 $ 1,034 76% 69% Electrophysiology 63 55 15% 11% Neurovascular 126 106 19% 13% ------------ ------------ ------------ ------------ CARDIOVASCULAR 2,004 1,195 68% 61% Oncology 91 79 15% 11% Endoscopy 317 282 12% 8% Urology 123 105 17% 13% ------------ ------------ ------------ ------------ ENDOSURGERY 531 466 14% 10% Neuromodulation 7 N/A N/A ------------ ------------ ------------ ------------ WORLDWIDE $ 2,542 $ 1,661 53% 48% ============ ============ ============ ============
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