EX-99.1 2 exh99-1_13687.htm PRESS RELEASE WWW.EXFILE.COM, INC. -- 13687 -- BOSTON SCIENTIFIC CORP. -- EXHIBIT 99.1 TO FORM 8-K

EXHIBIT 99.1


 

BOSTON SCIENTIFIC ANNOUNCES

SECOND QUARTER RESULTS

 

Natick, MA (July 19, 2005) -- Boston Scientific Corporation (NYSE: BSX) today announced financial results for its second quarter ended June 30, 2005.

 

Highlights:

 

•  

Net sales of $1.6 billion, an increase of 11 percent

 

•  

Worldwide coronary stent sales of $700 million, an increase of seven percent

 

•  

International sales of $624 million, an increase of 21 percent.

 

•  

Net income, excluding net special charges, of $404 million, or 25 percent of net sales

 

•  

Earnings per share, excluding net special charges, of $0.48 per share, an increase of nine

 

percent

 

 

Net sales for the second quarter were $1.617 billion as compared to $1.460 billion for the second quarter of 2004, an increase of 11 percent. Excluding the favorable impact of $26 million of foreign currency fluctuations, net sales increased nine percent. Worldwide coronary stent sales for the second quarter were $700 million as compared to $652 million for the second quarter of 2004, an increase of seven percent. Worldwide sales of our TAXUS® paclitaxel-eluting coronary stent systems were $663 million, an increase of 11 percent. U.S. sales of our TAXUS®Express2™paclitaxel-eluting coronary stent system were $467 million.

 

Net income for the quarter, excluding net special charges, increased seven percent to $404 million, or $0.48 per share, as compared to $377 million, or $0.44 per share, in the second quarter of 2004. Reported net income for the quarter, including net special charges of $199 million, was $205 million, or $0.24 per share. The net special charges for the quarter consisted principally of purchased in-process research and development costs related to the acquisitions of TriVascular, Inc.; CryoVascular Systems, Inc.; and Rubicon Medical Corporation.

 

“We are pleased with the second quarter results, which featured double digit growth on a global basis,” said Jim Tobin, President and Chief Executive Officer of Boston Scientific.  “Particularly impressive was our robust growth in international markets, where sales increased 21 percent.  Our TAXUS

 


 

 

-- more --

Boston Scientific Corporation/Page 2

July 19, 2005

 

paclitaxel-eluting stent system continues to be the product of choice in the drug-eluting stent market, and it maintained its leadership position during the quarter.  In addition, the Company expanded its pursuit of innovative technologies with the acquisition of companies such as TriVascular, CryoVascular and Rubicon Medical.”

 

Boston Scientific officials will be discussing these and other issues with analysts on a conference call at 11:00 a.m. (ET) Tuesday, July 19. 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 one year 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 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, 2005
  
 June 30, 2004
  
                           
                           
In millions, except per share data
  
Reported
  
Adjustments
  
Adjusted
  
Reported
  
Adjustments
  
Adjusted
  
                           
Net sales
  
$
1,617
        
$
1,617
  
$
1,460
        
$
1,460
  
Cost of products sold
  
357
             357    
363
   
 
   
363
 
Gross profit
    
1,260
         
1,260
   
1,097
         
1,097
 
                                       
Selling, general and administrative expenses
    
471
 
$
(17
)
  
454
   
375
         
375
 
Research and development expenses
    
166
         
166
   
132
         
132
 
Royalty expense
    
58
         
58
   
52
         
52
 
Amortization expense
    
36
         
36
   
26
         
26
 
Purchased research and development
    
203
   
(203
)
  
 
   
64
 
$
(64
)
  
 
 
     
934
   
(220
)
  
714
   
649
   
(64
)
  
585
 
Operating income
   
326
   
220
   
546
   
448
   
64
   
512
 
                                       
Other income (expense):
                                      
Interest expense
    
(14
)
        
(14
)
  
(14
)
        
(14
)
Other, net
    
(1
)
  
 
   
(1
)
  
(2
)
  
 
   
(2
)
                                       
Income before income taxes
    
311
   
220
   
531
   
432
   
64
   
496
 
Income taxes
    
106
   
21
   
127
   
119
   
 
   
119
 
                                       
Net income
 
$
205
  
$
199
  
$
404
  
$
313
  
$
64
  
$
377
  
                                       
                                       
Net income per common share - assuming dilution
  
$
0.24
        
$
0.48
  
$
0.36
        
$
0.44
  
                                       
Weighted average shares outstanding - assuming dilution
   
839.9
         
839.9
   
859.9
         
859.9
 
                                       




BOSTON SCIENTIFIC CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

 
   
 Six Months Ended
  
 Six Months Ended
  
   
 June 30, 2005
  
 June 30, 2004
  
                           
                           
In millions, except per share data
  
Reported
  
Adjustments
  
Adjusted
  
Reported
  
Adjustments
  
Adjusted
  
                           
Net sales
  
$
3,232
        
$
3,232
  
$
2,542
        
$
2,542
  
Cost of products sold
    
701
   
 
   
701
   
655
   
 
   
655
 
Gross profit
    
2,531
         
2,531
   
1,887
         
1,887
 
                                       
Selling, general and administrative expenses
    
902
 
$
(17
)
  
885
   
723
         
723
 
Research and development expenses
    
325
         
325
   
266
         
266
 
Royalty expense
    
122
         
122
   
74
         
74
 
Amortization expense
    
67
         
67
   
48
         
48
 
Purchased research and development
    
276
   
(276
)
        
64
 
$
(64
)
      
     
1,692
   
(293
)
  
1,399
   
1,175
   
(64
)
  
1,111
 
Operating income
   
839
   
293
   
1,132
   
712
   
64
   
776
 
                                       
Other income (expense):
                                      
