Full Press Release Details
MARLBOROUGH, Mass. , Feb. 2, 2022 /PRNewswire/ -- Boston Scientific Corporation (NYSE: BSX ) generated net sales of $3.127 billion during the fourth quarter of 2021, growing 15.4 percent on a reported basis, 16.9 percent on an operational 1 basis and 15.1 percent on an organic 2 basis, all compared to the prior year period. The company reported GAAP net income available to common stockholders of $80 million or $0.06 per share (EPS), compared to $196 million or $0.14 per share a year ago and achieved adjusted EPS of $0.45 for the period, compared to $0.23 a year ago.
For the full year 2021, the company generated net sales of $11.888 billion , growing 19.9 percent on a reported basis, 18.7 percent on an operational basis and 18.9 percent on an organic basis, all compared to the prior year period. The company reported GAAP net income (loss) available to common stockholders of $985 million or $0.69 per share, compared to $(115) million or $(0.08) per share a year ago, and delivered full year adjusted EPS of $1.63 , compared to $0.96 a year ago.
"I'm very pleased with our strong fourth quarter and full year results, thanks to our team's commitment and resilience in a challenging environment," said Mike Mahoney , chairman and chief executive officer, Boston Scientific. "I'm excited about the capabilities we've built, and I remain confident in our ability to execute in 2022 and against our long-range plans as we continue delivering meaningful innovations for patients around the world."
Fourth quarter financial results and recent developments:
| 1. Operational net sales growth excludes the impact of foreign currency fluctuations. |
| 2 . Organic net sales growth excludes the impact of foreign currency fluctuations and net sales attributable to acquisitions and divestitures for which there are less than a full period of comparable net sales. |
| 3. We define Emerging Markets as the 20 countries that we believe have strong growth potential based on their economic conditions, healthcare sectors and our global capabilities. Periodically, we assess our list of Emerging Markets countries, and effective January 1, 2021, modified our list to include the following countries: Brazil, Chile, China, Colombia, Czech Republic, India, Indonesia, Malaysia, Mexico, Philippines, Poland, Russia, Saudi Arabia, Slovakia, South Africa, South Korea, Taiwan, Thailand, Turkey and Vietnam. We have revised prior period amounts to conform to the current year's presentation which had an immaterial impact on previously reported Emerging Markets net sales. |
| 4. We have three historical reportable segments comprised of Medical Surgical (MedSurg), Rhythm and Neuro, and Cardiovascular, which represent an aggregation of our operating segments that generate revenues from the sale of medical devices (Medical Devices). |
| 5. On March 1, 2021, we completed the sale of the Specialty Pharmaceuticals business. Our consolidated net sales include Specialty Pharmaceuticals up to the date of the closing of the transaction. Specialty Pharmaceuticals net sales were substantially U.S. based and presented as a stand-alone operating segment alongside our Medical Device reportable segments. |
| Q4 Net Sales by Business and Region: | |||||||||||||
| Change | |||||||||||||
| Three Months Ended December 31, | Reported Basis | Less: Impact of Foreign Currency Fluctuations | Operational Basis | Less: Impact of Recent Acquisitions / Divestitures | Organic Basis | ||||||||
| (in millions) | 2021 | 2020 | |||||||||||
| Endoscopy | $558 | $515 | 8.3% | (1.5)% | 9.8% | —% | 9.8% | ||||||
| Urology and Pelvic Health | 441 | 376 | 17.2% | (0.8)% | 18.0% | 9.2% | 8.7% | ||||||
| MedSurg | 999 | 892 | 12.1% | (1.2)% | 13.3% | 3.9% | 9.4% | ||||||
| Cardiac Rhythm Management | 514 | 451 | 14.0% | (1.5)% | 15.5% | 11.0% | 4.5% | ||||||
| Electrophysiology | 100 | 85 | 18.1% | (2.8)% | 20.9% | 5.3% | 15.6% | ||||||
