EXHIBIT 99.1
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NEWS [LOGO]
FOR IMMEDIATE RELEASE BOSTON
SCIENTIFIC
Boston Scientific Corporation
One Boston Scientific Place
Natick, MA 01760-1537
508.650.8000
www.bostonscientific.com
BOSTON SCIENTIFIC ANNOUNCES
RESULTS FOR FOURTH QUARTER
AND YEAR ENDED DECEMBER 31, 2003
Natick, MA (February 2, 2004) -- Boston Scientific Corporation (NYSE: BSX) today
announced financial results for the fourth quarter and for the year ended
December 31, 2003. The results reported today are consistent with the
preliminary results reported on January 13.
FOURTH QUARTER 2003
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Net sales for the fourth quarter of 2003 were $939 million as compared to $814
million for the fourth quarter of 2002, an increase of 15 percent. Excluding the
favorable impact of $57 million of foreign currency fluctuations, net sales were
$882 million.
Net income for the quarter, excluding net special charges, was $141 million, or
$0.17 per share (diluted), as compared to $130 million, excluding net special
charges, or $0.15 per share in the fourth quarter of 2002. Reported net income
for the quarter, including net special charges of $4 million, was $137 million,
or $0.16 per share, as compared to reported net income of $105 million, or $0.12
per share, in the fourth quarter of 2002. (The earnings per share figures
reported in this press release reflect the Company's two-for-one common stock
split that became effective in November of 2003.)
YEAR-END 2003
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Net sales for the year ended December 31, 2003 were $3.476 billion as compared
to $2.919 billion in 2002, an increase of 19 percent. Excluding the favorable
impact of $162 million of foreign currency fluctuations, net sales were $3.314
billion.
Net income for the year, excluding net special charges, increased 26 percent to
$521 million, or $0.62 per share, as compared to $413 million, excluding net
special charges, or $0.50 per share for the year ended December 31, 2002.
Reported net income for the year, including net special charges of $49 million,
was $472 million or $0.56 per share, as compared to reported net income of $373
million or $0.45 per share for the prior year.
"We further strengthened our market leadership position in drug-eluting stents
in Europe and other international markets during the fourth quarter," said Jim
Tobin, President and Chief Executive Officer of Boston Scientific. "Our
impressive performance in these markets gives us further confidence as we
prepare to launch our TAXUS(TM) paclitaxel-eluting stent system in the United
States later this quarter."
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Boston Scientific Corporation/Page 2
February 2, 2004
Boston Scientific officials will be discussing these and other issues with
analysts on a conference call at 9:00 a.m. (ET) on Monday, February 2. 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.
The Company plans to hold an analyst meeting in New York on February 23. The
Company will webcast the meeting to all interested parties through its website:
www.bostonscientific.com.
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 financial information that excludes
certain items. Non-GAAP financial information may exclude such items as charges
related to purchased in-process research and development and certain litigation.
Management uses this financial information to establish operational goals, and
believes that non-GAAP financial information may assist investors in analyzing
the underlying trends in the Company's business over time. Investors should
consider this non-GAAP financial information in addition to, not as a substitute
for, or as superior to, financial information 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, operational improvements, 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
December 31, 2003 December 31, 2002
In millions, except per share data Reported Adjustments Adjusted Reported Adjustments Adjusted
- -----------------------------------------------------------------------------------------------------------------------------------
Net sales $ 939 $ 939 $ 814 $ 814
Cost of products sold 257 257 227 227
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Gross profit 682 682 587 587
Selling, general and administrative expenses 313 313 266 266
Amortization expense 27 27 19 19
Royalties 14 14 10 10
Research and development expenses 128 128 95 95
Purchased research and development 4 $ (4) 40 $ (40)
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486 (4) 482 430 (40) 390
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Operating income 196 4 200 157 40 197
Other income (expense):
Interest expense (11) (11) (11) (11)
Other, net (1) (1) (3) (3)
---------------------------------- ----------------------------------
Income before income taxes 184 4 188 143 40 183
Income taxes 47 47 38 15 53
---------------------------------- ----------------------------------
Net income $ 137 $ 4 $ 141 $ 105 $ 25 $ 130
================================== ==================================
Net income per common share - assuming dilution $ 0.16 $ 0.17 $ 0.12 $ 0.15
======== ======== ======== ========
Weighted average shares outstanding - assuming dilution 847.4 847.4 842.0 842.0
======== ======== ======== ========
BOSTON SCIENTIFIC CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Year Ended Year Ended
December 31, 2003 December 31, 2002
In millions, except per share data Reported Adjustments Adjusted Reported Adjustments Adjusted
