MARLBOROUGH, Mass., July 23, 2015 /PRNewswire/ -- Boston Scientific Corporation (NYSE: BSX) generated sales of $1.843 billion during the second quarter ended June 30, 2015, compared to the company’s guidance range for the quarter of $1.800 to $1.850 billion. This represents 6 percent operational revenue growth (constant currency basis, excluding divested businesses) and a decrease of 2 percent on a reported basis, all compared to the prior year period. The company achieved adjusted earnings per share of $0.22 for the period, compared to $0.21 a year ago, and GAAP earnings of $102 million, or approximately $0.08 per share, compared to $0.00 a year ago.*
“Our strong performance in the second quarter reflects the consistent execution of our global teams,” said Mike Mahoney, president and chief executive officer, Boston Scientific. “We are particularly pleased with the improved growth in MedSurg and continued strength in Cardiovascular. We look forward to continued momentum with several ongoing product launches and the planned closing of the American Medical Systems (AMS) urology portfolio acquisition in the third quarter of 2015.”
Second quarter financial results and recent developments*:
Achieved second quarter sales of $1.843 billion, representing 6 percent operational revenue growth and a decrease of 2 percent on a reported basis, all compared to the prior year period.
Delivered adjusted earnings per share of $0.22 compared to the company’s guidance range of $0.20 to $0.22, and GAAP income of $0.08 per share compared to the company’s guidance range of $0.09 to $0.11 per share.
Reported second quarter revenue growth of 10 percent in Cardiovascular, 7 percent in MedSurg, and remained flat in Rhythm Management, all on a constant currency basis over the prior year period.
Delivered strong operational revenue growth of 6 percent across all three major regions (U.S., Europe, and Asia, Middle East and Africa) and 12 percent operational revenue growth in the Emerging Markets.
Added to a growing body of evidence supporting the performance, safety and extremely low paravalvular aortic regurgitation (leakage) rates of the Lotus Valve System** with early results from the RESPOND Post-Market Study highlighted at EuroPCR 2015.
Began the U.S. commercial rollout of the WATCHMAN Left Atrial Appendage Closure Device.
Launched the Precision Novi Spinal Cord Stimulator (SCS) System*** in Europe. The Precision Novi System offers patients and physicians the smallest 16-contact high capacity primary cell device for the treatment of chronic pain.
Initiated the UNTOUCHED post-market study evaluating the EMBLEM Subcutaneous Implantable Defibrillator (S-ICD) for primary prevention of sudden cardiac death in the setting of severely reduced cardiac function. The EMBLEM System was launched in Europe in May and began a limited introduction in the U.S. in June.
Reported positive, long-term data at EuroPCR 2015 from the EVOLVE Trial of the SYNERGY Everolimus-Eluting Bioabsorbable Polymer Platinum Chromium Coronary Stent System** with no new major adverse cardiac events reported between years three and four.
- Completed a $1.85 billion senior notes offering with an average interest rate of 3.4%; a portion of the net proceeds is expected to fund part of the AMS male urology portfolio purchase price.
* Growth rates are based on actual, non-rounded amounts and may not recalculate precisely.
** Investigational device and not available for sale in the U.S. CE-marked device, available for sale in CE-mark countries.
*** Not available for sale in the U.S. Available for sale in CE-mark countries.
Worldwide sales for the second quarter:
Three Months Ended | |||||||||||||||
June 30, | % Change | ||||||||||||||
in millions | 2015 | 2014 | As Reported Basis | Less: Impact of Foreign Currency | Constant Currency Basis | ||||||||||
Interventional Cardiology | $ | 515 | $ | 528 | (3)% | $ | (52) | (10)% | 7% | ||||||
Peripheral Interventions | 228 | 211 | 8% | (18) | (8)% | 16% | |||||||||
Cardiovascular | 743 | 739 | 0% | (70) | (10)% | 10% | |||||||||
Cardiac Rhythm Management | 460 | 497 | (7)% | (32) | (6)% | (1)% | |||||||||
Electrophysiology | 57 | 56 | 2% | (4) | (7)% | 9% | |||||||||
Rhythm Management | 517 | 553 | (6)% | (36) | (6)% | 0% | |||||||||
Endoscopy | 326 | 333 | (2)% | (25) | (8)% | 6% | |||||||||
Urology and Women’s Health | 135 | 133 | 2% | (7) | (5)% | 7% | |||||||||
Neuromodulation | 122 | 114 | 7% | (3) | (2)% | 9% | |||||||||
MedSurg | 583 | 580 | 1% | (35) | (6)% | 7% | |||||||||
Subtotal Core Businesses | 1,843 | 1,872 | (2)% | (141) | (8)% | 6% | |||||||||
Divested Businesses | 1 | N/A | N/A | N/A | |||||||||||
Worldwide Net Sales | $ | 1,843 | $ | 1,873 | (2)% | $ | (141) | (8)% | 6% | ||||||
Growth rates are based on actual, non-rounded amounts and may not recalculate precisely. | |||||||||||||||
Sales growth rates that exclude the impact of sales from divested businesses and/or changes in foreign currency exchange rates are not prepared in accordance with U.S. GAAP. An explanation of the company’s use of these non-GAAP financial measures is included in the exhibits attached to this news release. | |||||||||||||||
On a consolidated GAAP basis, net income for the second quarter of 2015 was $102 million, or $0.08 per share. These results included intangible asset impairment charges, acquisition- and divestiture-related net charges, litigation-related net credits, restructuring-related net charges, debt extinguishment charges, and amortization expense, of $192 million (after-tax) or $0.14 per share. Adjusted net income for the second quarter of 2015, excluding these net charges, was $294 million, or $0.22 per share.
On a consolidated GAAP basis, net income for the second quarter of 2014 was $4 million, or $0.00 per share. These results included intangible asset impairment charges, acquisition- and divestiture-related net credits, litigation-, and restructuring-related net charges, discrete tax items, and amortization expense, of $281 million (after-tax) or $0.21 per share.
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