| Neuromodulation | 244 | 232 | 5.2% | (0.6)% | 5.8% | —% | 5.8% | ||||||
| Rhythm and Neuro | 858 | 767 | 11.8% | (1.4)% | 13.2% | 7.0% | 6.1% | ||||||
| Interventional Cardiology | 808 | 585 | 38.2% | (1.9)% | 40.1% | —% | 40.1% | ||||||
| Peripheral Interventions | 462 | 429 | 7.6% | (1.4)% | 9.0% | —% | 9.0% | ||||||
| Cardiovascular | 1,270 | 1,014 | 25.3% | (1.7)% | 27.0% | —% | 27.0% | ||||||
| Medical Devices 4 | 3,127 | 2,673 | 17.0% | (1.4)% | 18.4% | 3.3% | 15.1% | ||||||
| Specialty Pharmaceuticals 5 | — | 36 | (100.0)% | —% | (100.0)% | (100.0)% | —% | ||||||
| Net Sales | $3,127 | $2,708 | 15.4% | (1.4)% | 16.9% | 1.8% | 15.1% |
| Change | |||||||||
| Three Months Ended December 31, | Reported Basis | Less: Impact of Foreign Currency Fluctuations | Operational Basis | ||||||
| (in millions) | 2021 | 2020 | |||||||
| U.S. | $1,798 | $1,502 | 19.7% | —% | 19.7% | ||||
| EMEA | 662 | 590 | 12.3% | (3.7)% | 16.0% | ||||
| APAC | 559 | 489 | 14.3% | (3.1)% | 17.4% | ||||
| Latin America and Canada | 107 | 91 | 17.9% | (0.9)% | 18.8% | ||||
| Medical Devices 4 | 3,127 | 2,673 | 17.0% | (1.4)% | 18.4% | ||||
| Specialty Pharmaceuticals 5 | — | 36 | (100.0)% | —% | (100.0)% | ||||
| Net Sales | $3,127 | $2,708 | 15.4% | (1.4)% | 16.9% | ||||
| Emerging Markets 3 | $398 | $306 | 30.2% | (1.4)% | 31.6% | ||||
| Amounts may not add due to rounding. Growth rates are based on actual, non-rounded amounts and may not recalculate precisely. | |||||||||
| Net sales growth rates that exclude the impact of foreign currency fluctuations and/or the impact of acquisitions / divestitures are not prepared in accordance with U.S. GAAP. |
| Full Year Net Sales by Business and Region: | |||||||||||||
| Change | |||||||||||||
| Year Ended December 31, | Reported Basis | Less: Impact of Foreign Currency Fluctuations | Operational Basis | Less: Impact of Recent Acquisitions / Divestitures | Organic Basis | ||||||||
| (in millions) | 2021 | 2020 | |||||||||||
| Endoscopy | $2,141 | $1,780 | 20.3% | 1.3% | 18.9% | —% | 18.9% | ||||||
| Urology and Pelvic Health | 1,583 | 1,286 | 23.1% | 1.0% | 22.1% | 2.8% | 19.2% | ||||||
| MedSurg | 3,724 | 3,066 | 21.4% | 1.2% | 20.2% | 1.2% | 19.0% | ||||||
| Cardiac Rhythm Management | 2,019 | 1,704 | 18.5% | 1.4% | 17.1% | 9.5% | 7.7% | ||||||
| Electrophysiology | 365 | 287 | 27.4% | 1.6% | 25.8% | 2.3% | 23.5% | ||||||
| Neuromodulation | 909 | 761 | 19.5% | 0.9% | 18.6% | —% | 18.6% | ||||||
| Rhythm and Neuro | 3,293 | 2,752 | 19.7% | 1.3% | 18.4% | 6.1% | 12.3% | ||||||
| Interventional Cardiology | 3,038 | 2,299 | 32.2% | 1.5% | 30.7% | —% | 30.7% | ||||||
| Peripheral Interventions | 1,820 | 1,577 | 15.4% | 1.2% | 14.2% | —% | 14.2% | ||||||
| Cardiovascular | 4,858 | 3,876 | 25.3% | 1.4% | 23.9% | —% | 23.9% | ||||||
| Medical Devices 4 | 11,875 | 9,694 | 22.5% | 1.3% | 21.2% | 2.1% | 19.1% | ||||||
| Specialty Pharmaceuticals 5 | 13 | 219 | (93.9)% | 0.1% | (94.0)% | (49.6)% | (44.4)% | ||||||
| Net Sales | $11,888 | $9,913 | 19.9% | 1.3% | 18.7% | (0.3)% | 18.9% |
| Change | |||||||||
| Year Ended December 31, | Reported Basis | Less: Impact of Foreign Currency Fluctuations | Operational Basis | ||||||
| (in millions) | 2021 | 2020 | |||||||
| U.S. | $6,901 | $5,508 | 25.3% | —% | 25.3% | ||||
| EMEA | 2,518 | 2,097 | 20.0% | 3.7% | 16.4% | ||||
| APAC | 2,070 | 1,781 | 16.2% | 2.3% | 13.9% | ||||
| Latin America and Canada | 386 | 307 | 25.6% | 2.3% | 23.3% | ||||
| Medical Devices 4 | 11,875 | 9,694 | 22.5% | 1.3% | 21.2% | ||||
| Specialty Pharmaceuticals 5 | 13 | 219 | (93.9)% | 0.1% | (94.0)% | ||||
| Net Sales | $11,888 | $9,913 | 19.9% | 1.3% | 18.7% | ||||
| Emerging Markets 3 | $1,429 | $1,138 | 25.5% | 3.2% | 22.3% | ||||
| Amounts may not add due to rounding. Growth rates are based on actual, non-rounded amounts and may not recalculate precisely. | |||||||||