Interest expense
    
(37
)
        
(37
)
  
(25
)
        
(25
)
Other, net
    
3
   
 
   
3
   
 
   
 
   
 
                                       
Income before income taxes
    
805
   
293
   
1,098
   
687
   
64
   
751
 
Income taxes
    
242
   
21
   
263
   
180
   
 
   
180
 
                                       
Net income
 
$
563
  
$
272
  
$
835
  
$
507
  
$
64
  
$
571
  
                                       
                                       
Net income per common share - assuming dilution
  
$
0.67
        
$
0.99
  
$
0.59
        
$
0.67
  
                                       
Weighted average shares outstanding - assuming dilution
    
845.1
         
845.1
   
857.6
         
857.6
 
                                       




BOSTON SCIENTIFIC CORPORATION
          
CONDENSED CONSOLIDATED BALANCE SHEETS
          
(Unaudited)
          
   
June 30,
  
December 31,
  
In millions
  
2005
  
2004
  
           
Assets
          
Current assets:
          
Cash, cash equivalents and short-term investments
  
$
883
  
$
1,640
  
Trade accounts receivable, net
    
976
   
900
 
Inventories
    
410
   
360
 
Other current assets
    
446
   
389
 
Total current assets
    
2,715
   
3,289
 
               
Property, plant and equipment, net
    
957
   
870
 
Intangible assets, net
    
3,568
   
3,340
 
Investments
    
618
   
529
 
Other assets
    
225
   
142
 
   
$
8,083
  
$
8,170
  
               
Liabilities and Stockholders’ Equity
              
Current liabilities:
              
Borrowings due within one year
  
$
538
  
$
1,228
  
Accounts payable and accrued expenses
    
958
   
1,010
 
Other current liabilities
    
260
   
367
 
Total current liabilities
    
1,756
   
2,605
 
               
Long-term debt
    
1,518
   
1,139
 
Other long-term liabilities
    
592
   
401
 
               
Stockholders’ equity
    
4,217
   
4,025
 
   
$
8,083
  
$
8,170
  



BOSTON SCIENTIFIC CORPORATION
          
WORLDWIDE SALES
                  
REGIONAL SUMMARY
              
(Unaudited)
                  
                   
                   
                   
                   
   
Three Months Ended June 30,
  
Change
  
           
As Reported
  
Constant
 
In millions
  
2005
  
2004
  
Currency Basis
  
Currency Basis
  
                   
DOMESTIC
  
$
993
  
$
944
    
5
%
  
5
%
                           
                           
                           
EUROPE
    
298
   
236
   
26
%
  
21
%
JAPAN
    
149
   
157
   
(5
%)
  
(7
%)
INTER-CONTINENTAL
    
177
   
123
   
44
%
  
35
%
INTERNATIONAL
    
624
   
516
   
21
%
  
16
%
                           
WORLDWIDE
  
$
1,617
  
$
1,460
    
11
%
  
9
%
                           
                           
                           
   
Six Months Ended June 30,
  
Change
  
 
                
As Reported
    
Constant
 
In millions
    
2005
    
2004
    
Currency Basis
    
Currency Basis
  
                           
DOMESTIC
  
$
1,998
  
$
1,520
    
31
%
  
31
%
                           
                           
                           
EUROPE
    
597
   
471
   
27
%
  
21
%
JAPAN
    
300
   
312
   
(4
%)
  
(6
%)
INTER-CONTINENTAL
    
337
   
239
   
41
%
  
33
%
INTERNATIONAL
    
1,234
   
1,022
   
21
%
  
16
%
                           
WORLDWIDE
  
$
3,232
  
$
2,542
    
27
%
  
25
%
                           




BOSTON SCIENTIFIC CORPORATION
          
WORLDWIDE SALES
                  
DIVISIONAL SUMMARY
              
(Unaudited)
                  
                   
                   
                   
                   
   
Three Months Ended June 30,
  
Change
  
           
As Reported
  
Constant
 
In millions
  
2005
  
2004
  
Currency Basis
  
Currency Basis
  
                   
Cardiovascular
  
$
1,168
  
$
1,092
    
7
%
  
5
%
Electrophysiology
    
33
   
31
   
6
%
  
5
%
Neurovascular
    
70
   
62
   
13
%
  
10
%
CARDIOVASCULAR
    
1,271
   
1,185
   
7
%
  
5
%
                           
Oncology
    
52
   
45
   
16
%
  
12
%
Endoscopy
    
180
   
159
   
13
%
  
12
%
Urology
    
81
   
64
   
27
%
  
27
%
ENDOSURGERY
    
313
   
268
   
17
%
  
15
%
                           
Neuromodulation
    
33
   
7
   
371
%
  
347
%
                           
WORLDWIDE
  
$
1,617
  
$
1,460
    
11
%
  
9
%
                           
                           
                           
   
Six Months Ended June 30,
  
Change
  
 
                
 As Reported
    
Constant
 
In millions
    
2005
    
2004
    
Currency Basis
    
Currency Basis
  
                           
Cardiovascular
  
$
2,360
  
$
1,815
    
30
%
  
28
%
Electrophysiology
    
65
   
63
   
3
%
  
2
%
Neurovascular
    
139
   
126
   
10
%
  
7
%
CARDIOVASCULAR
    
2,564
   
2,004
   
28
%
  
26
%
                           
Oncology
    
102
   
91
   
12
%
  
10
%
Endoscopy
    
347
   
317
   
9
%
  
8
%
Urology
    
153
   
123
   
24
%
  
23
%
ENDOSURGERY
    
602
   
531
   
13
%
  
12
%
                           
Neuromodulation
    
66
   
7
   
843
%
  
792
%
                           
WORLDWIDE
  
$
3,232
  
$
2,542
    
27
%
  
25
%