EX-99.1 2 exh99-1_13231.txt PRESS RELEASE DATED FEBRUARY 1, 2005 EXHIBIT 99.1 ------------ BOSTON SCIENTIFIC ANNOUNCES RESULTS FOR FOURTH QUARTER AND YEAR ENDED DECEMBER 31, 2004 Natick, MA (February 1, 2005) -- Boston Scientific Corporation (NYSE: BSX) today announced financial results for the fourth quarter and for the year ended December 31, 2004. HIGHLIGHTS: ----------- Q4: Net sales of $1.6 billion, an increase of 70 percent Worldwide coronary stent sales of $730 million, an increase of 374 percent Net income, excluding net special charges, of $419 million, an increase of 197 percent Earnings per share, excluding net special charges, of $0.49 per share 2004: Net sales of $5.624 billion, an increase of 62 percent Worldwide coronary stent sales of $2.351 billion, an increase of 345 percent Net income, excluding net special charges, of $1.394 billion, an increase of 168 percent Earnings per share, excluding net special charges, of $1.63 per share FOURTH QUARTER 2004 ------------------- Net sales for the fourth quarter of 2004 were $1.6 billion as compared to $939 million for the fourth quarter of 2003, an increase of 70 percent. Excluding the favorable impact of $35 million of foreign currency fluctuations, net sales increased 67 percent. Net income for the quarter, excluding net special charges, increased 197 percent to $419 million, or $0.49 per share, as compared to $141 million, excluding net special charges, or $0.17 per share in the fourth quarter of 2003. Reported net income for the quarter, including net special charges of $122 million, was $297 million, or $0.35 per share, as compared to reported net income of $137 million, or $0.16 per share, in the fourth quarter of 2003. The net special charges for the fourth quarter of 2004 consist primarily of a $60 million non-cash charge resulting from certain stock option modifications and a $61 million charge related to taxes on the approximately $1 billion that the Company plans to repatriate in 2005 under the American Jobs Creation Act of 2004. YEAR-END 2004 ------------- Net sales for the year ended December 31, 2004 were $5.624 billion as compared to $3.476 billion in 2003, an increase of 62 percent. Excluding the favorable impact of $155 million of foreign currency fluctuations, net sales increased 57 percent. Net income for the year, excluding net special charges, increased 168 percent to $1.394 billion, or $1.63 per share, as compared to $521 million, excluding net special charges, or $0.62 per share for the year ended December 31, 2003. Reported net income for the year, including net special charges of $332 million, was $1.062 billion, or $1.24 per share, as compared to reported net income of $472 million, or $0.56 per share, for the prior year. "I would like to congratulate the entire Boston Scientific team for a year of historic achievement," said Jim Tobin, President and Chief Executive Officer of Boston Scientific. "Our performance in 2004, fueled by the success of our TAXUS(R) Express(2)(TM) stent system, was nothing short of remarkable and speaks to a truly global effort." 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 617-834-8595 (Mobile) Investor Relations Boston Scientific Corporation Paul Donovan 508-650-8541 508-667-5165 (Mobile) Media Relations Boston Scientific Corporation BOSTON SCIENTIFIC CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
Three Months Ended Three Months Ended December 31, 2004 December 31, 2003 In millions, except per share data Reported Adjustments Adjusted Reported Adjustments Adjusted ---------------------------------------------------------------------------------------------------------------------------------- Net sales $ 1,600 $ 1,600 $ 939 $ 939 Cost of products sold 328 328 257 257 -------------------------------------- ------------------------------------- Gross profit 1,272 1,272 682 682 Selling, general and administrative expenses 515 $ (90) 425 313 313 Research and development expenses 158 158 128 128 Royalties 64 64 14 14 Amortization expense 30 30 27 27 Purchased research and development 1 (1) 4 $ (4) -------------------------------------- ------------------------------------- 768 (91) 677 486 (4) 482 -------------------------------------- ------------------------------------- Operating income 504 91 595 196 4 200 Other income (expense): Interest expense (20) (20) (11) (11) Other, net (25) (25) (1) (1) -------------------------------------- ------------------------------------- Income before income taxes 459 91 550 184 4 188 Income taxes 162 (31) 131 47 47 -------------------------------------- ------------------------------------- Net income $ 297 $ 122 $ 419 $ 137 $ 4 $ 141 ====================================== ===================================== Net income per common share - assuming dilution $ 0.35 $ 0.49 $ 0.16 $ 0.17 =========== =========== =========== =========== Weighted average shares outstanding - assuming dilution 854.6 854.6 847.4 847.4 =========== =========== =========== =========== BOSTON SCIENTIFIC CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Year Ended Year Ended December 31, 2004 December 31, 2003 In millions, except per share data Reported Adjustments Adjusted Reported Adjustments Adjusted ---------------------------------------------------------------------------------------------------------------------------------- Net