| Net sales growth rates that exclude the impact of foreign currency fluctuations and/or the impact of acquisitions / divestitures are not prepared in accordance with U.S. GAAP. |
Guidance for Full Year and Q1 2022
The company estimates net sales growth for the full year 2022, versus the prior year period, to be in a range of approximately 6 to 8 percent on both a reported basis and organic basis. Full year organic net sales guidance excludes the impact of foreign currency fluctuations and net sales attributable to acquisitions and divestitures for which there are less than a full period of comparable net sales. The company estimates EPS on a GAAP basis in a range of $0.94 to $1.04 and adjusted EPS, excluding certain charges (credits) of $1.73 to $1.79 .
The company estimates net sales growth for the first quarter of 2022, versus the prior year period, to be in a range of approximately 5 to 8 percent on both a reported and organic basis. First quarter organic guidance excludes the impact of foreign currency fluctuations and net sales attributable to acquisitions and divestitures for which there are less than a full period of comparable net sales. The company estimates EPS on a GAAP basis in a range of $0.16 to $0.20 and adjusted EPS, excluding certain charges (credits) of $0.38 to $0.40 .
Conference Call Information
Boston Scientific management will be discussing these results with analysts on a conference call today at 8:00 a.m. ET . The company will webcast the call to 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 approximately one year on the Boston Scientific website.
About Boston Scientific Boston Scientific transforms lives through innovative medical solutions that improve the health of patients around the world. As a global medical technology leader for more than 40 years, we advance science for life by providing a broad range of high performance solutions that address unmet patient needs and reduce the cost of healthcare. For more information, visit www.bostonscientific.com and connect on Twitter and Facebook .
Cautionary Statement Regarding Forward-Looking Statements This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements may be identified by words like "anticipate," "expect," "project," "believe," "plan," "estimate," "intend," and similar words. These forward-looking statements are based on our beliefs, assumptions and estimates using information available to us at the time and are not intended to be guarantees of future events or performance. These forward-looking statements include, among other things, statements regarding our expected net sales; reported, operational and organic revenue growth rates; reported and adjusted EPS for the first quarter and full year 2022; our financial performance; our business plans and product performance; and the impact of the COVID-19 pandemic on the company's results of operations. If our underlying assumptions turn out to be incorrect, or if certain risks or uncertainties materialize, actual results could vary materially from the expectations and projections expressed or implied by our forward-looking statements. These factors, in some cases, have affected and in the future (together with other factors) could affect our ability to implement our business strategy and may cause actual results to differ materially from those contemplated by the statements expressed in this press release. As a result, readers are cautioned not to place undue reliance on any of our forward-looking statements.
Note : Amounts reported in millions within this press release are computed based on the amounts in thousands. As a result, the sum of the components reported in millions may not equal the total amount reported in millions due to rounding. Certain columns and rows within tables may not add due to the use of rounded numbers. Percentages presented are calculated from the underlying numbers in dollars.
