EXHIBIT 99.1
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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:
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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
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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
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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
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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)
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768 (91) 677 486 (4) 482
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Operating income 504 91 595 196 4 200
Other income (expense):
Interest expense (20) (20) (11) (11)
Other, net (25) (25) (1) (1)
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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
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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)
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2,758 (340) 2,418 1,818 (52) 1,766
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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)
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Income before income taxes 1,494 340 1,834 643 52 695
Income taxes 432 8 440 171 3 174
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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
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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
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$ 8,170 $ 5,699
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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
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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
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$ 8,170 $ 5,699
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BOSTON SCIENTIFIC CORPORATION
WORLDWIDE SALES
REGIONAL SUMMARY
(Unaudited)
WORLDWIDE TOTAL
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Three Months Ended
December 31, CHANGE
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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%
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INTERNATIONAL 597 457 31% 23%
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WORLDWIDE $ 1,600 $ 939 70% 67%
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WORLDWIDE TOTAL
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Year Ended
December 31, CHANGE
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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%
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INTERNATIONAL 2,122 1,552 37% 27%
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WORLDWIDE $ 5,624 $ 3,476 62% 57%
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BOSTON SCIENTIFIC CORPORATION
WORLDWIDE SALES
DIVISIONAL SUMMARY
(Unaudited)
WORLDWIDE TOTAL
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Three Months Ended
December 31, CHANGE
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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
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WORLDWIDE $ 1,600 $ 939 70% 67%
======== ======== ============== ==============
WORLDWIDE TOTAL
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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
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WORLDWIDE $ 5,624 $ 3,476 62% 57%
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