sales $ 5,624 $ 5,624 $ 3,476 $ 3,476 Cost of products sold 1,292 1,292 961 961 -------------------------------------- ------------------------------------- Gross profit 4,332 4,332 2,515 2,515 Selling, general and administrative expenses 1,742 $(200) 1,542 1,171 1,171 Research and development expenses 569 569 452 452 Royalties 195 195 54 54 Amortization expense 112 112 89 89 Litigation-related charges 75 (75) 15 $ (15) Purchased research and development 65 (65) 37 (37) -------------------------------------- ------------------------------------- 2,758 (340) 2,418 1,818 (52) 1,766 -------------------------------------- ------------------------------------- Operating income 1,574 340 1,914 697 52 749 Other income (expense): Interest expense (64) (64) (46) (46) Other, net (16) (16) (8) (8) -------------------------------------- ------------------------------------- Income before income taxes 1,494 340 1,834 643 52 695 Income taxes 432 8 440 171 3 174 ------------------------------------- ------------------------------------- Net income $ 1,062 $ 332 $ 1,394 $ 472 $ 49 $ 521 ====================================== ===================================== Net income per common share - assuming dilution $ 1.24 $ 1.63 $ 0.56 $ 0.62 =========== =========== =========== =========== Weighted average shares outstanding - assuming dilution 857.7 857.7 845.4 845.4 =========== =========== =========== ===========
BOSTON SCIENTIFIC CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) December 31, December 31, In millions 2004 2003 ------------------------------------------------------------------------------- Assets Current assets: Cash and short term investments $ 1,640 $ 752 Trade accounts receivable, net 900 542 Inventories 360 281 Other current assets 389 305 ---------- ---------- Total current assets 3,289 1,880 Property, plant and equipment, net 870 744 Intangible assets, net 3,340 2,461 Investments 529 558 Other assets 142 56 ---------- ---------- $ 8,170 $ 5,699 ========== ========== Liabilities and Stockholders' Equity Current liabilities: Borrowings due within one year $ 1,228 $ 553 Accounts payable and accrued expenses 1,010 675 Other current liabilities 367 165 ---------- ---------- Total current liabilities 2,605 1,393 Long-term debt 1,139 1,172 Other long-term liabilities 401 272 Stockholders' equity 4,025 2,862 ---------- ---------- $ 8,170 $ 5,699 ========== ========== BOSTON SCIENTIFIC CORPORATION WORLDWIDE SALES REGIONAL SUMMARY (Unaudited) WORLDWIDE TOTAL ------------------------------------------------------- Three Months Ended December 31, CHANGE ------------------------------------------------------- As Reported Constant In millions 2004 2003 Currency Basis Currency Basis ---------- ---------- -------------- -------------- DOMESTIC $ 1,003 $ 482 108% 108% EUROPE 287 196 46% 34% JAPAN 157 145 8% 6% INTER-CONTINENTAL 153 116 32% 26% ---------- ---------- -------------- -------------- INTERNATIONAL 597 457 31% 23% ---------- ---------- -------------- -------------- WORLDWIDE $ 1,600 $ 939 70% 67% ========== ========== ============== ============== WORLDWIDE TOTAL ------------------------------------------------------- Year Ended December 31, CHANGE ------------------------------------------------------- As Reported Constant In millions 2004 2003 Currency Basis Currency Basis ---------- ---------- -------------- -------------- DOMESTIC $ 3,502 $ 1,924 82% 82% EUROPE 994 672 48% 35% JAPAN 613 541 13% 6% INTER-CONTINENTAL 515 339 52% 44% ---------- ---------- -------------- -------------- INTERNATIONAL 2,122 1,552 37% 27% ---------- ---------- -------------- -------------- WORLDWIDE $ 5,624 $ 3,476 62% 57% ========== ========== ============== ============== BOSTON SCIENTIFIC CORPORATION WORLDWIDE SALES DIVISIONAL SUMMARY (Unaudited) WORLDWIDE TOTAL ------------------------------------------------------- Three Months Ended December 31, CHANGE ------------------------------------------------------- As Reported Constant In millions 2004 2003 Currency Basis Currency Basis -------- -------- -------------- -------------- Cardiovascular $ 1,185 $ 590 101% 98% Electrophysiology 35 31 13% 11% Neurovascular 67 62 8% 5% -------- -------- -------------- -------------- CARDIOVASCULAR 1,287 683 88% 85% Oncology 49 44 11% 8% Endoscopy 167 151 11% 8% Urology 72 61 18% 14% -------- -------- -------------- -------------- ENDOSURGERY 288 256 13% 9% Neuromodulation 25 -------- -------- -------------- -------------- WORLDWIDE $ 1,600 $ 939 70% 67% ======== ======== ============== ============== WORLDWIDE TOTAL ------------------------------------------------------- Year Ended December 31, CHANGE ------------------------------------------------------- As Reported Constant In millions 2004 2003 Currency Basis Currency Basis -------- -------- -------------- -------------- Cardiovascular $ 4,107 $ 2,168 89% 84% Electrophysiology 130 113 15% 12% Neurovascular 253 223 13% 9% -------- -------- -------------- -------------- CARDIOVASCULAR 4,490 2,504 79% 74% Oncology 186 166 12% 8% Endoscopy 641 580 11% 7% Urology 261 226 15% 13% -------- -------- -------------- -------------- ENDOSURGERY 1,088 972 12% 9% Neuromodulation 46 -------- -------- -------------- -------------- WORLDWIDE $ 5,624 $ 3,476 62% 57% ======== ======== ============== ==============