Use of Non-GAAP Financial Information A reconciliation of the company's non-GAAP financial measures to the corresponding GAAP measures, and an explanation of the company's use of these non-GAAP financial measures, is included in the exhibits attached to this press release.
| CONTACT: | ||||
| Media: | Kate Haranis | Investors: | Lauren Tengler | |
| 508-683-6585 (office) | 508-683-4479 (office) | |||
| Media Relations | Investor Relations | |||
| Boston Scientific Corporation | Boston Scientific Corporation | |||
| [email protected] | [email protected] |
| BOSTON SCIENTIFIC CORPORATION | |||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | |||||
| (Unaudited) | |||||
| Three Months Ended December 31, | Year Ended December 31, | ||||
| in millions, except per share data | 2021 | 2020 | 2021 | 2020 | |
| Net sales | $ 3,127 | $ 2,708 | $ 11,888 | $ 9,913 | |
| Cost of products sold | 971 | 1,000 | 3,711 | 3,465 | |
| Gross profit | 2,155 | 1,708 | 8,177 | 6,448 | |
| Operating expenses: | |||||
| Selling, general and administrative expenses | 1,153 | 1,027 | 4,359 | 3,787 | |
| Research and development expenses | 320 | 286 | 1,204 | 1,143 | |
| Royalty expense | 11 | 14 | 49 | 45 | |
| Amortization expense | 192 | 194 | 741 | 789 | |
| Goodwill impairment charges | — | 73 | — | 73 | |
| Intangible asset impairment charges | 197 | 8 | 370 | 460 | |
| Contingent consideration expense (benefit) | (18) | 2 | (136) | (100) | |
| Restructuring charges (credits) | 23 | 36 | 40 | 52 | |
| Litigation-related charges (credits) | 128 | 18 | 430 | 278 | |
| Gains on disposal of businesses and assets | (30) | — | (78) | — | |
| 1,975 | 1,658 | 6,978 | 6,528 | ||
| Operating income (loss) | 180 | 50 | 1,199 | (80) | |
| Other income (expense): | |||||
| Interest expense | (87) | (96) | (341) | (361) | |
| Other, net | 26 | 352 | 218 | 362 | |
| Income (loss) before income taxes | 120 | 306 | 1,076 | (79) | |
| Income tax expense (benefit) | 26 | 96 | 36 | 2 | |
| Net income (loss) | $ 94 | $ 210 | $ 1,041 | $ (82) | |
| Preferred stock dividends | (14) | (14) | (55) | (33) | |
| Net income (loss) available to common stockholders | $ 80 | $ 196 | $ 985 | $ (115) | |
| Net income (loss) per common share - basic | $ 0.06 | $ 0.14 | $ 0.69 | $ (0.08) | |
| Net income (loss) per common share - assuming dilution | $ 0.06 | $ 0.14 | $ 0.69 | $ (0.08) | |
| Weighted-average shares outstanding | |||||
| Basic | 1,425.2 | 1,427.7 | 1,422.3 | 1,416.7 | |
| Assuming dilution | 1,436.2 | 1,440.6 | 1,433.8 | 1,416.7 |
| BOSTON SCIENTIFIC CORPORATION | |||||||||
| NON-GAAP NET INCOME AND NET INCOME PER SHARE RECONCILIATIONS | |||||||||
| (Unaudited) | |||||||||
| Three Months Ended December 31, 2021 | |||||||||
| in millions, except per share data | Gross Profit | Operating Expenses | Operating Income (Loss) | Other Income (Expense) | Income (Loss) Before Income Taxes | Net Income (Loss) | Preferred Stock Dividends | Net Income (Loss) Available to Common Stockholders | Impact per Share (1) |
| Reported | $ 2,155 | $ 1,975 | $ 180 | $ (60) | $ 120 | $ 94 | $ (14) | $ 80 | $ 0.06 |
| Non-GAAP adjustments: | |||||||||
| Amortization expense | — | (192) | 192 | — | 192 | 180 | — | 180 | 0.13 |
| Goodwill and other intangible asset impairment charges | — | (197) | 197 | — | 197 | 171 | — | 171 | 0.12 |
| Acquisition / divestitures-related net charges (credits) | 32 | (19) | 50 | (57) | (7) | (4) | — | (4) | (0.00) |
| Restructuring and restructuring-related net charges (credits) | 20 | (39) | 58 | — | 58 | 51 | — | 51 | 0.04 |
| Litigation-related net charges (credits) | — | (128) | 128 | — | 128 | 98 | — | 98 | 0.07 |