- -----------------------------------------------------------------------------------------------------------------------------------
Net sales $ 3,476 $ 3,476 $ 2,919 $ 2,919
Cost of products sold 961 961 870 $ (29) 841
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Gross profit 2,515 2,515 2,049 29 2,078
Selling, general and administrative expenses 1,171 1,171 1,002 1,002
Amortization expense 89 89 72 72
Royalties 54 54 36 36
Research and development expenses 452 452 343 343
Purchased research and development 37 $ (37) 85 (85)
Litigation-related charges (credits), net 15 (15) (99) 99
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1,818 (52) 1,766 1,439 14 1,453
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Operating income 697 52 749 610 15 625
Other income (expense):
Interest expense (46) (46) (43) (43)
Other, net (8) (8) (18) 18
---------------------------------- ----------------------------------
Income before income taxes 643 52 695 549 33 582
Income taxes 171 3 174 176 (7) 169
---------------------------------- ----------------------------------
Net income $ 472 $ 49 $ 521 $ 373 $ 40 $ 413
================================== ==================================
Net income per common share - assuming dilution $ 0.56 $ 0.62 $ 0.45 $ 0.50
======== ======== ======== ========
Weighted average shares outstanding - assuming dilution 845.4 845.4 830.0 830.0
======== ======== ======== ========
BOSTON SCIENTIFIC CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
December 31, December 31,
In millions 2003 2002
- ----------------------------------------------------------------------------
Assets
Current assets:
Cash and short term investments $ 752 $ 277
Trade accounts receivable, net 542 435
Inventories 281 243
Other current assets 305 253
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Total current assets 1,880 1,208
Property, plant and equipment, net 744 636
Intangibles, net 2,461 2,367
Investments 558 210
Other assets 56 29
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$ 5,699 $ 4,450
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Liabilities and Stockholders' Equity
Current liabilities:
Borrowings due within one year $ 553 $ 88
Accounts payable and accrued expenses 675 705
Other current liabilities 165 130
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Total current liabilities 1,393 923
Long-term debt 1,172 847
Other long-term liabilities 272 213
Stockholders' equity 2,862 2,467
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$ 5,699 $ 4,450
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BOSTON SCIENTIFIC CORPORATION
WORLDWIDE SALES
REGIONAL SUMMARY
(Unaudited)
WORLDWIDE TOTAL(1)
------------------------------------------------------------------------
Three Months Ended December 31, CHANGE
------------------------------------------------------------------------
At At
Actual Foreign Constant Foreign
In millions 2003 2002 Currency Basis Currency Basis
------------ ------------ ------------ ------------
DOMESTIC $ 482 $ 500 (4%) (4%)
EUROPE 196 124 58% 36%
JAPAN 145 132 10% (2%)
INTER-CONTINENTAL 116 58 100% 77%
------------ ------------ ------------ ------------
INTERNATIONAL 457 314 46% 28%
------------ ------------ ------------ ------------
WORLDWIDE $ 939 $ 814 15% 8%
============ ============ ============ ============
WORLDWIDE TOTAL(1)
------------------------------------------------------------------------
Year Ended December 31, CHANGE
------------------------------------------------------------------------
At At
Actual Foreign Constant Foreign
In millions 2003 2002 Currency Basis Currency Basis
------------ ------------ ------------ ------------
DOMESTIC $ 1,924 $ 1,756 10% 10%
EUROPE 672 456 47% 26%
JAPAN 541 494 10% 2%
INTER-CONTINENTAL 339 213 59% 48%
------------ ------------ ------------ ------------
INTERNATIONAL 1,552 1,163 33% 20%
------------ ------------ ------------ ------------
WORLDWIDE $ 3,476 $ 2,919 19% 14%
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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 December 31, CHANGE
------------------------------------------------------------------------
At At
Actual Foreign Constant Foreign
In millions 2003 2002 Currency Basis Currency Basis
------------ ------------ ------------ ------------
Cardiovascular $ 590 $ 514 15% 7%
Electrophysiology 31 27 15% 11%
Neurovascular 62 46 35% 23%
------------ ------------ ------------ ------------
CARDIOVASCULAR 683 587 16% 9%
Oncology 44 38 16% 10%
Endoscopy 151 135 12% 5%
Urology 61 54 13% 11%
------------ ------------ ------------ ------------
ENDOSURGERY 256 227 13% 7%
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WORLDWIDE $ 939 $ 814 15% 8%
============ ============ ============ ============
WORLDWIDE TOTAL(1)
------------------------------------------------------------------------
Year Ended December 31, CHANGE
------------------------------------------------------------------------
At At
Actual Foreign Constant Foreign
In millions 2003 2002 Currency Basis Currency Basis
------------ ------------ ------------ ------------
Cardiovascular $ 2,168 $ 1,797 21% 15%
Electrophysiology 113 101 12% 8%
Neurovascular 223 169 32% 23%
------------ ------------ ------------ ------------
CARDIOVASCULAR 2,504 2,067 21% 15%
Oncology 166 143 16% 12%
Endoscopy 580 513 13% 8%
Urology 226 196 15% 13%
------------ ------------ ------------ ------------
ENDOSURGERY 972 852 14% 10%
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WORLDWIDE $ 3,476 $ 2,919 19% 14%
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1 Certain prior year's amounts have been reclassified
to conform to the current year's presentation.