| Investment impairment net charges (credits) | — | — | — | 2 | 2 | 2 | — | 2 | 0.00 |
| EU MDR implementation costs | 9 | (5) | 14 | — | 14 | 13 | — | 13 | 0.01 |
| Deferred tax expenses (benefits) | — | — | — | — | — | 46 | — | 46 | 0.03 |
| Discrete tax items | — | — | — | — | — | 16 | — | 16 | 0.01 |
| Adjusted | $ 2,216 | $ 1,396 | $ 819 | $ (115) | $ 704 | $ 667 | $ (14) | $ 653 | $ 0.45 |
| (1) For the three months ended December 31, 2021, the effect of assuming the conversion of Mandatory Convertible Preferred Stock (MCPS) into shares of common stock was anti-dilutive, and therefore excluded from the calculation of EPS. Accordingly, GAAP net income and adjusted net income were reduced by cumulative Preferred stock dividends, as presented in our unaudited consolidated statements of operations, for purposes of calculating net income available to common stockholders. | |||||||||
| Three Months Ended December 31, 2020 | |||||||||
| in millions, except per share data | Gross Profit | Operating Expenses | Operating Income (Loss) | Other Income (Expense) | Income (Loss) Before Income Taxes | Net Income (Loss) | Preferred Stock Dividends | Net Income (Loss) Available to Common Stockholders | Impact per Share (1) |
| Reported | $ 1,708 | $ 1,658 | $ 50 | $ 256 | $ 306 | $ 210 | $ (14) | $ 196 | $ 0.14 |
| Non-GAAP adjustments: | |||||||||
| Amortization expense | — | (194) | 194 | — | 194 | 169 | — | 169 | 0.12 |
| Intangible asset impairment charges | — | (81) | 81 | — | 81 | 81 | — | 81 | 0.06 |
| Acquisition / divestiture-related net charges (credits) | 25 | (24) | 48 | — | 48 | 16 | — | 16 | 0.01 |
| Restructuring and restructuring-related net charges (credits) | 17 | (77) | 94 | — | 94 | 80 | — | 80 | 0.06 |
| Litigation-related net charges (credits) | — | (18) | 18 | — | 18 | 6 | — | 6 | 0.00 |
| Investment impairment net charges (credits) | — | — | — | (363) | (363) | (280) | — | (280) | (0.19) |
| EU MDR implementation costs | 7 | (2) | 9 | — | 9 | 8 | — | 8 | 0.01 |
| Deferred tax expenses (benefits) | — | — | — | — | — | 14 | — | 14 | 0.01 |
| Discrete tax items | — | — | — | — | — | 48 | — | 48 | 0.03 |
| Adjusted | $ 1,757 | $ 1,261 | $ 495 | $ (108) | $ 388 | $ 351 | $ (14) | $ 337 | $ 0.23 |
| (1) For the three months ended December 31, 2020 the effect of assuming the conversion of Mandatory Convertible Preferred Stock (MCPS) into shares of common stock was anti-dilutive, and therefore excluded from the calculation of EPS. Accordingly, GAAP net income and adjusted net income were reduced by cumulative Preferred stock dividends, as presented in our unaudited consolidated statements of operations, for purposes of calculating net income available to common stockholders. | |||||||||
| An explanation of the company's use of these non-GAAP financial measures is provided at the end of this document. |
| BOSTON SCIENTIFIC CORPORATION | |||||||||
| NON-GAAP NET INCOME AND NET INCOME PER SHARE RECONCILIATIONS | |||||||||
| (Unaudited) | |||||||||
| Year Ended December 31, 2021 | |||||||||
| in millions, except per share data | Gross Profit | Operating Expenses | Operating Income (Loss) | Other Income (Expense) | Income (Loss) Before Income Taxes | Net Income (Loss) | Preferred Stock Dividends | Net Income (Loss) Available to Common Stockholders | Impact per Share (1) |
| Reported | $ 8,177 | $ 6,978 | $ 1,199 | $ (123) | $ 1,076 | $ 1,041 | $ (55) | $ 985 | $ 0.69 |
| Non-GAAP adjustments: | |||||||||
| Amortization expense | — | (741) | 741 | — | 741 | 676 | — | 676 | 0.47 |
| Goodwill and other intangible asset impairment charges | — | (370) | 370 | — | 370 | 318 | — | 318 | 0.22 |
| Acquisition / divestitures-related net charges (credits) | 65 | 34 | 31 | (482) | (450) | (453) | — | (453) | (0.32) |
| Restructuring and restructuring-related net charges (credits) | 79 | (112) | 191 | — | 191 | 169 | — | 169 | 0.12 |
| Litigation-related net charges (credits) | — | (430) | 430 | — | 430 | 331 | — | 331 | 0.23 |
| Investment impairment net charges (credits) | — | — | — | 181 | 181 | 137 | — | 137 | 0.10 |
| EU MDR implementation costs | 32 | (17) | 49 | — | 49 | 45 | — | 45 | 0.03 |
| Deferred tax expenses (benefits) | — | — | — | — | — | 132 | — | 132 | 0.09 |
| Discrete tax items | — | — | — | — | — | (5) | — | (5) | (0.00) |
| Adjusted | $ 8,353 | $ 5,343 | $ 3,010 | $ (423) | $ 2,587 | $ 2,391 | $ (55) | $ 2,336 | $ 1.63 |
| (1) For the year ended December 31, 2021, the effect of assuming the conversion of Mandatory Convertible Preferred Stock (MCPS) into shares of common stock was anti-dilutive, and therefore excluded from the calculation of EPS. Accordingly, GAAP net income and adjusted net income were reduced by cumulative Preferred stock dividends, as presented in our unaudited consolidated statements of operations, for purposes of calculating net income available to common stockholders. | |||||||||
| Year Ended December 31, 2020 | |||||||||
| in millions, except per share data | Gross Profit | Operating Expenses | Operating Income (Loss) | Other Income (Expense) | Income (Loss) Before Income Taxes | Net Income (Loss) | Preferred Stock Dividends | Net Income (Loss) Available to Common Stockholders | Impact per Share (1) |
| Reported | $ 6,448 | $ 6,528 | $ (80) | $ 1 | $ (79) | $ (82) | $ (33) | $ (115) | $ (0.08) |
| Non-GAAP adjustments: | |||||||||
| Amortization expense | — | (789) | 789 | — | 789 | 701 | — | 701 | 0.49 |
| Intangible asset impairment charges | — | (533) | 533 | — | 533 | 465 | — | 465 | 0.32 |
| Acquisition / divestiture-related net charges (credits) | 122 | (75) | 198 | (1) | 196 | 115 | — | 115 | 0.08 |
| Restructuring and restructuring-related net charges (credits) | 64 | (107) | 171 | — | 171 | 146 | — | 146 | 0.10 |
| Litigation-related net charges (credits) | — | (278) | 278 | — | 278 | 261 | — | 261 | 0.18 |
| Investment impairment net charges (credits) | — | — | — | (429) | (429) | (331) | — | (331) | (0.23) |
| EU MDR implementation costs | 21 | (7) | 29 | — | 29 | 25 | — | 25 | 0.02 |
| Deferred tax expenses (benefits) | — | — | — | — | — | 41 | — | 41 | 0.03 |
| Discrete tax items | — | — | — | — | — | 69 | — | 69 | 0.05 |
| Adjusted | $ 6,655 | $ 4,738 | $ 1,917 | $ (429) | $ 1,488 | $ 1,411 | $ (33) | $ 1,378 | $ 0.96 |
| (1) For the year ended December 31, 2020, the effect of assuming the conversion of Mandatory Convertible Preferred Stock (MCPS) into shares of common stock was anti-dilutive, and therefore excluded from the calculation of EPS. Accordingly, GAAP net loss and adjusted net income were reduced by cumulative Preferred stock dividends, as presented in our unaudited consolidated statements of operations, for purposes of calculating EPS. We have assumed dilution of 13.8 million common stock equivalents related to employee stock options for all or a portion of the non-GAAP adjustments, which were anti-dilutive for GAAP purposes due to our net loss position. | |||||||||
| An explanation of the company's use of these non-GAAP financial measures is provided at the end of this document. |
| BOSTON SCIENTIFIC CORPORATION | |||||
| Q1 and FY 2022 GUIDANCE RECONCILIATIONS | |||||
| (Unaudited) | |||||
| Net Sales | |||||
| Q1 2022 Estimate | Full Year 2022 Estimate | ||||
| (Low) | (High) | (Low) | (High) | ||
| Reported growth | 5% | 8% | 6% | 8% | |
| Less: Impact of foreign currency fluctuations | (2)% | (2)% | (1)% | (1)% | |
| Operational growth | 7% | 10% | 7% | 9% | |
| Less: Impact of certain acquisitions / divestitures | 2% | 2% | 1% | 1% | |
| Organic growth | 5% | 8% | 6% | 8% |
| Earnings per Share | |||||
| Q1 2022 Estimate | Full Year 2022 Estimate | ||||
| (Low) | (High) | (Low) | (High) | ||
| GAAP results | $ 0.16 | $ 0.20 | $ 0.94 | $ 1.04 | |
| Amortization expense | 0.11 | 0.11 | 0.45 | 0.45 | |
| Acquisition / divestiture-related net charges (credits) | 0.04 | 0.03 | 0.10 | 0.08 | |
| Restructuring and restructuring-related net charges (credits) | 0.03 | 0.02 | 0.08 | 0.07 | |
| Other adjustments | 0.04 | 0.04 | 0.15 | 0.14 | |
| Adjusted results | $ 0.38 | $ 0.40 | $ 1.73 | $ 1.79 |
Use of Non-GAAP Financial Measures
To supplement our unaudited consolidated financial statements presented on a GAAP basis, we disclose certain non-GAAP financial measures, including adjusted net income (loss), adjusted net income (loss) available to common stockholders and adjusted net income (loss) per share (EPS) that exclude certain amounts; operational net sales, which exclude the impact of foreign currency fluctuations; and organic net sales, which exclude the impact of foreign currency fluctuations as well as the impact of certain acquisitions and divestitures with less than a full period of comparable net sales. These non-GAAP financial measures are not in accordance with generally accepted accounting principles in the United States and should not be considered in isolation from or as a replacement for the most directly comparable GAAP financial measures. Further, other companies may calculate these non-GAAP financial measures differently than we do, which may limit the usefulness of those measures for comparative purposes.
To calculate adjusted net income (loss), adjusted net income (loss) available to common stockholders and adjusted net income (loss) per share we exclude certain charges (credits) from GAAP net income (loss) and GAAP net income (loss) available to common stockholders. Amounts are presented after-tax at the company's effective tax rate, unless the amount is a significant unusual or infrequently occurring item in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) section 740-270-30, "General Methodology and Use of Estimated Annual Effective Tax Rate." Please refer to Part II, Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations in our most recent Annual Report filed on Form 10-K filed with the Securities and Exchange Commission or any Quarterly Report on Form 10-Q that we file thereafter for an explanation of each of these adjustments and the reasons for excluding each item.
The GAAP financial measures most directly comparable to adjusted net income (loss), adjusted net income (loss) available to common stockholders and adjusted net income (loss) per share are GAAP net income (loss), GAAP net income (loss) available to common stockholders and GAAP net income (loss) per common share - assuming dilution, respectively.
To calculate operational net sales growth rates, which exclude the impact of foreign currency fluctuations, we convert actual net sales from local currency to U.S. dollars using constant foreign currency exchange rates in the current and prior periods. To calculate organic net sales growth rates, we also remove the impact of acquisitions and divestitures with less than a full period of comparable net sales. The GAAP financial measure most directly comparable to operational net sales and organic net sales is net sales on a GAAP basis.
Reconciliations of each of these non-GAAP financial measures to the corresponding GAAP financial measure are included in the accompanying schedules.
SOURCE Boston Scientific Corporation